Victims of 'Fastest-Growing' Real Estate Scam

News Type: Event — Seeded on Wed Feb 28, 2007 9:41 AM EST

Article Source: local6.com

Central Floridians Falling Victim To 'Fastest-Growing' Real Estate Scam

...Dozens of Central Floridians claim they were lured into real estate deals that left them fighting for their financial lives in what may be one of the biggest scams in Central Florida.... The report featured Joan and Mary, who asked to remain anonymous, and their complaints about Chuck Gunter and Bruce Sarafian. Gunter and Sarafian ran a company called Livewire Properties Inc...

...Joan and Mary were among a group of people who did business with the company. They were paid upfront lump sums of cash in exchange for letting Livewire use their credit to purchase homes... They made up to $7,000 for each purchase Livewire made using their credit...

In the mortgage industry, the process is called straw-buying. "And the straw-buyers, like Mary and Joan, often don't know what they're getting themselves into," .... "I feel like I've been raped," Mary said.

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3.9

{"commentId":558600,"authorDomain":"newsguru"}

newsguru

this takes the cake... if its too good to be true then it usually is... the $7K cash upfront to the victims bought their ignorance... and they paid for it dearly

{"commentId":558600,"threadId":"80577","contentId":"590904","authorDomain":"newsguru"}

1 vote

#1 - Wed Feb 28, 2007 9:43 AM EST

{"commentId":559380,"authorDomain":"remember"}

Ben Hilario-Caguiat

... yikes. scary!

{"commentId":559380,"threadId":"80577","contentId":"590904","authorDomain":"remember"}

1 vote

#2 - Wed Feb 28, 2007 4:54 PM EST

{"commentId":642516,"authorDomain":"fiv3owls"}

fiv3owls

I am one of the renters and I have a list of several more in the area. I am trying to get a class action suit against these people, so, if you are like me and have either invested or are a renter in one of their properties, please contact me @ fiv3owls@yahoo.com.
The more we have to move forward with, the better our chances are of getting these people out of business and restitution for some or all of the money we have paid into our HOMES!
Thank you and I look forward to hearing from you!
Tammy S
Deltona Florida

{"commentId":642516,"threadId":"80577","contentId":"590904","authorDomain":"fiv3owls"}

1 vote

#3 - Sun Apr 15, 2007 2:46 AM EDT

{"commentId":642853,"authorDomain":"newsguru"}

newsguru

Tammy, sorry for your loss. This type of business opportunity is not that uncommon. The only difference is that it is usually done between friends or close associates, which can be trusted more (but not completely). Many of the "no money down", etc real estate courses teach people with poor or no credit to seek to purchase real estate this way, which works as long as everyone involved is honest.

{"commentId":642853,"threadId":"80577","contentId":"590904","authorDomain":"newsguru"}

1 vote

#3.1 - Sun Apr 15, 2007 12:03 PM EDT

{"commentId":1069136,"authorDomain":"kdschroeder25"}

kd-189993

I bought into this company... buying two properties, only to be left holding the "foreclosure bag" without any knowledge of it happening until it was too late. I am now working at getting the properties sold or shorted w/o doing any more damage to my credit.
Had I known about the strawbuyer tactic, I would have NEVER bought. Rent to own by butt! Livewire Proerties scammed us. Bottom line.
Yes, buyer beware, but this scam tactic pulled the wool over everything. Guaranteed 100% by a land trust. Who is going to question that?
Not the average Joe or Jill.

{"commentId":1069136,"threadId":"80577","contentId":"590904","authorDomain":"kdschroeder25"}

2 votes

#3.2 - Tue Oct 2, 2007 5:15 PM EDT

{"commentId":1361812,"authorDomain":"newsguru"}

newsguru

Most don't have the real estate experience to know what a land trust is or its true purpose.

{"commentId":1361812,"threadId":"80577","contentId":"590904","authorDomain":"newsguru"}

1 vote

#3.3 - Mon Jan 14, 2008 1:08 PM EST

{"commentId":1361978,"authorDomain":"stevetherobot"}

stevetherobot

A good rule of thumb when it comes to finance; if anyone says something is "Guaranteed 100%", run the other way as fast as you can.

{"commentId":1361978,"threadId":"80577","contentId":"590904","authorDomain":"stevetherobot"}

1 vote

#3.4 - Mon Jan 14, 2008 1:53 PM EST

{"commentId":1362206,"authorDomain":"newsguru"}

newsguru

That's the only guarantee: that there are no guarantees.

{"commentId":1362206,"threadId":"80577","contentId":"590904","authorDomain":"newsguru"}

2 votes

#3.5 - Mon Jan 14, 2008 2:37 PM EST

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Victims of 'Fastest-Growing' Real Estate Scam

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