Special offer

HELP!! my client has been scammed and he can't get up ~ please help ----

By
Mortgage and Lending with Apex Home Loans NMLS #369577

I received a panic telephone call today. It started with, " I was told to call you but I decided to go with someone else"...   Ok - we have all that one before.........

This guy apparently had friends who were involved in purchasing raw land in Florida, Cape Coral to be exact. According to my client, he and his wife had done their due diligence, researching all hours of the night before deciding on jumping into the investor bandwagon. Besides, their friends had done this and everyone seemed to be making money. That is who recommended this - well  a friend of a friend type of deal anyway.....

It was all laid out on the table. The builder and the mortgage company were involved with the Bank - XXXXX Florida Bank - and they had made investors lots of money. They even had testimonials! The land would be purchased for $115,000. The bank would issue a land -> construction -> to permanent loan under the following terms. There would be a 15 month deferred period where they would collect interest only on the amount drawn. The total loan amount when completed would be $396,000, which would balloon in 24 months. The total package would be worth well over 500K...It was a package deal where the builder and bank supposedly had a track record of successfully making investors money using the same method as before. 

This is where it gets a bit confusing. Apparently the builder has had trouble obtaining certain permits, even though construction was set to start directly after closing. Well, 15 months later construction has yet to start and my client still owns nothing but a piece of land. Because of the trouble, during these 15 months, XXXXX Florida Bank has told my client that he did not even have to make the interest only payments until everything has been worked out and construction has begun. So as of yet, my client has not paid one dime towards this proposed money making project. The credit report shows like this.

XXXXX FLORIDA    
BANK

05-07
01-06
396000
174772     826 M-1
CURRENT
16 00 00 00

CONSTRUCTION LOAN 15 MON
PRINCIPAL DEFERRED/INTEREST
PAYMENT ONLY
Activity: LACT 05-07
Pymt Hist: 05-07 1111111111111111
Add'l Dates: LACT 05-07

looking at this all is good right? ---  well.......  my client gets a call from the bank a few weeks ago notifying him that the loan will balloon the end of September, and because he has not built the house yet - or even broken ground on construction - they are calling the loan. They are saying the payoff is now the $174,772 figure listed above, not the 115K they purchased the land for. Ok - still with me?

My client says no problem, since he got such a great deal on the land, he will just obtain a new loan and sit on it a while. The first appraisal comes back a few weeks ago - $50,000. In shock, my client orders another appraisal - this one comes in at $25,000.......

The bottom line now is, this bank in Cape Coral, Florida now wants 174K by the end of this month or they will FORCLOSE! No warning, no nothing..... My client is receiving threatening phone calls daily regarding this situation. He lives out of state and when contacting Florida attorneys, they all want money up front in order to retain him. 

This guy has 700 credit scores, has never missed a payment on his entire credit history, has loads of liquid assets and has been on his job 22+ years. He has just $3500.00 total out of pocket money invested in this deal.

Ok fellow Rainers -  what advice do you give this person?????? 



Posted by

 NMLS ID - 369577

MORTGAGE ADVICE - PROBLEM SOLVER 

High Quality Advice - Proven Results

             

contact me directly - 301-332-9540

email me directly - lewisporetz@gmail.com 

"I am not in the mortgage business - I am a highly skilled mortgage banker who is in the customer service business."

 

Comments (10)

Danny Thornton
R & D Art - Knoxville, TN
WordPress Guru
It sounds like Mortgage Fraud. I would have him contact the BBB, the News-Press, the TV stations, and what ever else it takes to make some noise.
Sep 26, 2007 11:08 AM
Maureen Francis
Coldwell Banker Weir Manuel - Bloomfield Hills, MI
Coldwell Banker Weir Manuel
Wish that he purchased it in an LLC or something.  I don't see this one having a happy ending.
Sep 26, 2007 11:08 AM
Anonymous
Blogger To Be Named Later

Lewis, I don't have any particular divine wisdom with this example ... just an observation in general.

I approach these "offers" with healthy skepticism: If it looks like such a great, can't-miss deal, why am I getting the opportunity? The developer has cousins and brothers and high school chums. Wouldn't they get first preference to hit a home run by getting in on the ground floor? What was that song by Glenn Frey, Smuggler's Blues -- "the lure of easy money has a very strong appeal." Good luck to your friend but this smells of burnt toast.

Sep 26, 2007 11:10 AM
#3
Lewis Poretz
Apex Home Loans - Annapolis, MD
Business Development Manager

Of course it smells like burnt toast.....  this guy made an obvious mistake - siding with wisdom from a "friend"  and to top it all off... he works in the medical field, treating dieing patients daily......

It just ain't right!!! 

so now i am gonna sit back and collect everyones recommended course of action -  i expect this to be a heavily participated blog and promise to keep everyone updated as to the outcome.....

Sep 26, 2007 11:15 AM
Christopher Myers
Orlando Property Group - Orlando, FL
Greater Orlando and Central Florida Real Estate
Buyer beware.  It doesn't look good for him from what you've said.  Attorney sounds the way to go.
Sep 26, 2007 11:22 AM
Sarah Nopp
South Sound, WA
He NEEDS to contact the Loan Fraud department at the State of Florida. I do not know what it is called, but here it is the Department of Financial Institutions. And call the Sheriff in the county and see if they have any idea who this Builder is.
Sep 26, 2007 05:06 PM
R Fitz
CCL - Denver, CO
If he is looking to buy a home or do any financing on anything have him do it right now.  Let the bank take this bad loan back on there books.  This guy will have an easier time rebuilding his credit over the next 3 years then he would recouping that big of a loss.
Oct 07, 2007 04:53 PM
Brandon Hoffman
RE/MAX Connected - Irmo, SC
I'd tell him to call an attorney and ask about potential fraud and I'd tell you not to give any other advice because it could put you on the line. I mean that in the nicest way possible and I wouldn't say it quite like that, but I may as well be blunt here.
Oct 07, 2007 05:56 PM
Kate Bourland
Marketing with Kate - Redding, CA
Onlilne Marketing Mobile Marketing

I think that this is beyond a mortgage guys scope.  This sounds like major mortgage fraud that involved multiple people, including the appraisor.  An attorney is the only way to go, unless he can negotiate a new loan with the bank.  What information is he getting from his "friend"?

 

Oct 07, 2007 06:17 PM
Seth Callen
Farmers Insurance - Lawton, OK
He should weigh the cost of fighting this agains what it would cost to rebuild the credit after it foreclosed.   I think he could successfully fight it, but at what cost?
Oct 08, 2007 02:25 AM