28 Jul Mortgage Fraud Case Front Page News in Atlanta
The Atlanta Journal-Constitution published a front page article today about a defendant who will be sentenced today for setting up a mortgage fraud scheme that turned around 20% of the homes in a middle class minority suburb of Atlanta into empty shells. The defendant, a 40 year old man named Kevin Wiggins, recruited straw buyers to bid up prices on homes and to induce lenders to write loans that produced cash at closing.
All told, the AJC reports that Fannie Mae and Freddie Mac along with other lenders may be out over $7 million.
A local neighborhood activist described for the paper how mortgage fraud has damaged his neighborhood. High vacancy rates depress property values and create a perception that a particular neighborhood is not safe.
Fannie Mae lists Atlanta as the #2 city for mortgage fraud, trailing only Minneapolis.
Jonathan Ginsberg, Esq.
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