Babur Lateef's Foreclosure Draws Suspicion
Democratic candidate for Prince William County chairman, Babur Lateef, is under scrutiny for a 2010 foreclosure of his $1.2 million estate.
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Editor's note: This is the first in an ongoing series about Democratic candidate Babur Lateef and his campaign for Prince William County chairman. Lateef and Independent John Gray are challenging incumbent Corey Stewart.
About six months after county chairman candidate Babur Lateef saw his $1.2 million estate in Manassas auctioned off in a foreclosure, he started pumping thousands of dollars into his campaign.
Lateef, the Democratic challenger for the county chairman post, said that his business, Advanced Ophthalmology, was in hardship because of the economy and that he didn't have much choice but to lose the home. He said he was mostly getting patients for only eye exams and the number of people who came in for more expensive care, such as Lasik surgery, dropped.
Yet, less than a year after the home was auctioned in April 2010, Advanced Ophthamology became Lateef's top donor at $10,533. Lateef also loaned $10,000 of his own money for his campaign since the foreclosure.
But Lateef didn't lose his home.
A year before the foreclosure, Lateef's wife, Tarannum, had her named removed from the deed of the $1.2 million family estate.
Najia Shakoor, who is Lateef's sister-in-law and a doctor at Rush University in Chicago, bought the house for $612,000, half of what Lateef bought it for in June 2006. She paid in cash. Shakoor now rents the home on Chaddsford Terrace to Lateef, 39, his wife, who also is a physician, and their four children. Shakoor did not return phone calls Wednesday or Thursday to comment.
Lateef also owns his business office, his wife's doctor's office and another home on Monument Avenue in Belmont Bay that he bought in June 2002 for $314,000 that he uses as a rental property.
"During the recession, there were times I couldn’t rent [the Monument Avenue house]," Lateef said. "There were months where I was eating the mortgage on both of the houses. I couldn’t keep up with the payments."
Lateef said he is blessed that he has a family that stepped up to help him out of a sticky situation. He said he was trying to work with the bank on a plan to keep his house but the foreclosure continued on anyway and he went with a decision that affected the least number of people.
"I never let go of any of my employees, never furloughed anyone and I never cut any hours," he said. "I maintained my staffing at the expense of doing what I had to."
Lateef said he was able to loan his campaign money and his business chipped in because his business finances are improving.
In a review of all three candidates' land records, only Lateef's show financial troubles. The Washington Post was first to mention Lateef's foreclosure in a blog post about Lateef's announcement that he would be releasing his platform.
People, including incumbent County Chairman Corey Stewart and independent challenger John Gray, are still questioning how a family of doctors could lose a home to foreclosure, while owning more than $1 million in local commercial and residential property and still holding jobs.
Gray, a CPA for more than 30 years, said what Lateef did is called a "strategic default," a legal way of walking away from a mortgage—but Gray stressed that it's not very ethical.
"I find it incredibly hard to believe that two doctors' medical practices were so devestated by the recession that they had to default on their home," Gray said. "Until he can provide his tax returns, I don't believe it for a second."
Lateef declined to release his tax returns, saying he was not sure the documents will show why he decided to foreclose on his home.
"Things are getting better. What I went through was extremely painful and I have worked my tail off to make things better than it was," he said.
Lateef's campaign has been active early by sending out press releases criticizing Stewart and challenging him on news articles about Stewart considering a run for U.S. Senate.
Lateef said he does not think this campaign should be about his financial woes last year, and he criticized Stewart for making accusations about someone "he has never met or ever spoke with" and for attacking a political newcomer. He said the foreclosure and the business troubles make him a better candidate because he can understand and sympathize with county residents who continue to struggle.
"Ask [Stewart] to stand on his own record. There is nothing to stand on," Lateef said. "The election really isn’t about me or my own personal problems. It is about what the taxpayer deserves and what the hurting county residents need right now."
Gray said Lateef's suspicious foreclosure is a campaign issue and that he should prove that his reasons are true by releasing his tax records.
