Housekeeping Note
If anyone continues to have a problem accessing these rulings, drop me a line at HomeEquityTheft@yahoo.com and I'll email them to you. Sorry for the inconvenience.
Welcome to The Home Equity Theft Reporter, a blog dedicated to informing the consumer public and the legal profession about Home Equity Theft issues. This blog will consist of information describing the various forms of Home Equity Theft and links to news reports & other informational sources from throughout the country about the victims of Home Equity Theft and what government authorities and others are doing about it.
Source: Struggling OC homeowners to get free legal advice.
(1) Reportedly, Vietnamese, Korean, and Mandarin translators will be on hand at the Garden Grove clinics. You have to call the Asian Pacific American Legal Center to make an appointment.
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For the story, see Homeowners contend courts must review documents.
For earlier stories on Sarasota's foreclosure "rocket docket," see:
For posts that reference the failure of mortgage lenders and their attorneys to file the proper paperwork when bringing foreclosure actions, Go Here, Go Here, Go Here, Go Here, Go Here, Go Here, and Go Here.
(1) Reportedly, Kessler conducted a study of 180 Sarasota County cases and found only one in four had complete paperwork. EpsilonMissingDocsMtg
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For more, see Kirk Homes bankruptcy leaves homeowners in limbo (STUCK IN MIDDLE: With Kirk Homes in bankruptcy, many homeowners can't refinance because of contractors' claims).
For more on homeowners left in the lurch due to actions by builders/contractors, go here, go here, go here, go here, and go here.
Go here for other posts involving legal issues related to title insurance.
(1) Reportedly, Sinnett's situation isn't unique as builders across the country fold or file Chapter 11 bankruptcy.
(2) Reportedly, Sinnett shared documents showing liens totaling more than $140,000. "It's costing us hundreds of dollars per month to not be able to refinance. No mortgage company wants to talk with us about refinancing with all those liens," she said.
(3) If faced with a lien on your home, attorney Mark Nora, vice chair of the Chicago Bar Association's real property committee, provides this advice in the article:
For more, see Elite Lists for Foreclosure Work Under Scrutiny (Firms frustrated over difficulty in qualifying for work on Fannie Mae and Freddie Mac foreclosures; Connecticut attorney general is investigating).
For more on the Connecticut attorney general inquiry on how Fannie Mae, Freddie Mac, and mortgage-processing services company Lender Processing Services Inc. select law firms for foreclosure services, see:
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For more, see ‘Unscrupulous’ loan tactics cited (LBM Financial and owner Mallegni fined $1.1M).
For Judge Rosenthal's recent ruling in this matter, see 219 Forest Street LLC et al v. LBM Financial, LLC et al (6-30-2009).
Go here for Judge Rosenthal's April 8, 2009 ruling resulting in the discharge of one of the mortgages in this case pursuant to the application of Massachusetts "Obsolete Mortgages Statute" - M.G.L. ch 260, section 33.
Go here for other posts on accusations of strong arm money lending practices made against these "hard money" lenders.
(1) According to the story, many of the state and federal lawsuits filed against Mr. Mallegni and LBM also name David G. “Duddie” Massad, chairman and primary owner of Commerce Bank, as a defendant.
(2) An earlier Worcester Telegram & Gazette story (see Strong-arm tactics are alleged - LBM Financial target of complaints) reports, in the following excerpt, how LBM Financial routinely dodges the application of the Massachusetts criminal usury statute in lending transactions by availing itself of a huge loophole in the state's law that allows a lender to charge more than the maximum interest rate, provided that it notifies the state attorney general in writing ahead of time about it (see M.G.L. Chapter 271: Section 49(d). Criminal usury). Keep in mind that actually obtaining approval to make these loans from the state attorney general (or any other government authority, for that matter) is not necessary; you merely have to let the AG's office know, in writing, that you're going to do so.
Go here for an example of an LBM Financial letter informing the Massachusetts AG it will be charging usurious rates.
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For the story, see Man convicted in mortgage-fraud scheme.
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For the entire press release, see Stumped Spokane seniors told they didn’t own their homes (Mobile-home park owner changes sales terms after Attorney General’s Office steps in).
(1) The purchase agreements and promissory notes required new West Prairie Village homeowners to make monthly payments with 9 percent interest amortized at 15 years. Although the agreement referenced a “5-year term,” it wasn’t clear to purchasers that they were responsible for a balloon payment. At the end of five years, owners were told they needed to pay off the remaining balance or renew their contracts at a 12-percent interest rate. rent to own lease purchase option scams yellowstone
For the Oakland City Attorney press release, see Oakland reaches settlement with JPMorgan Chase on eviction lawsuit.
Go here for other posts on illegal foreclosure evictions in violation of Oakland, California's Just Cause Ordinance.
