FORECLOSURE SCAMS EXPOSED-PART III
INDUSTRY NEWS, SHASTA COUNTY, SHORT SALES, TIPS FOR SELLERS, TIPS FOR SENIORS
November 6th, 2008
Prior posts discussed what red flags to look for and the types of scams that are sweeping the state adding 
insult to injury for distressed homeowners. Following are brief descriptions of several scams uncovered in California detailed in an article released by the California Association of Realtors recently:
- Housing Assistanc
e Services(HAS)-Garden Grove-Marc Sheckler, Owner-targeted Orange County homeowners who received notices of default. Official looking “Fresh Start Program” letters were mass mailed offering counseling on options for avoiding foreclosure and to negotiate loan modifications with their lender(s). To sign up, homeowners pay $750-$1,250 upfront, and agree to pay additional for credit reports, “docusave” services, processing reinstatement, monitoring repayment plans, and financial education materials. HAS representatives instructed homeowners not to talk to their lenders (red flag)! Whenever homeowners expressed concern about an impending foreclosure sale, representatives reassured them that things would be worked out. After receiving numerous complaints for money paid and services not provided, California Attorney General Bill Lockyear filed a $2 million dollar lawsuit against HAS and obtained a court order to freeze their assets. - Rodriguez in Downey: From 2003 to 2005, Martha Rodriguez and others ran a foreclosure rescue scam using computerized lists of homes going into foreclosure. The defrauders offered to refinance their loans and save their credit, but what they actually did is arrange for straw buyers to buy the homes. By the time authorities caught up to them they had defrauded over 100 homeowners and amassed over $12 million. Ironically, she pulled this off while awaiting sentencing on another loan fraud scheme. In February 2007, she pleaded guilty to criminal charges for the foreclosure rescue scam and faces up to 40 years in federal prison.
- Alburez and Silva: Alameda-Sonia Alburez and Verena Silva owned several businesses such as Community Home Savers and California Home Saver Program. Just like the others, they used lists of homes in default from the recorder’s office to target homeowners in foreclosure. They allegedly told homeowners that, for an upfront fee and additional monthly payments, they could save their homes from the auction block. In reality, they just transferred a fractional interest in the home to a sham corporation. The sham corporation would declare bankruptcy, the foreclosure sale would be postponed, but as soon as the lender challenged the bankruptcy, the scam was uncovered and the foreclosure would resume. Both were arrested in Alameda County this past March.
- Hutchings-San Diego: Hundreds of homeowners were duped over a two year period in a home rescue scam conducted by William Hutchings and his cohorts. Many lost money and their homes. They targeted non-English speaking homeowners reaching victims through seminars on how to stop foreclosure by transferring their homes to his company. He claimed he could file a governmental land grant on their behalf that would extinguish their mortgage in four years. Then they could reacquire their homes form Hutchings company free and clear of any liens. Land grants were last used after the Mexican-American War in 1848 when Mexico ceded property to the US at the end of the war. One seminar attendee observed homeowners “flood to the back of the room to sign up for the program by signing over their properties and paying $10,000 upfront.” In May, 2008, Hutchings and others were arrested and face over 100 felony charges.
I have seen similar offerings in the Redding/Shasta County area. I can’t say whether they were legitimate service offerings or scam artists passing through town. To avoid being suckered by these con artists, I would recommend talking to a lawyer or accountant before signing any legal contracts or documents or paying anyone a fee for service yet to be rendered. If it sounds too good to be true, it most likely is a scam!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
Interesting conversation on the blog:) And I see that the blog was recognized