A Self-Fulfilling Thing In Florida

[Crewleader]

The Orlando Sentinel reports from Florida. “A federal bankruptcy court this month approved the sale of 122 acres that were once planned for vacation villas marketed primarily to British investors. Starting in 2006, investors started filing complaints and suing British American Homes, claiming the Florida company took their deposits but didn’t deliver the homes. The development was marketed as a vacation haven in the booming Four Corners area, where signs for vacation homes dot U.S. Highway 27.”

“‘”I was in England three weeks ago. A lot of these folks mortgaged their house to come up with the down payment. Some of them are retired. It’s not easy for them,’ said attorney Nick Bangos, who represents about 106 investors.”

The Palm Beach Post. “The three women phoned Rodney McGill in hopes that he’d teach them how to get rich in a difficult real estate market. McGill seemed a bona fide success. He drove a Rolls-Royce, hosted a radio show and was pastor of New Hope Outreach Center in Jensen Beach. His wife, Shalonda McGill, was a mortgage broker. The McGills bought four homes in Martin and St. Lucie counties by submitting fraudulent loan applications, then flipped the properties to clients for outsized profits, investigators said.”

“Investigators said the McGills in June 2006 paid $210,000 for a home in Jensen Beach, according to property records. Three months later, they sold the property to Sharon Schofield for $365,000 - a 74 percent increase at a time when home values were falling.”

http://thehousingbubbleblog.com/?p=4942

[Beregond2]

1. How could anyone be dumb enough

to trust a pastor who also dabbles in get-rich-quick schemes?

[flvegan]

2. Wait..."took deposits" how?

These folks should have a Commitment and a HUD, and I'm going to assume British American Homes has a title agency license, or works with an agency. THAT is who they need to sue.

Oh, and that bankruptcy court isn't going to clear much but the monetary issue. The folks that in good faith bought land, still have a right to the chunk of dirt they bought. Glad I didn't underwrite this shitstorm.