Showing posts with label fraud real estate notary stamp scam short sale. Show all posts
Showing posts with label fraud real estate notary stamp scam short sale. Show all posts

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.