Irvine Housing Blog

http://www.nctimes.com/articles/2007/06/03//news/top_stories/22_42_166_2_07.txt

interseting erad

Hey,

Yes, I did get my place through ReMax.
I think I still have your number but if you could give me a call that would be great.
I did hear from my attorney.
Hope your move goes well.
Maybe I can come pick up all your boxes....hahah
I’m trying to stay calm.

TC-

Thats great- Let me know when you hear from your attorney.  I’ve been somewhat distracted with my move and all. Trust you still have my number. I move this weekend- some good news- found a place a minute away, bigger place, cheaper rent and closer to my son’s school. 
By the way, Did you find your place through ReMax? I did too. They were absolutely no help.

Hello,

Yes sirirvinerenter, I totally understand.  I’m sorry that you and your family are in the same situation I am.  I am answering his complaint today and a good friend of mine has agreed to help us out.  I actually never signed the rental agreement, although I probably ratified the agreement by paying the rent.  I would be more than happy to sign the agreement from the OC DA’s office.  I will hear from my attorney this week as to when we have a court date.  At that time I would love to have you explain your situation either in a letter form or in person so that we can 1) protect myself from eviction 2) start procedings for rent skimming 3) File in small claims or in civil court for the deposits, ect.  I cannot believe this crap is happening.  I filed complaints against all of them with the DRE on Friday, including ReMAx and my “agent”.  This was set up from the very beginning.  Let me know when you’d like me to sign and I’ll let you know if I hear from my attorney.

Wow what a mess this group has become. sirvinerenter and TC1068 I feel very sorry for you both to have to go through all of this. I wish you the best of luck in getting any money back you can from these thieves. I am glad you found this blog and thankful for people like nirvinerealtor who posted very helpful comments. I have to say I am curious as to what the outcome of any legal action is on these criminals.

TC1098,

Sorry for the late reply as you know I have til the end of the month to back my bags and leave this property. I’d be more than happy to assist.
Found another place, thank God, not so far away. The bank is giving me some monies to leave before months end but obviously im out the 4K deposit.  He has yet to return my calls.  Legally, he is liable for the security deposit. I had been sending my checks payable to him and not first capital, but I suppose it doesnt matter. Legally, he is liable for the security deposit. Never signed another contract as I have a written email with him exclaiming he is the new landlord due to the grant deed.  I’d also be grateful if we can both put our names on the affidavit that the OC DA’s office sent me to complete-along if any other renters who were caught in this scheme.

tc1068,

Did you contact Fair Housing to get legal advice?

He is the new owner; therefore, he is your new landlord and can evict you.

Since there is no paperwork to transfer your deposit, this new landlord owes you your deposit.

When the house goes back to bank. Bank will be your landlord and can evict you.  But, the bank does not have to give your deposit back.

When you go to court, I think court will have you make payments to the bank (assignment of rent).  I am thinking you can stay longer.

sirvinerenter,

If you are not able to show up in court the day we go would you be willing to give me a written statement explaining that the exact same thing happened to you?

I would pay to have it notarized if that’s ok.
I have been in touch with some authorities and hope that this first court appearance will be the start to get the ball rolling.

I have to respond within the five days, which I’m doing now.

Then I want to have it set for court within the 20 days.

If my rental agreement is NOT with him how can he evict me from a property that he has no contract with me?

I have letters from me after the transfer was made informing him I wanted to know where my deposit money was and that I wanted to sign a new rental agreement.  He never sent me one.

Just because he was transferred the deed does not mean my agreement with Manik automatically transers to him.

I really hope the court will do something about this crap.

tc1068,

Now that you got served, you have 3 choices:

1.  Contact Fair Housing or a Real Estate Attorney immediately and explain the house is in foreclosure.

After you contact authority, you can:

1.5 Move before the court date and forget about the whole thing.  He does not have your SS#.

2.  Pay him, then the bank will contact you next month and ask you to leave.

3.  Contact the lawyer in the paper and negotiate

4.  Show up to court and explain to the judge what happened.  Make sure you set up a rent trust account.  If you do not show up, you will lose the case and a sheriff will come out a few days after the court date and lock you out.

I feel really bad for you.

nirvinerealtor,

I was served with unlawful detainer papers.
I am working on the response right now.
Any advice or suggestions on how to proceed?

Hi,

I had to get a new phone and your number is in my old broken one.
I have a new number too.
How did we exchange numbers before?

