Woman fights American Home Mortgage in court -

Full story: Newsday

When Paula Rush stepped forward in U.S Bankruptcy Court in Delaware to allege that American Home Mortgage had allowed its affiliates to market risky loans aggressively and ignored obvious signs of fraudulent ...
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1 - 20 of 85 Comments Last updated Oct 30, 2012
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Commie Stooge

Teaneck, NJ

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#1
Nov 2, 2007
 
I would be very interested to know just how many houses that Paula Rush bought and sold to make a profit.
Was she a speculator who was buying houses using borrowed money to quickly flip ina hot real estate market?
david

Hicksville, NY

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#2
Nov 2, 2007
 
tough sh-t for Paula. if your are in the biz of flipping houses, you should be aware of these types of practices. obviously a 1% interest rate is toooo good to be true and only a DOLT wouldn't research further.
former 520-er

Hampton Bays, NY

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#3
Nov 2, 2007
 
I can't believe Shawn Nuzzo is still talking to the press. GET A LIFE!
Colbert08

Haledon, NJ

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#4
Nov 2, 2007
 
Did she read the disclosures? "1% seemed like a good deal" Whenever something seems to good to be true it, it usually is. 1% is the MINIMUM payment on that type of ARM for the first year.
Realist

New York, NY

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#6
Nov 2, 2007
 
1%!?!?
I see no reason to care (or bail out) speculators. Especially ones that aren't too bright.
john coctoston

United States

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#7
Nov 2, 2007
 
This woman is a moron and is clearly just trying to get out of paying her mortgage. It is people like her who take loans they cant afford and are now defaulting that have ruined the whole industry. I hope she gets taken for all she is worth. Another nice job by Newsday by making news out of nothing. I guess no one fell in the gap today.
yahright

Burbank, CA

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#8
Nov 2, 2007
 
she buys and sells houses and thinks that a 1% rate is real. Who is she kidding. Hope she ends up paying the court costs also for this frivolous suit that should never have made it this far
susan

United States

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#9
Nov 2, 2007
 
only an idiot would have gotten an 1% ARM mortgage
Common Sense

Hackensack, NJ

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#10
Nov 2, 2007
 
More waste of court time... let me get this straight... she was buying and selling houses (Flipping)... everyone was making money... INCLUDING HER... and when the music stopped she wants to be the only one that doesn't get burned for playing the game? Think about in Honey... 12,000 employees at AHM lost their jobs... and countless THOUSANDS more at other firms, bank, and other associated businesses... and YOU'RE the vicim??? Get real... find a nice 3 bedroom ranch you can AFFORD and live life like the rest of us! WITHIN YOUR MEANS!
Anna

United States

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#11
Nov 2, 2007
 
Susan,

What about the idiots that originated these loans and in turn deceived the investors they sold them to?
Personally, if I was investing millions of dollars in a pool of mortgage backed securities I would check out the terms of the loans I was investing in.

I think the idiot was AHM think they could switch and bait borrowers then scam the investors.

They simply got caught with their pants down.

Realize that these mortgage brokers solicited homeowners to get them into these loans. And did so very agressively.

Let the FBI determine who is wrong - when Strauss & Horn get haulded off in handcuffs then you have the right to an opinion.
Anna

United States

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#12
Nov 2, 2007
 
Former 520-er,

Were you in the building that did the file scrubbing or the building that did the cutting and pasting????
George

Wappingers Falls, NY

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#13
Nov 2, 2007
 
WHHHHHAAAAAAAAAAAAAAAHHHHHHHHH HHHHHHHHHHHHH.

WHHHHAAAAAAAAAAAAAAAAHHHHHHHHH HHHHHHHHHH.

love it when someone who flipped real estate cries about her ONE PERCENT mortgage. so many idiots out there and so much to be made on their stupidity....
susan

United States

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#14
Nov 2, 2007
 
Anna
goes without saying that the people who originate these loans are scum, I don't understand how anyone can be temted by this-or fooled, then cry about it later on.
Anna

United States

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#15
Nov 2, 2007
 
Susan,
I remember years agao when the rates started falling lenders offering 1 year ARM with 1st year rates as low as 1.5%. These loans were simply adjusted yearly and the first year adjustment was based on the note rate, not the acutal first year rate of 1.5%. And the true 1st year not rate was tied to an index.

