August 30, 2016

Foreclosure Rigging

It seems that people will always find a way to cheat or rig something.    You would hope that when a home goes up for foreclosure that the bidding would be fair.

What happens when “friends” get together at a foreclosure sale and set out to get the price below what would normally be paid for a home?   People eventually get caught.

Recently the Department of Justice (DOJ) found that Otto Gogolin admitted that he agreed not to bid at some sales so that the price would be best for his “friends”.   Payoffs were given among this group spanning from 2008 – 2011.

At this time, more than a 100 defendants in total have been indicted or have pleaded guilty for rigging foreclosure sales.

Eventually, dishonest people get caught – even years later and their lives are ruined when they try to ruin others lives.

Others go so far as to tell honest bidders to stay out of their county.   There have been reports that the foreclosure riggers inform the honest bidders where they can go but to stay out of this area’s bidding.

Basically honest bidders get squeezed out of the bidding.   Dishonest bidders will even bid higher than you – just so you don’t win at all and discourage you from coming again to bid.

We can only hope that the DOJ puts in checks and balances to stop this.    Maybe when a few go to jail, others will get scared enough to play it straight.