RE Lawyer disbarred for sham deals

When the US real estate bubble burst it uncovered a problem:

Mortgage Fraud.

It turns out that some realtors, mortgage brokers and lawyers were pushing through real estate deals that weren’t entirely ethical.  Some groups would use straw buyers purchase property at a price far above what it was worth and then take out a loan for the excessive amount.

Some of that is still being uncovered, here’s a recent instance:

Yeboah admitted participating in the scheme by creating fake W-2 forms, pay stubs, and other records for straw buyers so that her fellow conspirators could collect millions of dollars in kickbacks from fraudulently-obtained mortgage loans. In entering her guilty plea, Yeboah admitted reviewing payment records that showed over $14.5 million in kickbacks were collected from the fraudulent purchase of $100 million in properties.

Now it looks like the problem has spread to Toronto:

Earlier this year, the Star reported a pattern of house flips and price jumps as much as 60 per cent in less than a day involving Hatcher. Most of the deals didn’t include deposits. Purchasers got money back. Mortgages exceeded the value of homes. The same buyers and private lenders popped up in many sales.

 

Sort by:   newest | oldest | most voted
A-sharp
Guest
A-sharp

When you see a decoration package for 10-30k, it can often be they same thing, just a smaller scale and not outright.

FlipFlop
Guest
FlipFlop

I would wonder if you could acheive the same thing with developers that are offering a free car with the purchase of a condo.

What if you asked for the cash value instead? The do it for lotteries.

About time they stared putting these twits in front of a judge. Lock em all up.

FlipFlop
Guest
FlipFlop

I would wonder if you could acheive the same thing with developers that are offering a free car with the purchase of a condo.

What if you asked for the cash value instead? They do it for lotteries.

About time they stared putting these twits in front of a judge. Lock em all up.

boogeybear
Guest
boogeybear

As long as those incentives are disclosed to the lender, I don’t think there is fraud. In my experience, the developer just increases the price of the home for the cost of the incentive. The incentive package appeals to those prospective purchasers that can be talked into believing they are getting something for free.

Anonymous
Guest
Anonymous

Aren’t the bubble-deniers Benjamin Tal and Tsur Sommerville Israelis? Maybe they will be called back to fight this made up war and leave us alone.

Ben Rabidoux
Guest
Ben Rabidoux

I posted this over on VREAA, but I know Jesse likes to keep tabs of these in another thread somewhere…

Another bottom call for the records:

“Vancouver, British Columbia’s housing sector may have hit its bottom with an improvement in home sales seen in October”
-Marc Pinsonneault, National Bank

http://blogs.wsj.com/canadarealtime/2012/11/21/toronto-house-prices-cool-in-october/

jesse
Member

@Ben Rabidoux: Bottom call threads are archived over at Vancouverpeak.com. Commenter patriot1 set it up
http://vancouverpeak.com/groups/general-chatter/forum/topic/bottom-call-thread/

Thanks, Ben.

Makaya
Member
Makaya

The Teranet numbers are out of those who haven’t seen them:

Prices were down from a year earlier in Vancouver (−1.0%) and Victoria (−1.7%).

http://www.housepriceindex.ca/Default.aspx

Makaya
Member
Makaya

@Makaya: Interestingly, prices in Van are up 0.1% MoM…
Not quite sure what to make out of this, but this is not reflective of what we’ve seen recently happening on the market.

market stats
Guest
market stats

maybe translink and the mayor should do a tour to see if they can figure it out

http://www.bloomberg.com/news/2012-11-20/germany-s-clean-energy-transforms-industrial-city-of-hamburg.html

jesse
Member

With the most recent Teranet data out I thought I’d share the MOI HPI correlation quarter-on-quarter graph that mohican started way back when. The red dots are the last 12 months up to October 2012.

High MOI is taking its toll on prices. This is no surprise. This graph exemplifies how weak 2012 is. (It is weak.)

http://twitpic.com/bf6mnk

jesse
Member
Also for more on “price predictions” here is a chart I use to look at YOY price changes. If anyone’s interested I can get more into the technicalities of this but the short(ish) synopsis is that I average MOI over 3 months and delay the Teranet data by 6 months to get the best correlation. Why do I need to delay? Two reasons, first when I average MOI this adds about a 1.5 month lag. Teranet data are based on closed sales so there is a further delay of likely 1-2 months. In actuality, there isn’t likely much of a lead of MOI to price changes. The points on this graph only include MOI numbers to April. What does this mean? Well the correlation is only, well, a correlation but if we do a linear fit to this graph and… Read more »
victoria
Member
victoria

