The New York Times posted a pretty hair-raising article today about a homeowner who is being asked by the FDIC to pay $150,000 of debt racked up by the company that allegedly deceived her.
For the record, this is not someone who used her house as a credit card. She’s more of a salt-of-the-earth type of homeowner, according to the article (raised four foster children, used her life savings to buy her first home 10 years ago, and is now retired and in her late 60′s.)
When she fell behind on mortgage payments in 2005 she turned to Home Savers Consulting for help, and they allegedly secretly sold her home to a straw buyer who had good enough credit to ‘cash out’ to the tune of $150,000 of equity.
The straw buyer later had a change of heart, returned the deed and wrote an affidavit admitting everything. From the New York Times article:
“She did not at any time believe that ownership of the subject property passed to me,” Ms. Millett stated in the affidavit, “and her intent was never to relinquish ownership.”
Which seems like a pretty good case for proving fraud. The FDIC (which took over IndyMac) is saying they have no proof of fraud, and that IndyMac Bank was not involved – but it turns out that an IndyMac representative was present while the deed was being turned over to the straw buyer.
What comes up repeatedly in these kinds of stories is how often people on the inside saw problems and made complaints, and yet nothing was done. That seems certain to change. When all this mess is over with I think we’ll be a better country, and real estate agents will be working in a better industry. Too bad so many people have to go through such heartache in the process.
