Scheme Gets Agent and 5 Others Convicted
Scheme Gets Agent and 5 Others Convicted
Friday, April 06, 2007 - By Staff Writer, National Realty News
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OKLAHOMA - Brandon L Baum, a licensed real estate agent and five others were convicted this week by a federal jury of all charges for employing illegal cash back at closing scheme.
According to the indictment obtained by the National Realty News, “Potential homebuyers represented by Baum were told they could receive substantial funds at the time of closing under the guise of ‘repair costs’ which they could use for their personal benefit, if they agreed to purchase homes at an inflated price.”
“Once the terms of a purchase had been approved by both the buyer and seller, in many cases [the] sellers’ agents would increase the MLS list price for the properties to an amount equal to or above the agreed inflated sales price to avoid detection by lenders and others” the indictment said.
At closing, the title companies were directed by Baum, sellers’ agents and the sellers to issue checks from the sales proceeds to various entities for purported remodeling, repair costs, marketing service fees or other fees.
NCaHome is a full service residential real estate brokerage charging only 1.5% commission. Professional real estate services for California buyers and sellers. Visit us today at www.NCaHome.com or call (707) 693-0200.
Friday, April 06, 2007 - By Staff Writer, National Realty News
--------------------------------------------------------------------------------
OKLAHOMA - Brandon L Baum, a licensed real estate agent and five others were convicted this week by a federal jury of all charges for employing illegal cash back at closing scheme.
According to the indictment obtained by the National Realty News, “Potential homebuyers represented by Baum were told they could receive substantial funds at the time of closing under the guise of ‘repair costs’ which they could use for their personal benefit, if they agreed to purchase homes at an inflated price.”
“Once the terms of a purchase had been approved by both the buyer and seller, in many cases [the] sellers’ agents would increase the MLS list price for the properties to an amount equal to or above the agreed inflated sales price to avoid detection by lenders and others” the indictment said.
At closing, the title companies were directed by Baum, sellers’ agents and the sellers to issue checks from the sales proceeds to various entities for purported remodeling, repair costs, marketing service fees or other fees.
NCaHome is a full service residential real estate brokerage charging only 1.5% commission. Professional real estate services for California buyers and sellers. Visit us today at www.NCaHome.com or call (707) 693-0200.Labels: Illegal Real Estate Scams
