Florida leads nation in mortgage quit-claim deed fraud, real owners must prove the fraud.

[madfloridian]

Florida leads the way in this, and if someone discovers it has happened to them...they have to prove their case even though they are the owners. That must feel like trying to prove a negative.

Mortgage fraud costs Americans $4 billion to $6 billion every year, in the estimation of the FBI, and the Mortgage Asset Research Institute says Florida leads the nation in mortgage fraud cases. The group reported a 45 percent increase in all types of mortgage fraud during the second quarter of 2008.

If someone commits mortgage fraud against you it is your job to prove it happened....that is when you do find out. And from what I read in this article, our state senator, Paula Dockery, is willing to try to fix the problem IF it is not too costly to government offices.

Real Estate Fraud Growing

Complaints about property fraud have attracted the attention of Florida legislators, including state Sen. Paula Dockery, R-Lakeland. Rachel Rogers, a legislative assistant to Dockery, said the senator is researching possible changes to the recording process at government offices but said Dockery wouldn't favor any changes that are too costly or that excessively burden either government employees or citizens.

I so disagree with her. Consider the cost to the average citizen who is a victim, and make the state government assume the costs of making sure it doesn't happen so easily. Florida, leading the nation in mortagage fraud, but a state senator thinks it would not be wise to add costly regulations.

This is a very long article, but one case really stuck out. The person who committed the quit-claim deed fraud was on probation at the time for mortgage fraud. This case is almost unbelievable, and I really do sympathize with this older couple who are the victims.

LEGAL MESS SNARES RETIREES

A retired couple with a winter home in Frostproof had a similar experience beginning last spring, when they discovered someone else had paid property taxes for the year on their manufactured home. The couple, Albert and Nancy Pascell of upstate New York, eventually learned a quit-claim deed had been filed the previous November by a man and woman from Tampa. The deed, filed with the Polk county clerk's office, shows the property ceded to Maria Blanco and Armando Borges.

The same day, Blanco and Borges took out a $45,000 mortgage on the home, according to Merritt, the Pascells' lawyer.

Since then, the Pascells have been engaged in a legal struggle to reclaim undisputed ownership of a property they say they never gave away. Nancy Houle, the Pascells' grown daughter, has headed the effort despite living in New York. She said her parents have spent $7,500 in legal fees on a home they bought outright for $3,000 in 1985. ..

Blanco, who was on probation at the time of the Frostproof transaction, is a suspect in several other fraud cases, according to the Polk Sheriff's Office.

So State Senator Paula Dockery doesn't want to cost the state too much money? But she is okay with letting the sick and elderly fight the battles? Here is more from the Pascell's daughter who is helping them fight to keep their home.

'It's very time-consuming, and it's emotionally draining,' said Houle, a child-support investigator in New York. 'My parents are in their late 70s; they can't do this stuff. They've had (the home) since 1985. They've been through three hurricanes and rebuilt the darn thing. To have something like this — it's very stressful. I'm sure the stress contributed to my father's heart problems. He had a triple bypass (operation) in October.'

They don't even notify the last known owners about it...except in one county.

Caraway said she knows of only one county in Florida — Miami-Dade — that mails a notice to the last known property owner when a transfer deed is filed. The Polk office is doing a cost analysis of adding that procedure, but Caraway said in a time of tight budgets such a change is unlikely.

Too costly to notify the last known property owner?

Here's the real shocker:

Suzan Weiss, a detective with the Polk Sheriff's Office,said "it's easy to file fraudulent records because county offices don't require any identification from those submitting the records. She said quit-claim deeds can be filed by mail or anonymously dropped in baskets at clerks' offices."

Well, then, no wonder they did not even know that Maria Blanco was on probation for mortgage fraud when she filed another fraudalent claim that is harming the health of a couple in their late 70s.

[madfloridian]

1. "county offices don't require any identification from those submitting the records."

"Suzan Weiss, a detective with the Polk Sheriff's Office,said "it's easy to file fraudulent records because county offices don't require any identification from those submitting the records. She said quit-claim deeds can be filed by mail or anonymously dropped in baskets at clerks' offices."

