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Tucson Mortgage Info,Tucson Homes For Sale, Tucson Fraud | Tucson Real Estate News

Tucson Mortgage Fraud-More Arrests Today

mortgage Fraud picture Tucson Mortgage Fraud More Arrests TodayToday’s News of more arrests for Tucson Mortgage Fraud is suddenly becoming a familiar story. There have been several Federal and State Prosecutions of Tucson based Real Estate, Mortgage Professionals, and others related to the industry over the last few years since the melt down started three years ago. Most have been heavily publicized cases drawing the public’s attention to the fact that the government is serious about punishing those that crossed the line when the markets were booming. To my memory, all but one of them were related to using straw buyers to receive cash back at closing. After the deals are closed, no payments are ever made on the property.

If  the intention from the beginning was just to take the money and never pay it back, that of course is a crime. If the intention was to buy properties, hold them in their portfolio, or resell them for a profit, then that is just Real Estate Speculation. When things took a turn for the worse, it was all over. Back in the hay days, it would be inconcievable to think that investors  buying loans were completely blind to the speculation that was going on. They were all about Volume. They didn’t care, as long as they could sell the loan to the Wall Street Monster with the voracious appetite.

Technically speaking, anyone who was active in the industry back in the day, could be charged with some sort of Fraud related crime. If you were the Appraiser, Escrow Officer, Realtor, or Mortgage Broker, on a deal gone bad (or maybe several deals), you were directly or indirectly complicit in the fraud. I am not saying everybody was involved in wrong doing, you may have been and not known it, or maybe turned a blind eye. The media has painted the people in our industry with a very broad brush. They have put the entire blame on the bottom level of the hierarchy.

The question is…. What sub-level of the hierarchy will be the base line for prosecutions? Are the Feds just going to prosecute the blatant scams that were perpetuated, or after they get all of them, are they going after every little violation? Is there such thing as a Stated Loan that didn’t have untruthful information in it? Occupancy? CPA Letters? The list is long.

It will be interesting to see how this all plays out. The quicker the economy recovers, the quicker this will all disappear. The bottom line is if you took all of the people that have and will be prosecuted in the entire US for these schemes, it won’t account for even .00001% of the total losses. Doesn’t make it right, but it does make you think where the vast majority of fraud came from.


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