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Sarah Palin's New $1.75 Million House Purchase Exposes Another Facet Of The Neverending Housing Scam - Short Sale Fraud
This post has two parts: the first one, or the blue pill part, deals with the mundane, namely Sarah Palin's brand new $1.75 million, 8,000 square foot house in North Scottsdale, which "sits on 4.4 acres and has a home theater, a billiard room, a walk-in wine room and a "resort style backyard" with a gazebo and pool, according to the listing and listing photographs. The brown, stucco-and-stone house, which was renovated this year, has several fireplaces, a six-car garage and mountain views. The property has a circular driveway and desert landscaping." The second part, which is where one takes the red pill, deals with something far more serious: short sale fraud - yet another facet of the ongoing discovery of just how deep mortgage fraud in this country (in this case by real estate "investors") runs. Only this time it is fraud which results in impairments to the banks (arguably). Yet even then, questions remain...
First, a little more on the mundane from the WSJ:
The neighborhood is "as rural as Scottsdale gets," says broker Bob Hassett of Russ Lyon Sotheby's International Realty, who was not involved in the deal but said he was approached in 2007 by a previous owner about listing the home, which he described a "Southwest in feel." Within a square mile of the home, he said, houses are priced between $500,000 and $5 million. Real-estate agent Jeff Sibbach of John Hall & Associates described the area as "low-profile; most of the stuff in there is horse property."
Rumors have swirled for months that Ms. Palin, whom some GOP factions are urging to run for president, has been looking to be based out of Arizona. On Saturday, the Arizona Republic reported that Ms. Palin had possibly purchased the home. She purchased through a limited-liability company that bought the property from Ian Whitmore, who Wednesday identified himself as a real-estate investor. "It was always my intention to sell the home," he said, and declined to elaborate on the work he'd done on the home. Mr. Whitmore bought the property from J,P. Morgan Chase Bank last year for about $800,000, according to tax records.
The property in question is located at 29005 N 82nd Street St.,Scottsdale AZ, per the affidavit of the short sale from JP Morgan to Ian Whitmore (link). Below is a video of the actual property.
A little more on Mr. Whitmore:
Ian Whitmore
Agent
15255 N 40th St #115
Phoenix, AZ 85032
(602) 569-2233 Office
Platinum First Realty
Why is this important? Because as the second part of this posts indicates, one of the heretofore unreported aspects of mortgage fraud, which incidentally has nothing to do with the beginning of the foreclosure process, but everything to do with the end, or the REO/Short Sale transaction part, will cost banks up to $375 million in 2011. Housing wire reports:
Short sales increased rapidly over the last several quarters, but wherever there are home sales, there are home sales fraud.
Sales of properties on the verge of foreclosure tripled over the last two years and will increase another 25% this year, according to analysis from CoreLogic.
Analysts found one in every 52 short sales conducted in the first half of 2010 were "suspicious," meaning the lender may have incurred unnecessary losses from fraud. Over the first six months of last year, banks showed $150 million in losses from these suspicious transactions. By the end of 2011, banks could face $375 million in losses from short sale fraud, according to CoreLogic.
Short sales pose a suspicious risk in a variety of ways. One example occurs when the buyer flips the property for a 10% profit less than one month after the bank unloads it.
Analysts also found any property flipped less than three months after the transaction for at least a 20% profit as suspicious. Even at six months after the transaction, a short sale can be suspicious if the buyer flips the property for 40% more than the short sale price.
Analysts said not all of these transactions were fraudulent. Buyers, often investors, can quickly rehabilitate the property, which poses no significant risk to the bank. However, as CoreLogic analysts looked through hundreds of thousands of short sales, some were resold on the very same day.
In these deals, the investor has two separate contracts. One is the purchase contract with the lender. The other is a separate agreement the investor has with a third-party buyer. The two transactions are choreographed and presented to the title company on the same day with the short first executed, followed by the flip to the third-party buyer.
The conclusion:
Overall, roughly 65% of the resales after the originally short sale transaction were deemed "suspicious" and caused direct and unnecessary losses to the bank.
Let's recall the math on Ms. Palin's purchase: Whitmore buys the short sale from JPMorgan in March 2010 for $805,000. He then flips it just about one year later to Ms. Palin for... $1,750,000. A profit of 118%. Surely, this transaction should set off dozens of "suspicious" red flags at JP Morgan.
