Charles County Realty » Fraud

Joy Jackson Pleads Guilty, She's Taking a Cue from Bernie Madoff!

Admin — Tue, 31 Mar 2009 13:37:52 +0000

It may not save the homes of the people scammed by this scumbag group, but at least some justice has been served. Joy Jenise Jackson, the former head of the Metropolitan Money Store, has pleaded guilty on charges of conspiracy to commit mail and wire fraud, which carries a maximum prison term of 30 years.

She is now the 7th and most significant player to plead out on charges related to the Metro Money Store scam.

Prosecutors say that 115 people have been identified as victims, and that number is expected to grow.

This sort of mortgage fraud ran rampant through Maryland during the boom years, and now that it’s come crashing down, we’re finding cases of scumbags like this, cheating people out of the very roof over their head, and for what? $800,000 spent on her wedding? A McMansion in Fort Washington?

I hope it was worth it, because my bet is that Ms. Jackson will be behind bars for at least the next decade. In a way, that’s almost too good for her. She’s caused over 100 people to lose their homes. I think we should find a punishment to fit the crime. If they don’t have a roof over their heads anymore because of her? Why should she be allowed to have one? Make her pitch a tent and live in the prison yard or the next few years!

Washington Post Article

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000 – office
301-653-8116 – cell

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Maryland Home Equity Thief Pleads Guilty

Admin — Thu, 11 Dec 2008 20:03:51 +0000

If you’ve been following my blog for awhile now, you probably know that I like to keep up to date on the real estate scams that have littered the metro area in recent years. One of the scams that I wrote about awhile back was the Metro Money Store scam.
I won’t go into all the previous details (you can read them here), but there’s been a bit of good news recently that I wanted to share with all of you. Katisha Fordham, One of the principal figures of the Metro Money Store scam pleaded guilty yesterday to conspiracy to commit fraud, and can be sentenced to up to 30 years in prison.

The two biggest players in the scheme, Joy Jenise Jackson and Kurt Fordham have yet to be convicted, although 4 people have now pleaded guilty as the court builds their case. Katisha’s plea may force her to testify in court against her brother and sister-in-law.

It still disgusts me that people were able to rob homeowners like this, right in our back yard. Their actions have forced people into foreclosure, cost them their life savings, ruined their credit scores, and all because these con-artists found a way to get rich quick at the expense of honest folks like you and me. Good riddance to bad rubbish!

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Charles County Real Estate Blog

Lenders Choke The People Looking to "Buy And Bail"

Admin — Tue, 23 Sep 2008 17:00:18 +0000

FHA and Conventional Loan guidelines were revised this morning, this time to prevent the so-called “buy and bail” folks trying to escape their overpriced mortgages.

Haven’t heard of a “buy and bail” scenario? It goes something like this:

Until now, people who decided to rent their home instead of sell it were allowed to claim 75% of the rent on their current property as “income”, which they could use as income towards the purchase of another home.

There have been people exploiting that to avoid selling their home, and then letting their previous home fall to foreclosure, leaving their lender holding the bag. (This sort of thing is also known as “mortgage fraud” in certain circles…)

The new guidelines are designed to prevent people from doing that. You can still qualify to use that rental income as revenue towards purchasing another home, but only if you have at least 25% equity in your previous home.

For people with rental properties as investments, this shouldn’t affect you much. What this does affect is people looking to move their primary residence and don’t have enough equity to sell. The concept of renting your home until the market gets better may no longer be a possibility.

If you have any questions about how this decision may affect you, please feel free to give me a call!

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Southern Maryland Real Estate Blog

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Feds Press Charges in Metropolitan Money Store Scheme

Admin — Fri, 13 Jun 2008 12:04:54 +0000

It looks like things are moving forward with the case against Joy Jenise Jackson (formerly known as a stripper named Night Rider), Kurt Fordham, and The Metropolitan Money Store.

Remember them? They’re the one’s accused of "saving" people from foreclosure, while stripping their equity out from under them, and leaving the victims in financial turmoil.

Former Stripper Joy J. Jackson Ran Foreclosure Rescue Scam
Uploaded by Scambuster2007

Well, now they’ve decided to press charges against 8 people, including Joy Jackson and Kurt Fordham, and (provided that the accused can be located), we may finally see some closure to this bizarre tale. It’s bad enough that we’ve dealt with scummy lenders writing bad loans, scummy get rich quick schemes promising to pay your mortgage, and the real estate bubble bursting, leaving us with a serious foreclosure problems, but seriously, this too?

It’s an embarrassment to legitimate professionals to see garbage like this happening in the region. I hate the fact that a few bad apples like this can really ruin the reputation of the industry as a whole.

It’s great that they’ve pressed charges, but what I want to know is this: Where in the hell are they, and how do you plan to arrest them? This was in the news months ago that the feds were trying to build a case, and I’d be shocked to hear that they were still in the country at this point! **

**Correction** Multiple arrests were made thursday morning in North Carolina, including both Ms. Jackson and Mr. Fordham, among others.

Metro Dream Homes- How Many People are Involved? and Auction Re-Cap

Admin — Mon, 11 Feb 2008 00:40:46 +0000

The Real Estate Market in Southern Maryland has been incredibly busy so far this year, so I have been unable to post updates to this blog about Metro Dream Homes.

I have heard quite a bit recently, however, so I’d like to briefly catch everyone up on what I can. First off, there was a big article in the Fredericksburg Free-Lance Star regarding MDH where Raymond Peroutka, the man in charge of the court ordered investigation spoke in detail about the current status of the case and the receivership.

What struck me about the article was that he estimated that the number of homes involved was closer to 2,000, not 1,000, which is a HUGE difference. I have not spoken with anyone from Invotex directly, so I don’t have any first hand knowledge of what they have discovered thus far. What I do know is that more than a few banks have taken heavy losses due to short sales and foreclosures, and I expect the losses to continue to mount.

On a related front, the asset liquidation auction for Metro Dream Homes happened on the 23rd of January, and apparently the confiscated vehicles had already been auctioned off in the weeks prior. There were rumors about a Ferrari and a Porsche being auctioned off among the assets, but I have no way to confirm that. Did anyone out there reading this happen to attend the car auction?

I was stunned by the amount of equipment being auctioned off! Cases of water bottles, branded with the Metropolitan Grapevine Logo, along with branded M&M’s, Notepads, car-shaped stress balls, and tons of equipment! There were dozens of computers auctioned off, lots of plasma TV’s (I think a 52" plasma went for around $1,400) and office furniture.

I ended up buying a drill press for less than $20, as well as a stainless steel mini-fridge ($45) and a set of 10 office desks for $20. There were a lot of deals to be had, and the auctioneers sold everything in the warehouse! Anyone else who attended care to share their experience with the auction?

That estimate of 2,000 homes involved in the program really bothers me. I’m starting to wonder if there has ever been a mortgage scandal in the United States as large as this one? I’m going to have to do a little more research to find out, I’ll post whatever I discover!

~Jonathan Benya
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Waldorf and Southern Maryland Real Estate
Southern Maryland Real Estate Blog

METRO DREAM HOMES- Auction Scheduled (1/23/2008)

Admin — Mon, 21 Jan 2008 11:47:31 +0000

Just a quick update for all of you keeping track of what’s happening with Metro Dream Homes and Metropolitan Grapevine….

There’s going to be an auction of MDH assets this Wednesday, January 23rd, at 11am. Included in the list of items up for sale:

Large Screen TVs, AVAYA phone systems, printers, copiers, monitors, Redskin memorabilia, (3) trailer loads of office furniture, power tools, large show shipping cases and more.

I did notice from the photos of items that at least 1 ATM machine is up for grabs, and who knows what else is available. The auction will be held at: 14228 Cherry Lane, Laurel MD 20707

There will be a 15% Buyers Premium, and hopefully this will go towards starting to pay back some of the hundreds of people that were cheated in this scandal.