So you can steal someone's home, mortgage it to the hilt, and not have to even give identification.

[flvegan]

2. Having ID wouldn't help.

The person submitting the deed would likely be the Grantee, not the Grantor since these are quit claim deeds.

[madfloridian]

3. You can't take a breath without ID anymore in this country.

SO don't tell me having ID won't help cut down on the fraud.

They are taking over this person's property. They are doing it while already under investigation.

[flvegan]

8. At least half of docs recorded in Florida are done via the mail

Another huge percentage are dropped of by a runner in vast quantities. How much staff do we hire, and with what money do we pay them, to check ID and notate who dropped off what?

They're taking over their property on paper, that's all. There's a relatively easy remedy, one which as I stated below, the folks that have paid $7500 in legal fees are getting screwed by their lawyer.

Even with ID, many of these cases are perpetrated by folks fooling a notary with fake IDs. Just as easily going to fake a county clerk.

[madfloridian]

11. "They're taking over their property on paper, that's all."

I would think the people it happens to would not think it was such a simple thing. If you don't know your property has been taken over, why would you do anything at all?

Of course the problem needs fixing. There's no excuse for fraud being that simple.

[flvegan]

12. I'd like to know if they got their prelim and actual tax bills.

They go to the current owner of record's address, and show the current owner. Not getting one, or getting one with someone else's name on it would be the first indication.

[madfloridian]

19. Maybe the real owner would not get it. Just the fraudulent one.

So little checking is done.

[davsand]

4. Quit Claim deeds are not even recognized in some states.

I'm kind of surprised anyone could get a loan based only on ownership conveyed with a Quit Claim. It does get used sometimes (probably the most common use I have observed, anyway) in a divorce situation to convey ownership from joint to just one person--but in a case like that there would also be divorce paperwork on file to document that. I'd think those lenders would be a lot more careful with their money.

State law varies, but it sounds like Florida really needs to tighten that up a bunch! I'm not sure how doing that would "cost" the state anything, however.

:shrug:


Laura

[madfloridian]

6. Looks like in this case they took out the loan the same day as the quit claim.

Just think....if the clerk's office had notified the owners right away by mail how much easier it would have been.

But they do not consider it cost worthy, and only one county does it. There don't seem to laws about it at all.


"The couple, Albert and Nancy Pascell of upstate New York, eventually learned a quit-claim deed had been filed the previous November by a man and woman from Tampa. The deed, filed with the Polk county clerk's office, shows the property ceded to Maria Blanco and Armando Borges.

The same day, Blanco and Borges took out a $45,000 mortgage on the home, according to Merritt, the Pascells' lawyer.

Since then, the Pascells have been engaged in a legal struggle to reclaim undisputed ownership of a property they say they never gave away. Nancy Houle, the Pascells' grown daughter, has headed the effort despite living in New York. She said her parents have spent $7,500 in legal fees on a home they bought outright for $3,000 in 1985. ..

Blanco, who was on probation at the time of the Frostproof transaction, is a suspect in several other fraud cases, according to the Polk Sheriff's Office."

[flvegan]

5. $7500 in legal fees? They're getting hosed.

File suit to Quiet the Title. The alleged new owners and lenders get served. They have to come in and prove that they got consideration. If there's a lender, then there's a title company somewhere involved, and the underwriter would be on the hook to pay that mortgage off. Most decent title underwriters in Florida won't insure over a quit claim deed either, for this very reason.

There's even been talk of owner's title policies that cover this sort of thing. IOW, insuring not just the past but also the future without incurring an ongoing premium.

[madfloridian]

7. In the article it says they target paid for homes and unoccupied homes.

Seems they are second homes.

This still leaves the burden on the homeowner way too much.

[flvegan]

9. I agree, it's an unfortunate burden

Like any other sort of identity theft.

[Hassin Bin Sober]

10. I guess this is why everyone wants a 24 month chain of title for refis....

.....and some/most? lenders won't refi in the first 6 months after transfer.

