FORECLOSURE SCANDAL: REAL ESTATE OPERATIONS SHUT DOWN BY COURT

Posted in Real Estate Foreclosures, May 19th, 2007 |

Austin Business Journal – 2.50 p.m. CDT – Friday 18^th May 2007

Texas Attorney General, Greg Abbott, states that an order of the 126^th Judicial Court has shut down an Austin based real estate organization. This has left many Hispanic house owners to face foreclosure . A permanent injunction prevents one Roberto Flores and his Galindo Trust from selling houses without disclosing that the many properties are already burdened with pre-existing liens. The defendants have been ordered, as per the regulations of Texas Deceptive Trade Practices Act, to pay more than $1.4 million as civil penalty for violating existing laws in this regard. Flores has to provide for compensation for the loss suffered by his clients due to his fraudulent schemes. He went about selling property without letting on about its encumbrances. Flores has also been charged for falsely leading his clients to believe that he was paying their property taxes and making house owner’s insurance payments. Actually he had stopped doing so and unwittingly the concerned people found themselves on the wrong side as regards taxes and premiums.

Abbott emotionally stated that at the heart of American dream is a house of one’s own. Consequently Texas would never tolerate those who exploit this noble sentiment for own personal unlawful gains. He added that the concerned authorities must strongly come forward to protect those who did nothing wrong in wanting their own roof above their heads.

SHRINER’S HOSPITAL:

Flores bought the property from the original owners who made mortgage payments through the trust floated by Flores – the Galindo Trust. Later Flores suppressed the previous lien and resold the property. In the fallout he ceased to make payments towards Shriner’s Hospital. Thus the property was facing the risk of foreclosure. The truth came out when some clients, who had likewise financed their houses through Galindo Trust, tried but failed to sell their property. It was only then that they came to know of previously existing loans. To them it came as a bolt from the blue. Shriner’s Hospital, which was till lately not aware of the underhand dealing, is now working with of the office of the Attorney General and Legal Services of Travis County to help the people, who had unwittingly fallen into this trap, recover their proper title deeds.
Via