Something Stinks on Franklin Avenue
Does this house at 293 Franklin Avenue in Bed Stuy look to you like it’s worth $1,900,000? We didn’t think so. That’s why we decided to dig a little deeper when you saw it appear on the list of foreclosure auctions last week with a lien in the amount of $1,546,580. That’s when we discovered…
Does this house at 293 Franklin Avenue in Bed Stuy look to you like it’s worth $1,900,000? We didn’t think so. That’s why we decided to dig a little deeper when you saw it appear on the list of foreclosure auctions last week with a lien in the amount of $1,546,580. That’s when we discovered the property’s sales track record. It first sold for $400,000 in 2005, then $950,000 in 2006 and finally $1,900,000 in 2007. At that rate, why not $3,800,000 in 2008! Insanity! GMAP
Would it kill you go give us a streeteasy link?
and that stonefacing next door. That is part of reason.
(actually I kinda like it).
And bank originator didn’t care because they bundled and resold the loan within weeks. They made their profit.
I agree with you MM, this is a problem on the same scale as Ponzi schemes, or medicare fraud: we all pay in the end, and these people should have to repay before they get out of jail, or stay there.
Those quoins definitely add value.
And who ends up paying for their making off with the money? All of us, in terms of bailing out banks, higher real estate prices, rents, etc.
It especially galls me when it happens in neighborhoods like Bed Stuy, as it artificially increases prices, discouraging investment in the neighborhood, increasing the number of abandoned and foreclosed homes, and in general, keeping the neighborhood down, for no other reason than greed.
Find ’em, arrest ’em, and throw the book at them, and keep them in jail. I have no problem with that. They are mugging the neighborhood as surely as the guy hiding in an alley.
vanessa — what Maly says. Once you get the mortgage proceeds, you just disappear with the cash. Ultimately bank forecloses and gets stuck with the shortfall. Not for the faint of heart (or anyone with a shred of honesty in their bones or who) and some mortgage fraud rings have been busted recently.
NyGuy7, this would be a classic case of mortgage fraud. In the transaction, nothing is real: the seller, the mortgage broker, the straw buyer, the lawyers and the appraiser are all in cahoots to defraud the bank, and share the spoils (in this case, $1,500,000) between them.
can someone explain mortgage fraud to me? sounds like an easy way to make some extra dough
Can someone say mortgage fraud?