tag:blogger.com,1999:blog-62106848484412447442024-02-18T23:49:53.413-07:00The Mortgage Fraud Chronicles, by Robert PaisolaThe Mortgage Fraud Chronicles are a series of stories relating to Mortgage Fraud in the USA. If you have a story you want investigated, please send a detailed email to Robert Paisola at robert@mycollector.com The Official Story on the Donald Trump and Trump University Lawsuit is Now A Featured story with links to the Lawsuits.Robert Paisolahttp://www.blogger.com/profile/00435871035547197331noreply@blogger.comBlogger59125tag:blogger.com,1999:blog-6210684848441244744.post-40869339380715301852016-03-07T12:14:00.001-07:002016-03-07T13:34:01.345-07:00DONALD TRUMP AND TRUMP UNIVERSITY SUED NATIONWIDE, ROBERT PAISOLA REPORTS (Actual Lawsuits .pdf)<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="background-color: white; color: #141823; font-family: "helvetica" , "arial" , sans-serif; line-height: 19.32px;"><b>UPDATE: 3-2016 TO THE NATIONAL MEDIA: YOU KEEP CALLING OUR USA OFFICES ABOUT OUR INVOLVEMENT WITH TRUMP UNIVERSITY. WE WERE THE NATIONAL BACKBONE FOR THE ORGANIZATION. WE WERE BASED IN PROVO, UTAH . WE DID THE COACHING AND MENTORING AND WORKED WITH BILL ZANKER AT THE LEARNING ANNEX. WE PAID TRUMP 1 MILLION DOLLARS "Per Appearance" . And, YES, THERE WERE LAWSUITS FILED... HERE IS OUR ORIGINAL STATEMENT from 2014 <a href="http://www.robertpaisola.com/">Robert Paisola</a>, CEO</b></span><br />
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DONALD TRUMP AND TRUMP UNIVERSITY SUED NATIONWIDE, ROBERT PAISOLA REPORTS</h3>
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<span style="font-family: "georgia" , "times new roman" , "times" , serif; font-size: medium;"><span style="line-height: 22px;">DONALD TRUMP AND TRUMP UNIVERSITY SUED NATIONWIDE, ROBERT PAISOLA REPORTS</span></span></h2>
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<b>MORE LAWSUITS OUT OF UTAH! DONALD TRUMP SUED. ALL FULFILLMENT WAS DONE OUT OF THE SALT LAKE CITY AND PROVO UTAH AREAS. I WAS THERE. IF YOU HAVE A COPY OF THE LAWSUIT PLEASE EMAIL TO ROBERT@ROBERTPAISOLA.COM WHO IS BILL ZANKER WITH THE LEARNING ANNEX LETS LOOK AT JOHN SWALLOW? (Do your research America)</b></div>
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<b>CLASS ACTION 1</b></div>
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<span style="font-family: "georgia" , "times new roman" , sans-serif;"><a href="http://mycollector.com/Cohen-v.-Donald-Trump-complaint-.pdf">http://mycollector.com/Cohen-v.-Donald-Trump-complaint-.pdf</a></span></div>
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<b>CLASS ACTION 2</b></div>
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<span style="color: #333333; font-family: "arial" , sans-serif; line-height: 18px;"><span style="font-size: medium;">Michael Cohen told the Associated Press on Saturday that Schneiderman's lawsuit was filled with falsehoods. Cohen said Trump and his university never defrauded anyone. LOL</span></span><br />
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The <a class="meta-loc" href="http://topics.nytimes.com/top/classifieds/realestate/locations/newyork/?inline=nyt-geo" style="color: #666699;" title="Find Real Estate listings and community news for New York State">New York State</a> attorney general’s office filed a civil lawsuit on Saturday accusing Trump University, <a class="meta-per" href="http://topics.nytimes.com/top/reference/timestopics/people/t/donald_j_trump/index.html?inline=nyt-per" style="color: #666699;" title="More articles about Donald J. Trump.">Donald J. Trump</a>’s for-profit investment school, of engaging in illegal business practices.</div>
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The lawsuit, which seeks restitution of at least $40 million, accused Mr. Trump, the Trump Organization and others involved with the school of running it as an unlicensed educational institution from 2005 to 2011 and making false claims about its classes in what was described as “an elaborate bait-and-switch.”</div>
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In a statement, <a class="meta-per" href="http://topics.nytimes.com/top/reference/timestopics/people/s/eric_t_schneiderman/index.html?inline=nyt-per" style="color: #666699;" title="More articles about Eric T. Schneiderman.">Eric T. Schneiderman</a>, the attorney general, said Mr. Trump appeared in advertisements for the school making “false promises” to persuade more than 5,000 people around the country — including 600 New Yorkers — “to spend tens of thousands of dollars they couldn’t afford for lessons they never got.”</div>
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The advertisements claimed, for instance, that Mr. Trump had handpicked instructors to teach students “a systematic method for investing in real estate.” But according to the lawsuit, Mr. Trump had not chosen even a single instructor at the school and had not created the curriculums for any of its courses.</div>
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“No one, no matter how rich or famous they are, has a right to scam hardworking New Yorkers,” Mr. Schneiderman said in the statement. “Anyone who does should expect to be held accountable.”</div>
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The inquiry into Trump University came to light <a href="http://www.nytimes.com/2011/05/20/nyregion/trumps-for-profit-school-said-to-be-under-investigation.html?pagewanted=all" style="color: #666699;">in May 2011</a> after dozens of people had complained to the authorities in New York, Texas, Florida and Illinois about the institution, which attracted prospective students with the promise of a free 90-minute seminar about real estate investing that, according to the lawsuit, “served as a sales pitch for a three-day seminar costing $1,495.” This three-day seminar was itself “an upsell,” the lawsuit said, for increasingly costly “Trump Elite” packages that included so-called personal mentorship programs at $35,000 a course.</div>
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On Saturday evening, Michael Cohen, a lawyer for Mr. Trump, denied the accusations in the lawsuit and said the school had received 11,000 evaluations, 98 percent of which rated students as “extremely satisfied.”</div>
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George Sorial, another lawyer for Mr. Trump, called the lawsuit politically motivated. He said that Mr. Schneiderman had asked Mr. Trump and his family for campaign contributions and grew angry when denied.</div>
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“This is tantamount to extortion,” Mr. Sorial said.</div>
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Andrew Friedman, a spokesman for the attorney general’s office, said that although Mr. Schneiderman had accepted a contribution from Mr. Trump in the past, “the fact that he’s still brave enough to follow the investigation wherever it may lead speaks to Mr. Schneiderman’s character.”</div>
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NY AG Sues Trump, 'Trump University,' Claims Fraud</h1>
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New York's attorney general sued Donald Trump for $40 million Saturday, saying the real estate mogul helped run a phony "Trump University" that promised to make students rich but instead steered them into expensive and mostly useless seminars, and even failed to deliver promised apprenticeships.</div>
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Trump shot back that the Democrat's lawsuit is false and politically motivated.</div>
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Attorney General Eric Schneiderman says many of the 5,000 students who paid up to $35,000 thought they would at least meet Trump but instead all they got was their picture taken in front of a life-size picture of "The Apprentice" TV star.</div>
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"Trump University engaged in deception at every stage of consumers' advancement through costly programs and caused real financial harm," Schneiderman said. "Trump University, with Donald Trump's knowledge and participation, relied on Trump's name recognition and celebrity status to take advantage of consumers who believed in the Trump brand."</div>
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But Trump's attorney accused Schneiderman of trying to extort campaign contributions from the real estate mogul through his investigation of Trump. Attorney Michael D. Cohen told The Associated Press on Saturday that Schneiderman's lawsuit was filled with falsehoods. Cohen said Trump and his university never defrauded anyone.</div>
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He said Trump University provided nearly 11,000 testimonials to Schneiderman from students praising the program and said 98 percent of students in a survey termed the program "excellent."</div>
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"The attorney general has been angry because he felt that Mr. Trump and his various companies should have done much more for him in terms of fundraising," Cohen said. "This entire investigation is politically motivated and it is a tremendous waste of taxpayers' money."</div>
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State Board of Elections records show Trump has spent more than $136,000 on New York campaigns since 2010. He contributed $12,500 to Schneiderman in October 2010, when Schneiderman was running for attorney general, records show. An outspoken conservative, Trump himself flirted with a presidential run last year.</div>
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"Donald Trump will not sit back and be extorted by anyone, including the attorney general," Cohen said.</div>
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The lawsuit says many of the wannabe moguls were unable to land even one real estate deal and were left far worse off than before the lessons, facing thousands of dollars in debt for the seminar program once billed as a top quality university with Trump's "hand-picked" instructors.</div>
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Schneiderman is suing the program, Trump as the university chairman, and the former president of the university in a case to be handled in state Supreme Court in Manhattan. He accuses them of engaging in persistent fraud, illegal and deceptive conduct and violating federal consumer protection law. The $40 million he seeks is mostly to pay restitution to consumers.</div>
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He dismissed Trump's claim of a political motive.</div>
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"The fact that he's still brave enough to follow the investigation wherever it may lead speaks to Mr. Schneiderman's character," Schneiderman spokesman Andrew Friedman told AP.</div>
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State Education Department officials had told Trump to change the name of his enterprise years ago, saying it lacked a license and didn't meet the legal definitions of a university. In 2011 it was renamed the Trump Entrepreneur Institute, but it has been dogged since by complaints from consumers and a few isolated civil lawsuits claiming it didn't fulfill its advertised claims.</div>
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Schneiderman's lawsuit covers complaints dating to 2005 through 2011. Students paid between $1,495 and $35,000 to learn from the Manhattan mogul who wrote the best seller, "Art of the Deal" a decade ago followed by "How to Get Rich" and "Think Like a Billionaire."</div>
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Scheiderman said the three-day seminars didn't, as promised, teach consumers everything they needed to know about real estate. The Trump University manual tells instructors not to let consumers "think three days will be enough to make them successful," Schneiderman said.</div>
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At the seminars, consumers were told about "Trump Elite" mentorships that cost $10,000 to $35,000. Students were promised individual instruction until they made their first deal. Schneiderman said participants were urged to extend the limit on their credit cards for real estate deals, but then used the credit to pay for the Trump Elite programs. The attorney general said the program also failed to promptly cancel memberships as promised.</div>
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Consumers may file complaints at:</div>
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www.ag.ny.gov/bureaus/consumer—frauds/filing—a—consumer—complaint.html.</div>
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Donald Trump sued by attorney general for $40M over 'Trump University'</h1>
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New York's attorney general sued Donald Trump for $40 million Saturday, saying the real estate mogul helped run a phony "Trump University" that promised to make students rich but instead steered them into expensive and mostly useless seminars, and even failed to deliver promised apprenticeships.</div>
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Trump shot back that the Democrat's lawsuit is false and politically motivated.</div>
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Attorney General Eric Schneiderman says many of the 5,000 students who paid up to $35,000 thought they would at least meet Trump but instead all they got was their picture taken in front of a life-size picture of "The Apprentice" TV star.</div>
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"Trump University engaged in deception at every stage of consumers' advancement through costly programs and caused real financial harm," Schneiderman said. "Trump University, with Donald Trump's knowledge and participation, relied on Trump's name recognition and celebrity status to take advantage of consumers who believed in the Trump brand."</div>
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But Trump's attorney accused Schneiderman of trying to extort campaign contributions from the real estate mogul through his investigation of Trump. Attorney Michael D. Cohen told The Associated Press on Saturday that Schneiderman's lawsuit was filled with falsehoods. Cohen said Trump and his university never defrauded anyone.</div>
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He said Trump University provided nearly 11,000 testimonials to Schneiderman from students praising the program and said 98 percent of students in a survey termed the program "excellent."</div>
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"The attorney general has been angry because he felt that Mr. Trump and his various companies should have done much more for him in terms of fundraising," Cohen said. "This entire investigation is politically motivated and it is a tremendous waste of taxpayers' money."</div>
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State Board of Elections records show Trump has spent more than $136,000 on New York campaigns since 2010. He contributed $12,500 to Schneiderman in October 2010, when Schneiderman was running for attorney general, records show. An outspoken conservative, Trump himself flirted with a presidential run last year.</div>
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"Donald Trump will not sit back and be extorted by anyone, including the attorney general," Cohen said.</div>
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The lawsuit says many of the wannabe moguls were unable to land even one real estate deal and were left far worse off than before the lessons, facing thousands of dollars in debt for the seminar program once billed as a top quality university with Trump's "hand-picked" instructors.</div>
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Schneiderman is suing the program, Trump as the university chairman, and the former president of the university in a case to be handled in state Supreme Court in Manhattan. He accuses them of engaging in persistent fraud, illegal and deceptive conduct and violating federal consumer protection law. The $40 million he seeks is mostly to pay restitution to consumers.</div>
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He dismissed Trump's claim of a political motive.</div>
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"The fact that he's still brave enough to follow the investigation wherever it may lead speaks to Mr. Schneiderman's character," Schneiderman spokesman Andrew Friedman told AP.</div>
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State Education Department officials had told Trump to change the name of his enterprise years ago, saying it lacked a license and didn't meet the legal definitions of a university. In 2011 it was renamed the Trump Entrepreneur Institute, but it has been dogged since by complaints from consumers and a few isolated civil lawsuits claiming it didn't fulfill its advertised claims.</div>
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Schneiderman's lawsuit covers complaints dating to 2005 through 2011. Students paid between $1,495 and $35,000 to learn from the Manhattan mogul who wrote the best seller, "Art of the Deal" a decade ago followed by "How to Get Rich" and "Think Like a Billionaire."</div>
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Scheiderman said the three-day seminars didn't, as promised, teach consumers everything they needed to know about real estate. The Trump University manual tells instructors not to let consumers "think three days will be enough to make them successful," Schneiderman said.</div>
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At the seminars, consumers were told about "Trump Elite" mentorships that cost $10,000 to $35,000. Students were promised individual instruction until they made their first deal. Schneiderman said participants were urged to extend the limit on their credit cards for real estate deals, but then used the credit to pay for the Trump Elite programs. The attorney general said the program also failed to promptly cancel memberships as promised.</div>
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Donald Trump investment school sued by New York attorney general: report</h1>
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<span class="focusParagraph" style="color: black; font-family: "arial" , "helvetica" , "sans"; font-size: x-small; line-height: normal;">(Reuters) - The New York state attorney general filed a $40 million lawsuit on Saturday against Donald Trump's for-profit investment school, Trump University, accusing it of engaging in illegal business practices, according to the New York Times.</span></div>
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The newspaper reported that New York Attorney General Eric Schneiderman alleged that the real estate mogul, his Trump Organization company and others made false claims about classes at the school, including that Trump handpicked instructors.</div>
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Representatives for the New York attorney general's office and Trump were not available for comment late on Saturday.</div>
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But Trump said in a post on Twitter, "Light weight NYS Attorney General Eric Schneiderman is trying to extort me with a civil law suit."</div>
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The tweet linked to a website about Trump University, which says the school has a 98 percent approval rating from students.</div>
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The New York attorney general's lawsuit seeks restitution of at least $40 million, the Times said, and it alleges that Trump University was run as an unlicensed educational institution from 2005 to 2011 and that Trump did not create the curriculum for any of the school's courses.</div>
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(Reporting by Mary Wisniewski in Chicago; Editing by Alex Dobuzinskis and Peter Cooney)</div>
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<nyt_headline type=" " version="1.0">New York Attorney General Is Investigating Trump’s For-Profit School</nyt_headline></h1>
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The New York State attorney general’s office is investigating whether a for-profit school founded by <a class="meta-per" href="http://topics.nytimes.com/top/reference/timestopics/people/t/donald_j_trump/index.html?inline=nyt-per" style="color: #666699;" title="More articles about Donald J. Trump.">Donald J. Trump</a>, which charges students up to $35,000 a course, has engaged in illegal business practices, according to people briefed on the inquiry.</div>
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Donald J. Trump says students at his school want him to be more involved. A representative defended the school.</div>
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Dozens of students have complained about the quality of Trump University, which charged up to $35,000 per course.</div>
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The investigation was prompted by about a dozen complaints concerning the Trump school that the attorney general, Eric T. Schneiderman, has found to be “credible” and “serious,” these people said, speaking on the condition of anonymity because the investigation was not yet public.</div>
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The inquiry is part of a broader examination of the for-profit education industry by Mr. Schneiderman’s office, which is opening investigations into at least five education companies that operate or have students in the state, according to the people speaking on the condition of anonymity.</div>
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The investigation is the latest problem for a six-year-old company, known until last year as Trump University, that already faces a string of consumer complaints, reprimands from state regulators and a lawsuit from dissatisfied former students.</div>
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George Sorial, a managing director of the Trump Organization, confirmed that the company had received a subpoena from the attorney general’s office, and said, “We look forward to resolving this matter and intend to fully cooperate with their inquiry.”</div>
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Mr. Schneiderman is looking into whether the schools and their recruiters misrepresent their ability to find<strong> </strong>students jobs, the quality of instruction, the cost of attending, and their programs accreditation, among other things. Such activities could constitute deceptive trade practices or fraud.<strong></strong></div>
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The four other companies are the <a class="meta-org" href="http://topics.nytimes.com/top/news/business/companies/career-education-corporation/index.html?inline=nyt-org" style="color: #666699;" title="More information about Career Education Corporation">Career Education Corporation</a>, which runs the Sanford-Brown Institute, Briarcliffe College and American InterContintental University;<a class="meta-org" href="http://topics.nytimes.com/top/news/business/companies/corinthian-colleges-inc/index.html?inline=nyt-org" style="color: #666699;" title="More information about Corinthian Colleges Incorporated">Corinthian Colleges</a>, the parent company of Everest Institute, WyoTech and Heald Colleges; <a class="meta-org" href="http://topics.nytimes.com/top/news/business/companies/lincoln-educational-services-corporation/index.html?inline=nyt-org" style="color: #666699;" title="More information about Lincoln Educational Services Corporation">Lincoln Educational Services</a>, the owner of Lincoln Technical and Lincoln Colleges Online; and Bridgepoint Education, the operator of Ashford University.</div>
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Spokesmen for Lincoln Educational Services, Bridgeport Education and Corinthian Colleges each said the companies had been sent requests for information by the attorney general’s office and would comply with them.</div>
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A representative of Career Education Corporation declined to comment.</div>
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For-profit schools have become big business in the United States, especially as the unemployed seek a way back into the work force. Some of those schools, however, have been accused of creating as much economic harm as help: students have reported falling deep into debt to pay for classes that they said had failed to deliver what they had promised.</div>
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Mr. Trump’s institution is unique among for-profit schools: it is built almost entirely around the prestige and prominence of a single individual. Mr. Trump said he created the university in 2005 to impart decades’ worth of his business acumen to the general public. He aggressively marketed the school, telling students that his handpicked instructors would “teach you better than the best business school,” according to a transcript of a Web video.</div>
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The school has charged premium prices because of the Trump name, with the cost of the courses ranging from $1,500 to $35,000 each.</div>
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But, as The New York Times reported last week, dozens of students have complained about the quality of the program to the attorneys general of New York, Texas, Florida and Illinois. The Better Business Bureau gave the school a D-minus for 2010, its second-lowest grade, after receiving 23 complaints. Over the last three years, New York and Maryland have told the company to drop the word “university” from its title, saying that using it violated state education laws. (The school was renamed the Trump Entrepreneur Initiative in 2010.)</div>
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Four former students filed a suit against Trump University last year in a federal court in California, seeking class-action status. They contended that the school used high-pressure sales tactics to enroll students in the costly classes, promised extensive one-on-one instruction that did not materialize and employed “mentors” who at times recommended investments from which they stood to profit.</div>
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Mr. Sorial of the Trump Organization, which oversees Mr. Trump’s businesses, forcefully disputed those claims. He said on Thursday that 95 percent of the school’s students in New York had rated their courses as “excellent” on evaluation forms. The school’s national average is even higher, he said.</div>
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“Our customer satisfaction surveys speak for themselves,” he said.</div>
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As its troubles have mounted, the school has suspended new classes and begun overhauling its curriculum, executives said. One priority is finding a way to inject more of Mr. Trump into the program.</div>
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“The one thing is that they really wanted me involved, instead of the teachers,” Mr. Trump said in an interview last week.</div>
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In interviews, several former students said they felt betrayed by the real estate mogul and his school, especially after investing tens of thousands of dollars in what they thought was to be a comprehensive education.</div>
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“They lure you in with false promises,” said Patricia Murphy, 57, of the Bronx, who is among the former students suing Mr. Trump, whose suit makes similar claims. She said she had spent about $12,000 on Trump University classes, much of it paid with credit cards, in the hope of escaping her career as a part-time teacher and becoming a real estate investor.</div>
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Her instructors said they would introduce her to banks, help her secure loans and walk her, step by step, through deals, she recalled. “They did none of that,” she said. “I was scammed.”</div>
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Mr. Sorial said the school was looking into Ms. Murphy’s claims.</div>
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Carmen Mendez, 59, a public school teacher in Brooklyn, wrote to the Better Business Bureau in 2009 about her disappointment with the school — and with Mr. Trump. She said she had dipped into her retirement savings to pay nearly $35,000 for the classes, because “Mr. Trump is a very respectable person, and I thought that Trump University was a real institution,” she said in the letter to the Better Business Bureau.</div>
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An instructor promised her, she wrote, that the school guaranteed financial assistance to buy e real estate. But once she had enrolled, Ms. Mendez wrote, she was refused such assistance. Because her credit cards were loaded with debt to pay for the classes, mortgage brokers told her she was ineligible for a loan, she said.</div>
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“I am writing because I want people to be aware that Trump University is not a real educational institution,” she told the Better Business Bureau. “Please advise other people so they do not lose their savings in these difficult days.”</div>
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Mr. Sorial said that the school tried to offer Ms. Mendez a full refund more than six months ago. “She failed to return our numerous calls and e-mails,” he said.</div>
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Robert Paisolahttp://www.blogger.com/profile/00435871035547197331noreply@blogger.com0Salt Lake City, UT, USA40.7607793 -111.8910473999999940.568390300000004 -112.21377089999999 40.9531683 -111.5683239tag:blogger.com,1999:blog-6210684848441244744.post-20726831508973287532011-08-07T22:09:00.001-06:002011-08-07T22:12:22.957-06:00James Smith, was sentenced in U.S. District Court today to 15 months’ imprisonment<div class="plain" id="parent-fieldname-text">CINCINNATI—James Smith, 43, of Lebanon, was sentenced in U.S. District Court today to 15 months’ imprisonment for his role in a scheme to mislead lenders and secure more than $10 million in loans and lines of credit for Dynus Corporation in connection with a countywide fiber optics installation project in Butler County. Smith was also ordered to pay more than $4 million in restitution.<br />
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation; and Tracey L. Warren, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation announced the sentence imposed today by Senior United States District Sandra S. Beckwith.<br />
Smith pleaded guilty on February 16, 2007 to one count of bank fraud and one count of failure to file a federal income tax return.<br />
Smith was president of Dynus and conspired with others to help the company fraudulently secure funds from lenders by signing fraudulent documents and submitting false information to auditors.<br />
The owner of Dynus Corporation, Orlando Carter, 45, of Mason was sentenced on June 9, 2010 to 15 years’ imprisonment and ordered to pay restitution in the amount of $4,927,085. A federal jury convicted Carter on August 18, 2009 of five counts of bank fraud, and one count each of mail fraud, conspiracy to commit mail and wire fraud, conspiracy to commit bank fraud, making false statements to the Small Business Administration, bankruptcy fraud, and making false oaths in a bankruptcy proceeding.<br />
