January 24, 2007

Let's take the Cash-Back-Carousel-of-Fraud(TM) for a spin. Today's stop: Craigslist Sacramento

Jan-23 ▲■ 35K-40K CASH BACK """ Pre construction Incentives img
Jan-23 $374900 FOR SALE BY OWNER - CASH BACK INCENTIVES (GALT, CALIFORNIA)
Jan-23 WANT CASH BACK? (Sacramento) pic
Jan-23 ■■ 35K-60K CASH BACK --- Preconstruction Investment Incentives img
Jan-22 $475000 No Out of Pocket 475K w/ 25K Cash Back plus 12 month (San Antonio) pic
Jan-22 $20000 CASH BACK! (SAC. AREA) pic
Jan-21 ▊■ 55K CASH BACK ▓ Preconstruction Opportunity img
Jan-20 $389000 New 4bd/3ba home...Buyers receive cash back on any home(comm. rebate) (Sacramento) pic
Jan-19 ▼▼ Pre construction Investment Project ; 35K CASH BACK img
Jan-19 ▊■15% CASH BACK & zero taxes incentives - PreConstruction Deal img
Jan-18 █▲ Pre Construction Deal ~~ 14% CASH BACK img
Jan-18 $300450000 Looking for a home to buy with some cash back can anyone help me. (sacramento area)
Jan-18 $389000 New 4bd/3ba home...Buyers receive cash back on any home(comm. rebate) (Sacramento)

16 comments:

Anonymous said...

March will see a thaw in housing prices as listings surge for the spring selling season while foreclosures surge.

Anonymous said...

Is it still fraud/illegal if the homebuilder is offering cash back and you use their company's financing? That would be like a cash-back offer from the car dealers, no?

Anonymous said...

that is friggin unbelievable
that is criminal
read the one neer the bottom 14%off
no payments for 4 years no tax
plain and simple
that is criminal

Anonymous said...

would the bank lend you a $30,000
for a car that cost $20,000
if you had terrible credit?

Newbie said...

Can someone explain in detail how Cash-backs work?

Anonymous said...

I say all the poor people should do liar's loans, take the cashback, live there until foreclosure, and screw the stupid lenders. this is the only way they will learn. First, we have to shut down the GSE's so the taxpayers don't get screwed too

Anonymous said...

How does a Million cash back sound?? How can this be legal?

found on craigslist

http://tinyurl.com/2xp9gs

Anonymous said...

As a person who lives in Sacramento, it was eye opening to see that this is the capital of mortgage fraud right now. It makes perfect sense because the Sacramento market went absolutely nuts these past few years. The things people do to buy a home is quite scary and the near universal belief that you needed to buy was nearly cult like. I can see how and why cash backs are big here now.

Anonymous said...

would the bank lend you a $30,000
for a car that cost $20,000
if you had terrible credit?


Happens all the time. Dealers lend more than the car is worth. Ever heard those car ads that say "we'll pay off your loan no matter how upside down you are"?

That is the exact same scenario. Someone comes in with a trade worth $5000 and a loan on it of $10,000. They buy a $25,000 car and add the $5,000 on top if for a $30,000 loan on a $25,000 car. Perfectly legal.

I think KEIF and the rest of you are confusing fraud with bad business decisions. Either that or - more likely - you have no clude what you're talking about.

Anonymous said...

Every one of these craigslist ads got pulled because of HP's post FYI

Same as the Phoenix ads

Weird

Bondo said...

VA realtor offering cash back as if its legal!
http://www.onlyfour.com/

Anon666 said...

nah, I think it was just HP'ers flagging them down. Too bad, because now I can't look at them.

Dave said...

http://sacramento.craigslist.org/search/rfs?query=cash%20back

Anonymous said...

Is there a place to report these fraud offers in Washington state?

There is a shyster mortgage broker posting 10% cash back financing posters all over my work place, and I want to tip off the state authorities to them.

Anonymous said...

For home buyers or sellers, Most states allow a party to the contract to share in the real estate commission from a real estate broker, disclosure to all parties is required.

So legally a real estate broker can give the home buyer or seller a legal cash back that appears on the closing statement.

Other types of non real estate broker cash back or stipulations could be suspect.

Anonymous said...

How cash back works.

Legally, for the purchase of real estate, a real estate broker (only) can share his commission with the buyer or seller.

Businesses other than licensed real estate brokers offering cash back is questionable.

Lets say they charge 6% commission to sell a house.3% to the buyers broker/agent and 3% to the sellers broker/agent.

The either broker can legally give a fully disclosed "cash rebate" to his client. "30% cash back" is 30% of his 3% commission. No one is charged more because of the cash back. The broker makes less but is happy to get the business.