Fraudclosure Auctions: Bogus Prices Hiding Profit and Creating False Home Values

Is there not one part of the fraudclosure process that does not involve fraud?

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Foreclosure auctions: Are bogus prices hiding profit?

Properties purchased through Orange County Clerk of Courts foreclosure sales at one price are appearing in the county Property Appraiser’s Office records at a higher price, often tens of thousands of dollars more, according to an Orlando Sentinel review of 16 recent purchases.

The discrepancy illustrates inherent flaws in a system that apparently allows investors buying up distressed properties to inflate the sale price of their real estate by paying a slightly higher state tax on the sale, commonly known as “documentary stamp tax.” The disparity in prices has gone unnoticed by the three county government bodies with a role in the sale and recording process — until now.

By having higher sale prices on record with the Orange County Property Appraiser’s Office, investors looking to later unload the properties could mask their profits when they sell the real estate to new buyers.

It’s not clear how widespread the bogus sale prices are, but the implications are vast in a county that saw nearly 18,000 foreclosure cases last year alone. The phony sales prices could be skewing appraisals being done in those neighborhoods and influencing bank lending practices as well, said Orange County Property Appraiser Bill Donegan.

“It has some implication in there that borders on the side of fraud,” said Donegan, who was unaware of the sale-price differences until the Sentinel told him about the increases Thursday. “I have phony sales on our website. Of course I’m concerned. Absolutely.

Check out the rest here…

If it is happening in Orange county, it is most likely happening in EVERY county.

Guess we have a new little project to work on…

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4closureFraud.org

Comments
47 Responses to “Fraudclosure Auctions: Bogus Prices Hiding Profit and Creating False Home Values”
  1. Steve says:

    My Option-Arm mortgage broker and lender pulled off the loan application fraud. And after ripping me off stealing my property in Non-judicial they resold it just right for the amount minus my large down payment. These crooks have the system bought and paid for as their minions follow.

  2. THE REAL MAGGIE says:

    HOW OLD IS JOHN MCCORMICK? IF I MAY ASK???

  3. My sister was reporting the actual numbers of protesters at the Wisconsin state capitol. They differed from the media accounts by 50 and 70 thousand. The press is controlled and has been for some time……….. Keep the internet open and free……………….
    Interesting to see a video of sparse numbers 4-5 thousand of protesters there on days when the actual numbers were beyond 80 and 100 thousand………….. The mean stream press waited until most of the protesters went home for the day and then started the cameras.

    • Fury says:

      i was very moved by the citizen blogging, michael moore’s blogging and the uploads to youtube about the uprising in wisconsin. the family farmer’s speech was awesome.

      we are the citizen reporters. all of us.
      they cannot hold us back.
      we are not beholding to any advertiser.

      michael redman. lisa esptein, matt weidner, karl denniger, tyler durden, yves smith among others
      are the ones i look to for the truth.

      MSM are the dinosaurs who filter everything based on the advertisers who pay their bills.

      Go Matt Taibbi at Rolling Stone! What a powerhouse writer whose stories help the defrauded homeowner.

      60 Minutes—do more stories! you are venerable but a bit dusty. your fraudclsoure story really helped
      put across what is happening. 4 years too late but better late than never.
      i really think that segment was a turning point.

  4. Fraud on top of Fraud on top of Fraud on top of Fraud…….

  5. head cheese maggie brie says:

    I used to hate michael moore i love him now i used to be a staunch republican im not now i used to be in love im not now i always defended myself well i always will!

  6. Fury says:

    the auctions are rigged. there is no way in the world that some guy off the street could have purchased our stolen multimillion dollar home for $500 like is what happened.

    there is fraud from beginning to end.
    stop frauclosure.

  7. Bryan L says:

    We all need to plan a day of protest, Banks and at the AG’S office. Then maybe Big Media will cover this story.

    • SINGLE MAGGIE:) says:

      you plan i watch!

