A buyer walks in and says to Mr. Homeseller,

“You haven’t been able to sell your home all these months, right. How about a win-win? I’ll write up an offer for your home that is $100,000 MORE than you are asking. That’s right. At closing I’ll get $90,000 cash back but you will get an extra $10,000 more than your asking price. Sound good?”

Well the buyer and seller are simple defrauding the lender. To make it work, they’ll need more people to cooperate, especially an appraiser to falsify the value of the home.

The Arizona Association or Realtors recently had an article warning members to be on the lookout for this kind of mortgage fraud.

Here is a real life example from a recent grand jury indictment in Kansas City, according to kansascity.com.

The home sellers were only going to make $7,050 more than their asking price. Instead they earned a federal indictment.

The 11 players indicted Thursday, some of whom could not be reached for comment:

Homeowner Philip F. Cardarella, 59, a Kansas City lawyer and husband to co-defendant Katheryn Shields, 60, a lawyer, former Jackson County executive and current Kansas City mayoral candidate.

Raymond W. Zwego Jr., 58, a Kansas City real estate investor. Allegedly masterminded the scam to defraud a mortgage company. Did not return a call seeking comment. In an unrelated federal case, he was convicted of bank fraud in 2001 and sentenced to 10 months.

Larry E. Barshaw, 56, husband to co-defendant Linda M. Thompson-Barshaw, 57. The Kansas City, Kan., residents co-own a remodeling business and agreed to ” buy” the house for the inflated $1.2 million price but not make mortgage payments or live there. Larry Barshaw said Thursday that neither he or his wife had a comment.

Monty J. Kinman, 25, a loan officer in Overland Park.

Rick A. Peterson, 32, a title company closing agent from Lenexa.

Jeremy A. Plagman, 29, an appraiser from Lee’s Summit. Allegedly agreed to inflate the home’s value.

Michael Rodd, 52, a real estate agent from Olathe. Declined to comment.

James E. Coleman, 58, a Kansas City certified public accountant. Allegedly fabricated false paperwork for homebuyers to qualify for the loan. In a separate federal case, he admitted in October embezzling $47,000 from a Kansas City charter school.

James R. Rhoades, 48, a Kansas Citian who worked for Zwego.