Any Real Estate/Tax Attorneys here?

[fubar1]

http://www.detroitnews.com/article/2...ETRO/301290394

I read this article about a Minnesota Supreme Court Justice getting busted for real estate fraud. Evidently she applied for a short-sale and it was granted with $600,000 of debt forgiveness, but they discovered during the process she had transferred a vacation home in Florida to a relative to in order to conceal assets. Looks like she'll have to pay some restitution and possibly face jail time.

Question for real estate/tax attorneys….how do you think they caught her? Did the lender granting the short sale go back and check property records in the state of Florida to find the transfer? Did this transaction show up on a credit report during a routine check by the lender granting the short-sale?

Given she's a Supreme Court justice I doubt she does time, but this is really fascinating.

[gregthegator]

I would bet that a "SUPPOSED" friend got a LITTLE bit envious or jealous...and rat-finked her out

or perhaps just A friend of somebody she helped rule against in a case.

or the tax return...IRS is becoming all "brown shirt" powerful...

[rpmGator]

Any title change is public record so if any search is done the transaction will show up. It would have worked in the old days before computers, but not now.

[The_Ultimate_Gator]

I would guess that someone at the lending bank got suspicious and looked into it.

[gatormoe1]

So fubar, how big is your vacation house that you transferred over?

[gator7_5]

Originally Posted by gregthegator

I would bet that a "SUPPOSED" friend got a LITTLE bit envious or jealous...and rat-finked her out

Although it is funny, it's probably what happened.

[gtr2x]

Originally Posted by gatormoe1

So fubar, how big is your vacation house that you transferred over?

My thought exactly.

Actually, have a friend that has put all other assets in mom's name in anticipation of an eventual foreclosure. Guess he figures he will get it all back after mom passes. Helps being the favored son.
Of course it has been a couple of years and he still hasnt heard from the bank regarding the debt. Sounds unethical to me, but doctors and the Trumps of the world have been doing this stuff legally for years. Surprised she wasnt smarter.

[oragator1]

If it was on her credit report (payments in the last 7 years) she would have been caught by the underwriter. Sometimes if any sort of fraud is suspected the underwriter or someone else will also do a lexus nexus search which would have found it too. And lastly, if she did the loan with the same company her SS# would still be in their system, even if the loan was paid off, oh and if they pulled tax/bank records for the last couple of years and she had to show it there for any reason she would have been busted.

[fubar1]

Originally Posted by gatormoe1

So fubar, how big is your vacation house that you transferred over?

Character assassinations must be free today.

I wish I had enough money to have bought a vacation home in Florida or in any other state. Or had $100s of thousands of dollars I could move around.

I'm just curious how someone like this, a high level member of the justice system got tangled up in this. You'd think she would have a very good lawyer who would her advised her differently.

[Billygator76]

I don't think the judge asked for advise like that; probably a private decision made without asking anyone but hoping she could get away with hiding the fact. Some judges aren't really that smart, as evidenced by that act.