Galloway and Collens, PLLC
We are here for you during the COVID-19 emergency.
Please call 248-284-1990 to reach our receptionist or fill out the contact page of our website and we will be in touch.

FBI raid on Michigan realty firm uncovers Freddie Mac troubles

The real estate firm Elias Realty, located just to our south in Livonia, has found itself in hot water this month after the FBI issued a search warrant on their offices a week ago. Although the former state attorney general representing the firm in the case is confident that the FBI will find no wrong doing, it has stirred up many of the problems the company has been having with Freddie Mac over the course of the last few months.

When the FBI first issued their search on the office, little was known about their reasoning behind the search; but after some investigating, former state Attorney General Mike Cox discovered that the search was a result of a complaint filed by the Federal Home Loan Mortgage Corp., also known as Freddie Mac. The complaint accuses Elias Realty of committing fraud by allegedly hiding the fact that some of his clients had already purchased second homes while performing a short sale on their first property.

In a letter sent to Elias Realty on Oct. 1, Freddie Mac alleges that borrowers were instructed to purchase a new home "prior to applying for short sale assistance on the Freddie Mac loan" and also claims that many borrowers' inability to repay their loans was "not genuine."

Elias Realty and it's attorney disagrees pointing out that they have done nothing wrong and are simply following the rules passed down to them from Freddie Mac. Cox points out that the stipulations for a short sale do not prohibit a homeowner from purchasing a second home. This is especially true for people moving for a new job or military service that do not qualify under Freddie Mac's short-sale standards for hardships.

At the end of January, Elias Realty filed suit against Freddie Mac after being placed on the exclusionary list. Because of the blacklisting, Elias Realty has lost nearly 500 clients and left many more frustrated with the constant road blocks associated with selling their homes as a result of the feud between the mortgage lender and the real estate firm.

Although Elias Realty's attorney is confident that the FBI will find no wrong doing on his client's part, the recent real estate litigation that his client has had to endure as of late could have detrimental effects on his clients now and in the future.

Source: The Livingston Daily, "After FBI raid, charges not likely for Elias, says former state AG," Karen Smith, Mar. 4, 2013

No Comments

Leave a comment
Comment Information
  • Sterling
  • dbusiness - Top Lawyers
  • SuperLawyers 2019
  • Rainbow Image
  • Senior & Caregiver
  • ICLE Contributor
Email Us For A Response

Contact Our Metro Detroit Attorneys

Our law firm is ready to help. Contact the real estate and estate planning attorneys at Galloway and Collens, PLLC, by calling 248-284-1990.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

This site uses Google's Invisible reCAPTCHA, which is subject to Google's Privacy Policy and Terms of Use.

26075 Woodward Avenue Suite 200 Huntington Woods, MI 48070-1341 Phone: 248-284-1990 Fax: 248-545-2520 Huntington Woods Law Office Map