Foreclosure in 48116>Question Details

Kelly, Home Seller in 48116

I orginally obtained my mortgage on my home on a fixed rate. When all the variable rates came along my?

Asked by Kelly, 48116 Thu Aug 14, 2008

mortgage person showed me how much I could save on interest only. When I applied, my debt to income ratio would not let me qualify. He said no problem just somehow show more income. So I changed my pay stubs to show the amount I needed to qualify. We later took out an equity loan to put an addtion on the house which I was not asked to verify income. My husband lost his job with the Ford cut backs and now our house is in foreclosure. My HR department got a call asking about the income verification I falsified. I am affraid now. Anyone know what can happen?

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Kelly,

What has been the outcome of this situation?

Please email me the name of the company and loan officer, so I can avoid them like the plague! Don't post it here, mail it to michael@scholtz.com. If you need the names of several attorneys to choose from, let me know.

Good luck,

Michael Scholtz
0 votes Thank Flag Link Tue Jan 5, 2010
I am not an attorney but would consult with one if I were you. The papers you signed to purchase your home does constitute fraud. If you are lucky, the bank will be so busy they will not follow up.

Sharon Koch
Century 21 Brighton Towne Co
sharon@sharonkoch.com
Web Reference: http://www.sharonkoch.com
0 votes Thank Flag Link Fri Sep 4, 2009
Kelly,

Ed and Cindy are referring to the site included at the bottom of their post to your question. It contains information about mortgage fraud.
0 votes Thank Flag Link Thu Aug 14, 2008
Thank you so much but what is Ralphs site?
0 votes Thank Flag Link Thu Aug 14, 2008
Kelly have yor agent stay in touch with the bank a few times a week on that offer. It takes a while to work out an offer when in redemption. As for the mortgage rep those are the ones that made a mess of the market. Yes you did wrong but you would not have known what to do with out coaching from someone in the know.

Check with an attorney as to your role in this but make sure you get the mortgage rep reported. You can also check Ralph's site to see if your mortgage rep has been listed.
0 votes Thank Flag Link Thu Aug 14, 2008
Kelly, will you please do me a favor? Don't post it here, but would you email me the name of your loan officer, or at least what company they work for? I just want to be very sure if I see their name come across my desk that clients do not use them. It can be emailed to derek@doortodreams.com, if you wish. If not, I understand that as well. Making sure my clients are covered is Priority #1 and most important to me, so it would be most helpful. Thanks!

Also, yes, the LO can say they never told you to do that, but I would bet dollars to dimes yours is not the only file they have where this happened. I am sure a case can be made against that individual ... and I pray that it does.
Web Reference: http://www.DoorToDreams.com
0 votes Thank Flag Link Thu Aug 14, 2008
But he can say he never said that which I am sure he will. It is difficult to relax with this over my head. But thank you for your encouragement. I just keep reading about people going to jail.
0 votes Thank Flag Link Thu Aug 14, 2008
What's done, is done. I would encourage you to relax and cooperate with whatever they need. Verbal, or not, you need to make very certain the loan officer is exposed in all of this. Our industry is in the shape it is in, in-part, due to these types of actions...
Web Reference: http://www.DoorToDreams.com
0 votes Thank Flag Link Thu Aug 14, 2008
It went to sheriff sale and we are in redemption now which we cannot afford. I have an offer on the house but the bank is not responding to my agent it's been a week. All communication with my loan officer was verbal so how can I prove anything? Will I go to jail? Will they sue me?
0 votes Thank Flag Link Thu Aug 14, 2008
Kelly,

Oh dear. I am first sorry you are in this situation, I am even more sorry that your husband lost his job, I am even more sorry then that, that you falsified documents, and I am the most sorry that a professional in the industry encouraged you to commit fraud! That is a BIG deal! The thing with fraud is that it doesn't have a statute of limitations, so whether it happened last week or last year, it's a problem.

I don't want to speculate on what can happen, but the loan officer needs to be punished for committing a felony and putting you in this position...This person needs to be not working in the industry anymore for taking advantage of a consumer! THIS is why we need licensing in Michigan for loan officers, and we are getting very close to that happening!

My heart goes out to you, Kelly. Has the sherriff sale already happened? Do you think a short sale could take place? I live in South Lyon, and attend church in Brighton where you are apparently writing from. I would be happy to chat with you about trying to short sell the property. Feel free to contact me through my website at http://www.DoorToDreams.com

Derek Bauer, Associate Broker / Realtor
Real Estate One - Farmington Hills / West Bloomfield
Derek@DoorToDreams.com
Web Reference: http://www.DoorToDreams.com
0 votes Thank Flag Link Thu Aug 14, 2008
They can call your loan in and start foreclosure. I would contact an attorney immediately, tell hom what happened. You may want to contact the banking department in your state, tell them what you were asked to do and you didnt know any better. This is where your attorneys advise will come in to get an agreement holding you harmless for your actions by making a deal with them before and helping them crackdown on the mortgage broker. You should have known better but unfortanately bad advise from a trusted person blinds people. Good Luck.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Thu Aug 14, 2008
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