Or if I gave you my work number you can call me here now.

I knew it was an industry insider job!

Tc1098,

Sent a response awhile ago to your company address. May have been blocked?  Anyway, I have some developments also.  Would love to get all the info you were able to find. 
By the way, check this out:

http://www.buyhotinvestmentproperties.com

Does the address for first capital coincide here? hmmm.

tc1068,
My e-mail to you was undeliverable, I think your company Admin blocked it.  You may want to set up a gmail account.

I believe some of these guys have assets here to just leave.

sirvinerenter,

Did you get my email?
If you responded I didn’t get it.
I have done some additional research.
Interesting.....

I’m wondering if these guys will just up and leave the area before this all goes up in smoke.

Oh man, it just keeps getting better:

http://www.fbi.gov/publications/financial/fcs_report052005/fcs_report052005.htm#d1

The book on how this is being done!

Check out this interesting news clip:

http://news.yahoo.com/s/nm/20070412/lf_nm/usa_subprime_fraud_dc

Looks like this is getting some attention by the feds- Top 10 priority?

Manik is a strawbuyer, who is liable for the mortgage, and his credit is shot now with several forclosures under his name.  The new owner, who is not paying mortgages and is collecting rents, which should go to the bank, is rent skimming.  Rent skimming is illegal.  It does not matter, the new owner owes you your rental deposits.  I am sure sirvinerenter explained to you already.

Well, I happen to have a friend at the Orange County register.
I see Manik’s liability but where is “he” liable?  Also, I don’t believe the rental agreement automatically “continues” to the new owner.  I believe the new owner must do a few things first and also have new rental agreements signed.  Didn’t happen in either case.  Will keep you all posted.  Let me know about the liability issue?  Rent skimming?  The agent also maybe liable under fruad.

Hint for both:
1.  Very easy to get your deposit back.  The best way to get your deposit back is to threaten to bring in the press.  Once the press involve, they can review the paper trail and it will show that there are large established corporations in Orange County and Los Angeles County behind this operation (it’s huge!).  Too much at stake so they will pay you.  You can request for return of deposit from the very latest owner ( “him").
2.  This way “may” work too:  Go to small claim court.  Wait for a least 3 weeks.  If landlord does not return deposit within 3 weeks, then he has to pay double plus fines.
3.  TC1068, if this guy file an unlawful detainer, then you may have to check “yes” on your next application where it asks “If party has been a party to unlawful detainer....”.  This may scares off landlord.
4.  sirvinerenter, unfortunately, rent skimmers are everywhere (when people are desparate for money, they will rent you homes that do not belong to them), they are both in the form of individual (Craiglists) and through MLS.  It’s best that you find a real estate agent through referal to help you.  Explain to this new agent that you do not want to land in the hand of a rent skinner landlord again.  Ask he/she to prove it.
5.  The best way to notify other victims is to get the press in to do a feature article on rent skimming.
Best of luck to all.

TC1068,
send me your contact details:  jnyune@yahoo.com Interested in hearing your ideas on how to get my 4k back.  Original contract was with Manik.

sirvinerenter,

Sounds like we are in the same boat with the same scamming bas*****!  Was your original rental contract with Manik Chowdury?  Maybe we could talk outside of this blog.  And yes, I too have been looking at some rentals and actually think prices have come down.  Good old economy.  Did you sign a new contract with First Capitol or “him” once the % was transfered to him/First Capitol?  I have some ideas about getting our deposits back if your interested.

TC1098,

Yes-stupid me, shouldnt have been so trusting. The bank is giving me two weeks to move and they are offering some cash to move before months end. Still feel duped and agree that something legally must be done.  Seems pretty clear that there are multiple cases of rent-skimming happening here. 
I actually spoke with an attorney about this and since there were no technical damages to me then(until of course after the trustee sale) I was in a situation where I was damned if I dont pay the rent and damned if I did.  She definitely wanted me to avoid ever getting an unlawful detainer on your record though. It is permanent and may haunt you anytime you want to rent anywhere else.  I will pursue this legally and like I said earlier, we should probably join forces to find all the other potential victims before its too late. 
I went to the trustee sale at the appointed time,date, and place just out of curiosity.  No one bid on the property- I wasnt surprised as the bid was for 610K. No doubt that doesnt include back taxes, HOA fees, who knows what else. There are a few other same size properties in the block on the market listing for 650-675K.  Oh and by the way, I’ve been calling the guy to discuss my security depo but no call backs…
Nirvinerealtor, can you check any rentals in the westpark area that are not owned by straw buyers? Will need to move in a few weeks....

