The lure of "free" money

From the Bradenton Herald in Florida, we have Builder to help clean up Coast's mess.

Zanuel Johnson, an account executive at a Tampa mortgage company, said he closed in June on a home in Cape Coral being built by Enchanted Homes. The deal was brokered through Tampa-based American Mortgage Link, a broker involved in many of the CCI home loans.

Johnson claims he was promised a 10 percent return on the sale of the home without having to take ownership.

Instead, Johnson maintains, he now is obligated through a Coast Bank loan to pay $430,000 for the home - a price he says was inflated by those involved in the investment scheme.

Johnson's mortgage documents reflect a $43,000 escrow payment, though he insists he never put any cash down.

"They told me it was an investment program for people with good credit and assets," Johnson said. "They would use my credit to build a home and I would get a 10 percent return, because I would never take possession or move into the home."

Johnson said the home is mostly finished but he doubts he'll be able to sell it and accuses Enchanted Homes and American Mortgage Link of inflating the price.

"There's no way they could sell that house for $430,000. They have one listed for $349,900, two houses down from me," Johnson said.

How does someone so stupid wake up before noon?