"He thinks this qualifies him to be the financial leader of the county?" Gray said.
Stewart has been touting his record as county chairman, and his efforts to combat illegal immigration in Prince William County, but they are accomplishments that Lateef isn't fond of at all.
"He’s already shown that he has poor financial judgment," Stewart said about Lateef. "I think, frankly, his campaign is over. Obviously if you can’t manage your own finances you can’t manage the county’s finances."
A piece of Lateef's platform is that he would like to see the Virginia Foreclosure Law changed to expand the 14-day window in which a bank must notify a borrower of a foreclosure sale to 45 days. Lateef said he didn't have enough time to work out a plan to keep his house with the banks before he was notified of the foreclosure sale.
Stewart said he doesn't feel sorry for Lateef. "There are people out there who are hurting and are unable to make their payments," he said. "I feel sorry for them."
"There is no county policy regarding banks and foreclosure," Stewart said. "This is his problem: He doesn’t understand how the county works. Mortgages and foreclosures are regulated by the federal government. There is very little the county can do other than educate residents on what they can do to manage their finances. We work with Virgina Cooperative Extension in a program to help prevent foreclosure. At the end of the day, his platform is irrelevant."
Lateef said overspending has nothing to do with his foreclosure and he doesn't want to see his past personal financial troubles overshadow the real issues in Prince William County, such as improving education, increasing job growth and finishing key road projects. Lateef said he would bring new, young leadership to the county board and rebuild the county's image that Stewart has damaged for mostly ignoring the important topics until an election year so he can make as many national headlines as possible with hyperbolic messages about illegal immigration.
"Do you want a leader who in a rough time is going to be able to make the choices that are best for the vast majority of people or someone who promotes things detrimental to the entire county?" Lateef said.
Editor's note: The final part of this series will present each candidate's background and platforms.
Correction: A previous version of this article incorrectly had the locality in which Babur Lateef's townhouse is located. Babur Lateef owns his office and his wife's office. A previous version of this article was not clear on what he owned.
Susan Jacobs
6:42 pm on Thursday, May 12, 2011
This makes me sick
Dave
1:00 am on Friday, May 13, 2011
I wonder how many people actually relize that almost all ( I actually do not know of one that will) banks WILL NOT SELL A FORECLOSURE TO A RELATIVE OF THE PRIOR OWNER. They usually make the buyer actually sign a form to that fact. (Ops, did that slip out?) I am not a lawyer and cannot practice law or give legal advice but does it appear that someone could actually have deliberately, knowingly and willingly broken the law? I have to also wonder if the Bank, HUD and state atorney general might be interested in this transaction . They might find it suspicious or think it is just fine and everyone should be tought to take that approach with home ownership.
Edward
1:16 am on Friday, May 13, 2011
The FBI Mortgage Fraud Taskforce needs to investigate this. Banks are federally insured so this Mortgage fraud that was perpetrated by Babur Lateef, Tarannum Lateef, Omar Lateef and Najia Shakoor is a federal crime.
Dave is right about not selling to a relative and if you look at the timing, this was a calculated scheme and fraud against the bank, depositors and taxpayers.
These people need to pay for this $600,000 financial crime they committed.
MIke Smith
4:14 pm on Thursday, July 14, 2011
It went to Auction.
"I would guess that if the property went to public auction there would be no arms length rider. And there shouldn't be. Also, if it was picked up at public auction then the bank agreed to it, and probably got the best price since the family would presumably have more of an interest in keeping it than others would have in purchasing it.
Lateef suggested that the bank was uncooperative in renegotiating, so he was forced to take this risky move. Defaulting on a loan is not the same as breaking a contract. He contracted to make the payments or turn the asset back over to the bank for disposal. That is what he did.
