Timeshares re sellers may do time.

October 24, 2011

Just last week in the Sun Sentinel, Miami, I read that in a company named Mega Media, employees were being charged by the U.S. Attorney with criminal charges of wire fraud. The company was in practice of re-sales of timeshares. Some of the allegations are that the employee’s of this company were claiming they had buyers lined up to purchase timeshare units that were for sale and in fact, did not.

The sellers of timeshares were told the closing dates had changed multiple times; the tactics according to the U.S. Attorney was to delay processes so that the sellers could not claim refunds of the monies they paid for the sales services. These Federal charges are serious and if each person involved is convicted they may be facing up to five years of prison time and fines of up to $25,000.00 each.

The Federal Trade Commission has also filed suit against the company with the implications that the company was fraudulently operating in the procedure of timeshare sales. In this economy no one can afford to be defrauded, yet we have brokers who commit securities fraud and lose investors’ assets every day. Miami Beach, Fort Lauderdale and Palm Beach are prime locations for vacationers and many use the timeshares as a great investment, but you need to watch your investment and know who you are dealing with. Broker misconduct and mortgage backed securities are one of the many ways you can get scammed into thinking you own something and later find out you have lost it all.

THE “MILKING EFFECT”

October 21, 2011

Many American’s are struggling to keep their homes; in Hollywood, Pembroke Pines and Fort Lauderdale, others have lost jobs and can’t find work. Are people going to be able to spend less if they have nothing to spend? Are the banks ready to lend to jobless people, as they increase fees for withdrawals and various banking transactions? I was taught at an early age that 1+1=2 but 0+0 equals nothing because there is no value in zero.

Now that the Mortgage Industry has somewhat stabilized, so we are led to believe, our financial industry should build-up, right? Are the spending dollars available? Or is it just a dream we wish to pursue in some distant future? As we look into the financial and securities industry we see fraud and mismanagement everywhere. The number of homes across the country that received initial default notices, (which is the first step in the foreclosure process), according to the foreclosure listing firm RealtyTrac, jumped 33 percent in August from July. This average includes cities such as; Hollywood, Margate, Pompano Beach and Coral Springs. Is there any way fix the mistake? Banks, mortgage companies or investment brokers made and to find out if they falsified documents that caused the holes in our economy.

So the “milking effect” has begun…we have less to spend, and yet we are milking from the working, the productive, and the wealthy. Our economic “leaders” expect to replace revenue by “milking”, for what others no longer contribute into our economy. For most people this makes no sense. There are people with no jobs, or struggling to live in homes of their own. People in general need to be employed and productive, in order to earn an income and contribute, not incur more debt and fees making the already bad economy, worst. How are we are going to grow our economy if we use every bit of “parked” wealth and “parked” money to mend it? Can we continue to exhaust our investments to this cycle of loss? Who protects the investments? Is there any hope for the Financial Investors and Securities? “No use crying over spilled milk.” But with these hard times, also come people who exploit investors and commit fraud using investment firms. We can only try to do the best with what we have and hope for growth of the economy in our time.

Is Bank of America Hiding Foreclosure Information?

March 24, 2011

Currently in news e-mails were released that were allegedly provided by a former employee of Balboa for Bank of America, claiming to have records showing to what extent a division of the bank sought to conceal information about foreclosures. These new findings may iniciate a mortgage fraud investigation by the authorities.

The former Balboa employee, revealed the emails from the company who deals in force-placed insurance coverage on mortgages, working closely with Countrywide Financial and as such, Bank of America, who bought Countrywide a few years ago.

A Bank of America spokesman reported to Reuters that the documents had been stolen by the former Balboa employee, and were not tied to foreclosures. “We are confident that his extravagant assertions are untrue,” the spokesman said.

The e-mails between employees at Balboa depicted a few concerns that raised eyebrows and questions:

“The following GMAC DTN’s need to have the images removed from Tracksource/Rembrandt,” wrote an operations team manager at Balboa. DTN refers to document tracking number, and Tracksource/Rembrandt is an insurance tracking system. The response he received was: “I have spoken to my developer and she stated that we cannot remove the DTNs from Rembrandt, but she can remove the loan numbers, so the documents will not show as matched to those loans.”According to the e-mails, approval was agreed to remove the loan numbers from the documents.

This is a very serious allegation being that many people in Miami, Fort Lauderdale and Palm Beach are getting mailings regarding the obligation to pay a force-placed insurance applied in error or for some reason unexplained when they have paid an insurance bill separate from the mortgage for years. Many people have contacted mortgage fraud attorneys because of the recently released information from mortgage companies, in the past few months an increasing number of people being foreclosed upon have encountered a force-placed insurance applied to their loans. It is possible the general public is being taken advantage of in some way according to some of the comments about the information.