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Predatory Practice Help Needed!!!

Hi there AR Community! I had a panic phone call today from a very nice gentleman who has two investment properties that he purchased two years ago that he is about to miss a payment on. He called me asking if I could help him with a short sale.

When we met at my office I asked him the usual battery of questions I ask to screen to see if the short sale would even be a good option for him. After a few moments I told him that I would first like to try to work out a loan modification to see if we could try to keep his excellent 765 FICO score in tack.

After looking at his paperwork I believe that he has fallen victim to some of the predatory lending practices that have been out there. He is a very nice Hispanic man who speaks broken English and seems to be very trusting. I believe that he was told one thing from the lender and then signed paperwork different then what he was told.

When loan docs they were in English, and the lender was not present. A Mobil notary came to his house and he just signed all the papers where marked for him to sign.

I know that there are people who specialize in this type of situation and I am not sure who to turn to for help. I have gotten authorization letter to speak to the lenders about the modification of the loan - but I would personally like to try to see if something can be done to the lender that did this so that he does not continue to do this to other people.

The gentelman who came into my office showed me a copy of his IRS statements in 2005 (when he purchased the two properties) and he only made $22,000 for the year. One of the homes he bought was about $250,000 and the other was over $300,000 plus he had his primary residence.

It amazes me that a lender will give someone who only makes $22,000 a year the ability to purchase two additional homes at 100% financing and not think he will default.

Can someone advise me the best place to look for help with this matter. I am in Palmdale California

Posted by Donna Oehler " A.V. Foreclosure Specialist" on 07/28/2007 06:49 PM

Comments (6)

short sale, foreclosure, loss mitigation, predatory lending

This post has been included in California Information Los Angeles County, CA Information Lancaster, CA Information

6 Comments on Predatory Practice Help Needed!!!

Its a crime, you just have to prove it. More then likely the lender saw a way to make a fast buck.

07/28/2007 06:55 PM

by Eric Bouler (Prudential Gardner)

I have a feeling the agent and the lender were in it together. The agent was not a local agent - and I had never heard of the lender. I hear about cases like this but this is the first one that I have come across that I actually thought the client was betrayed and not just naive.

Because this guy is so concerned about his credit he has done everything he can to borrow money from family and not he is all tapped out. He was also told misinformation and told they would take his personal residence away from his as well - which should not be true because one home has nothing to do with the others. And from what he is telling me his primary residence is current.

He was trying to do a refi but was not able to do it because the homes have dropped so much in value which in a way is good because now we are dealing with original purchase money as opposed with refi money if we do end up doing a short sale.

07/28/2007 07:07 PM

by Donna Oehler " A.V. Foreclosure Specialist" (Keller Williams Realty)

Donna it was a pleasure speaking with you. We'll follow up as we discussed and in the meantime, I'll see you on the rain.

07/28/2007 07:39 PM

by Ricardo Bueno (World Wide Credit Corporation)

Hey Donna, I work for a company called Classic Property Management. You may have noticed me climbing up the ranks in Palmdale under you! LOL!! Has the gentleman considered renting out his homes in order to help with the payment? Are either of them currently rented? We may be able to help him keep both his credit AND his houses. We are based in Santa Clarita but have branched out into the AV within the past several months. We would love to help! Please feel free to write back or give me a call (661) 219-3016.

p.s. - We do referral fees and if his homes rent and he decides to sell later on, we send him back to you for the sale. We don't take it.

07/28/2007 10:29 PM

by Classic Property Management of the Antelope Valley - Jonathan Mitchell (Classic Property Management)

Hi Jonathan, I have seen you catching up with me - but what is with Don coming out of nowhere and passing you up! He is very techincal with computers and I guess he knows how to work the SEO! :-)

Anyway - one of the homes is currently rented and the other has been vacant for 3 months. Who ever he was getting his advice from told him he would be in trouble if he rented it. He actually had it rented Section 8 and when he knew he was getting into trouble did not renew the contact.

I told him to get another renter but disclosure he was selling the property and that it would only be a month to month rental. The property is in Lake Los Angeles, so the rents will not be high but it is better then nothing.

I will pass on your information although as much as I would like to see him keep the house as a rental his current payments are almost $2,000 and in Lake Los Angeles he will be lucky to get $1300-$1500 a month so he would still be short - but at least it will help a little.

07/29/2007 12:33 AM

by Donna Oehler " A.V. Foreclosure Specialist" (Keller Williams Realty)

Hmmm...you are right. Unfortunately the rent of there is not as high as it is closer to "mainland AV"

07/29/2007 12:08 PM

by Classic Property Management of the Antelope Valley - Jonathan Mitchell (Classic Property Management)