Link To Auctioneer’s Website

~Jonathan Benya
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Waldorf and Southern Maryland Real Estate
Southern Maryland Real Estate Blog

METRO DREAM HOMES- Scope of Receivership is expanded

Admin — Sun, 13 Jan 2008 01:41:57 +0000

Just as a quick update to the Metropolitan Dream Homes situation, California has granted a receivership order for and Invotex representative to take control of California based assets of Metropolitan Grapevine and related companies.

The order came at the end of December (December 21st), which leads me to ask this:

Just how deeply buried is the truth when it comes to this case? If Invotex took receivership of Maryland and Virginia Assets in mid-November, why has it taken so long to do the same in California? Even before assets were frozen by the Attorney General, it was common knowledge that they were operating in CA, so I can only assume that this is because there has been some difficulty in establishing evidence of assets on the west coast.

Is there anyone out there who has more insight on the situation? I know Invotex has their hands full here, but what’s really going on?

Avoiding Foreclosure- Why it Matters and How To Do It!

Admin — Wed, 28 Nov 2007 15:48:24 +0000

Are you falling behind on your mortgage payments? Are you at risk of losing your home because that pesky arm has made your payments impossible?

There IS hope for people out that who are at risk of losing their home. If you’re worried about foreclosure, here’s a few important things to do to help you avoid foreclosure.

1. Don’t Ignore the Problem

If you find that you are unable to make your payments you need to approach the problem in a proactive manner. Avoiding the issue until the bank starts calling is NOT the best way to deal with the situation. Call your lender immediately and discuss with them potential options and see if they have a program to assist you.

2. Open and Respond to all mail

Lenders would rather help bring you up to date than take your house, but they have no way of knowing your intent if there is no dialog between all parties.

3. Research your Options

Visit Hope Now for options on credit counselors and loss mitigation specialists who specialize in help people avoid foreclosure. HOPE NOW is a government sponsored organization designed to help people survive the current credit crunch.

4. Consider Adjusting your Spending Habits

Cable TV is NOT a necessity, and if you’re trying to make bills work, you may want to consider cutting down on luxury spending. If you are also trying to pay on unsecured credit card debt, you may need to decide which bills get paid first. Mortgage Payments and Insurance should typically be the most important bills you have.

5. Avoid Foreclosure Scams

There’s a lot of companies out there doing very unsavory deeds, preying on desperate homeowners. Paying someone to help you avoid foreclosure does make sense; that money should go towards the mortgage. Be wary if someone claims to be able to solve your foreclosure problems quickly and easily, and don’t sign documents unless a lawyer or real estate professional has gone over the documents with you. Many people have unknowingly signed over the deeds to their houses to companies claiming to instantly solve foreclosure problems!

6. Be Prepared to Ask for Assistance

If you do find you need to sell your home, don’t wait until 2 weeks before the foreclosure is complete. The average market time is 100+ days in most markets provided the house is well priced. If you want to sell more quickly, you will need to discount the price of the home accordingly. Now is not the time to FSBO, make sure you get in touch with a professional who is EXPERIENCED in helping homeowners avoid Foreclosure

7. If you enter pre-foreclosure, expect a 100-150 point drop in your credit score. If you are foreclosed on, that number can climb as high as 250 points, making purchasing another home nearly impossible.

There is help out there, you just need to be ready to ask. I speak with homeowners daily in regards to situations like this, and I’m always willing to provide as much information and advice as I can, free of charge, to help people keep their homes.

~Jonathan Benya
Century 21 New Millennium
301-653-8116

Website

Blog

Foreclosure Buying Tips- What You NEED To Know! Part 2- Foreclosures and Auctions

Admin — Sat, 24 Nov 2007 16:05:43 +0000

This is part 2 of a 3 part series on how foreclosures work and how to find the best home to fit your needs at the best price.