Former Butler County Auditor Mary Catherine (Kay) Rogers was sentenced on July 26, 2011 to 24 months in prison and ordered to pay restitution to National City Bank in the amount of $4 million for conspiracy and filing a false income tax return.<br />
Former Dynus executive Karin Verbruggen, 54, of Loveland, pleaded guilty on February 2, 2007 to one count of bank fraud. She was placed on five years of court supervision beginning in October 2009 and ordered to pay $4,079,459.71 in restitution to Fifth Third Bank.<br />
Stewart commended the FBI and IRS agents who conducted the investigation along with Assistant U.S. Attorney Jennifer Barry and former Assistant U.S. Attorney J. Richard Chema, who prosecuted the cases.<br />
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www.jamessmithcompany.com James Smith has been active investing in real estate for over 41 years now and he has been training upstart for investors for just under half that time. He has spoken on stage with every living president and has worked with countless dignitaries and political figures including Rudy Guiliana, Colin Powell, Rick Belluzzo, Zig Ziglar, Tom Hopkins and more! His down to earth style and passion for people make him a dynamic mentor who will be able to get you out of your comfort zone and into a realm where you can succeed! <br />
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</div>Robert Paisolahttp://www.blogger.com/profile/00435871035547197331noreply@blogger.com0tag:blogger.com,1999:blog-6210684848441244744.post-78457502820603134342011-07-03T00:14:00.000-06:002011-07-03T00:14:40.055-06:00Is Your Bank One of the 433 in Immediate Danger of Failure? Robert Paisola Reports<div class="separator" style="clear: both; text-align: center;"><br />
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<b><span style="color: #cc0000; font-size: large;">Is Your Bank One of the 433 in Immediate Danger of Failure?</span><br />
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Note to Readers: We originally posted this article mid-day on June 9, 2010. Since then, nine of the banks on the list, including three on Andy's Top 10 Banks in Danger of Failure list, have been seized by the FDIC.<br />
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Because your hard-earned savings depend on it, we are committed to updating this article and list regularly so that you can have the most timely and relevant information at your fingertips. Please bookmark this page and check back often to see the updated status of the banks on the list.<br />
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<b>As the Dow dips below 10,000, it's not just your investments that might be at risk.</b><br />
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<b>Your bank could be, too.</b><br />
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Let's face it: The global economy is still rough. The European debt debacle continues to spread from one country to the next, with no one sure where it will end. Here at home, the recovery is soft at best. <br />
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The best way to evaluate the economy is to ignore the mishmash of indicators that are released each day and focus on the one metric that really matters. It's not reported like chain-store sales or the unemployment rate, but it's nevertheless the best gauge of how the economy is doing.<br />
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<b>This indicator is called the "net charge-off rate." It is the amount of bank loans that borrowers can't repay, and I think it's the most telling way to measure the nation's actual financial health. Say unemployment drops from 10% to 5%. If people still can't afford to pay back their loans, then the country really hasn't grown stronger, has it?</b><br />
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The charge-off rate is 1.94%, and it has, astonishingly, grown fivefold since the beginning of 2007. In a typical year, a bank should expect to lose about 32 cents for every $100 it lends. Right now, however, banks are losing $1.94 on $100 in loans.<br />
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This problem is made worse by bank's deteriorating financial condition. At the beginning of 2007, banks had $1.80 in cash reserves for every dollar of loans that were past due. So even if all those loans went belly up -- and not all past-due loans will -- the banks were more than covered. Today, banks have only about 80 cents for every dollar of problem loans. <br />
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Don't kid yourself into thinking that the worst of the financial crisis has passed. For some banks, it's just beginning. Eating all those bad loans is hurting all banks, and many more are going to fail. The Federal Deposit Insurance Corp. (FDIC) says 77% of banks are profitable. But that leaves 23% that are bleeding cash.<br />
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The FDIC currently has 775 banks on its "Problem Bank" list. So far this year, 90 banks have failed, about half of which did so in the second quarter. That's a truly frightening number by historical standards: About a third of the banks that have failed since 2000 did so in the first 5 months of 2010. <br />
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The FDIC does not release its problem loans list, it only says how many banks are on it. But using a special ratio that measures a bank's problem loans (the precursor to the loans that are eventually charged off), investors can determine with a high degree of accuracy whether their bank is safe.<br />
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It's called the "Texas ratio." It was developed by a financial wizard at RBC Capital Markets, who used it to correctly predict bank failures in Texas during the 1980s recession, and again in New England in the recession of the early 1990s.<br />
<br />
The Texas ratio is determined by dividing the bank's non-performing assets by its tangible common equity and loan-loss reserves. Tangible common is equity capital less goodwill and intangibles. As the ratio approaches 1.0, the bank's risk of failure rises.<br />
<br />
Every bank that has failed in the second quarter has had a Texas ratio of greater than 0.90. In fact the average was about 5.0.<br />
<br />
Bank failures are announced on Friday afternoons, after the close of the week's business. On June 5, Bloomberg news reported that three banks had failed: TierOne Bank in Nebraska, Arcola Homestead Savings Bank in Illinois and First National of Rosedale, Mississippi.<br />
<br />
Frankly, none of these failures should have come as a surprise. After all, Rosedale had the highest Texas ratio of any bank in the country, at 15.78. TierOne's ratio was 4.05, and Arcola's was 0.91.<br />
<br />
Investors simply cannot afford not to know if their bank is one of the 433 banks I've identified as being in grave danger of failing. It's crucial that all investors view the list of banks to ensure that their money is safe. And if your bank has a high or even a higher-than-average Texas ratio, then for heaven's sake go in tomorrow and close your accounts. It's always best to get out of Dodge ahead of the posse.<br />
<br />
Using this highly accurate barometer of bank health, I've not only reassured myself that my own banks are safe and sound, I've also made a list of the top ten banks most likely to fail. If you bank at one of these institutions or have friends or loved ones who do, please pass this information along to them:<br />
<br />
<b>The Top Ten Banks in Danger of Failure as of June 9, 2010 are:</b><br />
<b><br />
</b><br />
<b>1. USA Bank, Port Chester, NY -- FAILED 7/9/10</b><br />
<b>2. First Commerce Community Bank, Douglasville, GA</b><br />
<b>3. SouthWestUSA Bank, Las Vegas, NV</b><br />
<b>4. High Desert State Bank, Albuquerque, NM -- FAILED 6/25/10</b><br />
<b>5. Bank of Ellijay, Ellijay, CA</b><br />
<b>6. Eastern Savings Bank, Hunt Valley, MD</b><br />
<b>7. ISN Bank, Cherry Hill, NJ</b><br />
<b>8. Habersham Bank, Clarksville, GA</b><br />
<b>9. Zions Bank, Salt Lake City, Utah </b><br />
<b>10. First National, Savannah, GA -- FAILED 6/25/10</b><br />
<br />
I don't want to see any bank go under. But the fact is many have and many more will as the financial system works through its mountain of bad loans. The best way to predict which banks are in hot water is to use the Texas ratio.<br />
<br />
<b>One bit of good news is that the 20 publicly traded banks in the S&P 500 have low Texas ratios.</b><br />
<b>Institution Ticker Texas Ratio</b><br />
<b>Northern Trust NTRS 0.04</b><br />
<b>Peoples United PBCT 0.11</b><br />
<b>Hudson City Bancorp HCBK 0.15</b><br />
<b>Comerica CMA 0.20</b><br />
<b>Fifth Third FITB 0.23</b><br />
<b>Citigroup C 0.25</b><br />
<b>Keybank KEY 0.27</b><br />
<b>M&T MT 0.29</b><br />
<b>First Horizon FHN 0.32</b><br />
<b>Marshall & Isley MI 0.37</b><br />
<b>Regions Financial RF 0.37</b><br />
<b>Zion Bancorp ZION 0.42</b><br />
<b>J.P. Morgan Chase JPM 0.45</b><br />
<b>PNC Financial PNC 0.45</b><br />
<b>BB&T BBT 0.45</b><br />
<b>Huntington HBAN 0.48</b><br />
<b>Suntrust STI 0.54</b><br />
<b>Bank of America BAC 0.55</b><br />
<b>US Bank USB 0.60</b><br />
<b>Wells Fargo WFC 0.64</b><br />
<br />
These large banks are strong. Too many others, however, are not. Please scroll down to see the list of 433 U.S. banks in danger of failing immediately, and ensure that your money is safe.<br />
<br />
And again, if you have friends or loved ones who bank at one of the listed institutions, please pass this information along to them promptly via the "email" button at the bottom of this page.<br />
<br />
<br />
<br />
Texas Ratio, Name and City and State<br />
<br />
<b>2.88 Nexity Bank Birmingham AL</b><br />
<b>1.47 North Alabama Bank Hazel Green AL</b><br />
<b>1.38 First Tuskegee Bank Tuskegee AL</b><br />
<b>1.31 Community Bank and Trust - Alabama Union Springs AL</b><br />
<b>1.10 EvaBank Eva AL</b><br />
<b>1.06 First Financial Bank Bessemer AL</b><br />
<b>0.90 SunSouth Bank Dothan AL</b><br />
<b>1.71 Metropolitan National Bank Little Rock AR</b><br />
<b>1.19 First Federal Bank Harrison AR</b><br />
<b>1.14 Pinnacle Bank Rogers AR</b><br />
<b>2.98 Copper Star Bank Scottsdale AZ</b><br />
<b>2.95 Sunrise Bank of Arizona Phoenix AZ</b><br />
<b>1.92 Legacy Bank Scottsdale AZ</b><br />
<b>1.73 SunBank, National Association Phoenix AZ</b><br />
<b>1.20 Central Arizona Bank Casa Grande AZ</b><br />
<b>1.15 First Arizona Savings, A FSB Scottsdale AZ</b><br />
<b>2.64 Palm Desert National Bank Palm Desert CA</b><br />
<b>2.63 First Vietnamese American Bank Westminster CA</b><br />
<b>2.53 Butte Community Bank Chico CA</b><br />
<b>1.91 Canyon National Bank Palm Springs CA</b><br />
<b>1.85 Western Commercial Bank Woodland Hills CA</b><br />
<b>1.77 Ventura County Business Bank Oxnard CA</b><br />
<b>1.68 Delta Bank, National Association Manteca CA</b><br />
<b>1.56 Pacific State Bank Stockton CA</b><br />
<b>1.37 Preferred Bank Los Angeles CA</b><br />
<b>1.33 San Luis Trust Bank, FSB San Luis Obispo CA</b><br />
<b>1.27 Golden Security Bank Rosemead CA</b><br />
<b>1.25 Borrego Springs Bank, National Association La Mesa CA</b><br />
<b>1.19 Mission Oaks National Bank Temecula CA</b><br />
<b>1.18 Sonoma Valley Bank Sonoma CA</b><br />
<b>1.14 Los Padres Bank Solvang CA</b><br />
<b>1.07 Professional Business Bank Pasadena CA</b><br />
<b>1.00 Citizens Bank of Northern California Nevada City CA</b><br />
<b>2.89 FirsTier Bank Louisville CO</b><br />
<b>2.32 Rocky Mountain Bank & Trust Florence Florence CO</b><br />
<b>1.41 Signature Bank Windsor CO</b><br />
<b>1.19 Park State Bank & Trust Woodland Park CO</b><br />
<b>1.18 The Pueblo Bank and Trust Company Pueblo CO</b><br />
<b>1.12 Advantage Bank Loveland CO</b><br />
<b>1.06 Peoples National Bank Colorado Springs CO</b><br />
<b>1.01 Pikes Peak National Bank Colorado Springs CO</b><br />
<b>0.97 Bank of Choice Greeley CO</b><br />
<b>0.96 Integrity Bank & Trust Monument CO</b><br />
<b>0.96 Champion Bank Parker CO</b><br />
<b>2.35 Patriot National Bank Stamford CT</b><br />
<b>1.44 The Wilton Bank Wilton CT</b><br />
<b>1.46 Adams National Bank Washington DC</b><br />
<b>1.30 Independence Federal Savings Bank Washington DC</b><br />
<b>4.46 Peninsula Bank -- Failed 6/25/10 Englewood FL</b><br />
<b>3.96 Coastal Community Bank Panama City Beach FL</b><br />
<b>3.45 Haven Trust Bank Florida Ponte Vedra Beach FL</b><br />
<b>3.42 Gulf State Community Bank Carrabelle FL</b><br />
<b>3.19 Olde Cypress Community Bank Clewiston FL</b><br />
<b>2.71 Turnberry Bank Aventura FL</b><br />
<b>2.62 Metro Bank of Dade County Miami FL</b><br />
<b>2.44 Independent National Bank Ocala FL</b><br />
<b>2.37 Progress Bank of Florida Tampa FL</b><br />
<b>2.32 The First National Bank of Florida Milton FL</b><br />
<b>2.22 Horizon Bank Bradenton FL</b><br />
<b>2.18 First Guaranty Bank and Trust Company of Jacksonville Jacksonville FL</b><br />
<b>2.14 Community National Bank of Bartow Bartow FL</b><br />
<b>2.11 Putnam State Bank Palatka FL</b><br />
<b>2.09 Sterling Bank Lantana FL</b><br />
<b>2.07 Coastal Bank Merritt Island FL</b><br />
<b>2.05 Home Federal Bank of Hollywood Hallandale Beach FL</b><br />
<b>1.92 Bayside Savings Bank Port Saint Joe FL</b><br />
<b>1.90 The Bank of Miami, National Association Coral Gables FL</b><br />
<b>1.78 Federal Trust Bank Sanford FL</b><br />
<b><br />
</b><br />
<b>1.74 Beach Community Bank Fort Walton Beach FL</b><br />
<b>1.68 Gulf Coast Community Bank Pensacola FL</b><br />
<b>1.67 First National Bank of Central Florida Winter Park FL</b><br />
<b>1.64 Cortez Community Bank Brooksville FL</b><br />
<b>1.63 First Bank of Jacksonville Jacksonville FL</b><br />
<b>1.55 Ocean Bank Miami FL</b><br />
<b>1.55 Sunshine State Community Bank Port Orange FL</b><br />
<b>1.55 Sunrise Bank Cocoa Beach FL</b><br />
<b>1.54 Security Bank, National Association North Lauderdale FL</b><br />
<b>1.50 Wakulla Bank Crawfordville FL</b><br />
<b>1.49 Heritage Bank of North Florida Orange Park FL</b><br />
<b>1.47 First Commercial Bank of Florida Orlando FL</b><br />
<b>1.46 First City Bank of Florida Fort Walton Beach FL</b><br />
<b>1.39 Southern Commerce Bank, National Association Tampa FL</b><br />
<b>1.37 OptimumBank Plantation FL</b><br />
<b>1.33 LandMark Bank of Florida Sarasota FL</b><br />
<b>1.32 EuroBank Coral Gables FL</b><br />
<b>1.31 Bank of Coral Gables Coral Gables FL</b><br />
<b>1.30 Vision Bank Panama City FL</b><br />
<b>1.26 First Peoples Bank Port St. Lucie FL</b><br />
<b>1.23 BankUnited Miami Lakes FL</b><br />
<b>1.23 Florida Capital Bank, National Association Jacksonville FL</b><br />
<b>1.16 Southshore Community Bank Apollo Beach FL</b><br />
<b>1.14 First National Bank of Crestview Crestview FL</b><br />
<b>1.13 First East Side Savings Bank Tamarac FL</b><br />
<b>1.12 First Commercial Bank of Tampa Bay Tampa FL</b><br />
<b>1.09 Great Florida Bank Coral Gables FL</b><br />
<b>1.06 The Bank of Commerce Sarasota FL</b><br />
<b>1.06 Bank of Jackson County Graceville FL</b><br />
<b>1.04 TransCapital Bank Hallandale Beach FL</b><br />
<b>1.03 Fidelity Bank of Florida, National Association Merritt Island FL</b><br />
<b>1.01 Great Eastern Bank of Florida Miami FL</b><br />
<b>0.94 Central Florida State Bank Belleview FL</b><br />
<b>0.93 TIB Bank Naples FL</b><br />
<b>0.93 Independent Banker's Bank of Florida Lake Mary FL</b><br />
<b>0.91 Community Bank of Manatee Lakewood Ranch FL</b><br />
<b>0.90 U. S. Century Bank Doral FL</b><br />
<b>0.90 The Royal Palm Bank of Florida Naples FL</b><br />
<b>5.67 First Commerce Community Bank Douglasville GA</b><br />
<b>4.90 Bank of Ellijay Ellijay GA</b><br />
<b>4.61 Habersham Bank Clarkesville GA</b><br />
<b>4.54 First National Bank -- Failed 6/25/10 Savannah GA</b><br />
<b>4.18 North Georgia Bank Watkinsville GA</b><br />
<b>4.11 Crescent Bank and Trust Company Jasper GA</b><br />
<b>4.04 Chestatee State Bank Dawsonville GA</b><br />
<b>3.80 Montgomery Bank & Trust Ailey GA</b><br />
<b>3.80 High Trust Bank Stockbridge GA</b><br />
<b>3.68 The First State Bank Stockbridge GA</b><br />
<b>3.57 American Trust Bank Roswell GA</b><br />
<b>3.52 Security Exchange Bank Marietta GA</b><br />
<b>3.49 The Gordon Bank Gordon GA</b><br />
<b>3.37 Douglas County Bank Douglasville GA</b><br />
<b>3.30 Northwest Bank & Trust Acworth GA</b><br />
<b>3.14 McIntosh State Bank Jackson GA</b><br />
<b>2.90 First Cherokee State Bank Woodstock GA</b><br />
<b>2.83 Mountain Heritage Bank Clayton GA</b><br />
<b>2.64 The Park Avenue Bank Valdosta GA</b><br />
<b>2.60 Enterprise Banking Company Mcdonough GA</b><br />
<b>2.48 Darby Bank & Trust Co. Vidalia GA</b><br />
<b>2.46 Appalachian Community Bank, F.S.B. McCaysville GA</b><br />
<b>2.43 Gwinnett Community Bank Duluth GA</b><br />
<b>2.42 The Peoples Bank Winder GA</b><br />
<b>2.42 Atlantic Southern Bank Macon GA</b><br />
<b>2.32 Hometown Community Bank Braselton GA</b><br />
<b>2.32 The Peoples Bank Covington GA</b><br />
<b>2.30 Sunrise Bank of Atlanta Atlanta GA</b><br />
<b>2.16 Piedmont Community Bank Gray GA</b><br />
<b>2.03 Oglethorpe Bank Brunswick GA</b><br />
<b>1.93 Providence Bank Alpharetta GA</b><br />
<b>1.90 CreekSide Bank Woodstock GA</b><br />
<b>1.84 Community Bank and Trust - West Georgia Lagrange GA</b><br />
<b>1.82 Citizens Bank of Effingham Springfield GA</b><br />
<b>1.77 United Americas Bank, National Association Atlanta GA</b><br />
<b>1.75 Patriot Bank of Georgia Cumming GA</b><br />
<b>1.72 WestSide Bank Hiram GA</b><br />
<b>1.70 Farmers & Merchants Bank Lakeland GA</b><br />
<b>1.69 Peoples Bank & Trust Buford GA</b><br />
<b>1.65 Northside Bank Adairsville GA</b><br />
<b>1.64 PlantersFIRST Cordele GA</b><br />
<b>1.64 State Bank and Trust Company Macon GA</b><br />
<b>1.60 Decatur First Bank Decatur GA</b><br />
<b>1.59 First Citizens Bank of Georgia Dawsonville GA</b><br />
<b>1.52 Community & Southern Bank Carrollton GA</b><br />
<b>1.51 Community Capital Bank Jonesboro GA</b><br />
<b>1.50 Georgia Trust Bank Buford GA</b><br />
<b>1.49 The First National Bank of Barnesville Barnesville GA</b><br />
<b>1.48 Heritage Bank Jonesboro GA</b><br />
<b>1.43 Legacy State Bank Loganville GA</b><br />
<b>1.41 Central Bank of Georgia Ellaville GA</b><br />
<b>1.41 Capitol City Bank & Trust Company Atlanta GA</b><br />
<b>1.39 First Georgia Banking Company Franklin GA</b><br />
<b>1.39 Bartow County Bank Cartersville GA</b><br />
<b>1.37 Citizens State Bank Kingsland GA</b><br />
<b>1.37 New Horizons Bank East Ellijay GA</b><br />
<b>1.37 CharterBank West Point GA</b><br />
<b>1.37 Community Bank of Rockmart Rockmart GA</b><br />
<b>1.28 Eastside Commercial Bank Conyers GA</b><br />
<b>1.28 Bank of Newington Newington GA</b><br />
<b>1.25 One Georgia Bank Atlanta GA</b><br />
<b>1.24 Georgia Heritage Bank Dallas GA</b><br />
<b>1.22 The Farmers Bank Forsyth GA</b><br />
<b>1.21 Tifton Banking Company Tifton GA</b><br />
<b>1.12 Jasper Banking Company Jasper GA</b><br />
<b>1.11 The Piedmont Bank Lawrenceville GA</b><br />
<b>1.09 Covenant Bank & Trust Rock Spring GA</b><br />
<b>1.08 Frontier Bank Lagrange GA</b><br />
<b>1.07 First Covenant Bank Norcross GA</b><br />
<b>1.05 First National Bank of Griffin Griffin GA</b><br />
<b>1.04 The First National Bank of Chatsworth Chatsworth GA</b><br />
<b>1.01 First State Bank Wrens GA</b><br />
<b>0.98 Northwest Georgia Bank Ringgold GA</b><br />
<b>0.97 The Patterson Bank Patterson GA</b><br />
<b>0.96 Farmers & Merchants Bank Statesboro GA</b><br />
<b>0.95 Community Bank of the South Smyrna GA</b><br />
<b>0.94 Bank of North Georgia Alpharetta GA</b><br />
<b>0.93 PrimeSouth Bank Blackshear GA</b><br />
<b>0.92 Global Commerce Bank Doraville GA</b><br />
<b>0.92 Signature Bank of Georgia Sandy Springs GA</b><br />
<b>0.90 CornerstoneBank Atlanta GA</b><br />
<b>1.10 Central Pacific Bank Honolulu HI</b><br />
<b>2.24 Polk County Bank Johnston IA</b><br />
<b>1.38 State Central Bank Keokuk IA</b><br />
<b>1.19 VisionBank of Iowa West Des Moines IA</b><br />
<b>1.18 Patriot Bank Brooklyn IA</b><br />
<b>1.18 First Bank West Des Moines IA</b><br />
<b>1.10 First National Bank Midwest Oskaloosa IA</b><br />
<b>1.03 Idaho Banking Company Boise ID</b><br />
<b>0.98 Syringa Bank Boise ID</b><br />
<b>4.59 Ravenswood Bank Chicago IL</b><br />
<b>4.00 Family Federal Savings of Illinois Cicero IL</b><br />
<b>3.71 Builders Bank Chicago IL</b><br />
<b>3.47 First Suburban National Bank Maywood IL</b><br />
<b>3.16 ShoreBank Chicago IL</b><br />
<b>2.97 Palos Bank and Trust Company Palos Heights IL</b><br />
<b>2.63 Valley Community Bank St. Charles IL</b><br />
<b>2.57 The Bank of Commerce Wood Dale IL</b><br />
<b>2.45 American Metro Bank Chicago IL</b><br />
<b>2.35 First National Bank of Brookfield Brookfield IL</b><br />
<b>2.31 Western Springs National Bank and Trust Western Springs IL</b><br />
<b>2.05 CenTrust Bank, National Association Northbrook IL</b><br />
<b>1.73 Community First Bank - Chicago Chicago IL</b><br />
<b>1.68 Second Federal Savings and Loan Association of Chicago Chicago IL</b><br />
<b>1.64 First Bank and Trust Company of Illinois Palatine IL</b><br />
<b>1.38 The First Commercial Bank Chicago IL</b><br />
<b>1.37 Edgebrook Bank Chicago IL</b><br />
<b>1.36 Baytree National Bank & Trust Company Lake Forest IL</b><br />
<b>1.23 Chicago Community Bank Chicago IL</b><br />
<b>1.23 Oxford Bank & Trust Oak Brook IL</b><br />
<b>1.21 American Enterprise Bank Buffalo Grove IL</b><br />
<b>1.20 FirstSecure Bank and Trust Co. Palos Hills IL</b><br />
<b>1.17 First Chicago Bank & Trust Itasca IL</b><br />
<b>1.16 PNA Bank Chicago IL</b><br />
<b>1.15 First Choice Bank Geneva IL</b><br />
<b>1.12 Archer Bank Chicago IL</b><br />
<b>1.06 Norstates Bank Waukegan IL</b><br />
<b>1.05 Charter National Bank and Trust Hoffman Estates IL</b><br />
<b>1.04 DuPage National Bank West Chicago IL</b><br />
<b>1.02 All American Bank Des Plaines IL</b><br />
<b>1.00 AztecAmerica Bank Berwyn IL</b><br />
<b>0.99 Inland Bank and Trust Oak Brook IL</b><br />
<b>0.99 Union National Bank and Trust Company of Elgin Elgin IL</b><br />
<b>0.95 First Security Trust and Savings Bank Elmwood Park IL</b><br />
<b>0.94 Downers Grove National Bank Westmont IL</b><br />
<b>0.90 The Elgin State Bank Elgin IL</b><br />
<b>0.90 Community Bank of Oak Park River Forest Oak Park IL</b><br />
<b>1.06 Integra Bank National Association Evansville IN</b><br />
<b>2.47 Hillcrest Bank Overland Park KS</b><br />
<b>2.46 The First National Bank of Olathe Olathe KS</b><br />
<b>1.64 Security Savings Bank, F.S.B. Olathe KS</b><br />
<b>1.20 Armed Forces Bank, National Association Fort Leavenworth KS</b><br />
<b>1.18 Roxbury Bank Roxbury KS</b><br />
<b>1.17 1st Financial Bank Overland Park KS</b><br />
<b>1.12 Heritage Bank Topeka KS</b><br />
<b>0.96 First National Bank & Trust Company in Larned Larned KS</b><br />
<b>0.93 Alliant Bank Sedgwick KS</b><br />
<b>1.36 Citizens Commerce National Bank Versailles KY</b><br />
<b>0.99 Citizens Union Bank of Shelbyville Shelbyville KY</b><br />
<b>2.09 Central Progressive Bank Lacombe LA</b><br />
<b>1.43 Iberiabank Lafayette LA</b><br />
<b>1.13 First National Bank USA Boutte LA</b><br />
<b>1.15 Stoneham Savings Bank Stoneham MA</b><br />
<b>4.86 Eastern Savings Bank, FSB Hunt Valley MD</b><br />
<b>2.22 K Bank -- Failed 7/9/10 Randallstown MD</b><br />
<b>2.01 Bay National Bank Baltimore MD</b><br />
<b>1.40 Colombo Bank Rockville MD</b><br />
<b>1.24 CFG Community Bank Baltimore MD</b><br />
<b>1.20 Bank of the Eastern Shore Cambridge MD</b><br />
<b>1.13 Hull Federal Savings Bank Baltimore MD</b><br />
<b>1.03 Border Trust Company Augusta ME</b><br />
<b>2.43 Mainstreet Savings Bank, FSB Hastings MI</b><br />
<b>2.16 Flagstar Bank, FSB Troy MI</b><br />
<b>1.82 Peoples State Bank Hamtramck MI</b><br />
<b>1.57 Michigan Commerce Bank Ann Arbor MI</b><br />
<b>1.52 First National Bank in Howell Howell MI</b><br />
<b>1.36 Oxford Bank Oxford MI</b><br />
<b>1.31 Fidelity Bank Dearborn MI</b><br />
<b>1.19 Clarkston State Bank Clarkston MI</b><br />
<b>1.16 Select Bank Grand Rapids MI</b><br />
<b>1.09 Capitol National Bank Lansing MI</b><br />
<b>0.93 West Michigan Community Bank Hudsonville MI</b><br />
<b>3.20 Community Security Bank New Prague MN</b><br />
<b>2.52 Home Savings of America Little Falls MN</b><br />
<b>2.28 The RiverBank Wyoming MN</b><br />
<b>2.25 First Resource Bank Savage MN</b><br />
<b>1.67 Premier Bank Minnesota Farmington MN</b><br />
<b>1.61 Riverland Bank Jordan MN</b><br />
<b>1.61 State Bank of Cokato Cokato MN</b><br />
<b>1.56 Community National Bank Lino Lakes MN</b><br />
<b>1.46 Rosemount National Bank Rosemount MN</b><br />
<b>1.41 BankCherokee Saint Paul MN</b><br />
<b>1.41 Premier Bank Maplewood MN</b><br />
<b>1.35 Eagle Community Bank Maple Grove MN</b><br />
<b>1.31 Inter Savings Bank, fsb D/B/A Interbank Maple Grove MN</b><br />
<b>1.26 Park State Bank Duluth MN</b><br />
<b>1.24 Americana Community Bank Sleepy Eye MN</b><br />
<b>1.23 Premier Bank Rochester Rochester MN</b><br />
<b>1.22 First Commercial Bank Bloomington MN</b><br />
<b>1.21 1st Regents Bank Andover MN</b><br />
<b>1.18 State Bank of Delano Delano MN</b><br />
<b>1.17 Minnwest Bank Metro Eagan MN</b><br />
<b>1.00 Maple Bank Champlin MN</b><br />
<b>0.98 BankWest Rockford MN</b><br />
<b>0.95 Great Northern Bank Saint Michael MN</b><br />
<b>0.94 Highland Bank Saint Michael MN</b><br />
<b>0.93 Boundary Waters Bank Ely MN</b><br />
<b>0.93 Patriot Bank Minnesota Wyoming MN</b><br />
<b>0.91 Lake Country Community Bank Morristown MN</b><br />
<b>0.90 Lakeview Bank Lakeville MN</b><br />
<b>3.26 Premier Bank Jefferson City MO</b><br />
<b>2.45 Westbridge Bank and Trust Chesterfield MO</b><br />
<b>1.86 Sun Security Bank Ellington MO</b><br />
<b>1.77 Bank Midwest, National Association Kansas City MO</b><br />
<b>1.48 The Bank of Macks Creek Macks Creek MO</b><br />
<b>1.37 Community Bank of the Ozarks Sunrise Beach MO</b><br />
<b>1.29 Citizens National Bank of Springfield Springfield MO</b><br />
<b>1.25 Meramec Valley Bank Valley Park MO</b><br />
<b>1.22 Truman Bank St. Louis MO</b><br />
<b>1.21 1st Advantage Bank Saint Peters MO</b><br />
<b>1.17 Village Bank Springfield MO</b><br />
<b>1.13 Heartland Bank Saint Louis MO</b><br />
<b>0.96 Bank of Belton Belton MO</b><br />
<b>0.93 Patriots Bank Liberty MO</b><br />
<b>1.08 Heritage Banking Group Carthage MS</b><br />
<b>1.29 American Bank Bozeman MT</b><br />
<b>1.22 Bank of Bozeman Bozeman MT</b><br />
<b>1.22 Freedom Bank Columbia Falls MT</b><br />
<b>1.19 First Citizens Bank of Polson, National Association Polson MT</b><br />
<b>0.93 Bank of The Rockies, National Association White Sulphur Springs MT</b><br />
<b>0.90 Mountain West Bank, National Association Helena MT</b><br />
<b>3.13 Pisgah Community Bank Asheville NC</b><br />
<b>2.52 Blue Ridge Savings Bank, Inc. Asheville NC</b><br />
<b>1.33 Nantahala Bank & Trust Company Franklin NC</b><br />
<b>1.26 Communityone Bank, National Association Asheboro NC</b><br />
<b>1.20 Security Savings Bank, SSB Southport NC</b><br />
<b>1.13 The Bank of Currituck Moyock NC</b><br />
<b>1.12 The Bank of Asheville Asheville NC</b><br />
<b>1.12 Cornerstone Bank Wilson NC</b><br />
<b>1.09 Bank of Granite Granite Falls NC</b><br />
<b>0.98 Waccamaw Bank Whiteville NC</b><br />
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<b><br />
</b><br />
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<b>1.84 Earthstar Bank Southampton PA</b><br />
<b>1.58 First CornerStone Bank King Of Prussia PA</b><br />
<b>1.53 Allegiance Bank of North America Bala Cynwyd PA</b><br />
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<b>0.96 Nextier Bank, National Association Evans City PA</b><br />
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<b>3.85 First National Bank of the South Spartanburg SC</b><br />
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<b>1.66 Plantation Federal Bank Pawleys Island SC</b><br />
<b>1.65 CommunitySouth Bank and Trust Easley SC</b><br />
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<b>1.52 The Palmetto Bank Laurens SC</b><br />
<b>1.46 First South Bank Spartanburg SC</b><br />
<b>1.42 BankMeridian, N.A. Columbia SC</b><br />
<b>1.11 South Carolina Community Bank Columbia SC</b><br />
<b>1.46 First Midwest Bank Centerville SD</b><br />
<b>3.15 American Patriot Bank Greeneville TN</b><br />
<b>1.40 Sevier County Bank Sevierville TN</b><br />
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<b>1.00 Bank of Bartlett Bartlett TN</b><br />
<b>0.95 Tennessee State Bank Pigeon Forge TN</b><br />
<b>0.94 Bank of Lincoln County Fayetteville TN</b><br />
<b>1.70 Jefferson Bank Dallas TX</b><br />
<b>1.51 Prosper Bank Prosper TX</b><br />
<b>1.43 United Central Bank Garland TX</b><br />
<b>1.35 Equity Bank,SSB Dallas TX</b><br />
<b>1.31 Colonial Savings, F.A. Fort Worth TX</b><br />
<b>1.12 United Community Bank, National Association Highland Village TX</b><br />
<b>0.94 Inter National Bank Mcallen TX</b><br />
<b>0.93 Town Center Bank Coppell TX</b><br />
<b>2.39 Gunnison Valley Bank Gunnison UT</b><br />
<b>2.08 Western Community Bank Orem UT</b><br />
<b>1.40 The Village Bank Saint George UT</b><br />
<b>1.23 First Utah Bank Salt Lake City UT</b><br />
<b>1.18 SunFirst Bank Saint George UT</b><br />
<b>1.07 Holladay Bank & Trust Salt Lake City UT</b><br />
<b>1.19 Millennium Bank, National Association Sterling VA</b><br />
<b>1.10 The Peoples Bank Ewing VA</b><br />
<b>0.96 Consolidated Bank and Trust Company Richmond VA</b><br />
<b>3.13 Washington First International Bank -- Failed 6/11/2010 Seattle WA</b><br />
<b>2.58 HomeStreet Bank Seattle WA</b><br />
<b>2.58 Seattle Bank Seattle WA</b><br />
<b>2.47 North County Bank Arlington WA</b><br />
<b>2.33 First Sound Bank Seattle WA</b><br />
<b>2.13 Shoreline Bank Shoreline WA</b><br />
<b>1.98 Regal Financial Bank Seattle WA</b><br />
<b>1.78 AmericanWest Bank Spokane WA</b><br />
<b>1.72 The Cowlitz Bank Longview WA</b><br />
<b>1.56 Viking Bank Seattle WA</b><br />
<b>1.46 Sterling Savings Bank Spokane WA</b><br />
<b>1.33 The Bank of Washington Lynnwood WA</b><br />
<b>1.20 First Heritage Bank Snohomish WA</b><br />
<b>1.16 Mountain Pacific Bank Everett WA</b><br />
<b>1.12 Business Bank Burlington WA</b><br />
<b>1.07 Bank of Whitman Colfax WA</b><br />
<b>1.04 Prime Pacific Bank, National Association Lynnwood WA</b><br />
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<b>0.90 Cascade Bank Everett WA</b><br />
<b>3.10 Maritime Savings Bank West Allis WI</b><br />
<b>1.40 Citizens State Bank Hudson WI</b><br />
<b>1.34 First Banking Center Burlington WI</b><br />
<b>1.20 Badger State Bank Cassville WI</b><br />
<b>1.18 Southport Bank Kenosha WI</b><br />
<b>1.17 AnchorBank Madison WI</b><br />
<b>1.13 Security State Bank Iron River WI</b><br />
<b>1.04 Eagle Valley Bank, National Association St. Croix Falls WI</b><br />
<br />
Legal Disclaimer:<br />
<br />
Robert Paisola, as an individual nor does Western Capital International or it's affiliate organizations does not own shares of any security mentioned in this article No information in this article should be construed as fact, and you are encouraged to do your own due diligence. <br />
<br />
About The Author:<br />