Ironically, Palin, who in this case is completely innocent of any wrongdoing, may have tripped the alarm switch on a trick that is being used by mortgage "investors" across the country (with who knows what sources of capital - arguably money from the likes of... JPM?), which are buying up wholesale REOs only to flip them to end buyers at up to 100% profits shortly thereafter.
Then again, it would not surprise us if it was none other than JP Morgan who provided the financing to "real estate investor" Platinum First Realty to purchase the property in the first place and to keep it off the market with a substantially above market price. At this point, it is clear that if any aspect of the housing market can be manipulated, it will be.
h/t Manal Mehta
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ZH has a new hufpo business strategy
Ah, my eyes are opened now that they are open. TYVM
+1. This article is pathetic.
"... Whitmore buys the short sale from JPMorgan in March 2010 for $805,000."
"Wow this "will cost banks up to $375 million in 2011." that sounds like it will really hurt the banks. I am actually getting a little misty right now."
Was this house put into a bundle and sold to a pension fund? If so the bank did not lose any money.
Was the title "clouded"?
What was the mortgage that Sarah put on it?
Is her mortgage being packaged?
Will the title be "clouded" again?
Why would she be so dumb to pay her mortgage?
Maybe she has read all the advise from ZH and will stay rent free.
jal
CoreLogic presents it as a loss to banks, but the reality is that the banks sell WAY below market when they themselves foreclose and resell. CoreLogic's own data shiws it. THEY DON'T CARE. They are not victims. They are playing with house money!
The point of this whole post is that while banks' own mortgage transgressions have been well documented, and nobody is defending them, fraud may well have seeped into subsequent layers of the mortgage resell process. The question in the post stands: who did the "real estate investor" get the funding to perform this and other transactions? If it was JPM or an affiliate there is obviously a conflict of interest.
Yep, we get it. Palin didn't get a steal, and she's not a squatter, she only helped the comps in the neighborhood.
The flipper did pretty well though. I hope the anti-Palin crowd accidently draws attention to any and all bank fraud when they dive into her dumpster and sort through their new treasure trove of celebrity trash. Maybe TMZ will find a Palin eviction notice complete with robo-title from JPM highlighting the problem(s). This could turn out to be Letterman top ten material.
Sorry Tyler, that might have been the intended point of the post, but the point that is focused on by the readers is "Sarah Palin".
Substitute "Nancy Pelosi" and watch the comments change.
Tylers,
You are way off the mark with this one.
Self made, self-funded, genuine buyer of distressed real estate assets just selling some stock. You have latched onto it only due to the high profile buyer.
This seller is completely legitimate.
Well I think people will latch onto this story for a whole range of reasons in the near future. Like how did she know to move.
Zzzzzzzzzinger!!!!!!
ORI
Most of the flippers these days are small but organized investment groups run by real estate consultants and they pay in cash. Many of them are borderline scams and poorly run. But some can do well also. I wouldn't put fraud past any of them as they are probably the NINJA fraud brokers of yesteryear but they are small potatoes. When it comes to actual mortgage loans, they are all FanFred these days, it's just a pass through for the big banks. The big banks have already demonstrated that they don't mind dumping properties and destroying local housing markets in the process, and I find it hard to believe JPM or another large bank would go through the paperwork nightmare of single house flipping at this point when they can borrow unlimited sums from the Fed and pump whatevertheywant. The "same day transfer" phenomenon sounds more like a pre-arranged facet of group investment holdings, that is organized as part of the original transaction. Otherwise there is no way the two transactions could be recorded within days of each other. 6 months out? Hell it takes that long to get a short sale approved to begin with.
Fraud MAY have seeped into the process?? Are you like 10 years old or something?? There's always been fraud at some level in the entire process. There was fraud going on before the real estate bubble. Talk about old news. And who cares where the investor got the funds from??
Your conflict of interest point is just as off mark as the article. I have an ongoing relationship with a bank, they have a foreclosure I'd like to have and suddenly it's a conflict?? Maybe the bank cut their losses a little by passing it off on a client. Who knows?? But suddenly it's a conflict. C'mon, you can do better.
They make 4 X the mtg amount from the CDS payoffs. That's why they want to foreclose and then don't care.
On an unrelated topic...ahem..Obama's purchase of a house from Tony Rezko was not a short sale, but sure smells like a "short arm" sale.