Banks shady dealings contributed to the downfall in home prices, so I have no problem with the idea that they should take a loss on a deal that they helped turn bad." Peter Danlyn
ahmed jalal
2:22 pm on Saturday, October 15, 2011
Amazing! I know the lateef’s personally and have been to their mansion more than a few times for lavish parties over the past 3-4 years. They talk about going through financial troubles? Both him and his wife and incredibly successful medical practices. They have 4 kids going through private school and he talks about having trouble meeting his mortgage? Ha! That is a joke! Now his sister in law owns the place while “renting” it to them— they will take it over in a few years at half the price they originally paid for it.
This is complete and total fraud — for someone who claims he can help other people… help by lying and cheating and not the real people who need help with their payments.
I will never vote for Dr. Lateef knowing what I know about him and his family.
Kevin English
5:36 pm on Tuesday, October 18, 2011
I'm with you Susan. I never liked personal and uninformed attacks on people that step up to serve the public. That's is what sickens you, right?
Peter Danlyn
10:18 pm on Thursday, May 12, 2011
Okay, lets take this tale far, far away from all the ideology, hidden agendas and self-interest. What we have is a charactor whose contract turned out to be quite calamitous due to deceptive actions by the other party. As it becomes clear that the contract's terms will cause great harm, the charactor seeks a way out of the mess. Loved ones discover a loophole and they exploit it to extricate themselves and make the world right again.
Come down on whichever side you like, but answer this one question first. Whether you prefer 200 year-old literature or contemporary animated blockbusters, did any of you really cheer for Rumplestiltskin to win?
Alex William
5:28 pm on Friday, May 13, 2011
"As it becomes clear that the contract's terms will cause great harm, the charactor seeks a way out of the mess. Loved ones discover a loophole and they exploit it to extricate themselves and make the world right again."
I am just glad that we don't have too many of the "Loved ones " who would find the loophloe to make the workd right "for them" again.
I am glad that we don't have police officer who don't think of how he/she would find a loophole so they don't have to risk their lives fighting the bad guys.
I am glad that our brave soldiers wouldn't try to find a loophole so they don't have to leave their loved ones behind to fight and protect this country in the hostile enemy land.
And I am glad that instead of trying to find a loophole to take advantage of others, we choose to work hard if not harder to make or maintain our dreams.
I am proud to read about the lady who fought to keep her home when bad thing happened. I am proud of the kid who had learned from great parents to spend wisely.
But I am not proud of these Lathief gang at all.
Adina Horowitz
10:33 pm on Thursday, May 12, 2011
So Mr. Stewart & Mr. Gray instead of launching a campaign on an actual platform you are going to sling mud & make accusations. Where are you getting your money to fund your campaign. People like you are the problem w/this country's government. I for one will most certainly NOT be voting for you!!!
Dr. Lateef is a very respected doctor & regardless of the fact that his wife is also a doctor we are in a recession & just because they are doctors doesn't mean that they are not affected by this recession like everyone else.
I am a Republican I've been a Republican from day one & I have never voted Democrat until now just for the simple fact that we won't have a sorry excuses such as yourselves representing me!!!
Alex William
9:15 am on Friday, May 13, 2011
I guess it's time for you to let everyone knows your real political affiliation. You have been a Republican? And you are so furious about Mr. Gray talking about the truth regarding this scam artist , just for this?
Go ask your hero, the honorable slicky Dr. Lathief, what his plan is, to use the County Chairman position to repay his sister in law that $600K+. You know what? Probably that $600K did not come from Chicago but Manassas after all.
Kevin English
5:39 pm on Tuesday, October 18, 2011
I'll help you Adina. They are just going to sling mud and help continue the downward spiral that is Prince William County.
Connie Moser
10:39 pm on Thursday, May 12, 2011
Many years ago, my husband was laid off from his job and it took 7 months to find another. During that time, I was baking and decorating cakes from home. I told my few customers of my dilemma and asked them for help...not for money, but to send me business. I worked 16 and 18 hour days for months, I never turned down a customer and I never missed a payment. Keep in mind, a birthday cake went for $15.00. It took a lot of cakes to pay a house payment over $700.00, the utilities, car expenses, insurance, and groceries for 3 children.
