Initial Court Appearance for the Alleged Mortgage Fraud Mastermind

October 20, 2010
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Bayside, New York – Jong Shin was the alleged mastermind of a mortgage fraud and money laundering scheme that involved residential properties in Atlantic City, New Jersey has his initial appearance in connection with a two-count indictment.

The Indictment charges that Shin conspired with others to get hold of more than a million dollars of mortgage loans for unqualified borrowers during June 2006 through December 2006 to purchase seven houses in Atlantic City at inflated prices. The Indictment further alleges that Jong Shin and other members of the conspiracy took out a portion of the proceeds from the fraudulently obtained mortgage funds paid at the real estate closings, which Shin used…

Signs of Strength in Home Prices

October 20, 2010
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Unexpectedly, a strong rebound in California’s real estate market aided to lift a key home price index for the eight month in a row.

That is precisely a good news for those who are planning to sell their homes this spring. The prices are now up for almost 4 percent from the bottom in May 2009; however, it is still almost 30 percent below the May 2006 peak.

The largest monthly gain was in Los Angeles, where the prices increased 1.8 percent from December. Real estate agent say there is a distinct sense that the worst of the downturn is over. According to Tony Middleton, a real estate agent with ZIP Realty…

$600M as Housing Aid to Five More U.S. States

September 27, 2010
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The Obama administration revealed that $600 million in financial support for five more states with high unemployment rate that have been thumped by the housing bust.

Ohio got the largest share of funding, at $172 million, followed by North Carolina at $159 million and South Carolina at $138 million. Oregon and Rhode Island are due to receive $88 million and $43 million respectively.

The money will be given to state housing finance agencies. The Treasury Department provided board criteria that should meet the designed mortgage assistance programs.

The assistant Treasury secretary, Herbert Allison, said “The purpose of this is to foster innovation in dealing with what is a highly localized problem around the…

Return of Foreign Buyers to the Big Apple Real Estate

September 1, 2010
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Signs are that a number of foreign buyers are migrating back into the New York real estate market, betting a decline in prices may be about to turn.

According to reports, the dollar’s recent rally, rather than putting off foreign buyers, is encouraging them to jump into the market before it rallies further and drives up prices. According to the DE Capital Mortgage specialist, Richard Martin, “People are thinking it might run away from them because there are these predictions the dollar will even go further.” “We are talking a lot about foreign borrowers lately.”

The luxury end may be starting to swirl in Manhattan, the 23-square-mile island that is the heart…

Mortgage Fraud Committed by a Home Builder

August 10, 2010
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Jacksonville, Florida – Marshall Craig Scott was found guilty of committing mail fraud, wire fraud, and conspiracy to commit mail fraud. Scott faces a maximum penalty of 145 years in federal prison. The sentencing hearing is scheduled for June 24, 2010. Scott was indicted on October 29, 2009.

Scott was one of four conspirators who schemed to defraud a variety of lending institutions in connection with residential home mortgages. Scott was one of three owners of American Home Builders, Inc. (AHB), who participated in a scheme to trick lending institutions into lending money to fund the purchases of new homes built by AHB.

Evidence established that the “extra money” extended by the…

A Lot Face Soaring Housing Costs

July 25, 2010
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A new study reveals that housing has become more affordable for nurses, teachers, police and other workers; however, it suggests homeownership remains out of their reach in many major markets.

The Center for Housing Policy stated that incomes for many of the workers that communities rely on for vital services have not kept pace with the cost of housing. That only means many cannot afford to buy a median-priced home in the cities they work in, even with mortgage interest rates at near historic lows and lower home prices.

The study also found out that workers in many markets cannot afford rent payments for a two-bedroom apartment. The findings are based on…

Nearly 17 Years of Imprisonment for a Fraudster

June 21, 2010
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Haiti – Mario G. Bernadel was sentenced to nearly 17 years in prison for his conviction on multiple counts for leading a mortgage fraud scheme in Phoenix, Arizona that cost banks over $9 million.

In September 2009, Bernadel was found guilty by a jury on 19 counts related to mortgage fraud that includes mail, wire, bank fraud, and transactional money laundering. Bernadel led a two-year conspiracy involving the purchase of 37 properties using fraudulent loan documents and receiving cash back at closing.

Seven co-conspirators were also charged and have pleaded guilty for their involvement in the conspiracy and many will be sentenced in the next few months.

The case in opposition to Bernadel…

Home Sales ‘Setback’ Could Hurt Overall Economic Recovery – Fannie Mae

June 8, 2010
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The largest provider of U.S. residential funding, Fannie Mae, cut its forecast for residential investment this quarter following a “setback” in home sales and cautioned on its impact on the economic recovery.

With reference to its monthly outlook, Fannie Mae also cut its forecast for 2010 mortgage originations for a second month. Residential investment is likely to drop 17.2 percent in the first quarter and rebound for the rest of 2010, Fannie Mae economists, led by Doug Duncan, said in their outlook.

For all of 2010, residential investment will grow 10 percent, slightly below the previous forecast, they said. Severe weather interrupted activity in the first two months of 2010, while the…

A Guilty Plea for a Real Estate Investor

May 31, 2010
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Royal Oak, Michigan – The 27 year-old, Paul Bashi, formerly of Washington Township, Michigan, pleaded guilty to federal information that charges him with conspiracy to commit wire fraud.

During the hearing and according to court documents, Bashi admitted that from September 2006 to March 2008 he recruited straw borrowers and assisted them in applying for loans to purchase residential property based on false information and fraudulent documentation with regard to employment, income and/or assets, among other things. Bashi, who was mostly doing business as JP Land Development Inc., was responsible for completing the loan applications and gathering the necessary supporting documentation. The mortgages that total to almost $6 million were issued…