Were You a Victim of Real Estate or Mortgage Fraud?

Most people buying a home or refinancing put their trust on their mortgage broker or real estate agent but in many occasions this trust is abused by these same so called “professionals”.

I have encountered many cases where a real estate agent and a mortgage broker teamed up to literally rob money from the homeowners like the many publicized alleged cases. Cases like the one involving Bic Pho and Felipe Neri both from Century 21 Su Casa (now bankrupt but the owner and affiliates are still operating with different companies’ names) and the cases of Linda Tran and Norma Valdovinos from a different Century 21 office and other cases which have not yet been discovered by the law here in San Jose.

Cases like the ones where a family was pressured into buying an overpriced home and the person that represented and guided them through the purchase did not even have a real estate license or cases like the ones where an agent convinced another family to participate in a “straw buyer scheme.

In order to prevent being another victim, consumers need to do a little bit of research about the agent or mortgage broker representing them in the purchase, sale or refinancing of their home.

Real estate agents in California are regulated by the California Department of Real Estate and homeowners should verify the agent is properly licensed by the DRE (916-227-0770)

It should also be verified that not only the agent is properly licensed by the DRE but that the agent is also a REALTOR® because we are held to much stricter ethics regulations than the DRE. In California you can verify the agent is a REALTOR® through CAR. In San Jose and all of Santa Clara County you can verify the agent is a REALTOR® through SCCAOR.

Mortgage brokers in California and loan officers or mortgage consultants are required to be licensed by the California Department of Real Estate or the Department of Corporations and homeowners should verify the mortgage broker and loan officer is properly licensed with the DRE or the DOC (866-275-2677)

It is advised that you notify as many agencies as soon as possible if you were a victim of real estate and/or mortgage fraud. Some of the agencies you should notify to investigate in Santa Clara county are:

California Department of Real Estate Ph:916-227-0770 (DRE complaint form *PDF format*)
Department of Corporations Ph:866-275-2677 (DOC compaint form *PDF format*)
Santa Clara County District Attorney’s Office - Real Estate Fraud Unit Ph:408-792-2639 Carol Vega, Paralegal - 70 West Hedding St, West Wing 4th Floor, San Jose CA 95110 - (Santa Clara DA complaint form *PDF format*)
F.B.I. - San Jose Resident Agency / Santa Clara County Ph:408-369-8900 Tamara Neiman - 1919 S. Bascom Ave, Suite #400, Campbell CA 95008 (call for the complaint form)
Santa Clara County Association of Realtors 408-445-8500 (SCCAOR filing a complaint)

On the same token the DRE has a list of persons or entities that have been issued a Desist and Refrain Order for conducting real estate activity without being properly licensed. If you have dealt with these persons or entities in any type of real estate transaction like the purchase, sale or refinance you may have been victimized.

The number code following the name of the person or entity has the code of the Department that issued the Desist and Refrain Order. For example in the Sacramento area is SAC, the Bay Area is SF, in the Los Angeles area is LA and so on.

Consumers can visit the DRE’s website and learn how to file a complaint, and visit this other section of the DRE to get information on whom to call when the DRE has no jurisdiction over certain areas like:

Real Estate Settlement Procedures Act (RESPA)
Truth in Lending Act (TILA & Regulation Z)
Fair Credit Reporting Act (FCRA)
Fair Debt Collection Practices Act (FDCPA)
Fair Credit Reporting Act (FCRA)
Home Mortgage Disclosure Act (HMDA)
And much more

Comments

6 Responses to “Were You a Victim of Real Estate or Mortgage Fraud?”

Real Estate/Mortgage Broker Faces Investment Fraud Charges in San Jose on January 24th, 2008 6:39 pm

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Former Century 21 Su Casa Agent arrested in San Jose California - Real Estate on June 24th, 2008 3:23 pm

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Loan Modification and Foreclosure Help at San Jose Community Event : San Jose-Santa Clara County Real Estate UNCENSORED on August 17th, 2008 8:26 pm

[...] available if you believe there was fraud committed in the purchase, sale or refinance of your home. You may present a formal complaint by bringing the necessary documentation and completed form to this [...]
Mortgage Fraud: How a “Straw Buyer” Scheme Works : San Jose-Santa Clara County Real Estate UNCENSORED on October 10th, 2008 12:10 pm

[...] If you have been a victim follow these instructions to report mortgage fraud. [...]
Tatiana on October 31st, 2008 10:47 am

Very useful post. where can i find more articles on how to avoid mortgage fraud?
Ney on October 31st, 2008 11:10 am

Tatiana,

You can click on the link labeled “Real Estate & Mortgage Fraud” under the “Categories” section.