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(Palm Beach Post)   Shady firm comes up with novel approach to help underwater homeowners: You deed us your house, you give us an upfront payment, you give us monthly payments, in return you get what you've got coming to you   ( divider line
    More: Florida, interest-only loan, default judgments, Coral Springs, homeowners, work product, payments, Paul Gellenbeck, clerk of courts  
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4500 clicks; posted to Business » on 17 Jun 2012 at 7:50 PM (5 years ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»

Voting Results (Smartest)
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2012-06-18 06:50:58 AM  
1 vote:
So, the same people who specualted in the real estate business and lost their asses are now trying to screw the banks (who the taxpayer bailed out) so they can turn around and screw the taxpayer again somehow.

Shoot everyone involved.
2012-06-17 11:00:23 PM  
1 vote:
I came across a business model that sounded similar to this.

Underwater home owner turns over title, company sicks a pack of lawyers to break the mortgage while home owner leases the property back from company, after three years company sells home back to home owner for fair market value.

This model was based on the idea that many mortgages were badly screwed up and open to breakage. Of course, I came across it as a job opportunity on Craigslist, so it might have been the lead-in for some kind of scam.
2012-06-17 10:06:43 PM  
1 vote:
Right up there with "soverign citizens", inmates who claim their name is a trademark and can't be used in court filings, and all of the "income tax ain't Constitutional, I ain't payin'!" folks.
2012-06-17 09:53:02 PM  
1 vote:
FTA I still have a little apprehension, but you have to be a gambler in real estate. You go out on a limb sometimes," said Lowe, who owes about $367,000 to her lender. "Sometimes it works. Sometimes it doesn't."

2012-06-17 08:06:50 PM  
1 vote:

kronicfeld: Ambivalence: How do you deed a house to someone when the bank holds the deed (due to holding lien on the house).

The bank doesn't "hold the deed." The deed is recorded in land records. You can deed away the house all you want. You just run the risk of the bank finding out and accelerating your loan for violating the terms of the loan contract that forbids transferring your interest in the house. And the purchaser runs the risk that he's on the hook for not honoring the lien of record.

As far as I can tell, the whole thing hinges on Shady Distrust Co., Inc. filing a preemptive lawsuit against the bank saying "we acquired this title, therefore you no longer have a mortgage on it, you just have an unsecured debt with the borrower", and hoping that the bank is too busy/disorganized to respond so that it gets a default judgment. If so, Shady believes it owns the deed free and clear, while the borrower is left to hope that when the bank realizes it has no chance of recouping its loss, it will agree to sell the debt at a huge discount to Shady... at which point the borrower discovers that even if Shady acquires a $1M debt for $10K, it's still a $1M debt.

Unfortunately for Shady, I suspect that they will discover about six months from now that almost all of those default judgments it is relying on will get challenged and overturned, at which point I suspect that the principals abscond with the "processing fees" leaving the deeds nominally owned by a defunct and bankrupt shell company. And for that part, I'm going to need way more popcorn.
2012-06-17 04:49:10 PM  
1 vote:
How do you deed a house to someone when the bank holds the deed (due to holding lien on the house).

You can't sell a house without paying off all the liens, and you certainly can't just give it away with an outstanding lien.

Can you?
2012-06-17 03:10:34 PM  
1 vote:
I can't possibly care what happens to a real-estate speculator who gambled and lost.
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