Between paying for room and board, text books and social lives, many college kids are strapped for cash. So when they hear of a way to get easy money, they are all ears, which is exactly what a crooked mortgage broker was banking on.
"He used their good name and credit to obtain these properties," said US Postal Inspector Don Washington.
The student investors were told they didn't have to put up any money - just the use of their credit.
"He would put renters in the properties and they could earn the residual income by just by signing on the dotted line," explained Washington.
When they signed the closing documents on these investment properties, the broker claimed the rent payments would pay for the bank loan and…
"After a while after the home appreciated he would sell the homes and split the profit with them. Sounded like a good idea to these young people," said Washington.
The problem is he didn't pay the mortgage and the homes went into foreclosure. The scam created a credit nightmare for these college students. Instead of building wealth, they were heading for bankruptcy.
"If you have the feeling that you have been scammed, you should check your credit no more than 30 days when something like this has happened," said Washington.
Anyone can be a victim of mortgage fraud. inspectors recommend having an attorney look over your paperwork carefully before signing any loan.
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