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Fraud Victim

Discuss the legalities of Bankruptcy Law

Fraud Victim

Postby wendlesora » Thu Dec 08, 2016 9:57 am

I have been a victim of fraud twice over the same issue.  First, I was a victim of mortgage fraud.  To make a long story short, my loan officer adjusted my numbers on my loan application, and in turn, I received a larger loan in which he ended up running off with and left me with the bill after I purchased the home.  Since then, I have not been able to make payments and have been trying to sell as a short sale for the past 3 yrs.  I had a buyer in 2008, who put a $38,000 down payment but backed out because the bank was taking too long to approve the sale.  My lawyer(who my real estate agent had used for closings in the past and recommended him to me as well) stole the buyer's down payment and is nowhere to be found!  After reporting this, it's clear he will not get his money back from the laywer so he is coming after me.  He has now put a hold on my checking account for $93,000+ so I have no access to any money.  I don't even have cash to buy myself a sandwich.  I've been trying to do the right thing from the start, but at this point I have no other choice but to file bankruptcy.  Will filing bankruptcy eliminate all of this??  I honestly don't know what else to do, I can't even eat at this point.

ANSWER: I'm not sure how this clown can put a "hold" on YOUR bank account for any purpose without a money judgment against you.  How did that happen?  Does your state bar assn have a fraud recovery fund for defrauded clients of lawyers?  The buyer should explore that if so.  Many states do.

As you have not defrauded anyone Chapter 7 would wipe all this out.  You should of course change banks while you're looking at getting your money un frozen.

I need to know more about that freezing process.  If there is a judgment against you, what were you sued for?

Please send a follow up question with a tad more detail.  I may revise this answer based on the additional facts.

LEE HORNER

GOLDSTEIN, HORNER & HORNER, ATTORNEYS

TUCSON, AZ

www.freshstartAZ.info

---------- FOLLOW-UP ----------

Hi Mr. Horner, thank you for your response.  Unfortunately as the seller, he does have a judgement against both me and the "attorney".  The problem is, I later found out after I reported everything to the District Attorney, the guy isn't even a real attorney so there is no fraud recovery available.  I can't take much more of this abuse.  My nearly perfect credit has been completely ruined by these terrible people.  I have done nothing wrong and am getting no help because the DA's office(as well as the FBI) is flooded with cases like this.  I am on my own when it comes to salvaging what I have left of my money, and I have no other choice but to file bankruptcy.  I just want to make sure that I can clear everything and start fresh so I will be able to sleep at night.  I've been dealing with this the past 3 years of my life and it just progressively keeps getting worse.  Is there any sort or protection available for fraud victims to this degree?

ANSWER: OK, that makes sense.  Now this law suit against you, did the buyer allege "fraud" on your part?  Since you didn't steal his money I don't see how he could do so.  The "attorney" would have been a neutral third party stake holder responsible to both of you.  What does this realtor say, by the way;  the one that said use this clown?  

Since I don't know what your suit was about(i.e. was it just breach of contract, specific performance demand or fraud) here's what I think:

a) if it was just breach of contract or demand for specific performance, you can file Chapter 7 and wipe the judgment right out.  Also if any money has been garnished(sent to him) in the 90 days before bankruptcy, that has to be paid back, by him, to your bankuptcy estate, or direct to you if the trustee abandons it;  if there was no fraud, I'd file chapter 7 as this is a significant judgment that will follow you for years to come otherwise.

b) if it was based on fraud I need to give you some additional thoughts privately.

If that's the case, please email me at [email protected] with what the fraud allegations etc were in the complaint and we'll advise on that in a private forum.  Please put "all experts follow up" in the subject line

Good luck,

Lee Horner

GOLDSTEIN, HORNER & HORNER, ATTORNEYS

TUCSON, AZ

WWW.freshstartAZ.info

---------- FOLLOW-UP ----------

The suit is not based on fraud.  I have mixed feelings regarding my realtor, but I know he lost a lot of money as well because he didn't get his commissions from other closings right around the time this happened to me.  He reported him to the DA's Office as well.  This guy has stolen money from numerous people and I'm not understanding why nothing is being done about it.  Not to mention the whole reason I'm in this mess is because of fraud to begin with!  Since I wasn't able to pay the mortgage because of the fraud initially, the bank has sold the smaller loan(split 80/20) to a collection agency.  So not only am I dealing with what is happening with this guy posing as a lawyer, but I'm also dealing with the mortgage fraud issues.  I've been contemplating filing chapter 7 for a while now, but now I feel like I have no other choice.  I have fought long and hard, and have noticed through these past three years that if you're not someone with connections and money, you get nowhere.  My heart goes out to people who are going through similar situations as my own.  Especially people with families to take care of and have lost everything.  I am embarrassed to live in a country where the cause of a global economic downturn is based purely on GREED.

I thank you for all of your helpful information.
wendlesora
 
Posts: 49
Joined: Fri Apr 01, 2011 9:54 pm

Fraud Victim

Postby Shai » Sun Dec 11, 2016 1:12 am

It's good that the suit against you isn't based on fraud.  It should be dischargeable in a Chapter 7.

You have discovered one of the unfortunate facts of legal life---white collar crime is treated as "no big deal" by the enforcement authorities for the most part and goes unprosecuted more often than not.  

