Home Buyer Fraud Scheme

Paper Summary:

This paper explains that the current problems in the housing market have resulted in the highest number of foreclosures in decades. This situation is creating fraud schemes to lure unsuspecting buyers. Everyone with above average credit, the author cautions, can be victimized by the fraud scheme commonly known as a straw buyer. The paper exposes the fraudulent system of straw buyers, who are drawn into the real estate market by the dream of investing little and yet making an impressive amount of money.

From the Paper:

"For about a year, a straw buyer may be one of the happiest people around not knowing what their real estate future has in store for them. The investors seem to be true to their word giving the buyer five thousand dollars on each home purchase and the buyer has never had to worry about a mortgage or utility payment because the investor has been taking care of them as promised. The buyer may feel as if they have made one of the greatest business endeavors of their life until the day they are sipping on their latte while opening their mail only to realize they have a late payment on one of their investment properties."

Sample of Sources Used:

• Louwagie, P., & Howatt, G. (2007, June 09), 'Straw buyer' deals fuel tidal wave of foreclosures. Star Tribune. Retrieved October 01, 2007, from http:// www.startribune.com/462/story/1236301.html
• Federal Bureau of Investigation. (2007). Operation quick flip. Retrieved October 01, 2007, from http:// www.fbi.gov/page2/dec05/operationquickflip121405.htm
• Internal Revenue Services. (2005, April 19), Real estate fraud investigations. Retrieved October 01, 2007, from http://www.irs.gov/newsroom/article/0,,id=136208,00.html

More papers on Home Buyer Fraud Scheme:

• Analytical Essay # 130836 : "Protecting Home Buyers: Agencies and Laws"
• Research Paper # 100642 : "Protecting Home Buyers"
• Essay # 71817 : "Automobile Insurance Fraud"

APA Citation:

MLA Citation: