COVID and the housing market | Page 296 | GTAMotorcycle.com

COVID and the housing market

Near where I grew up an investor owned 20acres of farmland , some guy (we knew) started to develope a 1/4 mile oval horse training track on the property , construction company worked about a month clearing and grading till the owner came by one day with a WTF? construction crew doesnt get paid, you can repossess a pile of gravel, guy that started the scam shrugges his shoulders , that he could claim squaters rights. 3 months later the town tries to fine the property owner for a developement with no permits. Oy vey
 
GreyGhost said:
Hot markets plus fast close equals house sold by criminals while you are on vacation. This one will be a stinker to unwind. Does title insurance pay out to the buyers? They would be homeless but have their original money in that case. I am assuming the original owners get the house back.

toronto.citynews.ca

Suspects sought for impersonating Toronto homeowners, selling home

Toronto police are seeking help identify two people who allegedly impersonated homeowners and sold their home without consent last year.
toronto.citynews.ca toronto.citynews.ca

Investigators say the owners of a Toronto property were out of the country on business in January 2022 when two people used fake identification to impersonate them.

Acting as the real homeowners, the suspects hired a real estate agent and managed to list their property. The property was eventually sold and new homeowners took possession.

The actual owners returned to Toronto several months later to find their home was listed and sold without their knowledge.
Click to expand...
This was far too common a decade or so back (just happening too often not all the time). They put "some" controls in place to make it harder but obviously still a problem. Back then they were even selling the house sight unseen while you were home.

IMO, the solution is simple. House goes back to original owner, everyone else including banks, buyer, realtor, etc. lose everything. Buyer can sue their realtor and lawyer. Boom, future problems solved via due diligence. Sadly that is not the case. You are at higher risk if the house is paid off as it removes your mortgage holder from saying hey WTF...
****
The more recent common one was scammer does a short term rental and then does viewings and rents the condo to dozens of people, low ball rent to get lots of traffic. First and last in cash or cash equivalent because, you know, the maket is hot and lots of people want it. Move in day there is a line of vans and the scammer is in the wind.
 
Pretty sure there is a govt fund that compensates people who lose property due to fraud. It's messy all around though and people practicing it should end up in jail. Rob a bank of $1m or tax fraud $1m and guaranteed you'll end up in the clink. Rob some poor guy of his $1m life savings and home and get a slap on the wrist.
 
DownUnder said:
Pretty sure there is a govt fund that compensates people who lose property due to fraud.
Click to expand...

Never heard about this.

Title insurance would protect you from fraud and is relatively inexpensive.
 
The problem with insurance or gov funds is you potentially still lose your home so you are not made whole. Sure you get money but that may not help much. No problem with the above paying extra to compensate you and to 100% cover legal.

Having the entire deal reversed and ALL the money people left holding the bag including the new buyer, is the only way they will pay attention.

If you but a stolen car not knowing, you don't get to keep the car.....
 
ReSTored said:
Never heard about this.

Title insurance would protect you from fraud and is relatively inexpensive.
Click to expand...
I've never heard of a gov't fund either and would be surprised if it exists. Seems unnecessary and the cost of it would be better used making a bigger hammer.

Title insurance is almost mandatory while being theoretically optional (similar to motorcycle safety course). On my last house, I wanted to add a HELOC and that basically required me to buy my house from myself. It was cheaper for me to buy title insurance (again) when buying from myself than it was to have lawyer do all steps required to avoid the need for title insurance. Ridiculous. Paperwork was less than 2K. Never used that HELOC but I needed it available as I was quitting and starting a new company.
 
ReSTored said:
Never heard about this.

Title insurance would protect you from fraud and is relatively inexpensive.
Click to expand...

GreyGhost said:
I've never heard of a gov't fund either and would be surprised if it exists. Seems unnecessary and the cost of it would be better used making a bigger hammer.

Title insurance is almost mandatory while being theoretically optional (similar to motorcycle safety course). On my last house, I wanted to add a HELOC and that basically required me to buy my house from myself. It was cheaper for me to buy title insurance (again) when buying from myself than it was to have lawyer do all steps required to avoid the need for title insurance. Ridiculous. Paperwork was less than 2K. Never used that HELOC but I needed it available as I was quitting and starting a new company.
Click to expand...

It's called the Land Titles Assurance Fund. If someone dose some fraud or there is issues with title registration and sells a property you own you can get compensated by the fund if you can't get money from the fraudster ie: they skipped town or have no money to pay you. The new owner is not really liable unless they were a part of the fraud.
 
GreyGhost said:
I've never heard of a gov't fund either and would be surprised if it exists. Seems unnecessary and the cost of it would be better used making a bigger hammer.

Title insurance is almost mandatory while being theoretically optional (similar to motorcycle safety course). On my last house, I wanted to add a HELOC and that basically required me to buy my house from myself. It was cheaper for me to buy title insurance (again) when buying from myself than it was to have lawyer do all steps required to avoid the need for title insurance. Ridiculous. Paperwork was less than 2K. Never used that HELOC but I needed it available as I was quitting and starting a new company.
Click to expand...
There is no fund.

In my case, a lawyer who managed the property on behalf of 100 investors realized some died before their MURB matured. Because I was not in contact with him, he thought I had passed or lost touch with my investment. He transferred 13 deeds, including mine, into his and his son's names then sold them for $300K each.

