High foreclosure rates and tons of foreclosed properties sold at Sheriff home sales have contributed largely to the decline of North Carolina's housing market. However, authorities reveal that on the eve of the housing market crisis, certain individuals tried to make money through fraudulent activities involving worthless land deals.
According to real estate reports, before the surge of foreclosure numbers in the area, including foreclosed homes in Fayetteville, investors were made to lose money by certain people who promised quick profits to investors who will invest in undeveloped pieces of land. The scheme was reportedly developed by mortgage broker Mark Dain.
Before the issue of North Carolina foreclosure listings became a problem, Dain reportedly lured investors to purchase beach-front undeveloped lands with no down payment required. The pieces of real estate are then flipped and quick profits are provided to the purchasers. Dain was reportedly able to convince his old high school football coach, several schoolteachers and others to invest in the lands.
Local authorities have declared the scheme as the biggest real estate fraudulent action in the state, even worse than the more common fake rescue companies that offer help to owners of houses from foreclosure listings. The value of the lands sold by Dain eventually plummeted, with some going down from $400,000 to as low as $20,000.
While Sheriff home sales and foreclosure problems grab the real estate sector's attention, lawsuits filed by the investors against Dain and his associates are continuing to increase in number as most of these investors have already gone bankrupt, according to local reports. Around 500 people are said to be currently in possession of worthless pieces of land sold by Dain.
A total of 285 buyers are currently acting as plaintiffs in a case that is attempting to go after banks that were allegedly involved in issuing loans to people who cannot afford them in the first place. The banks' actions, the plaintiffs have argued, have resulted in massive foreclosures on properties that have been valued beyond their real worth.
According to them, such operations precipitated the foreclosure crisis and the deluge of properties sold at Sheriff home sales in North Carolina. Lawyers for the plaintiffs have also argued that the banks that issued the loans without even considering the credit status and financial conditions of the borrowers should also be held responsible.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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