Wednesday, March 26, 2008

Mortgage Fraud Marches On

By Chris Thompson
Wed, Mar 26, 2008 at 12:47 PM

Okay, this story just keeps a'comin'. Federal prosecutors in Sacramento have announced yet another massive mortgage fraud scheme operating in Southern California. This time, the alleged scammers deployed a "foreclosure rescue scam," in which they suckered people into giving title of the house to a straw buyer, who borrowed against the increased equity and gave to the scammers for a fee. The con men allegedly pocketed the money and walked away. According to the Los Angeles Times, the culprits allegedly did this more than one hundred times and snagged roughly $12.6 million. That's a spicy meatball!

Up in the Bay Area, meanwhile, foreclosures have gotten so common that the East Bay's water utility is thinking about keeping water services operating for tenants who live in homes that are facing foreclosure. According to the San Francisco Chronicle, Oakland Councilmembers Larry Reid, Nancy Nadel, and Ignacio De la Fuente all approve the proposed policy.

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