TC1068,
You mentioned that FBI contacted you for rent skimming investigation (= defrauding banks).  That means this guy is under the FBI radar.  This guy does not owe the bank any money, he only has interest in the property.  The straw buyer, Chowdhury, has no interest in the property; however, has liability to the bank.
Now, your security deposit, by law, you can go after either Chowdhury or this guy (new owner) for refund.  As I mentioned he is a REAL ESTATE BROKER, his information is public.

Ok but then how in the world are they getting away with this?
And won’t this all catch up to this individual?
I don’t know a lot about real estate but I do know a lot about the Department of Justice and I’m assuming the DRE is as credible as they are?  So, I guess my question is how is this whole scam going down and no consequences? 

sirvinerenter, you dealt with the same person I’m assuming?  Did you just keep paying until the bank contacted you?

sirvinerenter,
Yes indeed.  I do not want to name names here because he is a REAL ESTATE BROKER/OFFICER, same line of work I do.

If you are speaking about the same person who’s principal address is in Torrance, Yes I believe so.

TC1098,
Is he the owner of First Capital?

TC1098,

what is your email? i think you and I are dealing with the same character. I too had a lease signed by manik chowdhury. The bank has alread foreclosed on my rental. We should join forces here. Cant believe he showed up at your door…

nirvinerealtor,

The guy who came to my door is a very public figure?????
Because when I told him I had been approached by the FBI about rent skimming he said he was not concerned.  I just figured out that I actually have paperwork from Marina Yasmin as well.  I am not sure if you know which guy I’m dealing with.

TC1068,
I am pleased to see a victim-tenant blogging.  Afterall, there are 27 homes+ in this situation.  You are helping others to learn what you are going through.  Thank you.

TC1068,
I forget to mention.  You do not have to leave in 3 days.  Only the judge can order you to leave, and this takes up to 6 weeks.

TC1068,

Happy Easter to you too.

Now that you say you are comfortable to go to court, then you will be fine.  Just tell the judge what happenned.
Actually, he can serve 3-day notice because he is the new owner of record. 

The new owner owes you deposit money.  You can take him to small claim court to recoup your money.  He is a very public figure so you get it back.  I think he will try to get you to sign a waiver to forgo your deposit.

He did not get a tenant estopel, he showed up at your door on a non-business hour!

He can file a lawsuit on you because he is the owner of the house.  You will get a court hearing date in a few weeks; court date will be around May 15th.  Guess what, May 15th the house will be owned by the bank, or somebody buying short sale.  Like I said, when the new owner shows up, they can start a 3-day notice; this time you will have to leave.

I admire your strength.  Best of luck.

Happy Easter,

Yes, I do want to just leave but I can’t be out in three days.  And if I pay him I will never see the 3500.00 deposit I gave.  If he decides to go to court that’s fine, I am comfortable with that.  I do plan on contacting the fair housing department, the DRE, ect tomorrow to see if they know anything about this?  Also, my rental agreement is not with this guy, it’s actually with Manik Chowdury of group three.  SO, from my understnading of the law, this guy cannot even serve me with a three day notice since I have no agreement with him.  Yes, Manik thransfered his interest in the property to this guy but I never signed a new rental agreement with him. 

Has anyone else had any dealings with this First Capital with a rental agreement?

TC, Try this link:

http://www.caltenantlaw.com/Eviction.htm

His site is a hoot:

http://www.caltenantlaw.com/index.htm

There’s another local guy who used to take tenant cases… Daniel Bors, I think.  Not sure if he’s still around.

TC1068,
Did you get a 3 day pay or quit?  If you did and you do not pay him within 3 days, he will file an unlawful detainer (eviction through court) to get you to leave the premises.  Hearing date is usually 4-6 weeks.  If you decide to go this route, you need to put money in an account (open a bank account).  The court will order you to pay the bank.  Rent skimming is illegal, and that what he is doing.
You really need to contact an attorney, problem is it will cost you thousands upfront.
Are you sure you do not want to just leave to get away from the hassles?

nrealtor,

Oh my GOD he just came to my door.
Gave me the demand to pay and asked for the money.
I explained to him that I was not going to give them any further money.
So he said we will just go through the process.
I have children and he comes to my door?
Once he gives me the notice what am I suppose to do?
Doesn’t he have to get an order from the court and then I respond?