I mentioned this on Garth’s site. Is anyone keeping a list of all the stupid asshole predictions and quotes rom RE pumpers ie. Cameron Muir and RE/MAX etc. ??

jesse
Member
Tyee:For Some Chinese Fleeing Debt or Prosecution, Canada Beckons Scams make news in China but BC officials say review of foreign investors program isn’t related. According to media reports from China numerous business owners fleeing creditors are heading abroad, many to Canada via immigrant investor programs, such as the one the British Columbia government announced last week it would review. One report quoted an agent claiming to have helped dozens of such applicants. The reports, in a variety of publications and dating back as far as one year, said dozens of wealthy business owners from China have been leaving the country to get away from creditors or even impending corruption charges. Such entrepreneurs even take out millions in loans from Chinese banks or loan sharks using shell companies before heading overseas and leaving bankruptcy notices in their wake, said one… Read more »
Anonymous
Guest
Anonymous

@market stats: Is this a joke or do you seriously think our great translink managers and mayors can do real improvements to this city? If you put them on a German tour, they will probably pick October so they can join the fest and then come back with some BS reports on their “experience”.

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

@jesse:

“YOY price changes to come in at -4% to -6% or so in the late winter.”

OH THE HUMANITY! ALL THOSE NASTY BEARS ARE GETTING CRUSHED! THE MARKET IS IN FULL CRASH MODE!

s
Guest
s

Poverty spreads along the skytrain line. I wonder if people still want to believe Rennie’s hype about transportation being the key factor in buying now, after reading this.

http://metronews.ca/news/vancouver/446150/vancouvers-middle-class-shrinks-poverty-spreads-along-skytrain/

crashcow
Member

This looks good:

“Vancouver Real Estate – What’s Next?”
http://realestate2013.ca/

Location: Westin Bayshore Hotel, Vancouver, BC
Date: Wednesday, November 28th, 2012
Time: 7pm

Drexler
Guest
Drexler

re “Vancouver Real Estate – What’s Next?”
I would be interested how much money you need to have to open portfolio with DAVID LEPOIDEVIN?

Patiently Waiting
Member
Patiently Waiting

@s: You can also see the failure of our dysfunctional immigration system. The newer map is seven years old. How much worse is it now?

Patiently Waiting
Member
Patiently Waiting

@jesse: “If agreements are not honoured applicants forfeit their deposit, but are allowed to keep their permanent resident status.”

That sucks. Well, hopefully this will be considered if they ever try to become citizens. Upside is only a little over one hundred people were allowed to abuse this particular program.

Some Guy
Guest
Some Guy

Right wing policies at a provincial/national level that favour inequality create poverty. Where that poverty shows up locally depends on local transit and housing policies.

Better for poor people to be able to afford accomodation with good transport links than to be forced into car-dependent suburbs/slums as happens in places like Toronto where transportation options are so limited and construction of mass transit lags so far behind demand that only wealthier people can afford live near a transit station.

Meanwhile, here’s another lovely delusional listing:

http://www.realtylink.org/prop_search/Detail.cfm?areatitle=&ARPK=&ComID=&agentid=&MLS=V980775&rowc=18&rowp=16&BCD=GV&imdp=15&RSPP=5&AIDL=315,314,316&SRTB=P_Price&ERTA=False&MNAGE=0&MXAGE=200&MNBT=0&MNBD=3&PTYTID=5&MNPRC=200000&MXPRC=900000&SCTP=RS

“Very livable house (3416 sq.ft) but Owner has requested to be sold ‘As where is’ and for only Development purposes or investment. Owner does not want to remove any garbage etc. that may be left behind or be bothered by multiple showings. Upon accepted offer the buyer may preview the premises.”

Yeah, I’ll get right on that.

manson
Guest
manson

My house is paid for in the time you assholes have been predicting a crash…bunch of sad fucks.

patriotz
Member

@Patiently Waiting:
“Well, hopefully this will be considered if they ever try to become citizens”

The government can only deny a citizenship application on grounds specified under law, and this isn’t one of them.

Mortgageslave
Guest
Mortgageslave

@manson

If you actually had your home paid for, you should be living good, have money banked and not worry about a housing downturn. This obviously isn’t the case, you are very worried and scared for your future. Your anger shows this quite obviously. More angry homeowners will soon follow in your footsteps.

wpDiscuz