We didn't walk away and we didn't file bankruptcy. We didn't ask our friends and relatives for money.We accepted our responsibility and we worked. I would have scrubbed toilets for a living if necessary to make that payment.
So, I am having difficulty understanding the doctors' finances, and I hope I don't hear any more of that ridiculous talk about financial assistance to lower the principal on underwater mortgages. I would agree with lower payments for a specified period of time, with the reduction added to the end of the loan, but that's as much as any of us should be willing to concede. Just buckle up and ride it out.
Gwen Reedy
10:16 am on Friday, May 13, 2011
I totally agree with you about accepting full responsibility and doing whatever it takes. About fifteen years ago I went through a difficult financial time due to a divorce but I tightened the belt, worked hard, cut spending as much as possible. Best lesson that came out of it was that my now adult-son is now extremely thrifty because he saw how careful we had to be with every penny!
MIke Smith
4:07 pm on Thursday, July 14, 2011
I wonder what you would have done if your house was $600k under water due to the housing market crash.
Edward
11:05 pm on Thursday, May 12, 2011
THERE WAS NO FINANCIAL ISSUE with the Lateef's. No one twisted their arms to get a mortgage. The signed for a 7.25% mortgage. What kind of credit score do they have? I got a mortgage in the same month and year for 5.55%.
The real issue is that the entered into a contract then decided they did not want to fulfill it. Why did Tarannum Lateef remove her name from the house 1 year earlier? Was it because they were setting up this mortgage fraud. Premeditated, in an attempt to save her credit ?
If their relatives could swoop in and buy the house for cash as they did, why did they not just lend Babur Lateef the money to keep the house. The reason is that this was a planned mortgage fraud. It was done to get the house at a discount in the process. Babur Lateef ruined his credit and then decided to run for chair.
His fake foreclosure scam will not fool the voters. Most people are hard working, honest people who, when they give their word or sign a contract, do everything they can to fulfill it. How, just a few months later did Babur Lateef donate over $20,000 to his campaign between himself and his company Advanced Ophthalmology?
It’s all a scam and now Babur Lateef refuses to release his Tax returns because then everyone will know about his scam. What's so secret about your Tax return Babur Lateef? just cross out your SS # and show us? Show us how your income went down so much that you could not afford a $6,000 monthly house payment? Otherwise you are a liar
MIke Smith
4:15 pm on Thursday, July 14, 2011
It went to Auction.
"I would guess that if the property went to public auction there would be no arms length rider. And there shouldn't be. Also, if it was picked up at public auction then the bank agreed to it, and probably got the best price since the family would presumably have more of an interest in keeping it than others would have in purchasing it.
Lateef suggested that the bank was uncooperative in renegotiating, so he was forced to take this risky move. Defaulting on a loan is not the same as breaking a contract. He contracted to make the payments or turn the asset back over to the bank for disposal. That is what he did.
Banks shady dealings contributed to the downfall in home prices, so I have no problem with the idea that they should take a loss on a deal that they helped turn bad." Peter Danlyn
Susan Jacobs
6:54 am on Friday, May 13, 2011
As stated in prior comments there is verbiage in the closing papers that state that this was an "arms length" transaction. Meaning that the property is not being sold to a FAMILY member.
Kevin English
12:04 pm on Saturday, June 4, 2011
Hi Susan,
I know you as a real estate broker understand a foreclosure sale on the steps of the courthouse is open to all qualified buyers. As you know the bank or their trustee usually makes a bid. I know this man and he was fortunate that his family was able to help him and made the winning bid. You must be confusing the closing papers on a foreclosure with a short sale.
MIke Smith
4:54 pm on Thursday, July 14, 2011
Great point Kevin.
Mark
7:37 am on Friday, May 13, 2011
To defend him would prove complete ignorance.
MIke Smith
4:07 pm on Thursday, July 14, 2011
To accuse him without all the facts is even more complete.
