Breaking News

Lawsuits Filed in Jefferson and Baldwin County Mortgage Fraud Cases

William “Trey” Traylor of the Birmingham law firm Yearout & Traylor, P.C., is representing clients in 16 different cases of mortgage fraud in Jefferson and Baldwin counties. The sellers whom claim they were victims of real estate schemes that defrauded them of about $1 million altogether.

The clients are retirees who were seeking to sell vacation homes in Gulf Shores, Alabama. Because of the alleged schemes, they have lost out on tens or hundreds of thousands of dollars that was meant to support them during their retirement.

9 Face Lawsuits and Criminal Charges

In addition to the civil lawsuits, the nine defendants accused of fraud are also facing criminal charges. Lance Collins of Baldwin County and eight other individuals have been sued for engaging in fraudulent mortgage practices in several separate cases. Companies involved in the suits include Pinkerton Financial Corporation, a mortgage broker; multiple lenders and title companies; the owner and employees of Joan T. Realty; and Mandoki Corporation, a local real estate company.

Some related cases have been settled outside of court and will not go to trial. The lawsuits against the title companies were dropped, as was a lawsuit against one of the real estate companies, which has filed for bankruptcy. An outside settlement was reached with the lenders involved in the mortgage dealings.

Straw Buying Schemes Led to Seller Losses

Mr. Traylor and his clients assert that the nine defendants and their companies were involved in an elaborate “straw buying” scheme, a common type of mortgage fraud in the United States. The buyers would negotiate two mortgages in each purchase: one with the seller directly for a percentage of the total sale price, and the remainder with a traditional mortgage lender. The buyer would ask for more money than necessary for the traditional mortgage, and would eventually stop making payments, sending the home into foreclosure. The sellers were then left without the full payment that they were owed through their secondary mortgages.

Mr. Collins and the other defendants are facing a number of criminal charges for their participation in these suspected fraud schemes, including charges for conspiracy, mail fraud, bank fraud, drafting false loan applications, wire fraud, and drafting false credit applications. The first of the 16 lawsuits are scheduled for September, with others expected to be heard in the following months.

About William Traylor, Attorney at Law

William P. Traylor III is a founding partner of the Yearout & Traylor, P.C., based in Birmingham, Alabama. He has experience representing dozens of individuals and families who have been affected by mortgage fraud scams and other types of fraud or negligence. If you or someone you know has lost money due to illegal or unjust mortgage practices or predatory lending schemes, contact a Birmingham mortgage fraud lawyer today at 205-414-8160.