Mortgage forfeiture is a fraudulent practice where scammers convince home buyers that their mortgage loan is invalid and should not be repaid. The scam is based on misrepresented court rulings, but most courts can spot the fraud. Scammers use various invalid legal arguments to get home buyers to submit papers that invalidate the mortgage lender’s credit on the home, giving the buyer full interest in the property. When the original lenders find out, they usually take the home buyer to court, and the hope for scammers is that the lender will settle out of frustration.
Mortgage forfeiture is a fraudulent practice perpetrated by individuals or companies who try to convince home buyers that their mortgage loan is invalid and therefore should not be repaid. These fraudulent companies, basing their arguments on misrepresented previous court rulings, claim that mortgage loans are illegal. The idea behind the mortgage elimination is to get mortgage lenders to settle when the case goes to court. Most courts can spot the scam, however, and it takes very little time to find the mortgage company in favor, at which point the home buyer is in even more serious financial trouble.
It is common during times of financial turmoil for scam artists and thieves to exploit the frustration of consumers who cannot pay their bills. In the early 21st century, the economic collapse focused on the real estate sector, with many homes closing when buyers couldn’t repay their mortgage. As a result, mortgage avoidance has become an increasingly popular scam that tricks both innocent people in need and those simply trying to get around paying their mortgage.
The basic premise behind mortgage elimination is that the mortgage loan itself is illegal and therefore invalid, meaning that the borrower is under no obligation to pay it off. The legal arguments used to make this claim vary. In the United States, some of these arguments are based on the theory that Federal Reserve Notes, which the lender advances to the borrower in a loan agreement, are not really legal tender. Another claim states that since the money is not actually passed from the lender to the borrower in the mortgage loan, the borrower has no reason to repay the money.
While all of these theories are invalid, the perpetrator of the mortgage elimination scam uses them to get the home buyer to submit papers that invalidate the mortgage lender’s credit on the home. This essentially gives the buyer full interest in the property. He then he uses this stake to apply for a separate loan. With this loan, the home buyer then pays the group that perpetrated the scam.
When the original lenders find out, they usually take the home buyer to court. At that point, some representatives of the mortgage elimination scammers will try to push the invalid arguments before the court. Ultimately, the hope for scammers is that the lender will settle out of frustration. In reality, the court will reject these arguments and the consumer will be in difficulty, not only for the mortgage payments, but also for the penalties that he may have suffered together with the court costs.
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