The Home Loan Center
Ripoff fraud business Part of a scam called property flipping
- 08-10-2003
- 9
The Home Loan Center has taken part of a scam called property flipping and they will be prosecuted as I have contacted the State of Michigan and the FBI who is very interested in these practices.
A little over one year ago I met an investor, David Hawthorne, who sold me two investment properties, and with the help of The Home Loan Center, who acted as the mortgage broker, my loans were approved.
The Home Loan Center did many things illegally, but the most criminal was them obtaining fraudulent appraisals. Although licensed by the State of Michigan, Elizibeth Livingston, grossly exaggerated the market value of the properties. One house worth $20K was appraised at $70K and the other worth also about $20K was appraised at $55K.
The Home Loan Center then obtained loans from New Century Mortgage and First Franklin, each at a high interest rate. The out of state lenders, having no knowledge of the Detroit neighborhoods have now become victims as well having shelled out tens of thousands of dollars for properties worth less than half the loans.
I quickly realized I had been taken when both homes began to fall apart. I stopped making payments about 6 months later and began to research the illegal practice of property flipping. As it turns out, the properties were purchased by Mr. Hawthorne for $20K each only a few months prior to my purchases. I know this because I ran a deed search on both properties. No repairs were made and I was suckered into buying the properties. They took advantage of me being a first time home owner.
Although David Hawthorne is probably the biggest crook and made off with the most money, The Home Loan Center certainly played a major part in the scam.
How is it that someone who makes $35K per year could be approved for two home loans worth $110K? Why is it that although I never put any money down it shows so on both settlement statements? Why did the HLC used two lenders and want simultaneous closings? Why was it insurance was not obtained although it is required prior to closing? It's because the HLC are crooks, that's why!
Company: The Home Loan Center
Country: USA
State: Michigan
City: Southfield
Address: 29777 Telegraph, Suite 3550
Phone: 8005925455