Saturday, September 26, 2009

Cops Let Would-Be Foreclosure Stripper Off Hook; Pleads Ignorance Of The Law, Agrees To Stop, Refunds Money On Sale Of Cabinets, Yanks Craigslist Ad

In Medford, Oregon, the Mail Tribune reports:
  • Mike Vaughan was surprised when an elderly couple was willing to pay $60 for some old kitchen cabinets from an east Medford home that is heading into foreclosure. The couple had seen an ad the 30-year-old Vaughan posted on Craigslist Wednesday that offered to sell almost every fixture in the house on Cedar Links Circle — including the kitchen sink. Vaughan, who said he didn't think anybody would really want the old cabinets, was even more surprised when two Medford police fraud investigators approached the couple as they were leaving Thursday. They informed the couple it was against the law to sell anything attached to the house.

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  • The two Medford fraud investigators, alerted to the ad by some observant citizens, decided not to press charges against Vaughan, who previously lived in the house, which was owned by his father-in-law. "We were able to catch it in time so that no crime was committed," said Medford Detective Sgt. Mike Budreau. [...] After questioning Vaughan, the detectives determined he didn't realize he was doing anything illegal and he agreed to stop. He had been paid $60, but the couple planned to come back later after he removed the cabinets from the wall. After a discussion with the detectives, Vaughan gave the money back and removed the Craigslist ad, which offered to sell sinks, a mirror, bedroom doors, a laundry door, cabinets, light fixtures, ceiling fans, stair rails, attic stairs and an old water heater. [...] He said he had done a lot of work on the house, which his father-in-law bought with the provision that Vaughan would make the monthly payments. He said the house wasn't in foreclosure yet, though he said it would be at the end of the month.

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  • Budreau said banks and other lenders have been sending letters to police agencies advising that it is illegal to take items that are attached to a house during a foreclosure action. He said the key issue for law enforcement is whether there is an intent to defraud someone, but he said the issue could get into a gray area depending on the status of the loan. "It does get tricky," he said, noting that many police agencies have relatively little experience dealing with foreclosures. [...] At this point, Medford police would prefer to educate people about the law rather than put anyone in jail, [Detective Brenda] Garich said.

For the story, see Police on alert for attempts to sell pieces of forceclosure. foreclosure fixture stripping apple foreclosure stripping