I would consult an attorney before you do anything. Contacting the attorney general's office in the state is probably the correct line of action plus a possible lawsuit against some parties.
Litigation is very expensive so it may be cheaper to put this in your file as a lesson learned and move on.
I'm curoius how you were convinced to get involved with this and why you didn't do your own due dilegence?
Assuming that you bought these properties with a FHA or fannieMae loan you also want to contact your lender and ask to be sent through to the folks at HUD that are investigating these matters. Unfortunately this scam is all too widespread. I understand the FBI has several agents assigned to the matter.
WOW, sounds like you bought that property from one of the "Wholesalers" here in Atlanta! lol
Their deals, in GENERAL, sound like this:
230k ARV
20k Repairs
120k Selling
90k Profit
Actually, the house'll be worth about 110-130k, 30k repairs, plus, most of them offer financing, so they'll make an additional 15k there also.
There ARE a couple of them that if you sift through all their listings, you MIGHT find a decent deal, but in general, they just prey on newbies, ripping them off.
Definitely go slow when it comes to spending money on law suits.
1. Speak with an attorney. See how strong your position is.
2. Consult with the larger institutions that appear to have made a mistake. See how they propose to handle it. They might want to clean up the issue with their dime rather then have the issue see the light of day.
3. The attorney general can also offer free advice and might be able to indicate if there are any past actions.
I am not sticking up for slimy rehabbers, but I do not understand.
What promises or statements did the rehabber tell you about the properties?
It sounds like your main complaints are about the appraisal and the condition of the house. Did you ever have the house inspected or did you ever see the houses prior to purchase? Was this rehabber a seller or a partner.
If you got a loan, there must have been an independant appraisal. What did it say? Was there a seller's disclosure on the sell?
I know that you are mad and probably got hood winked, but you are not giving us many facts about the transaction.
United States Attorney's Office
Southern District of Ohio
221 East Fourth Street - Suite 400
Cincinnati, OH 45202
Tel: 513.684.2115
Fax: 513.684.6710
FOR IMMEDIATE RELEASE
CINCINNATI - Federal, state and local agents today executed search warrants to gather evidence as part of an ongoing investigation into mortgage lending fraud in the Cincinnati and Dayton areas. Four locations in Cincinnati and two locations in Dayton were searched.
Gregory G. Lockhart, United States Attorney for the Southern District of Ohio; Kevin Brock, Special Agent in Charge, Federal Bureau of Investigation; Cromwell A. Handy, Special Agent in Charge, Internal Revenue Service Criminal Investigations; Jim Emery, Special Agent in Charge, United States Secret Service announced the search warrants today in conjunction with F. Scott O'Donnell, Superintendent of Financial Institutions with the Ohio Department of Commerce; Hamilton County Prosecuting Attorney Michael Allen, and Montgomery County Prosecuting Attorney Mathias B. Heck.
In Cincinnati, agents searched Charter First Banc at 7151 Dixie Highway, Fairfield; Premier Land Title, 5 Village Square, Glendale; Global Agency Title, Inc., 12 Triangle Park Drive, Sharonville; and Oaktree Financial, also known as TR Funding, Inc., at 526 Nilles Road in Fairfield.
In Dayton, agents began searching the offices of Knab Mortgage, 7700 Paragon Road in Centerville. Agents also searched the Beavercreek residence and vehicles of Randall A. Davidson.
The warrants are part of an ongoing investigation into mortgage "flipping." Mortgage flipping involves someone acquiring an over-inflated loan on a rundown or neglected property, often using fraudulent documents. The conspirators pocket the excess loan money, and the loan soon goes into default. The property goes through foreclosure and remains unoccupied.
"Neighborhoods can become victims of fraud in the mortgage industry," Lockhart said. "Such fraud often prevents neglected properties from being repaired and drives up the costs for honest and hardworking homeowners."
Lockhart said investigators and prosecutors can apply a full spectrum of federal fraud laws to punish criminals and deter those who may be tempted to take part in any type of phony lending scheme.
