A recent boom in Nevada real
estate has led many Nevadans to become rich in equity. While they
may not have a lot of extra cash lying around, they do have equity in
their Nevada homes. These equity rich Nevadans could have as much as
a hundred thousand dollars or more in equity in their homes. With the
increase of Nevada home wealth has come a new type of scam artist. These
cons prey on Nevada homeowners with a lot of equity by promising them
that they can completely eliminate their mortgage.
Nevada mortgage elimination scams involve companies claiming that for
a few thousand dollars, they can eliminate Nevada homeowners’
mortgages. After paying the fee, the Nevada homeowner will supposedly
have a free and clear title to their home
without having to pay off any more of their mortgage. This is actually
a huge scam however.
With the Nevada mortgage elimination
scam, the Nevada homeowner is asked to place their home in a trust.
The Nevada mortgage elimination company is the trustee of the home.
The trustee then files a letter of complaint with the mortgage company.
This letter generally has no grounds, and only gives the mortgage company
about ten days to respond. If the mortgage company doesn’t respond
within ten days (which they usually don’t) the trust claims that
the Nevada homeowner is now free from their mortgage. They then file
the trust with the local register of deeds for a release of the Nevada
home’s title, using a questionable power of attorney procedure.
This makes it appear that the Nevada
home is now owned without a lien. There are legalities of gaining
the title this way that range from foggy and dubious to outright fraud.
Next, the trustee takes out a Nevada home equity loan, claiming clear
title to the home, cashes the check, and promptly disappears. The resulting
chaos often leaves the original Nevada homeowner with a bunch of lawsuits,
visits from the police and the obligation to pay not just one, but two
mortgages. Nevada
homeowners can avoid being fooled by this scam by recognizing that you
cannot waive a Nevada mortgage obligation without paying off the loan.
Generally, if it sounds too good to be true, it is.