Mortgages on Flip Transactions Suspect
A Star Ledger article reports that a federal grand jury is investigating loans made by Crown Bank NA with respect to a property flipping company called Born Asiatic in New Jersey. According to the article, the bank’s compliance officer has testified in deposition that Crown loaned millions of dollars to borrowers with serious credit problems based on inflated appraisals and then sold the mortgages to investors. She has been subpoenaed by a federal grand jury in Trenton, New Jersey regarding the bank’s lending relationship with Maurice Bethea, who operates Born Asiatic. A lawsuit filed last month by US Mortgage Corp, alleges that Born Asiatic used deflated appraisals to lower its purchase prices and then used inflated appraisals to obtain mortgages.
I was given a loan for $1.2M to construct a property in Florida. I was given this loan even though my wife and I had no income. My mortgage was in excess of $8k per month.
I have now foreclosed.
Obviously, I did this under speculation, and as such, I knonw I could have avoided this entirely by not taking the loan. Nevertheless, what responsibility does the bank have for providing such a loan and do I have any recourse?
Wamu Froze our accounts and will not tell us why.
Recently 5 friends and I decided to join our funds to buy repossessed homes in Los Angeles, what a great opportunity. We went to WaMu and spoke to the branch attendant who was very cordial and friendly about our plans. We joined our funds together and on Friday the 16th we went to pull out a cashiers check to go to an action for a home. The attendant at that branch was apologetic when she said that we weren’t able to receive this money. That same day they froze all of our accounts and were not allowed to conduct any business with our money until the 30th of May, this month. In the mean time, my automatic payments are blocked and I’m with out any cash aswell as all of my business partners. By the end of the month they will return our funds and close all of our accounts. No reason has been given other then, we don’t like the way your conducting your business. This is frustrating and degrading.
6 PROPERTIES IN FORECLOSURE. ALL OF MY
NET WORTH.
We have recently been through a very aggravating and questionable application for refinancing for our home. Our broker locked in a rate in November 2009 through JMAC Lending of Huntingdon Beach, CA. The loan was approved contingent upon the appraisal of the property coming in at the acceptable advertised ratio. After two incompetent appraisers were unable to complete an appraisal, finally a third appraiser completed an appraisal whose value met the standards of the lender. Now the lender is coming back with a laundry list of reasons for why they will not honor the terms with which we had already locked (incidentally, the market rates have since risen), when they had already approved all of our financial history. Has anyone else experienced this kind of practice?
well its about time this guys been doing this probably 15 16 yrs