Convicted con artist shows how system flaws could allow him to steal your home

[snopes]

When Brent Barber tells you — and he's about to — how easy it is to steal your house out from under you, or take your money and ruin your credit, even while he's sitting in prison, you'd better listen.

http://www.usatoday.com/money/perfi/...-scammer_x.htm

I beat the robbers by having no money, ruining my own credit and renting a sh*t heap. Even the computer I'm typing on is worth zilch on the open market.

[Pseudo_Croat]

So, how would you patch up these flaws in the system and make yourself immune to these crimes, besides being poor?

- Pseudo_Croat

[kit_n_caboodle]

Say a real estate investor came to you and told you banks wouldn't let him buy any more property because his credit was maxed out. But if he could buy a property in your name, he'd give you $1,500 to $2,500 for the trouble of signing the documents.

He'd pay all the costs and either find a tenant to cover the mortgage or pay it himself. And after a year, he'd sell the property and share the profits with you. Sound good? If you said yes, you'd be what criminals and the FBI call a straw buyer.

If you said yes, you'd be what intelligent people call greedy and gullible.

Seriously folks, if it sounds too good to be true.

[Menolly]

Pseudo_Croat, from the article:

Recently, Monacelli's organization formed a group to find ways to help county recorders combat fraud. Los Angeles and Philadelphia now alert property owners by mail when key documents are filed against their property.

So, for those of us who don't live in LA or Philadelphia, I guess we have to research every month whether documents have been filed against our homes? Just a bit frightening...

Does anyone know if PMI wiill safeguard against this fraud process?

[Amigone201]

Originally Posted by kit_n_caboodle

If you said yes, you'd be what intelligent people call greedy and gullible.

Seriously folks, if it sounds too good to be true.

Yeah, I remember reading this yesterday while I waited for that guy at Wegman's to get around to making me my dinner.

Er, anyway...

Who would go into business with someone who shows up randomly and offers you the deal of the century, then tells you his credit is maxed out?

[Keeper of the Mad Bunnies]

Originally Posted by Menolly

Pseudo_Croat, from the article:

Recently, Monacelli's organization formed a group to find ways to help county recorders combat fraud. Los Angeles and Philadelphia now alert property owners by mail when key documents are filed against their property.

So, for those of us who don't live in LA or Philadelphia, I guess we have to research every month whether documents have been filed against our homes? Just a bit frightening...

Does anyone know if PMI wiill safeguard against this fraud process?

There are other counties that are at least making it easier to search your property online and for free. While a fraudulent document filed against your property will cost you in time and energy clearing up, you should not automatically lose your property.

The only thing PMI safeguards is the mortgage company. It is insurance that makes sure the mortgage company recoups the full value of their loan if they foreclose. Normally, it only is required on loans where the loan to value ratio exceeds 80%.

James Powell

Originally Posted by Menolly

So, for those of us who don't live in LA or Philadelphia, I guess we have to research every month whether documents have been filed against our homes? Just a bit frightening...

I remember reading about this guy in West Texas who would file liens against people's houses. He would declare that they owed him money and he would file a lien. The liens were not "legal", but you had to go to court to get them removed. He just filed so many so quickly that it took quite a bit of time to get them all cleared out. Somehow, it did not take a court order to file a lien, but it took one to get it removed. I haven't heard about him in a long time, so maybe they figured out a way to stop him.