• Report: #65537
Complaint Review:

The Home Loan Center

  • Submitted: Sun, August 10, 2003
  • Updated: Sun, August 14, 2011

  • Reported By:Detroit Michigan
The Home Loan Center
29777 Telegraph, Suite 3550 Southfield, Michigan U.S.A.

The Home Loan Center ripoff fraud business Part of a scam called property flipping. Southfield Michigan

*REBUTTAL Individual responds: Prove your case The rebuttal to Darnell Jones false accusation.

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The Home Loan Center has taken part of a scam called property flipping and they will be prosecuted as I have contacted the State of Michigan and the FBI who is very interested in these practices.

A little over one year ago I met an investor, David Hawthorne, who sold me two investment properties, and with the help of The Home Loan Center, who acted as the mortgage broker, my loans were approved.

The Home Loan Center did many things illegally, but the most criminal was them obtaining fraudulent appraisals. Although licensed by the State of Michigan, Elizibeth Livingston, grossly exaggerated the market value of the properties. One house worth $20K was appraised at $70K and the other worth also about $20K was appraised at $55K.

The Home Loan Center then obtained loans from New Century Mortgage and First Franklin, each at a high interest rate. The out of state lenders, having no knowledge of the Detroit neighborhoods have now become victims as well having shelled out tens of thousands of dollars for properties worth less than half the loans.

I quickly realized I had been taken when both homes began to fall apart. I stopped making payments about 6 months later and began to research the illegal practice of property flipping. As it turns out, the properties were purchased by Mr. Hawthorne for $20K each only a few months prior to my purchases. I know this because I ran a deed search on both properties. No repairs were made and I was suckered into buying the properties. They took advantage of me being a first time home owner.

Although David Hawthorne is probably the biggest crook and made off with the most money, The Home Loan Center certainly played a major part in the scam.

How is it that someone who makes $35K per year could be approved for two home loans worth $110K? Why is it that although I never put any money down it shows so on both settlement statements? Why did the HLC used two lenders and want simultaneous closings? Why was it insurance was not obtained although it is required prior to closing? It's because the HLC are crooks, that's why!

Detroit, Michigan

This report was posted on Ripoff Report on 08/10/2003 09:37 PM and is a permanent record located here: http://www.ripoffreport.com/reports/the-home-loan-center/southfield-michigan-48034/the-home-loan-center-ripoff-fraud-business-part-of-a-scam-called-property-flipping-southf-65537. 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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#1 REBUTTAL Individual responds

Prove your case The rebuttal to Darnell Jones false accusation.

AUTHOR: David - (United States of America)

This is a response to the disgruntled client Darnell Jones of falsely accusing and, slandering my name as a businessman. Darnel was referred to me by a friend of mine (I did not sought him out); our mutual friend expressed to me that he knew someone that was interested in purchasing some income/investment property and at the time I had a couple of homes I was trying to liquidate, and the Home Loan Center offered a program that would finance potential investors that qualified for multiple property purchase, Darnell qualified. He (Darnell) asked in his Ripped Off report how can someone who makes 35k a year afford two homes that were valued for 110k? Thats because he is a fully grown man with no wife or children living with his mother, and has a 401k plan and no expenses, as well as the total purchase price being 20% less than the actual value, THATS HOW. Also the appraisals were ordered through the bank along with an appraisal review, so not only did the bank send out there own appraiser they also sent out an appraiser to confirm the numbers were correct from the first appraisal, and they were, but Darnell let his ignorance get the best of him.  
When I first met Darnell I expressed to him all of the ups and downs associated with owning property in the city Detroit, the details of the process, and the exit strategy if he choose not to proceed. After everything was explained to Darnell he decided to move forward, and one of the main reasons Darnell decided to move forward was because in the program he did not have to pay any of the cost related to first time home buying, as well as he received $10,000 cash rebate towards any repairs that needed to be done on either property (which he conveniently did not mention in his Ripped Off report).
I have bought and sold property in the city of Detroit since 1991 and never had any problems until I met the immature Darnell, he has had the FBI contact me and after I explained the situation to them, the agent told me that they will discontinue their investigation (this can be referenced with the State of Mich. FBI). No one ever forced Darnell to go through with the deals, and he even signed a document confirming his mental status was clear as well as there was no duress with his decision to purchase (so whos the real crook). Everything in this statement can be referenced.
Our mutual friend told me that whenever he would talk to Darnell about the issue he was drunk and complaining about the problems he was having as a new investor (things I had already explained to him). So I contacted Darnell and met with him at the Home Loan Center to resolve his issue, but the representatives of the HLC did not care about his issue, ever since he has been adamant about destroying my credibility, and not taking any responsibility for himself. The real problem with Darnell is that instead of reinvesting the money back into the properties (like a wise businessman), he blew the 10k on drinking and debauchery, and now he is acting like child because he has been living with his mother for so long that he doesnt know how to take responsibility for his own actions. What Darnell fail to realize is that he SIGNED the documentation and now he is obligated to comply with the terms and conditions set forth, (but he was too weak), instead he prefers to point fingers like children.
 IT IS NOT ILLEGAL TO SALE HOUSE!!!!! TV networks have dedicated an entire show called Flipping Out to flipping homes, when all parties consent (as in this case) it 100% legal to flip a house. When you work in the service industry you can not please everyone, and one may encounter a bipolar client such as I have in the case of Darnell and the HLC. So be careful about the people with mood swings, especially Darnell Jones who resides with his mother in the area of Detroits west side.  I am current compiling all the of the slanderous information Darnell is putting out, and much to his surprise he will find himself in court facing a lawsuit for his reckless behavior. Furthermore I will comply with any request made by Ripped Off to prove that my company operates ethically and with integrity. Anyone who has any question about these false accusations on the part of Darnell can reach me at 248-251-2150.        
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