WaMu Files Suit Accusing Indiana Man In Straw Buyer Scam; Lender Claims It Was Duped Out Of Million$

In Fort Wayne, Indiana, The Journal Gazette reports:

• A large national bank has sued a local man, alleging he is at the center of a large mortgage fraud scheme that has led to a number of abandoned homes throughout Fort Wayne. Washington Mutual Bank and its subsidiary, Long Beach Mortgage Co., filed suit in Allen Circuit Court [last month] accusing Jeffrey L. Radabaugh of spearheading the complicated scheme, which the bank said cost it millions of dollars.

• According to court documents, Radabaugh and other “real estate insiders” deceived Washington Mutual into making millions of dollars in under-secured loans, submitting more than 100 fraudulent mortgage loan applications based on falsified appraisals indicating the properties were worth far more than the market value.

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• Eventually, the purchasers of the property stopped making mortgage payments to Washington Mutual and most, if not all, the loans are now in default, with the property worth far less than the amount of the loan, according to court documents.

For more, see Local man accused in loan scheme.

For an earlier post related to this alleged scheme, see Indiana AG Sues Investor For "Flipping Options" Without A Real Estate License.