TC1068
He will give up quickly here because he is running out of time. Make sure you do not give him your SS# so he can not report you to the credit agency.  Your landlord (this new owner) is a Real Estate Broker and a Mortgage Broker (no wonder the public dislike agents).  Tell him you will report him to the DRE.  He will make wrong move like call you for payments on the weekends, report him to Fair Housing.  Go to:  http://www.dre.ca.gov/ to locate him.
I feel so bad for so many of you in this situation.

nirvinerealor,
You have been so great. 
I cannot thank you enough.
At least now I have some information and an idea how to prepare for this.
In the meantime this straw owner is trying his best to scare me into giving him more rent money.

tc101068,
I just realized my reply to your e-mail could not deliver.  Anyway, your house was in pre-foreclosure since Feb 2nd, 2007.  Anytime after 111 days from Feb 2nd, 2007, the bank can put on auction.  You will be notified by the bank after 111 days.  Shorty after, there will be new owner, I am guessing the bank will be the new owner.  Either way you will get eviction.  The bank will make a deal with you so you will return the house.  If you have children, the bank or the new owner would give you more like 60 days to move.  If you do not want to hassle, you could recoup your deposit and leave.  Your lease contract was voided since Feb 2nd 2007 because I doubt the straw buyer will pay off the delinquencies.  Good luck to you.  I feel very bad for you.  You probably have until May 15th when you will be contacted by the new owner.  The new owner may want to continue to lease the house to you though.

tc101068,
New Century Finacial just filed chapter 11 on Monday and it is all over the news They still can service the loan though, so nothing changes.

Does it show how far into bankruptcy it is?
I know they went bankrupt too, right?

tc1068,
New Century Financials in Irvine is the bank for your rental.  No wonder it’s going through bankruptcy.

Emailed you!

Thanks so much.

tc1068,

nirvinerealtor@gmail.com
It’s the least I can do for you.  I can not tell you who I am though.

nirvinerealtor,

Let me know how to get ahold of you and maybe you can help give me some idea how much time I have. 

Thanks for your help.

Angry Owner,

Your defensive tone leads me to believe that you are very worried that there is some truth to my statements.

And just to be clear, I said in my case that it is clear that there IS fraud involved.  I have NO way of knowing the details of the other 29 houses involved. 

Don’t you find it curious though that all these homes can be traced to two entities? 

And as far as you throwing out Libel and other legal words that you have NO idea what they actually mean, this is a blog!  Consumers have signed contracts that “seem” to be fraudulent.

If you have nothing to do with it, then you have nothing to worry about.  The rest of us, who do actually have to deal with this do need to be concerned.

Check out this website, read the scores of sellers who sold over list price and are now paying the piper.
http://www.mortgagefraudblog.com/
The seller is just as liable as the other PARTICIPANTS!
Good Luck....

angryowner,
I am sorry you totally missed my point.  I reviewed the sale history for all the homes in Group 3, but I am not going to go there.

This one is to nirvinerealtor.  Are you telling me that you advise your client not to accept 100% financing offer in today’s market, to protect them?  If so, please give out your name and number, and I will be interested to see how many homeowners will be running for your protection.

And, are you telling me that if a seller sold to a buyer through MLS, did nothing illegal or even improper, got market price and the straw buyer default a few months later, the seller would be responsible.  Well, I did go to one year law school, but this really news to me.  I would love to know where did you take your R/E lessons.

I spoke to a friend who is an escrow officer today and asked her off the record the rough % of sellers are credit buyers closing cost these days.  And she said “almost every one for the last 6 months” And I asked her what is considered acceptable seller paid closing by lender.  She said, she has seen as high as 6%, although 3% is more like it for most lenders. 

I am not an expert in law nor R/E.  But if you read the statement I made, which I stand behind 100%, that neither myself, nor my listing agent, knew the buyer nor the buyer’s agent before accepting their offer.  And actually, we even told them not to fax an offer when it was too low.  And we did not give them anything outside escrow. (and they did not ask for it) Any licensed realtor should know that there is nothing illegal about the transaction, wether intentional or unintentional.  Saying what you are saying about this situation, I think is a reportable offense to the R/E board.

