Predatory loan fraud?

On Apr 23, 7:15 am, JoniA2 <strickfad...@comcast.net> wrote:
> Flagstar predatory loan plus inflated appraisal. full doc app -2004
> tax return $66,000. However, application says hubby makes $14000 per
> month-FRAUD. 2005 house appraisal 1 million, Sept 2006-$475,000 less
> today.  Hubby NOW bankrupt, filed for divorce - properties surrendered
> or in foreclosure! HELP!

First, you need to be clear what is it you are trying to accomplish.  Get out from under debt?  Save the house?  Get money from your ex because he screwed up?   Do a kind favor for the mortgage lender?   I assume in all of this you had no part except as a resident of the house, and you feel you are an innocent victim.   But what, really, have you lost?  If hubby's bad real estate investment went awry, that's his fault, not the lender's.  If he overstated his income to qualify for the loan, that's him defrauding the bank, not the other way around, even if the bank should have known better but "winked" at the fraud to close the deal.  Get your facts straight.

> I am on the deed and mortgage but NOT the NOTES ...1st or 2nd

I would say, that's probably a GOOD thing.  That means you're probably not liable for the ex-husband's debt.

> Need lawyer to fight Flagstar....

I'm at a loss to see what claim you have, but maybe that's just me.  By all means ask around and see if you can find a lawyer in your area who believes you may have a case-- don't take my word for it.

You are a spouse who was given a gratuitous joint interest in a house your husband bought at an inflated price during a "real estate bubble" by overstating his income to the lender.   The house is now worth less, but not worthless.   If you want to keep it, you will have to continue paying the mortgage on it.  As it is, even if the lender forecloses, they will only get a fraction of the money they loaned to your ex to purchase it.   If you chose to keep up the payments, you would be making payments on a loan of a million dollars to keep a house worth less than half that.   It doesn't make economic sense to me that you would want to do that.

Since you are not on the note -- and most residential mortgages these days are "non-recourse" loans anyway, meaning the lender can only look to the collateral in the event of foreclosure and cannot sue the debtor for a deficiency balance if the collateral is worth less than the loan -- you are already free to simply walk away from the deal and start over with no baggage.   That would be my suggestion, as to both the house and the hubby if I understand your facts right.   Good luck,

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Mike Jacobs
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