Jury to Hear Mortgage Fraud Case

Countrywide Home Lending is not a normal plaintiff in mortgage fraud cases. But an Indiana man, and two small town accomplices, is being sued by the mortgage giant after a fraud case left more than 100 homes in foreclosure. A federal grand jury will begin to hear the case the first week of November, while subpoena was issued to research the man’s actions going back two years after more complaints against him were discovered.

The case was blown open after some victims of the fraud attempted to refinance the homes. The victims were encouraged to allow their credit to be used in what was presented as an investment. The man then used appraisers that inflated the value of the home, allowing more money to be borrowed for the properties. The conspirators then left the unknowing victims responsible for large mortgages, when they had not consented to purchase the properties. As more victims came forward for foreclosure counseling or in attempts to refinance the properties, authorities were brought in the fraud was exposed.