(1) For more from the Oakland City Attorney's Office on these illegal foreclosure eviction lawsuits, see:
(2) According to a San Francisco Chronicle report, Joseph McNulty will pay $3,000 and Percy Cheung of Smart Choice Realty will pay $2,500, said Alex Katz, spokesman for City Attorney John Russo.
For more, see Pasco man spent mother's $150,000 line of credit on drugs, party, deputies say.
Go here, here, here, here, here, and here for other posts on elder financial abuse. FinancialAbuseOfElderlyAlpha
For more, see MCSO: Valley business owner, immigrant stole dead man's ID.
For more, see For sale: Anything and everything inside foreclosed homes (A new trend called foreclosure stripping is against the law, but authorities and banks aren’t stopping it).
For examples of foreclosure stripping ads on Craigslist.com:
Go here for other posts on foreclosure stripping.
(1) Reportedly, Lee County Sheriff’s Office spokesman Larry King said the situation is not as clear as some make it out to be. It’s not always illegal, King said, and suggested new laws may be needed. “The gray area is it’s not officially the bank’s until it’s actually turned over to the bank,” King said. “So what the homeowner does is at their discretion, or something is in place mortgage-wise or statutorily.” In Collier County, Chief Jim Williams, the Sheriff’s Office head of investigations, expressed concern over taking resources away from other investigations, such as those into online child predator schemes, to concentrate on an as-of-yet unexplored area of the law. foreclosure fixture stripping apple
Source: Woman Commits Suicide to Avoid Eviction.
Go here and go here for other posts on incidents during home evictions. DeputyEvictionTheta
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For more, see Judge won’t dismiss City’s suit against Wells Fargo (if link expires, try here).
Go here for Judge Legg's 4-page order.
For earlier reports on this case, see:
(1) In addition to denying Wells Fargo's Motion To Dismiss the lawsuit, the court, in footnote 1 of this order, grants the City of Baltimore's Motion To Amend its Complaint.
(2) According to an earlier report, the two whistleblowers claimed their co-workers targeted black ZIP codes and churches, used software to “translate” marketing materials into African-American vernacular, and referred to subprime loans in minority communities as “ghetto loans” and to borrowers as “mud people.” The loan officers, who worked for Wells Fargo in the Baltimore-Washington area from the late 1990s until 2007, also reportedly alleged that bank employees deceptively steered prime borrowers into subprime loans for their own financial benefit and joked that they were “riding the stagecoach to Hell.”
Source: What if your apartment complex forecloses? New law may ease the big surprise.
(1) In judicial foreclosure states, basic foreclosure law says that unless all parties holding legal interests in real property (including leasehold interests, liens, etc.) that are subordinate to a mortgage in foreclosure are served with notice of the lawsuit, those subordinate interests are not cut off and will survive the foreclosure action. For this clerk of the court to decide not to issue summonses to tenants in possession of property in foreclosure actions (and thereby abridging their due process rights) to save money seems pretty ridiculous. I also find it hard to believe that the clerk's attorney advised him to do this.
For more, see Hearing set to certify Chinese drywall class.
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For more, see Clearwater apartments condemned (County: homes are hazardous).
See also:
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For more, see Local Man In the Doghouse In Housing Rental Scheme (Accused Fake Landlord goes to Trial in Suffolk).
Go here, go here, go here, and go here for posts on phony landlord rent scams. KappaPhonyLandlordScam
Source: Man receives deferred sentence in obtaining money by false pretense case.
Go here, go here, go here, and go here for posts on phony landlord rent scams. KappaPhonyLandlordScam
For more, see IMPD: Ex-staffer is arrested in fraud (Police say forged signature was attempt to avoid foreclosure).
For follow-up stories, see:
For more, see Cape Coral man gets 22 years for fraud (Ran $30 million real estate scheme).
For the press release from the U.S Attorney (Tampa/Fort Myers), see Cape Coral Man Sentenced for Role in $30 Million Mortgage Fraud Case.
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For the entire Ohio AG press release, see Investigation of Alleged Mortgage Fraud Scheme Leads to 83-Count Indictment.
Go here for the indictment.
(1) Benjamin Tubbs, 49, of Pickerington, Kevin Murphy, 50, of Blacklick, and Karl Mullins, 33, formerly of Columbus and now residing in Florida, are alleged to have acted as the mortgage brokers and orchestrators of a scheme to buy and sell houses at highly-inflated prices and to falsify loan documents in order to skim ten of thousands if not hundreds of thousands of dollars from each sale. Also indicted are: Cynthia Underdew, 53, of Columbus (loan officer and mortgage loan coordinator); Karen Axline, 48, of Granville (operated the now-defunct Granville Title Agency); Kevin Gray, 48, of Reynoldsburg; Nina Masseria and Tim Arrington of Carriage Trade Realty (real estate agents); appraisers Joseph Colegrove and Scott Walisa and assistant appraiser Terri White; Earron West, 38, of Columbus (loan officer); and Nina Dearing, 29, of Columbus.