<a href="http://ezinearticles.com/?expert_bio=Robert_Paisola"><b>http://ezinearticles.com/?expert_bio=Robert_Paisola</b></a>Robert Paisolahttp://www.blogger.com/profile/00435871035547197331noreply@blogger.com0tag:blogger.com,1999:blog-6210684848441244744.post-65916940689876973272011-07-03T00:13:00.000-06:002011-07-03T00:13:35.838-06:00Real Estate Riches through Illegal Flipping of Properties ; Robert Paisola Reports The Facts<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgP8KmgqkUwLFRU-5ZGeHrxtK2L2dALZ2cXoqlCjMFZlKLa6JgcTk47hRdJBI0dYsl27jR4WSJHUtHDmq2HJwQFq50756qn4uBLYxvTM3YCJIxLWKLxflE7NcLFuQR_SBv1E6HaNsup6kdi/s1600/realestatefraud.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="255" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgP8KmgqkUwLFRU-5ZGeHrxtK2L2dALZ2cXoqlCjMFZlKLa6JgcTk47hRdJBI0dYsl27jR4WSJHUtHDmq2HJwQFq50756qn4uBLYxvTM3YCJIxLWKLxflE7NcLFuQR_SBv1E6HaNsup6kdi/s400/realestatefraud.jpg" width="400" /></a></div><br />
Carleton Sheets Scam Details 2011<br />
<br />
Over the past 5 years, I have ordered the real estate investing packages from Carleton Sheets and John/Greg Rice (the midget realtors). While I did not get taken in to pay more for the “one-on-one” training or the “exclusive seminars,” I know I wasted over $250 on the introductory packages. It took me several years of trying to use the offered concepts and strategies to realize it was nonsense. I was confused and frustrated that the folks on the infomercials made the system work and I could not. I thought that if real estate investing worked anywhere, it would certainly work in Las Vegas where I live? By the time I realized the stuff was crap it was too late to get my money back!<br />
<br />
The “light of day” finally broke through after I got married to an experienced mortgage broker. My new wife found my Carleton Sheets stuff hidden in a garage sale box and laughed. I told her that I didn't see what was funny. I had spent nearly 3 years before we met trying this stuff to no luck! She sat me down and explained exactly why Carleton Sheets' system as well as a dozen other similar systems may have worked 5 years ago, but none of them will ever work today. In about 1 hour I got a lesson in the reality of investment real estate mortgage financing. Here is what I learned from my new wife, a mortgage broker for over 12 years in Nevada, Arizona and Colorado. I talked with 4 other mortgage brokers in her office and got the same information.<br />
<br />
Prior to 1998, it was possible to buy a property, fix it up quickly and cheaply, and then resell it for $10,000s in profit. Now known as “flipping,” many mortgage lenders did not care as long as the property appraised out at the higher value. What turned the tides on this “money making” industry was the incredible increase in foreclosures that began in 1999 and has blossomed over the last 4 years. Mortgage lenders that had refinanced properties valued at $100,000 were finding them to be worth lots less when they went to foreclosure. As more properties went into foreclosure, property values dropped. (Property value is based partly on the previous sale of comparable properties.) It doesn't take banks long losing money to change.<br />
<br />
Since 2001, states have begun to implement “anti-flipping” laws that go after real estate investors and appraisers who artificially inflate property values. Appraisers must now look for comparable properties within a 1 or 2 mile radius of the subject property to get fair market values. Many states now require anyone selling more than a few properties a year to obtain a real estate broker's license. As of 2003, my wife could not think of any mortgage lender that would refinance a property for cash out if the property was owned for less than 6 months and most require 12 months. Even then, the owner had to show real receipts for improvements!<br />
<br />
If someone had to sell their home after less than 12 months residency in it, the original purchase price would be used as the appraised value. Also, people hoping to buy homes below their appraised value and then get the difference as cash at closing will be sad to know it can't be done! Mortgage lenders will lend money based on a property's purchase price or appraised value at time of sale – whichever is LOWER.<br />
<br />
Flipping real estate became such a money loser for mortgage lenders that they have refused to do the loans! Anyone wanting to engage in flipping real estate for big money will have to find a source of funding other than banks and credit unions! Good luck - those are few and far between and charge too much in interest! My wife explained that nearly all of the Carleton Sheets-type real estate investment schemes rely on long gone mortgage financing before the anti-flipping laws.<br />
<br />
Also, many “real estate investment gurus” recommend making deals with property owners and have the owner do the financing while you make payments to the owner over several years and then sell the property and pay the owner a lump sum out of the proceeds. My wife says that she has never known a property owner who wanted to engage in that type of deal. If the investment property is making money without the new buyer, then why should the owner enter into a deal that will require higher rents to make 2 people money instead of one?<br />
<br />
Finally, my wife and her colleagues in her office made a very common, but sound observation. If someone has a truly profitable unique real estate investment program – why aren't those folks still doing it full time instead of “teaching” others. The money Carleton Sheets and all others like him make is out of selling information to fools who believe it will work. The successful students often made their money before the anti-flipping laws and now have either gone to work for their teachers selling outdated information OR have gone into the “real estate investment teaching” business themselves.<br />
<br />
One of my wife's fellow brokers did come across a company that puts out a guide to real estate investment using current mortgage financing rules. I read the guide and found it interesting. It was meant for people who want to buy investment property and hold it for rental income or sell off a property or 2 ever couple of years. It was definitely not for those who still believe they can flip homes for big profits in 60 days. Banks and credit unions won't lend the money!<br />
<br />
If they did, my wife and her colleagues would be making money by handling the purchases!! The flyer I read was from a company called The Corner Source – here is old email thecornersource@msn.com I don't do any real estate investment now, but this guide made sense and my wife says it is good and they don't ask for $1000s for seminars!! Take it for what it is worth. Real Estate Flipping is Illegal and people are in jail for it!!<br />
<br />
David<br />
Las Vegas, Nevada<br />
U.S.A.<br />
<br />
This report was posted on Ripoff Report on 2/10/2004 3:40:39 PM and is a permanent record located here: http://www.ripoffreport.com/tv-advertisements/carleton-sheets/carleton-sheets-real-estate-ri-edj2a.htm.<br />
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REBUTTALS & REPLIES:<br />
1Author 36Consumer 1Employee/Owner<br />
Updates & Rebuttals<br />
<br />
#1 Consumer Comment<br />
Book advocating 'buy and hold' might have more merit<br />
AUTHOR: Joel - Brooklyn (U.S.A.)<br />
<br />
SUBMITTED: Saturday, March 20, 2004<br />
"The Weekend Millionaire's Secrets to Investing in Real Estate" by Mike Sumney and Roger Dawson advocates some of the same ideas such as keeping the price down with seller financing, but is strongly opposed to flipping.<br />
<br />
On the contrary, their whole point is to get rich slowly by buying marginally profitable properties and holding onto them so that they will grow over time into a larger cashflow.<br />
<br />
I'm curious what you and your wife think of this approach. It seems far more reasonable, but still smacks a bit of too good to be true. Besides, these guys claim to be friends of Carleton Sheets. In your wife's experience, does seller financing exist at all? If so, under what conditions?<br />
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#2 Consumer Suggestion<br />
WAKE UP and realize that the vast majority of infomercials are SCAMS<br />
AUTHOR: RJ - Camden (U.S.A.)<br />
<br />
SUBMITTED: Sunday, March 21, 2004<br />
Thanks for making ME rich! You said: "I was confused and frustrated that the folks on the infomercials made the system work and I could not."<br />
<br />
When will people FINALLY WAKE UP and realize that the vast majority of infomercials are SCAMS. The only people making money are the one's SELLING TO YOU.<br />
<br />
The following disclaimers flashed in very small, dull lettering at the bottom of the screen SHOULD BE VERY BIG CLUES:<br />
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RESULTS NOT TYPICAL [NOT REPRESENTATIVE of what to expect.]<br />
<br />
UNIQUE EXPERIENCE [This is the ONLY ONE of its kind.]<br />
<br />
RESULTS WILL VARY [Results will be DIFFERENT!]<br />
<br />
INFOMERCIAL TRANSLATION: If you are dumb enough to buy into this crap, you don't have a snowball's chance in hell of succeeding! But thanks for making ME rich!<br />
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#3 Consumer Comment<br />
To Joel in Brooklyn<br />
AUTHOR: David - Las Vegas (U.S.A.)<br />
<br />
SUBMITTED: Monday, March 22, 2004<br />
Joel:<br />
<br />
My wife says that very few investment property purchases are done with seller financing, because it goes against the very rationale for selling. Seller financing sticks the seller with the mortgage liability, while the buyer gets a portion of the rent and no liability. The contracts drawn up for such scam deals are worthless. The seller gets the mortgage on their credit report and must now pay the bill if the buyer skips town.<br />
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Investment property owners, when they sell a property, are doing so because (1) it is not profitable anymore or (2) want a large portion of cash to go after more profitable properties.<br />
<br />
In either case, why would any serious real estate investors want to take the chance on someone's sloppy seconds?<br />
<br />
My wife and her colleagues agreed that they do not get involved in any of the "real estate gurus" schemes because it always involves skirting around traditional mortgage lending for some reason that is close to being illegal. Or, the terms and complexities of the deal are so huge, that it becomes more trouble than it is worth.<br />
<br />
The real estate investors that have been the most successful and continue to be, according to my wife and her colleagues, are the ones that buy investment properties, hold them for rental income and tax write-offs, and pull the equity out after 3-4 years and use it to buy more. My wife's point is that you will make more money on the difference between rent payments and mortgage payments than you will on the actual property appreciation.<br />
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She says that her investor clients sell properties when they begin to see signs of "rent stagnation." then they sell and move onto better properties.<br />
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She thinks it is better to get income from the rents as it can be written off. Income from property sales gets hit hard with capital gains taxes. Also, she said that over 30 states have adopted laws requiring a real estate broker's license if a person sells more than a certain number of properties in a few years.<br />
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Finally, she said that many of the real estate gurus successful students have reached the same conclusion that the gurus did! It is far easier to make money teaching people about a system than actually doing it. Her colleagues said that they get a half dozen or so calls every month from people wanting to buy investment property with no money down and complete seller financing! All of them get turned away. Figure each of those folks probably spent $1000 or more for the materials and at least one seminar. See how the money adds up? In Vegas, we get at least a "free seminar" every month and people flock in by the 1000s.<br />
<br />
Buy investment property, keep it for rental income, use the accumulating equity as cash for more properties. 95% of all successful real estate investors do the same. Good luck.<br />
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#4 Consumer Comment<br />
In response to David, in Las Vegas, so easy for those who can't make it happen to knock those who are doing it<br />
AUTHOR: Roland - Buffalo (U.S.A.)<br />
<br />
SUBMITTED: Tuesday, March 23, 2004<br />
There are many people who buy the real estate packages from Carleton Sheets, Ron LeGrand, the Rice brothers, and others. Some are successful and some are not.<br />
<br />
I have purchased many packages, attended seminars, and tried the various methodology as proposed by the "guru's." I purchased and sold over 65 properties.<br />
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Most of the methods will indeed work if used. So many buyers of the packages can't get to or past the first step, which is actually making offers.<br />
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David uses "his wife" as his most authoritative source for saying the guru's methods can't be done in today's financing world, due to increases in foreclosures. The increase in foreclosures is not a new phenomenon. The first question that comes to mind is, how many properties has David's wife bought and sold?<br />
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David and his wife have a very myopic view of the world of "flipping," as David calls it. Most people who are successful never go "on the carpet" of a financial institution. There is a myriad of other better means of obtaining financing.<br />
<br />
Most successful real estate entrepreneurs do NOT use bank financing. Bank financing is extremely conservative (for the reasons David mentions) and cumbersome. It is also one of the slowest and most expensive means of accomplishing one's objectives.<br />
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Can it be done, as the guru's profess? Certainly. Can anyone do it? Likely not. It takes someone with a modicum of education, some backbone, and a willingness to attempt something new. And, after attempting and failing, one needs to just keep trying. As we all know, "failing forward," is what it takes.<br />
<br />
It is so easy for those who can't make it happen to knock those who are doing it. Lead, follow, or get out of the way! There are thousands, perhaps millions of independent people buying and selling real estate to earn their living and there always will be.<br />
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#5 Consumer Comment<br />
Ok Roland does it., You wouldn't mind listing some of the property addresses for the rest of us?<br />
AUTHOR: David - Las Vegas (U.S.A.)<br />
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SUBMITTED: Tuesday, March 23, 2004<br />
Roland:<br />
<br />
My source of information is my wife, a mortgage broker of 12 years. I never said I did any type of real estate investing - so the only homes I have bought and sold are the 2 I have owned as my primary residences.<br />
<br />
It sounds like you have had very good luck using the strategies presented by the real estate gurus? You wouldn't mind listing some of the property addresses for the rest of us? Or could you provide a mailing address so those interested could get a look at the signed HUD Settlement Statements just to verify our doubts? Such documentation would be a powerful sign that my wife and I, among many others, are dead wrong. Thanks.<br />
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#6 Consumer Comment<br />
Response to David's request<br />
AUTHOR: Roland - Buffalo (U.S.A.)<br />
<br />
SUBMITTED: Wednesday, March 24, 2004<br />
David, I'm going to provide 4 of many addresses. The first two were sold and I'm cashed-out. The other two I'm still collecting mortgage payments.<br />
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4575 SE Williams Way, Stuart, FL<br />
4828 SE Avalon Drive, Stuart, FL<br />
28 Rose Place, Utica, NY<br />
41 Tracey St., Whitesboro, NY<br />
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Better though, than any addresses, etc., I'm going to provide just one example, then I'm going to get off this soapbox and back to other gainful objectives.<br />
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Here's a house I bought in Herkimer, NY back a few years ago. A lady called me back a year after I first looked at her home. She asked if I was still interested in buying it. My answer was that if it was in the condition I saw a year earlier, I was definitely interested.<br />
<br />
I met the lady at the house, did a 5-minute walk through, and we started negotiating. I knew the house was worth approximately $50,000. She had it listed earlier and it went off the market a couple times and was exasperated with the entire professional real estate industry.<br />
<br />
We settled on a price of something like $18,800 cash, closing in 45 days (I wanted 60 and she wanted 30, so we compromised on the 45 days). I found a new buyer for the house within a couple weeks for a price of $43,650 (PFA number, which I chose). The appraisal came in at approximately $51,000.<br />
<br />
I created a new first mortgage of approximately $34,900, and a second mortgage of approximately $8,800. The buyers had about $1,500 cash down.<br />
<br />
At closing, I sold the first mortgage (to a company, which buys mortgages) for approximately $27,900. I walked away from the closing with about $10,000 cash and the $8,800 second mortgage, and did not use any of my money.<br />
<br />
Now, I know this is a "small deal," however, it's just one method of many. The seller won because the house was moved quickly. The buyer was happy and won, because they bought the house about $7,000 under appraised value. I won because I made a profit with no outlay of money (absolutely no repairs to the house, not even changing the locks). Of course, my buyers agreed to buy the house as-is, as it was in good condition.<br />
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David, coincidentally I attended a 2-hour John and Greg Rice "get 'em in the funnel" free seminar last evening. They provided some free information and basically were pushing a $3,687 price for a three-day weekend seminar, several books, and a lifetime of phone contact (to assist with making deals). The price was eventually dropped to $1,597.<br />
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I did not buy the package, as I was there just to keep abreast of what's happening in the guru world, however, I've met John and Greg Rice and they do what they advertise. I got enough information last evening (for free)to be able to use one of their methods to purchase real estate if I choose to do so.<br />
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Well, I'm gone from this website, as I must get back to work. The above info, as all I've provided is just MHO, FWIW! Carry-on, some will succeed, others won't! Which category will YOU be in? BTW,<br />
<br />
CLICK here to see why Rip-off Report, as a matter of policy, deleted either a phone number, link or e-mail address from this Report.<br />
<br />
Byeeee.....<br />
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#7 Consumer Comment<br />
Still waiting to hear if seller financing exists. ..typical shill<br />
AUTHOR: Mike - Radford (U.S.A.)<br />
<br />
SUBMITTED: Wednesday, March 24, 2004<br />
Roland's comments sound like typical shill hype. But I'll give him the benefit of the doubt and assume that what he said is true. It's what he didn't say that seems more important.<br />
<br />
First he didn't touch the subject of seller financing. If seller financing really exists, it would only be done on properties that are overpriced. If the price were right, the seller would be able to sell to someone who had cash or third party financing. So any property where the seller has to engage in such shenanigans to sell it is overpriced and not a good investment. It makes no sense for a seller to do it otherwise.<br />
<br />
Roland says "most of the methods (that Sheets and others promote) work." He doesn't mention any in particular. I'm sure Sheets promotes a lot of stuff that does work, like "buy low, sell high" (and "fail forward," whatever that means) But the marquee tease of these programs is that secret schemes will be revealed to allow deals with "no money down," "cash at closing" (i.e. less than no money down), and "seller financing". He's trying to sell the program to people who don't have cash or good credit. The first two schemes have already been widely discredited and the third is highly dubious. Sheets is taking peoples' good money and giving them bad advice. The methods that Sheets claims will work are not widely (if ever) practiced in the real marketplace, not because they are closely guarded secrets that only gurus know (but are willing to sell to anyone for a few hundred dollars), but because the methods DON'T WORK.<br />
<br />
I'm sure Roland used either cash or good credit or both to start his investment deals (if true) then started rolling the profits from one deal out to finance the next one. That's what capitalists do. Sheets tries to sell a dream to people who cannot play in that game because they have neither cash or good credit. Without those resources, it is not possible to invest in real estate competitively with the many other investors who do.<br />
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Most of these widely advertised programs seem to be mainly a way for the guru's to compile lists of potential victims for higher priced programs. They want consumers who believe they really can get rich quick, if they just knew a few more guru secrets. So once someone buys the introductory program, they are targeted for a hard sell for more expensive worthless schemes.<br />
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#8 Consumer Comment<br />
your deals are done as cash involving no traditional mortgage lender<br />
AUTHOR: David - Las Vegas (U.S.A.)<br />
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SUBMITTED: Thursday, March 25, 2004<br />
Thanks - Roland<br />
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As I suspected, Roland, your deals are done as cash involving no traditional mortgage lender since they will not fund the type of deals you do. You seem to look for distressed sellers and offer low ball cash-on-the-spot payments - nothing wrong with that - just not that many such folks left.<br />
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My wife will be able to access the HUD Settlement Statements for the properties you listed and clarify how the financing went.<br />
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Roland, you and I and my wife are in agreement about one thing. As long as the property purchase or sale involves cash, then the rules for 95% of all real estate transactions go out the window.<br />
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You made it clear that you DID need your own funds to get the deal done. That directly flies in the face of what all of the real estate gurus sell.<br />
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Seller financing without dealing with mortgage lenders and having to follow their rules involves either (1) cash or (2) using unsecured personal loans or established lines of credit. Bottom line - both require sellers to have cash. Thanks for proving my point, Roland. Best wishes looking for distressed sellers.<br />
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#9 Consumer Comment<br />
To good to be true ..Rolands response is pure shill crap.<br />
AUTHOR: Alan - St. Paul (U.S.A.)<br />
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SUBMITTED: Thursday, March 25, 2004<br />
AS I read Rolands response, let me see if I got this right. A lady had her home on the market, so she must have had an idea of the market value. Fast forward, home does not sell at current price, so she calls Roland who buys the house at less than half of appraised value? Then Roland turns around and does what the original home owner couldn't do and that is to sell the house at the fair value? Did you have a gun at her head Roland because for a deal like this to happen you must have made an offer that she could not have refused. Rolands response is pure shill crap.<br />
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#10 Consumer Comment<br />
THERE ARE OWNER FINANCED DEALS AND FLIPPING IS NOT ILLEGAL<br />
AUTHOR: Jason - Evansville (U.S.A.)<br />
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SUBMITTED: Saturday, May 15, 2004<br />
First of all, maybe owner financing is not popular in the area that you live in. However, after going to 4 courthouses in my area looking for owner financed mortgage notes (I work for a note investor) I realized that there is quite a market for this in my area. I live in Indiana by the way. It is just crazy to say that owner financing doesnt happen very often, but like I said, maybe it doesnt in your area or part of the country. I am an investor locally as well, and the deals that I do are on fixer upper houses. Now here is proof that owner financing does happen. I buy these houses, fix them up, and then sell the houses on contract (which means that I finance the deal) Now you are wondering, why would I do that. I call it speed selling, as would some other Real Estate Guru's. Once I qualify a buyer, I then have them sign the promissory note and contact a Mortgage note Investor company. The company then buys the note from me at a slightly discounted price. When you are dealing with fixer uppers in a not so good part of town, this is a great way to have a fast turn around and quick sale on your investment.<br />
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Now to flipping. Flipping is actually really known as wholesaling. The flip deals that you hear about that are illegal involve bogus appraisals on houses. This is where someone buys a house cheap, gets a inflated appraisal, and then sells it for a ton of money. That is illegal. However, wholesaling is not, I did it today. You enter into a purchase agreement on a house, go ahead and get the title work going and set a closing date. Within that part of time you seek out an investor that will then purchase the contract from you for a fee. It is a good way for beginner investors to build up capital with no money down and little or no risk. Thanks for your time.<br />
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#11 Consumer Comment<br />
program works for some and not for others<br />
AUTHOR: Fran - Indianapolis (U.S.A.)<br />
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SUBMITTED: Monday, May 24, 2004<br />
Thanks Roland for the thumbs up...I just purchased the Carlton Sheets program. I have not had it for 30 days yet and I will be closing my first deal this week. As Roland said, the program works for some and not for others. I guess I wanted it too bad to fail. But because the program did not work for some, that does not mean you should downgrade to others. For the man who's wife is the broker, you should tell her to catch up on her Real Estate Training, because Carlton Sheets is going to be the reason I will be putting $15,084 into pocket on my first deal. If their teachings cannot make money, then tell her to explain that. Keep in mind it has not even been 30 days since I purchased his materials. I feel like this, WHATEVER Carlton Sheets wants to sell me, I will buy!!<br />
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#12 Employee<br />
Carleton Sheets Program Does Work...buy properties that need rehab<br />
AUTHOR: Bruce - South Bend (U.S.A.)<br />
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SUBMITTED: Saturday, June 26, 2004<br />
I purchased the Carleton Sheets Program in 1994. I am a Real Estate Broker in my area and have had great success specifically in buying properties for rental investment. Additionally, I frequently buy properties that need rehab of some sort for significantly under market value.<br />
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I simply do the rehab and sell the properties in the market for more than I paid. Flipping is one of those "nice-to-hate" buzz words that gets people all worked up. If you as an investor buy a property at a price below market value, fix it up, and resell the property......you have in fact flipped the property.<br />
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Use a realtor if you can. He or she will do all of the up-front work to guarantee that your business is legal and practical. I take before and after pictures of my properties so that it is very obvious what was done. I buy and sell about 5 homes a year.<br />
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#13 Consumer Comment<br />
Enough "Dog & Pony" shows<br />
AUTHOR: Kristine - Las Vegas (U.S.A.)<br />
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SUBMITTED: Monday, June 28, 2004<br />
I am and have been a mortgage broker for 15 years. I hold a realtor's license and have had one for 8 years.<br />
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Living and working in Las Vegas, Nv., I am lucky to be in one of the best real estate markets in the U.S.A. I have never done any real estate transactions with any borrower trying to peddle any of the real estate gurus crap. No federally-licensed mortgage lender does. Period. The actions of the real estate gurus and their scam students who deliberately engaged in real estate flipping cost the mortgage industry billions. Many of the investors and appraisers are in jail now.<br />
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Because of that fact, there exists no traditional mortgage lender who will allow any property to be reappraised and sold sooner than 90 days. Wells Fargo's subprime lending division just created a mortgage program that allows properties to be reappraised after 90 days of ownership. However, the underwriters make sure that property is well worth the reappraised value.<br />
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Any increase over 10% of the original purchase price must be documented by written receipts for improvements made. The infamous example of repainting a home and getting an additional $15,000 of appraised value is crap. Yet, Carleton Sheets uses just that example in his materials and infomercials!<br />
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If you are lucky enough to find private investors, then you can do whatever you want to. If you rehab homes and can find a borrower stupid enough to pay an extra $15,000 for a coat of paint then go ahead. The buyer must have private funding to get the deal done.<br />
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But, don't take my word for it - anyone thinking of trying Sheets or any of the other "peddlers" methods needs to see an experienced bank underwriter first and get the reality of mortgage lending. If you are convinced that you can find private investors to do your "get rich quick" garbage, then go right ahead. Fact - over the last 40 years, more than 95% of all residential property transactions were financed by mortgage banks. If you want to try and fit into the remaining 5%, Best wishes.<br />
