Ventura DA Issues Advisory On Fractional Interest Deed Transfers In Foreclosure Rescue Scams

In Ventura County, California, District Attorney Gregory D. Totten has issued an advisory warning county homeowners facing foreclosure to look out for and avoid fractional interest deed transfers(1) promoted by foreclosure rescue scam artists as a way to avoid foreclosure.

Among other things, the advisory warns that, while the County Clerk Recorder's Office may be legally required to accept properly prepared documents for recording, it doesn't necessarily mean that the act of recording a fractional deed is lawful. Among the potential unlawful acts that may be committed in connection with a fraudulent scam involving a fractional interest deed transfer in California (which can be found in the California Penal Code and the California Civil Code), according to the advisory, are:

1. recording a false or forged document (Penal Code Sec. 115),
2. foreclosure consultant fraud (Civil Code Sec. 2945.4),
3. grand theft by false pretenses (Penal Code Sec. 487), and
4. fraudulent conveyance of land with intent to delay creditors (Penal Code Sec. 531),

For more, including an explanation of the fraudulent deed transfer scam, see "Fractional" Deed Advisory (English version) (Spanish version).

Go here for a brochure on the Ventura County DA's Real Estate Fraud Prosecution Program (English) (Spanish); and go here for the DA's Real Estate Fraud Unit webpage.

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

(1) Anyone wanting some perspective on how the "fractional interest" home title transfer scam works (fractional interest title transfers on the eve of foreclosure, use of backdated deeds for this purpose, abuse of the Federal bankruptcy court system, conveyances to unwitting debtors in bankruptcy in far away places, the frequency of use of this scam, and other interesting points), you can read this detailed narrative from a real live case decided by a Texas bankruptcy court.