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I think we will be seeing more and more of these scams as 3 Southern California suspects were charged with identity theft and making false mortgage loans to swindle homes that were in foreclosure. The thieves would pay off the mortgages under foreclosure using straw men or identities that had been stolen and then refinance the homes pocketing the extra money. The total amount of theft was in the 12 million dollar range.

The scam targeted homeowners who were in default on their mortgages. According to the indictment, the defendants found their victims in databases listing pending foreclosure sales. They cut a wide swath in Southern California, paying unsolicited visits to homeowners in cities such as Artesia, Carson, Downey, El Monte, Gardena, Lakewood, La Puente, Los Angeles, San Bernardino, Van Nuys, Wilmington, West Covina and Westminster.
The victims were approached by the defendants allegedly promising them the possibility of stopping their foreclosures with short-term loans and by refinancing mortgages with a co-signer who has good credit.
Instead of getting the refinancing, the defendants allegedly submitted loan applications to banks under the names of individuals supposedly buying the homes. The application information always contained false information about the buyers, the indictment said.  via the Press-Telegram

Related posts:

1. Arizona Housing Counselors Nailed In Real Estate Fraud Case
2. Southern California Seeing Rising Values As Sales Slow
3. Illinois Atty General Sues Broker Over False Claims
4. San Diego Real Estate Fraud Ring Convicted
5. Foreclosure Rate Climbs 14% - Florida and California Hardest Hit