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Attyadvisor, Attorney
Category: Real Estate Law
Satisfied Customers: 7073
Experience:  29 years of experience in General Practice, Real Estate Law and Estate Law.
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North Carolina law: My son Bob obtained a private lender

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North Carolina law:
My son Bob obtained a private lender first mortgage of about $250,000 with property valuation of about $900,000, circa 2010. Bob and his widowed mother each occupied a separate residence on the 8+ acre site. The mortgage was arranged by Mike, a personal friend of both Bob and lender. The mortgagor is a Florida resident. Bob died in January 2011. No one could provide the mortgage payments and property went to default to lender. Mike, was living free in another NC property of Bob's. The equity was about $700,000. Mother got nothing.Mike immediately became POA of Bob's mother. Mike sold some items to pay immediate bills. Requests for accountability proved fruitless. Furniture and other stuff placed in local NC storage. Mike moved mother to northern Florida for about two months and then on to south Florida. Mother is currently in a adult living facility. Mike is no longer mother's POA.QUESTION: Is this a preditory mortgage? If so, any statue of limitations?

Welcome and thank you for your question. I will be the professional that will be assisting you. You stated this a private lender. Is this person in the business of lending money?

Customer: replied 8 months ago.
If you prefer, call me a(###) ###-#### I may be in car. Leave brief message and your phone number and I'll call right back.
I am Bob Jr.'s father. Mother is my ex-wife of 22 years. Her second husband died 10 years ago.

Thank you for the clarification. Is this person (MIKE) a licensed mortgage professional?

"Elements of Loan Fraud Loan fraud involves making false representations in order to obtain a loan of a larger amount of money than the borrower is entitled to under the lender's guidelines.

The primary elements of loan fraud are:

1. an intentional misrepresentation of fact

2. to a lender, mortgage broker, other loan originator, underwriter, governmental agency, or any person or agency serving a lender, underwriter or government guarantor

3. for the purpose of obtaining more money than the borrower could otherwise obtain

with the expectation that the mortgage broker, originator, lender, government agency or underwriter will rely on the false information.

In almost every loan fraud, false documents are created and supplied to lenders, closing attorneys, real estate agents, and others involved in the transaction. The loan-to-value ratio is a factor in virtually every loan fraud case, with the borrower attempting to manipulate the ratio to obtain more money than for which he or she would otherwise qualify."

Depending on whether this person is licensed or working in the industry determines if this is predatory lending under the act.

That being said, if he does not meet the requirements of lender under the act we may have an action against him under other grounds.

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Customer: replied 7 months ago.
Mike was a friend of Bob Jr. Mike introduced his contact-friend, a Florida private lender, to Bob Jr. At that time Bob Jr. was POA for his mother, Adrienne. It was Adrienne's money that made the original property purchase. Adrienne is currently in a Florida ALF. I visit her regularly and she maintains she knew nothing of the real estate mortgage funding, etc. When she was in NC, she was sickly, and continues so here in Florida. I believe something amiss in the mortgage transaction, especially the default with the large equity position. My telephone number is(###) ###-#### Please leave a message if no pick-up of your call. Thank you. Robert