Minnesota Woman Signs Away Title In Refinancing Scheme
(orig. post 1-1-07; revised 6-26-07)
In an attempt to stave off foreclosure, a Minneapolis woman unwittingly signed over title to her home of twenty years in what she thought was nothing more than a refinancing transaction, according to this St. Paul Pioneer Press report.
The victim only found out about it when she opened one of a number of letters addressed to an unknown individual that began arriving at her home after she consummated the purported refinancing. The letter was a notice about "requiring a rental permit."
Shortly thereafter, police and a city inspector came to her home informing her, among other things, that she was no longer the home's owner, that a rental permit was needed for the home, and that she was an illegal tenant. Ultimately, the city stuck an "unlawful occupancy" notice on her door for failing to obtain a rental license and having too many people on the property.
She contacted the Legal Aid Society of Minneapolis, where consumer protection attorney Kristen Siegesmund arranged to have the home's property records researched and ultimately, confirmed the worst. The title to the victim's house had been transferred to a California woman whose name had been appearing on the letters that were being delivered to the victim's home.
Minnesota has an "anti home equity theft" law that was signed into law about two years ago. Reportedly, about 100 cases a year get filed around the Twin Cities, estimates Daniel Tyson, an attorney with the firm Best & Flanagan in Minneapolis. In spite of the new law, he said the scams continue and commented, "They're brazen about it, and there's real fraud going on."
The law, known as 325N or the anti-equity stripping statute, limits how much a foreclosure rescue operator can profit from one of these "rescue" deals to 18 percent of the home's value. The law is set to expire in 2009. With an eye to the expected wave of foreclosures ahead, attorneys want to extend it and beef it up in the state's upcoming legislative session.
Note:
For eligible residents of Minnesota looking for low cost legal services, a good place to start your search is LawHelpMn.org, which is a directory of Minnesota's non-profit, legal aid providers. You can conduct your search by your county of residence.
In an attempt to stave off foreclosure, a Minneapolis woman unwittingly signed over title to her home of twenty years in what she thought was nothing more than a refinancing transaction, according to this St. Paul Pioneer Press report.
The victim only found out about it when she opened one of a number of letters addressed to an unknown individual that began arriving at her home after she consummated the purported refinancing. The letter was a notice about "requiring a rental permit."
Shortly thereafter, police and a city inspector came to her home informing her, among other things, that she was no longer the home's owner, that a rental permit was needed for the home, and that she was an illegal tenant. Ultimately, the city stuck an "unlawful occupancy" notice on her door for failing to obtain a rental license and having too many people on the property.
She contacted the Legal Aid Society of Minneapolis, where consumer protection attorney Kristen Siegesmund arranged to have the home's property records researched and ultimately, confirmed the worst. The title to the victim's house had been transferred to a California woman whose name had been appearing on the letters that were being delivered to the victim's home.
Minnesota has an "anti home equity theft" law that was signed into law about two years ago. Reportedly, about 100 cases a year get filed around the Twin Cities, estimates Daniel Tyson, an attorney with the firm Best & Flanagan in Minneapolis. In spite of the new law, he said the scams continue and commented, "They're brazen about it, and there's real fraud going on."
The law, known as 325N or the anti-equity stripping statute, limits how much a foreclosure rescue operator can profit from one of these "rescue" deals to 18 percent of the home's value. The law is set to expire in 2009. With an eye to the expected wave of foreclosures ahead, attorneys want to extend it and beef it up in the state's upcoming legislative session.
Note:
For eligible residents of Minnesota looking for low cost legal services, a good place to start your search is LawHelpMn.org, which is a directory of Minnesota's non-profit, legal aid providers. You can conduct your search by your county of residence.
posted by Home Equity Theft Reporter at 9:35 AM
