The Economy is Facing Tough Challenge Thanks to Foreclosure Crisis

Posted on July 13, 2009
Filed Under Foreclosure Homes | Leave a Comment

The US economy is going through one of the toughest and challenging phases thanks to foreclosure crisis. With the rise in unemployment, people are faltering on mortgage payments. Hence, foreclosures are on the rise. Hapless homeowners, in a desperate bid, to save their properties are falling prey to con companies that promise to save their homes from auctions.

Experts agree that it will not be easy to uproot such fraudulent practices. Unless the economy bounces back on the growth track, these companies will be around. Of course, the administration is trying hard to bring some of the culprits to book. Recently, owners of a Honolulu brokerage firm were pulled up for deploying phony buyers to get loans for buying mortgaged properties. Thirty three year old John Michael Dimitrion along with his wife Julie Ann pleaded guilty on felony cases. Earlier two other employees of their company Mortgage Alliance LLD had pleaded guilty.

The fraud took place in 2005 and had involved three homes. Those guilty had arranged for fake buyers who wrote on applications that they would live in those properties. Based on this information, the lending companies provided $25,000, $68,000 and $45,000. The Dimitrions gave $10,000 to the fake buyer and appropriated the rest of the sum.

One of the duped persons was Debbie Aurelio, who was under the impression that she was refinancing her home in return for the title. She watched as the Dimitrions pleaded guilty. Aurelio says that she wants her home back. The family of seven lives in the Ewa Beach house. The Aurelios had filed a case that prevented their eviction. However, the others who were duped had to evict their homes.

The Aurelios have lost the title of their home and the Federal government cannot do anything about it. A civil case has been filed for the restoration of the title. Myles Breiner, the lawyer for Julie Ann said that it was not right to use a fake buyer. She said the original intention of the Dimitrions was not to dupe people. They had helped 1,000 people to get loans. But when they started dealing with huge numbers of people facing foreclosure crisis they were lured by easy money. The guilty couple may face imprisonment of 10 years and may have to cough up $250,000 fine. Besides John will also have to face a 30-year sentence and pay up $1 million for giving wrong statements to FIs.

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