COMMON REAL PROPERTY FRAUDS:

Home Equity/Identity Fraud – A forged deed is recorded to give the appearance that the perpetrator has
acquired ownership of a property. The perpetrator uses the equity in the property as collateral to borrow
money. No payments are made on the new loan(s), and the true owner could face foreclosure.

Home Renovation/Mortgage Fraud – Contractors offer to do home improvement work or lenders offer
special “low-interest” financing, but do not deliver what was promised. Homeowners are left with partially
complete or substandard construction, or a mortgage payment that is higher than expected.

Real Estate Investment/Foreclosure Fraud – Investors are lured into buying property that is supposedly
facing foreclosure for pennies on the dollar. Quitclaim deeds and other documents are forged to give the
appearance that a property is being sold to avoid foreclosure.

Source

Panama Growth

The International Monetary Fund (IMF) just released its forecast for economic growth in Central America. The collective economies from Guatemala to Panama will grow by an average of 2.7 percent next year according the IMF. Panama will lead the pack at 5 percent. The IMF predicts a growth rate of Panama’s economy of 6.3 percent in 2011.

The IMF states that Panama’s growth rate dipped to 3.3 percent in 2009 meaning that Panama never had a recession while virtually all of the rest of economies in the world experienced substantial contraction.

Panama Trade

Although the signed free trade agreement with the United States is still awaiting approval by the US senate a free trade agreement with Canada is progressing and Panama’s free trade agreements with Costa Rica and Singapore have helped reduce prices and promote trade for several years. Panama is current part of a delegation in Brussels negotiating a number of issues, including a trade agreement giving better access of agricultural products to the Common Market.

Whether trade stops in Panama or not at least 5 percent of sea trade in the world passes through the Panama Canal. That number may well double with the completion of the much larger set of locks in 2014 when the Panama Canal Expansion is completed. A key factor for Panama is the expansion of facilities along the old Panama Canal Zone. When the USA ran the canal it kept the area for five miles on either side as a military reserve. With the exit of the USA Panama is developing port facilities, logistics sites, and even assembly operations for export.

The increase in trade is expected to boost Panama’s economy even further as the recession lifts elsewhere and global trade picks up again.

Panama Business

For much of Panama’s existence a common source of development capital for the small business person was the pawn shop! Credit checks were difficult if not impossible and much property was not titled so that banks would not issue credit based on land and buildings a collateral.

Two things have happened over the years. The landmark work of economist Hernando De Soto showed that by titling property throughout the third world capital could be unleashed for growth and prosperity. Panama has aggressively pursued titling of property of many years with excellent results and the flourishing small business activity in Panama demonstrates.

The second factor has been a recent change in the credit law allowing more comprehensive and accurate credit checks. With the ability to demonstrate credit worthiness, and perhaps having property for collateral, small business owners are not cuing up at the pawn shop for the cash to launch a new business initiative.

More so than the Canal Expansion and growth in foreign trade the change in Panama’s credit laws has lead to greater prosperity of Panama’s middle class. This, in turn, has lead to higher car sales and the purchase of more expensive homes and apartments. This aspect of Panama’s prosperity has been as much a driver of real estate prices as the North Americans and Europeans purchasing high end property on the Bay of Panama.

Panama Real Estate Recovery, Growth, and Investment Opportunity

Although the middle and low ends of the Panama real estate market did not blink during the recent economic slowdown the high end experienced a substantial correction. Prices dropped along Avenida Balboa and in expat retirements havens from Cero Azul to Boquete. Banks repossessed properties and other are still available for a fraction of their previous prices.

What is happening as Panama’s economy mends itself and foreigners get their finances and credit in order again? The price of high end real estate in Panama is heading back up, as much as 35% in the last year. The high end of the market has a ways to go and local real estate experts are expecting another three to five years before prices reach a stable level. In the meantime add underpriced real estate to your list of Panama business opportunities.

Since the real estate market crash, fraud is at an all time high. The only way to protect yourself is to learn the signs of a scam and the recent laws and programs put into place to help victims. There have been 398,604 tenants evicted from homes already this year due to landlords in foreclosure and that number is growing daily. Most of the time when this happens, the tenant is completely unaware that their home is in jeopardy. This is called rent/equity skimming. It is a felony in most states and can be prosecuted.

Now to back up a little let me explain how and why this is happening. The first and most wide-spread reason is simply that these property owners are victims of bad loans. Their mortgage arms come due and without being able to refinance they are faced with foreclosure. At first they may try a loan modification, if they use one of these ‘companies’ many times they don’t work and they end up losing up to $2000, just to let the someone else call their bank for them. Even if the property owner is smart enough to go to the bank themselves the statistics on these are so poor that it only helps 6% of all property owners in the United States. After a modification fails, they try to sell, however, in most of these cases, the property is worth less than they owe and with the tightened lending markets, there are even less buyers which make their chances of selling even slimmer. Eventually the property owner gives up and moves’ knowing their ill fate is Foreclosure then Bankruptcy. However, since foreclosure takes several months, some property owners decide to rent the property out until the bank takes it back. The renter moves in and pays rent each month until they get the foreclosure letter from the bank saying that the owner has not being paying on their loan. The tenants in complete shock are quickly evicted by the bank. Even worse, some property owners offered a rent to own/lease option with the tenant and collected between $3000-$10,000 dollars up front. Since the property owner will be forced to file bankruptcy with the foreclosure, the tenant will never be able to get their ‘option money’ back. The owner of the property is simply angry and is trying to get some money back on their investment they will lose.

