Quit Claim Deed Fraud – Does the mortgage industry help in any way?
In the midst of rising mortgage scams, frauds related to property or quit claim deed are getting quite common.
What actually happens is, an imposter forges a property owner’s name on a quit claim deed or any legal doc. The forgery is framed such that the owner has sold off or transferred the property to the imposter. The forged deed is signed by a notary public either legitimately or fraudulently and then recorded at the County Recorder’s office. In this way, the imposter becomes the owner of the property.
Next, the imposter tries to obtain a mortgage loan with the property as collateral. There are corrupt mortgage brokers and appraisers who help such imposters by offering loans on the basis of inflated appraisals and phony loan application docs. Alternatively, the imposter may sell off the home as a fixer-upper to another buyer. In both the cases, the imposter disappears as soon as he gets the cash amount.
Such quit claim deed frauds or property related scams are seen more amongst elderly owners or seniors who’re not in good health. Those who commit quit claim deed frauds target distressed neighborhoods, vacant or abandoned homes. If the property is abandoned, chances for the owner finding it are also less. So, it’s quite easy for imposters to get away with property frauds.
Listed below are incidents which are evidences of rising property frauds:
- Gordon J.Thomas has forged the signatures of 2 Kansas City men on a warranty deed. A civil action has been filed against him by Jackson County court prosecutors.
- The Jackson County court prosecutors have also filed 2 forgery cases against William A Carter thereby alleging that the latter has forged the names of a deceased couple and then sold off their property as an upper-fixer to Leroy Brown Jr.
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