"Defrauding a financial institution can bring a punishment of up to 30 years imprisonment and a $1 million fine," Lockhart said. "Other federal fraud, lending, conspiracy and tax-avoidance laws can also be brought to bear to fight such a crime."
State regulatory efforts and Ohio criminal law can also impose harsh penalties on those who work to cheat the system, said Lt. Governor Jennette Bradley, Director of the Ohio Department of Commerce. "Today's unified action sends a clear and powerful message to those who conduct fraudulent schemes: You will pay when these schemes are uncovered," Bradley said. She encouraged Ohioans who suspect mortgage fraud to contact the Ohio Department of Commerce Office of Consumer Affairs at 1-866-278-0003.
Lockhart commended the FBI, IRS, Secret Service and state and local officials for their cooperative investigation. He also thanked the U.S. Postal Inspection Service for their participation in the investigation and execution of the search warrants.
For additional comment contact Fred Alverson, Public Affairs Officer at 614.469.5715. The Internet address for the homepage for the United States Attorney's Office for the Southern District of Ohio is www.usdoj.gov/usao/ohs.
i just looked at Google on Mortgage Fraud, and found an epidemic of articles about FBI's looking into mortgage fraud, prosecuting, etc..
Apparently FBI's PR Dept has put out articles nationwide, and they're really hot on trail of scammers/cons in flip transactions.
Moral is be extremely careful and cautious about documenting everything and over-promising NOTHING in any deal involviing sub-to "deed now" deals, new loan app, HUD 1, etc....as anything you do could be set up as FBI sting operation and they'll come after you if you even look like you're scamming somebody.
I would like to get the info you posted and any other info on that guy. I know a whole group of investors that fell into his trap. They need any info you have on him or his company or associates. HELP PLEASE!!!!
I would consult an attorney before you do anything. Contacting the attorney general's office in the state is probably the correct line of action plus a possible lawsuit against some parties.
Litigation is very expensive so it may be cheaper to put this in your file as a lesson learned and move on.
I'm curoius how you were convinced to get involved with this and why you didn't do your own due dilegence?
Assuming that you bought these properties with a FHA or fannieMae loan you also want to contact your lender and ask to be sent through to the folks at HUD that are investigating these matters. Unfortunately this scam is all too widespread. I understand the FBI has several agents assigned to the matter.
WOW, sounds like you bought that property from one of the "Wholesalers" here in Atlanta! lol
Their deals, in GENERAL, sound like this:
230k ARV
20k Repairs
120k Selling
90k Profit
Actually, the house'll be worth about 110-130k, 30k repairs, plus, most of them offer financing, so they'll make an additional 15k there also.
There ARE a couple of them that if you sift through all their listings, you MIGHT find a decent deal, but in general, they just prey on newbies, ripping them off.
Definitely go slow when it comes to spending money on law suits.
1. Speak with an attorney. See how strong your position is.
2. Consult with the larger institutions that appear to have made a mistake. See how they propose to handle it. They might want to clean up the issue with their dime rather then have the issue see the light of day.
3. The attorney general can also offer free advice and might be able to indicate if there are any past actions.
John
[addsig]
[ Edited by reklats on Date 09/20/2004 ]
I am not sticking up for slimy rehabbers, but I do not understand.
What promises or statements did the rehabber tell you about the properties?
It sounds like your main complaints are about the appraisal and the condition of the house. Did you ever have the house inspected or did you ever see the houses prior to purchase? Was this rehabber a seller or a partner.
If you got a loan, there must have been an independant appraisal. What did it say? Was there a seller's disclosure on the sell?
I know that you are mad and probably got hood winked, but you are not giving us many facts about the transaction.
