Sherry Freebury's trial on two counts of wire fraud in connection with an alleged mortgage fraud is proceeding in a Delaware federal court.
Freebury is accused of having failed to disclose a $2.3 million loan from a friend when applying for two residential mortgage loans and three refinance loans. The properties were located in Dewey Beach and Hockessin, Delaware. Freebury claims that the money was a gift rather than a loan - in spite of a promissory note bearing an interest rate of 5.9 percent on which Freebury made two interest payments (one for $126,400 and one for $29,400.)
The wire fraud charges were severed from a larger racketeering and fraud indictment against Freebery and Thomas P. Gordon.
Rachel Dollar, the editor of Mortgage Fraud Blog is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors.