As the licensing agency for the state’s real estate and mortgage professionals, IDFPR is emphasizing that regardless of the circumstances for selling or refinancing a home, it is extremely important that homeowners:
· Read everything before signing and get all “promises” in writing. If there are things you don’t understand, consider visiting a housing counselor or hiring an attorney before signing any documents. Verify all the figures at the closing for accuracy and completeness. Some schemers will offer to complete paperwork for the homeowner or ask that he or she sign a stack of documents, supposedly to secure a new mortgage. Victims later learn they signed over the deed to their home;
· Be wary if a foreclosure “rescuer” or mortgage “broker” discourages the homeowner from contacting the mortgage company or an attorney;
· Never sign a contract under pressure and never sign away ownership of property. Remember, signing over the property deed to someone else does not necessarily relieve the original owner of his or her obligation to repay the loan; and,
· Ask a trusted family member, licensed attorney or a financial professional to review paperwork before signing.
Working with the Chicago Police Department (CPD), IDFPR found that Pabon worked with a team of accomplices who acted as “homeowners” facing imminent foreclosure, and “investors” willing to purchase properties prior to foreclosure. Pabon originated these loans with forged appraisals, fraudulent income and assets, and fake verification of deposits. State regulators found that Pabon processed 14 of these loans totaling $1,856,880 million. IDFPR revoked Pabon’s license on Jan. 27, 2009.
Pabon had diverted funds to a real estate management company called “Eyes Have Not Seen,” owned by Charles White, who was identified as a key conspirator in a “mortgage rescue” scheme that IDFPR shut down in 2006. At that time, White was charged with exploiting unwary homeowners who were at risk of foreclosure by conning them into signing over the title and any earned equity from their properties, allowing so-called “investors” to then purchase the homes at a fraction of their market value.
White misled homeowners to believe that the new investors would lease the homes back to the owners while they were attempting to regain their financial footing. In addition, White falsely assured homeowners that the new investors would repay the delinquent mortgage accounts. As a result, IDFPR revoked White’s license and continued to follow up on tips it received on White’s fraudulent real estate business activities. White has continued to target vulnerable homeowners and was recently indicted by the Federal Bureau of Investigation (FBI) for several activities involving defrauding homeowners.
In the second scheme, Pabon worked with Derrick Stephens, CEO of DAS Development Co., who is believed to have found borrowers for Pabon and create false verification of deposits. Stephens also suggested that Pabon use fake assets for all clients and “advertised” the business of “providing proof of funds” to Pabon.
If you suspect mortgage fraud, call the IDFPR homeowner hotline at (877) 793-3470. A homeowner should also enlist the help of the U.S. Department of Housing and Urban Development (HUD) and a HUD-approved housing counselor. A list of HUD-approved housing counselors can be found on the Internet at http://www.hud.gov or by calling (800) 569-4287.