Cinderella Story For Former Seattle Gal ----- Not!

edited November 2008 in The Economy
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Maid-Turned-Realtor Ran Vegas Mortgage Scam, Prosecutors Say
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Oct. 30 (Bloomberg) -- Eve Mazzarella was a Las Vegas success story. The high-school dropout and former housemaid moved to the Nevada city in 2000 from Seattle, got a certificate from the ABC Real Estate School and started selling houses in what would become the hottest market in the country.
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In 2006, Mazzarella recorded sales of $13.8 million and made the National Association of Realtors' ``30 Under 30'' list, which names the best young agents in the nation. Mazzarella started her own company, Distinctive Real Estate & Investments Inc., in December 2003. She whipped around town in a Mercedes-Benz sport utility vehicle. She planned to build a three-story office building in Vegas's shabby downtown north of the Strip and preserve a historic house on the site by lifting it onto the roof.
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Her competitors were impressed. ``She was an up and comer with a brilliant future,'' says Forrest Barbee, a broker at Prudential Americana Group, a Las Vegas agency where Mazzarella once worked.
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The dream ended at about 5 a.m. on March 13, when federal agents smashed through the door of a stucco home on a quiet, grassy cul-de-sac looking for Mazzarella, 31, and her husband, Steven Grimm, 45, an erstwhile mortgage broker......

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Comments

  • CalculatedRisk has an interesting chart

    http://calculatedrisk.blogspot.com/2008 ... wners.html

    48% of Nevada mortgages are underwater.
  • jon wrote:
    CalculatedRisk has an interesting chart

    http://calculatedrisk.blogspot.com/2008 ... wners.html

    48% of Nevada mortgages are underwater.

    Wow! WOW! So...back of the envelope math here, that probably means something like 60% of Las Vegas mortgages are underwater and not too many in the rest of the state. Over half the city could (should) just vacate their homes.

    Actually, even here in Washington the numbers look a little dire. It says 10% have no or negative equity. It's one of the lowest rates in the nation, but still that means one out of every ten houses has an elevated risk of foreclosure. Even if the owner can afford the payments, they have reason to reconsider it...and we're still not down in prices all that much yet.

    I have noticed a lot of the overpriced homes on Redfin seem to be because the owner has no equity cushion. You can usually tell these homes because they are the ones that have been on the market 100 days, are at least 10% above comparables (near market peak prices), and have not dropped the price (or have dropped it less than 1%).
  • The whole story is about simple minded people looking for get rich quick schemes.
  • Ubersalad wrote:
    The whole story is about simple minded people looking for get rich quick schemes.

    Add a dash of "lack of ethics" and I would agree the story could be accurately thusly summarized.
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  • Ubersalad wrote:
    The whole story is about simple minded people looking for get rich quick schemes.

    What, you mean like buying a house, polishing it a bit, and selling it for a 10% markup 3 months later? ;)
  • "The day before, the U.S. Attorney for Nevada had indicted the couple on 6 counts of bank fraud, later revised to 13. Prosecutors say the pair recruited fake -- or ``straw'' -- buyers to apply for loans to purchase 227 properties worth $107 million. They told the straw buyers they would pay the mortgages. Then they skimmed thousands of dollars from each of more than 432 transactions, the indictment says, stashing the cash in 80 bank accounts."

    At every level in the RE chain (from field appraisers to Wallstreet suits packaging up bad loans and selling them with an "AAA" rating) is a picture of unprecedented corruption, greed, and fraud at all levels. Any questions why this time is "different"?

    Retire by 30 without doing any real work...."as seen on TV!" :twisted:
  • TJ_98370 wrote:
    Ubersalad wrote:
    The whole story is about simple minded people looking for get rich quick schemes.

    Add a dash of "lack of ethics" and I would agree the story could be accurately thusly summarized.
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    I thought the two went hand in hand.
  • I discussed this story over at Rain City Guide in my post. Interesting comments on the ethical problems associated within the industry.
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