Welcome to The Home Equity Theft Reporter, a blog dedicated to informing the consumer public and the legal profession about Home Equity Theft issues. This blog will consist of information describing the various forms of Home Equity Theft and links to news reports & other informational sources from throughout the country about the victims of Home Equity Theft and what government authorities and others are doing about it.
Saturday, January 02, 2016
Failure To Disclose: Broker Who Allegedly Used Land Contract To Unload Property On Unwitting Buyer w/out Disclosing Existing Lien Faces State Real Estate Commission Disciplinary Action
In Muncie, Indiana, The Star Press reports:
A Henry County real estate broker is facing disciplinary action for allegedly withholding mortgage information from a buyer.
Three years ago, Murl Holstein of Springport sold a 1,400-square-feet apartment house/retail space, built at 2614 S. Madison St. in 1920, to Rhonda Mayse.
She planned to buy the structure, next door to La Hacienda restaurant, on contract for $45,000, with $2,500 down and monthly payments of $500 until Nov. 8, 2022, according to a complaint filed by the Indiana attorney general's office.
In 2007, Holstein had executed a promissory note for $100,000 and secured the debt with a mortgage on 2614 S. Madison, records show. He had promised Mutual Bank to repay the commercial loan by March 30, 2012.
Holstein is accused of failing to notify Mayse that on Nov. 9, 2012 — one day after she made a partial down payment of $2,000 — he had renewed the commercial loan with the bank and continued to secure the debt with a mortgage on 2614 S. Madison. In December of 2012, Mayse paid Holstein another $1,500.
On Sept. 30, 2013, Holstein filed for Chapter 13 bankruptcy, and three months later he surrendered 2614 S. Madison to the bank, which had filed a foreclosure action in court.
According to the complaint, Indiana law required Holstein to provide Mayse written disclosure of the mortgage placed on the property by the promissory note.
The complaint alleges that Holstein has become unfit to practice due to professional incompetence and asks the Indiana Real Estate Commission to impose appropriate disciplinary sanctions. Holstein couldn't be reached for comment. Phone numbers for his real estate office have been disconnected.
CBC News: Betrayal of Trust (A CBC investigation reveals how lawyers across Canada have misappropriated and mishandled clients money, to the tune of tens of millions of dollars, or sometimes even charging vulnerable people top dollar for shoddy services)
Land Contract/Contract For Deed/Rent-To-Own Rackets
The New York Times: The Housing Trap (In the wake of the housing crisis, low-income families have turned to seller financing to buy homes but these deals can be a money trap)
Beware The Fine Print: Consumers Forced To Sign Away Their Rights To Use Court System
The NY Times: Arbitration Everywhere, Stacking the Deck of Justice(Part 1 in series examining how clauses buried in tens of millions of contracts have deprived Americans of one of their most fundamental constitutional rights: their day in court)
Foreclosure Mills' Abysmal Record In Complying With New NYS Foreclosure Requirements
Justice Deceived: How Large Foreclosure Firms Subvert State Regulations Protecting Homeowners
MFY Legal Services Report On Questionable Practices By Process Servers In Debt Collection Cases
Justice Disserved: A Preliminary Analysis of the Exceptionally
Low Appearance Rate by Defendants in Lawsuits Filed in the Civil Court of the City of New York
Mortgage Mess Redux: Robo-Signers Return (A Reuters investigation finds that many banks are still employing the controversial foreclosure practices that sparked a major outcry last year)
CNN Video: As Foreclosures Mount, Florida Court Turns To 'Rocket Docket'
The Wall Street Journal: A Florida Court's 'Rocket Docket' Blasts Through Foreclosure Cases (2 Questions, 15 Seconds, 45 Days to Get Out; 'What's to Talk About?' Says a Judge)
"Produce The Note" Strategy When Dealing With Missing Promissory Notes In Foreclosure Actions
ABC Video: Fighting Against Foreclosure (Some homeowners have found a new tactic to keep the banks at bay)
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