Media Appearance: KSTP Story on Mortgage Fraud, Parish Marketing

by Alex Stenback on September 10, 2007

Mortgage_fraud_2
I’ve received a ton of email on this, so here’s the short and sweet on my TV appearance last night.  (As a confirmed web news junkie, I am always surprised at the penetration of the good old local news broadcast.)

Our Sunday afternoon of grilling and watching the PGA playoffs was interrupted by a call from an executive producer over at KSTP to appear on air for a follow up story on the recent (alleged) mortgage fraud ring in New Prague.  Not one to turn down a TV spot, (shameless self promoter that I am) I happily obliged.

Here’s a link to the video, filed by reporter Tim Sherno, confirming I have a face better suited for Radio and blogging.

While this was a good follow up segment, and did a nice job laying out the impact of such schemes on our broader real estate market, the unasked question in the piece was: 

How does the average person protect themselves against getting caught up in one of these schemes?

  • Before signing on the line that is dotted, if you have any questions or concerns, hire an independent third party to vet the deal. 
  • Especially if you are working with a group of closely aligned affiliates (title, realtor, loan officer, appraiser, all working together) that are all being paid contingent on closing the sale.

Most real estate/mortgage fraud involves an inflated sales price -this is THE dead giveway – so hire your own appraiser to ascertain the true value of a property, or hire an attorney to look the whole transaction over.  Yes, this ads cost, but it is pocket change compared to signing up for financial ruin.

For the backstory on this, see also the post from Friday, and the original story, which was broken by our man Chris Serres over at the Star-Tribune. Both linked below.
Alleged Mortgage Conspiracy Led to $50 Million in Losses [Strib]
Alleged Fraud for Profit Mortgage Scheme In Southern Metro [BTM]

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