I've been scammed, need advice

User login

Member Directory

Location:

County:

Categories:

Enter the code below:

I've been scammed, need advice

Submitted by LisaG on Thu, 04/10/2008 - 10:56am.

I’ve been scammed -And needs some advise. I worked for a builder in Wisconsin who was facing some hard times in the building industry. He had been put in front of a local mortgage broker who was able to transfer a few of the houses out of the business name and into his personal name to get some instant equity out of the house to get some extra cash. That’s were he got the idea to get me involved since I HAD a credit score of an 800. I had no problems getting a loan in my name. With the mortgage broker working her end to put the fraudulent docs together and using stated income on my behalf and not having to really show my income or tax returns, I signed over a total of 3 houses in my name ( I was told that the business would make the payments on the houses until they were sold). Well the company went out of business due to lack of money. Needless to say I am now facing foreclosure. One house alone is on the market for $820K and the other is a Flip it house and on the market for $170K - They have been on the market since they were in my name. There is no way I could have ever afforded these payments - Can’t the bank see that and smell a rat anyways. Well to make a long story short 1 out of the 3 houses has been sold but the other 2 are now in foreclosure since I would never be able to make the monthly payments, nor did the owner of the business as promised. I seem to be in a rock and a hard place. I did hire a civil lawyer who was perhaps not well rounded in the end of things and did advise me to some extent but to only cost me more money - but I’m still in the same position. I own my own house and am afraid to sell it - or do anything with it until I know what the out come of this other situation brings me. I can't stand the fact that I would lose my personal house to this scam. Should I go to the authorities and turn in the mortgage broker who made the fraudulent loans? or hope for the best and try to sell the properties and hope that I can at lease work for a short sale? Also If they go to auction and have to pay for the difference the bank gets this could leave me to no choice and I still may have to declare bankruptcy - Would I still be able to keep my house that my payments are current with? If I do file bankruptcy what will happen to my house. I have at least 30 to 40K of equity in it. I heard that if I list the houses as rental properties that I may have better chances of not taking such a loss. Personally I would love to turn in the mortgage broker and see that they get caught for doing this but am also afraid of getting involved with the federal government. Any thoughts for me and my situation — I’m guessing I should seek an attorney to get more advice on foreclosure?

Comments:

Submitted by admin on Thu, 04/10/2008 - 11:10am.

Hi Lisa, Let’s be clear up Hi Lisa, Let’s be clear up front - you took part in the fraud. You signed the docs. You knew they were having trouble selling the homes - otherwise the builder would not have needed you. You knew you personally couldn’t afford the payments. You knew the docs were fraudulent. You figuratively provided and drove the getaway car for a bank heist. Why you did this is my primary question after reading your post, but in any case you should think through the ramifications of going to the bank or the authorities in this light. So what to do? Clearly your credit is already in trouble. Unless you can afford to make all the payments until you raise the cash or the market improves enough for a full value sale that will payoff the loans in full I imagine there is little chance of avoiding foreclosure. Normally I’d recommend that you try to negotiate a short sale. But since you have equity in your personal home, this is very unlikely (the bank will likely want a note against your house - they like this because it is easier to collect on a note than a judgment). Also in a short sale you will have to provide them detailed documentation of your financial status - which may only encourage them to seek a deficiency judgment. A deficiency judgment is a lien on you and all of your property for a specific amount. The good news is that lenders in Wisconsin do get an incentive not to seek a deficiency judgment in foreclosure. If they waive the right to a deficiency judgment it cuts the redemption period during foreclosure in half. As such you need to monitor your foreclosure case very closely to see whether or not they will be seeking a deficiency judgment. If not, you may just want to let the foreclosure happen. It will damage your credit significantly, but that is a small price to pay for having taken part in a fraud. If they do seek a deficiency judgment then you should do everything you can to get those homes sold at the highest price possible. You will get them sold for more than the bank will - and in the end it is your money. As for bankruptcy, the laws changed a couple of years ago, and if you have income and/or assets you may find it hard to wipe out a deficiency judgment. You will likely have to make payments on it for 5 years even if you get most of it wiped out. If you are thinking about selling your house, you should get it done now before there is a judgment against you. It will be harder for them to get cash out of your pillow, then your house. But if you want to stay in your house, do. Judgments are difficult to collect and they have to be refiled every 7 years. Finally keep in mind that I’m an investor in California and this is just my humble opinion, so definitely consult a Wisconsin attorney versed in foreclosure law, bankruptcy, lending law and fraud. Best Regards.

Submitted by Anonymous (not verified) on Wed, 05/28/2008 - 11:38pm.

We are in California We are in California and got a loan from Downey Savings through a mortgage broker.It was a loan that we stated our income to qualify,and started at 1400$ a month and is now 2800$ interest only.I have been looking over the documents that we signed for the loan and can't believe the numbers that are on there.In our enthusiasm to obtain a house we allowed the broker to mis state our income.He did promise to do the refinance at no charge,but with the pre payment penalty included by the time it had expired we were unable to think about refinancing.For example my wifes business at the time made $4000 a year and he put it down as a month.Downey didnt need to have CPA numbers on her,only a list of 3 people she had sold to.He changed my job title on the application because it was not in line with the number he needed to qualify us for the loan.We are going under with this house is there anything I can do?

Submitted by bob_1 on Wed, 05/28/2008 - 11:46pm.

Anonymous - We just

Anonymous -

We just closed a short sale with Downey and know how they work.

Contact me at 949-600-5404 or bob@inspiragroup.com and I will review your situation. I cant change what has happened in the past, however, we can put a forward going game plan together. If it makes sense to complete a note modifiation and the lender agrees, then we'll assist you with that. If it makes sense to complete a short sale we'll get that done for you. Bottom line is experience counts. I am the broker owner and have 20 year experience and treat my customers like they are my family. The money is secondary.

You say you are "going under" - that isnt fun. Lets review your situation and put together a proactive gameplan to get you over this.

Where is your home located? how much is it worth? is your loan purchase money (non-recourse) or a refinance? Lots of other questions, lets chat and figure this out.

BOB

Submitted by Anonymous (not verified) on Tue, 06/17/2008 - 7:49am.

I agree with reply post # 1:

I agree with reply post # 1: You participated in the fraud and you may have a much bigger problem than losing your house. You could go to prison.

You need to speak with an attorney, in depth, about all of the particulars. Reading through forums can give you a lot of information, but you have already shown poor judgement and I suspect that you are looking for the answer you would like to see rather than the truth.

Face up to it and pay the consequences.........foreclosure is a whole lot better than going to prison for fraud.