Archive for the ‘Based Organization’ Category

A 19th Century Property Foreclosure Scam For The 21st Century Property Foreclosure Crisis

Sunday, November 13th, 2011

The creative tactics that foreclosure scam businesses use to steal money and trick innocent homeowners out of their houses would be entertaining if the results were not so tragic. From phony documents and forged quitclaim deeds to pointless mitigation services and businesses that change their name each other week, the number of prospective scams appears endless.

One group of scammers, though, had put a 19th century spin on this 21st century foreclosure crisis. A San Diego, California based organization named Federal Land Grant Organization that has been shut down by that state’s attorney general persuaded homeowners to transfer the deed to their residence into a vehicle known as a “land grant.” This vehicle is definitely fraudulent and has not been used in more than one hundred years.

For some historical background, the Federal land grant system was used through the colonial period to encourage settlers to move into and develop newly acquired property. As America expanded further westward, it ended up with vast swaths of mostly empty, unsettled land and employed this method to encourage further expansion. It was also applied to facilitate business and transportation, with four out of the five transcontinental railroads becoming built with assistance from the land grants.

But this sort of instrument has not been used because the 1800s and is no longer recognized by any competent court or county government. Even so, this corporation charged $10,000 per home to be transferred into the land grant, had the homeowners sign over the deed to their home, after which had the audacity to charge rent. All for a entirely fraudulent scam.

Utilizing documents from hundreds of years ago, the corporation persuaded homeowners that this phony answer would truly stop the bank from getting able to take the home back through foreclosure. Within the end, a lot of of the victims had been simply evicted from the house following the court proceedings and sheriff sale. Transferring ownership of the property, no matter whether through legitimate or phony documents, doesn’t transfer the responsibility of paying the mortgage.

This need to be a stern warning to homeowners against trusting any firm that delivers a solution to foreclosure that seems too excellent to be true. Just mainly because a organization provides weekly seminars and makes use of difficult terms to describe their “unique,” “creative,” “proprietary” method does not mean that the corporation has anyone’s interests at heart besides its own.

In the incredibly least, ahead of thinking about transferring ownership of a property to , homeowners must consult with their own legal counsel. Deed transfers, land trusts, land grants, quitclaim deeds, or whatever term the scammers use must all be reviewed by a person competent to read and realize the contracts as well as the ramifications of entering into such agreements.

This Federal Land Grant Business had tricked more than 300 homeowners into transferring their properties into the phony method. This indicates that 300 properties have now been transferred out of the hands of the original owners who are nonetheless facing foreclosure on these houses. If any of them had consulted with an attorney or knowledgeable real estate expert ahead of entering into the agreement, they could have avoided this situation.

Now, for the majority of these homeowners, matters are much worse. They do not presently own the home but have to uncover some method to keep away from losing it to foreclosure. Without a clear title, refinancing, selling, or even providing a deed in lieu is going to be a lot more challenging. And although this certain scam is going to be forced to shut down and may well need to to provide refunds to their customers, they are going to have been responsible for the loss of a substantial number of properties.

Staying away from operators just isn’t straightforward when faced with the loss of a property. Desperation to save the home and ignorance of how the works contribute to homeowners being much more susceptible to these scams than they could be otherwise. If ownership of a residence would be to be transferred, although, homeowners must consult with a competent legal adviser and clearly understand what will happen towards the mortgage if they no longer own their residence.

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