But this is America so we don't always get the politicians we want, we get the politicians we deserve. Thanks Mick Jaggar.
And did you hear that the Property Identification Number changed six times in five years on that property? Any of you real estate people find that a little odd? Isn't it odd that it is eventually owned by a circuit court judge and Obama's tax accountant?
http://obamareleaseyourrecords.blogspot.com/2011/05/plot-thickens-debt-collector-obamas.html
Palin is the Power.
Unfortunately, Scottsdale has fluroidated water.
No one drinks city water. Ever tried drinking AZ tap water? You'd understand why.
We all use bottled water or 25 cent gallon shit from outside your grocery store.
"tripped the alarm switch"
Ha ha. Nice word play.
Good to see Sarah staying in touch with the common folk. Wink.
What a load of horse sh!t!
My group pays cash for foreclosures on the open market. So far most of them have been baking on the MLS for weeks or months with no buyers. I fix them up, make them as good as new, and then sell them with seller financing deals... Typically 10% down, 8% rate, 30 yr amort, 3-5 year balloon, and I cover the closing costs... I also pay for credit counseling / repair too!
WTF is wrong with that?
Most RE Investors do things that regular buyers aren't skilled in doing.. Buying turds and making them homes again..
Who gives a sh!t is Palin is stupid enough to over pay for a house.
Smoakin no brainer deal- $1.75MM. Thats a great location too. Just to add perspective. The prince of ?? had 42 rooms last week at the Four Seasons 10 minutes away-no lie you guessed right. A $100MM is under construction close too. You can find deals out there b/c it way out north Scottdale. Some great real estate opportunities in AZ, for sure. Its not just real estate folks. Pretty hard to beat AZ in a number of quality of life measurements. Doesnt surprize me she choose AZ.
How about we not let folks walk away from their RE debt and impoverish them until they pay it off. May put a damper on prices, huh.
Clean toilets, sweep streets, until that 500k you owe the bank is paid. Next time, rent you moron.
If I see here at the grocery story I'm going to puke (hopefully in her direction)!
This is some fishy crap here though
http://156.42.40.50/UnOfficialDocs/pdf/20070120733.pdf
http://156.42.40.50/UnOfficialDocs/pdf/20040562026.pdf
A little back and forth action?
Anyhow...
, you can't search the recorder's site by address so I can't resolve how JPM acquired the property.
edit: Found out JPM got it from MERS.
http://156.42.40.50/UnOfficialDocs/pdf/20080934025.pdf
It seems the seller got a special warranty deed (warranty to defend title) from JPM for $10
http://156.42.40.50/UnOfficialDocs/pdf/20100248717.pdf
He also cut his wife out of the transaction
http://156.42.40.50/UnOfficialDocs/pdf/20100248718.pdf
I'm just happy that if Mrs. Palin finds any uranium on the property she can't keep it.
"I'm just happy that if Mrs. Palin finds any uranium on the property she can't keep it."
If you love israel you put uranium in it's hole.
Can somebody explain why this is "suspicious?"
You've got guys out there busting their asses looking for interested buyers, and/or rehabilitating the properties. They're good at figuring out the immediate market value, an art and skill.
How, again, is this suspicious?
Are these investors in the middle somehow cloaking the properties from buyers, manipulating the MLS, or something? Some huge conspiracy, or hacking into the Realtor mainframe?
No. Not suspicious.
The lumbering banks aren't so good at making the sale, they can't get the best price, they're not motivated evidently. They don't do the legwork to arrange conventional financing for buyers like these house flippers, the banks are all "show me the cash."
These accusations are just dumb. Banks are no good at selling foreclosed properties. That's not fraud, that's just being teh sux0r in the real estate business and losing money as a result. To hell with them.
"Banks are no good at selling foreclosed properties."
Really? - well they've had enough practice at it. Maybe you're just a stooge for the banks. I think the point here is who is paying for this flip?
I would suggest JPM shareholders eventually - oh and isn't there a 'tax wheeze' involved in selling a distressed property at a bargain price against an outstanding loan value?
If you sell for more than the loan is worth (distressed or not) doesn't the IRS want a slice? Whereas selling for the loan value (or below) produces a tax break - marking up as a loss against revenue?)
I don't know enough about foreclosure law to know if this is right, but one thing I do know, if there is a scam.....JPM will be one of the first to exploit it.