I have wondered if the people that got into this pay option ARM program were thinking that is was one of those 1 year ARM's.
The other safegauard with that program was that the borrower had to qualify for the 1st interest rate adjustment, which averaged 6%, so borrowers weren't put in loans they didn't qualify for.

I spoke to quite a few reputable mortgage bankers and brokers that told me they wouldn't consider originating this pay option ARM.

A borrower of AMH that is a friend of mine told me a few months back that she needed to refi out of one of their 3/1's and they put her thru to their refi department at their servicing unit and was given a sales pitch on the pay option ARM. Offered her a pie in the sky. And when she refused they told her she could only get a 7.75% 30 year fixed being annoyed with her. And she had good credit.
She ended up going to Wells Fargo and getting 6.5% 30 year fixed.

It has become apparent to me based on all I have read about this company that they were foxes in sheep clothes.

Sadly, the public assumes that Mortgage Brokers are more regulated than they are, so they trust them.
susan

United States

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#16
Nov 2, 2007
 
Anna
most mortgage brokers can't be trusted as far as you can throw them! I really do feel sorry for people who are taken in by them-I almost did but stood my ground-and it worked out for the best.I hope all the scammers are suffering now!
Lee

Toronto, Canada

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#17
Nov 2, 2007
 
We have only the clothing on our backs and another set for change. We have been hardly eating and using all money for a safe environment for our child who the bank made homeless. We lost our jobs because the bank defrauded us and stole our home. Our two pets may be next to go--our child's only best friends. Bank took us from a family with a good job,(husband ran for city councillor in 2006) a 2600 sf beautiful home with beautiful furniture to NOTHING!!!--bank threw it all in garbage to destroy ouf family life! THIS COMMING FROM A BANK WHO REFUSED TO TAKE PAYMENTS FROM US- DOCTRINE OF ESTOPPEL SHOULD APPLY HERE. Bank instead pulled dirty tricks and didn't want us to fight on fair ground.
Bank stole our home after we were victims of mortgage fraud twice. Bank was the last and 3rd in line to commit a fraud against us. Bank used a "Ghost Lawyer" to ok their documents to take our home without us ever knowing it Oct 2006. Our names were on title and bank used slimmy tricks with ghost lawyer to steal our home.
Recently after we were evicted, paperwork in late July 07 revealed bank used ghost lawyer on our behalf to finalized the fraud. This lawyer with the same name said on fax, he never went on record and never corresponded with the bank / legal firm.
Oct 2007 while we are fighting this mortgage fraud on our home by CIBC and PC bank, both banks completely destroyed evidence against them in our home. Our belongings were put in garbage dumpsters--all neighbours including our child's friends saw her toys and all go in dumpster! Everyone was afraid to say anything --afraid of bank.
Ironically this bank set us up, told us in Aug 06 they were not pursuing us and then in 2007 evicted us with a lawyer who denies their accusation. The bank used a "ghost lawyer" and the system is allowing this.
Ironically also we got title insurance and it showed no mortgage in Jan 2006. In April 2006 when cibc and pc bank came after us, the same lawyer who sold us stewart title insurance promised us he would file a claim. We called him about the fraudulent mortgage, he took information and instead reprinted a policy favouring CIBC mortgage on our home--he told us to destroy the original policy!
Now we have hired a lawyer since July 2007 and we are starting to not believe any lawyer (s) will fight the banks--our belongings and our home and family is ruined-destroyed. How do we keep our family and two pets together with so much pain and no hope in the legal system? Note, our money was refused by the bank...doctrine of estoppel should apply. Our child has environmental illness and shouldn't be out of home -home educated all her life. As I write this she is down--she collapses and cannot wake up till late. Her body takes time to heal. The bank didn't even have her in the eviction paper! How do we trust a system that favours the big banks? We are worst than sad... Lee family in Brampton, Ontario, Canada. If you can help please send email to mortgagefraud@gmail.com
shut up

