Two Oakland-Area Women Face 36 Felony Charges In Alleged "Fractional Interest Deed Transfer" Foreclosure Rescue Bankruptcy Scam

In Northern California, the San Jose Mercury News reports:

• Alameda County District Attorney investigators arrested two women in Livermore on Wednesday for allegedly running a real estate scam targeting homeowners facing foreclosure. Sonia Alburez, 37, owner of the Community Home Saver Program, and her employee Verena Silva, 42, of Union City, are facing 36 felony counts in at least 14 incidents throughout Alameda County. In the alleged scam, homeowners paid a fee -- between $1,500 and $2,500 each -- to have the women stall the foreclosure, but ended up losing their homes anyway.

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• According to the District Attorney's office, the suspects would have property owners transfer a fractional interest of their property to fictitious company names via a grant deed. These companies had no real assets nor did they do any legitimate work. These company names were then added to the deeds at the recorder's office and the two women would file a petition with the U.S. Bankruptcy Court. The petitions would automatically stall foreclosure proceedings. But what the homeowners didn't know was that the banks that held the liens on the home would go to the bankruptcy court, get the grant deed overturned and foreclose the home anyway. Prosecutors believe there may be more victims.

For the story, see Women accused in alleged loan scam (Women reportedly said they'd stall foreclosure, but victims still lost their homes).

See also: San Francisco Chronicle: 2 arrests in Alameda County foreclosure scam.

For story update, see Alleged real estate scammer arraigned (Woman hit with eight felony counts after duping homeowners who still wound up in foreclosure).

Editorial Note:

As reported in an earlier post, some who are allegedly pulling this scam are actually putting the fractional ownership interest in the home facing foreclosure in the name of an unwitting person who recently filed for bankruptcy. The perpetrators are getting the names of recent bankruptcy filers in far away places by simply checking online bankruptcy resources and selecting individuals' names at random. For more on this, see Texas AG, Judge Slam Mortgage Rescue Operators In Fractional Interest "Foreclosure Delay" Bankruptcy Scam.

Go here for other posts on fractional interest deed transfer, foreclosure rescue bankruptcy scams.