Robert Shumake

The Shumake Relays started out as the vision of a Detroit businessman who was an all city track and field star in his high school and college days

Detroit, MI - Robert Shumake understands the significance and the impact that organized team sports can have on a young person. He attributes some of his many business achievements to the positive experiences he had as a member of Detroit's Edwin Denby High School's track team. As an athlete, Robert saw the big picture and was able to transfer critical life skills from track and field to his real life situations. He learned discipline, dedication, perseverance and teamwork.

During a recent interview, Dr. Robert Shumake announced the planning of the 5^th annual Shumake Scholarship Relays taking place in Detroit on April 25, 2009. Since its inception, the event has raised over $30,000 for scholarships to help over 5,000 young people attend college. Robert said, "Track and field kept me out of trouble as it taught me the discipline to focus on being the best I could be. Now I'm giving back to the community by helping today's young people achieve their dreams."

The Robert S. Shumake Scholarship Relays is designed to become the premier class A track and field competition for high school students across the nation. Its unique model is unprecedented in that is has a dual focus. The Shumake Scholarship Relay competition highlights both athletic ability and academic achievement. In addition to teams demonstrating superior athletic ability during the events, prizes are awarded to the athlete on each team with the highest grade point average.

Robert Shumake is the author of a book entitled, For Entrepreneurs who have Considered Suicide when Business got Tough. Proceeds from the sale of his book go to support the scholarship program. Find out more about the Shumake Relays event at http://www.shumakerelays.com

Contact:

Robert /S. Shumake, Chief Executive Officer

Inheritance Capital Group, Inc
25900 West 11 Mile
Southfield, Michigan 48034

nmccalister@icgreit.com
248-443-0939

Showdown in Motown! Top high school athletes prepare to compete in the 5^th Annual Robert S. Shumake Family Scholarship Relays

Detroit, MI - Track and field teams from high schools all over the world will come to compete in Detroit for the 5^th Annual Robert s. Shumake Scholarship Relays on April 25, 2009. Among the participants in this historic event will be a team from the Bahamas.

Robert Shumake is a former Detroit all-city track star and founder of the Showdown in Motown. Robert ran track in high school and college, which kept him off the streets and out of trouble. In a recent interview, Robert said, "Track and field helped me focus on being the best; now I am giving back to the community by helping other teens compete for scholarships. There are many young people with athletic talent and academic skills who desire a college education but are unable to afford it. I want to see these young people reach their full potential and be successful."

Previous Robert Shumake Relays have received media coverage from NBC, CBS and ABC. Being the largest independently sponsored HS track meet in Michigan, they have received strong political and community support from political leaders in Detroit and Pontiac. Shumake has long been committed to helping the youth obtain their dreams. This unique track and field meet not only awards the winners with medals and trophies but also provides college scholarships to qualified participants.

The Robert Shumake Relays have awarded over $30,000 to over 5,000 young people since its inception. Find out more about this event at http://shumakerelays.com

Contact:

Robert /S. Shumake, Chief Executive Officer

Inheritance Capital Group, Inc
25900 West 11 Mile
Southfield, Michigan 48034

nmccalister@icgreit.com
248-443-0939

Panel of Real Estate Investing Experts Bring in the New Year at the January Mega Evening Event

Detroit, MI - Business owners and Real Estate Investors should have already set their goals for 2009. Now is the time to begin to take action with a new business plan. The real estate market is constantly changing; new techniques for investing are being utilized all the time by the most successful real estate investors in the Metro Detroit area.

The National Real Estate Network is a real estate investing club who meets the 3^rd Thursday of each month. Mark Maupin, founder, will be hosting a panel of the top producing real estate experts in the Metro Detroit area to speak at the meeting in January and answer questions.

Dr. Robert Shumake is a real estate master, noted author, mentor and motivator. He will be the keynote speaker at the event. Robert Shumake wrote the book entitled For Entrepreneurs who Considered Suicide when Business got Tough. He currently owns over 3 million sq. ft. of office and commercial space which he rents to some of the largest corporations in America. Robert will talk about how to make money in our current market, sharing tips on making the best of even the most difficult times. As a special bonus, Robert will discuss the role REITs (Real Estate Investment Trusts) play in our market.

Also joining the panel is Mark Abruzzese, a real estate investor who buys and sells over 20 homes per month in the Detroit market. Mark will share his secrets for success in today's tough market.

Markwei Boye is a CPA who will be sharing tips on reducing your income taxes. Income tax planning is much more effective when done very early in the year, not at the end when it is often too late to change anything. Come and hear Markwei Boye now so that income tax day is as painless as possible April 15, 2010.

Get ready to take action and set new goals in the New Year. Register for the Mega Evening Event meeting on January 15, 2009, from 6pm to 9pm, at the WCCC Western Campus located at 9555 Haggerty Rd; Belleville, MI, 48111. The meeting will be in the lecture room. Call 248-762-0800 or visit http://www.megaeveningevent.com for details.

Mortgage fraud is defined as the intentional misrepresentation of information, by applicants, loan officers or other parties, which is relied on by an underwriter to provide funding for a mortgage loan.

Mortgage fraud is divided into two categories: fraud for property and fraud for profit. Fraud for property or housing involves misrepresentations by the applicant for the purpose of purchasing a primary residence. Although applicants may claim more income and less for expenses in order to qualify for the loan, they usually do intend to repay the debt.