    • Fury says:

      bryan,
      main stream media will never report what is really happening. the banks are their biggest advertisers
      (cars, and lousy internet service next).

      i do believe in protests.

      i never liked michael moore. i wholly support him, now. he is a hero.

      read his blog about what he saw in wisconsin that was never reported in the MSM.

      http://www.michaelmoore.com/words/mike-friends-blog/how-i-got-to-madison-wisconsin

      • l vent says:

        Yes the media is owned and controlled by WALL STREET A/K/A THE ILLUMINATI/NEW WORLD ORDER. THE RULING SHADOW GOVERNMENT.I BELIEVE MICHAEL MOORE IS AN HONEST AMERICAN WHO TRULY BELIEVES IN A CAPITALIST FREE MARKET SYSTEM. .HE KNOWS THE RULING ELITE IS OUT TO DESTROY THAT AND EVERYTHING GOOD ABOUT AMERICA. LIKE FREEDOM.

      • l vent says:

        This was a great speech by Michael Moore. Unfortunately, one giant rally in Wisconsin isn’t going to do the job. The mainstream media blocks all of the TRUTH out and that is intentional. Thom Hartmann on RT news who also has a radio show on the weekdays reported the TRUTH on his show that 400 elite are holding all of the nations wealth and they have hijacked the UNITED STATES OF AMERICA. PROVING THAT ABSOLUTE POWER, CORRUPTS ABSOLUTELY. He talks about how GE and BofA do not pay any tax and hide the wealth they make off the backs of hard working Americans in over 115 offshore tax havens. Wilth the exception of Elliot Spitzer on CNN, Dylan Ratigan and Ed Schultz on MSNBC, and 60 MINUTES on CBS, MUM IS THE WORD. Time for some more rallies like this. Since this rally things have not gotten much better. Gas and food prices are through the roof, so are utility bills and taxes. They are just getting sneakier about the ways they are making us all pay for their PONZI SCHEME HEIST. TIME TO AUDIT THE U.S. TREASURY AND FORT KNOXX. IT IS WAY PAST TIME TO THROW OUT GEITHNER AND BERNANKE AND THE FEDERAL RESERVE AND ALL OF THE CEO’s OF THE MULTINATIONAL POWER STRUCTURE MUST BE INDICTED, FOUND GUILTY, FINED AND JAILED FOR THEIR PARTICIPATION IN THE PONZI SCHEME HEIST OF OUR WEALTH AND JOBS.. THIS IS WHAT THE PEOPLE WANT, THIS IS OUR COUNTRY, NOT THEIRS. THEY ARE STANDING ON OUR THROATS. THE FACT OF THE MATTER IS, WHAT WE HAVE HERE IS TOO MUCH POWER IN THE HANDS OF A FEW HUNDRED DIABOLICAL ELITE FASCISTS WHO WANT TO OWN AN CONTROL THE ENTIRE PLANET. THEY ARE A COMPLETE FASCIST TYRANNY AND THEY HAVE CORRUPTED AND HIJACKED THE ENTIRE UNITED STATES GOVERNMENT.. TIME TO TAKE OUR COUNTRY BACK AMERICA.

  8. I don’t know from the article if this was a private person or a bank doing this and regardless that anyone has a right to keep financial information private as when the deed will state for $10 and other valuable consideration (whatever that means) as here in Indiana, then we never know from the records in the Office of recorder what the purchase price is and whatever profit the seller makes, except from the point of tax liability for capital games and such that would be involved, as perhaps a way to evade taxes, is an all together different concern, than what amount of margin is achieved in the sale – and besides no one knows what the market value really is when there is no clean and clear title and just because a property is purchased in distress sales, that is not reliable as a true market value.

    Alsop here in Indiana I am not aware that we have any such stamp tax as in florida so this would not be a nationwide scam if any scam is involved in this scenario.

    If our local communities adopt the proposed legislative agenda to take properties back we can in essence at the grassroots level quit claim all the properties that banksters stole in foreclosure as shown here at this URL.

    foreclosuredefensealliance.us

    and as otherwise discussed here and substantiated in prior posts of articles that far to few are taking any notice of as remedy by Power of We The People.