Alex William
8:49 am on Friday, May 13, 2011
And now he wants to lead the county? He may have Prince William County bought by his sister or his other relatives living somewhere in the world, paying cash for it. I don't think he will have trouble moving money around too.
Doesn't the party have any other candidate less slicky than this guy?
Chris
9:20 am on Friday, May 13, 2011
I'm glad to see the patch has done their homework on this story. I've been reading about it on local blogs and another newspaper article.
I agree with Connie. He should just ride it out. That's what MANY in PW have done over the past few years. I know of several that were able to work with BoA and remain in their homes. Of course there are others that were less fortunate. Why didn't he move back to his rental townhouse? Or find another place to rent? That's what most would've done if they knew foreclosure was unavoidable. Instead this man gets a family member to do his bidding.
The family member bidding on the property at auction makes this whole deal/story look very shady. I can't understand why this man still thinks he can be elected.
Kris Day
1:06 pm on Friday, May 13, 2011
I agree! Shame on Dr. Lateef. Very glad there are good examples of responsible Americans around, such as the Mosers and Mrs. Reedy. They didn't cut and run. They dug in and fulfilled their obligations. Our country wouldn't be in such an economic crisis if more people and politicians handled their finances like this. I'll be voting for Corey Stewart most likely because I appreciate his actions on illegal immigration, but will check out Mr. Grey's platform as well.
MIke Smith
4:08 pm on Thursday, July 14, 2011
Ride out a $600k loss in the value of the property due to the over inflation of the housing market. How many people actually did that ??
Peter Danlyn
11:41 am on Friday, May 13, 2011
I would guess that if the property went to public auction there would be no arms length rider. And there shouldn't be. Also, if it was picked up at public auction then the bank agreed to it, and probably got the best price since the family would presumably have more of an interest in keeping it than others would have in purchasing it.
Lateef suggested that the bank was uncooperative in renegotiating, so he was forced to take this risky move. Defaulting on a loan is not the same as breaking a contract. He contracted to make the payments or turn the asset back over to the bank for disposal. That is what he did.
Banks shady dealings contributed to the downfall in home prices, so I have no problem with the idea that they should take a loss on a deal that they helped turn bad.
MIke Smith
4:10 pm on Thursday, July 14, 2011
Great point Peter. Hopefully some of the folks who are rushing to judgment read this.
Alex William
12:50 pm on Friday, May 13, 2011
It is easy to say that one doesn't have enough time to renegotiate with the bank but if you are going down the path to let your house foreclosed, you should know ways ahead of time of what will happen. It is not a secret at all. To make thing a little more interesting, according to PWC record, the house on Chaddsford Ter is now belonged to Lateef Abdul Bari & Kauser Serv, not Shakoor, after only 8 months from the foreclosure. Look at the trend of transferring and you will see;
http://www04a.pwcgov.org/realestate/Landrover.asp?body=Pw_Detail_Base.asp&DataAction=Find
To say that they took a risk of letting the house get foreclosed and used a relative to buy back the property is not true either. Again, according to PWC records(same page but on assesment tab), value of the house at the time of the buy back was around $600K. Nobody would want to over pay for that house so there is no risk at all.
Dan Telvock
3:18 pm on Friday, May 13, 2011
Alex, the deed was changed to add the names of Mr. Lateef's father, who is Abdul Bari Lateef.
When the house was purchased, Najia Shakoor made the transaction and paid in cash. The deed was recorded. Shortly after that, the deed was changed to add her husband (Babur's brother) to the deed, and that's Omar Lateef. Now, the father has taken over.
Just wanted to clarify this because 1. your link doesn't work and 2. I did not mention this in the article.
Thank you
Alex William
4:50 pm on Friday, May 13, 2011
Thanks for letting me know about the link, it probably was reset to the default page. Anyway, to find the info you then can go to ;
http://www04a.pwcgov.org/realestate/LandRover.asp
and follow the instruction to search property by address and enter 13001 Chaddsford Terrace in the address field, you will see all the detail about the property.
