Short Sale Fraud
by Pat Holkesvig on February 6, 2010
New Short Sale Fraud Allegations: Second Liens, The subject of fraud with short sale subordinate lien holders is discussed. Unfortunately since second lien holders frequently, get 10% or less, they often request funds off the HUD to be brought in by real estate agents or the buyers so the first lien holder doesn’t see it. Many times the first lien holder is actually aware of these arrangements, but as long as their minimum net is satisfied they will turn their heads to this type of practice thereby indirectly endorsing it. This is a prevalent problem and only becoming more pervasive. This practice must be exposed to be stopped, shout it from the roof tops and let these lenders know we will not continue to tolerate it.
I sold a house in 2008 in a Short Sale Process with the help of a repetable Realtor with Remax Auusred, at least i thought i did up until i recently recieved a letter from Bank Of America (BOA) that i have an outstanding default amount of $107.831.60. It started out with phone calls from a Heather Knott, Acct Administrative of BOA, i then asked her to send me a copy of the promissory note that i signed and she stated she would, a few weeks went by (nothing) so i called BOA and spoke again to Heather Knott and she stated that the prommissory note had been ordered and it takes a while. Did not hear back from her anymore until i recieved the above mentioned letter still no promissory note. So i took it upon myself to send ceritified mail to request a copy because it would be my word against hers in a phone conversation and also asked for an audit of my owing this amount which is in progress as i write this. Now, I am guilty of signing a piece of paper that i probably should not have but this piece of correspondence was not explained to me during the process of the short sale there was never any money talked about. Not knowing how the short sale processed worked my question to the realtor was always will i owe any monies to either bank at the close of this and was always told (NO) the piece of paper that i signed was BOA basic letter that i see all over the internet stating that BOA would release the lien if they recieved the $2,500.00 in certified funds and that the remaining debt is collectable balance. I was a little to trusting and under the stress of loosing my home no one their explained that piece of paper when you’re having paper thrown at you at the end of closing that piece surely would have stood out had i known but was told by the realtor that at the last minute they always throw papers in like and nobody knew it was there. Then i called City Title where i saigned my papers and asked her for copies and that is what she sendt me and assured me that during closing every piece of papaer is exlplained in the process that was a (LIE) because how could you miss the most important piece of paper in the whole signing. What idiot would knowingly agree to that. I am in the process now having trying to get some legal help just made a call this morning which is 2/03/2010 not sure when someone would read this but i feel as though this was not done properly and would like for someone to tell me what to do and am i liable for this amount of monies BOA is requesting perhpas that can be determined once i get my audit done. if someone out ther can give some insight on this i would love to hear it. Aslo, they have already sent this to a collection agency and i did speak with the person at the collection agency that is handling my particular case and he told me if i liked they would accept $12000.00 and i could set up payment arrangements right then and there and i told him not until i find whether i owe this and he said ok suit yourself and that is exactly what i intend to to do give me proof that i owe this much after my house is already gone that i saved up for to purchase after retiring from the Pentagon 33 years of service.
I recommend seeking the advice of a knowledgeable real estate attorney.