loan fraud

by wha happened? 23 Replies latest watchtower scandals

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  Farkel

  :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.

  Are you a California real estate broker or a salesman? I was a broker in California for a dozen years. When I was in practice, the law said interest could not be charged before it is earned. The way to get around that with hard money loans is to charge points. Each point is 1% of the principal amount. Ten points was not unusual for those type of loans in the 1970's and early 1980's when I was in real estate. If principal amount was $100,000 with ten points charged up front, the borrower would receive $90,000 and still owe $100,000. The lender didn't get money up front with the poiints. He got it from the additional interest on the higher amount and the rest when the loan was paid off if it was a baloon loan.

  Farkel
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  still_in74

  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.

  you have your ticket my friend...... congratulations!!

  make sure you proceed with this through ethical legal action and make sure you get DF'd over it. Your wife will be pissed at the elders for DFing an honest business man while protecting a crook.
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  Babylon the Great Employee

  Real estate law is not my area of expertise, so I can't really comment on the legality of the transaction. But as for your attorney, he would probably be in violation of CA's rules of professional responsibility if he were complicit in an unethical transaction, even if the matter isn't technically illegal.

  You can always tell Brother Shady that if he insists on conducting unethical business transactions, you will be forced to have a talk with the elders about how Brother Shady's actions have "stumbled" you. ;) Seriously, I think it would be good negotiating leverage. Tell him as a JW, you are uncomfortable with the transaction! Use it to your advantage.
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  wha happened?

  Wells Fargo and several other lenders got hit with a class action suit and lost resulting in their paying out 100's of millions. They would start the interest at the day they gave loan approval. We're trying to find the detail on this case so we can proceed.