You have not made it as a distant suburb until a mortgage fraud ring gets busted:
An alleged mortgage fraud case involving perhaps as many as 130 homes — mainly in one Otsego development — with mortgages totaling more than $40 million.
It’s always the same sales pitch:
The two firms ran newspaper ads promising $25,000 to $30,000 to investors with no up-front costs as long as their credit score was above 680…All investors had to do was apply to buy multiple properties.
The firm promises to cover all the messy details, like finding rent-to-own tenants, managing the properties, and selling them to the renters in two years, at which point the profits would be split.
Of course, none of that happens. The firm pockets the cash. The investors wind up with multiple mortgages in foreclosure, shredded credit, and their name in the paper. The renters are on the street trying to start over. The lenders are out millions on the fraudulent loans. The neigborhood gets pocked with foreclosures and values tank.
When it is all said and done, the alleged perpetrators might get four years. The impacted people and neighborhood will be lucky to recover in as much time.
Victims of Investment in Otsego [Strib]