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bearishgurl.
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February 21, 2012 at 3:54 PM #19530February 21, 2012 at 4:08 PM #738444
markmax33
GuestI wonder what percentage of local Realtors knowingly did anything like this? 25%, 50%, 75%? I know many suggested and told clients to do certain things to make the paperwork look better.
February 21, 2012 at 4:26 PM #738445sdrealtor
ParticipantI would say 0% because the headline is misleading and wrong. The alleged fraud was perpetuated when he was acting as a mortgage broker not a realtor. Realtors dont do loans. There are some people acting in both capacities but loan fraud is done with the mortgage lender hat on not the realtor hat on.
February 21, 2012 at 5:11 PM #738446enron_by_the_sea
ParticipantHmm … I remember that during the bubble days, this guy’s face was plastered all over Mira Mesa!
February 21, 2012 at 6:20 PM #738448
Rich ToscanoKeymaster[quote=Bob Lobbla]I’m pretty sure this guy went to my high school…
In other news, I love your law blog.
February 21, 2012 at 7:40 PM #738451SD Realtor
ParticipantWow I don’t even know where to start… First off I could not agree more with sdr. I would have to check previous posts but I believe that the DRE should absolutely segregate the practice of real estate and financing. Realtors should not engage in financing and mortgage brokers should not engage in real estate. I think most of the problems I have read about seem to occur when a person is doing both. It is a monstrosity of a conflict of interest.
Don’t even get me started on Elegado as well. Many a client has told me horror stories about the guy. I also have first hand experience submitting offers on his short sales awhile back and they received the same sort of black hole treatment that another high volume prominent realtor gave to short sale offers.
Buyers beware… if your mortgage broker offers you realtor services run…. if your realtor says they can do a loan for you run. Now if your realtor has some references for independent mortgage brokers it doesn’t hurt to include those references in your list of potential mortgage providers you intend to interview.
February 21, 2012 at 10:34 PM #738459ParticipantGood Point SD R,
The worst offenders I have seen in this industry are the people who do loans and real estate sales. It should be illegal to do both for a single client. The conflict of interest is just too big. Montrosity might even be too weak of adjective.February 21, 2012 at 11:22 PM #738462an
Participant[quote=enron_by_the_sea]Hmm … I remember that during the bubble days, this guy’s face was plastered all over Mira Mesa![/quote]
It still is. Maybe not as many, but it’s still there.February 26, 2012 at 7:42 PM #738752ParticipantFwiw, I heard he is trying to cry poor. A muli generational family with lots of kids living in a rental. Kinda tough to do when you show up at the gym driving your Bentley
February 26, 2012 at 8:27 PM #738760ParticipantJust found this. Whatta peach!
http://www.nbcsandiego.com/news/local/Eric-Elegado-Accused-Mortgage-Loan-Fraud–140362683.html
February 27, 2012 at 11:24 AM #738787sunny88
ParticipantGood post and very instructive.
I don’t know this guy but have seen numerous signs everywhere in Mira Mesa. I wonder how he could go on for so long without getting caught. Perhaps the Philippino customers are less likely to report or he was so shrewd to keep them silent?February 27, 2012 at 11:33 AM #738789Anonymous
GuestSimilar situation in Temecula a few years back:
http://piggington.com/massive_mortgage_real_estate_fraud_in_temecula
Also involved targeting the Filipino community.
February 27, 2012 at 11:33 AM #738790briansd1
GuestAs long as property prices were going up, there was no harm done…
When prices dropped, things started to unravel. But the unraveling is a slow process that happens over many years. Lawsuits and prosecutions take years and decades to make it through the system.
Bank of America was sued by FNMA.. other banks are being forced to buy back loans the originated. Some executives have been prosecuted, investors are suing for losses…
February 27, 2012 at 11:49 AM #738791Guest[quote=briansd1]As long as property prices were going up, there was no harm done…[/quote]
That’s the case with all ponzi schemes and most cases of large-scale fraud. The bad guys can always hide the losses when things are going up.
But “no harm, no foul” is rarely an effective legal defense, and never a valid ethical one.
February 27, 2012 at 1:58 PM #738793bearishgurl
ParticipantHere’s another “bubble scammer” who preyed on ESL adults whom he mostly met in “church.” When he knew he was going down, he voluntarily did not renew his four-year-old RE Salesperson license (in lieu of disciplinary action). My understanding is that he and his “lackey,” Jose Garcia Garcia, had 37 DRE complaints against them.
http://www2.dre.ca.gov/PublicASP/pplinfo.asp?License_id=01335541
All in cahoots BIG TIME with Countrywide Funding. And we all know what happened there …
http://www.merchantcircle.com/business/Moises.Pacheco.DBA.Ifs.619-422-1892/review/read?cid=1191986
http://www.merchantcircle.com/business/Moises.Pacheco.DBA.Ifs.619-422-1892/review/read?cid=805173
http://www.merchantcircle.com/business/Moises.Pacheco.DBA.Ifs.619-422-1892/review/read?cid=828732
“IFS” stands for “Innovative Financial Solutions” (NEVER registered with the SOS). He and his accomplices, including Garcia and two processors (along with a VERY cooperative escrow company and appraiser), would doctor refinancer’s loan applications with “investment income” from “IFS.” They would park a few thousand in a new “client’s” bank account, season it about three months and show “investment income” records to the mortgage underwriters. They preyed upon limited English-speaking adults and/or those with limited education who were threatened with foreclosure. For this, they managed to convince these borrowers to invest most or all of the “cash-out” they rec’d from refi back into “IFS” for a monthly income. IFS actually paid the promised “dividends” for about 7 months before sending all the “investors” a “sob-story” letter. Older investors talked friends and family into becoming new investors. Some of the early investors were given the heads up when to bail out of IFS when it was clear they would no longer be paid. Many did so and let the friends/relatives they referred go down without warning.
Average “loss” to each borrower/investor was $60-$65K. Of course, this was all “funny money” anyway, resulting from trumped up appraisals.
All of the borrowers eventually went into foreclosure again and lost their properties.
Where is Pacheco now . . . you might ask?? Well, he went from a “big house” in Otay Ranch to an even “bigger house” for 51 months. When he is released, he will be paroled for 3 years.
http://www.bop.gov/locations/institutions/men/index.jsp
The party is over now but I feel these “worst of the worst” licensees working under the guise of “mortgage loan consultants” were and are THE main cause (at the street level) of the seemingly intractable distress among mortgage borrowers.
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