Fraud in the system

Fraud and fraudulent Schemes in the economy spoil our system.

In these challenging economic times, fraud has achieved a disproportionately high

percentage in a number of categories in real estate deals.

Lenders report ; occupancy fraud, employment fraud, undisclosed debt — on the rise,

income fraud is still the most common type of mortgage fraud.

This costs the system and ultimately costs each and every consumer . We all lose !

CoreLogic’s latest mortgage fraud report is based on its analysis of 7 million loan files from

the first quarter of 2005 through the second quarter of 2010 .

According to Tim Grace SVP of the fraud solutions at CoreLogic …

Fraud risk associated with refinancing has grown approximately 30% over the past 7 quarters.

CoreLogic’s analysis found that ” investment companies are involved in a disproportionately

high percentage of suspicious re-sales of REO (bank owned real estate) and Short Sale Homes.

Southern California , Phoenix, Detroit and Atlanta were singled out as the hot spots for illegal

house flipping and flopping in which the property is overvalued or undervalued respectively,

to sell for an inflated profit.”

Tim Grace says the ” industry has made substantial progress in curbing fraud from the levels

it reached during the height of the market in 2007. ” He stressed, ” though that the only way lenders

can preempt today’s evolving fraud schemes is through collaborative tools and information.”

We in the real estate industry ,the financial service industry and the policing services must work together

communicate,collaborate to protect our real estate economy and ourselves from these frauds.

All of us pay for these frauds in the economy. Fraud is the real poison in the system.

It must be mitigated through Due Diligence and ultimately STOPPED !

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Envoy Capitol Realty Inc., brokerage Toronto / Canada
Buy/Sell/Lease/Manage/Develop/Syndicate — Investments

Norair Yeretsian, broker of record

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