REAL ESTATE
by Jim Coleman, REALTOR®
SCAM ARTISTS MAKE A BROAD SWEEP
In a recent meeting presented by the Utah Division of Real Estate to practitioners in the fields of Real Estate, Mortgage and Appraisal, licensees were counseled to great extent about their duties within the law and under the licensing provisions regarding protecting the public and providing honorable, competent professional service within the respective areas of specialization. A considerable portion of the meeting dealt with efforts by the Division and Licensees to make doing business better for "the good guys" and finding and punishing "the bad guys" involved in the various industries named above.
Much of the focus was to prevent fraud. It truly is unbelievable to me how many different ways crooks and people with evil or bad intentions can go about their work of defrauding others. The following is a list of many methods, tactics or devices used by the criminal element. As you look at this list, you will probably be as flabbergasted as I was as to the range of endeavors this bad element of our society resorts to in order to take advantage of others and cheat them out of their assets to the benefit of the criminal.
Here is the list of Types of Mortgage Fraud (items with the *-asterisk are the more recent items) :

• LLC Purchase Scheme
• Income Employment Disinformation
• *Affinity Fraud, Illegal Property Flipping
• Artificially Inflating Appraisal
• Straw Buyers
• *Straw Sellers, Occupant/Non-Occupant Schemes
• Identity Theft
• Identity Creation
• Purchase Refinance Scheme
• *Hard Money Purchase - Refinancing Scheme
• Stated Income Scheme
• *Rent a Bank Account
• *Rent a Credit Card
• Forged CPA Verification Forms
• Unrecorded and Fraudulent Records
• *Investment Clubs
• Notice of Interest Liens
• Foreclosure and Equity Skimming
• *Condo Conversions
• *Foreclosure Rescue Schemes
• Air Loans (loan on property that doesn't exist)
• Non-Existent Properties
• Reverse Mortgages
• New Construction Schemes
• *Builder Bailouts
• *Fraudulent Sale on MLS
• *Investment Group Purchase Schemes

Now that you have reviewed the list and tried to have some understanding of the type of activities that might be engaged and which would lead to fraudulent results, let me provide a caution of another area that may have some merit.
It is widely known that many home owners are in difficulties with their mortgages. There are various entities, groups and organizations who are trying to provide assistance to people in default. Many are sound and are working for the absolute benefit of the borrower. They may be government or professional related. They may be non-profit or functioning as a legitimate commercial business. The caution is to be careful with whom you are dealing. Ask questions. Check them out. Research their background and their legal status within state business regulation. Some of these types of entities come across to be "good guys wearing white hats" but their ultimate design is to find those persons that can be preyed upon in their weakness and through the offer to assist, do so in such a way that a huge gain accrues to the ones offering the service or assistance. Some of these entities position themselves as consultants or counselors to assist and help the home owner.
The bottom line to this conversation is to always check out the programs and the parties making gestures and offers of assistance. Get your own independent counsel and opinions relative to the proposals and effects extended. And as has been said so many times, "If it sounds too good to be true, it probably is."
St. George REALTOR® Jim Coleman is Associate Broker and Partner/Owner of ERA Brokers Consolidated. He Specializes in Residential, Investment and Commercial Real Estate, holding National Designations of Accredited Buyers Representative (ABR), Certified Residential Specialist (CRS), Resort and Second Home Property Specialist (RSPS) and Seniors Real Estate Specialist (SRES). You can contact him by e-mail at Jim@RealtorJimC.com. Call: (435) 674-0600; or write: Jim Coleman, 201 East St. George Boulevard, St. George, Utah 84770. This and other columns are available at www.RealtorJimC.com/articles.