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QUIET TITLE ELIMINATION OF MORTGAGE ATTACKED BY FLORIDA AS DECEPTIVE

By
Real Estate Attorney with THE ZARETSKY LAW GROUP - Board Certified Real Estate Atty and AUTOMATED LAND TITLE COMPANY

Quiet Title schemes to eliminate mortgages took a hit Tuesday when the Florida Attorney General filed an Injunction and Declaratory Judgment action against one of the Florida perpetrators, seeking to seize their assets and return to the defrauded homeowners the thousands of dollars obtained by false and deceptive claims regarding quiet title actions and reduction or elimination of mortgages through their "powerhouse" of attorneys.

The claims made by the state specifically address the Quiet Title method of elimination of mortgage debt - at least the way this firm was saying they were getting it done.

The Florida Attorney General today shut down a firm that was mentioned in our blog last week. The concept of a land trust interfering with the title or prosecution of the foreclosure action has been long questioned - but desperate homeowners paid thousands of dollars to this and other firms to have the mortgage eliminated through some secret legal maneuvering.

The case was brought in Broward County and involved the seizure of records and monies of the firm.

A press release from the Attorney General is found at their site along with the Complaint that has all the allegations.

One of the ways the lender was being "served" in these cases is by naming the original lender - not the current lender, thereby almost ensuring that a "clerk's default" would be obtained against the "lender".  The Complaint by the Attorney General does not implicate the attorneys in the scheme - although the injunction and declaratory judgment action would not be appropriate for action against the attorneys involved, which more appropriately would be referred to the Florida Bar Association for investigation of wrong doing.

See related articles on this matter at:

 

QUIET TITLE USED TO ELIMINATE MORTGAGES - EXAMINED

 

FLIPPING FORECLOSURE DECEPTION - FLORIDA FIRM BUSTED;

 

SHORT SALE RESCUE FRAUD ON DESPERATE HOMEOWNERS

 

Some excerpts from the Complaint are set forth below.

 

 

Show All Comments Sort:
Winston Heverly
Coldwell Banker Access Realty - South Macon, GA
GRI, ABR, SFR, CDPE, CIAS, PA

I am not an attorney to debate this ruling or justify it's effect. However, what I see in the industry now and the hoops one has to go through to borrow, lends itself to a ruling of insanity. What were the lenders doing, were there no guidelines like the 80's that were followed? You would not believe the hoops a client of mine is going through to borrow $62,000. Personally what went on was a crime against humanity.

Sep 26, 2012 10:49 PM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Go Pam Go!

Floridians should be cheering her on, this is a great and good thing.

Alas, I fear the headlines will say Republican Attorney General Sides With Big Banks.

The spin will be this is a Bank victory totally omitting that it was the consumers who were being ripped of by these hucksters promising false hope.

At least one comment here makes my point.

Richard, thanks for the good news.

Bill

Sep 27, 2012 01:58 AM
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

It is amazing the creative scamming that people come up with.  I've heard of a few investors doing this.  Glad to hear it is getting shut down.

Sep 27, 2012 11:27 PM
Anonymous
Shannon

Well, it is a remedy available under Florida Statutes 65, that if "fraudulent conveyance" occurred that the homeowner can seek relief. Further more, the banks commit fraud, and manufacture documents CONSTANTLY! The big scammer, David J. Stern is still a member of the bar in good standing while he conspired to take homes away for banks who failed to meet their legal requierments, manufacturing documents and submitting false affidavits under the penalty of purjury. Now, an attorney STANDS up for the people (and can not work for free) and attempts to be creative (not nearly as creative as the banks and the mills) and he is damned for it? This is a win by the banks! The banks and their sleezeball attorney's are NEVER charged with any wrong doing! I think that Pam Bondi, legislature and even the executive forgets WHO pays their salaries! It is the PEOPLE, NOT the corporations that they are working for.

Furthermore, if you have a situation where the borrower has recieved 9 notices of 9 parties all holding title, yet the county records reflects ONLY one, who SHOULD you serve? The one that the county has on record. THAT is the ONLY one according to statute 702.01 that even has an effective instrument. People need to do their homework, and this makes Pam Bondi look like an idiot! In fact, the courts should stick to the law a little more and quit giving free passes to the banks and then this attorney would not be giving false hope but would in fact be winning these suits because the banks and their attorney committed GROSS FRAUD!

Dec 05, 2012 01:05 AM
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