I dont’ want to waste any more time debating these accusation.  Unless someone really press the case.

tc1080,

And since your not getting your deposit back, I would throw the wildest party you can the day after you move your possessions out

... not really, but it is fun to think about…

angryowner,
I am sorry for you too, sounds like you are a victim yourself.  Sellers would not know if some act is illegal unless their real estate agents advise them so; that is the main reason why you hire real estate agent to protect you.
Regardless, if an unintentional illegal act was carried out by the seller, the seller may be implicated and you just have to defend yourself.  Best of luck to you.

tc1080,
I can feel your stress already.  I do not know which property is yours.  Maybe you can go on the forum and whisper to me.  I can estimate when the title would go back to the bank (most likely because there is no equity so no bid).
In the mean time, you do not want eviction on your record.  This landlord will threaten an eviction lawsuit to get money from you. 
Your choices are:  vacate the property.  Your deposit got wiped out in foreclosure already.  Do not pay anymore if you decide to vacate.  If an eviction lawsuit started already, you have about 4-6 weeks to vacate before the hearing.
Choice 2:  contact an attorney.  This will cost you thousands to get your deposit back.  I do not know how easy it is to collect.  If the landlord has establishment?  I still think the lease listing broker is liable if there is misrepresentation.

My comments is to TC1068. Although you may not have rented the one home we sold to the Straw buyer, your statement of “ there is some sort of fraud going on between the original owner and the straw owner” is false accusation after I stated clearily to you and other readers that at least in my case,

1. We did not know the buyer, nor the buyer’s agent before they presented the offer.
2. there is no gift outside of escrow of any kind.
3. the buyer has the right to 100% financing and the seller did not pay more than what was considered normal seller’ paid closing cost. The lender is fully aware of all seller’ paid cost, and they were OK with it.

There is law and there is justice.  We do not like being called a liar and thief when we did nothing wrong.  We will not put up libel.

TC1068,

If your situation is anything like mine and the house goes to the trustee sale, it may end up back at the bank as a REO. The bank will then assign a realtor to put it back in the market. We had one show up today. The bank wants you to leave obviously as soon as possible, even willing to put upa small amount for your trouble. Provided that is you dont fight the eviction and leave in 30 days. My attorney has suggested I leave within the agreed amount as fighting it court can land you with a permanent court record that can affect your ability to rent anywhere-you have to lose of course.  Even small claims may not guarantee you getting anything back.  Contacted DA’s office and the media today.  At this point its really a matter of principle....

I truly don’t know what you are spekaing about.
At least in my situation it is very clear there is some sort of fraud going on between the original owner and the straw owner.  My contract lists both of those individuals names.  So, if your comment was directed at me I am sorry if I offended you but I have put up with this stress for too long.  There is fraud going on here it is just a matter of putting all the pieces together.  I do not believe the agent who listed my property originally knew what was going on because once the straw purchase occured she tried to warn us.  However, I do think she can provide some insight into what is really going on and how these groups are linked.

I want to make something very clear, and I reserve all my right to legal action as well.  I’ve been reading the blog and were very disturbed to find people calling sellers part of the scam.  I did not say anything because people who made the claims did not know the details, they just assumed.  But the last comments caught my attention.  These homes were not even closed a year ago, so making the listing agent responsible for this tenant is assuming the seller is in this with the buyer.  I was the seller to one of the group 3 buyer, and I will not put up with these accusation.

1. We did not know the buyer, nor the buyer’s agent before they presented the offer.
2. there is no gift outside of escrow of any kind.
3. the buyer has the right to 100% financing and the seller did not pay more than what was considered normal seller’ paid closing cost.  The lender is fully aware of all seller’ paid cost, and they were OK with it.
4. The lease listing agent is the buyer’s agent in those cases.  You can find them.  But don’t point your finger to just anyone.

We do not know any other seller from any of those groups.  And we are 100% sure we did nothing wrong.  We have made it very clear to you guys on these issues, if anyone wants to bring lawsuit to people who had nothing to do with these, then you should bear the consequence too.

tc1068,

I would open up a separate savings or escrow account and make your rent payments to this account until there is a final settlement. The bank may actually try to go to you to get the rents the landlord was skimming even though they have no legal standing to do so.

Next time the landlord calls tell him you are reporting him for rent skimming and you want your money back. In the end you may be able to stay in your place rent free for a while. I don’t think the bank can evict until they take possession in foreclosure.