You also help me proof my point of how this property has been transferred among the Lathief to cheat the system and pocket about $600K. First there were Lathief husband and wife, then the wife was removed to free herself from the bad deed, then a woman from Chicago whom has nothing to do with the Lathief bought it when nobody wanted it, then ooppsss add her husband with the Lathief name on it, it's OK because it's husband and wife then wooppssss transfer to his father...and wah lahhh... who will be the next owner, you guess!!!!! And yes they are smart people but I don't need this kind of smart people to lead my county.
PS: I think it is not accurate to say that those names were added to the deed. The property was transferred to then next owner not just added other persons to the deed, otherwise it would be all three names on the county record instead of one.
Kevin English
4:39 pm on Friday, June 17, 2011
Ted, While you are in the correction mode. To be correct (if that is a goal of yours) Dr. Lateef owns his office space in that building not the building in which his office is located.Ownership in that building is classified as "condo" and he owns, with a mortgage, his space. This you also could have found in your public record search. I'm sure you did not mean to mislead your readers and help Lateef's opponents. Also, the townhouse on Monument Ave. is in Belmont which is in Woodbridge. This was the first home he and his wife purchased at the time they moved to the area. You and responders are way off base if you think their was anything other than a family caught up in the worldwide economic meltdown in this foreclosure. In addition there is typically a judgement entered for the balance of the money owed to the bank. So ask yourselves, to what end did this benifit The Lateef family? The Latteef family made a decision to keep the practice going in Prince William and keep people employed and let there house go. Their whole family circled the wagons and helped them and that is nice. It is much better than, let's say, a CPA bouncing checks. Dr. Lateef does not portend to know everything, or be Mother Teresa, he just knows he will be a better chairman than the rest of the field. The people you elect do matter.
Lauren Jost
5:24 pm on Friday, June 17, 2011
Kevin,
Thank for your comment. But, am I missing a comment? I don't see anyone named Ted posting in this thread. If you're seeing something I'm not, please let me know.
Thanks,
Lauren
Dave
11:41 pm on Friday, May 13, 2011
Ok, I think (Just my personal opinion) this situation needs to be looked at by the States Attorney General and the lender involved. In fact, ANYONE involved in the transaction that could possibly have knowledge about any part of the transaction might need to be interviewed if this is against the law. However. I do not see a Foreclosure in the tax record. Is there a SHORT SALE????? Is there a listing in the MLS? If so, who else could be involved? Is there 1 agent or 2 separate agents? Are the rules the same for a short sale? I would have to assume the lender whould require an arms length transaction and not allow a relative to purchase a home so this type of situation does not occure across the country. There is a difference between a foreclosure and a short sale. Foreclosure- the house has a deed of foreclosure and there is a record of sale. Short sale- Owner owes mere that the house can be sold for (upside down) and the bank allows the sale with a short-fall. Basically the bank can agree to lose money. Now.... How many people think a relative is allowed to buy a short sale? Good Question Hua?
MIke Smith
4:12 pm on Thursday, July 14, 2011
"I would guess that if the property went to public auction there would be no arms length rider. And there shouldn't be. Also, if it was picked up at public auction then the bank agreed to it, and probably got the best price since the family would presumably have more of an interest in keeping it than others would have in purchasing it.
Lateef suggested that the bank was uncooperative in renegotiating, so he was forced to take this risky move. Defaulting on a loan is not the same as breaking a contract. He contracted to make the payments or turn the asset back over to the bank for disposal. That is what he did.
Banks shady dealings contributed to the downfall in home prices, so I have no problem with the idea that they should take a loss on a deal that they helped turn bad." Peter Danlyn
Dan Telvock
12:44 pm on Saturday, May 14, 2011
Hi Dave
There is a deed of foreclosure and it is attached with this story. It is the fourth document that I included with this story.
Susan Jacobs
3:36 pm on Friday, June 17, 2011
Most lenders do not allow family members or business partners to purchase a home in default.