Part II The Tale: An Appalling Impac, Chicago Title & IndyMac Lending Story
Originally posted April 22, 2008...
The whirlwind pleasant holiday vacations amounted to a farewell tour, and eviction notice for Dee and her family, for shortly thereafter…
Dee had read the loan statements and questioned the use of some of the funds in the loan. A. Pauling told Dee, Son in Law SV and Grandson SV to shut up and get out.
A. Pauling had already set about spending his newfound, and in his mind, long overdue, and well deserved riches. He found himself a younger girlfriend, bought her a set of hooters, took her on vacations,
and when he wasn't renting a limo, he was tooling around town in his new Mercedes Benz on a drunken spending spree. He spread the wealth amongst his bar buddies and "friends", making several offshore investments of a dubious nature.
One thing A. Pauling did not count on was making interest payments on $305K all by himself on a fixed income of paltry means.
By early 2005, with the value of the home at $750K, A. Pauling had to replenish the money he had already squandered whilst maintaining the monthly payment.
It was time to go back to the well, or in this case the Big Red housing ATM spigot. But how could a 77 year old man on a measly pension and social security qualify for more money?
Furthermore, how could he as a trustee, further encumber the home, held in trust for his daughter Dee's benefit, without her knowledge or permission?
A. Pauling took the letter that his daughter Dee had drafted in good faith to a mortgage broker named MORTGAGE ELECTRONIC REGISTRATION SYSTEMS or MERS.
A scheme was hatched, not unlike the Enron-like accounting scheme's unfolding in today's debt markets. Not so strangely, all the loan applications and documents were in A. Paulings name, as an INDIVIDUAL.
In February 2005, he borrowed $520K, in the name of A. Pauling as an individual, securing a promissory note in favor of the lender, DOWNEY Savings.
In July 2005, he borrowed $111K from UN SECURED FUNDING, again as an individual. By December 2005 the little house was valued at $860K
In December 2005, he borrowed $774K, again as an individual, through IMPAC Funding Corporation. ($688K promissory note; and a HELOC of $86K)
A 77 year old borrower, had four times, over a period of less than two years, borrowed successive sums of money against the little home on I LOV IT Drive.
Without being on title, on a limited income, with no assets and a life expectancy of less than 15 years, he had encumbered the home for $774K.
HOW DID HE DO IT and WHAT POSSESED THE MORTGAGE BROKER, LENDERS, ESCROW and TITLE CO. to accommodate him, in supposed good faith?
More to come tommorrow in Part III: The Sting
Preface & Intro
Part I: The Hook
The whirlwind pleasant holiday vacations amounted to a farewell tour, and eviction notice for Dee and her family, for shortly thereafter…
Dee had read the loan statements and questioned the use of some of the funds in the loan. A. Pauling told Dee, Son in Law SV and Grandson SV to shut up and get out.
A. Pauling had already set about spending his newfound, and in his mind, long overdue, and well deserved riches. He found himself a younger girlfriend, bought her a set of hooters, took her on vacations,
and when he wasn't renting a limo, he was tooling around town in his new Mercedes Benz on a drunken spending spree. He spread the wealth amongst his bar buddies and "friends", making several offshore investments of a dubious nature.
One thing A. Pauling did not count on was making interest payments on $305K all by himself on a fixed income of paltry means.
By early 2005, with the value of the home at $750K, A. Pauling had to replenish the money he had already squandered whilst maintaining the monthly payment.
It was time to go back to the well, or in this case the Big Red housing ATM spigot. But how could a 77 year old man on a measly pension and social security qualify for more money?
Furthermore, how could he as a trustee, further encumber the home, held in trust for his daughter Dee's benefit, without her knowledge or permission?
A. Pauling took the letter that his daughter Dee had drafted in good faith to a mortgage broker named MORTGAGE ELECTRONIC REGISTRATION SYSTEMS or MERS.
A scheme was hatched, not unlike the Enron-like accounting scheme's unfolding in today's debt markets. Not so strangely, all the loan applications and documents were in A. Paulings name, as an INDIVIDUAL.
In February 2005, he borrowed $520K, in the name of A. Pauling as an individual, securing a promissory note in favor of the lender, DOWNEY Savings.
In July 2005, he borrowed $111K from UN SECURED FUNDING, again as an individual. By December 2005 the little house was valued at $860K
In December 2005, he borrowed $774K, again as an individual, through IMPAC Funding Corporation. ($688K promissory note; and a HELOC of $86K)
A 77 year old borrower, had four times, over a period of less than two years, borrowed successive sums of money against the little home on I LOV IT Drive.
Without being on title, on a limited income, with no assets and a life expectancy of less than 15 years, he had encumbered the home for $774K.
HOW DID HE DO IT and WHAT POSSESED THE MORTGAGE BROKER, LENDERS, ESCROW and TITLE CO. to accommodate him, in supposed good faith?
More to come tommorrow in Part III: The Sting
Preface & Intro
Part I: The Hook
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