There’s really no great mystery
to it, but there is a process to it and I’m here to do my best
explaining how each step works and how you can capitalize on it as a
consumer to keep a little more cash in your pocket.

The 3 steps are this:

Pre-Foreclosure
Foreclosure
Post Foreclosure REO(Real Estate Owned)

I will be posting this as a 3-part series, so I will break explain Post-foreclosure and REO Properties in my next post.

Foreclosure

What This Means

The homeowner is delinquent in paying their mortgage and the bank
has foreclosed on the property. At this
point the homeowner no longer owns the property and has been informed that they must immediately vacate if they have not done so already.

A foreclosure property is often placed on the market for sale by auction on the courthouse steps. It used to be common to find a great deal by attending the auctions and purchasing the home there.

What has happened recently is that because of lawsuits that have established precedence, banks will typically have an agent of theirs at the auction to prevent the property from being sold at a huge loss to the bank.

Because of the nature of the market right now, it is hard to establish what a home would really sell for so now you will find that most properties do not actually change ownership through courthouse sale because the price someone is willing to pay for a property, sight unseen, is not acceptable to the bank at that time.

The Positives

You may be able to get a great deal on the home- If the bank is willing to sell the home at any price, this is your chance. Typically, banks have not been very inclined to sell at a price acceptable to consumers, so auctions have lost a lot of popularity.

The Negatives

You are not typically able to view and inspect the interior of the home prior to auction- The house is sold strictly as-is, where-is. There could be any number of problems, mold, structural damage, water damage, etc. and there is no way to know without seeing the property in advance.
The whole process can seem rushed- Having to decide on buying a home without having seen the current condition is not wise, and you shouldn’t allow anyone to convince you otherwise.
Caveat Emptor- The home is being sold strictly "buyer beware". Appliances may or may not exist/work, and the same goes for plumbing, electrical systems, etc.

How to Capitalize

Focus on homes you can view in advance- There are rare situations where the house may be held open prior to auction, make sure you take advantage of that fact!
Know in advance home much you are willing to spend on the property- And don’t spend more that that amount! Remember that you’re there to save money, and spending more than you wanted isn’t wise. You are calculating the financial risk into any assessment you make, and there’s a reason you decided on a figure. Stick with it!

Remember that at this point the bank has more invested than just the loan amount: There’s legal fees, departmental fees, contractor fees (possibly) transfer/title/recordation fees, and they are going to want to recoup that if at all possible.

Banks aren’t in the business of losing money, and they have shareholders to answer to if they sold property from bad debt for pennies on the dollar when they’re losing as much as they are on bad loans.

If you had been able to buy the property from the homeowner prior to foreclosure, there would have been less overhead involved in the transaction, and you may have saved more money.

Part 3 will describe how buying an REO home post foreclosure. Make sure you check back for that and if you have any questions, please ask!

Jonathan, Marsha, & Thomas Benya
~Team Benya
Century 21 New Millennium
301-653-8116
Website

METRO DREAM HOMES- A little more information has trickled in

Admin — Mon, 12 Nov 2007 12:34:33 +0000

It’s frightening to think of just how deep the bottom line has been buried in regards to Andy Williams and Metropolitan Dream Homes.

Here’s the latest info- 18 companies have been determined as subsidiaries of Metro-Grapevine, the parent company of Metro Dream Homes ( aka MDH ). over 1,000 people are financially involved. Company assets that have been recovered include:

$150,000 in cash

50 cars- including S-Class Mercedes, Corvettes, Escalades, etc.

14 local properties- located in Laurel, Virginia, D.C.

The company liabilities are between $200-$300 Million, they are unable to pay the mortgages as promised, and are behind by several months at this point.

There was a recent article in the Laurel Leader, link is included here:

The attorney general’s office is asking anyone with knowledge about the assets of POS or any of its affiliated companies, including bank accounts, property or cash, to call the office at 410-576-6360.

Anyone who would like to share their experience about MDH or Andy Williams, please email or call me directly and I will include your story to my next update.

j.benya@c21nm.com
301-653-8116