Let us not forget Robosigning - brothers of the faith.
I think the problem is that banks aren't just no good at selling foreclosed properties, they have no vested interest in getting a good price (unless they actually hold good mortgages in the same neighborhood as the mortgage that is being sold short.)
I think the holders of the MBS get screwed (but then dumb money is always getting screwed, isn't it?)
If there is collusion between banks and REs to ferret out the best properties at the expense of the MBS holders then there should be a problem, don't you think?
Prediction: Senator McCain retires, welcome aboard Senator Palin.
Golf clap.
AH-HAHAHA!!!
TOAST!
Linda Green on the release of mortgage....
http://156.42.40.50/UnOfficialDocs/pdf/20070807778.pdf
Special news report about Linda Green
http://www.youtube.com/watch?v=8CqAiGyjIZU
BTW here's her actual signature
https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=0B1wty...
How is the USD/HUF?
A good friend of mine tried to buy this property from JPM the same time the successful buyer did, for about the same price, the difference is this buyer made an all cash offer and my friend had to get financing, but he said the property did need about $200k in work to make it saleable, so the seller paid $805k + ~$200k - $1mm, still a nice gain.
I put in a few offers on that property. The last offer was $825,000 subject to obtaining a mortgage. Chase decided to take the offer for approx $805,000 cash. The property did not have a certificate of occupancy, did not have any of the major appliances had water marks on the walls, rodent infestation, and carpeting that needed to be replaced. It had an empty elevator shaft that probably could be made into closets. The walkout are from the roof needed to be finished. the entry way door needed glass to be replaced. The outer gated to enter the property needed to be repaired or replaced. At a minimum, the property needed $100,000 to $200,000 to be repaired. Here's a complete list of what was needed to repair the property.
All estimates include material & labor
Doors Replace two exterior doors $3,500.00
Replace Broken Entry glass $1,000.00
Repair existing exterior doors $4,000.00
Roof Repair existing leaks $1,200.00
Repair holes in foam roof $ 600.00
Finish coat on walk decks $4,500.00
Kitchen Range $7,000.00
Hood $1,500.00
Dishwasher $1,400.00
Refrigerator $5,500.00
Microwave $ 700.00
Cabinet repair $1,000.00
plumbing/in two faucets $1,500.00
disposal $ 300.00
R/O $ 600.00
Soft water $3,500.00
Flooring Carpet repair (no replacement) $2,000.00. I'm sure thta the carpeting was replaced
Clean stone flooring $3,500.00
Plumbing Master bathroom inc.
fixtures $6,000.00
misc plumbing $4,000.00
Painting Int. paint $12,000.00
Ext. paint $15,000.00
Misc Electrical $ 6,000.00
Misc. Unknown $ 6,000.00
It was not a short sale. It was a foreclosed property that was owned by Chase. The starting price for the property was $100,000's of thousands higher. They dropped the price on a regular basis. Problem with the property that I learned was that no lender would lend without a certificate of occupancy. If Chase was smart, they would have made the repairs themselves and then sold the property. It's been over a year, but as I recall, I initially offered $925,000 subject to them making the repairs and obtaining the certificate of occupancy.
Add landscaping and the pool and the seller still did well. The deal was legit.
The assessors number for the property is 216-70-004-K. Go to www.maricopa.gov/assessor.
Hey, your my good friend that I referred too. I have a toolbelt a 12 pack and 2 illegals, I would have done the work. Did u watch the video, was this how it looked when you saw it? The guy with the camera said very early in the tape that there was NO pool, I know u said there wasn't, do u know if the new buyer added it or the seller?
It's called "Flopping", lowball a bank REO to re-sell at a profit. The fraud occurs when the bank orders an appraisal to check the offer and the appraiser lowballs the value to facilitate the deal.
I really like Palin. She is rock solid.
Best post of the thread.
Yeah her head is.
Try this address / link:
http://www.zillow.com/homedetails/29005-N-82nd-St-Scottsdale-AZ-85266/8037192_zpid/#{scid=hdp-site-map-bubble-address}
1. It's shocking so many would be so quick to defend Palin.
2. I'm sure the banks will make more money if they can get a loan locked on a larger amount then before-- years and years of interest far outweigh the short term pop the 'investor' may or may not make as the third party.