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For more, see Much-admired city initiative saves 1,400 homes from foreclosure.
See also, The Philadelphia Inquirer: A milestone for mortgage-foreclosure diversion program.
For the entire announcement, Nevada Supreme Court Adopts Rules For Foreclosure Mediation Program.
For the story, see Judges, Non-Profits Offer Foreclosure Help.
For the story, see Attorneys advise clients to stay in their homes.
(1) A legal document known as a Motion to Enlarge Time is often used by homeowners and their attorneys to request additional time to file an official response to a foreclosure lawsuit filed against a homeowner. Go here for a sample of a Motion to Enlarge Time. This request for additional time should be filed within 20 days of being served with a foreclosure lawsuit.
Go here for other links to Sample Foreclosure Defense Legal Documents that some use when fighting foreclosures. EpsilonMissingDocsMtg
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For the story, see BofA wording may cause more foreclosures.
(1) According to the story, at issue is a sentence in Bank of America’s agreement that says its mortgage servicing arm “and/or its investors may pursue a deficiency judgment for the difference in the payment received and the total balance due unless agreed otherwise or prohibited by law.” That means Bank of America could pursue a court order against a homeowner after the short sale is completed.
Source: Brooklyn Prosecutors Responding to Increased Gang and Real Estate Crime.
(1) Using the term "sucker" in a way that could reasonably be construed as an indirect reference to the victims of deed scams appears to be a rather poor choice words on the part of the Brooklyn DA. DeedContraTheft
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For the entire New Jersey AG press release, see Attorney General Announces Mortgage Fraud Indictments.
For more, see Judge's ruling in mortgage-lending case is days away (City's lawsuit advancing against Wells Fargo at stake).
See also, The Maryland Daily Record: Wells Fargo awaits ruling in Baltimore reverse-redlining suit.
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For the whole story, see US High Court: States Can Probe Natl Bank Lending (subscription required; if no subscription, try here, then click link for the story).
For the court's ruling, see Cuomo v. Clearing House Assn., L.L.C., Docket # 08-453 (June 29, 2009).
(1) According to the story, former New York Attorney General and Governor Eliot Spitzer launched the probe, saying mortgage data showed black and Hispanic borrowers received a larger percentage of high-interest home loans than white borrowers. Spitzer asked several banks, including Wells Fargo & Co., JPMorgan Chase & Co. and Citigroup Inc., to voluntarily produce non-public information about their mortgage-lending practices in New York. In response, the federal Office of the Comptroller of the Currency and a consortium of national banks each sued to block Spitzer's investigation.
(2) Justice Scalia was actually the swing vote in this ruling, aligning himself with Justices Stevens, Souter, Ginzburg, and Breyer, the four justices on the court widely considered to be politically "left of center". DiscriminationPredatoryLendingAlpha
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For more, see Attorneys advise clients to stay in their homes.
For a story that reflects the massive budget cuts and personnel layoffs being imposed on court systems throughout Florida, see The Florida Times Union: Florida court clerks face stiff budget cuts (A new law slashes budgets, leading to some counties' layoffs and office closings):
(1) Go here for links to Sample Foreclosure Defense Legal Documents that some use when demanding that lenders produce the proper paperwork (ie. promissory notes, etc.), and who are otherwise fighting foreclosures. EpsilonMissingDocsMtg
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According to the County Attorney press release, the investigation revealed that Singramdoo used several methods to accomplish her thefts:
For the entire press release, see Lakeville Woman Charged in Thefts Exceeding $220,000.
For the criminal complaint filed in this case, see State of Minnesota v. Singramdoo.
Go here, Go here, Go here, Go here, and Go here for other stories of trust account / escrow account theft of funds. EscrowRipOffKappa
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For the entire Ohio AG press release, see Columbus Home Improvement Company Sued for Fraud (Consumers report losing tens of thousands of dollars).
For the lawsuit, see State of Ohio v. Premier Design Consultants, Inc., et al.
For more on homeowners left in the lurch due to actions by builders/contractors, go here, go here, go here, go here, and go here.
(1) According to the press release, the lawsuit charges Premier with several violations of Ohio's Consumer Sales Practices Act including failing to deliver, performing shoddy work, making false claims in advertisements and failing to honor warranties. It also charges the company with violating the state's Home Solicitation Sales Act [sections 1345.21 to 1345.28 of the Ohio Revised Code], which gives consumers three days to cancel contracts they sign in their home. In the suit, Cordray asks the court to hold Premier responsible for reimbursing consumers and to assess a $25,000 civil penalty for each violation of the law. StiffingContractorsTheta
For the story, see Free Foreclosure Counseling To Go Into Effect July 1st.