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Mortgage elimination

From Wikipedia, the free encyclopedia

Mortgage elimination is a type of mortgage fraud in the United States. In this scam, the promoter first convinces a mortgage holder (lender) that the debt that has been contracted is invalid or legally unenforceable, usually due to a combination of alleged technicalities in the note, deed of trust, or other loan documentation signed; the promoters often link their rationale for debt elimination to illegality of certain lending practices, the Federal Reserve, and the monetary system of the United States in general. Through a series of illegal maneuvers involving the creation of a trust, a demand letter, and a false re-conveyance of title, the promoter and the original mortgage holder concert to create the appearance of a title free of liens and encumbrances so that another loan may be taken out on the property.[1]

The United States FBI has put out specific warnings regarding this kind of scam.[2]

The Dorean Group is a high-profile promoter of this type of scam.[3][4]

References

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  1. ^ 'Mortgage elimination' scam leaves many without a roof over their heads
  2. ^ "Federal Bureau of Investigation - Press Room - Headline Archives". www.fbi.gov. Archived from the original on 2005-12-16.
  3. ^ "Dirty Deeds". 5 April 2006.
  4. ^ "Mortgage Fraud Blog". Archived from the original on 2010-05-23. Retrieved 2010-05-24.
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