We received a message from one of our followers yesterday evening that spoke to the sad state of affairs in our Industry. It paints a very ugly picture of what is happening today even with the hundreds of millions of dollars in pay raises from Fannie Mae, Freddie Mac, and HUD. And it should be noted that this is report comes on the heels of dozens of reports about a Prime Vendor slashing the volumes of Labor all the while proclaiming financial solvency. The reason we are withholding the Prime Vendor’s name is that we are finalizing other interviews we have conducted tying them to the use of Labor to perform bids and moving those bids over to a combination of W2 employees and potentially a pay-to-play scheme.
Hello Paul, hope all is well and great there!! [Redacted] here in shit hole, illegal crossing in El Paso Texas. Wanted to update you on what’s going on with [Redacted] here. Lawn maintenance ended in November 2023 and no new work orders have been ordered to date. So almost all properties are a code violation. All new initial properties since January 2024, only services completed are rekey and inspection. Nothing else addressed. Securing sheds, garage doors, no winterizations, broken windows, lawn/bushes/trees,debris etc. They wanted bids on all these services at each property and have never responded. Thanks, [Redacted]
The same is being reported in Jacksonville and throughout Florida, Alabama, Mississippi, Ohio, North and South Carolina, and sporadically throughout the Atlanta metro area. In fact, Counsel at this company confirmed the same for another entity which has been ongoing, for years. It is a story that is as old as time when it comes to our Industry and finally had a spotlight shone upon it in the Involuntary Bankruptcy of National Field Network. In a nearly identical fashion with the NFN case, here we have dozens of paper deals with firms like Fannie Mae, Freddie Mac, and LoanCare. Boots on the Ground Labor are sent in to secure the assets and submit bids. The bids are manipulated through Vendor Managers, whom are paid enormous bonuses, and are then bundled and sent out to firms whom agree to pay-to-play and W2 personnel. What is key to this is that it is part of a multi-year pattern and practice.
The surprising thing is that we have advised the Prime Vendor, multiple times, of the pattern and practice and have only been met with deafening silence. And while I have moved on to focus on web development and education programs, this type of activity is poised to pull me back in to the fold in a manner that is reminiscent of the forced bankruptcy days several years ago.
If you have a similar situation you are dealing with and would like a spotlight shone upon it, feel free to reach out to Foreclosurepedia using the NEWS TIP / OP ED tab at the top of the page and give us a holler. We protect your privacy and if so desired present options to take these criminals out at the knees, proverbially.
