Florida Man Pleads Guilty in Mortgage Scam

MONTGOMERY, Ala. (AP) - A Florida man has pleaded guilty in
Alabama in a scheme involving the purchase and resale of more than
200 homes in three states.
Federal authorities said 44-year-old Robert B. Guest Jr. entered
the guilty plea to one felony count of conspiracy to make false
statements to financial institutions.
In a news release Thursday, authorities said Guest bought homes
in areas with low property values in Alabama, Florida and
Tennessee. They said he then arranged to resell the homes to an
investor for a substantially higher price. The investor would get a
loan for 80 percent of the sales price, then Guest would
immediately refund the down payment.
That meant the lender was providing 100 percent financing
instead of 80 percent.
Countrywide Home Loans handled most of the loans and could lose
more than $2 million as a result.

(Copyright 2008 by The Associated Press. All Rights Reserved.)