Wednesday, January 30, 2013

Say "Thank you, Mr. President"

Could any part of the following be even close to true?

"Recently, our friend Michael (a local realtor) shared his experience with an "Obama supporter" he encountered while showing homes to a low income, working family in Pontiac, MI. We asked him to please write it down so we could share it.  WARNING!!. YOU BETTER BE SITTING DOWN WHILE READING THIS: Michael says:------

"As a Realtor for the past 28 years I thought I’d seen or heard it all… Until now. I was showing homes in Pontiac, MI. one afternoon recently and showed up at a home at the 4:00 pm time my appointment was scheduled for.

"After I woke up the homeowner, she let us in and then proceeded to tell my buyers and I that she has already entered into a contract to sell the home on a short-sale. (A short-sale is a sale where the banks accepts less money than is owed on the home). After some chit-chat, she proceeded to tell us that she and her sister (who also lived in the area) were buying each other’s homes via the short-sale process. I mentioned to her that I thought relatives could not be involved in those transactions. She smiled and said "We have two different last names so no one knows the difference".

"She went on to tell us that each of them owed over 100K on their homes and were in the process of buying each other’s homes for about 10-15K cash. To top it off, they were each receiving $3,000.00 in government provided relocation assistance at the closing.

"My buyers and I were amazed that she was outright admitting to fraud and yet, she continued. She began to tell us that the best part of her scheme was that because they currently were not working that they (both) are now receiving Section 8 Vouchers. I said I thought those were for renters and she said “That’s the best part; me and my sister are going to be renting each other’s homes so we don’t even have to move, and Obama is going to give us each $800.00 a month to pay the rent!” She then picked up a picture she had framed of Obama and did a little happy dance around her living room and while she kissed the picture she was singing "Thank you Obama.... thank you Obama."

"So here is the bottom line… Both of these scammers got at least $80,000.00 in debt forgiven, $3,000.00 in cash for relocation (when in fact they did not relocate) and to boot, you and I will now be paying (through our taxes) $1,600.00 in rent for each them each and every month.... perhaps forever!

"And I also would not be at all surprised if they are receiving food stamps and whatever other programs are available for anyone who is willing to lie to get assistance.

"These women went from working and paying about $900.00 each in mortgage payments to staying home and getting paid $800.00 each per month to live in the same home they had been living in and all they had to do was lie on a few papers. This craziness has to stop! I’m sure this kind of fraud is going on each and every day all across the country and no one wants to touch the subject of entitlements because they might OFFEND someone or lose a vote or two.

"By the way... she had an almost new SUV in the driveway, three flat-screen TV's and a very nice computer set up in her living room which was furnished entirely with nice leather furniture.



Nick C said...

Wow! Amazing! I believe EVERY WORD OF THIS. I bet they're black, too. "Those" people... you know.

What a waste of your credibility.

Clem Kadiddlehopper said...

This scheme will only work if they live in a non-recourse state or both banks "forgive" the balance.

Some title companies now require lawyers to sign statements under oath that the sale is not fraudulent.

Is this scam possible? Sure. But only if the outstanding debt is forgiven.

Gus said...

From an out-of-state reader:

"In Florida, at closing the closing company has everyone sign an "Arm's Length Affidavit". This is generally included in the short sale package submitted to the lender or required by the lender as part of the closing package. This one-page document is signed by the buyer and seller and the attorney and states that neither party is related to each other or part of any outside agreements. Now, this document has changed into a contract between the parties with an indemnification clause for misrepresentations or fraudulent information provided to anyone involved in the course of the negotiations. By signing all parties assume legal and financial obligations to the seller."

Of course, parties could lie. Would that then constitute fraud?

Oh brother...... said...

I couldn't agree more with Nick C.