Call Shotgun (It’s the fraud of the year)
I hear that and I figure someone wants the passenger set, not that we are talking about mortgage fraud. Daily Real Estate News from the National Association of Realtors has released a story “Beware of Latest Mortgage Scam“.
Shotgunning is where thieves apply for multiple home loans simultaneously on the same property. The story claims it is the Eastern Europeans “Russian Mafia” who run the scam, who take the millions and live the good life back wherever they came from.
Title companies are looking to form a consortium so that this fraud can be spotted before rather than after. Simply there is no common location that allows banks, title companies to know that one mortgage or multiple mortgage has been applied for. Thieves could easily apply at bank A, B, and C and they all would never know until during a post close audit that there are 3 loans against the property. Someone with a basic knowledge of how the process works could easily pull off the scam.
Check out some other stories on GetMeApprovedToday on Mortgage Fraud.
