In researching yesterdays mess, I stumbled across another home that was sold by the same buyer as the home on 3146 Hibiscus street (that we didn't mention in last weeks post), not to mention it was closed by the same title company as well. Before we move on to that home though, lets consider for a moment what could have caused the mess that we have in the real estate market today, could there be one cause or one event in the past that we can label as the tipping point? I suggest there is, one man whose charm and late night infomercials could be the cause of all our problems, his name is Tom Vu...
Does everyone remember Tom? He taught his students how to make money with Real Estate with little or no money down, no credit and no experience whatsoever, sound familiar? It sounds a whole hell of a lot like what we've been talking about here over the last few days doesn't it? Lets be realistic, who could resist his sales pitch, after seeing the yachts, the babes, the cars, who wouldn't want to get rich through real estate?!
Ok, lets move on. In researching the home at the center of our post yesterday, I stumbled upon another deal that the same seller and the same title company were involved in, lets take a look at the case of 107 Frow Avenue. Lets start with looking at the Warranty Deed from Seller "A" (yes the same seller from yesterdays post) to Party "B" (again the same party "B" from yesterday):
Based on the documentary stamps (60 cents/100 dollars) the sales price of this home on July 18, 2008 was $218,000. Now lets look at the next warranty deed that was issued by the same title company from Party "B" to Buyer "C" the VERY SAME DAY:
Based on the documentary stamps on this sale we can conclude that the home sold for $470,000 THE VERY SAME DAY! Once again we see a $252,000 profit in a MATTER OF HOURS! Not bad! This case is particularly interesting since it seems that the company that we called Party "B" was created for the sole purpose of purchasing these two properties and flipping them the same day. Whats even more suspicious is that the company we called Party "B" has a name that is virtually identical to the name of the seller we called Seller "A". Why is that important? When the bank that's financing this mess does a review of the title work since the names are nearly identical they're more than likely to overlook the fact that the company that was selling the property didn't even appear on title yet since the names are virtually indistinguishable! NICE!
So where are the arrests Mortgage Fraud Task Force? Where are the prosecutions? We've laid out two cases of undeniable wrong doing from the same seller with the same title company acting as an intermediary. We called the title company in question and guess what? They're still in business! WHATS UP GUYS?! Two closings within days of each other, same seller, same title company and a $537,000 profit AND NO ONE CARES?
Getting back to our old buddy Tom, if you didn't succumb to the lure of easy money in Real Estate, you know what he thinks...
Tomorrow, MORE MESS IN THE GROVE PARADISE!