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All of the successful real estate investors I know, whether I did their financing or not, have used the tried and true traditional mortgage lending practices to make their money.<br />
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To date, I have not seen one HUD settlement statement from one of the real estate gurus transactions to show how the financing was done! I wonder why? All of the real estate gurus claiam that traditional mortgage lending is too tough! Crap! I can put a borrower with a 620 middle credit scoes into a 2-unit owner-occuppied duplex for only the price of a year's worth of homeowner's insurance! The closing costs are rolled back into the mortgage since I have access to traditional mortgage lenders who will lend up to 103% of the purchase price!<br />
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Why aren't any of the real estate gurus advertising that? Why would any beginning real estate investor hunt for a private funding source, when they could contact any mortgage broker and get the financing in 30 days?<br />
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37 states currently require anyone selling more than 4 residential properties in a year to have a realtor's license! How many of the people claiming success with Ssheets' stuff have such a license? If you don't - welcome to the world of real estate fraud. Again - don't take my word for it - contact your local state agency in charge of real estate. All it takes is a phone call.<br />
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Robert Allen and Russ Whitney, 2 real estate gurus, have bankruptcies and open civil judgments against them. Hmm - sounds odd for the success they claaim with their methods?<br />
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Carleton Sheets does all of his work from Florida. Guess why? Florida is one of the few states that have backed away from predatory lending laws, real estate flipping laws, and do not require realtor licenses to make multiple sales of properties.<br />
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For anyone thinking of wasting money on any real estate get-rich-quick scam - go to one of the free seminars. ask to see HUD settlement statements and copies of cashier's checks for the money everyone says they walked away from the closing table with. Make sure the checks list the bank or credit union doing the financing. Likely the entire deal was done by private investors.<br />
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Finally, for all of the folks who are sold on Sheets and other's programs - just make sure you pay your capital gains taxes on all of that profit you make from those home sales! Because when you use banks and credit unions - they report for you! Maybe that is why Sheets and others run and hide when they hear "traditional mortgage lending."<br />
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Oh - I will never give up my commission to a borrower who needs that money to close a deal! Why would I be that idiotic to think I would see my money anytime in the future from a real estate investor who can't cover closing costs?<br />
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#14 Consumer Comment<br />
Response to Kristine in Las Vegas. It's just as big "Flipping Deal".<br />
AUTHOR: Bruce - South Bend (U.S.A.)<br />
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SUBMITTED: Saturday, July 03, 2004<br />
Kristine obviously has issues. 22 years as an investor and 10 as a Real Estate Broker. Here is my last "Flipping Deal".<br />
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Stats:<br />
<br />
** BOUGHT PROPERTY IN MAY 2004.<br />
** PROPERTY WAS AN ESTATE.<br />
** PURCHASE PRICE WAS $25,000 UNDER COMPARIBLES FOR THE AREA DUE TO SOME WORK IT NEEDED.<br />
** DID 10,000 OF WORK ON THE PROPERTY.<br />
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a. New siding<br />
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b. New roof<br />
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c. New furnace<br />
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d. New kitchen and bath.<br />
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e. Misc. cosmetic work.<br />
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**LISTED THE PROPERTY FOR $60,000 ($25,000 MORE THAN PURCHASE PRICE).<br />
**RECEIVED OFFER FOR $58,000 FROM FIRST TIME HOME BUYERS IN JUNE.<br />
**THEY OBTAINED AN FHA MORTGAGE FROM LOCAL LENDER.<br />
**CLOSING IS SET FOR JULY 9TH.<br />
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I USE THE WORD "FLIPPING" EVERY CHANCE I GET. I DO IT TO GET UNDER THE SKIN OF THESE MORTGAGE LENDERS THAT THINK THEY KNOW EVERYTHING. I HAVE NEVER HEARD CARLTON SHEETS SAY ANYTHING ABOUT "PUTTING A LITTLE PAINT ON A HOME AND RESELLING IT FOR $15,000 MORE THAN YOU PAID FOR IT." THAT BEING SAID...CONSIDER THE FOLLOWING:<br />
<br />
LET'S SAY SOMEONE HAS A HOME AND NEEDS QUICK CASH FOR SOMETHING. THEY DON'T WANT TO LIST THE HOUSE AND WAIT FOR AN OFFER. WHAT IF YOU ARE IN THE RIGHT PLACE AT THE RIGHT TIME AND THIS PERSON AGREES TO SELL YOU THE HOME AT $15,000 BELOW MARKET VALUE IN A QUICK SALE. AFTER YOU PURCHASE THE HOME YOU NOTICE THAT IT NEEDS TO BE REPAINTED......YOU HAVE THE HOME PAINTED AND THEN PUT IT ON THE MARKET AT MARKET VALUE BACKED BY COMARIBLES FOR THE AREA. SOMEONE BUYS THE HOME AT MARKET VALUE.....AFTER THE SALE YOU REALIZE THAT YOU SOLD THE HOME FOR (ABOUT) $15,000 MORE THAN YOU PAID FOR IT. WOW! IT WORKED. I HAVE NEVER DONE THIS BUT I MIGHT TRY IT JUST FOR GRINS SOMETIME. MOST OF THE PROPERTIES I PURCHASE NEED MORE WORK THAN THAT. THERE IS NOTHING AT ALL ILLEGAL ABOUT BUYING A PROPERTY....FIXING IT UP......AND RESELLING IT AT A GREAT PROFIT. IF THESE IDIOTS WANT TO KEEP USING THE TERM "FLIPPING" JUST TO HAVE SOMETHING TO TALK ABOUT, LET THEM. AS FOR ME I'LL JUST KEEP MAKING MONEY AND PUTTING GOOD PEOPLE INTO HOMES THAT DO NOT NEED ANY WORK.<br />
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#15 Consumer Comment<br />
question Bruce<br />
AUTHOR: Cally - Decatur (U.S.A.)<br />
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SUBMITTED: Tuesday, July 06, 2004<br />
My fiancé called and requested information on the Carlton Sheets program. I was wondering did you purchase the Sheets program? We aren't looking to get rich quick or anything, but we do enjoy fixing up houses and making repairs. For us the out come is worth what ever work is involved. We feel that if we are able to help first home buyers get into a house they will love for many years to come. My other question is can you achieve this with the way you go about dealing with the properties you work with? Any feed back on this would be extremely grateful.<br />
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#16 Consumer Comment<br />
Good For you - Bruce<br />
AUTHOR: Kristine - Las Vegas (U.S.A.)<br />
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SUBMITTED: Friday, July 09, 2004<br />
Wow, Bruce. You got all that rehab work done in less than 60 days AND found a buyer willing to pay fair market value for the home?<br />
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And you (apparently) found a buyer who found a traditional mortgage lender, FHA no less, that is willing to issue a mortgage far above the purchase price less than 90 days ago? Please list the name and address of the bank and the loan officer who handled the transaction for the buyers.<br />
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You will find all of it on your copy of the HUD settlement statement. Since FHA, by federal law, will not allow any property to be purchased above the original purchase price plus any documented improvements without at least 6 months seasoning - the bank loan officer that just did the deal committed bank fraud! I suspect a "juiced" appraisal.<br />
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If you provide the property address, I can and will get a copy of the final HUD settlement statement and post it for all to see exactly how the transaction went down. To date, no student of any real estate guru has been willing to post closing settlement statements. I wonder why?<br />
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But clearly Bruce you are having unlimited success. Great - Best wishes to you.<br />
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To Cally - go ahead and spend a couple of $100 on Carleton Sheets stuff. Better yet, try his money back guarantee and let us know how it works. Let us know what you think.<br />
<br />
Time to get back to the real world of real estate investment.<br />
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#17 Consumer Comment<br />
Carleton Sheets not a rip off for us....We have been on the infomercial.<br />
AUTHOR: Jerry - Winston-Salem (U.S.A.)<br />
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SUBMITTED: Sunday, July 18, 2004<br />
I have been investing in real estate for about 9 years now and got started with the Carleton Sheets course. I did not buy any other courses and have been able to buy many properties with no money down. I own rental property and I also buy fix up and sell property for profit. We have been on the infomercial. I am on the current one showing now.<br />
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We were not paid for our appearance nor told whay to say on the commercial. The last property I bought was in May. I walked away from closing with a deed to the property and $6,200.00 to do the repairs. I have a lease through section 8 housing anf the house will be ready to move into next week. All of the things said about the course have been true for my experience. I neither sell his course or get any money from the sale of it, nor from my TV apperances.<br />
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#18 Consumer Comment<br />
Too interested not to comment<br />
AUTHOR: Rich - Carthage (U.S.A.)<br />
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SUBMITTED: Thursday, September 02, 2004<br />
I have read all of the above comments with a significant interest. I have purchased Carleton's course and books by Robert Shemin. Although the books do not walk you through a transaction step by step, they do give you a very good idea of how to do it. After having Carleton's course for 3 weeks, I found a 2 bedroom, one bath house for sale that met Carleton's recommended criteria. I contacted the owner and to my amazement he offered owner financing with $5000 down and 8% interest.<br />
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This blows the other gentleman's idea of "who would want to do owner financing anyway" right out of the water. I know that he will most likely respond by saying this is only one owner. I also have a gentleman who I do computer work for that knew I was interested in real estate and offered to sell me one of his duplex's with no money down, and 100% owner financing if I paid closing costs. This can be done if you find the right people. Can it be done every day? Probably not, but as with any job, it requires work on your part and is not a get rich quick scheme.<br />
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As for the "flipping" deal, the Fed anti-flipping regs, to my knowledge are limited to HUD mandates on FHA insured properties. They do not apply, nor were they intended to penalize loan companies funding non-FHA insured loans. However, uninformed lenders have developed the misinformed mind-set that "flipping" is illegal and properties need to be seasoned by 90+ day ownership with deed acquisition proven through recording. AGAIN, THIS APPLIES TO END BUYER LOANS THROUGH END_LENDERS BACKED BY FHA INSURED LOANS ONLY.<br />
<br />
Most properties that are aquired and need a little renovation work, will take at least 60 days or more which will easily satisfy the seasoning period in most cases. There was one correct statement however; purchasing a HUD foreclosure home will require that you obtain traditional financing. I have recently looked at a HUD foreclosure that lists for $28,600. This home does not have any real heat source other than one propane furnace and so states in the listing. The home also needs a new roof, carpet, Lots of interior paint, light fixtures, and the kitchen needs a complete makeover. There are also no appliances to speak of. In proper condition, this house should sell for around $45-48K. Improvements will cost in the neighborhood of $18-20k.<br />
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If an offer was made and accepted at $19-20K, it would take at least 90 days to effect all necessary repairs. I have spoken with HUD reps and lending institutions on this home. because the owner will not make an "execessive" profit on this deal, HUD and the lenders would lend money on it. Again, this is not a huge money-making endeavor that will make you rich over-night or even in a year, but it can be done with AND without traditional means.<br />
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#19 Consumer Comment<br />
Questions for Rich<br />
AUTHOR: Tim - Valparaiso (U.S.A.)<br />
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SUBMITTED: Saturday, September 04, 2004<br />
My question/statement doesn't really go to the merits of the Carlton Sheets program per se. I ASSUME this program is a scam for several different reasons, but I'll refrain from getting into those.<br />
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My question/statement is for Rich. For reference, here's the quote that's giving me trouble: "uninformed lenders have developed the misinformed mind-set that "flipping" is illegal and properties need to be seasoned by 90+ day ownership with deed acquisition proven through recording."<br />
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First, are you sure that these lenders are making a mistake of law? I would assume that most lending companies have a team of lawyers that would be much more knowledgeable on what is and isn't illegal than you (unless, of course, you are a lawyer, which raises further issues).<br />
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If these lenders are not making a mistake of law, it seems to me that they are still making a good business decision. Lenders require title insurance before they will shell out money for a property purchase. Title companies will not insure a title wherein the seller's deed is not recorded.<br />
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You may think that title insurance is unnecessary. After all, who sells a house that they don't even own? Well, while that doesn't happen very often, people do, on a fairly frequent basis, sell a home that they are not legally permitted to sell. Such a situation may arise where a husband and wife own a second home and one of them decides to sell it unilaterally, or where two people own a home as joint tenants and one sells without the other's consent.<br />
<br />
If such a situation arises, the buyer and the lender are pretty much screwed. When the spouse or joint tenant contests the buyer's right to ownership, the buyer loses the house and all equity therein, and the lender loses the lien.<br />
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There are a myriad of other ways in which an imperfect title can end up biting the buyer and the lender in the ass. Thus, lenders will not fund a property purchase without title insurance, and the title company will not cover a title that is incomplete. Even if an imperfect title only presents a problem in one out of every hundred cases, that one case can present a loss of hundreds of thousands of dollars.<br />
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Even with a clean title I can certainly see why lenders would require a 90 day ownership period of the seller. This gives a period of time where claims agaisnt the seller's ownership (i.e. fraudulent recordings, executed judgment liens, adverse possession etc.) may be filed, and further assures the lender that the seller has the legal right to sell the home.<br />
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With that out of the way, my question is this: how can this program be so successful if there are such massive encumbrances to doing what the program tells you to do? You have presented anecdotal evidence that seller financing can be done, but if you can't then turn the property over in a short period of time, what good is the ability to purchase it in the first place? There are two doors to this transaction, and you have only made it through one.<br />
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Turning over properties can be very lucrative, but I would never invest money in a program that teaches anybody with the money to buy it how to flip houses. Whether or not flipping houses is illegal is a question of law that I am not capable of answering. Whether or not the program will actually work is a question of fact, and I can see a few reasons why it wouldn't.<br />
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Here's what I would do, and what I imagine the Sheets successes have done: 1) purchase the home in the most feasible and least costly manner; 2) perform interior renovations; 3) Lease the house with an option to buy; 4) perform exterior renovations and ensure that the title is insurable during the lease period; 5) when the lease period is up, ask the tenant if they are going to exercise the option, if so, sell them the house if possible, if not; 6) extend the lease on a month to month basis, or find a new monthly tenant to lease until the house can be sold.<br />
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I wish you all the best of luck. If you put money into this program, and especially if you have invested sweat, money and time into doing the program, then I certainly hope it works out for you. Consider my advice above. If you haven't bought the program, I would advise against it.<br />
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#20 Consumer Comment<br />
Real Estate Guru Madness ..here is the way traditional mortgage lending works<br />
AUTHOR: Lee - Milwaukee (U.S.A.)<br />
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SUBMITTED: Thursday, September 16, 2004<br />
I am an underwriter for Countrywide Home loans and have been both a mortgage broker and bank loan officer in the past. I have been in the mortgage industry for over 22 years. To everyone who claims to have walked away with cash at closing or flipped properties and made $10,000s, here is the way traditional mortgage lending works.<br />
<br />
No retail or wholesale bank will ever allow any seller to sell a property for more than 10% over its original purchase price IF it has been owned for less than 90 days. If the property is to be sold before 90 days of seasoning, the original purchase price is used.<br />
<br />
No retail or wholesale bank will allow any property to be sold for more than its purchase price or appraised value – whichever number is the lowest. So, no retail or wholesale bank will allow you to buy a property for $100,000, get it appraised for $120,000 and walk away from the closing with $20,000!<br />
<br />
The only way buyers get “cash at closing” is by cutting an under-the-table deal with the sellers. For instance, the buyer agrees to purchase a property for $100,000 IF the seller agrees to give the buyer $10,000 in cash “outside of closing.” With such a deal, the buyer pushes an appraiser to get a fair market value of $110,000 and then changes the purchase contract to “buy” the same property from the seller for $110,000 instead of $100,000. The real question is why would the seller give the buyer $10,000 when they could sell the property for the full fair market value and keep the $10,000?<br />
<br />
Such “under-the-table” deals are now being investigated by many state tax auditors. The $10,000 that changes hands is called “unreported financial concessions” and is 100% illegal. Realtors, mortgage brokers, and closing services companies are being indicted. But, don't believe me, visit:<br />
http://news.wra.org/2004/August and read the article on “Artificially inflated property values” under “Top Stories.”<br />
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If you still think you can do what the real estate gurus claim, then go talk to a real estate attorney and a bank loan officer first. For everyone who claims to be making $$$$ flipping properties and getting cash back at closing – show me a HUD Settlement Statement. I have seen many other folks ask to see them and not one of you “successful real estate investors” has ever provided one.<br />
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I have asked the very same of Carleton Sheets, Wade Cooke, Russ Whitney, John Reed, John Beck, Robert Allen, and the Rice brothers and have never gotten one single HUD Settlement Statement for any property they claim to have bought or sold! Point proven.<br />
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None of the more than 3000 mortgage brokers and realtors I have dealt with over the last 22 years has ever agreed to give up their commissions for “future payments” from any real estate guru student. No underwriter I have ever known has ever approved a mortgage purchase where the buyer got cash at the closing. Period. Wake up – there is not one real estate guru that does not have at least one state attorney general after them for fraud. Wade Cooke is in federal prison, Russ Whitney and Robert Allen have bankruptcies and multiple civil judgments against them, Carleton Sheets is being investigated by 3 different state attorney generals as you read this.<br />
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If you want to buy the courses – go to eBay and get them for pennies on the dollar AND skip the constant telemarketing! Get a hint people – when you see the same students claiming to have gone from “rags-to-riches” over the last 10 years of infomercials – who wouldn't be suspicious?<br />
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So - if all you students of real estate gurus plan on using private investors or cash to finance your deals - have at it! If you plan on using any retail or wholesale mortgage lender - tough luck. But - if you do come across a federally-chartered bank or credit union that will underwirte your nonsense - post the info for all of us!<br />
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#21 Consumer Comment<br />
Carleton Sheets gave me an oppurtunity.<br />
AUTHOR: J. W. - Winston-Salem (U.S.A.)<br />
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SUBMITTED: Thursday, September 16, 2004<br />
I have a good plan for real estate investing. Ifr there is anyone who doubts the Carleton Sheets method please come to winston-Salem, NC and give me a call to tour my properties I have now and the ones I sold with traditional financing. 336-806-1101<br />
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#22 Consumer Comment<br />
Whether You Think You Can or Think You Can't...<br />
AUTHOR: Frank - Salem (U.S.A.)<br />
<br />
SUBMITTED: Friday, October 29, 2004<br />
Very interesting comments from all of the above.<br />
<br />
Since this report was in regards to flipping properties, I just wanted to add a few thoughts.<br />
<br />
To preface, I did buy the Sheets package back in 1994. Things sure have changed. Back then, I ordered the package and when it was 2 weeks overdue, I called the company. They sent a second one out. A few days later, the original arrived and the next day, the second one arrived.<br />
<br />
I called and asked them what they wanted me to do. They said, "Keep them both.".<br />
So I got one and my girlfriend inherited the second. I still have the original today.<br />
Sounds like they're doing the opposite now.<br />
<br />
Prior to this, I had attended the National Superstars conference in LA back in Winter 1985, where ALL of the then-big names in "Real Estate Investing" appeared - T. Hoffman, R. Whitney, H. Morris, (can't recall if R. Allen attended), W. Phillips and a long, long list of others.<br />
<br />
Carleton seemed the only one missing, so I wanted his input, too. His info was good, but because of all the other materials I already had, just seemed a bit light on deep detail. But still usable if one followed the steps and performed due diligence.<br />
<br />
Thought 1) One way of "flipping" a property is to secure a Purchase Option on it at a discount (distressed seller or don't-wanter). Advertise the property yourself, or at least the option, then if a new buyer is interested, sell them your option to purchase. You never take title, you never fix it unless you want to. You are being paid for your negotiating skills, as well as the time spent looking for and at properties, not to mention your marketing and re-sale skills. Is there a law against that too now?<br />
<br />
Thought 2) Everyone has a point of view on all of this. There's a reason it's called the banking industry. It's a business to make money. Pure and simple. So there are many laws out there to help protect the industry and preserve its money-making capabilities for it's participants. The legalese and financialese are mind-boggling and that means attorneys have to get involved and agents for you, agents for me, inspectors, insurers, ad nauseum...all taking a chunk of the change.<br />
None doing it out of the goodness of their hearts. So I can certainly see where anything threatening this income stream, or telling "the public" how to go about some of it on their own would be cause for concern.<br />
<br />
(Before I get trashed, I was doing mortgage underwriting, brokering and sales before I got bored. And before I saw it was headed down the 'discount road' where it is now. Both my parents were licensed Realtors.)<br />
<br />
Thought 3) For those who choose not to participate in the wonderful world of conventional financing - such as free and clear owners and private investors:<br />
All it takes to buy and sell a property is the appropriate contract between two people who understand and agree to the terms, along with a few safeguards to take care of both interests. Period. With the right two people, no bank or other regulated/regulating entity need be involved. Do the deal, record the deal.<br />
It's not always Win-Lose, either. Win-Win is always preferable.<br />
<br />
Thought 4) As for there not being any carry-back sellers out there and that it's all some myth or fairy tale - you're dead wrong. After I returned from LA, and, maybe more importantly, after talking in detail with OVER 200 sellers over 6 months, I finally came across a true don't-wanter.<br />
<br />
He was in his 70's and owned 5-6 other income properties. Free and clear. He did not need a lump sum payment. He did not want a down payment, although he asked for one because "that's the way it's done". He didn't know why, but that's what he'd always seen and heard. He had a good retirement income and he also had good rental income.<br />
<br />
After about an hour of negotiating on the phone and numerous repeated explanations, he agreed to 1) ZERO DOWN PAYMENT. 2) 10-year Agreement of Sale, but with 100 payments. 3) I'd retain the present renters, up their rent $25.00. 4) ZERO MONTHLY PAYMENT for up to 20 months IF the property went vacant. 5) ZERO INTEREST, although I offered him 6.75% more than his asking price (Which was within comparables valuation).<br />
6) The tile would be held in escrow for the duration.<br />
<br />
Today, that property is worth about $90,000.<br />
So it took me 6 months to find this deal and negotiate it. You know, at $90,000 a pop, I might do that full time.<br />
<br />
But - it's not mine. The stodgy title company took 4 times their usual time to get me back a promised comparables report. By then, the old man figured I'd inspected and rejected the property, so he offered the same terms to a kid he'd been trying to work terms out with. The kid "begrudingly" agreed...and they signed.<br />
<br />
He just wanted to get out of the maintenance and management of property.<br />
Why was he willing to do these terms? Because he'd just undergone a quadruple bypass less than a month before I happened along.<br />
<br />
There's a reason it's called "creative financing". As much as the pillars of the financial industry would like them to be, not all creative financing deals are illegal or even a detriment to anyone. Except maybe the finance industry.<br />
<br />
Thought 5) I have a personal acquaintance who started with nothing but a USED copy of the original Allen book and nothing else. He's more than a millionaire today, living in - Las Vegas. He dabbles at bussing tables just because it's fun.<br />
So not everyone needs a course to get themselves into this endeavor.<br />
<br />
From what I've read above, I suppose I may be called a shill now. Or someone will demand HUD-1's from me. So be it.<br />
<br />
I just wanted to offer these experiences and also some advice, as one of the gurus used to say....<br />
<br />
"Whether YOU think you can, or think YOU can't...you're right.". Whichever path you choose - good luck!<br />
<br />
Frank N.<br />
Salem, OR.<br />
"I'd rather be a 5%'er than a 95%e'r any day."<br />
<br />
PS - During the entire time I was actively looking for properties, every Realtors I spoke with told me what I was looking to do was illegal or impossible. Even after I'd already done it.<br />
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#23 Consumer Suggestion<br />
In response to the fellow who says that seller financing does not exist, he is simply wrong.<br />
AUTHOR: Bill - Roanoke (United States Minor Outlying Islands)<br />
<br />
SUBMITTED: Sunday, November 14, 2004<br />
The main area where my company and I use seller financing is in the purchase of houses that are in a state of disrepair to the point where banks won't lend on them. The second major area where seller financing is seen is when people who own real estate as a mom-and-pop operation grow old and decide they don't want to manage real estate, but want to continue to get some income from it. The third area where I see seller notes is in micro-financing or in other types of financing that are not attractive to banks and brokers.<br />
<br />
For instance, in Roanoke, VA, how do you buy a house for $20,000 which has serious foundation problems and is in imminent danger of collapsing?<br />
<br />
First off, how do you buy a house for $20,000? Generally, to get any sort of financing, I have to go to the kind of folk who finance mobile homes and who make micro-financing their niche; otherwise it is seller financing.<br />
<br />
However, as no bank will touch property that has serious foundation problems or fire damage, how do you purchase that? You have two choices -- cash or seller financing.<br />
<br />
Say someone got a seriously damaged house as a "bonus" in a deal for five properties. They got the house essentially free and they want to dispose of it -- why wouldn't they take seller financing?<br />
<br />
The place where seller financing is no good is in the purchase of cookie-cutter-style residential real estate. In that situation, seller financing makes no sense. But for selling houses nobody wants -- like fire damages houses, or houses with strucutural problems -- as well as larger types of properties that are just difficult to manage -- seller financing becomes a necessity.<br />
<br />
