Recognizing fraud Part 2
The fraud goes like this, first there will be ringleader. He is to look for a buyer with good credit history and convince him to invest in a certain property. The ringleader will bring to the picture an appraiser. As part of the scam, the appraiser will provide an assessment that is radically higher than the actual cost of the property. Then the ringleader will make arrangement for the buyer to make a loan under his name. Actually it is a no-document loan and the details are falsified. Then the buyer will purchase the property from the seller who is also part of the scam. The seller will then make a lot of profit and he will distribute parts of the profit to the other accomplices leaving the helpless buyer.