3. The valuations banks use aren't the most accurate and point to the greater scam that bigger is better for banking and lending.
4. This is what happens when you create an economy of fraud.
5. I'm always down to take the red pill.
Re 1. never underestimate the trolling that goes on. Those who are most fearful of being exposed for the frauds they are usually have the most ardent followers.
Defend Palin from what? She bought a house. All the so called suspicious activity occured before that.
As a long time real estate investor I don't see anything suspicious about the deal at all. Someone bought wholesale, spent money on fix up, then sold retail. That is how business is supposed to work. You need more than that to prove fraud.
By the way, I bet all the people who think this deal is somehow phony or impossible, are the same ones who warn us all to stay away from real estate investing because there is no money in it. Those who know the RE business know it is routine.
North Scottsdale.
Kind of like "North Corona", although they had the good sense to call it simply Norco.
Did you know that in Spanish "Laguna Niguel" means "Laguna, not quite"?
Interesting So Cal real estate trivia ! I couldn't find "Niguel" in my Spanish dictionary ? Is it a contraction of "Ni Aquel" (not even that [one]) ? I'm an ex-"Bradbury Brat" ! One of my ex-wives lives in RC - Rancho Cucamonga ! Monedas has trivia too ! 2011 http://trololololololololololo.com/
Yeah, big deal. Prices undershoot when a wave of sales is coming down one channel. And the smart person can pick the real bargains from pile. That banks are the dumb money in this plot is just too bad (or the buyers even, who probably could go to the foreclosure themselves).
Otoh, it was said that the house was recently renovated, that may have cost a bit ...
I was a real estate developer/investor. Keep in mind... one does not know what the value is going to be 14 months later when a sale "may" take place. There are carry costs, maintenance and guess what???? MARKET CONDITIONS beyond ones control. And what if QE2 would not have inflated stock/commodity markets. This investor would be renting this place out for $3,000 to $4,000 a month which would of worked but in 2010, guess what, not a whole lot of people able to fork over $800,000 on a 2nd home which is a high percentage of homes in Scottsdale. Yeah try to get financing on that last year. How many do you think would have qualified. That is what capitalism should be. Lucky "preparation meeting opportunity"
I did a search with an approximate 10 mile radius of homes for sale in north scottsdale between $900,000 and $2,000,000. There were over 800 active listtings.
And keep in mind 2010 is not 2011. The markets are up and, of course, the top 1% have a shitload more money to spend.
One last thing. Unlike the fucking banks....You don't get bailed out!
Because 5000 sq ft is just too cramped for a family of four.
Being a bit slow and also foreign, I don't understand the short sale concept on property in US. Can someone explain in a few words? Who short sells? How can you sell a house before you ve transferred titles to yourself? How is the scam working? I just don't get it.
I imagine it goes like that: Is this correct?
Bank owns the foreclosed asset. Bank realises many cents to the dollar losses if it tries to flog it on to the market mainly because banks are useless in holding and managing any kind of real assets - actually banks are pretty useless in most things.
So priveteer (property "investor" ratmonkey) comes in, finds a buyer for the foreclosed property at 102 cents to the dollar and instead of broking the house from the owning bank to the end purchaser, he BUYS the asset at 70 cents from the useless bank and flips it a month later at 102 to the pledged buyer. Is that it?
Why is that fraud? Its only somebody being smarter than the bank, surely (which is not v difficult). Plus that somebody carries the carry and funding risk if his pledged buyer walks and he ends up wearing the asset for a year or 3 (like it happened since 2007 in the UK).
Can someone tell me where I m wrong here?
If the bank doesn't own the home, but is merely the mortgage servicer of a foreclosed property. So if they're holding an asset that they're trying to recover loses to the real property owner (the bondholder of the mortgage-backed security), yet finance the purchase of the home on a short sale in order to get the MBS claim off their books. Then when the financed short sale is complete, they sell the property a few months later at a much higher price.
In that capacity, they'd have a conflict of interest by financing the purchase of properties that they're servicer to. If it turns out that the property increases in price a lot thereafter, the question becomes what was the real market price for the property and did the financing arm of the bank know the short sale price was significantly below market?
A Short Sale means that the Bank does not go into the Foreclosure process but instead agrees to a Sale of the Property for less that is owed by the Homeowner. So, the Homeowner can Sell the Property for less than is owed with the permission of the Banks.
