Agent

Losing home to lender fraud

Law of the Land
Published on Oct 21, 2009

In the case Martin et al. v. Harpaz et al., homeowners Isaac and Lizzette Martin were building a new home and took out a series of construction loans to fund the project. The lender, Yair Harpaz of Private Investors Financing, claimed to have funded the third loan, but in fact only partially funded it.Because the third loan was never fully funded and the lender refused to cooperate with the homeowners' efforts to refinance the loans, the homeowners could not complete the construction and the lender foreclosed on the home despite the fact that the loan was not in default. At trial, the court found that the lender had intentionally defrauded homeowners by failing to fully fund the loan, incorrectly calculating interest on the loan, and improperly foreclosing on the property. Additionally, the loan did not comply with legal mandates for disclosures, and the lender had altered the loan documents after homeowners signed them.The trial court also found that the lender's fraud d...

Comments