Mortgage Fraud Blog is the premier website for news and information on mortgage fraud and real estate fraud throughout the United States.
Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of Smith Dollar, PC, is licensed to practice law in California and maintains offices in Santa Rosa, California. Email Ms. Dollar
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Homeowners to Receive Clear Title After Major Scam
A lengthy enforcement action against central Texas manufactured home retailers who sold homes without clear titles is now concluded. Owners of repossessed manufactured homes across central Texas will finally receive clear titles to homes they purchased in good faith from the unlicensed, fraudulent retailers. A second settlement in Travis County District Court will lead to industry-wide reforms by improving financing procedures for used or repossessed manufactured homes.
The agreed judgment with unlicensed retailers Andrew and Edward Huizar of the former A&E Investments, Bexar County, Texas, concludes the defendants’ legal dispute with the Texas Attorney General’s Office. Another defendant in the scheme, David Barroso of Sweet Homes, who defaulted by failing to contest the judgment, surrendered his retailer’s license in January 2006 and fled to Nevada.
“Today’s judgment concludes our lengthy crackdown on an illegal scheme to defraud manufactured home purchasers,” said Attorney General Abbott. “Despite the defendants’ cynical scheme, affected homeowners will finally have clear title to their homes. The Office of the Attorney General will continue monitoring retailers to ensure full compliance with the law.”
Under the terms of today’s judgment, the owners of 59 manufactured homes will finally obtain clear titles to homes they purchased from the Huizars and Barroso. Another 20 homes were never delivered to homeowners who had given down payments or paid in full for the properties. When the sales occurred, the purchasers assumed they purchased homes with clear titles, which are known as Statements of Ownership and Location. Unbeknownst to the purchasers, the titles were clouded with back taxes and liens that required additional payments before clear titles could be issued. All encumbrances, including tax liens and unpaid lot rentals, should have been paid by the Huizars and Barroso. The would-be homeowners later learned about the defective titles when they discovered outstanding liens and unpaid taxes.
Many of the manufactured homes were repossessed by financing companies that previously sold those same homes to the defendants, who in turn sold them to consumers. Edward and a third brother, Luis Huizar Jr., were indicted for theft and misapplying fiduciary funds because of their transactions involving two of the undelivered homes. Complaints have also been filed with the Bexar County District Attorney’s Office involving four other undelivered homes. The Attorney General is reviewing complaints involving 18 of the undelivered homes to determine if these also should be referred to the district attorney’s office for further criminal prosecution against Edward and Andrew Huizar and David Barroso.
Under the terms of today’s judgment, the Texas Department of Housing and Community Affairs’ Manufactured Housing Division will issue Statements of Ownership and Location to qualified homeowners. This includes purchasers who paid any back taxes, or others who did not receive the statements as part of the ongoing negotiations. The judgment also finds that unpaid tax liabilities were fraudulently imposed on these consumers.
A second settlement, this one recently filed in Travis County District Court, prevents finance company Bombardier Capital Inc. from selling used or repossessed manufactured homes directly to consumers unless the sale complies with the Texas Manufactured Housing Standards Act. The settlement also bars sales through unlicensed retailers.
Instead of moving repossessed homes to bonded locations managed by licensed retailers, as required by law, Bombardier offered several manufactured homes for sale directly to consumers. Many homes were still on lots that belonged to previous homeowners, where they sat idle. Because Bombardier did not sell its repossessed homes through a licensed and bonded retailer, many homes were sold illegally in an uninhabitable condition. Many were burdened by thousands of dollars in overdue taxes and unpaid lot rents.
Bombardier set aside $133,500 to compensate the families it harmed. Additionally, it must publish notices about the restitution in Dallas, Houston, San Antonio, Austin, El Paso and Rio Grande Valley newspapers.
The Attorney General urged prospective manufactured home buyers to consult with the Manufactured Housing Division of the Department of Housing and Community Affairs to ensure the homes are not encumbered by pre-existing liens or tax liabilities.
The Attorney General offered these tips for prospective manufactured home purchasers:
• The manufactured home retailer is always responsible for paying back tax liens;
• Retailers and salespeople must be licensed by the Manufactured Housing Division; always ask to see the retailers’ licenses before doing business with them;
• Always obtain a proof of purchase that included their retailer’s name, as well as the home’s label or serial number; verify that the home’s numbers match the proof of purchase.
Consumers may check with the Manufactured Housing Division to make sure their dealer is a licensed, reputable dealer who will submit an application for title on their behalf. The Statement of Ownership and Location issued by the division to a particular homeowner is the only instrument that represents a valid title.
Consumers may contact the Manufactured Housing Division’s customer service line toll-free at (800) 500-7074, or learn more about requirements for owning a manufactured home at http://www.tdhca.state.tx.us/mh/docs/mhtips.pdf.
I’m facing the same thing in Alabama. Bought the mobile home on 10-21-08 from a dealer and as of 1-18-09. Can some one help my situation?
