Agents go to jail, DO NOT PASS GO!

Colorado = #1 in foreclosure, My Clients: ZERO Foreclosures.

That's right, we all know Colorado is the number one in the nation for foreclosures but shouldn't that be a sign to be more careful? Guess not! The "used car" salesmen of real estate are a majority of the reason consumers get into homes they really shouldn't be getting into. As I stated in my article "Closing Scams: Watch Out Now!", Real Estate Agents are collaborating with mortgage lenders to scam you out of your money. They do not care whether you are savvy to the balloon mortgage you just signed or whether or not you can pay your regular mortgage evey month. In essence, they are not looking out for you, rather looking out for their wallets. Since the foreclosures didn't open your eyes, maybe a lakewood agent getting 49 months in prison will.

Accoring to the Denver Business Journal, "Lakewood real estate agent William E. Mendez, 41, has been sentenced to 49 months in federal prison for illegally helping unqualified buyers to obtain home loans, government officials said Thursday. Mendez also was ordered to pay about $1.23 million in restitution to the U.S. Department of Housing and Urban Development (HUD). "

If that's not enough, most of his firm was indicted too! He was indicted in September 2005 and pleaded guilty in March.

According to the plea agreement, between 2000 and 2002 Mendez helped prepare more than 100 fraudulent home loan applications for clients that he and his employees knew were "illegal aliens" or otherwise unqualified to receive home mortgages.

HUD insured the mortgage applications through the Federal Housing Administration (FHA). Mendez also paid loan officers to ensure that the applications would be approved, according to the plea agreement.

Others indicted in the case include:

• Maria Lidia Baeza, sentenced to time served.
• Rogaciano Caldera, sentenced to 18 months in federal prison and ordered to pay restitution of $80,792 to HUD.
• Leonor Martinez, sentenced to time served and ordered to pay
• Patricia Soehnge, sentenced to 18 months in federal prison and to pay $41,734 to HUD with defendant Nicolas Lopez.
• Nicolas Lopez, sentenced to five years probation and to pay $40,984 to HUD with Patricia Soehnge.
• Claudia M. Mendez, who pleaded guilty and is scheduled to be sentenced on June 21.

Regards,

Jerome