Well I feel much better that at least I am not the only one who got taken.
But I have NO intention of letting this group off the hook.
This landlord who really has zero legal rights based on my reading of the contract, is still calling me for rent.
I stopped payment on my check and informed him that I had no intention of paying any additional rent until some legal action is taken.
This whole First Capital group is all connected.
I too have the name and address of the real estate agent who had the property listed a year ago.

So, does anyone know how I get ahold of the bank to find out how much time I have?
I also confirmed that we as tenants are able to take the supposed owners to small claims court.

Reading up on the eviction laws now because I’m sure that’s what is coming.  Although I would be TOTALLY suprised with the amount of paperwork I have compiled, if he actually showed up in Superior Court.

This seems to be a pretty good scam they pulled in the Educated little city of Irvine.

IrvineRenter is correct.  The perpetrator is hard to find and to collect.  However, the perpetrator’s listing agent (broker) can be held accountable for damages if fraudulent representation is warrant, seems likely this this case.  Check the web to locate the broker.  Local Fair Housing do provide free legal help for renters.  Consumers do have protection from the state.
http://www.dre.ca.gov/

sirvinerenter,

“continue to suck more money out of decent renters- its a real crime.”

That certainly is a crime, it is called rent skimming. You should register a complaint at the police department and/or the FBI. You may even have a civil case against the perpetrators, but it may be very difficult to collect.

sirvinerenter,
I am sorry this is happening to you.  I noticed the fraudulent landlords from homes listed in from this post.  Would you considered contact the OC Register so they can warn the public (agents and potential tenants).  It is possible that your agent is ignorant.  Thank you for your thoughtfullness.  Also would you share your address?

some realtors have really being playing with their listing.  I saw the history of 2 Gilly Flower and there were 121 changes to that property, with commission changing from 2% to 5% (and several inbetween) price for rent from $1750 to $8000, and price up and down $200K many times.  I think the realtor owns this property, and if I remember that correctly, the for sale sign was up months after the home was built.  And I think the sqft, model #, etc. have been changed more than once in this listing. The only thing did not change, is the listing agent.

I felt bad for the sirvinerenter since he/she really did not nothing to deserve this.  But I have to admit it is hard for the realtor to find fraud before that happens also.  But at least the realtor should step in and help her with her fight. 

I am a realtor although I do work actively outside my own friends and family.  I felt bad what TC1068 and sirvinerenter has to go through.  The son of my friend was evicted under the same circumstance 10 years ago during the last R/E recession.  He was locked out, because the landlord has removed all notices while he was at work, and did not even know it was coming. 

I hope this won’t get worse, although it may.  I heard lender are tightening on these loose standards, and hopefully, things like these will stop.

Glad I found this site. I have been renting from one of the named straw buyers-unknowingly and now the home has been foreclosed. Spoke with the bank who is giving me til the end of the month to move.  Obviously they are claiming they arent liable for the security deposit.  The realtor who found the property for me is claiming ignorance. Feel like the last man holding the straw.  Its the banks and renters like myself who have been shafted by these con men/women. 
For those renting-make sure the property you are renting is also a house thats not on the market.  Also, make sure you stop paying when you start getting notices of a trustee sale on your property. These guys are pocketing the cash and obviously not paying the bank. To think they’ve already made money with the straw buyers-and then continue to suck more money out of decent renters- its a real crime.

I am so sorry to hear our neighbor TC1068 was put into that position.  How can anyone do this to good paying tenants.  However, you should check and make sure the home you are in are indeed in foreclosure.  I don’t have a memebership to foreclosure.com to check if they are in deed in trouble, but transfering title to someone else does not means the bank is taking over.  Maybe it was wrong info. to start with.

But whoever you send the rent to should know something.  What did they say?  I am really curious.

TC1068,
It would take 3.5 months from the NOD date for the bank to take over.  It’s unlikely that the straw buyer will bring to current.  Your deposit will be wiped out.  Contact your real estate agent immediately to verify that the home is in foreclosure.  You must contact a real estate attorney asap.  Or at least call your local Fair Housing services for advice.
Good luck.

