- Report: #426759
Report - Rebuttal - Arbitrate
Complaint Review: SunTrust Mortgage
SunTrust Mortgage901 Semmes Ave. Richmond, Virginia U.S.A.
SunTrust Mortgage Serious Fraud by SunTrust Mortgage Richmond Virginia
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They underwrote a construction to permanent loan in July of 2005 for purchasers/borrowers Liana & Rusty Bennett. I am the builder with the Contract for the new residential, signed first by the Bennetts and then assigned to SunTrust in its entirety.
These people should not have qualified for this loan. They lied about their jobs, income, and assets. SunTrust was aware of this because on the face of the application in the assets column it stated a home was owned by these people worth $175,000. These people did not own this home. This home had sold and recorded in somebody elses name over a month before the loan application dated 8/2/05. You might say this is an oversite....well then why would SunTrust underwriters also allow Proceeds From The Sale of that Home in the same asset column? SunTrust allowed their borrowers to 'double dip' to qualfy for this loan. They did not own a home and even the sale proceeds were overinflated from the true amount.
So I guess you could say that you own a home you don't as an asset and also list the sale proceeds from the same home. It is either one or the other.......P in predatory lending?
SunTrust also contracted with these people to buy the Bennetts and my contract for the new residential improvement (Construction Loan Agreement). They qualified my company and I signed the Disbursement Authorization Form of where I wanted my Draws to be wired. They changed it on me the day of closing to go into their borrowers account although the Bennetts had already signed the Hold Harmless agreement. I had no idea at the time of the info. on the application. I had no idea Liana Bennett had previously filed bankruptcy. I assumed they were qualified, afterall, SunTrust ran a credit check on my company and verified me to be able to complete the contract that would ultimately release the deed to the land held in escorw.
The first draw went smooth. I requested the funds as signed by the percentage schedule I signed with SunTrust. SunTrust sent their appraiser out, he verified the work and SunTrust wired the funds to the Bennetts who wrote me a check.
9 weeks later the second draw was for over $65,000. Same procedure only this time the Bennetts kept the money, and fired my company and claimed breach. I got an attorney. Well my unsophisticated attorney filed a material suppliers lien against these lying borrowers/purchasers/buyers instead of demanding the proceeds after their buyers breached the security agreement. They were supposed to hand the funds over within so many days after receiving my requested draw. Mrs. Bennett was still unemployed and it was December 9th. She even spent some of the money before she fired us! She didn't even have the full amount of the draw in her account when we were fired.
We went to court and the judge stated we clearly didn't breach.
SunTrust Mortgage has breached their agreements, but although they were a listed party, my ex-attorney failed to bring any claims against them although apparently there were several he should have. If Suntrust would have been honest about the Obligation we would have worked with them to complete the home. It now sits half finished and empty.
Since the attorney filed this statutory lien SunTrust had their attorney claim they needed a Right To Lien from us! The balls! They knew about the entire recorded construction mortgage. They signed the Construction Loan Agreement with my company's name at the very top and the Commitment showing our contract and including the date. I had to sign the Description of Materials, provide full blueprints, get qualified by them. They knew our underlying right to be paid for the Contract, but since our attorney was stupid (we now have a malpractice case against him) they have remained silent as to the Obligation charged against the Note, I would call this silent fraud! They still know our underlying right to receive the remaining Proceeds deposited which consist of $158,000 because they will not be able to rollover the loan to permanent financing.
Their borrowers have surrendered everything in bankruptcy over two months ago and SunTrust still has not defaulted these liars....and to top it off, they tried to get us to take an assignment of the construction loan agreement! Now, why would we take their assignment to pay ourselves for the contract which was charged against the note when there is only $158,000 and we are still owed $223,398.01 remaining to be paid for the Collateral (Our Contract)! We also have a judgment lien against the property for willful and malicious defamation for $55,000 plus 9% interest. The Bennetts were not able to discharge this judgment in their bankruptcy.
In my opinion SunTrust SHOULD NOT be rewarded with bailout funds for these loans! Community Bank turned these people down for a loan and I don't believe they got any bailout money, but SunTrust Mortgage gave loans such as this and I believe they are not even using it for these loans as I have not been even paid for the lumber that went into this uncompleted project that will never rollover to permanent and it has been over three years! Three years and they remain silent of their Obligation of the Contract, let alone that we were supposed to receive the draw their purchaser(s) basically embezzled from us because although it went in their hands, it was money that belonged righfully to us and not to them. So, embezzled is a strong word and I believe it fits the situation here, but it is my opinion.
SunTrust recorded a construction mortgage and signed a Construction Loan Agreement, gave me a Commitment for my Contract and they didn't know we would be having lumber delivered to frame up the house! Are you kidding me! The Commitment was not even brought to trial because he filed a material supplier lien remember.
They stated they needed a Notice of a Right To Lien! That is an out and out lie but frankly a good strategy at the time to use on the unsophisticated attorney. They wanted us to sign a Stipulated Judgment releasing any claims against them because we didn't give them this notice. We didn't have to give them this notice. We signed our contract in June and they funded the loan in August. But regardless we didn't even have to file a lien as one was already in place and the Obligation charged against the Note. The entire trial was a waste of time. It was a purchase transaction and now a failed one at that. We are the sellers.
SunTrust needs to default these people, release my funds, and take a hike and let me finish this project. I do not know how they possibly think they can get the title to this property now because the land was used as collateral also! They pay off the Contract in installments and the Land in the First Draw and they get clear title when it is finished. It never will be now.
Fraud, fidicuary duty, negligence, you name it! It makes me sick.
The underwriters of SunTrust had no problem qualifying the buyer that when she moved four hours away she didn't even have a job! She was on unemployment but on the application it stated her making over $3500/mo. which was more than her husband! No job, assets a lie, and her husbands income was over-inflated as well.
I am finishing my Federal Reserve Complaint and I recommend anybody else who has dealt with this company to do the same should you have serious issues such as mine. Hire a good real estate attorney and save yourself the headache!
For the last three years I have learned everything I can about this situation because for the bank to have guaranteed payment (by depositing the proceeds into the escrow account) I could never quite figure out how it all tied together. I have learned a lot and hopefully will get my chance at the fraud claims against this company that my first lawyer failed to see.
It propbably would have been clearer had Stoel Rives not scared him so by being such a large law firm.
I have funded this project, I want paid and I will be seeking legal justice the moment they do anytrhing further to try and cheat me of my funds still remaining owed on this contract.
My recommendation is for these liars to be held accountable criminally for these activites. I will be demanding investigation of this particular transaction through the Federal Reserve Board (who have already been very receptive and just needed the documents).
Sick to Death of SunTrust Mortgage, Inc. and their underwriters, representitives, affliations who worked on this loan with Liana and Rusty Bennett Lot 2, 69748 Squire Loop, in Cove, Oregon 97824.
This report was posted on Ripoff Report on 02/20/2009 08:28 PM and is a permanent record located here: http://www.ripoffreport.com/r/SunTrust-Mortgage/Richmond-Virginia-23224/SunTrust-Mortgage-Serious-Fraud-by-SunTrust-Mortgage-Richmond-Virginia-426759. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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