I would guess that the fellow criticizing seller financing wouldn't know, for instance, how to re-finance a house that was in foreclosure -- and that his wife never brokers loans on properties that need to be rebuilt.<br />
<br />
While its true these "advanced" practices aren't good for run-of-the-mill residential lending, they become more common in specialized types of investing.<br />
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#24 Consumer Suggestion<br />
Instead of buying from a guru, join a real estate investor association<br />
AUTHOR: Martha - Acwoth (U.S.A.)<br />
<br />
SUBMITTED: Monday, November 15, 2004<br />
As a real estate investor who considers learning all that I can necessary for success, I would suggest that the best place to learn is a real estate investor association. I am fortunate to belong to the largest association in the nation which is the Atlanta chapter of Georgia Real Estate Investors Association (www.gareia.org). The seminars, meetings, subgroups, and mentoring have been invaluable. Yes, I have spent some money on some of them and some have been free but the information applies to my geographical area. You could begin with the national association (www.nareia.org) to find out what your state offers. For those "experts" who have been posting discouraging remarks, I have two comments: 1)Those who can,do and those who can't or won't, criticize. 2)You don't know....what you don't know.<br />
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#25 Consumer Comment<br />
GURU-FOLLOWING IDIOTS<br />
AUTHOR: Christine - Las Vegas (U.S.A.)<br />
<br />
SUBMITTED: Wednesday, November 17, 2004<br />
If you want to dabble in seller-financing - go right ahead. you better have lots of cash of your own or someone willing to lend the cash to you!<br />
<br />
Anyone can buy a crap house, put $10,000s into it and resell it after 6 months. The central issue that all of you "successful real estate investors" continually to fail to tell people is that If a buyer wants to purchase your inflated property, that buyer must have cash or find a private investor!<br />
<br />
None of you have listed one single federally-chartered BANK OR CREDIT UNION THAT WILL FINANCE SUCH A PURCHASE.<br />
<br />
Gurus deliberately trick students into paying $1000s for "boot camps" telling them they will learn the secrets. It is and always will be a bold-faced lie!<br />
<br />
no matter what you believe or say, one fact remains proven by real numbers that can be independently verified. Over the last 25 years, over 95% of ALL residential real estate transactions have been financed through traditional mortgage lenders. Period!<br />
<br />
Anyone still niave enough to believe that property flipping is easy, doesn't take any money, and can make you $10,000s needs to spend time looking at HUDs web site and reading the new rules governing federally-insured loans and HUD foreclosures and property flipping.<br />
<br />
Whether legal or illegal, HUD and the FHA will not allow any HUD-owned home to be financed using an FHA loan with less than 6 months of ownership seasoning. That is the direct result of every guru pushing students into property flipping.<br />
<br />
If that is not enough, go ask appraisers about property flipping. Many state regulatory agencies governing appraisers are warning their licensees about doing appraisals for suspected property flippers. Doesn't matter if it is legal or not - appraisers are being told not to do it or risk losing their licenses!<br />
<br />
So to all you "gurus" spouting off about all your riches - go ahead and keep spewing your crap! Until you prove your point with actual documentation of your supposed deals - you are simply taking up space and oxygen!<br />
<br />
You might as well tell people that "Anyone can climb Mt. Everest - you just have to go do it and keep trying!" Well Duh! That is easy to say unless you tell the prospective climber about the financial, physical, and emotional criteria needed for a reasonable chance at success!<br />
<br />
Every guru is making their money off of selling desperate people their financial dreams. If the gurus were telling the whole truth - you wouldn't have all of the complaints on this web site and 100s of others! And you wouldn't have state attorney generals putting gurus and their scam-artist students in jail!!<br />
<br />
Every guru uses 3rd party companies to legally insulate themselves from law suits. I wonder why?<br />
<br />
Keep telling people that the guru's stuff works - you just have to keep trying and not listen to people who don't agree and stay focused and keep trying and don't give up and stay positive and revise your goals and pay for more mentoring ......<br />
<br />
The real world real estate investors that I handle financing for ALL use traditional mortgage lenders and don't have to make up stories. They have the HUD settlement statements to prove it!<br />
<br />
So - post the HUD settlement statements of all of your great deals or shut up!!<br />
<br />
When blind human gullibility ends - Carleton Sheets and those like him will go out of business.<br />
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#26 Consumer Comment<br />
Guru magic doesn't work?!?! That's news to me!<br />
AUTHOR: Ravi - Atlanta (U.S.A.)<br />
<br />
SUBMITTED: Wednesday, November 17, 2004<br />
Been a full-time real estate investor since 1969 (that's 35 years folks). Bought something once from most all the guru's and 2 or 3 times from some. Can the techniques and tactics tought by the gurus really be done? Yes and no! Yes if 1) you take time to really learn the techniques, 2) work to find situations where they make sense (every situation and deal is different), and 3) use the right strategy for the right conditions.<br />
<br />
Will every strategy work in every situation...of course not! Neither will your migraines be cured by having a root canal. You have to have the right solution for the right situation. When you do...voila(!), guru magic certainly will work.<br />
<br />
My personal best? A 69 unit apartment complex taken over with no cash out of my pocket. In fact, once I got credits for security deposits, property tax prorations, etc., the seller wrote ME a check for $12,400.<br />
<br />
To all of you who are doing deals and know this stuff works...this means you have put more effort into finding situations where it will work, instead of figuring out the 1,001 reasons why it won't work like these, er, like some people.<br />
<br />
Please leave the doubters alone so they can enjoy the ride on their high horses. Go make some more money to solidify your financial future. We don't need more competition anyway.<br />
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#27 Individual Responds<br />
Sorry it didn't work out for you<br />
AUTHOR: Jacquelyn - Magna (U.S.A.)<br />
<br />
SUBMITTED: Saturday, December 18, 2004<br />
I personally owned the Carleton Sheets package and schemed through it and it takes you step by step for beginners.<br />
<br />
PLUS! I know someone who actually applied those steps and was able to purchase a house with the program!<br />
<br />
I believe in Carleton Sheets and I am sorry you now think it is worthless.<br />
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#28 Consumer Comment<br />
Lender Who Will Refi After 6 Months<br />
AUTHOR: William - Roanoke (U.S.A.)<br />
<br />
SUBMITTED: Sunday, December 19, 2004<br />
The individual claiming that one needs cash to flip properties is simply incorrect, and also ignorant of the business. They ask for the name of a lender that will re-fi such properties after 6 months as well. Recently, my company refinanced a property which we acquired for $25,000 (cash) and spent approximately $15,000 remodeling at 75% ($56,250) on an appraisal of $75,000 through Acoustic Home Loans, LLC of California at 7.95% and 2 points. We have another two of those deals in progress, and will probably do another half dozen more like them in 2005.<br />
<br />
Anyone looking for a list of real estate lenders and investors (not banks, per se), should start by getting a list from bankrate.com. Call 60 or 80 brokers (for difficult properties, I have called as many as 150 looking for the deal I want) until you find one that can finance you .<br />
<br />
Also, one complaining individual claims that one needs to sell the property after 6 months. This is also incorrect. My company refinances the properties and then hold them to rent. The property above is currently leased for $600 a month (an under market rent) against a monthly payment, tax and insurance included, of just over $500. At the current rent, when one includes vacancy and credit and expected repairs and maintenance, the property runs just over break-even, but the goal was to cash it out -- and, by removing a boarded / condemned property from the neighborhood, increase the value of all of our holdings there. In a year or so the rent will be raised, and the property will enjoy an even healthier profit.<br />
<br />
As to HUD homes, the statement regarding seasoning requirements is ... silly. If HUD owns the home, where is the seasoning? Seasoning is the length of time you own the home. ;-D<br />
<br />
As to using a corporate structure, anyone who is in business and not incorporated exposes themselves to unnecessary tax liabilities and legal exposure; every business venture with risk (and thus every venture) should be incorporated.<br />
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#29 Consumer Comment<br />
OMG I am confused now<br />
AUTHOR: Curt - Aurora (U.S.A.)<br />
<br />
SUBMITTED: Saturday, January 08, 2005<br />
this is all so confusing to me, i wanted to get into real estate but now i dont know...too many rules for one, and if you screw up yer in big trouble. Prison is not something i would enjoy. if anyone has any words of wisdom for me please let me know<br />
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#30 Consumer Comment<br />
CARLETON SHEETS COACHING SCAM!!!! FRAUD!!!<br />
AUTHOR: David - Sacramento (U.S.A.)<br />
<br />
SUBMITTED: Wednesday, January 19, 2005<br />
I just want to warn others who might be in the process of being pressured through telephone sales to purchase the Carleton Sheets coaching package. First they see how much credit you have on your credit card and they charge you as much as they can. They have the system rigged so that you will pay at least $3,000 for useless coaching. The coaching is the same as the CD's that you can get free on the internet. I bought the coaching when I was in a bind to make money and they charged me $4,000 on my credit card of course even knowing that I had just come out of bankruptcy. The ruthless salesman told me so many lies that never came true especially in the high priced Sacramento, CA market. Homes here cost about $400,000-$500,0000 for an average looking 1400 sq foot, 3 bedroom, 2 bath home in a mediocre neighborhood. They told me that I would be able to buy one within 30 days and flip it within 3 months and net a profit of $50,000. I found out that no one was willing to sell with seller financing and I certainly did not qualify for a loan because I was only making about $1500 a month. I was totally ripped off and when I asked for a refund Carleton Sheets sent his angry lawyers down my throat. This man tries to pretend he is the Mr. Nice Guy but behind the scenes and television screens he is as ruthless and cold as they come. Look at his video and listen to his phoniness on the telephone and his fake kindness and try to read between the lines. He has amassed a fortune by catering to the lower income people who buy his false dream. This man is a total fraud! When I bought the coaching, the coach himself said that I should not have been sold this package for such an outrageous price and the money I paid went to the salesman's commission. I wish someone would have told me about this company but I was too naive. I thought Carleton looked like an honest man. Things have changed I guess. The crooks now look as honest as they come. I guess that is the definition of a sociopath. Save your money and get the information for free on the internet. Don't give this greedy scoundrel a dime!<br />
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#31 Consumer Comment<br />
Seller financing<br />
AUTHOR: Brad - Wausau (U.S.A.)<br />
<br />
SUBMITTED: Monday, May 09, 2005<br />
Interesting comments from both sides. I have heard of Sheets, but have never purchased his information.<br />
<br />
My wife and I have purchased a duplex using seller financing and got cash back at closing. The cash back was used for the down payment. The seller was a large scale investor. He purchased several properties from another investor at a discount. He had no problem with the deal. We all won. We used traditional financing on the deal as well. Make sure you disclose all creative financing to the bank. If you do this, you are not doing anything " under the table ". I was told that banks don't like creative deals. I have not had a problem in central Wisconsin, where I live.<br />
<br />
Study the area of real estate you are interested in and find a mentor. I became friends with area investors at various clubs/gatherings. After buying a few lunches and making some follow-up calls, I had enough information and courage to take the next step. I found a buyers agent and we went to work.<br />
<br />
We are having success with real estate, but are not doing this full time. Yet. (75 hours a week combined haha).<br />
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#32 Consumer Comment<br />
Carleton Sheets and other Real Estate Guru's.<br />
AUTHOR: Matt - San Carlos (U.S.A.)<br />
<br />
SUBMITTED: Friday, July 08, 2005<br />
Folk's You can go round and round debating this subject matter.<br />
<br />
All of these real estate seminar companies are in one business - the education business. They sell seminars and related products, it just happens to be in the real estate field.<br />
<br />
I have attended a half dozen+ of these seminars<br />
(extended 3 day training as well) to investigate their claims and validity, and as a successful business professional I will say I am not condoning, or advocating any person or product or for that matter eliminating potential areas for success with these organizations.<br />
<br />
As with any investment or cash outlay I would suggest due dilgence, and the ablity to not be hurt by non-success. Analogy - If you cant afford<br />
to lose at the table (blackjack, Craps, roulette, etc..)then laying down $ may not be right option for you.<br />
<br />
Most discerning individuals most likely will not<br />
involve themselves with such entities with so many unanswered questions about these practices, especially only after a short one evening presentation. However, there are and always will be certain individuals that overcome numerous obstacles to be successful with some of these programs. To them - kudo's - keep working your<br />
life to your liking, hopefully they are implementing an dispostion of gratitude and concern to truly help others along the way, and for those others to perpetuate the process. That's true success.<br />
<br />
Let's look a little closer how these companies are set up.<br />
<br />
As a previous person mentioned these guru's organizations are all incorporated via third party entities. Yes,no biggie there - any company or individual for that matter should legally limit risk and liability under current federal and state law. (Either C Or S Corporation filing should involve your tax advisor & a small business attorney)<br />
<br />
Most of these Companies when utilizing infomercial media - employ a host of facilitator companies(mostly telemarketing or related org's) that place the orders for them in various markets around the country. (thus so many different 800#s even in the same regional market)In addition, these type of TM /"fulfillment" co's usally are representing a host of TV/internet products and customer service is twelth man on the deal team compared to "selling" and maximizing<br />
profits. (No secret they get Bonus $ for these add-ons and that sometimes most unfortunately involves non-ethical monetary commision build-up)<br />
<br />
It is here that numerous problems arise due to various factors not directly controlled by the originating company, of course they all are responsible in the long run for only working<br />
with reputable and proven law abiding consumer org's. Well after closely looking into a multitude of these real estate training companies, that practice and mindset may be difficult to find.<br />
<br />
This will apply to some while not to others, to some it may be moot issue, but to those out hard earned $$ it's no laughing matter. To these individuals may your matter be resolved in earnest and expeditiously, you certainly deserve it.<br />
<br />
It's obvious why these Training companies charge so much after the "loss leader" "wet the appetite"<br />
seminar because that's how they make their real money the profit starts kicking in after all the initial programs. Another Psychological aspect to the pricing is - "the more one puts into something the more they need from it" thus, the old adage "don't get anything for nothing" comes into play.<br />
<br />
They want you to keep investing, the more you have involved the more difficult it is to cut bait and move on if it does not work for you.<br />
<br />
For those that make Profit's on some deals they have a continued revenue stream for the :"belief factor" has been conquered.<br />
<br />
For these people the training is tailored to be more fruitful since they are now really "bought in" and they are differentiated from those that are not getting the deals. Thus, for others it<br />
a time and monetary waste.<br />
<br />
Responding to the request for HUD Settlement Statements from all of these real estate guru's<br />
and their members - FORGET ABOUT IT... Futile<br />
and it really isn't applicable with the structure of their organizations.<br />
<br />
Why?<br />
It's all about creating an In-House Network ? In-House Holding Company / or Syndicate if you so desire to call it.<br />
This is the nuts and bolts about these companies<br />
Ever been to one of these Seminars and seen how the presenter, or the sales staff "light up" if your an homeowner - they like it<br />
<br />
If your an homeowner with equity - they really like it<br />
If your a multi-dwelling owner with equity - they really love it -<br />
<br />
Do not have to ask why, they see $ signs for the syndicate.<br />
<br />
For those with credit challenges the following certainly applies moreso<br />
It's all about moving money around the network. This network of "investors" are the Mortgage / Lending Channel. They create a few primary lending sources(usually affliated in some manner)<br />
and it is through these closely connected financial entities that the $ moves around.<br />
<br />
They need the members to go find the deals and bring them to the network. Once a transaction<br />
takes place using "OPM" (the network) the investors get a piece of the profit/ the member gets a portion (really a finders fee) subject to the deal they conduct agreeable to the seller who hopefully finds it to their liking given their<br />
situation.<br />
<br />
It is here that deals really exist- to those who say Seller financing is not doable - it is ><br />
<br />
There will always be motivated sellers / distressed sellers / desperate sellers ><br />
<br />
Finding them and with regularity is key, the difference between the success one looks for and realization of that success. Are they out here, yes - are they everywhere- of course not.<br />
<br />
With more and more of these real estate training companies competing with each other - we are now seeing a host of intra-network deals, that are another reason housing pricing is creating bubbles<br />
in certain markets nationwide. That and a new round of speculation with new construction, are primary inflationary factors fueling most markets.<br />
+(lack of overall investor confidence in the stock market)<br />
<br />
So for those out there wanting Hud 1'S on these guru's or students therof teransactions, give it a rest. Unless they did HUD/FHA, VA, Or conventional financing - and that is not their market, not going to happen- only non-conforming low & no DOC loans, or most likely Seller Lender $, or OPM within the network, are the way deals get done. Like it not, that's what they sell.<br />
<br />
To Sum matters up -<br />
I BELIEVE $$$ CAN AND IS BEING MADE, NO DOUBT<br />
But this is only for certain individuals, willing to risk time, money, and hard effort - knowing that it should be an augmentation to your portfolio / regular work initially, then as circumstances change for the + would this be recommended F/T.<br />
<br />
If you have the belief that these infomercials are brought to you only for you - you are too Naive and don't belong in such a marketplace to begin with. They are pitching a product/service to make profit and it's a gamble you must be in position to make.<br />
<br />
To those with the resources already I say "batter up" find a mentor somewhere that will help you to<br />
acheive. If it doesn't work you will know one more thing in life that adds to your experience list.<br />
<br />
To those without the means/ this includes other family members or friends (borrowing from this arena can get really ugly) I say check out related material at your local bookstore/ library/ internet/ see about getting your RE License, check out local RE "clubs" and contacts related to making inroads into the RE market.<br />
<br />
This will be a lot safer route especially if you are risk adverse. Who knows, with enough passion and asking you may that one person to mentor you that truly cares to pass on success without the large outlay of $$.<br />
<br />
I hope this helps indivduals who are looking into<br />
such programs, to those with ugly stories a little more clarity, and to those involved doing well - continued successes. I would entertain input if you have any additional info affirming or disputing this subject matter. Complaints are well established and should only be rendered if extremely unique. Input from anyone with their contact# who has done these deals on a continued long-term basis to substantiate your claims so I can incorporate it to offset the numerous complaint logs would be helpful for others future discernment.<br />
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#33 Consumer Comment<br />
Buying / flipping<br />
AUTHOR: Joe - Tulsa (U.S.A.)<br />
<br />
SUBMITTED: Sunday, February 19, 2006<br />
I to am a mortgage broker. Yes you can do no money down, walk away from the table deals. I know of a local bank (in oklahoma) that will lend (if you have a track record with the bank as an investor, good credit) 80% of the appraised value of the property, regardless of sale price. A friend of mine now has 7 or 8 rental properties that he has bought this way, and sometimes will walk away with cash. These are bank portfolio loans, not FNMA/FHA loasn. And yes, if you look in the real estate guide in your paper, you will see occasional ads for owner financed properties for sale. As to "Flipping" the following is a snippet from the FHA guides:<br />
<br />
I. Background--HUD's September 5, 2001, Proposed Rule<br />
<br />
On September 5, 2001 (66 FR 46502), HUD published a proposed rule for public comment to address property ''flipping,'' the predatory<br />
lending practice whereby a property recently acquired is resold for a considerable profit with an artificially inflated value, often abetted by a lender's collusion with the appraiser. Most property flipping occurs within a matter of days after acquisition, and usually with only minor cosmetic improvements, if any. In the September 5, 2001, proposed<br />
rule, HUD proposed to restrict flipping by establishing new eligibility requirements for properties whose purchase is being financed with FHA mortgage insurance.<br />
<br />
As noted, property flipping involves the rapid re-sale, often within days, of a recently acquired property. Accordingly, HUD proposed<br />
to prohibit FHA financing for any property being sold within six months after acquisition by the seller. The proposed six-month restriction<br />
would not have applied to re-sales by HUD of Real Estate-Owned (REO) properties under 24 CFR part 291 and single family assets in<br />
revitalization areas pursuant to section 204 of the National Housing Act (12 U.S.C. 1710). The proposed rule also provided for legitimate<br />
transactions involving the quick and profitable re-sale of a recently acquired property, by authorizing HUD to grant case-by-case exceptions<br />
to the six-month restriction where the lender demonstrates that the sales price of the property corresponds to its market value.<br />
<br />
HUD also proposed to establish a new owner of record requirement for properties financed with FHA mortgage insurance. Unscrupulous<br />
investors will often flip properties they have contracted to purchase (but have not yet acquired) by selling or assigning the rights to the sales contract, often for a significant profit. The September 5, 2001, proposed rule addressed this issue by providing that only those properties purchased from the owner of record would be eligible for mortgages insured by FHA.<br />
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Yes, can be done, but you need to WORK at it!<br />
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#34 Consumer Comment<br />
Cash at Close<br />
AUTHOR: James - Pittsburgh (U.S.A.)<br />
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SUBMITTED: Thursday, August 17, 2006<br />
I am one that interested in getting started in real estate investing. Anyone who doesnt think that real estate is the best investment in the history of this country is flat out wrong. There is no denying that fact.<br />
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I have seen many posts here that question how you can get money back at close and call those situations plain crazy. I can vouch for those that do think this is possible.<br />
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I bought my house in Pittsburgh from an older couple. They were downsizing and had lived in the house for many years. They were asking $177,000 for the house that had been appraised for around that amount. The house was empty as they had already moved out. My wife and I went to our realtor and told her to offer them $164,000.<br />
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In my state the law says that you can get up to 6% cash back on the purchase price of the home. So the homeowner gave us a check for almost $10,000 at close. They got the check from us that day for the $174,000, we got the $10,000 check from them that day and everyone was happy. See, we got our mortgage for $10,000 more than our offer but got that $10,000 back at close from the very happy seller.<br />
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With so many baby boomers looking to downsize and or retire, there are going to be a lot of houses on the market that have this big equity build up. It's a good time to make money in real estate.<br />
<br />
<br />
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#35 Consumer Comment<br />
Do your homework David<br />
AUTHOR: Kgoose - Baton Rouge (U.S.A.)<br />
<br />
SUBMITTED: Monday, November 05, 2007<br />
David from Las Vegas has written to tell us how the zero down program (specifically Carleton Sheets) does not work. David, you need to open your mind up man. I just surpassed the $8M mark in properties that I own - or have an ownership interest in. For these properties I put down cash only one time - that was 10% down on a $186K - light industrial wharehouse - making my total cash investment - $18,600. This for a little over $8M in real estate - Thats EIGHT MILLION David. My net worth has just passed the $2.5M mark. My portfoiio is made up of apartment buildings, one 4 plex, some single family homes, and some industrial style wharehouses. I have found on more than one occasion a seller who IS INTERESTED in financing my deal, and actually I currently have a contract on a 35,000 sq ft office space where the seller will be carrying 25% of the $1.8M price tag. Not only that, but I've built in a seller credit to me for $50K at close AND the building will provide roughly $6K per month in positive cash flow.<br />
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Maybe you should have spent the extra cash for the "one on one" coaching. I did and it has made all the difference in my family's life.<br />
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I suggest you open your mind - spend some time - and look squarely at the opportunities you are trash talking.<br />
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Especially with the potential opportunities the market has created in Las Vegas in 2007.<br />
<br />
Kevin H<br />
Baton Rouge LA<br />
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#36 Consumer Comment<br />
A real education<br />
AUTHOR: Experienced Investor - Savage (U.S.A.)<br />
<br />
SUBMITTED: Tuesday, November 20, 2007<br />
The self-proclaimed amateur who wrote the inacurate information says more about him than it does about real estate investing, Carleton Sheets or his view of flipping.<br />
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I've been an investor and multi-business owner for over 15 years. There is no better time in history to invest in real estate than right now. I started with nothing and things progressed slowly until I ordered Carleton's course. Over the last decade I've gotten to personally know him and he is a wonderful, caring person who does still invest millions in real estate every year. At any rate, I have no reason to defend him other than the fact that the author of the complaint is inaccurate. The information in the course is easy to understand and very practical. Especially for the beginner. I started with one property and have owned over 2000 units and currently own over 500 rental units plus a couple dozen commercial buildings as well as mini-storage facilities, carwashes, etc. Over $16 million worth. And all the techniques are as valid today as they were 5 years ago or 15 years ago.<br />
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Now to address the mortgage side of things. I wonder if she is even still in the business. A few months ago it appeared easy for anyone to be a mortgage genius, but now you have to really know what you're talking about. I owned the largest mortage banking firm in Minneapolis for over 5 years before selling it. I know a thing or two about the mortgage industry. One of my current companies is the largest Credit Rehab organization in the midwest. So I know a little something about that as well. If there's one thing you can't do is rely on a mortgage professional to guide your financial future. There are many good mortgage professionals. And that's just my point. They are good at getting financing for people, gaining knowledge for investing should be garnered in other arenas.<br />