Fraud for profit often involves multiple loans and elaborate schemes generated to gain commissions or proceeds from property sales. This is the category that is of the most concern to law enforcement within the mortgage industry. Inflated appraisals and misrepresentations on loan documents are common in fraud for profit schemes and participants are frequently paid for their participation.

Many reports on real estate and mortgage fraud have been released in the last few years. The downward trend in the housing market will continue to provide further incentive for shady real estate deals and dishonest practices for earning a profit. Michigan is among the top 10 states for mortgage fraud with the largest share of fraud being in the north-central region of the United States.

The subprime lending practice is a major contributing factor to real estate and mortgage fraud. Subprime loans were designed for people with poor credit or limited credit histories. These high-risk loans have contributed to well over 2 million foreclosures filed during 2007. The increasing real estate values lead to relaxed lending practices in the industry and created more opportunities for scam artists to prey on vulnerable homeowners.

Some of the latest mortgage scams include builder-bailout schemes where developers unload excess inventory through financial trickery and foreclosure help scams where distressed homeowners are tricked into signing over the deed to their home. Others include seller-assistance with the use of false appraisals to sell homes and identity theft leading to home equity credit lines being opened and drained.

Mortgage Fraud in a Depressed Market

The increasing interest rates and the declining housing market have contributed to the high foreclosure rate. As homes depreciate and the demand for housing decreased, distressed homeowners are unable to sell their homes for what is owed on them. During declining markets, mortgage lenders are likely to commit mortgage fraud to earn commissions.

The housing market is expected to continue to decline; therefore, reducing the amount of mortgage loan originations in 2009. As values decline and mortgage guidelines get tougher, fraudsters will devise new and improved schemes to exploit the weaknesses in the market.

The downward trend in the real estate market has encouraged mortgage fraud perpetrators to develop and utilize many schemes. The recent rise in foreclosures along with a depressed market, declining values and decreased demand has placed pressure on lenders, builders and home sellers. Fewer loans will be originated as lending practices tighten in response to the subprime lending crisis. Identity theft is a popular tool for use in mortgage fraud. With higher lending standards being enforced, individuals with good credit are valuable to perpetrators; therefore, at risk for identity theft and mortgage fraud schemes.

Illegal Property Flipping

Illegal flipping is a popular scam; here's an example: An investor purchases a property for $20,000 and has the property fraudulently appraised for $80,000. The flipper then sells the house for $80,000 to a straw buyer who is able to get an 80% loan of $64,000. The flipper makes a $44,000 profit, while the home goes into foreclosure. The bank is left with a $64,000 mortgage owed on a home that is worth only $20,000. If the mortgage is FHA insured, the government absorbs the loss.

Builder-Bailout Schemes

Builder-bailout schemes occur when a builder or developer has difficulty selling their inventory, so they use fraudulent methods to sell the homes. This is most common in a depressed market and typically involves builders offering incentives to buyers which are not disclosed on the mortgage loan documents. For example, a builder wants to sell a house for $200,000. He begins by getting an inflated appraisal for $240,000 and finds a buyer. The lender funds the mortgage, believing that the buyer already paid the builder a 20% down payment of $40,000. The builder gets his $200,000 at closing and forgives the down payment; the lender has funded 100% of the home's value. If the home should foreclose, the lender has no equity.

Seller Assistance Scams

Mortgage fraud perpetrators exploit the depreciating real estate market by assisting sellers when they provide buyers to conduct sales that are based on inflated appraisals. In a typical scam, the perpetrator determines the amount the seller is willing to accept and then hires an appraiser to inflate the value. He then finds a buyer who will obtain a mortgage for the inflated amount so the seller gets his asking price and the perpetrator gets the difference between the market value and the inflated value. If the mortgage should default, the lender forecloses, but is not able to sell the house for what is owed on loan because of the inflated appraised value.

Short Sale Scams

With the increase in foreclosures, short sales are a way out for many distressed homeowners. Lenders cut their losses by agreeing to accept less than what is owed to them on the mortgage rather than waiting out the foreclosure process while property values continue to decline. Here is an example of a pre-meditated short sale scam:

The perpetrator finds a straw buyer to purchase a property, providing fraudulent information about the buyer and the value of the house. He may even get the straw buyer to refinance the home to borrow money for repairs; he pockets the money and repairs are not made. He defaults on the payments and the home goes into foreclosure. When the straw buyer shows hardship and informs the lender that he cannot make the payments, he recommends the perpetrator as a buyer who will purchase the home on a short sale. The perpetrator gets the lender to accept less that he would receive in a foreclosure sale, and then sells the property for its actual value, or gets an inflated appraisal to conduct an illegal flip.

Foreclosure Rescue Scams

Escalating foreclosures have provided the opportunity for scammers who claim to be foreclosure help consultants who convince homeowners that they can help them save their homes from foreclosure. Some will agree to take over the mortgage payments while the homeowner rents their own home. Of course, they keep the rent payments but do not pay the mortgage payments. If the home has a lot of equity, the scammer may forge a deed, or trick the homeowner into signing a deed so they can secure a second loan without the homeowner's knowledge, thus stripping the property's equity. Many of these types of scams also involve an upfront consulting fee which adds to the scammer's profit.

During times of a troubled economy, declining values and high foreclosure rates, scammers will develop many new ways to exploit the market and take advantage of distressed homeowners. Real estate professionals and mortgage lenders are paid on commissions; therefore, they are encouraged to commit fraud to earn commissions.