Foreclosure Victims Continue To Boil In The Heat

Burnsville based Holden and his family are victims of a $100 million when the foreclosure notice arrived from house builders, Parish Marketing and Development. But with more such instances the FBI has come knocking. However, many units have already foreclosed. The sheer number of foreclosures victims and their concentration in certain pockets made the authorities smell a rat; they have started nosing around. Two hundred units built by Parish are slipping into foreclosure. The Attorney General’s office has convened a grand jury to make necessary investigations.

Recently a bank officer from Apple Valley dealing in real estates pleaded guilty in a district court to charges of fraud involving millions of dollars in mortgage matters. Parish seems to be the central point of this nefarious scheme. The legal represents of Parish plead that all they did was overbuild when the housing market was peaking. The accusation is that the connections of a third party were utilized to falsely inflate valuation and lure ‘straw buyers’. The funds thus siphoned off from the unwary buyers were used to keep the company afloat. The lawyers for the bank officer argue that the third company that had been used for inflated valuation was none other than Parish itself. The matter is not quite so straightforward as dozens who have been regulated and licensed are involved – the appraiser, the agent, mortgage originator, closing notary and of course the insurance sales person. So even those who have been awarded license by the Minnesota Department of Commerce are going to be questioned.

Michael and Ardith Parish are in their sixties. They run Parish Marketing and Parish Homes and are strong in their argument that all they did was to build more than what they should have done. As a result debts have overwhelmed them. Now they are sincerely working out schemes to allow people to stay on as renters or to sell of as much of their units as they can to outsiders.

The Parish Company was quite reputable but unfortunately they over reached them during the housing boom. The bank gives the mortgage money to the developer who has to show the names of those taking the loans. Fictitious names were pushed in. Sometimes ten houses were sold to someone who did not have any income whatsoever! However the pyramid is collapsing like ninepins sending out warning signals across the country.

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