Brenda
Once you get your ducks in a row, file a complaint with the DPBR.
http://www.enquirer.com/editions/2003/07/23/loc_flipping.html
United States Attorney's Office
Southern District of Ohio
221 East Fourth Street - Suite 400
Cincinnati, OH 45202
Tel: 513.684.2115
Fax: 513.684.6710
FOR IMMEDIATE RELEASE
CINCINNATI - Federal, state and local agents today executed search warrants to gather evidence as part of an ongoing investigation into mortgage lending fraud in the Cincinnati and Dayton areas. Four locations in Cincinnati and two locations in Dayton were searched.
Gregory G. Lockhart, United States Attorney for the Southern District of Ohio; Kevin Brock, Special Agent in Charge, Federal Bureau of Investigation; Cromwell A. Handy, Special Agent in Charge, Internal Revenue Service Criminal Investigations; Jim Emery, Special Agent in Charge, United States Secret Service announced the search warrants today in conjunction with F. Scott O'Donnell, Superintendent of Financial Institutions with the Ohio Department of Commerce; Hamilton County Prosecuting Attorney Michael Allen, and Montgomery County Prosecuting Attorney Mathias B. Heck.
In Cincinnati, agents searched Charter First Banc at 7151 Dixie Highway, Fairfield; Premier Land Title, 5 Village Square, Glendale; Global Agency Title, Inc., 12 Triangle Park Drive, Sharonville; and Oaktree Financial, also known as TR Funding, Inc., at 526 Nilles Road in Fairfield.
In Dayton, agents began searching the offices of Knab Mortgage, 7700 Paragon Road in Centerville. Agents also searched the Beavercreek residence and vehicles of Randall A. Davidson.
The warrants are part of an ongoing investigation into mortgage "flipping." Mortgage flipping involves someone acquiring an over-inflated loan on a rundown or neglected property, often using fraudulent documents. The conspirators pocket the excess loan money, and the loan soon goes into default. The property goes through foreclosure and remains unoccupied.
"Neighborhoods can become victims of fraud in the mortgage industry," Lockhart said. "Such fraud often prevents neglected properties from being repaired and drives up the costs for honest and hardworking homeowners."
Lockhart said investigators and prosecutors can apply a full spectrum of federal fraud laws to punish criminals and deter those who may be tempted to take part in any type of phony lending scheme.
"Defrauding a financial institution can bring a punishment of up to 30 years imprisonment and a $1 million fine," Lockhart said. "Other federal fraud, lending, conspiracy and tax-avoidance laws can also be brought to bear to fight such a crime."
State regulatory efforts and Ohio criminal law can also impose harsh penalties on those who work to cheat the system, said Lt. Governor Jennette Bradley, Director of the Ohio Department of Commerce. "Today's unified action sends a clear and powerful message to those who conduct fraudulent schemes: You will pay when these schemes are uncovered," Bradley said. She encouraged Ohioans who suspect mortgage fraud to contact the Ohio Department of Commerce Office of Consumer Affairs at 1-866-278-0003.
Lockhart commended the FBI, IRS, Secret Service and state and local officials for their cooperative investigation. He also thanked the U.S. Postal Inspection Service for their participation in the investigation and execution of the search warrants.
For additional comment contact Fred Alverson, Public Affairs Officer at 614.469.5715. The Internet address for the homepage for the United States Attorney's Office for the Southern District of Ohio is www.usdoj.gov/usao/ohs.
i just looked at Google on Mortgage Fraud, and found an epidemic of articles about FBI's looking into mortgage fraud, prosecuting, etc..
Apparently FBI's PR Dept has put out articles nationwide, and they're really hot on trail of scammers/cons in flip transactions.
Moral is be extremely careful and cautious about documenting everything and over-promising NOTHING in any deal involviing sub-to "deed now" deals, new loan app, HUD 1, etc....as anything you do could be set up as FBI sting operation and they'll come after you if you even look like you're scamming somebody.
hey reklats,
I would like to get the info you posted and any other info on that guy. I know a whole group of investors that fell into his trap. They need any info you have on him or his company or associates. HELP PLEASE!!!!