Wednesday, November 14, 2007

The Missing Notary Stamp

I've seen many real estate fraud cases which include a notary who either was negligent or just plain fraudulent. This case in L.A. involving a short sale fraud is the first time I have heard of fraud committed by way of a stolen notary stamp. I agree with the agents who wrote this story, how in the world a scammer thinks he or she can make money by recording fraudulent deeds in a foreclosure context, is beyond me. The only way someone could steal a stamp, record a deed (or a deed of trust, depending on their motive) and make money off fully-leveraged property, would be to also scam the lenders who have valid deeds of trust. Nevertheless, I believe as long as the title company properly searches title records, as most do, there won't be much damage. The new buyer will need to go to a court to have the fake deed reversed.

1 comment:

Rehinna said...

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