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For example, Flipping is neither illegal nor real estate investing. Flipping is a perfectly legal way of being a real estate speculator. You are buying low, doing improvements, and "hopefully" selling high. That's speculation just as buying stocks are speculative. Being a real estate investor means that you are buying property and holding that property over a period time taking advantage of appreciation, debt reduction, tax deductions, etc. What he's referring to is illegal flipping, which is the unscrupulous act of multiple individuals working together to defraud a buyer. It usually involves an appraiser, lender, title agent & an initial buyer who simply inflate the value of the property and pawn it off on an unsuspecting end buyer.<br />
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Bottom line, get off the bench and get in the game. But only after you have gained some valuable knowledge and set your goals. Don't let uneducated ney sayers hold you back. I've found that they fail at everything they do. It just happens to be real estate this time.<br />
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Best Wishes,<br />
<br />
Dale<br />
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#37 Consumer Comment<br />
Fraud is illegal, not flipping.<br />
AUTHOR: Harborstone - Jacksonville (U.S.A.)<br />
<br />
SUBMITTED: Tuesday, November 20, 2007<br />
Dear Sir,<br />
<br />
I found a couple of things wrong with your complaint. First, as titled, flipping houses (buying a house at a discount, repairing it, and reselling for $10's of thousands more) is not illegal... in fact that's the point. Second, where and what laws are you citing that say it is illegal to buy and sell "X" number of houses per year? That is absolutely absurd.<br />
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You mention "fake appraisals" I agree this is illegal. However, Carlton Sheets NEVER tells his students to inflate appraisals. Mortgage fraud is a crime, which from reading your report is what you're really getting at.<br />
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I can't help but rebut your complaint, because Carlton Sheets has never told anyone to inflate an appraisal, nor has he told students to engage in fraud. In fact, those practices can easily be avoided by using common sense and practicing good business. I am sorry real estate did not work out for you, but you are wrong to file a complaint for false advertising, when there are legitimate success stories of the Carlton Sheets program, and there are many who continue to use his system successfully. Also, the term flipping is not synonymous with mortgage fraud.<br />
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I found your report distasteful, inaccurate, and it really has accomplished nothing other than scaring people away from taking their chance to achieve financial freedom through Mr. Sheet's course, or the course of any other Guru. Real estate investing is still strong and legitimate in our country today, even with the current market. You can buy as man houses and sell as many houses as you want in a year, and the next year, and the next year. I can buy a house tomorrow morning and sell it the same day afternoon, legally. Conventional financing is not the only way to buy a house, there are many who use hard money lenders, private lenders, and their own money.<br />
<br />
I can tell you right now, you will not go to jail for real estate investing. You will not go to jail for flipping. You will not go to jail, because you bought and sold 500 houses in one year. You will not go to jail because you make $25,000 for selling a house, every single week.<br />
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You WILL go to jail for mortgage fraud, and this my friend is the moral of the story. Not false advertising by Carlton Sheets, Not "flipping is illegal". It's incompetent ad unethical mortgage brokers and dishonest "wanna be" real estate investors trying to take short cuts, who are the problem.<br />
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I hope you decide to get back into real estate investing, all you have to do is use common sense, be honest, and take the time to do things right. Finding houses to buy is no hard, finding the money to buy them is not hard, and it's not hard to sell them and make a huge profit either. You (or anyone else) can do all of this, legally.<br />
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The American Dream is alive and well.<br />
<br />
Good Day Sir,<br />
<br />
Jason (Real Estate Guru)<br />
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#38 Consumer Comment<br />
flipping is trouble<br />
AUTHOR: Ronald - Secaucus (U.S.A.)<br />
<br />
SUBMITTED: Friday, June 06, 2008<br />
My wife bought the Carlton Sheets program a few years back and we stupidly paid the 250 for the cd's. The first thing I noticed right away was they pushed hard the pitch to purchase the one-on-one instruction for which you would pay thousands. The second thing i noticed was the cd's really only outlined basic infomation and stuff, no secrets were revealed (except for one.) Much of the approaches they recommended were eiter grossly unrealistic for the begiiner, or years to old and now illegal or just no longer possiable.<br />
<br />
First off, the system, and what many say works relies on you getting financial backing from private sources (not banks or lenders.) This is something the average person simply does not have access to. Furthermore what person with money is going to hand over that much of their own money to someone with no real experince? You are a high risk and likely more than not your venture will not pan out with profits.<br />
<br />
Secondly, many states, lenders etc have since changed or passed the laws. First subject title. You can no longer sell in most areas any property unless you first have a title for the property. This means you have to purchase and close it before you can sell it. Getting a title takes time and some money. No title, no money.<br />
<br />
Thirdly, licensing. Many states, etc now require you you be licensed if you sell a certain amount of properies in a certain amount of time. The problem here is that many who did make money flipping homes did so by volume. You can no longer do the same thing so your only choice is a few sweet deals you might be lucky enough to find.<br />
<br />
Fourth, many home owners looking to sell without a regular real estate agent for example do so to aviod the agents fees. They still want the best market value and no liability when the deals done. So getting a deal under market value is a slim chance in any many areas.<br />
<br />
Fifth, location. Buying a run down house in a bad neighborhood or any area with problems like flooding or other problems may get you under market prices for a property but it will also make it near impossiable to resell. This is the location many gurus tell you to target. The second area that fits here is good nieghborhoods were the prices have topped out. See both areas are were you will likely find owners willing to cut a deal. In both areas, there are problems like: impossiable to sell in a timely manner, impossiable to make a profit, too many repairs needed to make a profit realistic.<br />
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Sixth, problem getting cash at closing. The seller is required to disclose all problems with a property, and something like a bad foundation can mean a property can never be sold except for the land. In areas where the market is topped out no one wants to sell at a loss, they have banks to pay off etc and they want to make money. You can receive money at closing, but only if the closing price is more than what is still owed to your lender for the remaining mortgage etc. By the way this is usuall paid to the seller, not the buyer. The buyer usually needs to sell the property first to make money. So this is where another problem is. You can't generally make money from buying a property, you must first own it, then sell it.<br />
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Seventh and last. Many of the mehods the gurus say to use are decades. Many of these same people are either in big financial trouble or in jail. Most, if not all gurus only make money by getting the next sucker to buy into their crap, otherwise theywould be doing real estate, not selling a rippoff cd to you. If you want o ignore everyones advice and believe these gurus crap, go ahead. Jail and bankrupcy court loves company.<br />
<br />
If you are a victim of a Seminar Company, We Can Help. See the Details at www.WesternCapitalVIP.com and email fraudinvestigation@mycollector.com Robert Paisolahttp://www.blogger.com/profile/00435871035547197331noreply@blogger.com0tag:blogger.com,1999:blog-6210684848441244744.post-86942231112943442262011-03-12T20:52:00.000-07:002011-03-12T20:52:06.451-07:00Robert Paisola and The Free Capitalist Rick Koerber 2011 (No Open)It all started with a representative in Utah who introduced Utah House Bill 477. Never in his wildest dreams dis he think that the American Public would be watching so closely. Watch as Robert Paisola interviews "The Free Capitalist" Rick Koerber on "Privacy in America"<br /><br /><br /><br /><iframe width="480" height="295" src="http://www.youtube.com/embed/kdTgGL-1afc?fs=1" frameborder="0" allowFullScreen=""></iframe><br /><br />If you are seeking assistance with a governmental entity, timeshare company, real estate matter, home owners association or anything that might interest the American Public , Check us out at www.WesternCapitalVip.com and www.WesternCapitalNews.comRobert Paisolahttp://www.blogger.com/profile/00435871035547197331noreply@blogger.com0tag:blogger.com,1999:blog-6210684848441244744.post-63557272590884614852011-02-28T22:58:00.000-07:002011-02-28T22:58:31.626-07:00Consolidated Resorts Strikes Again: Club De Soleil Fraud: Chicago Title Fraud: Robert Paisola Reports<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjSaUGhbp8OGVAY9YMzP_hyRbYGi1ls4YdP_c2QVONLhyQzWHxzXWhpyG__kAWncUZB4f8KwauWtfsz6pDjhxLnvQ_YoSMMdzfI7mkT2TwS2DwrtcwBVsSzSeLZoZHSGW_VigF_LKLyukk/s1600/Settlement.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjSaUGhbp8OGVAY9YMzP_hyRbYGi1ls4YdP_c2QVONLhyQzWHxzXWhpyG__kAWncUZB4f8KwauWtfsz6pDjhxLnvQ_YoSMMdzfI7mkT2TwS2DwrtcwBVsSzSeLZoZHSGW_VigF_LKLyukk/s400/Settlement.jpg" width="298" /></a></div>As you know, we have been dealing with the Artie and Todd Spector Fraud Machine at Tahiti Village and The Consolidated Resorts Properties for over four years.<br />
<br />
<br />
We battle this company day in and day out. One thing that we can not be is PAID OFF. We simply take our fight for you deadly serious.<br />
<br />
I want you to read a letter from a client that we have that has been a victim of the Artie Spector Scam. We have audio that we will be posting, however at this time, we want YOU to see exactly how we are approached daily.<br />
<br />
We are committed to help as many people as possible, but there is only so much time in a day. We are preparing for a Class Action Lawsuit against these people, and these are our results:<br />
<br />
<br />
<br />
<br />
Dear Mr Paisola:<br />
<br />
I want to thank you for you never ending work against Consolidated Resorts and their Chairman, Artie Spector. Our story is similar to the thousands of stories that you have posted, but these people Must Be Stopped.<br />
<br />
<div class="MsoNormal">Our Consolidated Resort Story …</div><div class="MsoNormal">My husband heard the advertisement for the free trip stay in Las Vegas and tour for Consolidated Resorts – Tahiti Village on the radio. He responded to the ad and made reservations. Consolidated Resorts made our accommodations at The Stratosphere. </div><div class="MsoNormal"> </div><div class="MsoNormal">In January 2009 we went to the presentation/ tour for Tahiti Village … which was actually not at Tahiti Village at all. We were simply on vacation. At the presentation, we were lead to believe, by our salesperson, Sean Collins, that Tahiti Village was the best thing that ever came to the strip … and we too could OWN a piece of the Famous Strip of Las Vegas. </div><div class="MsoNormal"><br />
</div><div class="MsoNormal">We were told by Collins that our investment would only gain in value and that it would be worth upwards of triple the value within several years. He further stated that this was a golden opportunity and that it WOULD sell out quickly. </div><div class="MsoNormal"><br />
</div><div class="MsoNormal">We were also told by Collins and his managers that this investment would allow us the opportunity to AMAZING travel deals and that we would NEVER pay full price for vacations again. They said that once you bought at Tahiti Village (a Consolidated Resort Property), that you could stay at any Consolidated Resort Property with just simply one phone call. </div><div class="MsoNormal"><br />
</div><div class="MsoNormal">They said that we could borrow against our "Investment" which is not true. </div><div class="MsoNormal"><br />
</div><div class="MsoNormal">They said that Tahiti Village would be your HOME resort, but you could stay and any of the resort that they owned. They stated that it would not be considered an exchange thru Interval Gold. It was just a benefit of owning a Consolidated Resort week.</div><div class="MsoNormal"><br />
</div><div class="MsoNormal">The entire presentation was full of lot’s of bells and whistles … even a spinning wheel and balloons to pop. </div><div class="MsoNormal">(See Covert Video Court Evidence 3498.3) </div><div class="MsoNormal"><br />
</div><div class="MsoNormal">They popped a balloon for us and WOW we won 6 Holiday Adventure Vacations … instead of the normal 2. ALL absolutely FREE … (wrong).</div><div class="MsoNormal"><br />
</div><div class="MsoNormal">It all sounded great and then Sean Collins and his managers got out this pencil and paper and started talking cost. They priced the Tahiti Village week for a two bedroom at upwards of $25,000.00. <b>We immediately said NO. That we were not interested, that it was too much and we could not afford it.</b> </div><div class="MsoNormal"><br />
</div><div class="MsoNormal">He continued on with how great of investment that it was and that we could even borrow money against our investment in the future. (Federal Fraud) He made us feel as if we were not intelligent, because we were not taking advantage of this awesome opportunity. </div><div class="MsoNormal"><br />
</div><div class="MsoNormal">He continued drawing on a piece of paper and telling us how we could sell mini vacations to friends, (See exhibit c-32) (that we would get FREE) and by selling these vacations, we could pay for our week. <b>We again said NO!</b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Our salesman then got up and went into a room … then came back to our table and said “I’ve got GREAT news for you.” I just talked to my manager and he said “that<b> I can get in you the back door, for less than half.</b>” He said that a week at <b>Club de Soleil </b>had become available and we could buy the every other year there. </div><div class="MsoNormal"><br />
</div><div class="MsoNormal">He said that we would never even have to step onto the property of Club de Soleil … that all we had to do is call The Consolidated Resort reservation line and make our reservation for Tahiti Village. He said that this was “Our way into the CLUB!!!! and that we <u><b>only</b></u> had to pay <b>$11990.00</b>. </div><div class="MsoNormal"><br />
</div><div class="MsoNormal">He said that this was a special deal and that he rarely saw one come available … but it was our lucky day <b>and we now had a chance to own a part of Vegas!</b> </div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b>My husband and I talked about it and said no again</b>. We did not want to spend the money at this time. The salesman then filled our heads with 40 more minutes of how amazing this opportunity was and that we would be crazy to pass it up. I tried to leave many times and was not able to leave, I felt like a hostage. I asked him on several occasions about our desire to be on the Strip in Vegas and that we were also interested in the Hawaii property. </div><div class="MsoNormal"><br />
</div><div class="MsoNormal">He assured us that one simple phone call would put us at any of The Consolidated Resorts.properties.</div><div class="MsoNormal"><br />
</div><div class="MsoNormal">After 20 more minutes of the sells pitch and our minds full of hype … we were pushed and pushed into just saying yes to get out of there. He said we could cancel at any time and that was our plan.</div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Horns blew … streamers flew …. And we were told that after signing the paper work that we would go back to our hotel in style … a limo awaited us … because we now OWNED part of the Vegas Strip. . </div><div class="MsoNormal"> Our total purchase prices was $12,000 plus $300.00 settlement charges</div><div class="MsoNormal" style="text-indent: 0.5in;"> We put down $1600.00 on my credit card</div><div class="MsoNormal" style="text-indent: 0.5in;"> They financed $11,000 at 16.90% interest</div><div class="MsoNormal" style="text-indent: 0.5in;"> We put it on Auto Pay on my credit card because they said that if would waive a monthly fee</div><div class="MsoNormal" style="text-indent: 0.5in;"> At signing we were told that we had to join Interval Gold (an exchange program)but this fee would be waived. Our card was charges $404.00 for something … I do not have an exact invoice this ????</div><div class="MsoNormal"><br />
</div><div class="MsoNormal">We left in a limo … </div><div class="MsoNormal"><br />
</div><div class="MsoNormal">We have been trying to resolve this matter for 2 years. Even though we knew that this was a scam, we were terrorized that our credit would be ruined and we would face "Foreclosure"</div><div class="MsoNormal"><br />
</div><div class="MsoNormal">So,For 2 years we made every payment on our credit card …. </div><div class="MsoNormal"><br />
</div><div class="MsoNormal">In January, I called the Consolidated Resort Reservation number that was in our package … it was disconnected. I went online and found another number (and some other interesting info that I will comment on later Mr. Paisola has these tapes). </div><div class="MsoNormal"><br />
</div><div class="MsoNormal">I called the number from online and never could talk to anyone. I then called a different number and went into a queue and was on hold for 30 minutes. I Then talked to the lady on the switchboard … she could not help me. </div><div class="MsoNormal">I Then I spoke to a girl name Megan and told her I wanted to make a reservation at Tahiti Resort. </div><div class="MsoNormal"><br />
</div><div class="MsoNormal">She said, you own at Clue de Soleil and that I could not make a reservation at Tahiti Village unless I paid the regular room rate. </div><div class="MsoNormal"><br />
</div><div class="MsoNormal"> I told her what we bought and why and what we were told. She said “<b>Oh, we changed that last year. You can no longer just call us to stay at any of our resorts.”</b> She said, <b>“You have to do something called Bank your week and try to exchange it with Interval Gold.”</b> </div><div class="MsoNormal"><br />
</div><div class="MsoNormal"> I was furious and stated my frustration with Megan. She just said sorry, can’t help you! Staying at any of the Consolidated Resorts was THE ONLY reason that we bought, besides being compelled!!!!!</div><div class="MsoNormal">I then started researching Consolidated Resort and learned that they had gone bankrupt …. And that I was just one of many that had been scammed! I canceled the credit card, as you suggest so that the payments that were being stolen would be stopped.</div><div class="MsoNormal">Needless to say …. No one has been willing to help me, but they call daily wanting money.<br />
That is why I am dealing with you. I could not believe the settlement agreement that I read on your site, You got money back when every other company was simply lying to us. (See Below) </div><div class="MsoNormal"><br />
</div><div class="MsoNormal">I have paid The ASNY Company 6400.00 the following …. And have received NOTHING in return:<br />
<br />
Thank you for taking our case to the American Public, and please guard the fraud deed information until court. We know that you are the only person in the Nation able to take this company on and put Arthur Spector in Jail. I Dare them to mess with my Credit.<br />
<br />
There needs to be more people like you. and if anyone is reading this and has gone through a similar situation , there is only one answer... Robert Paisola<br />
<br />
It will all come out in court.<br />
<br />
Thank you for accepting us as a VIP Client.<br />
<br />
<br />
OUR NOTE-<br />
If you are dealing with this company, Tahiti Village, ASNY, or any of the Arthur Spector Companies, visit www.WesternCapitalVip.com Now and Read carefully and then call Western Capital At 1-877-517-9555<br />
for results. Notice the Confidential Settlement Agreement Above states "<br />
<br />
<a href="http://www.zimbio.com/Robert+Paisola/articles/t0aTcc6mXBK/Tahiti+Village+Consolidated+Resorts+Confidential">http://www.zimbio.com/Robert+Paisola/articles/t0aTcc6mXBK/Tahiti+Village+Consolidated+Resorts+Confidential</a></div><div class="MsoNormal"></div><div class="MsoNormal"><b>Here is 25,000 but Do Not Tell Robert Paisola or Western Capital (from Randy Richards Attorney - Disbarred) </b></div><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjSaUGhbp8OGVAY9YMzP_hyRbYGi1ls4YdP_c2QVONLhyQzWHxzXWhpyG__kAWncUZB4f8KwauWtfsz6pDjhxLnvQ_YoSMMdzfI7mkT2TwS2DwrtcwBVsSzSeLZoZHSGW_VigF_LKLyukk/s1600/Settlement.jpg">https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjSaUGhbp8OGVAY9YMzP_hyRbYGi1ls4YdP_c2QVONLhyQzWHxzXWhpyG__kAWncUZB4f8KwauWtfsz6pDjhxLnvQ_YoSMMdzfI7mkT2TwS2DwrtcwBVsSzSeLZoZHSGW_VigF_LKLyukk/s1600/Settlement.jpg</a>Robert Paisolahttp://www.blogger.com/profile/00435871035547197331noreply@blogger.com0tag:blogger.com,1999:blog-6210684848441244744.post-81861114370094092732011-01-04T21:18:00.000-07:002011-01-04T21:18:20.255-07:00Federal Judge Allows RICO Suit Over Debt-Collection Tactics To Proceed Against Leucadia National and Mel Harris and Associates, Robert Paisola Reports Live<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhD2JKBmN4_eJxodEzh2fcPbTBqr9csUQfhW1pQM4AclA610nmfGfkjeGh8Nv_oNqupDp67mDPKgPpssjYZWtDJgGcNP6HmGVB5Mh0YHsL_ghe_0AT0ys3VoYQMVfdp-xkiCPcXBOxIzGM/s1600/Debt+Collection+Industry+Under+RICO+Charges+Robert+Paisola.JPG" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="266" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhD2JKBmN4_eJxodEzh2fcPbTBqr9csUQfhW1pQM4AclA610nmfGfkjeGh8Nv_oNqupDp67mDPKgPpssjYZWtDJgGcNP6HmGVB5Mh0YHsL_ghe_0AT0ys3VoYQMVfdp-xkiCPcXBOxIzGM/s400/Debt+Collection+Industry+Under+RICO+Charges+Robert+Paisola.JPG" width="400" /></a></div><span style="font-size: large;"><b>Federal Judge Allows RICO Suit Over Debt-Collection Tactics To Proceed Against Leucadia National and Mel Harris & Associates, Robert Paisola Reports Live</b></span><br />
A federal judge in New York has rejected attempts by <a href="http://www.google.com/finance?client=ob&q=NYSE:LUK">Leucadia National</a> and the debt-collection law firm <a href="http://melharrislaw.com/">Mel Harris & Associates</a> to dismiss a class-action lawsuit accusing them of a racketeering scheme to obtain judgments in New York courts against unwitting consumers around the country.<br />
In<a href="http://www.scribd.com/doc/46275989"> the ruling issued Dec. 29</a>, U.S. District Judge Denny Chin said the plaintiffs could proceed with claims they were the victims of a “sewer service” scheme in which process servers fraudulently told the court they’d presented debt-collection papers to their targets as required under the law.<br />
<br />
<a href="http://www.blogger.com/goog_80237679">READ THE FEDERAL COURT RULING AGAINST </a><br />
<a href="http://www.scribd.com/doc/46275989/Mel-Harris-12-29-10-Order">Leucadia National and Mel Harris & Associates</a><br />
<br />
The lawsuit on behalf of up to 100,000 borrowers claims lawyers at Mel Harris then used those statements to obtain default judgments against the consumers and threaten to garnish their wages or freeze money in their bank accounts. The customer for these services was Leucadia, a financial-services firm that bought hundreds of thousands of defaulted debt claims for pennies on the dollar and hired Mel Harris to recover what it could.<span id="more-644"></span><br />
The suit has echoes of the “robosigner” controversy over home mortgages, but with important differences. Mortgages are loans secured by a physical property, so there’s rarely any dispute over what the homeowner owes and what the lender can seize if he doesn’t pay.<br />
<br />
Leucadia was trying to collect on unsecured debt, where there is no collateral and little recourse for the lender. To get judgments against the borrowers, the judge said, a single Mel Harris employee named Todd Fabacher signed 40,000 affidavits attesting to the accuracy of debt claims.<br />
<blockquote>Assuming 260 business days a year, Fabacher had to have personally (and purportedly knowledgeably) issued an average of twenty affidavits of merit per hour, i.e., one every three minutes, over a continuous eight-hour day.</blockquote>Mel Harris has drawn attacks from consumer advocates over its debt-collection practices, which include filing more than 100,000 lawsuits in state courts around the country. The Federal Trade Commission <a href="http://www.ftc.gov/opa/2010/07/debtcollect.shtm">has expressed concern</a> about debt collectors who obtain default judgments against consumers who were never told of the lawsuit against them and never appeared in court.The term “sewer service” refers to the practice of throwing service papers in the sewer but telling the court the target received them in person.<br />
<br />
The judge dismissed RICO claims against individual employees of the debt collection firms but allowed them to proceed against the companies. He also rejected an attempt by Mel Harris to claim it isn’t a debt collector under federal law, as well as its argument statements it made in court were protected under the so-called “litigation exception” preventing suits over statements in court filings.<br />
<br />
The class action is Monique Sykes vs. Mel Harris, 09cv8486, Southern District of New York.<br />
<br />
<a href="http://www.robertpaisola.com%20/">Robert Paisola</a> Commentary:<br />
Never Ever Ever Pay A Debt Collector A Dime<br />
Need Assistance <a href="mailto:vip@robertpaisola.com">vip@robertpaisola.com</a><br />
See <a href="http://www.westerncapitalvip.com/">http://www.WesternCapitalVip.com</a> Your Only Solution,,,Robert Paisolahttp://www.blogger.com/profile/00435871035547197331noreply@blogger.com0tag:blogger.com,1999:blog-6210684848441244744.post-60121855198053545052010-07-03T12:12:00.000-06:002010-07-03T12:13:04.254-06:00<div class="separator" style="clear: both; text-align: center;"><br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9YaUoY842U-avdBw0UmExMWqt58pZp3iIAp-DUKuCTMsZoUTY8MTwCvoRPjhy62itNEgb4MmjyVs31RoBvdnzfwefFUE1Q18Sa96Ywt3Aub403Dw5AdrRCKlRc8_w244n2tMK38UfLBL4/s1600/5960_1151596522423_1602952448_393316_6112371_n.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9YaUoY842U-avdBw0UmExMWqt58pZp3iIAp-DUKuCTMsZoUTY8MTwCvoRPjhy62itNEgb4MmjyVs31RoBvdnzfwefFUE1Q18Sa96Ywt3Aub403Dw5AdrRCKlRc8_w244n2tMK38UfLBL4/s320/5960_1151596522423_1602952448_393316_6112371_n.jpg" /></a></div><br /><b>Subject: Independence Day and 1,331 member's and counting!</b><br /><br />Hello my fellow group members,<br /><br />My name is Robert Paisola and I created the group Sky Las Vegas and Taking back America. Our group has swelled to over 130,000 members. Thank you all for sending out invitations and being members of this group. I know that I always say this, but you stand as a voice for the unspoken majority in this country that believes in our traditional Christian values that built this country. With that in mind I wanted to share some thoughts on the meaning of the holiday we will be celebrating this weekend.<br /><br />On July 4th, America's independence will be celebrated in grand fashion with parades, fireworks and backyard BBQs. Did you know that this year (2010), Americans will commemorate the 234th anniversary of the approval of the Declaration of Independence by the Continental Congress, the act that set the 13 American colonies on their road to national sovereignty?<br /><br />Take a moment to watch this video that we have produced in association with our friends at The Free Capitalist Project and Founders University. This is an amazing historical image of what it takes to truly be free as Americans.<br /><br /><object width="500" height="405"><param name="movie" value="http://www.youtube.com/v/8O6eOFzSobM&hl=en_US&fs=1?color1=0x5d1719&color2=0xcd311b&border=1"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/8O6eOFzSobM&hl=en_US&fs=1?color1=0x5d1719&color2=0xcd311b&border=1" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="500" height="405"></embed></object><br /><BR><br /><object width="500" height="405"><param name="movie" value="http://www.youtube.com/v/OOv25YCzH3E&hl=en_US&fs=1?color1=0x5d1719&color2=0xcd311b&border=1"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/OOv25YCzH3E&hl=en_US&fs=1?color1=0x5d1719&color2=0xcd311b&border=1" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="500" height="405"></embed></object><br />When enjoying this weekend’s festivities, have fun and be safe, but take a moment to remind yourself and your family what this day represents. This day stands in history as the day a group of our countries forefathers declared their freedom; freedom from tyranny, religious persecution and taxation without representation. That freedom has reigned on and continues to thrive after 234 years. Remember to think of all the blood, sweat and toil that has been sacrificed for us to be able to enjoy this weekend and when you can, say a prayer for our troops still in harm’s way that are still protecting our freedom to this day.<br /><br />Please be safe this weekend. God bless you all and God bless America!<br /><br />Regards,<br /><br />Robert Paisola<br />CEO<br />The Western Capital Foundation<br />"Taking back America"<br />http://www.skylasvegas.infoRobert Paisolahttp://www.blogger.com/profile/00435871035547197331noreply@blogger.com0tag:blogger.com,1999:blog-6210684848441244744.post-17006669439712964172009-12-24T17:56:00.001-07:002009-12-24T17:56:58.817-07:00A Special Message from Robert Paisola this Holiday Season<div class="separator" style="clear: both; text-align: center;"><br /><a href="http://4.bp.blogspot.com/_E-ibziE1a7w/SzQL781y22I/AAAAAAABHnA/klIFdkLzLSU/s1600-h/21579_1231434038311_1602952448_593151_3428528_a.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="http://4.bp.blogspot.com/_E-ibziE1a7w/SzQL781y22I/AAAAAAABHnA/klIFdkLzLSU/s400/21579_1231434038311_1602952448_593151_3428528_a.jpg" /></a><br /></div><br />As the holiday season comes upon us many in this country will be wondering what the new year will bring for them. The countless homeless, about to be homeless, underemployed and unemployed will be thinking about life before the crisis brought on - by self admission - by Goldman Sachs. At the same time, the employees of Goldman Sachs will be busy feasting, shopping and sharing, counting all the money they just made in bonuses on the backs of the American people.<br /><br />Holidays - no matter what religion or beliefs you have - are typically a time to sit back, enjoy family and friends and just have a good time. Not this year or even the year before and probably not next year either. A very sad commentary on the state of the state of America.