[flvegan]

13. The underwriter I work for goes back 30 years on the property

20 years on the names, unless we can find a previous insurable deed. 24 month chains aren't worth much, at least not in this state.

[Raven]

14. Don't signatures on deeds have to be notorized in FLA? If so, then

there was a notary public licensed by the state involved. As to the burden of proof in a case like this, I guess the real owners would have to bring a Action to Quiet Title and, unfortunately, they would have the burden of proving the house had not been validly conveyed.

[madfloridian]

16. Yes, they have to be notarized.

Somehow they get around it.

[madfloridian]

15. Another case...use of "quiet title"...they had to agree to waive action?

Someone explain this part of the article to me in simple terms. Why would they agree not to pursue action?

xxxxxxxxxxxxx
"Last March, someone who may never have set foot inside Sunset Ridge filed a simple legal document with the Polk County Clerk of the Court's Office and suddenly claimed ownership of the house with a full-sized pool. The document, known as a quit-claim deed, asserted that the home's owners, Martin and Penny Knight, had surrendered title for a mere $10.

That single legal filing thrust the home's owners into a legal challenge to invalidate the deed, which bore their purported signatures.

In December, Circuit Judge Roger Alcott issued an order dismissing the quit-claim deed as fraudulent and re-asserting the Knight's ownership of the house.

..."The deed listed the Knights' residence as Richmond, Va., giving an address that actually belongs to a Pizza Hut. The deed was notarized by a Gina Montana, with a stamp from the Commonwealth of Virginia, with signatures purportedly from the Knights and two witnesses. Virginia authorities said no one named Gina Montana is registered as a notary there.

Soon after the deed was filed in Polk County, someone using the name Ziaullah Durrani applied to Washington Mutual Bank for an equity loan on the property.

Hardin and Associates, representing the Knights, filed a 'lis pendens' document with the county clerk's office last July. Such a filing alerts potential buyers and lenders that a property is the object of a pending suit. Hardin followed with an affidavit in which the couple declared they did not sign the March 1 deed and did not know Rodney Hoo.

The process resulted in Alcott's Dec. 2 'quiet title' ruling to invalidate the quit-claim deed. As part of the order, the couple agreed to waive any action against Washington Mutual, now part of JP Morgan Chase. A spokesman for Chase declined to comment."

[dysfunctional press]

17. what is a "quit-claim"..?

for those of us unfamiliar with it...

[csziggy]

18. A quit claim deed just says that whoever signs it agrees not to contest the deed

It does not guarantee that they have any claim to the property.

Usually you get a warranty deed that warrants that the people signing have rights to sign over the property.

Part of our farm was signed over on a quit claim deed. After we had purchased the property and gone through all the steps, the survey we had done discovered that there was a wedge left out of the property description on the warranty deed because of the way the road curves in front of the farm. So our representative went back to the thirteen heirs we bought the land from and had them all sign a quit claim deed for that wedge.

[dysfunctional press]

20. well- if there's a way to corrupt something to make a buck, florida's going to be first in line...

how much better this country would be if that cesspool had never entered the union.

dramatic ocean level rise can't come quick enough for some of us...although a nice-sized eruption of the cumbre vieja volcano in the canary islands might do just as nicely.

[FlaGranny]

21. Way to go there -

dismiss a whole state that has to endure all the criminals coming from northern states and other areas to the south of us. Where do you live - Nirvana?

We have a lot of crime because of the transient population, you know, the ones who come here because of the climate? Probably there are a couple from your area of the country.

Edit: Just checked your profile. Yes, indeed, MORE than a few from your area of the country.

[dysfunctional press]

23. funny how they all seem to end up in florida, huh...?

but then- look at a map- shit always runs downhill...and apparently it all collects in florida. maybe that's why it looks like a big bulging colostomy bag...:shrug:

[MiniMe]

22. Don't people buy title insurance anymore?

It is a problem in Florida because some people don't live there the entire year, they just winter there.