As for your case, by all means do a Chapter 7 and get a fresh start.  Make sure you list in your schedules as "all other personal property" the last item if you can't figure out a better place earlier "cause of action against for embezzlig real estate escrow proceeds and for indemnity for suit against me by
Shai
 
Posts: 46
Joined: Tue Jan 07, 2014 8:41 pm

Fraud Victim

Postby Burg » Mon Dec 12, 2016 6:03 pm

I have been a victim of fraud twice over the same issue.  First, I was a victim of mortgage fraud.  To make a long story short, my loan officer adjusted my numbers on my loan application, and in turn, I received a larger loan in which he ended up running off with and left me with the bill after I purchased the home.  Since then, I have not been able to make payments and have been trying to sell as a short sale for the past 3 yrs.  I had a buyer in 2008, who put a $38,000 down payment but backed out because the bank was taking too long to approve the sale.  My lawyer(who my real estate agent had used for closings in the past and recommended him to me as well) stole the buyer's down payment and is nowhere to be found!  After reporting this, it's clear he will not get his money back from the laywer so he is coming after me.  He has now put a hold on my checking account for $93,000+ so I have no access to any money.  I don't even have cash to buy myself a sandwich.  I've been trying to do the right thing from the start, but at this point I have no other choice but to file bankruptcy.  Will filing bankruptcy eliminate all of this??  I honestly don't know what else to do, I can't even eat at this point.

ANSWER: I'm not sure how this clown can put a "hold" on YOUR bank account for any purpose without a money judgment against you.  How did that happen?  Does your state bar assn have a fraud recovery fund for defrauded clients of lawyers?  The buyer should explore that if so.  Many states do.

As you have not defrauded anyone Chapter 7 would wipe all this out.  You should of course change banks while you're looking at getting your money un frozen.

I need to know more about that freezing process.  If there is a judgment against you, what were you sued for?

Please send a follow up question with a tad more detail.  I may revise this answer based on the additional facts.

LEE HORNER

GOLDSTEIN, HORNER & HORNER, ATTORNEYS

TUCSON, AZ

www.freshstartAZ.info

---------- FOLLOW-UP ----------

Hi Mr. Horner, thank you for your response.  Unfortunately as the seller, he does have a judgement against both me and the "attorney".  The problem is, I later found out after I reported everything to the District Attorney, the guy isn't even a real attorney so there is no fraud recovery available.  I can't take much more of this abuse.  My nearly perfect credit has been completely ruined by these terrible people.  I have done nothing wrong and am getting no help because the DA's office(as well as the FBI) is flooded with cases like this.  I am on my own when it comes to salvaging what I have left of my money, and I have no other choice but to file bankruptcy.  I just want to make sure that I can clear everything and start fresh so I will be able to sleep at night.  I've been dealing with this the past 3 years of my life and it just progressively keeps getting worse.  Is there any sort or protection available for fraud victims to this degree?

ANSWER: OK, that makes sense.  Now this law suit against you, did the buyer allege "fraud" on your part?  Since you didn't steal his money I don't see how he could do so.  The "attorney" would have been a neutral third party stake holder responsible to both of you.  What does this realtor say, by the way;  the one that said use this clown?  

Since I don't know what your suit was about(i.e. was it just breach of contract, specific performance demand or fraud) here's what I think:

a) if it was just breach of contract or demand for specific performance, you can file Chapter 7 and wipe the judgment right out.  Also if any money has been garnished(sent to him) in the 90 days before bankruptcy, that has to be paid back, by him, to your bankuptcy estate, or direct to you if the trustee abandons it;  if there was no fraud, I'd file chapter 7 as this is a significant judgment that will follow you for years to come otherwise.

b) if it was based on fraud I need to give you some additional thoughts privately.

If that's the case, please email me at [email protected] with what the fraud allegations etc were in the complaint and we'll advise on that in a private forum.  Please put "all experts follow up" in the subject line

Good luck,

Lee Horner

GOLDSTEIN, HORNER & HORNER, ATTORNEYS

TUCSON, AZ

WWW.freshstartAZ.info

---------- FOLLOW-UP ----------

The suit is not based on fraud.  I have mixed feelings regarding my realtor, but I know he lost a lot of money as well because he didn't get his commissions from other closings right around the time this happened to me.  He reported him to the DA's Office as well.  This guy has stolen money from numerous people and I'm not understanding why nothing is being done about it.  Not to mention the whole reason I'm in this mess is because of fraud to begin with!  Since I wasn't able to pay the mortgage because of the fraud initially, the bank has sold the smaller loan(split 80/20) to a collection agency.  So not only am I dealing with what is happening with this guy posing as a lawyer, but I'm also dealing with the mortgage fraud issues.  I've been contemplating filing chapter 7 for a while now, but now I feel like I have no other choice.  I have fought long and hard, and have noticed through these past three years that if you're not someone with connections and money, you get nowhere.  My heart goes out to people who are going through similar situations as my own.  Especially people with families to take care of and have lost everything.  I am embarrassed to live in a country where the cause of a global economic downturn is based purely on GREED.

I thank you for all of your helpful information.
Burg
 
Posts: 52
Joined: Sun Jan 19, 2014 10:08 pm


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