I kept it pretty straight forward without the rhetoric most of you tune in each day for. You may read the Article here or down below. We get back on track with #OpNAMFS and the #BuczekEnterprises mission tomorrow. Sorry to see Amanda Buczek Lewis and Amanda Burke Buczek dropping their LinkedIn profiles in light of the exposure Buczek Enterprises has received in their inability to pay Contractors in accordance with their Contracts and multiple State’s laws. Hopefully, someone will forward the Article to them as I know they will be saddened if they miss a single word I type! 😉
One of the biggest problems plaguing the Mortgage Field Services (MFS) Industry; the Industry responsible for moving foreclosed properties from the Real Estate Owned (REO) Market to new owners, is the fact that there is no Regulation. Being a Small Business Owner and former MFS Contractor, I know full well the double edged sword of Regulation. Currently, there is no oversight other than the Consumer Financial Protection Bureau (CFPB) vis-a-vis their new found Dodd – Frank authority. This, in and of itself, is more geared towards regulating how mortgagers interact with mortgagees.
The Huffington Post, New York Times and a plethora of Drive By Media outlets have covered the atrocities which occur each and every day against homeowners. A great friend of mine, Hollywood Producer Patrick Lovell actually profiled the mess in a movie entitled Forward 13. To date, though, the only Media Outlet covering the MFS Industry itself, has been Foreclosurepedia.org — I am the Editor-in-Chief.
Now, I want to be very clear that I am not a classically trained journalist. I do not have the suave and debonair eloquence of the high dollar publications — I am a one man show living in a County with One Stop Light in rural East Tennessee. What I have found, though, makes even the most hardened within Organized Crime blush. To understand the MFS, you first need to understand how it works,
Typically, a Financial Institution or Portfolio Holder will hire a Prime Vendor to perform a service — it might be a vacancy inspection, lock change, grass cut or any of a thousand other line items. These are eventually 1099’d to the home owner and/or the US Government by and through FHA. Remember, these “contractors” generally have nothing other than a business license and additionally, the Order Mills I will speak of have NO LICENSES TO OPERATE in other states! This Work Order is then sent to an Order Mill whom then sends it to another Order Mill and several Mills later it reaches an alleged Contractor. So, right from jump, you have 70 – 80 cents on every dollar allocated to overhead. Brings back memories of the Red Cross back in the Liz Dole days, ‘eh?!
Nothing all that novel … yet. Now, herein lies the hustle. The Financial Institution pays the Prime Vendor whom in turn holds the money. They may or may not send the funds down the ladder. In many occasions, either the Prime Vendor or an Order Mill keeps the money and issues a Back Charge because a photo is missing. ALL OF THEM pad the bids of Contractors — what I mean is that they take a bid on letterhead from a contractor and submit it to the Financial Institution or the US Government and then only pay the contractor a portion of what the contractor bid the job for. This isn’t supposition, this is documented as high up as Senator Bob Corker’s Office and Shaun Donovan, Secretary of the US Housing and Urban Development.
Now, enter the Ponzi Scheme,
With no regulatory oversight; with no transparency with respect to financial solvency, many of the Order Mills (simply read on half a dozen Members of the National Association of Mortgage Field Services (NAMFS) I have reported upon) simply realize that for whatever reason they cannot pay Contractors in accordance with their Contracts. So, what do they do? They simply hire more Contractors.
While many business owners and voters alike may not have a bleeding heart for the Contractors, the reality is that the very same tangible real estate which pins the economic foundations of our financial system is in jeopardy. The wholesale fraud which has been unleashed over the past decade upon unsuspecting Contractors is now being fought back with the very real possibility of wholesale liens.
Most States render null and void, ab initio, any Contracts demanding Waiver of Lien. The Mortgage Field Services Industry feels it is above the law — NAMFS Members especially. Tennessee, where I live, is a classic example as our Governor signed Legislation outlawing this. For years, the MFS Industry kept Contractors at bay by bluffing them; the NAMFS Membership one and all, have banked upon this. Today, though, potential home buyers have no idea what they are getting into because of the lack of Regulation over NAMFS and the Order Milling process.
I am going to publish upon other issues which will strike fear into potential investors. Each and every one of the homes maintained within the MFS Industry which have mold will rarely be reported upon let alone treated. The MFS Industry term for mold is “Discoloration.” The treatment protocol? Some bleach and kilz. Methamphetamine or asbestos? Not even addressed. This is a long, dark Rabbit Hole you do not want to be in the dark about! Feel free to take a look at my reporting upon this nefarious Industry and spread the word at Foreclosurepedia!