If you think that’s bad, just keep reading it gets worse. The next Real Estate scam is called a ‘Renter Shark”, this person, drives through a neighborhood, finds a vacant property. Breaks in and changes the locks, sticks a ‘for rent’ sign in the yard and then rents the property out. The tenants rent/lease option a home from a criminal, and then one day, someone stops by for the bank and finds people living in the home and evicts them. Again complete shock to the poor family/persons living in the home that will now be displaces and probably financially strained.

The good news is that there have been new laws put into place to help protect renters. There are other scams but, these are the most common right now. They are felonies in either case and will be prosecuted.

To learn more about these scams and how to protect yourself go to: Protect Yourself From Real Estate Fraud.Com

Mortgage fraud is on the rise today in the housing market, significantly so since 2001. In a real estate market where mortgage fraud was few and far between it has grown to high levels for both buyers and sellers and has created havoc and financial damage in the lives of many homeowners and home buyers. First-time home buyers and seniors are two of the highly targeted markets for home mortgage scams.

Mortgage fraud actually refers to a variety of scams. Most of these scams involve inflating the value of a house or other real property for more than its value and the scammer pockets the difference. It significantly affects your home buying, home-selling and home equity. It can raise its ugly head for subprime loans, foreclosures and reverse mortgages. It also can affect insider trading as it relates to mortgage securities.

The following tips will show you how you can avoid these scams and stop or spot mortgage fraud. It’ll help you become informed and prepared if you’re a homeowner looking to refinance or sell your home or if you’re a home buyer.

Be wary of any investment opportunities that offer “no money down” or “cash back at closing.” Be wary of adjustable mortgage interest rates and thoroughly understand what this means before you go this route.

Adjustable interest rates have created many home bad credit problems. Many home buyers just did not understand or were not fully informed about the future jump in interest rates and what that would mean. Many home buyers were not prepared for these high interest rates.

Make sure to check the history of the sales on the property. How many previous owners were there for the property? If there have been several sales within a short time it indicates the values are inflated.

Make sure to have your own real estate agent, real estate professional or real estate appraiser establish the value. Your best bet is to hire you own appraiser or a bank official who can validate the property price in case it’s inflated. This can be hard to tell in rapidly rising or falling markets. Scammers who are intent on fraud will pay an appraiser for the appraisal and report they want.

Make sure they are using comparables – that is getting the prices on similar properties that have sold in your area – not the prices on listed homes that haven’t sold. Check with your local tax assessor or whoever records the deeds to the property to make sure that the seller really does have title or own the property.

Common sense would tell you never to let anyone else use your name or Social Security number to buy a home or other property, even if they offer to pay you. But believe it or not this does happen.

Make sure to read and understand everything on your contract and other documents that you’re asked to sign. Talk to your real estate agent if you have one or a real estate attorney if you need anything explained.

If any of the documents have any blank areas or have any information that is not accurate, don’t sign. Check to make sure that your income is not overstated, the, source of your down payment is correct, the sales price is right, the type and length of your employment and states your intention to live in or on the property as your primary residence not use it for a rental if that’s the agreement.

Make sure to deal directly with the mortgage broker you’ve been working with or directly with the lender. Don’t let anyone lese handle or arrange your loan for you. Make sure you get a copy of all the signed closing documents.

Make sure to watch out for any of the older folks or first-time home buyers you know who may be unfamiliar with real estate transactions and real estate financing.

Mortgage fraud is most rampant in Nevada, California, Florida, Arizona and Illinois so if you live in these states watch out.

Much of the real estate fraud or mortgage fraud or scams are due to real estate insiders – mortgage brokers, lenders, loan officials and real estate brokers.

For example: your real estate broker insists that you use a certain lender or they have a mortgage company on site or in the same complex. Sure, many can be on the up and up but some are not. Your real estate broker should help you find the best and not steer you to one that he is in cahoots with. You have the final say.

Don’t let any lender try to talk you into borrowing more money than you need or can afford. Make sure to take your time and don’t feel pressured or rushed. Beware of any nothing-down loans and altered information to qualify you for a home loan. Don’t borrow any money that you can’t afford to pay back.

Ask your family, friends, co-workers and associates, who you trust who have recently completed a home mortgage, for referrals to mortgage brokers, lenders or other real estate professionals. This would be true also for loan modifications and “restructuring” loans.

Lastly make sure you get the best credit and financial counseling, go to home buying classes, real estate financing seminars or workshops and brush up on your mortgage and home buying education before taking the plunge. Avoid mortgage fraud by knowing the pitfalls and proceed slowly and cautiously and get an honest real estate broker or professional for the best home mortgage experience.