Mortgage Fraud Investigation

FOR IMMEDIATE RELEASE: CONTACT: K.B. Forbes (202)320-1212

Thursday, February 28, 2008 kbforbes@hotmail.com


AS HOME FORECLOSURES SKYROCKET,

MORTGAGE FRAUD HELP ARRIVES IN

SOUTHERN CALIFORNIA


EAST LOS ANGELES, CA—A leading consumer advocacy group announced free help to the thousands of homeowners in Southern California who have lost their homes, are in the process of losing their home, or believe they will lose their home in the near future due to mortgage fraud. The group is documenting cases of mortgage fraud for a report to be issued this summer in the nation's capital and will have all cases reviewed by a legal aid team.




"Shady realtors, greedy mortgage brokers, worthless appraisers, and careless escrow companies are to blame for some of the crisis many homeowners face today," said K.B. Forbes, Executive Director of the Consejo de Latinos Unidos, a national not-for-profit organization and public charity which investigates and educates the public about consumer fraud and abuses. "We suspect that at least one in five homeowners in Southern California has been hoodwinked by one of the key players involved in the transaction. The mortgage and real estate industry cannot claim innocence."


Rueben Preciado, a homeowner from Moreno Valley, discovered that his supposed 30-year fixed loan was not fixed last September. "Our payment went much higher and we didn't know why. Our loan, it turned out, was a three-year fixed and 27-year adjustable." When he tried to refinance, he discovered that his loan included an unconscionable pre-payment penalty equal to six months of interest. He could not afford to refinance. "We are barely making it," said Preciado, a tire mechanic who works at an auto tire store in Pomona. "I have had to borrow money from family to stay afloat and not lose my house."


Consejo has reviewed Preciado's case and found that he was never given final documents showing the loan change and it appears his escrow company and mortgage broker deceived him.


Consejo has set up a toll-free hotline at 1-800-474-7576. All services are free.




The Consejo, which has published ten investigative reports on hospital price gouging, religious fraud, police abuse, and pharmaceutical corporate deception, has helped spur at least three U.S. Congressional investigations and hearings. Consejo's work against hospital fraud was profiled on CBS' 60 Minutes in 2006. Over 500 news articles have been written about Consejo's work since the organization was founded in 2001.

Category:

News & Politics

Tags:

• Mortgage
• Fraud
• foreclosures
• help
• consejo
• de
• latinos

[johnnythetech]

THE OUT4JUSTICE U FCKN RACIST FCK!!!!!!!!! UR JUST A ROBOTIC PRODUCT OF THE NEWS !!!

UR A FCKN ROBOT U SHOULDN'T SPEAK !!LET ALONE THINK.. GO WATCH THE NEWS AND STUFF UR FAT FACE WITH JUNK PUNK!!!

[dxplicitone]

this guy is a fucking retard. Rates in the 4's? back then? didnt exist! your experts know just as much as he does. pre pays on loans were the common place and the client had to sign at least 2 disclosures stating this back then. If your going to run some hotline for help at least be half educated on the subject.

[angiegrl77]

This is legalized loan shark!! These Beaners need to be able to walk away from the loan and the mortgage broker, lender, and appraiser need to be put in jail.

[TheOut4justice]

Its all the dumb beaners that dont pay taxes that are responsible for this mess!

[TheOut4justice]

Mortgages are supposed to be paid back. I hate it when people borrow money and don't pay it back!

[mrtruth6486]

Want to see one of the attorneys who is in charge of one of the largest morgage fraud stories in the US? Search for "Joel Bander" and the "Bander Scam"

[jmorengo2000]

lol! look at all of obama's economic advisers..have you? they're ALL wall street crooks that have given up their post at goldman sach's and so on....to be part of the gov't so they can deregulate and let they criminal pals do whatever they want.

obama doesnt care and neither do the criminals who have created the realestate/economic crisis. we're living in a state of corporate-fascism-GET USED TO IT OR DO SOMETHING ABOUT IT

[beancube2008]

Primary house mortgage for units with two bedroom or less should be fixed by FTC regardless of credit rating so lending companies cannot jack it up anyway. Gov't should subsidize first home buyers and allow non-profit housing related organizations monitor bank loan and the neighborhood housing market.

[foreclosuredog]

Here's a solution not yet considered by Obama! Expand the FTCs enforcement authority to cover unfair and deceptive acts and practices committed by federally chartered depository institutions, which are currently governed by the federal financial regulators. FTC already has enforcement authority over non-depository institutions. Request a GAO study on different options to establish a land trust to purchase the land beneath foreclosed properties and allow existing structure to be re

[foreclosuredog]

I am sorry to post this so many times but there are not enough characters to include this important fact from Sen. Boxer's report ! As Congress reconvenes this month, there will be opportunities for legislative action to address the foreclosure crisis, including crafting comprehensive legislation targeted to address Californias needs. Work closely with the HOPE NOW coalition and major California lenders and servicers to ensure they live up to the commitments they have alrearates