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The American Dream of homeownership is being turned into a NIGHTMARE !
This nightmare is orchestrated by a growing number of well-known, corrupt and ruthless mortgage servicers who manufacture defaults on performing loans to then flood the account with illegal fees strategically designed to STEAL the borrower's equity -- and ultimately the property. In addition, the borrower's credit is destroyed to prevent them from refinancing with another lender. Read "The Issue" When the property owner runs out of resources to fight back, their property is then stolen. Investigations verify this scheme is deliberate, and as one attorney put it: 'criminally brilliant. This illegal business model disregards the law and even gets the legal system to help out.
This is a real story of a company who did exactly what is stated here. Hard to believe, but true.
The biggest investment most Americans will make is now the target of one of the country's largest financial scams and labeled: "The Perfect Crime." When fully exposed, this will make Enron look like a parking ticket.
Enron sent shock waves through the investment community. Right now we are seeing the tremors on Wall Street and the Sunami is brewing. The biggest investment firms in the country have a stake in this mess. The stability of the value of our homes will affect the economy as a whole. Foreclosured and bankrupt people will not be paying taxes and any of their credit card debt. Watch out, credit card companies. These families will need all kinds of social services. They have been ruined financially. When all the practices in this industry are fully revealed in a multitude of lawsuits, everyone will be shocked at the flagrant disregard of law.
[I]t is time to reaffirm the basic principles and rules that make capitalism work truthful books and honest people, and well-enforced laws against fraud and corruption. President George W. Bush, July 9, 2002 "As we establish with ever increasing certainty the prospect that corporate criminals will lose both their fortunes and their liberty, we will have gone a long way to restoring the integrity of the market and the confidence of the nation."
Just for the record I think he should read what he wrote. Walk the walk and not talk the talk. He appointed Roland Arnall as Ambassador to the Netherlands while the justice department was investigating his company, Ameriquest for predatory lending. At the same time Ameriquest agreed to a huge fine and to reform it's practices the founder and CEO was being rewarded as an Ambassador. ABSURD. Please go to AMERIQUEST tab and read the story. Then consider President Bush's statement.
Former Deputy Attorney General Thompson, explaining the goal of the President's Corporate Fraud Task Force. "Home ownership is one of our most cherished dreams, and I will not tolerate City Mortgage* or any other fraudulent operation exploiting those aspirations for dishonest gain.” - Texas Attorney General Greg Abbott (*no affiliation to Plano-based City Mortgage Group, Citibank or CitiMortgage)
I applaud Texas Attorney General Greg Abbott for going after this company, but Texas has some of the worst laws in the Nation for foreclosure. They can foreclose in as little as 27 days with no right of redemption. See ANNIE'S STORY. Also, FORECLOSURES BY STATE. For the record CitiMortgage and Citibank has been in trouble too.
TARGET, TRICK, & TRAP This is the business plan.
The TARGET:
a) equity in the house
b) fair/marginal to borderline credit scores
c) self employed
d) basis of race, maritial status, neighborhoods, sex
e) use credit information to profile them
f) first position liens
The TRICK:
a) False and misleading advertisements
b) Teaser Rates
c) Inflated Appraisals
d) Broker Acts as Friend
e) Good Faith Bait & Switch
f) Overcharges hidden fees
g) convincing to refinance with no benefit
h) combining to get first position lien
The TRAP
a) Prepayment Penalty
b) delayed closing
c) rushed closing
d) notary or cooperative settlement agent