I was waiting for my payday, still getting cheques for the rent however the scoundrel transferred the title and sold the property for $300K, paying my monthly divenden from the proceeds so there was no suspicion. TD bank still held a $60K mortgage on my property, they forgave it entirely as they were negligent in releasing the security so he could arrange the sales. FMV was $300K at the time ($600K now), I figured it out and sued. I got my FMV $300K back + $50K in legal bills, but part of the deal was an NDA that prohibited me from disclosing terms and contacting or sharing the settlement terms with other investors.

I'd shoot the guy in the face if I ever met him, I know there are at least 12 other victims.
 
GreyGhost said:
I've never heard of a gov't fund either and would be surprised if it exists. Seems unnecessary and the cost of it would be better used making a bigger hammer.

Title insurance is almost mandatory while being theoretically optional (similar to motorcycle safety course). On my last house, I wanted to add a HELOC and that basically required me to buy my house from myself. It was cheaper for me to buy title insurance (again) when buying from myself than it was to have lawyer do all steps required to avoid the need for title insurance. Ridiculous. Paperwork was less than 2K. Never used that HELOC but I needed it available as I was quitting and starting a new company.
Click to expand...
I have a zero HELOC on my place. It's a bit of a hurdle.
 
This house came with a massive HELOC, our mortgage broker got paid for every service she sold us , on the banks end, so small transitional mortgage , huge HELOC to maximize her payday. OK whatever , its there and we arent tempted to use it for evil.

Couple we know, he moves into a house she owns, they live together 9yrs. Relationship goes south , she finds out he took $150K on a LOC tied to HER house, his name was not on the title , nor should he have been able to withdraw funds, and change the mailing address on bank statements, Dont underestimate how bad banks are at doing due diligence, and yes he is a serial con man
 
crankcall said:
This house came with a massive HELOC, our mortgage broker got paid for every service she sold us , on the banks end, so small transitional mortgage , huge HELOC to maximize her payday. OK whatever , its there and we arent tempted to use it for evil.

Couple we know, he moves into a house she owns, they live together 9yrs. Relationship goes south , she finds out he took $150K on a LOC tied to HER house, his name was not on the title , nor should he have been able to withdraw funds, and change the mailing address on bank statements, Dont underestimate how bad banks are at doing due diligence, and yes he is a serial con man
Click to expand...
Banks will recind the security on a fraudulently obtained loan.
 
crankcall said:
This house came with a massive HELOC, our mortgage broker got paid for every service she sold us , on the banks end, so small transitional mortgage , huge HELOC to maximize her payday. OK whatever , its there and we arent tempted to use it for evil.

Couple we know, he moves into a house she owns, they live together 9yrs. Relationship goes south , she finds out he took $150K on a LOC tied to HER house, his name was not on the title , nor should he have been able to withdraw funds, and change the mailing address on bank statements, Dont underestimate how bad banks are at doing due diligence, and yes he is a serial con man
Click to expand...
When opening any account with a bank there is, in the small print, "In case of dispute, you lose."
 
backmarkerducati said:
The problem with insurance or gov funds is you potentially still lose your home so you are not made whole. Sure you get money but that may not help much. No problem with the above paying extra to compensate you and to 100% cover legal.

Having the entire deal reversed and ALL the money people left holding the bag including the new buyer, is the only way they will pay attention.

If you but a stolen car not knowing, you don't get to keep the car.....
Click to expand...

How long does the fix take? Many years I suspect and where do you live in the mean time. Then hopefully you get a cheque and start looking. As you wait your kids are distanced from schools and friends. Who pays the rent in the temporary place. This is so sick.
Click to expand...
 
Oh boy...'assignment sales inquiries are way up' is not a good sign moving forward.

Anyone with free cash to spare can make out like a bandit in the very near future from the looks of it.

www.thestar.com

Agents report surge in home buyers desperate to get out of deals as rates continue to soar

Calls from concerned condo buyers have doubled over the last few months, one agents says, as many want to get out of developer purchase agreements. Single family home presale buyers may be in even more trouble.
www.thestar.com www.thestar.com
 
mimico_polak said:
Oh boy...'assignment sales inquiries are way up' is not a good sign moving forward.

Anyone with free cash to spare can make out like a bandit in the very near future from the looks of it.

www.thestar.com

Agents report surge in home buyers desperate to get out of deals as rates continue to soar

Calls from concerned condo buyers have doubled over the last few months, one agents says, as many want to get out of developer purchase agreements. Single family home presale buyers may be in even more trouble.
www.thestar.com www.thestar.com
Click to expand...
How do I find these it could be interesting

Sent from the future
 
Scuba Steve said:
How do I find these it could be interesting

Sent from the future
Click to expand...
There was a GTAMer a while back who said they did a lot of assignment sales. Can't remember who it was, but if it comes back to me I'll send you a note.
 
mimico_polak said:
There was a GTAMer a while back who said they did a lot of assignment sales. Can't remember who it was, but if it comes back to me I'll send you a note.
Click to expand...
Guy that owned some restaurants and a model 3. Hasn't been around in a while IIRC. I think he was buying presales and selling assignments and not the other way around but I could be wrong.
 
GreyGhost said:
Guy that owned some restaurants and a model 3. Hasn't been around in a while IIRC. I think he was buying presales and selling assignments and not the other way around but I could be wrong.
Click to expand...
You're correct. He was buying presales and selling assignments. But may have insight into the flip part of it.

But I can't remember who.
 
You must log in or register to reply here.

Back
Top Bottom