Archive | Calumet Township Assessor RSS feed for this section

Mortgage Fraud Collateral Damage/More mortgage fraud convictions…

21 Nov

Submitted by Gary Free Press

The following post is in response to the sentencing of Jeffrey Youngheim, owner of Property Liquidators in Gary, Indiana. It was provided to the Gazette by Gary Free Press and is reprinted in its entirety.

While the Judge in the case identified that mortgage fraud hurts lenders and the community as the homes go into foreclosure and sit empty, what he did not mention, and may not even be aware of is another way all of these mortgage fraud schemes have done horrible damage to the Gary community.

During the height of the mortgage fraud binge in Gary; which included certain individuals formerly employed by the City of Gary—at least one of them a department head—all of these characters were flying high. They created a false bubble. They kept inflating the “values” of these homes in Gary, these homes that were the grist for their scheme.

But the actual real estate market in Gary was declining. Actual market values were plunging downward, yet these scammers kept submitting these fake and fraudulent sales to the County. Pretty much the only homes that were selling–besides all of the stuff being sold on tax sales, were from this group and many of the other groups plying the mortgage fraud schemes in Gary. Remember Jerry Haymon and his crew? The sales information from these mortgage fraud sales were about the only information for sales there was in Gary. So when the Calumet Township Assessor developed their trending ratios (the basis for raising the assessments) from sales disclosures, this is all they had to work with. But they were all fake! The few legitimate sales would have shown declining values.

So here is where the problem came in: the Calumet Township Assessor, instead of actually assessing property properly, uses the data from all of these fraudulent transactions as a basis to determine trending ratios. To them, it seems that the Gary housing market is on fire, but in reality, in is dead on arrival. So they apply this falsely derived trending ratio to all of the properties that aren’t part of these fraud schemes. What happens then? Assessed values of property in Gary doubles, triples, quadruples, and then some! 6000 appeals pending! Up to 13,000 Gary properties listed on tax sales! Everything is screwed up royally!

So why then, now that these schemes have been all been exposed, don’t they (Calumet Township Assessor) admit their mistakes? When will they take responsibility for all of the damage they have caused by using the bad data these frauds generated? Unfortunately, it is too late to undue most of the damage. People have fled the city. People just walked away from their properties. They had no choice; they couldn’t afford to hang onto them any longer. Now we learn there are 10,000 abandoned homes that need to be demolished.

All of these disastrous conditions can be directly linked to these mortgage fraud schemes.

The Judge was right, these schemes were very damaging to the community; but the greatest damage and the greatest harm to the Gary community was caused by the Calumet Township Assessor’s mistakes.

And now, we are supposed to worry about these two defendants being inconvenienced by both being in federal prison at the same time? They were an integral part of the broader conspiracy that helped to destroy this city. They do not seem to be good candidates for sympathy.