Officials from the Santa Clara County District Attorney's office recently told Silicon Valley REALTORS® that they are taking a pro-active approach to real estate fraud. They said REALTORS® are important in their fight against real estate fraud and they asked members of the Silicon Valley Association of REALTORS® for their help in reporting suspicious activity involving property issues.
"You are our eyes and ears," said deputy district attorney Kim Connors.
Real estate fraud has been on the rise since the mortgage meltdown. Deputy district attorney Mike Fitzsimmons told REALTORS® their office now has the resources to fight these crimes. Fitzsimmons explained financing to fight real estate fraud comes from recording fees. Before this year, $3 from each recording fee went to the unit; this year, $10 will go to toward real estate fraud prosecution.
The increased funding has allowed the office to hire more people for its real estate fraud unit, including four prosecutors, three full-time paralegals and seven investigators. One paralegal is assigned to review changes in titles, send out letters to homeowners verifying authenticity, and letters to homeowners who have received notices of default, with information on what they can do and victim prevention tips.
"We have a lot more money to work with. With new funding, we now have the ability and higher capacity to deal with these crimes," said Fitzsimmons.
Elder fraud is happening more frequently and it is very important that this and other types of crimes or suspicions of crimes being committed, be reported immediately, said Connors. Once homeowners are victimized and a new buyer is involved, "it is very hard to put someone back to where they were because the law protects innocent third party buyers," said Connors.
Many cases of real estate fraud involve rental scams, including rental of rooms in a property, ponzi schemes involving the financing, sale and transfer of property and sovereign citizens, who do not recognize the government. Sovereign citizens have been caught filing liens and notices seeking to wipe out mortgages and cancel foreclosures, then charging homeowners for their services. They convince desperate homeowners to deed the property and make payments to them, and promise they would deed the property back to them after a few years. They then strip the property of all its equity, or sell the property to someone else. These types of crimes have resulted in a loss of as much as $94 million dollars.
The district attorney's office can prosecute, but it does not have the authority to correct title or evict residents. This is why reporting suspicious activity immediately is critical.
"Don't hesitate to contact us. Do not be the easy house. If you think something it not right, report it," said Connors.
For questions, or to report a crime or suspicious activity, contact the Real Estate Fraud Unit at (408) 792-2818.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.