Pennsylvania Real Estate Continuing Education Courses - PENNSYLVANIA School License: RU003266
PA 4.0 hours Good Guys/Bad Guys - Who's Who in Mortgage Fraud - Course Syllabus
4.0 Elective Hours
A common mortgage fraud scheme involves straw buyers. The unqualified straw borrowers assume the identity of other people for fraudulently obtaining mortgage loan proceeds. Many times, homeless people are used as straw buyers. A good straw buyer has such a market for his or her services that often a contract is assigned to a "down and out" buyer who gets paid a fee to impersonate a credit-worthy, fictitious buyer.
Honest closing attorneys are now being encouraged by lenders and title insurance companies to be on the lookout for buyers whose appearance or attire does not match with the properties they are buying. They are being asked to stop the closing until it can be confirmed that the buyers are who they say they are.
Should you the real estate professional be in this situation, you could take the closing attorney aside to see if he or she is satisfied that this person is legitimate. You do not want the sale to be set aside later because the straw buyer was incompetent at the closing. If you are not aware of the buyer, but if you suspect this person is a straw buyer, you may have a problem. There may be times when you need to ask other people to do an investigation before you close.
This course will aid the real estate licensee with a greater understanding of mortgage fraud scheme so they can avoid being an unwilling participant in fraud.