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Michigan Class Action Lawsuit Alleges Inflated Appraisals

Tuesday, March 21 2006 06:03

Blaise A. Repasky has filed a civil class action lawsuit in the United States District Court for the Eastern District of Michigan against:

Real Financial, L. L. C.

Sheldon Lubin

Robert Willey

A and S Appraisal Group, Incorporated

Michael Stacey

First Mortgage Fund, Incorporated

Exact Title, L. L. C.

AMC Mortgage Services, Incorporated

American Home Mortgage Acceptance, Incorporated

Oak Street Mortgage, L. L. C.

HSBC Mortgage Services, Incorporated

America's Servicing Company

American Home Mortgage Corporation

Select Portfolio Servicing, Incorporated

Argent Mortgage Company, L. L. C.

Ameriquest Mortgage Company

Chase Mortgage Services, Incorporated

The complaint alleges that in September 2004, Repasky received a telephone call from Lubin, senior VP of Real Financial, informing him of the availability of three home in Detroit, Michigan for purchase at a good price that could earn Repasky substantial profits. The homes were located at 15230 Evanston, Detroit, Michigan, 4417 Balfour, Detroit, Michigan and 5026 Philip, Detroit, Michigan and were all owned by First Mortgage Fund, Inc. According to the complaint, Willey of A&S Appraisal Group, Inc. submitted inflated appraisals on each of the properties and plaintiff purchased the properties at inflated values. Each of the three property purchases were closed by Exact Title. After entering into purchase contracts on the three initial properties, Lubin again contacted plaintiff and informed him that there were six more well-priced homes in Detroit that would produced substantial profits for plaintiff. The homes were located at 11523 Lakepointe, Detroit, Michigan, 14840 Fairmount Drive, Detroit, Michigan, 18668 Fairport, Detroit, Michigan, 5903 Lakepointe, Detroit, Michigan, 5953 Beaconsfield, Detroit, Michigan, and 9920 Beaconsfield, Detroit, Michigan. According to the complaint, Willey of A&S Appraisal Group, Inc. submitted inflated appraisals on each of the properties and plaintiff purchased the properties at inflated values. Each of the additional six property purchases were closed by Exact Title.

The defendant lenders are either the original or secondary mortgage holders on the properties.

Lubin told the Detroit News that Real Financial acted as the mortgage broker, that allegations of fraud and conspiracy are false and that First Mortgage Fund buys foreclosed properties at rock-bottom prices and often spends significant amounts fixing them up.

The complaint asserts causes of action for violation of the Racketeer Influenced and Corrupt Organizations Act (RICO) as against Lubin, Real Financial, Willey, A&S Appraisal Group, Stacey and First Mortgage Fund; Conspiracy to violate RICO; violation of the Michigan Consumer Protection Act; Fraud and Misrepresentation as against Lubin, Real Financial, Willey, A&S Appraisal Group, Stacey and First Mortgage Fund; Civil Conspiracy

Details on each of the properties purchased

15230 Evanston, Detroit, Michigan was purchased by First Mortgage Fund on September 14, 2004 for $28,000, appraised by A&S on November 8, 2004 for $100,000 and purchased by plaintiff on December 10, 2004.

4417 Balfour, Detroit, Michigan was purchased by First Mortgage Fund on July 19, 2004 for $70,350, appraised by A&Son August 25, 2004 for $135,000 and purchased by plaintiff on November 12, 2004 for $125,000.

5026 Philip, Detroit, Michigan was purchased byFirst Mortgage Fund on September 12, 2004 for $40,000, appraised by A&S on October 19, 2004 for $110,000 and purchased by plaintiff on November 12, 2004 for $110,000

11523 Lakepointe, Detroit, Michigan was purchased by First Mortgage Fund on August 31, 2004 for $60,000 appraised by A&S for $125,000 and purchased by plaintiff on November 12, 2004 for $125,000

14840 Fairmount Drive, Detroit, Michigan was purchased by First Mortgage Fund on July 28, 2004 for $55,000 appraised by A&S for $110,000 and purchased by plaintiff on November 12, 2004 for $110,000

18668 Fairport, Detroit, Michigan was purchased by First Mortgage Fund on November 12, 2004 appraised by A&S for $92,500 and purchased by plaintiff on November 12, 2004 for $92,500

5903 Lakepointe, Detroit, Michigan was purchased by First Mortgage Fund on June 30, 2004 for $39,000 appraised by A&S on August 25, 204 for $135,000 and purchased by plaintiff on December 10, 2004 for $125,000

5953 Beaconsfield, Detroit, Michigan was purchased by First Mortgage Fund on June 30, 2004 for $39,900 appraised by A&S on November 3, 2004 for $127,500 and purchased by plaintiff on November 12, 2004 for $125,000

9920 Beaconsfield, Detroit, Michigan was purchased by First Mortgage Fund on August 6, 2004 for $60,000 appraised by A&S on August 25, 204 for $125,000 and purchased by plaintiff on December 10, 2004 for $120,000

66 comments

  • Comment Link Roy Saturday, February 18 2012 21:28 posted by Roy

    Just reading through some of the comments shows me the average citizens can't handle negotiating with their mortgage holders. Hiring reputable third party consultants is the only way to make sense of some of the stupid comments made here.

  • Comment Link Flavio Tuesday, December 27 2011 18:49 posted by Flavio

    reminds me of the s&l fiasco of the mid 80's...