  9. pamelag says:

    just curious how many victims are single women?

  10. There’s at least two different articles about this on the Orlando Sentinel page. This one allows you to leave a comment;

    http://discussions.orlandosentinel.com/20/orlnews/os-foreclosure-inflated-price-follow-20110415/10

  11. talktotennessee says:

    I saw a story on local tv recently (Memphis) where a guy is going around quit claiming deeds to himself. I am trying to recall the story but it seemed he had found some loophole somewhere and at this point no one has been able to either stop or prosecute him for it. It is pretty daring but the registry system is so loose here that almost anything goes down anyway with little flap. People have been buying “subject to” here a long time, transferring the title somewhere down the road, after the fact. It looks like there is a lot of trust and/or ignorance in property transfer law. I thinkthe guy is renting out the properties. I can’t see how he could do what he’s doing but then I can’t see how most of the fraud was done so easily either. The point was made that he had not broken law, (its complicated they said) no law exists that stops what he is doing. I guess someone will have to sue him to get it stopped. When you t hink about it, with no chain of title required between the originator and those who supposedly are foreclosing or own a property, anyone could record ‘ownership’ assume title and who would be the wiser? Maybe we should all go “shopping.”
    Are we in chaos or what?

    • pamelag says:

      i would love more info on exactly how to do that? cloud the title??

      • It is far more powerful and quick and without expenses of adverse possession to do what is proposed as a draft legislative agenda that you can read about here –

        foreclosuredefensealliance.us or ask me to send you a copy per email request

        mlfwf@yahoo

        Adverse possession requires usually that you are also current on the property taxes for 10 years or whatever state law says for your state for adverse possession that you document your improvements in the use of the property over perhaps as much as 30 years to prevail and obtain a clear title if that is possible anymore.

        Michael-Lynn @ The “MIXED WAR” Room and The Trials of Life

    • indio007 says:

      It’s holding the property under adverse possession. You have to care and maintain the property for a certain period of time. The possession has to be open and notorious. Paying the property tax goes along way too.

  12. indio007 says:

    This is being done to game capital requirements of the banks.
    I guarantee this is directly related to the settlement.

    They are trying to minimize their tax liability.
    As well as shore up capital requirements.
    The banks have been allowed to market the value of the mortgages at the note’s value. When a foreclosed home is sold now we have the true market value. It appears the market isn’t coming back so they simply decided to persue a new fraud.

  13. Fury says:

    crimes must be punished.

  14. ENough already says:

    THe ostrich.s heads r in the sand to long havnt we lost enough

  15. l vent says:

    Anybody remember the song by _REO_ SPEEDWAGON called GOLDEN COUNTRY? Looks like REO wrote the new battle hymn of the republic decades ago.

  16. Mary says:

    Anyone buying a foreclosure should have their head examined..lol. Yeah…good luck with that. Go talk to the title company that is going to charge you big bucks for your insurance policy and ask them to show you the chain of title. Don’t let them make any ‘exceptions’ as to true ownership…you are paying for a clean title and they better give you one..but…guess what…they can’t.

  17. The same is true for Las Vegas, Clark County Nevada. I was unfortunate not to know this until a client pointed out the fact that a property recorded as a $244,000.00 sale was listed days later for $129,000.00. Every Fannie Mae or Freddie Mac property is subject to this manipulation since the transfer of properties in this manner are not taxed. May prices be further manipulated to show non-existent value by the fraudulent redecoration of inflated sales prices between investors.? Copy from an email received from a client;

    733 Listed sold for $ 244,036 on 01/28/11 but it is listed for sale at $ 129,500
    653 Listed sold at 241,741 on 12/15/10 but it is listed for sale at $ 105,000
    657 Listed sold at $ 262,138 on 11/09/10 but it listed for sale at $ 107,100. I don’t where did they get the sold price since the property was bought originally at $ 234,990 on 6/09/08.

    For the RE Agent who wants to Compare property for evaluation, this causes enormous problems. I have spoken to several Title companies( who do EVM’s), about the problem and have received no satisfactory answer.

    • Mary says:

      If I was a realtor I would be running, not walking away from bank owned RE. I would fear that my license would be on the line.

    • l vent says:

      Come on people! They stole your homes and they are still capitalizing on homes they do not own and never owned. They are still scamming and robbing you, for the love of God, where are you people? I am completely horrified that the Amercian people would give up this easy. This is precisely how they got the jews on the trains during the HOLOCAUST and sent them to to the concentration camps to be gassed.

    • fighting mad, mad as hell says:

      Does the fraud ever end?
      The same thing is happening in Michigan, selling at a higher price and then relisting at a lower price.
      There is much new fraud going on at the recording offices. Ever since they started recording back in 07′ things have gotten wonkier.
      Recording the sale of a property way back in 2002 but finally recorded in 2009 for example.
      Just seems like for every roadblock we throw in front of them, bankers find another way around it. But at least we close the old ones and make them work harder to steal!
      I really like the idea of just Quit Claiming a house, no requirements.
      It truly does matter what you are trying to do and where,
      in Wayne County MI all you need is:
      the paper work for a Satisfaction of Mortgage, a Quit Claim form, a Memo of Land Contract, a lease agreement, nothing to change the taxes over to your own name. It depends on your local recording office, ask around, check the rules and go for it.
      Hey it doesn’t bother the banks, why should it bother us to worry about the details?
      anybody notice that the home buyer shows are back on the air, makes it look good times are back and $500,000 houses are easy as pie to buy! There is no housing slump and all these shows are pre-2007!

  18. JamesM says:

    Believe that one of the clerks of court asked the AG for an opinion about this practice some time ago.

    The response was, in that it perverted the information and reliability of the public records, the clerk should not allow it.

    The person recording a document with the inflated value of tax stamps is probably committing a felony. (Recording a fraudulent document in the public records and/or recording a document in the public records with the intention to commit fraud.)

    • Mary says:

      This is opening a real can of worms…everyone is involved in fraud, from the lowly recording clerk at the courthouse to guy with the pitiful pile of worthless paper on the Wall that Humpty Dumpty fell off of..(he was an egg and couldn’t be put back together)

      • fighting mad, mad as hell says:

        the best way to fix all this mess is to do like the banks do, whatever you want to get done, do it!
        They lie, file false papers, but I’m not suggesting anyone to do that. But what you can do is file whatever papers you do have on your house, in particular your tax papers showing your name and what you paid on the receipt, all your cancelled checks, all the paperwork showing you paid your mortgage, and anything else you have showing the ORIGINAL LENDERS NAME AND THE PROMISSORY NOTE.

  19. diesel says:

    I wonder if the IRS will do something if notified ?
    Took them to take down Capone

    • l vent says:

      I think Capone was a rebel against the establishment and that started during prohibition. Now that is what we are all becoming. The circumstances are similar. They are trying to control the masses with lies. That is not a Democracy.

  20. Why not jump on the fraud-wagon? It’s accepted practice. Courts are fine with it. Banks get consent orders reminding them to try to follow the law next time. Attorneys General offer buy-out settlements. Prosecutors remain silent. Legislators mostly natter on about “moral hazard” without realizing how idiotic they appear.

    It’s simple human behavior. The lesson is FRAUD is the name of the game. SCAMMERS WIN! CRIME PAYS.

    There is no place for fair dealings because that can’t compete with malfeasance.

    If there’s weak regulation and absent enforcement, whadda think is going to happen.

    Bring in the clowns.

  21. l vent says:

    I don’t believe anything has gone unnoticed by any of these criminals. They are all getting their palms greased. Everything they are doing with FRAUDCLOSURES is a COMPLETELY IMMORAL, ILLEGAL, UNCONSTITUTIONAL FRAUDULENT SCHEME/SCAM.

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