Posted by on 01/18 at 12:55 PM
I’m facing the same thing in Alabama. Bought the mobile home on 10-21-08 from a dealer and as of 1-18-09 I still don’t have a Title. After repeated tries to contact dealer I’m ignored. They won’t give me a copy of the application ext. I have the bill of sale and copies of cashier check that I paid cash for it. Can some one help my situation?
Posted by on 01/18 at 01:10 PM
Trying to do a re-fy (rev) for medical and a judgment creditor refuses to supply anything in writing so the title company can process the closing.Claims to have sold the judgment(will not say to who )has told 5 different folks this (Lawyers included)How can I move beyond this and proceed to closing ? title company will not escrow funds ,wants to clear the matter.Willing to pay,escrow ????-Thanks for your time for any input.
Failed Mortgage Firm Trustee Allowed $50,000 in Fees Union Leader
U.S. Bankruptcy Court Judge J. Michael Deasy will approve $50,000 in legal fees for the trustee of failed mortgage brokerage businesses Financial Resources Mortgage Inc. and CL&M Inc.
Bend Oregon Event to Help Homeowners Prevent Foreclosures Oregon.Gov
As part of an ongoing effort to help homeowners avoid foreclosure, state agencies are organizing a foreclosure-prevention event in Bend on Saturday, March 27, 2010.
Shelbyville Man Gets 2-Year Sentence For Loan Fraud Chattanoogan.Com
Prosecutor Gary Humble said the lost was approximately $2.3 million in the mortgage fraud involving hundreds of homes in the Shelbyville area.
Lend America, VP Ashley Banned from FHA Housing Wire
Michael Ashley, the embattled former vice president of Federal Housing Administration (FHA)-backed mortgage originator Lend America, and the company he worked for, were permanently banned from doing business in the industry last week.
Countrywide Tries to Pin Blame on Insurer Court House News
Countrywide Home Loans demands $111 million from Triad Guaranty Insurance, claiming Triad is trying to blame mortgage lenders for the insurer's role in the housing bubble and collapse.
Investors Say They Were Swindled in Property Scheme Fox 13 Now
Utah Division of Consumer Protection is joining forces with a few investors who claim they have been cheated by an agency called "Utah Mini Ranches.
Greenfield Man Accused of Housing Scam The Republic
A former real estate agent conned at least eight people by renting them properties actually owned by a federal agency and then running off with their deposits, prosecutors said.
Appraisal Institute Opposes Obama Administration's Plan for Homeowner 'Short Sales' PR News Wire
Citing concerns about increased mortgage fraud, four organizations representing more than 35,000 real estate appraisers today voiced their opposition to changes to an Obama administration program that will encourage "short sales" of homes.
Ownership Rights to Get Another Look TBO.Com
State lawmakers may beef up protections of property owners' rights by rewriting a law this spring that is at the center of a case of alleged fraud in Pasco County.
Thursday, February 18, 2010 F. Jeffrey Miller Trial Continued Testimony
As reported by Anne Mitchell, who viewed the trial:
Angela Parenza worked for Jeff Miller as the office manager for 7 or 8 years beginning in 1998. Parenza was indicted along with Miller and pled guilty to conspiracy to commit bank fraud and money laundering. Parenza testified that Miller or his contractors allegedly preferred to build all the...
Wednesday, February 10, 2010 F. Jeffrey Miller Trial Coverage Continued - Witness Testimony
Steve Middleton Testimony - Coverage Provided by Anne Mitchell
The Government continued in its cross examination of Steve Middleton. He was shown several HUD-1 statements involving sales of homes located in Overland Park, KS, and Olathe, KS. The HUD statements each allegedly showed line items of payments to (James) Moser & Associates, LLC's...
Monday, February 01, 2010 F. Jeffrey Miller Trial Coverage - Continued Witness Examination
According to Anne Mitchell, who is present in court for the trial:
Next Witness: Kelly Sanford
Kelly Sanford of the Federal Reserve was a short witness for the Government. Sanford manages electronic payments between banks and member financial institutions. He was shown copies of wire transfers and asked whether they coincided with the counts in...
Wednesday, January 27, 2010 F. Jeffrey Miller Trial - Prosecution Witnesses Continued
According to Anne Mitchell, who is viewing the trial:
January 13, 2010
Witness: Rick Hayes
Rick Hayes testified that on the day that he closed on his Miller Enterprise home, he received a phone call from the Kansas Banking Commission informing him that his loan was fraudulent. After the Hayes responded to a classified ad, they met with John...
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The information and notices contained on Mortgage Fraud Blog are intended to summarize recent developments in mortgage fraud cases and mortgage banking matters nationwide. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about mortgage banking, mortgage fraud matters or who believe they require legal counsel should seek the advice of an attorney. The creators, editors and sponsors of Mortgage Fraud Blog do not intend to create a confidential relationship or an attorney-client relationship by communication via or arising from this site.
Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of 
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