This article appeared on AZCentral over the weekend. Very interesting. I know mortgage fraud is a problem in the industry but to hear of such scams in our local market is very disheartening. It seems like there are many out there trying to do this. This is another reason why you need to be working with real professionals and not just run of the mill people in for a quick scam!
Illegal deals can wreak havoc on Valley’s housing market: “An example of how it works: A homeowner lists their house for $300,000, but there are no offers. One day a buyer or real estate agent appears and offers $350,000, $50,000 above the asking price. The seller may keep the $300,000 asking price but has to give back the extra $50,000. Sometimes the seller is told the money is for renovations. In other cases, the seller is offered a share of the extra cash.”