<br /><br />As the new year approaches, I see it as a new beginning. An opportunity for Americans everywhere to stand up, speak out and take back control of "our" country. The message to our politicians, our administration and to our controlling "too big to fail" should be and is - we have had enough. We are the people of this nation. We are your bosses. You all work for us. We want justice and we want our freedom back. We want jobs and we want homes. We want food to feed ourselves and our children. We want our American way of life back. Not with the excesses that were allowed us by our government and financial institutions in recent years but the way of life we enjoyed prior. Sure, it did not work for all, even then, but that should have been our mission - to help those less fortunate then the majority. Instead, we walked many millions of people into a candy store and said, "you can have all you want...just take it". We were constantly reminded of this by television commercials from JPMorgan/Chase in their "I want it all and I want it now" campaigns.<br /><br />Instead of helping those "less fortunate" we increased the numbers of "less fortunate" and increased the incomes and lifestyles of those already on the top tier of income and lifestyle.<br /><br />So as this holiday and New Year season is fast approaching, let us all resolve to take action and let our rulers know just how we feel. You see, we still have one thing going for us here in America - we can still vote someone out of office. We can let them know our intentions. We're going to fire them and allow them their pensions and health benefits. A gift far larger then any they have given us in quite some time.<br /><br />With a resolution of taking action and correcting the many wrongs that exist, perhaps, resolution by itself, can help us take the time out during this holiday season to enjoy our family and friends without the stress that exists.<br /><br />To your success and NEVER GIVE UP<br /><br />Robert Paisola<br />http://www.RobertPaisola.com<br />CEO<br />The Robert Paisola FoundationRobert Paisolahttp://www.blogger.com/profile/00435871035547197331noreply@blogger.com0tag:blogger.com,1999:blog-6210684848441244744.post-75016490415055577632009-07-29T00:17:00.000-06:002009-07-29T00:18:03.687-06:00The Consolidated Resorts Tahiti VillageTranscripts, Robert Paisola Reports LIVEEXCLUSIVE- The Consolidated Resorts Tahiti VillageTranscripts- Prison for Artie Spector? http://tinyurl.com/ArtieSpectorIndictmentFBI Robert Paisola Reports LIVERobert Paisolahttp://www.blogger.com/profile/00435871035547197331noreply@blogger.com0tag:blogger.com,1999:blog-6210684848441244744.post-64769131276895472802008-04-25T12:15:00.002-06:002008-04-25T12:21:53.596-06:00JPMorgan Chase Involved in Illegal and Fraudulent Loan Advice to Lenders- Robert Paisola ReportsIf you’ve been following the reports on the Cay Clubs con, you’ve probably met Carisa and Craig Urban — two investors who got burned by Cay Clubs and one of its property managers, Phil Graham. <br /><br />On Thursday, March 27, The Oregonian ran an article entitled “Chase mortgage memo pushes ‘Cheats & Tricks’,” in which reporter Jeff Manning exposes an incriminating memo that was being circulated amongst loan officers at JPMorgan Chase. The memo, called “ZiPPY Cheats & Tricks,” encourages loan officers to fudge facts and figures on loan applications, if necessary, to gain approval for loan applications that otherwise would be rejected by the bank’s automated underwriting system, ZiPPY. <br /><br /><br /><a href="http://www.flippingfrenzy.com/wp-content/uploads/2008/04/zippycheatstricks2.jpg">http://www.flippingfrenzy.com/wp-content/uploads/2008/04/zippycheatstricks2.jpg</a><br /><br />(click above to see memo)<br /><br />The main problem with this practice–in addition to being illegal–is that it deceived loan applicants into believing that they could easily afford payments on the loans for which they were applying. After all, most borrowers assume, “the bank certainly wouldn’t approve a loan if I couldn’t make the payments.” This is exactly what happened to Cay Clubs investors Carisa and Craig Urban, as they relate in their own words:<br /><br />We are approaching the one year anniversary of our investment in a Las Vegas Cay Club condo, but there’s not much to celebrate. We have sunk into the real estate and mortgage fraud abyss like so many others. It has been a long and grueling process to find someone who will listen to our story, believe what we have said, and assist us in seeking justice.<br /><br />We purchased our first investment property during the era of the “mortgage meltdown,” when mortgage fraud was on the rise. Recently, we came across a disturbing memo that has been linked to a former Chase Account Representative, Tammy Lish. According to JPMorgan Chase, this is not an official company memo, they do not condone the practices recommended in the memo, and they fired the Account Representative as soon as they discovered who was responsible for it. We don’t doubt any of these claims. From our experience with Chase, however, we do believe that the recommendation in this memo were common practice. <br /><br />The memo provides detailed information on how to work around the company’s automated underwriting system – a system designed to function as a gatekeeper, rejecting loan applications when borrower do not meet the minimum requirements. Here are the recommendations that the memo contains:<br /><br />Always select “ALTERNATE DOCS” in the documentation drop down. <br />Borrower(s) MUST have a mid credit score of 700. <br />First time homebuyers require a 720 credit score. <br />NO! BK’s OR Foreclosures, EVER!! Regardless of time! <br />Salaried borrowers must have 2 years time on job with current employer. <br />Self employed must be in existence for 2 years. (verified with biz license) <br />NO non-occupant co borrowers. <br />Max LTV/CLTV is 100% <br /><br />The memo also provides step-by step instructions on how to gain favorable SISA (Stated Income, Stated Assets) findings; in other words, how to make an applicant’s income and assets look good on paper: <br /><br />In the income section of your 1003, make sure you input all income in base income. DO NOT break it down by overtime, commissions or bonus. <br />NO GIFT FUNDS! If your borrower is getting a gift, add it to a bank account along with the rest of the assets. Be sure to remove any mention of gift funds on the rest of your 1003. <br />If you do not get Stated/Stated, try resubmitting with slightly higher income. Inch it up $500 to see if you can get the findings you want. Do the same for assets. <br />We find it interesting that there were so many similarities between what the memo stated and what our loan officer from Chase Bank, Ross Pickard, actually did to us and numerous other investors who purchased Cay Club properties. Ross Pickard simply followed the #3 recommendation and plugged in inflated numbers for our income and assets to get the loan approved. That’s mortgage fraud, plain and simple.<br /><br />He also labeled our purchase as a second home instead of an investment property. When we questioned him about it he said, “We can label it as a second home because with the Cay Clubs lease back agreement you would have possession of the property 2 weeks out of the year.”<br /><br />In talking with other professionals, we have since come to question many aspects of this transaction. At the time, however, we believed we were working with a legitimate developer and a legitimate loan originator and lender. After all, JPMorgan Chase is no mom-and-pop operation. We approached the transaction believing we could trust these professionals. Cay Club Resorts also offered to waive our first year of HOA fees if we used their preferred vendor, Ross Pickard. I guess this shows our naivety and inexperience as first time investors. <br /><br />As a result of this fraud, many of us are left struggling to pay mortgages we cannot afford–mortgages that no lender would have approved if it had been given accurate facts and figures. Moreover, we now owe mortgages on properties that are worth less than we owe on them. We can’t even refinance or sell our way out of trouble.<br /><br />We know that an employee in the loss mitigation department from Chase Bank has been assigned to deal with Las Vegas Cay Club loans, but many owners do not qualify for deed in lieu of foreclosure or a short sale, which would enable us to get out from under these properties without losing any more money. <br /><br />So where does that leave us? Stuck in the mortgage fraud abyss! The ZiPPY Cheats & Tricks memo is blatant proof that shady transactions were going on behind the scenes. <br /><br />There is a task force currently looking into Ross Pickard’s bad practices, and it is only a matter of time before the truth comes out. Chase played a major role in the acts committed. Now it is time for Chase Bank to right its wrongs and the deceptive practices of its loan officers.<br /><br />~ Carisa & Craig Urban<br /><br />Fortunately, when fraud can be proven to have been committed on a loan application, the borrowers can file a RESPA (Real Estate Settlement Procedures Act) complaint and actually force the lender to renegotiate the terms of the loan. Carisa and Craig Urban have an open and shut case, proving that fraud was committed in approving and processing their mortgage loan.<br /><br />Our fraud busting team is currently working with the Urbans’. We have carefully audited their loan application and highlighted the specific incidents of fraud that were committed and are in the process of filing a RESPA complaint on behalf of the Carisa and Craig. We fully expect justice to be served and the Urbans’ to receive some long awaited relief.Robert Paisolahttp://www.blogger.com/profile/00435871035547197331noreply@blogger.com0tag:blogger.com,1999:blog-6210684848441244744.post-74398770878766499762008-04-25T11:46:00.003-06:002008-04-25T11:49:11.413-06:00Southern Florida Housing Crisis - Proof- Posted by Robert PaisolaMatt Sanchez reports live from Coral Gables Florida with video that shows that most every home on an upscale suburban street is either for sale or in Foreclosure, Video Courtesy of LiveLeak.com <br /><br /><embed src="http://www.liveleak.com/e/5e7_1209083855" width="450" height="370" type="application/x-shockwave-flash" pluginspage="http://www.macromedia.com/go/getflashplayer" scale="showall" name="index"></embed>Robert Paisolahttp://www.blogger.com/profile/00435871035547197331noreply@blogger.com0tag:blogger.com,1999:blog-6210684848441244744.post-90923331789806228492008-04-25T11:09:00.001-06:002008-04-25T11:13:05.515-06:00Bank of America to ax Countrywide name, Posted by Robert PaisolaThursday, April 24, 2008 - 11:47 AM HAST<br /><br />Bank of America to ax Countrywide namePacific Business News (Honolulu)<br />Bank of America Corp. plans to drop the Countrywide Financial moniker after it closes on its purchase of the troubled mortgage lender later this year. <br /><br />California's largest bank generally drops the name of an acquired institution. (Keeping the U.S. Trust brand last year was an exception.) <br /><br />BofA may be eager to distance itself from the Countrywide brand, given the scrutiny its lending -- and collection -- practices are now receiving in the wake of the nation's housing bubble. <br /><br />BofA (NYSE: BAC) CEO Ken Lewis told shareholders at that bank's annual meeting in Charlotte, N.C., of the plans to discontinue using the Countrywide (NYSE: CFC) name. <br /><br />Earlier this week, the bank disclosed in testimony to the Federal Reserve that it plans to boost Countrywide's lending standards, eliminating altogether subprime loans and option adjustable-rate mortgages that include a feature in which the loan balance actually rises over time if borrowers routinely make the minimum payment permitted. <br /><br />Lewis also reiterated his commitment to the Countrywide acquisition, which is expected to close in the third quarter. <br /><br />BofA announced in January that it would buy Countrywide in an all-stock transaction worth about $4 billion. Later that month, Countrywide said 33.64 percent of its subprime mortgages were delinquent at the end of 2007. That was up from 29.08 percent in September and 21.22 percent in December 2006. <br /><br />In August, BofA invested $2 billion in Countrywide, the country's largest mortgage lender. BofA's investment came in the form of a nonvoting convertible preferred security yielding 7.25 percent annually. The security can be converted into 16 percent of Countrywide's common stock. <br /><br /><br /><br />San Francisco Business TimesRobert Paisolahttp://www.blogger.com/profile/00435871035547197331noreply@blogger.com0tag:blogger.com,1999:blog-6210684848441244744.post-53565499535751823282008-04-24T21:34:00.002-06:002008-04-24T21:41:01.100-06:00Utah Homes Sales Dropping , Robert Paisola Reports<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhxX0k8tz3BemkJoC9wZNq_9295bzpFOu_HLocTfzLF7zhVSpZfu361_qCFs1f4NEMmNvkKasox9ilBZDc4VKMl7odUBF6RsGJ1Gda_uJJlKi11Uy6Zbk3TTmTlyZkaVEa5p-q0cs9BUkRO/s1600-h/photo_servlet.jpg"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhxX0k8tz3BemkJoC9wZNq_9295bzpFOu_HLocTfzLF7zhVSpZfu361_qCFs1f4NEMmNvkKasox9ilBZDc4VKMl7odUBF6RsGJ1Gda_uJJlKi11Uy6Zbk3TTmTlyZkaVEa5p-q0cs9BUkRO/s400/photo_servlet.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5193022810084829970" /></a><br /><strong>Utah Homes Sales Dropping </strong> <br />Last Edited: Thursday, 24 Apr 2008, 8:07 AM MDT <br /><br />SALT LAKE CITY -- Plummeting home sales along the Wasatch Front are finally starting to take their toll on selling prices.<br /> <br />The Salt Lake Board of Realtors says sales of existing single-family homes in Salt Lake County fell by 42.2 percent in the first quarter, compared with the same period last year. Median selling prices were virtually unchanged over that period, rising less than 1 percent, to $242,000. Just a year earlier, the increase was more than 20 percent from the previous year.<br /> <br />In Davis County, which had a 26.6 percent decline in home sales, median prices remained largely unchanged at $220,000.<br /> <br />Average prices fell in Tooele County by 6.3 percent, to $180,000, coinciding with a steep 45.5 percent drop in sales from last year. <br /><br />Another Story<br /><br />Foreclosure future grim for Utahns <br />By Jasen Lee<br />Deseret News <br />Published: April 17, 2008 <br />Utah's housing bubble is forecast to burst in a big way, with one in 25 Utah homeowners projected to be in foreclosure in the next two years, according to a report released Wednesday by The Pew Charitable Trusts.<br />The report attributed the rise in foreclosures to subprime loans made in 2005 and 2006. In those years, 24 percent of home loans in Utah were subprime.<br /><br />The outlook is grim in several other states, as well, including Nevada, where one in 11 homeowners are projected to be in foreclosure in the next two years, and Arizona, where one in 18 homeowners may face the same circumstance. Rounding out the five states with the highest projected foreclosure rates were California at one in 20, and Utah, which tied with Colorado at one in 25, or a 4 percent rate of foreclosure.<br /><br />"Is the American dream slipping away?" asked Shelley Hearne, managing director of Pew's Health and Human Services program, in a letter introducing the report, titled "Defaulting on the Dream: States Respond to America's Foreclosure Crisis."<br /><br />Because of foreclosures in their communities, 40 million homeowners could see their property values and their municipalities' tax bases drop by as much as $356 billion, largely over the next two years, said Hearne, a professor of health policy and management at Johns Hopkins University.<br /><br />"The stakes are incredibly high. Homeownership is the primary vehicle through which American families build financial security," she said. "It also is an essential building block of state and local economies."<br /><br />Jim Wood, director of the University of Utah's Bureau of Business and Economic Research, said that Utah's previous highest rate of foreclosures was about 2 percent in 2002, coinciding with the last recession. He noted that foreclosures are closely tied to unemployment rates and rapid home price appreciation, which Utah was able to avoid for the most part during the national housing boom, due to the state's strong, stable economy.<br /><br />The Pew report's prediction of a 4 percent foreclosure rate "would be close to an all-time high," he said "It's quite pessimistic — double what we've been before."<br /><br />He attributed the state's recent housing bubble to overly optimistic beliefs by those in the housing industry, combined with eager homebuyers and sellers, which prompted a home-building run-up during the past few years.<br /><br />Hearne said that the Pew study is the first comprehensive look at what all 50 states and the District of Columbia are doing to try to address the subprime mortgage fallout. The study was a joint effort between the Pew Center on the States and Pew's Health and Human Services Program.<br /><br />"Stronger standards from federal policymakers could have helped avert this crisis," Hearne said. "Future legislation must consider ways to strengthen standards to prevent more troubling loans from being made."<br /><br />Fourteen states, including Utah, have created statewide foreclosure task forces to bring government, lenders, consumer advocates and experts together to address the crisis.<br /><br />The Pew researchers analyzed two principal data sets: the Mortgage Bankers Association 4th Quarter National Delinquency Survey, and the Center for Responsible Lending's foreclosure projections and subprime spillover data.<br /><br />The Mortgage Bankers Association quarterly data are based on survey sampling techniques and offer a point in time picture of loans in various stages of delinquency or in the foreclosure process, the report said. The MBA foreclosure estimates refer to all loans in the foreclosure process, as well as loans that are seriously delinquent, or more than 90 days past due.<br /><br />The Center for Responsible Lending's estimates evaluate the total number of subprime loans disbursed during 2005 and 2006 and give the number of loans the analysts expect will be foreclosed upon. This estimate includes foreclosures that will occur in 2008, as well as subsequent years.<br /><br />Wood said resets of variable-rate subprime loans have contributed to the increase in foreclosures, both nationally and in Utah.<br /><br />"We will probably go well above the national average," he said, "but 4 percent seems high."Robert Paisolahttp://www.blogger.com/profile/00435871035547197331noreply@blogger.com0tag:blogger.com,1999:blog-6210684848441244744.post-77015338140818404402008-04-22T15:59:00.003-06:002008-04-22T16:06:50.717-06:00Money Laundering or Assistance with A Mortgage, Robert Paisola ReportsBelow is an update on the Down Payment Assistance Front. Recently HUD stated that they were going to do away with the DPA. A DPA is where a seller contributes 3% of the purchase price plus an administration fee to the DPA and the DPA will gift the buyer the down payment.<br /><br />This program works for FHA loans and that is why HUD is in the middle of it.<br /><br />A buyer's down payment can be a gift, however the gift cannot be directly from the seller. So this clever little money laundering technique has benefited many of homeowners get a 100% loan but instead of it being a sub-prime adjustable type thing or an interest only for two years and kaboom. The buyer would have a nice 30 year fixed rate with low monthly mortgage insurance.<br /><br />So here is the deal in action. Billy Buyer makes an offer on Sally Seller's home. The offer has an addendum that says that Sally will contribute 2.5% of the purchase price to pay for the buyer's closing cost. Then Billy Buyer will ask Sally Seller to contribute 3% of the purchase price + a $500 processing fee. So depending on the price of the home, the seller will contribute approximately 6% of the sales price on behalf of the buyer.<br /><br />Usually the difference is split, meaning the sales price is increased by 3%. The seller agrees to the full 6% concession. SO the buyer gets 100% loan and finances the closing cost.<br /><br />October 31, 2007<br /><br />UPDATE<br /><br />Gaithersburg, MD - United States Federal District Court Judge Paul L. Friedman today ruled in the case of AmeriDream v. Jackson that the Department of Housing and Urban Development cannot implement its regulation on downpayment assistance, which had been scheduled to go into effect today. AmeriDream, Incorporated, a 501(c)(3) charitable entity dedicated to helping low and moderate income families purchase their own homes through the provision of downpayment assistance and other services, had brought suit against HUD Secretary Alphonso Jackson challenging the regulation, which would have reversed prior HUD policies regarding downpayment assistance.<br /><br />Judge Friedman agreed with AmeriDream's position that there was a "substantial likelihood" that the regulation violated applicable law. Judge Friedman further stated that the regulation lacked a "reasoned analysis" and was based on "flimsy" support. Judge Friedman also questioned whether HUD acted appropriately in issuing the regulation in view of a published report that Secretary Jackson was committed to that course of action regardless of whatever public comments HUD would later receive. In view of those shortcomings and other considerations, Judge Friedman issued an injunction, effective immediately, preventing the regulation from taking effect.Robert Paisolahttp://www.blogger.com/profile/00435871035547197331noreply@blogger.com0tag:blogger.com,1999:blog-6210684848441244744.post-5394125483890642062008-04-22T14:22:00.001-06:002008-04-22T14:40:07.908-06:00Engenuity...Wealth Strategist? Rick Koerber? Posted By Robert PaisolaWHERE TO BEGIN......I AM SO GLAD I STUMBLED ACROSS THIS SITE. I AM NOT AN INVESTOR OF ANY OF THE COMPANIES MENTIONED HERE (THANK GOODNESS) BUT, I HAVE SEVERAL FRIENDS WHO ARE. OF EVERYTHING I'VE READ, THERE IS SELDOM ANYTHING WRITTEN ABOUT ENGENUITY, VALUE CAPITAL, RAYHAR, AND MIWI. AS I UNDERSTAND IT, ST. GEORGE ENGENUITY IS SET UP LIKE THIS.....VALUE CAPITAL (KURT VANDERSLICE, MARTY WILKINSON) AND RAYHAR (MIKE ISOM) RAISED MILLIONS OF DOLLARS FROM ACCREDITED AND NON ACCREDITED INVESTORS. AN INTERESTING FACT IS THAT ALL THREE OF MY FRIENDS WERE SIGNED UP AS ACCREDITED INVESTORS. AN ACCREDITED INVESTOR HAS A NET WORTH OF $1,000,000 OR A PERSON WITH AN ANNUAL INCOME FOR THE TWO MOST RECENT YEARS OF $200,000. WELL, NONE OF THEM MEET THAT CRITERIA. IN FACT, IF THEY PUT ALL THEIR RESOURCES TOGETHER THEY STILL WOULD NOT MEET THE CRITERIA. SO VALUE CAPITAL AND RAYHAR GIVE THEIR MONEY TO MIWI (MIKE ISOM....AGAIN). MIWI THEN LOANED THE MONEY TO GUESS WHO........? FOUNDERS CAPITAL (RICK KOERBER). THIS DOESN'T LOOK LIKE A PYRAMID SCHEME WHEN DRAWN OUT ON A PAPER DOES IT? FROM REPORTS, FOUNDERS CAPITAL STOPPED PAYING MIWI SOMETIME IN JULY OF 2007. THIS IS WHAT'S INTERESTING. FOUNDERS CAPITAL APPARENTLY OFFERED TO PAY MIWI BACK ITS INVESTMENT SOMETIME IN 2007 OR CONVERT ITS INVESTMENT INTO EQUITY IN FOUNDERS CAPITAL. GUESS WHAT...THEY CONVERTED IT TO EQUITY. SO LETS POINT OUT SOME THINGS HERE. ENGENUITY, WHICH IS (VALUE CAPITAL, RAYHAR, MIWI) IS A FINANCIAL ADVISOR. OK, WHAT FINANCIAL ADVISOR IN THEIR RIGHT MIND WOULD BUY INTO A COMPANY (FOUNDERS CAPITAL) THAT COULDN'T PAY INTEREST PAYMENTS ANYMORE. ESPECIALLY WHEN THEY WERE OFFERED TO BE PAID BACK THE FULL INVESTMENT? THAT'S ONE OF THE HUNDREDS OF QUESTIONS INVESTORS WOULD LIKE TO KNOW BUT, THERE IS NO COMMUNICATION FROM ENGENUITY TO THEIR INVESTORS ON TOUCHY SUBJECTS LIKE THIS. THE COMMUNICATION LETTERS THAT I HAVE READ BASICALLY SAY, WE CANT PAY AT THIS TIME, SORRY. WHY IS ENGENUITY SO QUIET WHEN ASKED WHEN FOUNDERS CAPITAL IS GOING TO PAY THEM BACK? PROBABLY BECAUSE THEY DON'T WANT YOU TO KNOW THAT THEY USED YOUR INVESTMENT DOLLARS TO BUY A BIG CHUNK OF FOUNDERS CAPITAL. THE THREE FRIENDS OF MINE WERE TOLD THEY WERE INVESTING IN HOMES, NOT BUYING FOUNDERS CAPITAL. THEY WERE TOLD THAT SOMEWHERE OUT THERE, THERE WAS A HOME BACKING UP THE INVESTMENT THEY MADE WITH AT LEAST 20% EQUITY IN IT. THE OWNERS OF THESE COMPANIES STILL HAVE THE FANCY CARS, TOYS, AND THEIR HOMES WHILE THE INVESTORS LOSE EVERYTHING. I WILL SAY IT LIKE I SAID TO MY THREE BUDDIES. IF YOU INVESTED WITH THESE COMPANIES YOUR MONEY IS GONE. YOU MAY SEE TOKEN PAYMENTS FROM ENGENUITY TRYING TO MAKE GOOD EITHER ON THEIR OWN OR FORCED BY THE LAW BUT, IT IS HIGHLY UNLIKELY YOU WILL SEE THE TOTALITY OF YOUR INVESTMENT AGAIN FROM THIS HOUSE OF CARDS.<br /><br />W.T. CRAIG<br />ST GEORGE UTAHRobert Paisolahttp://www.blogger.com/profile/00435871035547197331noreply@blogger.com0tag:blogger.com,1999:blog-6210684848441244744.post-85953276595069513552008-04-22T14:13:00.002-06:002008-04-22T14:18:18.604-06:00Best Cities For Bargain- With All the Real Estate Fraud- Utah is Number One, Posted by Robert PaisolaBest Cities For Bargain House-Hunters- Live from Forbes.com<br /><br /><br />Property sharks looking to take advantage of local housing slumps are doing their best to time the market, searching for the precise moment when prices bottom out before taking a bite.<br /><br />They'd be smart to look for markets where job growth is strong, foreclosures are relatively low and inventory is high. With these factors in place, buyers can still dictate terms of sale and negotiate prices, but aren't as exposed to the economic and lending risk problems that have sunk many markets around the country.<br /><br /><span style="font-weight:bold;">Good places to look? Salt Lake City and Raleigh, N.C., where there are plenty of sellers slashing prices, but not because of a lending meltdown.<br />Complete List: 10 Best Cities For Bargain House-Hunters</span><br /><br />Timing a market is tricky business, and prices alone may not be the best way to determine a bargain opportunity.<br /><br />What you need is a buyers' market, where there is healthy job growth and more houses available than people to buy them. This is not due to foreclosures and economic downturn, but to overbuilding that should balance out in time.<br /><br />Related Stories<br />America's Most Overpriced Suburbs<br /><br />America's Hardest-Hit Foreclosure Spots<br /><br />These markets "are where you have high inventories but pliable borrowers, with lenders willing to deal," says Anthony Sanders, a professor of finance at Arizona State University.<br /><br />This is what's happening in Houston. Compared to housing prices in other cities, Houston real estate has always been a bargain, which is part of why the population has expanded so much since 2000. Jobs are being added to the books at the sixth fastest rate of cities measured, and while the city has had more than a few foreclosures, especially in Harris County, it hasn't taken a huge overall hit. Based on inventory levels and construction projects in the works, buyers still have good standing to negotiate price.<br /><br />Behind The Numbers<br />Our list includes 2006-2007 data on job growth, from the Bureau of Labor statistics; foreclosure data from RealtyTrac, an online database of foreclosures gleaned from multiple listing services, bank-owned properties, bankruptcy records, loan histories, tax liens and lender information; and ZipRealty, an online firm that tracks vacancy rates through multiple listing services.<br /><br />In addition to Houston, Salt Lake City and Raleigh, what we found were soft markets such as Orlando, Fla., Charlotte, N.C., and Jacksonville, Fla., where the damage from risky lending isn't as drastic as other parts of the country, and where employment growth suggests inventory can burn off at a healthy rate.<br /><br />Who is to blame for the subprime crisis? Weigh in. Add your thoughts in the Reader Comments section below.<br /><br />Job growth matters, as it's a sign that people are moving to a city and that they're building the roots and wealth to buy a home. On this measure, we used data from the Bureau of Labor Statistics from 2006 to 2007 to calculate which markets are adding people to payrolls. The timing of the data also weeds out any places that saw their job growth explode in past years due heavily to housing or jobs that are now gone, and we excluded any city losing jobs from our list. Excess housing inventory and job loss don't pair well.<br /><br />But fast job growth coupled with a high foreclosure rate points to a more volatile market, one where economic activity might be slowing, or where prices were untenable from the very beginning.<br /><br />Kermit Baker, an economist at the Harvard University Joint Center for Housing Studies, says that the equity problems that lead to foreclosures are more often than not "the result of economic conditions in the market as a whole," or "an overheated market."<br /><br />Neither condition makes for a bargain because there's too much risk involved.<br /><br />Sellers in subprime troubled markets, for example, might be anxious to sell to save whatever equity they have. Of course, this is more or less like being handed a grenade. If you bought a house in Stockton, right now, where there's one foreclosure for every 31 households, according to RealtyTrac, it's likely that prices will continue to plummet.<br /><br />You won't be getting a bargain, you'll be buying cheap.<br /><br />Instead, a bargain buy in an overbuilt market exposes you to less risk and comes with the satisfaction of not profiting at someone else's foreclosure misery.Robert Paisolahttp://www.blogger.com/profile/00435871035547197331noreply@blogger.com0tag:blogger.com,1999:blog-6210684848441244744.post-10288147992143411432008-04-16T23:57:00.001-06:002008-04-16T23:58:36.346-06:00Shammand "Sham" Maharj and The Buena Vista Corporation Threaten Investors, Robert Paisola Reports<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj3PG9fMGiflHIOTH9kvHkLpckiDV4LY5R3-IoM-51GZjomyyPntIGrwcHdAWp2Kza7YVDkz9kBWgiXUFcKCer9tRldxJmaLm_khm0X6wuKveap059rdhNOEvtaTc0JByNpvZTNl96TQQJ3/s1600-h/IMG_9108.JPG"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj3PG9fMGiflHIOTH9kvHkLpckiDV4LY5R3-IoM-51GZjomyyPntIGrwcHdAWp2Kza7YVDkz9kBWgiXUFcKCer9tRldxJmaLm_khm0X6wuKveap059rdhNOEvtaTc0JByNpvZTNl96TQQJ3/s400/IMG_9108.JPG" border="0" alt=""id="BLOGGER_PHOTO_ID_5190088139957334834" /></a><br />Investors across the nation have been contacting our offices at Western Capital complaining of a man named Shammand "Sham" Maharj. We are told he has scammed millions of dollars from investors and this is a consumer and media site that is covering this story. He is the owner of the Buena Vista Corporation and The Orlando Sharks Soccer Team. Jail???<br /><br />That was the headline that we brought to you last October when we first began to investigate Sham Maharaj and his "Buena Vista Corporation". Since then we have heard from jundreds of victims that have been silenced or threatened by Maharaj if they speak regarding any losses that they incurred as a result of their involvement with his companies.<br /><br />We have spoken to large investment banks around the world, and have been told that the project that we were mainly interested in looking at called "Ruby Ridge: in Florida, was merely the tip of the iceberg for old Sham.<br /><br />Well, we received a call today from a Real Estate Investor who has lost a substantial amount of money to Sham Maharaj and Buena Vista Corporation and he said that he received a letter from an attorney THREATENING him.