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Beware of the Latest Foreclosure Rescue Scam--"Mortgage Elimination"

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					Beware of the Latest Foreclosure Rescue Scam--"Mortgage Elimination"

Mortgage Fraud Examiners, the investigative firm who warned the public
about the “criminal loan modification trap” and “useless” software
audits, is now warning the public of this latest scam—“Mortgage
Elimination”

Ashburn, VA, April 13, 2010 -- Actually, this scam is not new; the last
time it was prevalent was back in the late 1980s and early 1990s when
many Midwestern farmers were losing their family farms. Hucksters flooded
the Corn Belt promoting their openly brainless schemes managing to
convince farmers that they weren’t required under the law to repay their
bank loans. These same nonsensical theories have resurfaced today in what
is known as “Mortgage Elimination.”

Mortgage Fraud Examiners CEO Storm Bradford explains: “The previous scams
we’ve exposed dealt mainly with companies that market “useless” software
audits, and companies charging fees for a loan modification when the
homeowner can go to HUD or non-profit organizations and get one for free.
This scheme literally instructs homeowners on how to commit federal and
state crimes.”

“Swindlers of the “Re-conveyance By Administrative Process” scam, as it’s
known, advise homeowners that financial institutions are forced to cancel
mortgages and/or deeds of trust, without payment on secured promissory
notes because allegedly they never lent money to the borrower for the
purchase of their home. According to them, this makes most mortgages
unenforceable against their so-called “proprietary administrative
procedure.”

“Why would anyone believe such idiocy when obviously the bank writes a
check for the purchase of a home, or writes the homeowner a check for a
cash-out refinance, because these swindlers literally change the content
of legal definitions, statutes, and court cases; cite various discredited
legal theories, quote from out-of-context Federal Reserve press releases,
and intermingle bogus legal terminology, to scam thousands of dollars out
of unsuspecting homeowners who are not aware of the fact this "vapor
money" theory has been squarely addressed and rejected by courts
throughout the country for over twenty-five years.
“Homeowners in foreclosure are simply desperate for a solution, and
that’s what the scammers count on. The sad part is the desperate
homeowner and his family end up in even more desperate straits. They end
up paying thousands of dollars for legal babble that gets them nothing,
except a possible criminal conviction in the end.”

There are several variations of the scam, but basically this is how it
works:

1.   Owner/borrower executes a substitution of trustee for the deed of
trust against his or her property (which, of course, the owner/borrower
has no authority to do because of its non revocable character).
Substitution of trustee is recorded.
2.   Substituted trustee executes and records a release (or reconveyance)
of the deed of trust, or
3.   Substituted trustee records a notice of sale pursuant to deed of
trust, followed by a trustee's deed in favor of a third party (or trust).
It appears the trustee's deed does not follow a legitimate foreclosure
sale, and the third party is a 'strawman' or otherwise holds the title in
trust for the former owner/borrower.
4.   Later, property is refinanced (or possibly sold) with new title
insurance being issued to include coverage against the supposedly
released or foreclosed deed of trust.

In essence, the homeowner files a forged reconveyance on a property,
making it appear that the property is owned free and clear. The homeowner
encumbers the property with a new loan and runs off with the new loan
proceeds. http://www.fincen.gov/law_enforcement/ss/html/mortgage1.html

"There really are many legal options available to homeowners facing
foreclosure," Bradford concludes. “However, the only process that really
works is to find evidence of tortuous misconduct and/or violations of
state and federal consumer protection acts, establishing contract
defenses to force the lender to deal on your terms not theirs. Every
mortgage transaction has unique facts, every claim has different
applicable law, and only a legal specialist is going to find the
answers.”
Mortgage Fraud Examiners, Phone: 800.540.EXAM (3926),
http://www.mortgagefraudexaminers.com

Contact :
Storm Bradford
Mortgage Fraud Examiners
PO Box 1332
Ashburn, Virginia 20146
1-800 540--EXAM
amicusman@mortgagefraudexaminers.com
http://www.mortgagefraudexaminers.com

				
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Description: Mortgage Fraud Examiners, the investigative firm who warned the public about the “criminal loan modification trap” and “useless” software audits, is now warning the public of this latest scam—“Mortgage Elimination”