Straight up Mortgage Fraud?
Like many of you bubble watchers, this renter keeps an eye on recent and pending sales in his neighborhood. I live in Everett, and a house down the block (206 E. Beech Street, 98203) sold in November for $355k! I watched for a while for a new family to move in, but it never happened. Having lived through the flipper/mortgage fraud craziness in Southern California alarm bells went off in my head.
Even if Nov. '06 was the peak of the market, $355k for a 3/2 1960's era run-down house in Everett is crazy. Propertyshark shows that a Lis Pendens was filed in July. I wonder if the 'owner' made a single payment? There have been no signs of improvements/workers, so I suspect this was a case of cash back fraud with a shill buyer.
The interesting phenomenon is that one comp sale at $355k has skewed the whole neighborhood. There is a smaller 3/2 just down the street that has been listed at $315k for 130+ days with no price reductions. Another 1/1 house with 750 glorious sq feet (but it has a pitching green and fire pit in the backyard) is up for $259k. I can imagine the conversation between realtors and sellers: "I'm not dropping the price; that dumpy place down the street went for $355k." Think their tune will change when the cash back turned REO gets unloaded for $215k?
Has anyone else seen this kind of activity in their neighborhoods? Has Casey Serin moved North?
Even if Nov. '06 was the peak of the market, $355k for a 3/2 1960's era run-down house in Everett is crazy. Propertyshark shows that a Lis Pendens was filed in July. I wonder if the 'owner' made a single payment? There have been no signs of improvements/workers, so I suspect this was a case of cash back fraud with a shill buyer.
The interesting phenomenon is that one comp sale at $355k has skewed the whole neighborhood. There is a smaller 3/2 just down the street that has been listed at $315k for 130+ days with no price reductions. Another 1/1 house with 750 glorious sq feet (but it has a pitching green and fire pit in the backyard) is up for $259k. I can imagine the conversation between realtors and sellers: "I'm not dropping the price; that dumpy place down the street went for $355k." Think their tune will change when the cash back turned REO gets unloaded for $215k?
Has anyone else seen this kind of activity in their neighborhoods? Has Casey Serin moved North?
Comments
All seems legit, except that the borrower is screwed.
I just can't understand why the buyer would purchase, not move in or rehab, and then let the place fall into foreclosure.