Hi,
I just received this blog from a neighbor who informed me the house I was renting from group 3 is in foreclosure.  I have all of the paperwork that has gone on for the past nine months and now am not sure where to go or what to believe.  Does anyone know if the home is in PreForeclosure how long this straw owner has to bring it current before the bank takes over?

http://www.ocregister.com/ocregister/money/article_1637910.php

This similar scam is happening in our own backyard!

graphrix,

I pulled title search on 68 Arcata, it has the following liens:
1.  $2K unpaid HOA Dues
2.  $5K unpaid Property Tax
3.  $48K unpaid mortgages

The property is worth $675K in today market.  Why would anyone in their right mind pay $620K+$52K =$672K in a foreclosure sale.  In addition, I would not be surprise to see a HELOC on this house that is not showing up yet in title.  Way too much risks.

Thank you for providing this information.  I hope you continue to give updates on the homes mentioned in this post.

Well the foreclosures have begun. I can confirm that 68 Arcata is now owned by the bank. I don’t want to offend any of the posters who own there but no one bid on the place at $620k and that is what the bank took it back for.

I got a little lost about listing agent, paper trail, etc.  Which one we are referring to?  I am think it is not right to post agent’s name unless there is fraud and you tried to warn people, like Mathew Ingall was mentioned a few times and it sounds like advertisement for him.  And I can’t understand why his listing went for $759K in 6 days is OK, while same model same time went for $720K is a fraud.

Ed The Mortgage Guy,

The paper trail indicates that involved LISTING AGENTS do not fit your regular Joe Agent model.  I can see a least 5 Listing Agents who are considered very accomplished, extremely sucessful from nationally recognized brokerage firms.
Why?

Ed TMG- thanks. At one time I worked with collections and figured our association must stand in line to collect anything left.  ( in most cases, nothing.) I own in NP and hope our association can keep up with all the sales transactions and collect what is rightfully due! 
We have many realtors living in NP.  It is shameful if their participation in any illegal scheme for personal gain to profit at the expense of a community.  It saddens me to think that this is the new “American Way” to earn a living.  It’s ranking is right up there next to dealin’ drugs because we will all eventually have to pay for the destruction. 
When we decide to move, I hope my home does NOT wind up in this scheme. 
Is there any way to prevent this if you are not in foreclosure?  Are the lenders/loan officers/ brokers only small companies vs. the top 3?  ( Wells Fargo, BofA, WAMU)

Folks for a straw buyer scheme to work there are usually only two people who know other than the person intending to live in the house.  That’s the person being financed and the loan officer or mortgage broker.

What is explained here if true is a classic example of mortgage fraud which is a federal felony.  This is also a typical scheme from years back.  Buyer A buys the home at short sale or below market.  6 months into the home they refinance to pull the equity out based on actual value.  After they’ve made their first 3 payments they stop making payments, causing a NOD to be filed eventually leading to foreclosure and/or short sale. 

Buyer B (typically related to or involved with Buyer A) steps up and buys the home from Buyer A at the short sale price or at foreclosure sale, typically its from Buyer A who has negotiated a short sale in lieu of foreclosure with the lender.  Lender agrees to short sale price Buyer B becomes proud new owner and starts the process all over again with Buyer C.

This scheme was very popular back in the late 80’s early 90’s when the real estate market experienced a number of foreclosures.  Unfortunately your average loan officer / mortgage broker doesn’t know what to look for.  Also the tend to use different lenders with each transaction (on the same property) so as to not bring the spotlight upon themselves.

Sad to say but it appears the loan officer or mortgage broker and listing Realtor are probably involved up to their neck sand received a tidy little sum for their creative work.

NP resident: In the event of foreclosure the person in number 1 position usually the lien holder of the first mortgage gets paid before anyone else.  Unless there’s a federal lien on the property.  Any remaining money rolls down hill until there’s nothing left.

appraiser,

The paper trail do exists and I agree with you it’s fraud.  Do you have any idea what may happen to all the parties involved?  Thank you for sharing.

http://www.denverpost.com/search/ci_5347170

To all the naive posters/readers, it is fraud and the paper trail exists.  See link above to what a group did in the Denver Metro area.  It is just terrible what is going on and what is in the pipeline and headed for a train wreck.  There are many people who have reported these crimes to our local DAs, FBI etc and they cant do anything because the crime is in process and no one is hurt(yet).  Sort of a victimless crime on the surface, unfortunately we will all be paying in the long run.  Would the appreciation been there without the subprime loans?  Would the appreciation been there without the speculators??  We will have wait to see what happens in the future but it doesn’t look good for real estate which will have, not ripples, but waves throughout the economy.  Good work you guys keep it up..

Hi!

Bkshopr - I rented in Northwood then bought in Northpark.