Feds Crack Down on Foreclosure Auction Scams
A report from the Associated Press sheds light on a growing trend of illegal scams. Federal authorities have arrested and charged 54 people and two companies for bid rigging at courthouse auctions. California had the most cases, but law enforcement officers busted similar rings in Mobile, Alabama and Raleigh, North Carolina.
One person was told to bid on every property, assuring them of getting it. Almost immediately after the official bidding ended, investors would hold another auction. Once the real price of the property was revealed, the schemers would divide the difference between what was paid at the first affair and their own event, netting the scammers huge sums of money.
During the economic downturn and recession, foreclosures became common place, making the scammers millions of dollars. Scammers took the money that should have gone to banks to pay off a portion of the mortgage. Within the last two years, 30 people from counties in Northern California pleaded guilty to participating in these schemes.
Contact the Zwahlen Team for information about a foreclosure or other real estate for sale in the Danville, California area. If you are looking to buy a foreclosure, we will make sure that you can compete on a “level playing field”.