<br /><br />So, if you are a victim of Sham Maharaj and Buena Vista Corporation and have received a letter from their attorneys, or better yet, if you have been sued by their companies, we want to know immediately. Please send a copy of any demand letter that you receive to investigations@mycollector.com or fax our Los Angeles Office at 408-889-2415.<br /><br />We will keep you advised on upcoming posts. If you are a member of the media, please feel free to contact mediarelations@cretv.com <br /><br />Regards,<br /><br />Robert Paisola<br />CEO<br />The Western Capital Foundation<br />www.RobertPaisola.comRobert Paisolahttp://www.blogger.com/profile/00435871035547197331noreply@blogger.com0tag:blogger.com,1999:blog-6210684848441244744.post-40960787698741407332008-03-28T09:41:00.002-06:002008-03-28T09:44:20.774-06:00In Foreclosure, The Bank Will PAY YOU to Move Out! Posted by Robert Paisola<embed src="http://services.brightcove.com/services/viewer/federated_f8/452319854" bgcolor="#FFFFFF" flashVars="videoId=1475736003&playerId=452319854&viewerSecureGatewayURL=https://services.brightcove.com/services/amfgateway&servicesURL=http://services.brightcove.com/services&cdnURL=http://admin.brightcove.com&domain=embed&autoStart=false&" base="http://admin.brightcove.com" name="flashObj" width="486" height="412" seamlesstabbing="false" type="application/x-shockwave-flash" swLiveConnect="true" pluginspage="http://www.macromedia.com/shockwave/download/index.cgi?P1_Prod_Version=ShockwaveFlash"></embed>Robert Paisolahttp://www.blogger.com/profile/00435871035547197331noreply@blogger.com0tag:blogger.com,1999:blog-6210684848441244744.post-91237777066514963482008-03-27T23:49:00.000-06:002008-03-27T23:24:52.226-06:00Homeowners in denial, By Donald J. Trump, Posted by Robert Paisola<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhG7qR3KbUG9U9MjIreshBTwHR1ps7XF_ybuF_xMuFAFhxuMsS4k_Vl7nM1tqiddhefn6wWikyzw_xSRFI6qs3O2ZA9bZzuRTsci5mFoEBPxuc6DVzDoTbo6N9y1I74Yw3ecx6NUPHnWNEa/s1600-h/trump_home_graphic.jpg"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhG7qR3KbUG9U9MjIreshBTwHR1ps7XF_ybuF_xMuFAFhxuMsS4k_Vl7nM1tqiddhefn6wWikyzw_xSRFI6qs3O2ZA9bZzuRTsci5mFoEBPxuc6DVzDoTbo6N9y1I74Yw3ecx6NUPHnWNEa/s400/trump_home_graphic.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5182650953602013986" /></a><br />It’s obviously a really tough time right now for homeowners who are trying to sell. The housing market is in a bad place, and all over the nation home values are showing incredible declines.<br /><br />But don’t tell that to homeowners. According to a recent survey, more than three out of four homeowners still believe their own home has not lost value in the past year. More than one-third believe their home has actually increased in value.<br /><br />Many industry analysts estimate that home values declined 5% on average last year, with many parts of the country showing much steeper drops.<br /><br />So are homeowners not paying attention to news about the housing situation? Are they in denial about their home’s real value? Or are they just incredibly optimistic? <br /><br />In many cases, it doesn’t matter. The good news is that unless you have a pressing need to sell right now or you’re trying to get a home equity loan, you shouldn’t be affected by the declining values.<br /><br />We’ll eventually recover from the housing slump and you’ll see your home’s value rise again. Just sit tight and don’t panic.Robert Paisolahttp://www.blogger.com/profile/00435871035547197331noreply@blogger.com0tag:blogger.com,1999:blog-6210684848441244744.post-81255004300498480612008-03-27T23:18:00.002-06:002008-03-27T23:23:56.535-06:00INSIDE THE MORTGAGE CRISIS, From CNN, Posted By Robert Paisola<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGU7QXDxNsd4HgXD0W5glPx5oI7sDsWZpOQ-HlXfWSwKQqYtEOatyKl9XJO3AvSahidtFIqpSMdh3kmazn1zJ-kZEgh8AeRgZDyxU_CAYOjdfCQBUt0uIcrVCo-dJ21Z6RckL0lnSVRQ5q/s1600-h/busted_static_ad.jpg"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGU7QXDxNsd4HgXD0W5glPx5oI7sDsWZpOQ-HlXfWSwKQqYtEOatyKl9XJO3AvSahidtFIqpSMdh3kmazn1zJ-kZEgh8AeRgZDyxU_CAYOjdfCQBUt0uIcrVCo-dJ21Z6RckL0lnSVRQ5q/s400/busted_static_ad.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5182658637298506546" /></a><br /><strong>INSIDE THE MORTGAGE CRISIS<br />CNN teams with Fortune Managing Editor Andy Serwer to investigate how the housing boom went bust.</strong><br /><br /><strong>Homeowners: Can't pay? Just walk away<br />More and more borrowers are watching their house values sink while the cost of their loans skyrockets. What to do? Skip out on the mortgage all together.</strong>By Les <br /><br />NEW YORK (CNNMoney.com) -- Mortgage payments are set to jump. Home prices have plunged. "I'm outta here."<br /><br />Homeowners are abandoning their homes and, more importantly, their mortgages, rather than trying to keep up with rising payments on deteriorating assets. So many people are handing their keys back to lenders that a new term has been coined for it: jingle mail.<br /><br />"I stopped paying my mortgage in October, after shelling out about $70,000 in interest [over 15 months]," said one borrower, David, who doesn't want his last name used. "Now, I'm just waiting for the default notice."<br /><br />The Los Angeles-based writer bought two properties in Hancock Park, west of downtown, using no-down, interest-only mortgages in 2006. He paid just over $1 million for both.<br /><br />David had planned to sell them quickly but got caught in the slump. Soon his interest rate will jump by a few points, and his payments will go up by several hundred dollars a month for each place. He figures his properties have fallen in value by at least $60,000 each.<br /><br />Current lending practices have created an environment where a measure as extreme as abandoning a home actually makes sense to some people.<br /><br />Many buyers put little or no money down, so they don't have much invested in them. That leaves them with little incentive to keep making payments when a home's market value dips below the balance of the mortgage.<br /><br />The most serious consequence is a tremendous hit to credit scores. For some, that's better than throwing away money they'll never recover by selling their home.<br /><br />And while a mortgage default can savage a person's credit record, trying to pay off a loan they can't afford could be worse for borrowers if it leads to bankruptcy, said Craig Watts, a spokesman for the credit reporting firm Fair Isaac.<br /><br />Credit scores are hurt much more by missing multiple payments - on credit cards, cars and so on - than by a single foreclosure.<br /><br />"The time it takes to regain your credit score [after foreclosure] can be shorter than after bankruptcy," said Watts.<br /><br />It typically takes three years of a spotless payment record after a bankruptcy before credit scores recover enough for someone to think about buying a home again, he said. After abandoning a mortgage, a person may be able to buy a new house in two years or less.<br /><br />And now skipping out on a home is easier, thanks to the Mortgage Debt Relief Act of 2007. Previously, if a bank sold a foreclosed home for less than the mortgage balance and it forgave the difference, the borrower had to pay tax on that difference as if it were income. Now the IRS will ignore it.<br /><br />"That's going to help a lot of people," said Mike Gray, a San Jose accountant who runs the web site Realestatetaxletter.com.<br /><br />The trend of walking away is most pronounced among real estate investors, according to Jay Brinkman, an economist with the Mortgage Bankers Association (MBA).<br /><br />But families are doing it too. "If they have to stretch to make mortgage payments for a home that will not recover its value, then yes, they may walk away," he said.<br /><br />Often they chose hybrid adjustable rate mortgages (ARMs) that came with low initial payments. After a few years, interest rates on these loans reset higher. But buyers thought they could count on the increased value of their homes to refinance into affordable, fixed-rate loans.<br /><br />Now, that may not be possible. Take Susan (not her real name), a client of HouseBuyerNetwork.com, which specializes in arranging short sales. A short sale is when a bank agrees to accept the sale price paid for a home - even if it is less than the outstanding mortgage on it - as payment in full. An owner might sell a house with a $200,000 mortgage for $180,000, and then the bank forgives the difference.<br /><br />HouseBuyerNetwork.com CEO Duane LeGate says that Susan's two-bedroom condo in Sonoma County is worth $340,000, but the mortgage balance is $380,000. She can't refinance and it's difficult to sell.<br /><br />She's still trying for a short sale but, said LeGate, "She'll almost certainly end up walking away."<br /><br />Beyond anecdotes, some statistics indicate that hard-pressed owners are deliberately courting foreclosure. An analysis by the consumer credit rating agency Experian last spring found that many borrowers were choosing to pay off credit card and other consumer debt before making mortgage payments. They were electing to put their mortgage at risk rather than their credit cards or auto loans.<br /><br />Similarly, Richard DeKaser, chief economist for National City Corp., (NCC, Fortune 500) notes that while all credit metrics are deteriorating, mortgage delinquencies are rising disproportionately. "That makes sense if people are choosing to walk away," he said.<br /><br />And now reports are emerging of homeowners skipping out on mortgages even though they can still afford to pay them.<br /><br />Wachovia (WB, Fortune 500) CEO Ken Thompson described these people on an earnings call last month."[These are] people that have otherwise had the capacity to pay, but have basically just decided not to, because they feel like they've lost equity, value in their properties."<br /><br />Lenders are afraid that borrowers may find it's worth the hit to their credit scores, if they can drastically reduce their housing expenses. Someone with good credit and a $600,000 home in a town with cratering real estate prices could buy a similar house nearby for $450,000, and then let the other $600,000 mortgage go into foreclosure.<br /><br />The stage is set for this kind of thing particularly in California, where huge numbers of buyers used low or no-down deals to buy homes. The trend has even spawned at least one new business, San Diego-based YouWalkAway.com, which for a fee of $1,000 purports to guide clients through the process of ditching their mortgages. It launched in early January, and says it has already signed up 180 clients.<br /><br />California is a bit of a safe haven for these borrowers, since banks that repossess and then sell a foreclosed property for less than the mortgage that was owed on it cannot come after borrowers for the difference - as long as it's the initial mortgage, one that has not been refinanced. So if a borrower owes $200,000 and the bank sells the house for $170,000, the borrower comes out of it debt-free.Robert Paisolahttp://www.blogger.com/profile/00435871035547197331noreply@blogger.com0tag:blogger.com,1999:blog-6210684848441244744.post-32269400217834671552008-03-27T14:22:00.001-06:002008-03-27T14:23:49.839-06:00Westgate Resorts Timeshare, Hell On Earth, By Robert PaisolaRobert, <br />I have a timeshare with westgate and I am totally frustrated. month after month we throw money away to make our paymenys, every year our maint, increases by $100 or more, and when we want to plan a vacation nothing is available. to make matters worse, we booked a trip august 2007 for aruba. two weeks before i suffered a miscarriage. i had taken out the insurance only to be told i needed medical proof of my alleged medical condition including doctors note, hospital info. what,are they kidding me? a total disgrace. i eventually after making 15 calls got someone at westgate to cancel this and only let us use the week at another time with a one year expiration. not to mention the so called insurance that covered up to $1000 didnt cover any of the plane tix, rent a car. anything, <br />I have decided to stop making the payments and wait for my notice to quit letter. I hope this does not appear on my credit report, as they did not run mt credit from day one to see if was even able to make the payments. i also have 2 trips booked for may 2008 paid for almost one year ago. neither with westgate ( staying at sheraton). as of now it says confirmed under my account history.....will this be honored or will they try to cancel these. like i said they were paid for quite a while ago. <br />please let me know what your thoughts are on all this. <br />thanks <br />dannyRobert Paisolahttp://www.blogger.com/profile/00435871035547197331noreply@blogger.com0tag:blogger.com,1999:blog-6210684848441244744.post-19490262821249773412008-03-25T23:27:00.004-06:002008-03-25T23:34:45.555-06:0019 indicted in foreclosure fraud that reaped millions, Posted by Robert Paisola<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjGr87HiyKpeB7Xp4kcwumL1cRZApgWB4UgzqYncYLHH5jDCAejhw61Jxh7UQWeLnw06aj-f_QsVdS3qB9QkHYqTFm8rfcPtkLGkXPXxz90yQPCmukjPYCJLudnFkcqzwlk3R0_9z_y4Hdv/s1600-h/crime.jpg"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjGr87HiyKpeB7Xp4kcwumL1cRZApgWB4UgzqYncYLHH5jDCAejhw61Jxh7UQWeLnw06aj-f_QsVdS3qB9QkHYqTFm8rfcPtkLGkXPXxz90yQPCmukjPYCJLudnFkcqzwlk3R0_9z_y4Hdv/s400/crime.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5181919563621178130" /></a><br /><span style="font-weight:bold;">19 indicted in foreclosure fraud that reaped millions<br /></span><br /><br />Federal prosecutors in Sacramento announced yesterday that 19 people have been indicted in a large mortgage fraud case that preyed on people close to foreclosure and stripped homeowners in two dozen states of millions of dollars in equity.<br /><br />McGregor Scott, U.S. attorney for the Eastern District of California, unsealed the contents of two indictments that detail a conspiracy to strip 115 people of $12.6 million in equity and their homes in cases that stretch from California to New York.<br /><br />Two indictments - both citing Charles Head, 33, of La Habra, Calif., as the ringleader - allege a total of 18 counts of money laundering, mail fraud and conspiracy.<br /><br />Scott called the cases an example of "unmitigated greed" and noted that his office has charged nearly a dozen others in continuing mortgage fraud cases.<br /><br />"It is our duty to do all we can to restore faith and confidence in the marketplace by placing these thieves where they belong, which is in prison," Scott said.<br /><br />Sheila Jones of Sacramento said she lost her home and its equity after dealing with one of Head's companies more than a year ago. After she was forced to move out, looters stripped the south Sacramento home to the studs.<br /><br />She greeted news of the indictment with relief.<br /><br />"Oh, my goodness," she said. "Oh, my goodness. Well, God is good."<br /><br />Scott said that Head, the alleged ringleader, faces at least 20 years in prison if convicted. The 18 other defendants face 12 to 15 years, he said.<br /><br />The case came to an FBI agent's attention when a victim reached an FBI economic crimes agent.<br /><br />"[The agent] called Head, and based on call the agent believed there was something to this," Assistant U.S. Attorney Ellen Endrizzi said.<br /><br />Scott detailed how the alleged scheme worked, starting in January 2004 and ending in November 2006, when investigators completed search warrants and froze the companies' activities.<br /><br />The defendants reached out to people on the brink of foreclosure, offering them the chance to keep their homes and pay rent to the defendants while having their credit repaired.<br /><br />Those who agreed were presented with a hefty pile of paperwork that included blank spaces that were filled in later, giving a "straw buyer" title to their homes.<br /><br />The homeowners paid rent to one of Head's property management firms. The straw buyers paid the mortgage.<br /><br />Then, Head and the co-conspirators refinanced the homes - often with inflated appraisals - and pocketed tens of thousands of dollars in equity at a time, prosecutors said.<br /><br />After about a year passed, the victims "were left without homes, equity or repaired credit," the indictment says.<br /><br />Endrizzi said FBI and Internal Revenue Service agents were in the sad position of breaking the news to victimized homeowners that their homes were no longer theirs.<br /><br />Drew Parenti, special agent in charge of the FBI's Sacramento field office, said the defendants "duped innocent homeowners."<br /><br />"It's unbelievable," Parenti said. "This is bad - you're almost destroying someone's life."<br /><br />Prosecutors would not name the victims represented by the indictments.<br /><br />Kevin Carlin, a New Jersey attorney who has spoken with about 70 victims of Head's alleged fraud, said the scam targeted elderly and disabled people facing financial strain after job loss and illness.<br /><br />"I trust that some people will be leaping for joy today," Carlin said. "Even if they lost title to their house, Mr. Head may be required to pay for it with his liberty."<br /><br />Carlin said one of Head's former employees testified in a deposition that Head took an entire office full of workers to Hawaii.<br /><br />Endrizzi said agents seized Head's Mercedes convertible, $385,000 in cash, 50,000 shares of stock and exotic motorcycles. She said Head faces about 30 civil lawsuits filed from Hawaii to New Jersey.<br /><br />Head was arrested in Orange County, Calif., on Friday and is being held in Santa Ana. He is to be brought to Sacramento's jail this week, Scott said.<br /><br />Head, reached by e-mail in February, denied wrongdoing.<br /><br />"The FBI/IRS has made no progress on this case at all. It's been over 2 years without a single charge...," he wrote.<br /><br />Search warrant documents obtained by The Sacramento Bee listed 256 victims - more than twice those noted in the indictments - from Hawaii to Maine.<br /><br />Endrizzi said prosecutors will be preparing cases based on many of those victims' cases in other federal districts.Robert Paisolahttp://www.blogger.com/profile/00435871035547197331noreply@blogger.com0tag:blogger.com,1999:blog-6210684848441244744.post-27885957496205122462008-03-25T22:57:00.003-06:002008-03-25T23:20:19.413-06:00Stop Foreclosure On Your Home NOW! By Robert Paisola<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh5l5Jgk-vuhAIaD6J4WwhMr9jJPdiRYAu8-4hbN1lzBAWrF0kSgD9RV9uDe_muY-f5vrh71HIzDWnpvh93pRbAJCUDwVR5vST-zkAgrws9xfE52S6Qgw4LB8Foimhr2wxbEDzO0KeeL1Zl/s1600-h/Howforeclosureswork200x153.jpg"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh5l5Jgk-vuhAIaD6J4WwhMr9jJPdiRYAu8-4hbN1lzBAWrF0kSgD9RV9uDe_muY-f5vrh71HIzDWnpvh93pRbAJCUDwVR5vST-zkAgrws9xfE52S6Qgw4LB8Foimhr2wxbEDzO0KeeL1Zl/s400/Howforeclosureswork200x153.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5181915753985186562" /></a><br /><strong>What is Foreclosure?</strong><br /><strong><a href="http://WWW.WESTERNCAPITALVIP.COM">BEFORE WE GET STARTED IT IS ESSENTIAL THAT YOU FOLLOW THESE INSTRUCTIONS. WESTERN CAPITAL IS ONE OF THE NATIONS LEADING FINANCIAL WORKOUT FIRMS. WE CAN WORK WITH YOUR MORTGAGE COMPANY TO STOP THE FORECLOSURE PROCESS. THIS IS NOT EASY, BUT DUE TO THE CURRENT ECONOMIC CLIMATE, THE NATIONS BANKS DO NOT WANT YOUR HOME. IF YOU RECEIVE A NOTICE OF DEFAULT OR A LETTER FROM YOUR MORTGAGE COMPANY, WE CAN HELP YOU, BUT ONLY IF YOU SEND US A VERY DETAILED LETTER TO FORECLOSUREASSISTANCE@WESTERNCAPITALCREDIT.COM OUTLINING WHAT HAPPENED. WE HAVE A FLAT FEE OF ONE THOUSAND DOLLARS, REGARDLESS OF WHAT STAGE OF THE FORECLOSURE PROCESS YOU ARE IN. IF YOU WANT TO KNOW ALL ABOUT US, SIMPLY GO TO WWW.ROBERTPAISOLA.COM AND WWW.MYCOLLECTOR.COM AND WATCH THE VIDEOS AND THE NEWS COVERAGE. WE ARE FORMER DEBT COLLECTORS THAT HAVE DECIDED TO ASSIST YOU AGAINST THE DEBT COLLECTORS AND ATTORNEYS THAT ARE TRYING TO TAKE THE AMERICAN DREAM FROM YOU.<br />WE ARE THE BEST IN THE NATION, AND WE CAN ONLY HANDLE A LIMITED AMOUNT OF CASES, SO IF YOU ARE IN A PILE OF SHIT, AND NEED HELP, CONTACT US NOW. THE SOONER THE BETTER AND IF YOU ARE A MEMBER OF THE MEDIA, PLEASE VISIT WWW.MYCOLLECTOR.COM/MEDIA.HTML TO BOOK ROBERT PAISOLA AS A GUEST ON YOUR SHOW. THIS IS THE TIME TO STOP THE CALLS AND GET BACK TO A NORMAL LIFE. YOU CAN ALSO CALL 1-877-517-9555</a>.</strong><br /><br /><br />When homeowners fall behind on mortgage payments, a foreclosure may occur. A foreclosure is a process in which a financial institution repossesses or sells a piece of property because of a loan default. Mortgage lenders usually consider a mortgage to be in default when payments haven't been made in three months. When a mortgage loan is in default, the mortgage lender can start the foreclosure proceedings on the property.<br /><br />There are basically two types of foreclosures: judicial foreclosure and non-judicial foreclosure. About a third of the states in the nation use judicial foreclosure. This type of foreclosure involves issuing a lawsuit against the homeowner. If the homeowner does not respond to the lawsuit, the mortgage lender wins the case and the home is put up for sale in an auction. A court official presides over this auction and sells the seized house to the highest bidder. The mortgage lender also puts in a bid during the auction. This bid amount can go up to the amount owed on the home loan. If no bidder beats the mortgage lender's bid, the mortgage lender gets the title to the home. If the bidding goes higher than this bid amount, then the winning bidder is issued the deed to the house.<br /><br />A non-judicial foreclosure is a foreclosure that does not involve a lawsuit. The mortgage lender issues the homeowner a notice of default and a notice of its intent to sell the homeowner's property. The homeowner has a chance to stop the sale by paying the default amount owed or by coming to an agreement with the mortgage lender. This agreement may include setting up a repayment plan and being allowed the option of delayed payments for a specified amount of time. The homeowner can also stop foreclosure by filing for Chapter 13 bankruptcy. If the homeowner fails to stop the foreclosure, the house is auctioned off in the same manner as a judicial foreclosure.<br /><br />A foreclosure can also occur without a sale. In a strict foreclosure, the title of the house goes directly back to the mortgage lender without the need to go through an auction.<br /><br />Once the mortgage lender has the title to the house, it can sell the house through a real estate agent. Proceeds from the sale of the house would go towards paying off the default amount of the former homeowner's mortgage loan. However, if the proceeds of the sale are not enough to cover the owed amount, a deficiency judgment is issued to the former homeowner. For example, if a home sells for $80,000 and the balance on the mortgage loan was $100,000, the former homeowner is still liable for the $20,000 difference. Deficiency judgments, as well as the foreclosure itself, could do severe damage to the homeowner's credit.<br /><br />In other words, a homeowner will lose his home if it is foreclosed on by the lender.<br /><br /><strong>How do you stop foreclosure?</strong><br /><br />Our company specializes in resolutions of mortgage delinquencies or home foreclosure claims on behalf of you, the homeowner. We perform a detailed financial analysis and work with you to determine your best alternatives. We review your lenders loss mitigation policies and your state's foreclosure law to make sure that we give you the best service within the context of your situation. By working with you and your lender we can tailor a resolution to meet your specific criteria and financial circumstance. We do all of this quickly and effectively because we have been doing this for 21 years and have thousands of satisfied customers.<br /><br />How long do I have to act?<br /><br />Time is of the essence when you are behind on house payments. Time is definitely not your friend in this situation. Each day that passes makes it that much harder to get an agreement worked out with your lender that you can live with. The home foreclosure process can take anywhere from a few weeks to months, depending on your state law and the method of foreclosure your lender chooses to use. We have encountered many homeowners who did not even know that they had already lost their house!<br /><br />What is foreclosure? Common misspellings include: forecloser, forcloser,forclosure.<br /><br />Home foreclosure is a process by which a lender regains a property which they have financed. Typically, this is because the borrower or homeowner is behind on house payments and is unable to catch up, often due to circumstances outside of his or her control. When the lender forecloses on the homeowner, the homeowner must move out of the house, therefore, losing all possession of the property and jeopardizing any possible equity that the homeowner may have in the home. There is a legal time frame, which varies from state to state, which determines how long the foreclosure process can take.<br /><br /><br />Stop Foreclosure with Loss Mitigation Programs<br /><br />Loss mitigation programs were established by the federal government and the mortgage industry in order to stop home foreclosures. They help foreclosure victims in default on their mortgages to find alternatives to home foreclosure. Every homeowner's situation is unique and each lender has their own policies regarding the use of these programs to stop foreclosure. Our extensive experience and solid working relationships with mortgage lenders allows us help you avoid the common pitfalls that many homeowners encounter while trying to work things out directly with their lender. After performing a thorough assessment of your personal finances and analyzing your lender's loss mitigation policies our professional loss mitigators will negotiate with your lender to get you the best possible solution to your home foreclosure problem. We can help you save your home and credit history through a variety of loss mitigation options:<br /><br />REPAYMENT PLAN<br /><br />If you have incurred a short term financial hardship and your loan is two or more months past due, your loss mitigation specialist will also consider submitting a request for a payment plan to your lender for approval. Only after reviewing your financial situation will this option be considered. All clients must be able to show that they can afford this plan in order to be eligible. <br /><br />SPECIAL FORBEARANCE<br />(FHA loans only)(Type I and II)<br /><br />If you have incurred a short term financial hardship and your loan is 90 days to 365 days past due, the loss mitigation specialist will also consider submitting a request for a special forbearance. A special forbearance is designed to provide you with more relief than is possible with a regular repayment plan. Typical approval can result in spreading the repayment over 12 to 18 months. Type II - can be utilized in an unemployment situation whereby the promise of future employment is present. We have done VA loans that resulted 27-month repayment plans. <br /><br />LOAN MODIFICATION<br /><br />If you have incurred a long term financial hardship, our office can assist you in supplying the appropriate information to lender to take the appropriate measures to modify the term(s) of your mortgage. This could lower the interest rate and/or extend the term of the loan resulting in lower payments. There are costs and fees associated with a modification that you will be responsible for. All property taxes must be current or you must be participating in an approved payment plan with your taxing authority to be eligible for a modification. Any additional liens or mortgagees must agree to be subordinate to the first mortgage. All requests are subject to your lender's approval. <br /><br />VA LOAN MODIFICATION/REFUNDING<br /><br />A refunding is when the VA buys your loan from the lender. Refunding may give VA the flexibility to consider options to help you save your home that your current lender either could not or would not consider. When the VA refunds a loan under 38 U.S.C. 36.4318, the delinquency is added to the principal balance and the loan is re-amortized. Your new loan will be non-transferable without prior approval from the Secretary. If your interest rate was lowered and an assumption is approved, the interest rate will be adjusted back to the previous rate <br /><br />PARTIAL CLAIM<br />(FHA mortgages only) (Some Freddie Mac Investor loans)<br /><br />The loss mitigation specialist may assist in requesting a partial claim if you qualify. You may be eligible if your loan is 120 to 365 days past due. A partial claim results in placing your past due payments into a subordinate mortgage (2nd mortgage) between you and the Secretary of Housing Urban Development. The partial claim note will require you to start making payments when you pay off the first mortgage. There is no interest. The partial claim can be for no more than 12 months of past due payments. <br /><br /><br />Stop Foreclosure | Stop Home Foreclosure | Stop Bank Foreclosure | Stop House Foreclosure | Stop Hud Foreclosure | Stop Government Foreclosure<br />Stop Preforeclosure | Foreclosure Help | Avoiding Foreclosure | Avoid Foreclosure | Stop Foreclosure Services | Foreclosure Stopping | Stop Mortgage Foreclosure Stop Bank Foreclosure Of Home | Stop Home Foreclosure Second Mortgage | Stop Foreclosure Free Estimate | Stop Loan Foreclosure<br />Stop Government Home Foreclosure | Stop Foreclosure Information | Stop Foreclosure Now | Stop Chase Bank Foreclosure | Stop HUD Home Foreclosure<br />Stop Government House Foreclosure | Stop FHA Foreclosure | Foreclosure Prevention | Stop Foreclosure Fast | Stop Foreclosure TodayRobert Paisolahttp://www.blogger.com/profile/00435871035547197331noreply@blogger.com1tag:blogger.com,1999:blog-6210684848441244744.post-77298454670679305922008-03-25T21:59:00.003-06:002008-03-25T22:09:12.894-06:00Live from First Business Morning News, Mortgage Brokers Gone Wild, Posted by Robert Paisola<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg526nARP1dbZWtPFIaVuHGdh4K9QcN3CSZ9vJSBiOgLpk-pYZSBvWoL20mDUU2Zw47NflNwcIfxCR6Tfn_5OEAjH7KBFVniPkTG13AkKqwmIpPL4v08Gvfc_E2ThgoUBq-oBAfqecsrtee/s1600-h/banner.gif"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg526nARP1dbZWtPFIaVuHGdh4K9QcN3CSZ9vJSBiOgLpk-pYZSBvWoL20mDUU2Zw47NflNwcIfxCR6Tfn_5OEAjH7KBFVniPkTG13AkKqwmIpPL4v08Gvfc_E2ThgoUBq-oBAfqecsrtee/s400/banner.gif" border="0" alt=""id="BLOGGER_PHOTO_ID_5181896697215294194" /></a><br /><br /><br /><span style="font-weight:bold;">"Refi-Bust: Mortgage Brokers Gone Wild" ex-mortgage broker David Lawrence Mortgage Fraud, investigations, David Lawrence, First Business Morning News</span><br /><br /><embed style="width:400px; height:326px;" id="VideoPlayback" type="application/x-shockwave-flash" src="http://video.google.com/googleplayer.swf?docId=-2890209804771113874&hl=en" flashvars=""> </embed><br /><br />http://link.brightcove.com/services/link/bcpid464121043/bclid1243715034/bctid1467274188<br /><br /><embed style="width:400px; height:326px;" id="VideoPlayback" type="application/x-shockwave-flash" src="http://video.google.com/googleplayer.swf?docId=2012221378428764078&hl=en" flashvars=""> </embed>Robert Paisolahttp://www.blogger.com/profile/00435871035547197331noreply@blogger.com0