| The creative tactics that foreclosure scam | | | | solution to foreclosure that seems too good to be |
| companies use to steal money and trick innocent | | | | true. Just because a company offers weekly |
| homeowners out of their houses would be | | | | seminars and uses complicated terms to describe |
| entertaining if the results were not so tragic. From | | | | their "unique," "creative," "proprietary" process |
| phony documents and forged quitclaim deeds to | | | | does not mean that the company has anyone's |
| pointless mitigation services and companies that | | | | interests at heart besides its own. |
| change their name every other week, the | | | | At the very least, before considering transferring |
| number of potential scams seems endless. | | | | ownership of a property to stop foreclosure, |
| One group of scammers, though, had put a 19th | | | | homeowners should consult with their own legal |
| century spin on this 21st century foreclosure | | | | counsel. Deed transfers, land trusts, land grants, |
| crisis. A San Diego, California based company | | | | quitclaim deeds, or whatever term the scammers |
| called Federal Land Grant Company that has been | | | | use should all be reviewed by someone |
| shut down by that state's attorney general | | | | competent to read and understand the contracts |
| persuaded homeowners to transfer the deed to | | | | and the ramifications of entering into such |
| their house into a vehicle called a "land grant." This | | | | agreements. |
| vehicle is absolutely fraudulent and has not been | | | | This Federal Land Grant Company had tricked |
| used in over one hundred years. | | | | over 300 homeowners into transferring their |
| For some historical background, the Federal land | | | | properties into the phony system. This means |
| grant system was used during the colonial period | | | | that 300 properties have now been transferred |
| to encourage settlers to move into and develop | | | | out of the hands of the original owners who are |
| newly acquired property. As America expanded | | | | still facing foreclosure on these houses. If any of |
| further westward, it ended up with vast swaths | | | | them had consulted with an attorney or |
| of mostly empty, unsettled land and used this | | | | knowledgeable real estate professional before |
| system to encourage further expansion. It was | | | | entering into the agreement, they could have |
| also used to facilitate industry and transportation, | | | | avoided this situation. |
| with four out of the five transcontinental railroads | | | | Now, for the majority of these homeowners, |
| being built with assistance from the land grants. | | | | matters are much worse. They do not currently |
| But this type of instrument has not been used | | | | own the house but have to find some way to |
| since the 1800s and is no longer recognized by | | | | avoid losing it to foreclosure. Without a clear title, |
| any competent court or county government. | | | | refinancing, selling, or even offering a deed in lieu |
| However, this company charged $10,000 per | | | | will be much more difficult. And although this |
| house to be transferred into the land grant, had | | | | particular scam will be forced to shut down and |
| the homeowners sign over the deed to their | | | | may have to to provide refunds to their clients, |
| house, and then had the audacity to charge rent. | | | | they will have been responsible for the loss of a |
| All for a completely fraudulent scam. | | | | significant number of homes. |
| Using documents from hundreds of years ago, | | | | Staying away from foreclosure scam operators is |
| the company persuaded homeowners that this | | | | not easy when faced with the loss of a home. |
| phony solution would actually prevent the bank | | | | Desperation to save the house and ignorance of |
| from being able to take the house back through | | | | how the foreclosure process works contribute to |
| foreclosure. In the end, many of the victims were | | | | homeowners being more susceptible to these |
| simply evicted from the house after the court | | | | scams than they would be otherwise. If |
| proceedings and sheriff sale. Transferring | | | | ownership of a house is to be transferred, |
| ownership of the property, whether through | | | | though, homeowners should consult with a |
| legitimate or phony documents, does not transfer | | | | competent legal adviser and clearly understand |
| the responsibility of paying the mortgage. | | | | what will happen to the mortgage if they no |
| This should be a stern warning to homeowners | | | | longer own their home. |
| against trusting any company that offers a | | | | |