More and More Foreclosure Victims Succumbing to Fraudsters
Posted on March 16, 2009
Filed Under Government Homes | 1 Comment
Foreclosure Victmis
With more and more foreclosure victims succumbing to fraudsters the federal government is in a quandary.
Waver Brickhouse is soft spoken. She bemoans that twice during the time of this housing crisis she has been victimized by con artists. In 2005 she defaulted on her mortgage and turned for help to a rescue firm that tricked her into handing over to them the deed of her house without helping her in the foreclosure matter. According to her, Home Savers Consulting sold her house secretly without her knowledge. She had taken a mortgage from IndyMac Federal bank. The firm after promising help did nothing but inadvertently run up more debts because of this inactivity.
Today she is totally broke and feeling deeply embarrassed to discuss the matter. She is now facing foreclosure on a small house in Brownsville. For 69-year-old Brickhouse this is a new problem. Her task is to convince Federal Deposit Insurance Corporation – the institution that had taken over IndyMac.In the previous year IndyMac had become insolvent and was taken over by FDIC. Now she has to convince FDIC that her mortgage repayment amount should not be inclusive of $150,000 that had been tacked on to it by the con artists. If she has to take on this load she would just crack up.
Brickhose is a retired employee from the city parks department. She said that she would drown in her debts if this were allowed to happen. She lamented, “I feel like it’s just a matter of time until I’m on the street with my children.”
Officials speaking on behalf of FDIC commented that they do not wish to put Brickhouse on to the streets and are keen to work out a practical solution. But the lawyers representing Brickhouse said that FDIC couldn’t hold her responsible for the fraudulently made mortgage. They even declined to disclose details of her finances until FDIC dropped the unjust claim amounting to $150,000.
Her lawyer Rick Wagner said, “Our position is that the mortgage with IndyMac is toilet paper — it has no legal standing. The law for 200 years is that no title can arise from a fraudulent act.”
Meanwhile Brickhouse has brought legal charges against Home Savers. This particular case highlights the problem FDIC is facing from many such instances and is in a quandary not knowing what stand to take. It is wading through thousands and thousands of toxic mortgages that it has inherited from the collapsed banks. From IndyMac alone it has taken on 40,000 such mortgages.
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