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Century Mortgage Fraud

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Randy Beigh

Thread Starter
Senior Member
Joined
Jan 16, 2002
http://www.spokesmanreview.com/news-story....902&ID=s1207594

This is a story about a Spokane company called Century Mortgage. They came into existence about 1995. It wasn't long before I figured out they were fraudulent. Hell, I even figured out the name. It meant they weren't going to be around for the next century. :)

It took 7 years to get them, their agent, and their dippy appraiser. No jail time for the agent or the appraiser. :x It is figured that over 600 of the REO's, in this city, are directly attributable to this scam.

Of course, I should be thankful to John Hanson, appraiser. Thanks to him, as much as, 15% of some months of this business were REO's. Over the past couple of years, it has averaged about 7%.

One cannot legislate ethics or morals and hopefully, most of the trainees that this guy trained either left the field or are re-learning under someone else.
 

wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
Randy,

Thanks for posting this I'm going to send it to an underwriter that I know. They do lots of loans in the Spokane area. She will be very intersted. Please keep me updated on this if you would I have a cousin that lives in the spokane area.

Ryan
Tacoma, WA
 

David Mullen

Junior Member
Joined
Jan 17, 2002
I hope that every one of the REO buyers that lost their homes names the appraiser in a lawsuit because of their financial losses and damaged credit.
 

Soar Ohio

Sophomore Member
Joined
May 8, 2002
Professional Status
Certified Residential Appraiser
State
Ohio
Dave,
Why should these people file a lawsuit? They lost no money cause they had no down payments. It did not hurt their credit cause they had bad credit to start with. They just figured out a way to live rent free for a year or more. The way I figure it, they made $6000 to $10000 from these tranactions. The only victims in this scam are the investors.

Tom
 

Randy Beigh

Thread Starter
Senior Member
Joined
Jan 16, 2002
Tom

There is another thread somewhere in this forum that pretty much agrees with you. A homeowner wrote in to ask questions about the fraud that he/she felt had taken place.

While I understand your position, I, respectfully, disagree. Buying a home has been sold to Americans as, almost, a right. Part of the American dream and all that stuff. These people were low income and generally with poor credit as you noted, but Century sold them that, too, could be part of the American dream. They failed to mention the American nightmare.
 

Larry Lyke

Senior Member
Joined
Feb 2, 2002
Tom T --

Even though the homeowner may be in part part of the "scheme," she can plead unsophisticated and therefore abused. And by virtue of this transaction her credit rating can be updated to having been damaged as a result of the transaction, even her previous credit rating may not have qualified her for such a home purchase.

Then, it's even possible to turn a few like cases into a class action suit which'll get them more favorable treatment by being a "group" of people taken advantage of by these shysters.
 

Oregon Doug

Senior Member
Joined
Jan 15, 2002
Professional Status
General Public
State
Oregon

The only victims in this scam are the investors.

Tom - I do an awful lot of foreclosure appraisal - as much as half my business and I see a lot of the homes before they are cleaned and sanitized for re-sale. The one thing that always gets to me - beyond the garbage, trash and damage - is the children's clothes and toys littered throughout the houses.

Don't tell me that the only victims are the investors!

I been there & seen it!

Oregon Doug
 

Julia Young

Sophomore Member
Joined
Feb 23, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
Why is the appraiser always the fall guy, considered to be dishonest in a foreclosure fallout? Perhaps a little naive and I went in with blinders thinking honest market appraisals would suffice without too much concern about what others may or may not do behind the scenes as long as I was straight about my own part of the work. Recently did appraisal work for a broker who I eventually came to believe was inventing bogus buyers and contracts on sales of foreclosures. She became price pushy on an appraisal so I researched and found the house listed for less than the contract I received. Since appraisals are used to cover everything from getting rid of MIP to returning down payment and closing to the seller and having bought and resold houses myself, I cannot say because a house transferred previously at $50,000 that it is not today worth $75,000, if condition and market at the time of appraisal honestly supports the value. Who knows why a house was sold for 50,000 originally. Perhaps it was a family or forced sale, ignorant or out of town seller, or a run down foreclosure legitimately upgraded. It isn't automatically a bogus flip.
One day this particular mortgage broker gave me a rubber check for one of the appraisals and then refused to make it good. Trying to close on the deal, her lender called and said she would pay my invoice if I e-mailed the appraisal to them so they could close. After weeks of not receiving payment, I called the lender who told me the buyer had made false statements on his application and they had refused the loan, therefore, weren't liable for my fee even though they had received the appraisal. It was then I began to wonder if the buyer was real. The lender said, the mortgage broker seemed to be such a nice lady, and she believed the borrower was taking advantage of the broker, lying to her. Ha, well, it appears the mortgage broker duped us both. It was then I realized this broker would say or blame anyone handy, if caught in a lie. The lender backed out of the deal and I felt used too but still don't know what really happened. I read of appraisers getting blamed and no doubt there are some dishonest appraisers but others may get caught in a scam without knowing anything other than that vague feeling something isn't quite right with no evidence or information to pursue the matter. Like a sitting duck.
 

Caterina Platt

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
New Mexico
Ditto Doug!

These scums had enough energy and time to grab all their stuff that was worth anything, but they leave the kids items. Just another sign that they don't give a rat's backside about them or their welfare. 90% of the time, the places are littered with liquor bottles and scraps of paraphanilia, seeds,.....

These 'parents' (use that term loosely) are in or about my generation. I must admit, many of my generation really seem to be losers. It scares the devil out of me what these kids are going to be like as adults!

I do have to admit, I was pleasantly surprised recently. A friend of a friend found their way into a MH dealership about a year ago. Found a lot (reasonably priced), poor credit, dealer needed the value of $zzz to appear to have 20% equity. They request me to appraise the deal. I blow the whistle and point out that there is a similar existing offering right next door for $50,000 less. Course with their poor credit and no down, no can do. They are still renting. I ran into them at our mutual friend's party recently and was expecting the cold shoulder. They actually thanked me for saving them so much money. My respect for them jumped about 1000%. They aren't spring chickens, I really would have thought they knew what they were trying to pull off. Evidently not!

I do have to agree though, I'm sure many of these homeowners know what's what and realize they are taking part in a scam.
 

Soar Ohio

Sophomore Member
Joined
May 8, 2002
Professional Status
Certified Residential Appraiser
State
Ohio
Sorry, I'm sure that there are a few true victims that got taken by this scam. However, I think that most of the people knew what they were doing. I just get tired of hearing these "credit criminals" telling me how nothing is ever their fault. These people won't pay their bills but always seem to have enough money for smokes and booze. As far as the kids are concerned, they are victims regardless of were the parents choose to live.

I still think that most of these people are not stupid. They have figured out a way to live without paying most of their bills. I must be the stupid one because I pay all my bills every month.

I'm not defending the mortgage broker or the appraiser, just trying to point out that most "victims" are willing partners in the crime and that they are not as stupid as they seem. Please don't tell "credit criminals" to sue. They did not loose their own money, they lost the investors money and I don't think they should be rewarded for doing so.

Tom
 
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