  • Comment Link Spudknife Monday, September 26 2011 16:36 posted by Spudknife

    "Inflated Appraisal" is redundant. All appraisals are inflated. It's pure racketeering and there is no sleazier industry.

  • Comment Link KANEASHA GRIFFIN-DAVIS Wednesday, May 25 2011 13:16 posted by KANEASHA GRIFFIN-DAVIS

    Hi I woul really love to get involved in this class action suit, I started a modification with Chase in the summer of 2009 which I made every payment during that time from August - January of 2010 a collections representative contacted me mid February and set up payment arrangements due to the fact that I was denied the loan mod. so I then paid about $700 and she stated that the remaining balance that was owed would be attached to my principle when i went to make the payment someone from the forebarance department put me on this plan where I had to make a huge down payment and pay $120 extra to my monthly mortgage amount until I came up with a settlement amount after getting several individuals involved (the congressman and an attorney) they reversed my chargeoff but still DID NOT put any of my payments towards my loan and it showed up on Chase’s payment history of my account that all my payments went to corp. advances. The excutive office of Chase contacted me and my attorney and told me to begin another modification process in October 2010 and from there is when the forbereance department got it again and charged my loan off again and then added an extra 10,000 I have proof to show that they sent my payment back once to where I had to send it again totaling in about $800. My attorney advised me to put my mortgage payments in escrow until we figure out what is going on due to the fact that they had sent that payment back and to my understanding the forebance department is asking for 12,000 to buy the home???

  • Comment Link KANEASHA GRIFFIN-DAVIS Tuesday, May 10 2011 08:31 posted by KANEASHA GRIFFIN-DAVIS

    Hi I woul really love to get involved in this class action suit, I started a modification with Chase in the summer of 2009 which I made every payment during that time from August - January of 2010 a collections representative contacted me mid February and set up payment arrangements due to the fact that I was denied the loan mod. so I then paid about $700 and she stated that the remaining balance that was owed would be attached to my principle when i went to make the payment someone from the forebarance department put me on this plan where I had to make a huge down payment and pay $120 extra to my monthly mortgage amount until I came up with a settlement amount after getting several individuals involved (the congressman and an attorney) they reversed my chargeoff but still DID NOT put any of my payments towards my loan and it showed up on Chase's payment history of my account that all my payments went to corp. advances. The excutive office of Chase contacted me and my attorney and told me to begin another modification process in October 2010 and from there is when the forbereance department got it again and charged my loan off again and then added an extra 10,000 I have proof to show that they sent my payment back once to where I had to send it again totaling in about $800. My attorney advised me to put my mortgage payments in escrow until we figure out what is going on due to the fact that they had sent that payment back and to my understanding the forebance department is asking for 12,000 to buy the home???

  • Comment Link Don Martin Wednesday, January 12 2011 09:30 posted by Don Martin

    Well,We have been fighting select for OVER four years now.They have called our home at 11pm to 2 am.One day alone we received over thirty phone calls.They have sent a man to my house for an "inspection", and while at my house the guy threatens that "something could happen to you,your wife,your dog or your house"!They ruined our credit,and for what? Because THEY tried to extort money from us.They received our home loan paid up to date and from day one they have tried to make us pay these off the wall fees(house00000 inspection,making sure the house has not been moved)They tried to say we were any where between 1 and 366 payments behind each time we proved them wrong.(?)We tried to get an attorney but we were told it would cost us ten to twenty thousand dollars a year for retainer,so we when pro-sa.The only thing the judge would let us sue under was fair dept and collects act.Well , after ten years we got to court and lost,but we applied to the US supreme court and won,so now we get to start all over again. In the past four years I have had stints and open heart surgery.In July after we received our judgement from the courts,we called to check the status of our loan and we were told we were put into bankruptcy.We told them there was no way we are near bankruptcy and told them "Ohio law says if you threaten bankruptcy you had better do it".The next day we called again to check the status of the loan and we were told the mortgage was paid in full,when asked by whom,we were told they can't say,because they don't know.Now we have no idea who holds our note,and they won't tell us.

  • Comment Link Myriam Lugo Tuesday, December 14 2010 10:19 posted by Myriam Lugo

    just trying to see if any one knows if FLORIDA is involved in the class action lawsuit against AHMS and all their entities company names. Notify me please, I still have all my paperwork, emails etc, saved.

  • Comment Link Sher pasquini Saturday, December 04 2010 07:33 posted by Sher pasquini

    Is anyone suing Assurity financial they over inflated my appraisal big time.

  • Comment Link Dean Council Monday, August 09 2010 12:07 posted by Dean Council

    I have a post (#19) here that my now ex wife had posted. To this day I hurt from what ASC has done. I never wanted to take out a loan agaist my house being it was 100% paid for but my "then" wife talked me into it to pay off some debts. The house was the only thing I had left that my mom gave me and worked so hard for. I wish our President would step in and help us get our homes back. This company and pepole are no better than street thugs. I hope they can sleep well at night knowing the financial burdens they have caused let alone making folks homesless. I still will join a class action suit or do anything to get my home and or money back!

  • Comment Link Helen Morris Monday, August 09 2010 11:28 posted by Helen Morris

    these stories are identical to ours. ASC has manipulated our credit and finances to nothing. i don't understand what these people are trying to do. there has got to be an answer. if God is not the answer, then we're asking the wrong questions. it's going to take something supernatural, because the gov't don't seem to care. let me know if we can get some help. i've been looking into everything.

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Rachel Dollar 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.
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