Flipping a Sale is something different. An Investor signs a Contract with the Bank and in essence has an Equitable Interest in the Property. Ownership is considered transfeered at the time of the Contract but because of the way Contracts are written the risk of loss and possession of the Property remains with the Seller until transfeer of the Deed. The Investor can then Assign the Contract to purchase the Property to someone else. This is usually done prior to closing to avoid double closing and recording costs on the Sale.
OK, I see. This is actually something quite different to the practice in the UK where one can buy foreclosed property off the lender (bank, building society, you name it), fully transfer titles, and either tidy up (or fully refurb) and flip at 100%+ profit sometimes. I guess the fact that in the UK South East (effectively a diffetrent country in market terms to the rest fo the UK), the recession was deep, but v short. London prices are high watermarking again this year, first time since 2007.
Yes, that is also considered flipping. There are actually two types of flipping.
One where the Investor Contracts for the house and then attempts to find a Buyer in their place at Closing. This type of flip the Investor ususally only gets a small percentage of profit as the property is usually flipped to another Investor. This is because the first Investor does not have possession and cannot make any repairs prior to closing. Also, because the second Investor will also still have to pay cash for the property.
Another type is as you mentioned where the Investor buys the Property, settles and then fixes up the property and Sells it to a Homeowner, not another Investor.
Sarah Palin gets another "Gyno-Procto" exam ! She's cleaner than DSK's West African AIDS slut ! I'll bet Sarah has the "sweetest treat on the street" ! Monedas 2011 That house looks like the Fuhrer's bunker downstairs ! Must have been owned by a doomsday hoarder ! Ooops ! Don't forget....the World as we know it ends now on Oct. 21 ! You still have time to burn a few more Korans !
This doesn't surprise me. Banks are unloading properties *on the verge of foreclosure*. If you consider the nightmare that banks are having unloading *foreclosed* properties, especially short sales, it's no surprise that they'll take a hit to avoid dealing with another short, because shorts are complicated and messy. With all of the controversey involving foreclosures these days and the no so great condition of the market, all this seems to say to me is that banks are willing to move properties for cash.
The house was in good condition, considering it was a Foreclosure. No holes punched in the walls, no wiring ripped out of the walls, plumbing all ripped out, kitchen cabinets not spray painted with holes punched in them.
Yet, why blame Investors for going in and fixing up the house with their own money, time, labor. Paying for the Mortgage, Taxes, Insurance and repairs while rehabbing and waiting for a sale. As he said in the Video, the Bank would not give a loan on a house not finished. That means that he had to have the $800,000. in cash plus closing costs, the cash for repairs, carring costs and marketing costs (including Realtor Commissions), closing costs, etc. The total cash needed without the help of a Mortgage limits who could actually purchase the house, which in itself brings a lower price. What is stopping the Banks from hiring Contractors to fix the house up and then re market it for more Money?
Keep in mind that in many States like Maryland, the Banks can go after a Deficit Judgment on the Money they lose selling the house. Therefore the prior Owner could be responsible for the "loss". A Judgment lasts for 12 years, plus they could attach future wages. So, really who is the loser here? The Banks or the prior Owner?
When a listing says it needs TLC most people think it means it needs Tender Love and Care but it more accurately means Tons Of Loose Cash.
and if it wasn't a short sale but a flipped foreclosure would that also be fraud?
very disappointed that ZH would sensationalize by using a Business Insider style headline
Where is the evidence of fraud? Is percieved PROFIT all it takes to claim a transaction suspicious (we don't know is real basis after renovation)? If the banks don't put any effort into selling a property at a good price, too bad. There is risk in buying an "as is" property as well, as you may not know how much renovation needs to be done.
A DNC Troll post if there ever was one.....
Seriously? Fraud? If this article actually had proof of JPM purposefully listing way high to keep buyers away only so they could later fund the purchase.. then I could see fraud. But, buying a short sale deep in the money then rehabing and selling is called capitalism. This is how a market actually works. By this logic purchasing the ES after a horrible econ number comes in and a 5 min red stick drops it 5 points then flipping when it retraces 10 mins later is fraud as well. Thoroughly disappointed in this article.
Great article.
I watched an american news 'show' last night for the first time in ages (ABC news reported from Joplin - repeated on the BBC) and was shocked at how 'hollywood' news reporting has become for americans. I mean the use of blockbuster-type film titles to introduce various sections (like 'Direct Hit'), the beautiful presenters masquerading as journalists, weathermen etc. and the way it was filmed and cut to evoke the maximum emotional response.
Amazing, and more than a little bit worrying.
The news has the Hollywood gloss with no substance. Even Wolf Blitzer, on CNN, is now just a propaganda mouthpiece for the Obama administration.
The point I thought the post was making was that the bank sold the property cheap to a company they were financing. E.G. A conflict of interest.
I think this is the real estate agents/investors to defraud the banks. I knew two properties listed as such that the investors/listing agents bought recently and put on the market for 20%-40% more. I thought the real estate market is completely broken, and no fairness can be spoken of. There is appraisal process. how can they appraise something like this? Something is very wrong.
http://www.zillow.com/homedetails/1136-Mansiones-Ln-Chula-Vista-CA-91910/17139253_zpid/#{scid=hdp-site-map-bubble-address}
http://www.zillow.com/homedetails/1054-Acero-St-Chula-Vista-CA-91910/17139873_zpid/#{scid=hdp-site-map-bubble-address}
Not a fan of Sarah Palin-in-the-ass. But, Would someone familiar with property law care to wade in? I read every word of the article, and I cannot see where the "Fraud" occurred. The property was renovated before it was sold. Even if it weren't and the whole transaction took a milisecond instead of a year, that is precisely what agents and speculators do under normal conditions - buy and sell at a profit.
Unless there is a law specific to limiting profit in realestate sales, this looks legit to me. Bad for the original mortgage holder if the property was negative equity, but since the bank was in possession at the point of sale, it was going to happen anyway or become dead stock losing more of its value. Strange take on the story, imo, but I guess the author is unfamiliar with libel.
Most of these transactions between the real estate agents/investors and banks are under the table, and these properties were not on the market before being put on the market for profit. There is no due diligence on the banks part. Funny about this is that the banks may have financied the transactions.
+1
Many thanks. That's kind of monstrous for the original mortgage holder isn't it? If the banks are scheming with the speculators to offload properties at a profit (Only to the speculator) without benefitting the original mortgage holder, that may indeed be interpreted as fraud. A bit convoluted, and I can see how the bank benefits if they are financing both the speculator and the end buyer. Hmmm. What a sordid little business.
Another weird thing you will see is that there is listing on the market for, say $2 m, for 3 months, no buyer. Out of nowhere, the property is listed contingent for $800k. Obviously there is something wrong with the transaction, but this is common these days. My feeling is that if the market is so broken, and so corrupted, how can you expect recovery ?
So true, and I agree with your sentiment. So, if the banks are scheming with the broker/speculators, the original mortgage holder with negative equity ends up owing money to the bank after the sale, the speculator ends up owing money to the bank for the finance (paid back with interest after profit), and the broker arranges a new mortgage with the same bank for the end buyer so the cycle can begin again. Horrible.
I know of one example where the bank did put a house on the market and then simply ignored all offers then turned around and sold to a dealer for significantly less than a previously ignored bonified offer. That house is now being sold by the dealer for the same price as the ignored bonified offer. I never quite understood why they wanted to do this.
What is amazing that this ditz Palin was a nothing before McCain brought her on his GOP presidential ticket. And then from nothingness it takes a life of it's own complete with her daughter on Dancing with the Stars, an Alaskan adventure series. Not since the Big Bang from the singularity at the beginning of time have I or Stephen Hawking seen anything like it. I would check to see if there is any payback to McCain at the end of this.
Payback for McCain?
Palin becomes President. She appoints McCain as SecDef.
Arizona gets tons of Defense Patronage.
Then McCain Dies.
Oh, dammit, I forgot, Cindy gets to put her family's beer concessions system wide into the U.S. Defense Department.
Who said McCain didn't know how to marry up?
As long as I do not run into her shopping at Wholefoods, who cares where she lives or how much she paid.
Let me get this straight...... we are now pissed off that individual investors are "defrauding the BANKS?????"
Weren't the banks already paid for this treasonist act?? TARP anyone? Now we are felling sorry for them and complaining that THEY are being defrauded?? Weren't THEY the ones who got us into it...and then were given money by The Bernank to "lend"? only to have them NOT LEND???
