Business: Clearwater mortgage broker shuts its doors

Global Mortgage Inc. of Clearwater shut down operations this week and filed for bankruptcy liquidation Friday.

At its peak, the mortgage broker had 2,200 employees with 38 locations in about 40 states. At the end, there were closer to 600 employees, said Joseph Schafer, former director of operations.

"A lot of people left after not getting paid," he said. "I was hearing heart-wrenching stories on a daily basis. There are a lot of people unable to feed their families. Rents weren't paid for three months and there were bounced checks all over the country."

Schafer said the company's owners, Scott and Debra Losch, fired him last week. He said he is trying to help other former employees find jobs with other mortgage brokers.

Business declined as tighter lending standards and falling home values made refinancing impossible for many homeowners, Schafer said. In addition, he said the company faced large legal expenses.

The bankruptcy filing says Global Mortgage has liabilities of between $1-million and $10-million, and assets of less than $500,000.

Losch also is president of another defunct Clearwater mortgage company, Business Mortgage Inc., which filed for bankruptcy in October. A creditor in that bankruptcy case claims Losch transferred assets from Business Mortgage to himself or to Global Mortgage or other companies. American Interbanc Mortgage filed a claim against Business Mortgage for $49-million based on a legal judgment.

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by B.	03/11/08 09:34 PM
My husband and I had a branch with Global. We saw what was coming. We paid attention, got our bank account (that they were controlling) down to a minumim and resigned as a branch 4 months ago. Thank goodness. I feel badly for everyone hurt! SCAM!

by B	03/11/08 04:10 PM
They should have to relinquish all of the property they purchased with other's money and pay for what they have done with a stiff sentence for each.

by By Former Employee	03/11/08 03:19 PM
This whole situation reeks of FRAUD!Good people lost thier jobs and money.The State of FL should not let them have any more licenses! Apparently they don't know how to operate a business if bankruptcy is always the outcome! NO MORE FLORIDA! Wake up

by JMC	03/10/08 08:42 PM
They should go to jail. Money really buys happiness, NOT. You know they can't sleep at night. Soon they will lose everything. What comes aroung goes around. They will get what is do to them. GREED!!!

by Unknown	03/10/08 01:31 PM
Back in Sept 07 I saw a blog on the Scottsman Guide that was trashing Global. Worried that I might get scammed, I demanded to close out my branch and get paid. It took 3mths of threats with atty's to get them to pay. I sympathize with all of you!

by I was cheated	03/10/08 12:20 PM
These people took hard earned $$ from my family. We haven't been paid in over 3 months. Can't pay bills without income! THEY TOOK EVERY DIME!!!!

by Tom	03/10/08 09:52 AM
I cant understand how they are allowed to keep operating and starting businesses in FL. The Losch's are criminals!!! All the former employees and BM of Global need to ban together and start a class action !

by Monica	03/09/08 07:36 PM
How can Scott and Debra sleep at night?

by unknown	03/09/08 03:00 PM
I hope the Loschs get investigated and lose there 3 million dollar home. They have that home by stealing and cheating people out of there hard earned money. They next company the Losch's should own is a Circus as thats what Global was.

by Sharon	03/09/08 02:53 PM
Guess now we know how they were able to live that high lifestyle, drive new cars, buy a home in Colorado, they were lining their pockets with everyones else's money!!! Shame on you, hope you look good in an orange jumpsuit and some nice boat shoes.

by deano.	03/09/08 02:13 PM
just the beginning of a sad commentery of greed,deception,false realitors and shattered lives that will take years if ever to heal.The greedsters who profited and exited with millions of dollars need to be caught and prpsecuted by the u.s. attorney,s

by Nana	03/09/08 02:05 PM
That is what happens when you have greedy people in the Mortgage Industry. And yes, they should be held accountable. but yet, they go and file Bankruptcy so no one can touch them. Someone should check their bank accounts .

by c	03/09/08 01:41 PM
I lost my job b/c of the greedy dealings of Debra, Scott, AND Joseph. None of them listened when told the right things to do. They wanted loyalty from us but had none for us. They shut down Business Mortgage just like Global.

by unknown	03/09/08 08:22 AM
You know the commercial with the chimpanzees running the office? That was Global Mortgage.

by s	03/09/08 07:55 AM
lenders made alot of moeny....... and now whos paying? You and I. They offered and qualified the wrong people....

by rr	03/09/08 07:46 AM
The lenders that qualified these borrowers should be held accountable! As a laid off loan processor, I saw people getting into homes on a ARM 1st mortgage for 80% LTV, and then the lender would qualify them for a 20% 2nd mortgage at 9-12% fixed rate.

by unknown	03/09/08 01:19 AM
Many people are without jobs, many will be called into court to testify. The FBI is just the tip of the Mortgage investigation, IRS will eat any money left over, unfortunately many will be without pay...Someone needs to help these people

by Richard	03/08/08 09:33 PM
8 months ago Companies started moving their Corp Headquaters as their leases became due. High property taxes and insurance increased the rent to much. The higher paying corporate jobs moved the low paying warehouse and manufacturing stayed.

by Moving ojn	03/08/08 06:46 PM
Joseph has helped myself and my employees get set up with another company. He has helped a lot of us.

by One of the cheated	03/08/08 06:14 PM
Joseph Schafer was one of the biggest reasons this company folded. Trust me when I say he took just as much from the employees as the owners. Now we all suffer! I hope the Debra, Scott, and Joseph get what's coming to them. KARMA KARMA KARMA!

by Billy the Kid	03/08/08 05:32 PM
What else is new in Florida? People need to BOMBARD TALLAHASSEE WITH COMPLAINTS. Maybe than those good ole boys will finally wake up. ARE YOU LISTENING GOV CRIST??? Probably not, too busy dating.....What a sorry _ _ _ state this is!

by Dawn	03/08/08 04:43 PM
My husband and Myself had a branch of Global Mortgage. Scott and Debra should go to jail. They have stolen over 100k from us alone.We have 5 children to support and no income. They live in a 5 million dollar home .Both should go to jail. CROOKS!!!

by Tony	03/08/08 04:38 PM
There are going to be some really great deals on houses and real estate soon. This market bounces back, it always does. It's just a matter of time. Unfortunately some people have it, others don't

by frankie	03/08/08 01:59 PM
THE PARTY IS OVER LETS' HOPE THERE IS NOT A REAL ESTATE DEPRESSION. SAY IT ISN'T SO THINK POSITIVE WHAT REAL ESTATE CRISIS? DENIAL THEN FINALY ACCEPTANCE REAL ESTATE WENT BUST "GREED IS GOOD FOR A WHILE BUT NOT FOREVER" R.I.P. INVESTOR FRAUD

by unknown	03/08/08 01:52 PM
I am the spouse of someone who worked for Scott. The place was a 3-ring circus of he said/ she said. If everyone agreed on any one thing it would be a miracle. Very said to have alot of families suffering for one person's screw up

by David	03/08/08 11:36 AM
Don't make Joseph Schafer look like an inocent victim. He was the Director of Operation and had complete oversight over the accounting system within Global. Joseph resigned 1 hour before Global let the employees know the Company was folding. Thanks!

Clearwater mortgage broker shuts its doors

Bankruptcy filing leaves workers in the lurch.