HUD FHA consumer fraud political corruption victimized many consumers Washington District of Columbia

HUD (parent company of FHA) does not do a thing to help consumers. (Unlike what they WANT you to think.)

They advertise the "American Dream of Homeownership", but in reality...they "allow" con artists and thieves to continue to do business through the FHA program....all the while advertising some "new" protection that just went in to effect..."to protect the homebuyer".

Even when buyers prove to HUD that fraudulent activities have occurred...the HUD employees sit there and do NOTHING.
Here is a good example of how HUD deals with fraudulent crooks, within the FHA program:

In one case...they gave a temporary suspension to a crooked home builder (who has ripped off thousands of buyers.)...but somehow, this builder CONTINUED to sell houses through FHA, even during the time he was "sanctioned". Another scenerio involves a case where an inspector (who did not even check a house, but let it pass the inspection anyway)...he was given a 2 1/2 months "sanction" if he would attend 16 hours in a classroom."
(Even during this time...the inspector had already been sanctioned in two other cities (involving FHA), and this man inspects houses for FHA in more than one state !!

And here is a typical case...that comes through the FHA program...that HUD is sitting there not enforcing:

This company Tom S. & Sharon Redus, d.b.a.
HOMEVESTORS/Redus and Company, INC., Gainesville, TX.
(Who is fond of using American United Mortgage Co., Dallas, TX. & MIT Lending Co., Dallas, TX. - as one of their "lending companies of choice" to put these houses through)

are now being sued, at the present time, for the same thing they have done to MANY home buyers:...lying at the showing of the house. (this is new, that is new - when stuff doesn't even work !!); selling a "known" deficient house without disclosures; promising to fix things with the house (before closing) but never do; They have even stated to buyers, during the showing of the house that: "We are licensed real estate agents." (Texas Real Estate Commission has stated: "These people are NOT licensed in real estate, and if you have some proof that they are saying that...then we can prosecute them." (They cannot prosecute on an oral comment, evidentally.)

The sellers have even sold houses with black mold: that had been vacant for two years (because the previous owners HAD to move, due to serious medical complications due to the black mold.); another case involves them selling a house worth $ 0.00 - $20,000, for $58,000 when in FACT...the house needs $95,094.71 in repairs (so the house is in reality worth (-) $ 0.00 (the house would never be worth...what it would take to fix it.); The sellers, Redus and Company, Inc...are then getting the lending company, appraiser, and inspector...to go along with their dirty deeds (Payoffs involved ???)
The whole racket is what is known as: "Fraudulent Property Flipping". (See court case record below.)

Homevestors states to their franchise owners:

On the Homevestors website, (on the "Ken's Corner", which is an article put out by Ken D'Angelo...Homevestors' founder): Mr. D'Angelo stated THIS to the franchise owners:

"You don't have to repair it (the house) and it can be done as a flip. Now there's something you've never heard of before, I'll bet. You can sell as is and do the financing. You will have 0 closing costs."

*** NOTE: In most states (I know it's true in Texas): "In Texas, if a seller sells a house "as is", they must STILL disclose problems of the house, on the Texas Seller Disclosure statement."

If other consumers in the Texas (or other states) areas have been ripped off by this same company...please step forward.:

(This court case involves: selling a deficient house without disclosure, fraud, breach of contract - (This IS the mold house):

(XXX) vs. REDUS & COMPANY INC.

1Causel# 2002-11421-16 Status Filed

Court 16th Judicial District Court Type Accounts, Contracts, and Notes - District Clerk

Date Filed 11/12/2002

In the 16th Judicial District Court

Denton County, Texas

Cause No. 2002-11421-16


(XXX) VS. (Tom S. & Sharon Redus) REDUS & COMPANY INC


Filed on 11/12/2002

Case Type: Accounts, Contracts, and Notes - District Clerk

Court Costs Paid: $168.00 Due: $0.00

Current Status: Filed

Defendants

Defendant Attorneys

Redus & Company Inc

BY SERVING REGISTERED AGENT, TOM REDUS

5 RIDGE DRIVE

LAKE DALLAS, TX. 75056


(Attorney) Jester Jr, Tom D

P O BOX 280

DENTON, TX 76202

Plaintiffs

(XXX)


