Posted by Rob FL on May 27, 1999 at 18:03:18:
I work for the largest title company in Florida. Our claims department has told me that Miami-Dade and Broward Counties (home of Miami and Fort Lauderdale) have more claims in those two counties than any other place in the whole USA. Scary.
Unethical use of land trust - Posted by Matthew Chan
Posted by Matthew Chan on May 27, 1999 at 02:24:56:
Just thought I’d share a little story I heard from an attorney today. Apparently, there are some unscrupulous individuals who know the power/potential of the land trust and simply abuse it.
Apparently once the property is deeded into the trust, this crook hides behind the trust and deliberately doesn’t make payments as he should but sucks down all the rents he is receiving from the property. As many of you know, it takes a little bit of work to get around the trust.
Jeez, it’s this kind of stuff that gives investors a bad name. It’s not enough that he can do deals but he has to get greedy by stiffing some poor lender.
Why Always in Florida? - Posted by Carmen
Posted by Carmen on May 27, 1999 at 17:55:09:
There’s also a very large “scam” recently uncovered in South Florida perpetuated by some brilliant people who put their NAMES on the trust (the “Joe Blow Trust” - DUH!), and every day in the paper there are more sad stories about how they not only stopped paying the lenders, but they stopped paying the water, electric, etc. Foreclosure is imminent; a court case is being prepared; county housing agencies are scrambling to find new homes for those financially disadvantaged people living in the apartments/homes. Today, one of the “owners” made a partial payment to the water company (after being threatened with jail time if he did not), staving off the eviction (by the Housing Authority - unsafe conditions)of a few hundred poor souls who have supposedly been paying their rent on time all this time…
It’s tough to appear legit when fighting these types of very visible stereotypes. Sigh!
Re: Unethical use of land trust - Posted by Bill Gatten
Posted by Bill Gatten on May 27, 1999 at 12:26:05:
The lender should have no more problem foreclosing with the trust in place than they would without it. The issue here is not with the power of the trust, it’s with the power of being a scum bag. Trying living in the L.A. area of Southern California… you’ll see that power up close.
It should be noted that pre-existant liens can’t be thrwarted by the trust, as the granting of the property to the trust is subsequent to them and do not frustrate the lender’s foreclosure rights.
Bill
Re: Unethical use of land trust - Posted by JPiper
Posted by JPiper on May 27, 1999 at 10:20:47:
This has been going on since the beginning of time…even before anyone considered using land trusts. Sad…but true. There are crooks in every walk of life.
JPiper
Re: Unethical use of land trust - Posted by Bronchick
Posted by Bronchick on May 27, 1999 at 09:56:13:
That is called “equity skimming” and is a crime in most states.