This manipulative talk in this country is nothing short of extraordinary...I cannot believe that people are not rioting in the streets...oh, that's right...we don't bother to inform the sheeple.....
This one is unfair to conservatives:
"Palin, who in this case is completely innocent of any wrongdoing"
dup
Hey Palin, get the fuck out of my town.
Scottsdale isn't the haven for dumbshits, but apparently now it is. You are at odds with who you live around, and I know where your daughter's will be getting knocked up (out of wedlock while drunk of course). Watch out for the dui's Palin's, there's more cops around there than all of Alaska combined. Not to mention the checkpoints.
Google this
33.4995,-111.923767
If they go, I'm sure I'll hear about it.
It must be an older house in North Scottsdale since it's 82nd street, and not ~100th-140th, which explains the horse shit.
Hey Sarah, what's wrong with Alaska? Because you sure aren't "Scottsdale".
But I'm sure your slutty daughters, sure are. I've give it a couple of months before at least one of your daughters goes to that above bar district, of course.
Of course the dumb, stupid bitch and her idiot spoiled children have to come to my town. You don't belong here. Podunk isn't our song. Retarded isn't our voice. Idiocy is not what we want. She's going to make our city/state look stupid...and we don't want you here in this part of the 'lower 48'. Take your gift money for being an absolute idiot and go somewhere else.
My first thought, aside from the cultural noise, was that McCain will be retiring in the near future. How convenient.
Best make your peace with Sarah, buddy. I'd suggest dropping by with a pot roast.
Get the little carrots and pearl onions. Throw in some cheap burgandy and credit a nice bordeaux. Use fresh thime. New Irish potatoes would be a nice touch. And sea salt, definitely sea salt. Bring your pepper mill.
You'll be her next confidante. She might even wanna, you know . . .
If she bought title insurance, which I believe is obligatory, she can sleep soundly.
If it is true that the secret of a good blog is to not let the facts get in the way of a good story then Tyler Durden is a master of his craft.Myself if I am going to read fiction I would go for Grisham but each to their own.For anyone interested and it appears a few are here are the errors in the piece and the real life facts.The errors are so glaring I feel they must be deliberate as anyone with a computer and five minutes could be more accurate.
You cant get passed the headline before you find the first error.
Sarah Palin's New $1.75 Million House The house was bought by Safari investemnts llc for $1.695 million. Come on Tyler pull the tax records.
Error number 2 and yes folks we are still in the headline. Short Sale Fraud This purchase by Ian Whitmore was not a short sale transaction Typical of a lazy blogger Tyler then copies and pastes other peoples work.Well even he cant screw that up all though I doubt he fact checked it but lets move on.
Error 3
"Let's recall the math on Ms. Palin's purchase: Whitmore buys the short sale from JPMorgan in March 2010 for $805,000. He then flips it just about one year later to Ms. Palin for... $1,750,000. A profit of 118%."
As discussed not a short sale,as discussed $1.75m not the sales price . New error though is the 118 percent profit number.Hard to discuss profit when you cant be bothered to pull the tax records and get the sales price right but even if Tyler had he still needs to do a bit of work with that caculator.It would be tedious to list all the expenses incurred in turning this shambles into what it is today but I understand the profit for Ian Whitmore was about a tenth of that suggested .Frankly a poor return for the risk taking and work bit hey there has been all this subsequent entertainment and you cant put a price on that!
Error 4 and 5
"Then again, it would not surprise us if it was none other than JP Morgan who provided the financing to "real estate investor" Platinum First Realty to purchase the property in the first place and to keep it off the market with a substantially above market price."
There was no finance for this deal so no one was providing loans.Another thing that with 5 minutes research you could have established. Platinum First Realty is a real Estate broker and not an investment company. Ian Whitmore did not hang his license with Platinum First Realty until 2011 and indeed was not even a licensed real estate agent at the time of the purchase..Again all easy stuff to verify for anyone who cares about facts.
I would ask whoever Tyler Durden is to put the article into standard print so Ian Whitmore could sue and donate the proceeds to charity.Alas though I feel that this cowardly blogger who hides behind his computer screen is unlikely to oblige.So here is another offer.Print a retraction or prove my facts wrong.Do either and Ian Whitmore will donate a $1000 to the Phoenix Childrens Hospital.Over to you Tyler Durden....
yours sincerely
Ian Whitmore