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  • Member You - Real Estate Property Scams Used by Assessors as Comparables Hurt Taxpayers

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    ate crook, or more likely, default on all the loans, keeping the $100,000 extra they borrowed above the true cost of the home. Multiply that fi
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    This fraud had been reported going on in Long Island, NY but watching the news, it pops up wherever those with larceny in their hearts walk. This is the scam. A buyer arranges to purchase a seller's home for the asking price of, let’s say, $650,000. The buyer then arranges for an appraisal that values the seller's home at $750,000, and then mortgages 100% of the artificially "selling" price. The seller gets his $650,000 and the buyer pockets the difference.

    Then the borrower will either flip the property again at another artificially inflated price to an associate crook, or more likely, default on all the loans, keeping the $100,000 extra they borrowed above the true cost of the home. Multiply that fig

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    his is the scam. A buyer arranges to purchase a seller's home for the asking price of, let’s say, $650,000. The buyer then arranges for an appraisal that values the seller's home at $750,000, and then mortgages 100% of the artificially "selling" price. The seller gets his $650,000 and the buyer pockets the difference.

    Then the borrower will either flip the property again at another artificially inflated price to an associate crook, or more likely, default on all the loans, keeping the $100,000 extra they borrowed above the true cost of the home. Multiply that fi

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    aisal that values the seller's home at $750,000, and then mortgages 100% of the artificially "selling" price. The seller gets his $650,000 and the buyer pockets the difference.

    Then the borrower will either flip the property again at another artificially inflated price to an associate crook, or more likely, default on all the loans, keeping the $100,000 extra they borrowed above the true cost of the home. Multiply that fi

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    he buyer pockets the difference.

    Then the borrower will either flip the property again at another artificially inflated price to an associate crook, or more likely, default on all the loans, keeping the $100,000 extra they borrowed above the true cost of the home. Multiply that fi

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    ate crook, or more likely, default on all the loans, keeping the $100,000 extra they borrowed above the true cost of the home. Multiply that figure by the many homes in an area where these bottom feeders work across the U.S. and you find a crime wave. Unfortunately, without precise investigation you’ll find the extent of the scam.

    While the above described scam is illegal, similar type legal deals are allowed. Take, for instance, the situation of a "sellers concession." The price might be increased by, let say, 6%, which the seller will give back to the buyer to cover closing expenses. This is not hidden and is done with full knowledge of the bank and the seller. The sales price must still fall withi

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