Nevada Realtor Arrested In Alleged Foreclosure Scam

Television advertisements and websites offer information for consumers interested in buying foreclosed property. While there is an abundance of such property that needs to be sold, consumers should tread carefully.

Whenever money begins flowing into a particular sector, there are always some who seek to profit by fraud. Nevada Attorney General Catherine Cortez Masto has announced the arrest of a Las Vegas Realtor she accuses of doing just that.

Christopher Brown, who worked for Better Homes and Garden Desert Properties, Las Vegas, was arrested and charged in connection with a scam relating to foreclosure auction sales.

Transferring property before a sale

According to the complaint, Brown filed a fraudulent and forged Trustees Deed Upon Sale with the County Recorder, transferring a property to an elderly victim prior to the actual foreclosure sale.  The victim had paid cash to purchase the property at auction. 

The state alleges instead of purchasing the property, Brown diverted the elderly victim’s payments to his personal use.  The alleged victim is a senior citizen who is said to have lost over $115,000 based on fraudulent promises.

“This case is another example of the type of systematic fraud that is rampant in the mortgage and foreclosure businesses,”  Masto said.

Ground zero

Masto may have seen more than her fair share if foreclosure fraud, since Nevada is one of the hardest-hit real estate markets in the country. Nevada routinely leads the nation in monthly foreclosures.

The safest way to purchase a foreclosed home is after the bank has repossessed the property. Them, the transaction is pretty much like any other real estate transaction, and is usually brokered by a professional real estate agent.

However, some investors, seeking to get homes even cheaper, enter into the auction process, which can be very risky.