For example, let`s take the example of someone with good credit who gets a mortgage and buys a house for another person who has bad credit. Here, the buyer is a “straw” if they don`t intend to live in the house or make mortgage payments, and the person with a bad credit rating wouldn`t be able to legally buy the house themselves (because of bad credit). Securing the mortgage is a mortgage fraud scheme and is a criminal offense. A straw purchase or nominee purchase is a purchase whereby an agent agrees to purchase a good or service for someone who is unable or unwilling to purchase the good or service themselves, and the agent transfers the goods or services to that person after the purchase. In general, straw purchases are legal, except in cases where the final recipient of goods or services uses those goods or services to commit a crime with the prior knowledge of the straw buyer, or where the final owner is legally unable to purchase the goods or services. Federal and state agencies are aggressive in prosecuting those involved in straw purchase programs. Whether you`re the organizer of the program or simply agreed to serve as a straw buyer in someone else`s plan, you could be blamed for the whole scam and spend decades in jail. You need an experienced lawyer who understands mortgage fraud laws to defend your interests and fight for your freedom. Call Bukh Law Firm`s law firm, PLLC, for assistance.
If you are accused of being involved in a straw buying program, it`s time to contact a lawyer immediately. Your lawyer can help you answer questions so you don`t incriminate yourself and can help you decide how best to respond to charges to avoid harsh penalties. With the recent crackdown on potential mortgage and real estate fraud cases in Florida, many local investors could be subject to increased government scrutiny. Those who believe they are under investigation or investigation should seek legal assistance as soon as possible. Illegal straw purchases can be prosecuted under federal or state laws. A straw buyer is a person who buys a house and takes out a loan, pretending to intend to live in that house and pay the mortgage, when in fact the buyer does not intend to do any of these things. Straw buyers may be real people or, in some cases, do not exist at all. Straw buyer scam schemes are among the most common types of mortgage scams, as almost all scams aimed at improperly obtaining mortgage funds require a “buyer” who can apply for and qualify the loan.
The buyer may work with others, including an appraiser, broker and mortgage broker. When buying straw, another party manufactures real estate, cars and other items in the name of the actual buyer. A straw buyer is that person, usually an agent, who agrees to buy goods for the real buyer. Straw buyers and other parties involved in these types of illegal transactions can be charged with mortgage fraud, as well as mail fraud, wire transfer fraud, tax fraud, and money laundering. These charges can result in misdemeanors or convictions, substantial fines, and possible jail or jail time. Examples of legal straw purchases would be buying food for the elderly who can`t go to the supermarkets themselves due to poor health, or financing a car for someone who can`t get credit because of bad credit. In some cases, when purchasing straw, the agent may receive money or compensation from the final owner. Obtaining credit by a straw buyer is legal unless the agent and end-user of the funds defraud the lender or foreseeable final lender, for example: by signing false mortgage documents to be mixed and securitized with other mortgages, or if the terms of the loan expressly prohibit the use of an agent to raise funds. The typical situation is when a real estate agent or real estate agent finds a person with good credit (i.e. straw) to get a mortgage and buy a home for a person with bad credit. The other person could be a straw friend, a family member, a stranger, or even a fictional person.
A developer or builder may use straw buyers when a line of credit expires. A builder can use straw buyers to inflate their real estate sales volume to qualify for additional financing from their lender. This could happen if the lender bases the builder`s financing on its profits and the returns on the properties sold.