Posted by Tess on 12/6/08 8:19pm
Msg #271308
Deed fraud loophole in pol's sights
http://www.nydailynews.com/money/2008/12/05/2008-12-05_deed_fraud_loophole_in_pols_sights.html
BY WILLIAM SHERMAN
DAILY NEWS STAFF WRITER
Friday, December 5th 2008, 8:34 PM
A simple $10 letter could prevent a growing scam - deed fraud - exposed by the Daily News this week when a reporter "stole" the Empire State Building.
Under a law proposed by Brooklyn Assemblyman Nick Perry, property would not be able to change hands until the city sends a letter to the owner, who approves the transfer.
The small step could stop con artists from using dummied-up paperwork and easy-to-get notary stamps to "steal" property and register new deeds with the city Register's Office.
The scammers usually take out mortgages on the homes or buildings, disappear with the cash - and leave the real owners with a pile of legal problems.
"That couldn't happen if my bill becomes law," Perry said.
The News was able to take legal possession of the world-famous Empire State Building after the city accepted fraudulent documents just 90 minutes after they were filed.
The Register's Office is not required to verify ownership information - a big loophole exploited by thieves.
Properties throughout the city have been stolen in the scam with millions of dollars in mortgages taken out by the thieves.
In one case, a man posing as someone who had been dead 19 years deeded the dead man's property to himself. Then he sold it the mastermind of the scheme, who took out a $533,000 mortgage using fake identification and then vanished with the cash.
Under Perry's proposed legislation, the city must mail out the written notices verifying transactions to owners at least 30 days before new deeds are recorded.
"Each notice would cost between five and 10 dollars paid by the new owner," said Perry, explaining that he introduced the bill last July after homeonwers in his East Flatbush district told him they were victimized by the scam.
Anyone who submits fraudulent deeds would be subject to a $25,000 fine and imprisonment.
"I'm pretty certain the bill will become law in the upcoming [legislative] session," Perry said.
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Reply by LKT/CA on 12/6/08 8:59pm
Msg #271309
<<<In one case, a man posing as someone who had been dead 19 years deeded the dead man's property to himself. Then he sold it the mastermind of the scheme, who took out a $533,000 mortgage using fake identification and then vanished with the cash.>>>
A person dies...either his property is inherited or reverts to the state if there are no living heirs. Who was paying the property taxes on a dead man's property? After so long (5 years in CA) the property would have a tax lien placed on it, eventually seized and sold at a tax sale. Part of your story does not make sense.
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