Unmasking Complicated Mortgage Fraud Schemes

Here’s What Happened

Our client is a privately-held investment advisor dedicated to alternative investing including distressed and sub-investment grade debt. They hired us to perform asset, title, and mortgage fraud investigations into their $1,000,000+ mortgage loans.

In one case, the subject mortgage was in default for many years. The foreclosure process was stalled because title to the property had been transferred to various entities and individuals a total of 10 times since 1982. It was unknown whether the mortgagee (‘subject’ of the investigation) was the perpetrator or victim of title fraud.

The Pilum team got to work uncovering the true details of the case. Just a few of the tactics we used included:

*Performing detailed comparisons of the alleged buyer’s signature on the deed to the subject’s signature and handwriting from other recorded documents.
*Conducting interviews with former homeowners of the property and acquaintances of the subject in question.
*Tracing documentation of the title and mortgage transfer as far back as 1982.
*Taking a detailed look at the background and prior behaviors of the subject.

Through our investigation we discovered that the subject was in-fact behind all the fraudulent title transfers. We found that the subject had fought the foreclosure process numerous times, and also transferred title to multiple fictitious individuals and entities in an attempt to cloud title and stall foreclosure.

We even found that the subject engaged in similar title fraud schemes involving 13 other properties throughout New York City. In some cases, the subject would help the homeowner stay in the home while he “worked with the lender to modify the loan or short sale the property” for a monthly fee. In reality, he was engaging in foreclosure stalling tactics and nothing more. In other cases, he would advise the distressed homeowner that their property had been foreclosed, only to file fraudulent deeds transferring title to himself after they moved out!

With all of this new information available to them, our client presented the evidence we uncovered and obtained receivership of the property and rents while the foreclosure process continued.

What Can Pilum Do for You?

Whether you have questions about a single individual or property, or you simply want to ensure your portfolio is free of potentially devastating risks, the Pilum team will do the dirty work to investigate your holdings and help you secure or reclaim what is rightfully yours. Contact us today.