San Diego’s own on-line newspaper, www.voiceofsandiego.com , has broken still another real estate scam, and this time Escondido was in the scam.
Jim McConville, an aging con man from San Francisco (with a criminal record) “rented” people’s “identities” for use of their credit.
He would meet with a few upper-class matrons in some up-scale neighborhood and ask them for their identity to purchase a condo, because, he said, he wanted to own more properties than the law allowed.
He offered to pay participants $10,000 just to use their good credit. Although their name would be on the mortgage, he promised to pay the mortgages.
Using forged documents, and compliant lenders and real estate people, he ended up owning 81 condos in Escondido and San Marcos – but he bought them with the help of scam appraisers for about twice what was their actual value.
That put about $120,000 in Jim McConville’s pocket each time, and he collected a few months rent, never paid the “investors” their $10,000 – nor did he ever pay the mortgage payments on the condos.
That leaves the “investors” with mortgages much higher than the actual value of the condo, rents far too low to meet the mortgage…many are defaulting, harming not just the credit of “investors” but the mortgage holders who were defrauded by fake documents…
Those 81 units have not even come on the foreclosure market, but they will arrive in bunches, further harming the market, and leaving still more toxic loans for the government to solve.
Scammers always hurt the “investor” but this time they also harm the bank, the banking system, and eventually the taxpayers!