...two seniors and a 37-year-old woman secured millions of dollars in home loans for three ritzy properties in Versailles, as well as two in Palm Beach Gardens' Osprey Isles and two condos in Wellington.
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The bill for the trio's home-buying spree: $5.1 million.
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Castells got $1.375 million in first and second mortgages to purchase his $1.25 million home, according to court records, an excess of $125,000. Similarly, Richardson borrowed $327,500 above the recorded sales price.
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Two Versailles mortgage deals were among indictments handed down last year by a multi-agency task force created by the FBI. Asked if Versailles transactions were still being examined, a spokeswoman for the FBI said, "The investigation continues".
This house, for (short) sale for $395K is in the neighborhood that the article talks about. It sold for $2.1M in 2007. With a mortgage of only $1.47M this buyer may have only been a victim of all the fraud, but JP Morgan (or the poor saps that invested in its MBS) is still going to take a much larger hit.
It blows my mind, these scenarios are endless in the poorly planned sprawl of McMansions found in newly developed regions of South Florida. Entire neighborhoods that are nothing but fraudulent purchases with fraudulent appraisers, mortgage brokers, buyers, sellers... the whole thing was a giant sham! I wonder where they all are today? Perhaps they have moved on up...
To make things worse, it can, and will happen again. Planning is already in the works: 1,590 homes on the way? Palm Beach county developers want to build on six rural tracts, again from Paul Quinlan at the Palm Beach Post.
wasn't sure if the blog was fumu or fufu finance. being in soflo and all...
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