Real Estate/Mortgage Fraud in Upland CA
Over the last decade, there have been a number of so-called industry professionals that have engaged in acts to unjustly enrich themselves. These acts include the divesting of an individual from title and vesting title into the name of another individual, who for the purposes of defrauding a lender, prevents them from collecting and/or foreclosing on properties that are severely delinquent on mortgage payments. It also includes breach of contract in a transaction in which an arms-length condition of the sale of real property was violated. In this situation, the lender agreed to a short payoff and the parties colluded and have separate or side agreements not allowed by a short payoff agreement, therefore violating any such conditions. With the prevalence of real estate and mortgage fraud, the role of real estate lawyers around Upland has become increasingly important.
Short sale fraud is an important topic in this area. This may include parties with the intent to strip home owners of their equity and/or inhibit the lender from receiving the highest and best offer on a property as to not sustain huge losses. A lot of unsuspecting homeowners find themselves prey to such acts as they are not savvy enough to understand the ramifications of losses lenders can sustain as a result of accepting a short payoff. These losses can translate into deficiency balances that the lenders may have recourse against. This recourse can result in deficiency judgments against one who has sold their home in a short sale. It can also result in a taxable event to the seller.
Another form of real estate fraud is a “bait and switch”. This is done by luring the homeowner into an agreement in which an individual will contract with a company that will, for a profit, arrange, negotiate, and or apply on behalf of a client for a home loan modification. Fees are usually charged up front in violation of California Senate Bill 94. After a certain period of time, the homeowner is made to feel hopeless and believes that there are no other options but to sell his or her home in a short sale. In this situation, the intent has always been to convince the homeowners to dispose of their homes. Some of these homes are sold to investors who purchase the properties at huge discounts and then resell them for large profits. These investors allow the agents to represent them. The agents never really disclose the true nature of the dual agency to the homeowner. These agents, sometimes known as bird-dogs, can stand to profit heftily by engaging in this activity because they earn the commission in full (this is known as double ending). Although this in and of itself is not illegal, the agent fails to declare his or her role in the transaction thereby violating the fiduciary responsibility to the homeowner. Our experienced real estate lawyer near Rancho Cucamonga and Ontario can help hold these duplicitous agents accountable for their actions.
These are just some typical examples of Real Estate and/or Mortgage Fraud. Please keep in mind that claims or torts against individuals and/or real estate professionals may have a shelf life known as a statute of limitations. Therefore, upon reasonably discovering any such claims or torts, you should take action immediately. Contact us today to speak with our real estate attorney near Upland.