Attorneys

DENTON, TX. 76209 Hansen, Eric

101 S. WOODROW LANE, STE. B

DENTON TX 76205

(XXX - wife)


DENTON, TX. 76209 Hansen, Eric

101 S. WOODROW LANE, STE. B

DENTON TX 76205

Events and Orders of the Court

----------------------------

01/02/2003 DEFENDANT'S ORIGINAL ANSWER

REDUS & COMPANY INC 12/17/2002 CITATION RETURNED SERVED

TO REDUS AND COMPANY INC 12-14-02

11/12/2002 PLAINTIFF'S ORIGINAL PETITION

---------------------------

We have personally also filed complaints about these con artists...with the Texas Attorney General's Office, the F.B.I., the U. S. Justice Department, U. S. Senator Kay Bailey Hutchison, President Bush...and many other agencies.

All of these entities simply tell you: "contact HUD/FHA". What they don't realize is...HUD/FHA is "allowing these scenerios to happen...they, too, will not enforce their OWN rules, guidelines, policies, and procedures.

***** Which includes the HUD "Accountability to the Lender" which states:
"If problems arise after closing, that repairs were not done or that the house was overvalued, it will be up to the lender to either pay for the repairs or pay down the mortgage to the actual value of the house."

...."HUD issued mortgagee letters to lenders that reiterated its policy that lenders were equally responsible for the quality of appraisals. HUD's Deputy Assistant Secretary for Single-Family Housing also instructed HUD staff that in cases in which appraisers missed serious repair conditions or significantly overvalued properties, HUD should request that the lenders who selected the appraisers pay for the needed repairs or pay down the mortgages by the amounts the properties were overvalued. and...
The Deputy Assistant Secretary also indicated that the failure of a lender to voluntarily resolve the appraisal deficiencies raised by HUD would result in enforcement action against the lender, including probation and suspension."

----------------

During Fraudulent Property Flipping schemes, appraisers are "knowingly" overvaluing the house at an already "pre-determined amount" (this is also done because the lender threatens them with - "no more work, unless you do it", etc. - honest appraisers have stepped forward & told that this happens); using comparable houses (for appraising) in which they are not comparable at all (and some of the comparables are not even in the same city, as the house being sold !!! (but are in fact...10 miles away); the appraiser is not disclosing major deficiencies with the house;

Then...the crooked FHA inspector comes in...states all repairs have been done and that "the house meets HUD minimum standards"; he ALSO does not report the major deficiencies, and lets the house pass.

EVERYONE involves then lines their pockets with money. (The lender also gets money in their pocket...everytime a house is involved.)

The homebuyer, in turn...ends up with a very deficient house - all due to these fraudulent idiots who are involved in Fraudulent Property Flipping.

Then...half the attorneys around here are also involved because they won't take these cases, but they do say: "I won't take this case, because I have friends in FHA." (These attorneys are the ones who buy & resell real estate on the side.)

It's fraud and corruption from the bottom of the step of the ladder, all the way to the top. THAT is how these Fraudulent Property Flipping sellers are getting away with this crap.

Fraudulent Property Flipping is on the rise, and even though government agencies keep advertising "regulations to help the homebuyer (consumer)" - the fact is...NOONE is enforcing these regulations.


It's time that all consumers stand up and say "We aren't going to take it anymore. Throw the d**n crooks into prison, and throw away the key."

http://www.e-thepeople.org/a-national
/petition/5144/view

Note: One HUD official got busted for...excepting over $80,000 worth of bribes, and accepting a new Ferrari. (You can find information about this case, on the internet.)

Our tax dollars at work...

There have also been billions of dollars "disappear" from the HUD program...and our own government cannot even figure out where the money went. (You can find the info. on this, on the internet.)

Thank you,

Billie
Denison, Texas
U.S.A.