I am a broker. I really do take care of my clients. Recently, a "brother" told me he finances hard money loans. What are hard money loans? Well it's a short term, high interest rate loan to secure a property or to prevent a property from foreclosing.
So recently my broker/attorney has a client that quickly needs to buy his partner out. Hard money comes in. It's delayed and the "brother" is annoyed because he pulled money out of an IRA early. No mind u he is going to make 37k on the deal. So what if he loses 2k and only yields 35k?
Well the brother tells me he is going to pre-charge interest. I sternly warn him that it's illegal, he proceeds anyways.
So now my broker/attorney and I are in a dilemma. If we say nothing we are accountable legally. I now have to go to the Department of real Estate and report this illegal action. It truly is illegal as this issue was in court about 4 years ago and the courts ruled against the banks.
This brother is serving and is well known. I spoke to my wife and I told her if it gets ugly I'll likely get DF'd because I went to Caesar and not through the congregation. She was ok with it.
I'm going to call this brother as soon as we find out what our legal stand is. Perhaps he will refund his error.
Maybe it's finally time to move on.
words? thoughts? opinions? all are welcome here
loan fraud
by wha happened? 23 Replies latest watchtower scandals
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wha happened?
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cognizant dissident
Perhaps he can legally do what all the
loan sharksmortgage brokers in Canada do. Instead of charging say, 12% interest they charge 10% and 2 "points" upfront as a loan "fee'. Perfectly legal up here. Ought not to be though!Cog
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wha happened?
uhm he charged 5 points up front + costs at 15% annually. Sort of a son of a bitch
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JWdaughter
Report him, you already warned him! And reporting him to a regulatory agency is NOT taking him to court. If the state does, that is on HIM. After I report it to the regulatory folks, I would report him to the elders. I would be interested if they thought that dishonesty in business was a DF offence.Since, again, you already 'went to your brother'. And if they try to DF you on that basis, take it to the papers.
That's all got.
You and your wife are cool. I like you already. -
cognizant dissident
uhm he charged 5 points up front + costs at 15% annually. Sort of a son of a bitch
OK, now he is just being greedy!
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wha happened?
soon is the due date
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Dagney
that's quite a predicament.
Glad the bad guy has to make good and your wife is standing by your side.
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Hope4Others
Me personally I would do the right thing..no one wants repercussions to come back on them down the road. What goes around
comes around they say. Being forth right is always the best way to go. Others see your honesty and feel comfortable to deal with you.
Just my 2 cents.. Glad your wife is also behind you in your decision.
hope4others
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Octarine Prince
Report him!!!
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lisavegas420
if he gets away with it this time...he'll do it again.
lisa