Here's a quandary: Let's call this a "story," a fabrication. But I am looking for advice. I spoke with the loan officer for a local builder in 2005, who told me that since my credit was great, I could indeed qualify to build a home. I explained that I had no income, though I had made some money from selling a property the year before. I had just received a check from the sale of a shopping center that was part of an inheritance. I was told that this was sufficient evidence for the loan to be underwritten. In fact, I could even build 2 homes. But when I arrived at the title company, the documents for house #1 were completely false, saying I made $11,000 a month, had $250,000 in savings. I stopped the transaction, and called the loan officer on the phone (this call was witnessed). Her response was that "everyone is doing it, the underwriters thought it was fine, so go ahead and do it." It took 16 months to build the houses, completed 6 months apart, by which time the market had soured. I put $125,000 into each home (the inheritance). By the time the final (post construction) loan on house #1 was due to be signed, American Home Mortgage had gone out of business. She found me another lender, EMC (Bear Stearns) at higher terms, and told me that since the first loan was approved this one was as well. Again, I had no income. The second home was financed by Countrywide from a call I personally placed. I was completely honest with the "Senior loan officer," who said he could indeed help me. At this point, I was going into default on the construction loan and was due to lose my investment. When I received the papers from them to sign, the same thing had occurred. The paperwork said that I made $14,000 a month, had $200,000 in a KEO account, my own home was worth a million dollars. All false information. Again, I called the loan officer from countrywide. He gave me the same advise. Again, I had no income. So now the first loan (house #1) is about to reset at a really high figure, and I am in danger of losing the $125,000 I put into it in by going into foreclosure. It is leased out, but a a huge loss when paying interest,principal, taxes, and insurance. The second home is leased also, but I lose $650 a month plus vacancies plus repairs - just had to redo the septic at $3,000. If this situation were real, do I have recourse against any parties to get my $250,000 back, plus additional money spent for landscaping, fencing, septic upgrade, etc? Do I have a legal case here? Do I stand facing criminal charges of fraud? Please, what do you think? I'm broke, shouldn't have let this happened but was advised that it was a smart move. Carey1810@aol.com