Huntington Station, NY

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#18
Nov 2, 2007
 
Anna wrote:
Susan,
What about the idiots that originated these loans and in turn deceived the investors they sold them to?
Personally, if I was investing millions of dollars in a pool of mortgage backed securities I would check out the terms of the loans I was investing in.
I think the idiot was AHM think they could switch and bait borrowers then scam the investors.
They simply got caught with their pants down.
Realize that these mortgage brokers solicited homeowners to get them into these loans. And did so very agressively.
Let the FBI determine who is wrong - when Strauss & Horn get haulded off in handcuffs then you have the right to an opinion.
she wasn't deceived, the whole idea is to flip and get out...before the rates rise, then when she couldn't sell the house she was screwed, her fault...she probably did this a few times to her advantage...now its time to pay the piper...she won't win...stupid woman
Anna

United States

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#19
Nov 2, 2007
 
Susan,

how do you know she wasn't deceived? So you know this person? Thousands of homeowners were deceived by these pay option ARM's. It is all over the news. It is referred to as the "neutron bomb" loan.

I have empathy for people that have these loans and trusted unwothy loan officers.

The average consumer doesn't understand fully negative amortization. It doesn't mean they are stupid, it means that the loan officer didn't bother to run a schedule of what their payments actually were.
They gave the consumers the impression that they were truly going to be paying 1% to 2% for a set period of time.

The other thing these lenders didn't do was provide the 5 year history of the LIBOR to show the consumer what to expect.
I asked two friends that have made millions in the stock market if they knew what a LIBOR was and they both said no.

I have been following this mortgage crisis for awhile. We all have because our property values have decreased severly because of it.
And, sincerely, in my humble opinion I think 90% of the people that took out these loans got rooked.

Sadly real estate settlements are scheduled for one hour. This doesn't give any body enough time to read one 10th of the papers they have to sign. 45 minutes of the settlements are literal signing. And the attorney or title agent brushes thru the forms and explains what they are in basic terms. And they are trusted also.

When I read about families lossing their homes, and the humiliation they experience and the trauma of their children my heart goes out to them. No one would intentionally inflict this on the ones they love. And would avoid it at any cost.

I cannot wait for the day when to scum buckets at AHM are hauled away in handcuffs.
I send old Straussy a big cake to enjoy in his little dirty cell.
And maybe bid on his house when it is foreclosed on. Wouldn't that be a joyous day?
And Horn right behind him.

Paula Rush

Baltimore, MD

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#20
Nov 2, 2007
 
Rocket Dog wrote:
No sympathy for her. She sounds like one of those speculators that helped fuel this whole mess and drive up the price of houses and got caught in her own game. Have fun in bankruptcy court.
For your record I was not a flipper, I sold my personal residence twice and am in the third house I bought. I was taking advantage of the two year capital gains exemptions and used this to live off of because I took care of my father for nine years after he had a stroke. He had dementia and I couldn't leave him alone to work a full time job. He died last year. So before you make assumptions based on things you know nothing about, you should not make judgements. I simply was saying in the interview that I bought into the same market hype everyone else did. We are all now in houses that aren't worth what we paid for them. I now know that I, like many others did not understand the market was basd on a PONZI scheme orchestrated by the lenders who sent hordes of buyers into the market with five times the amount of funds they should have had. Now you know the rest of the story.
Had enough

Cresskill, NJ

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#21
Nov 2, 2007
 
Paula Rush wrote:
<quoted text>
I sold my personal residence twice and am in the third house I bought. I was taking advantage of the two year capital gains exemptions and used this to live off of.
FACE IT YOUR A FLIPPER.. You made money on the buy and the sell of your houses.

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