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moneyluck
3741 Posts |
 Posted - 11/24/2006 : 4:53:10 PM
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Is anyone considering a class action against these guys? I have now spoken with three investors who agreed to work with them . . .
Bailout of FC, put the house in trust, get an investor, make rental payments, buy it back in a year, yadda yadda . . .
And like many of the scammers, they take all the rental moneys, never make the payments, the investors credit tanks, the house goes to FC, and all the equity is skimmed out.
They pay LOs 4,000 to give them their most desperate clients' most personal info.
has anyone started a class action yet? I would love to connect these guys to others so their attorneys can share notes . . .
LOs- if you have put any loans through these guys, call your borrowers. Have them call the investors directly and see if there is time to save the house. The equity is gone.
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moneyluck
3741 Posts |
Posted - 11/26/2006 : 1:49:24 PM
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| any one have a current contact at fcc? |
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rainmand
3462 Posts |
Posted - 11/26/2006 : 4:01:56 PM
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| I visited them at www.FundingForeclosures.com and they have a 100% purchase program ... how could they bleed the equity with a program like that? |
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CoralSnake
10320 Posts |
Posted - 11/26/2006 : 4:09:25 PM
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I read an article in a local paper a while back about this same deal. Couple was at 50 ltv, got bailed out, made all payments to investor, house went back into foreclosure, lost house to some lady who bought it at the auction.
I dont know specifically about the company that you are referring to, but it happens alot.
People get these straw buyers, to put the house int their name, collect payments, and never make payments on the mortgage. Probably the ones who advertise on Craigslist to "rent your credit for $1000, no risk!!".
One guy loses a home, one guy loses his credit, and one guy gains a few thousand buck. |
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moneyluck
3741 Posts |
Posted - 11/26/2006 : 4:36:41 PM
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quote:
Originally posted by rainmand
I visited them at www.FundingForeclosures.com and they have a 100% purchase program ... how could they bleed the equity with a program like that?
Their website keep changing . . . it used to be a broker login for wholesale business, but it looks as though they might now be in the business of selling leads?
I know it was originally housed by Head Mortgage in Costa Mesa CA, but who knows now. . .
I know a ton of these scammers exist - and they will send you an "official" looking broker package, complete with requests for broker credit, W9, etc - LOs beware. They all offer you 3-5K per hopeless "lead".
But a couple of newbie investors I met specifically mentioned this company and wanted to connect with others who may have been taken by them . . .and then I got a customer who showed me his docs from the "sale" of his property to a FFC investor, and I figured I'd put out the feelers . . . |
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roslyngrant@sbcg
2262 Posts |
Posted - 12/07/2006 : 5:53:51 PM
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| Kelsey, what ever happened? |
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moneyluck
3741 Posts |
Posted - 12/08/2006 : 1:08:46 PM
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I have two attorneys working to track down the paperwork of the title company to see . . .
Co talked investors into buying properties for lease back, homeowners to repurchase at the end of a year with a 12 month rental history and remaining equity, minus fees and money used to pay the rent-mortgage deficit for a year. I think they got like 5,000 for each property that they bought, but don't quote me.
Instead, loans were arranged for the investors that maxed out the houses - and the HUDs show all the extra equity going to the sellers (troubled homeowners) - except that they never got it.
I saw one full package that was signed by one such homeowner. There is NOTHING indicating permission to put that money anywhere except in the sellers hands, but somehow it never got there. I have called the title company on that owner's behalf to see if I can get copies of the cancelled checks from closing. The title company is still in business, and has not avoided any of my calls. We'll see what they send.
Apparently, the program functioned perfectly (the buy-back) for at least a year or more - satisfied investors/homeowners. I've talked to a few people who were thrilled with the program.
Then the president of the company Charles Head cleared out the bank account and ran - the FBI raided the office confiscated all the computers, etc.
The property management company has no money remaining in the escrow accounts to pay the mortgages (though they are cooperating with all investigations), and the rental payments being made in the meantime do not come close to the mortgage payments the investors need to make. I have seen some docs on three of the mortgages obtained for the investors - really jacked up rates, so the mortgage payments that the investors need to make are pretty insane. One guy I talked to just came back from the service to find that not a single payment has been made on any of the 3 houses he bought. All three are in foreclosure, and there is no equity left. All three former owners / eventualy repurchasers have made every single rent payment like clockwork, and they are about to lose the homes anyway.
THe investors credit has been shot, so very few can refinance into better loans. SOme are taking out equity lines on their own homes to see if they can cover the loans while the legal work takes place, but how many people can cover 3-6 properties with massive rental deficits?
I know this scheme has been repeated many, many times, but this one was on a pretty grand scale . . .
If anyone is in contact with home-sellers or investors who want to get into the loop, send me an email with their contact, and I will pass it on. I know there is an active investors forum now being moderated by one of the old employees who defected when things went south. If I get any updates, I'll post.
Also - LOs, if you got paid, consider yourself lucky. Apparently most referring LOs did not . . .
More when I get it . . . |
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roslyngrant@sbcg
2262 Posts |
Posted - 12/10/2006 : 7:30:16 PM
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| Kelcey, you have mail! |
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