Fraudulent Liens

[dvarapala]

So a friend of mine from IL is in the process of selling her house which che has owned since 1994. The title search turned up a $30,000 lien against the house that neither she nor her husband knew anything about, filed in 1997 by a person they had never heard of. They looked the person up on LinkedIn and found a very minimal profile - the kind of profile scammers put up on Facebook when they're trying to catphish somebody.

HTF does this happen? And how does this scammer expect to get paid? :shrug:

Update: Turns out the lien is legit, they took our a loan in 1997 and forgot all about it.

[Iron Chef]

So a friend of mine from IL is in the process of selling her house which che has owned since 1994. The title search turned up a $30,000 lien against the house that neither she nor her husband knew anything about, filed in 1997 by a person they had never heard of. They looked the person up on LinkedIn and found a very minimal profile - the kind of profile scammers put up on Facebook when they're trying to catphish somebody.

HTF does this happen? And how does this scammer expect to get paid? :shrug:

Is it a mechanic's or contractor's lien? They should be able to dispute it and have it removed fairly easily.

[Mike Mercury]

my father filed quite a few leins for construction work that he never got paid for (or only partially paid for).

There are two types of fake/illegal/fraudulent liens...

* a valid claim, but one where the amount of the lien is grossly exaggerated.

* a invalid claim; flat-out fictitious

[dvarapala]

Is it a mechanic's or contractor's lien? They should be able to dispute it and have it removed fairly easily.

Details are sketchy, as I'm hearing them all second-hand through a non-technical filter. :D

I've asked her to send me a copy of the actual paperwork. Stay tuned...

[RMVette]

:waiting:

[Rodnok1]

Could have been something the previous owners owed, I don't understand why they aren't required to send you notification when a lien is filed.
Doesn't title insurance cover old liens against previous owners?

[dvarapala]

Could have been something the previous owners owed, I don't understand why they aren't required to send you notification when a lien is filed.
Doesn't title insurance cover old liens against previous owners?

She contacted the people who sold the house to her - they had no liens when they sold it. Plus this lien has my friend's and her husband's signatures on it. Oddly enough the lien document has 6 pages, but the page with their signatures on it says "page 2 of 5."

My understanding is that title insurance is to protect the lender; if the owner wants coverage, they have to cough up extra $$$ which I'm sure she didn't do.

[MadInNc]

Seems like this a long play scam and fairly just getting notice now as when we bought the new joint I was inundated with offers providing insurance against false liens. Like $100/ yr. WTF

[dvarapala]

Is it a mechanic's or contractor's lien?

Neither - it is a Trust Deed.

[Thunder22]

same thing just happened when i sold my parents house. The builder had a construciton lien that we knew nothing about, even through 2 refi's. It was a sh*t show to resolve.

[Mick]

There is a lot of information about stuff like this on investopedia, I would suggest you start reading. I know some stuff about liens in NJ, but this is another area of law that varies greatly from state to state. What I know about NJ is probably completely worthless when dealing with an IL property.

What I do know is that a "Trust Deed" is a vehicle used in some states instead of a mortgage, and IL is one of a few states where you can use either a Trust Deed or a mortgage. If your friend and her husband signed the deed, it sounds like they took out a home equity loan.

[dvarapala]

same thing just happened when i sold my parents house. The builder had a construciton lien that we knew nothing about, even through 2 refi's. It was a sh*t show to resolve.

Did you have to track down the contractor after umpteen years and get him to releasse the lien? That must have been a bitch. :yesnod:

[dvarapala]

What I do know is that a "Trust Deed" is a vehicle used in some states instead of a mortgage, and IL is one of a few states where you can use either a Trust Deed or a mortgage. If your friend and her husband signed the deed, it sounds like they took out a home equity loan.

You are correct. They took out a personal loan secured against their house, and used the money to buy a car. :rolleyes:

Now after so many years she has no record of having paid off the loan, nor does the loan company (Beneficial Illinois Inc.) appear to be in business anymore. Looks like she's ****ed. :sadangel:

[Mick]

You are correct. They took out a personal loan secured against their house, and used the money to buy a car. :rolleyes:

Now after so many years she has no record of having paid off the loan, nor does the loan company (Beneficial Illinois Inc.) appear to be in business anymore. Looks like she's ****ed. :sadangel:

Sounds like she is going to have to tell it to the Judge. :yesnod:

[snide]

You are correct. They took out a personal loan secured against their house, and used the money to buy a car. :rolleyes:

Now after so many years she has no record of having paid off the loan, nor does the loan company (Beneficial Illinois Inc.) appear to be in business anymore. Looks like she's ****ed. :sadangel:

Looks like that loan is going to benefit Illinois... :hide:






ICNLT

[MadInNc]

You are correct. They took out a personal loan secured against their house, and used the money to buy a car. :rolleyes:

Now after so many years she has no record of having paid off the loan, nor does the loan company (Beneficial Illinois Inc.) appear to be in business anymore. Looks like she's ****ed. :sadangel:

Re Trust Deeds, Pay $21.97 and with copies of signatures and a “neutral” third party ya can F’em all:seasix:

[Anjdog2003]

fOZ-MySzAac

[The_Dude]

fOZ-MySzAac

Bill :sadangel:

[Anjdog2003]

Bill :sadangel:




Keith Richards. :barnbabe:

[86RAG]

So a friend of mine from IL is in the process of selling her house which che has owned since 1994. The title search turned up a $30,000 lien against the house that neither she nor her husband knew anything about, filed in 1997 by a person they had never heard of. They looked the person up on LinkedIn and found a very minimal profile - the kind of profile scammers put up on Facebook when they're trying to catphish somebody.

HTF does this happen? And how does this scammer expect to get paid? :shrug:

Update: Turns out the lien is legit, they took our a loan in 1997 and forgot all about it.


How the **** do you forget taking out a 30K loan??? :slap:

[snide]

How the **** do you forget taking out a 30K loan??? :slap:

Provide us with a list of everything you purchased in 1997. :bigears:

[Bill]

Provide us with a list of everything you purchased in 1997. :bigears:

I can provide you a list of everything I purchased with FINANCING in 1997. That kinda narrows it down for most people.

[Thunder22]

Did you have to track down the contractor after umpteen years and get him to releasse the lien? That must have been a bitch. :yesnod:

You'll never believe this, the builder went out of business as expected, but guess which law firm he still used?

The same one I was using to sell the house, but different attorneys in the same firm.

The builder was and is a crook, he did it to over 100 people, a major scam.

It's behind us now, closed chapter. I'll leave it at that.

[Mick]

I can provide you a list of everything I purchased with FINANCING in 1997. That kinda narrows it down for most people.

Yes, I can rattle off not only every time in my life that I borrowed money, but every car I ever bought, complete with month and year for each such event.

[Thunder22]

Yes, I can rattle off not only every time in my life that I borrowed money, but every car I ever bought, complete with month and year for each such event.

same here, unfortunately, the lien was on my parent's house :(

[86RAG]

Provide us with a list of everything you purchased in 1997. :bigears:

I sure as hell don't remember everything I purchased in 97, but am damn sure I'd remember if I took out a 30K loan! :slap::slap:

[BayouCountry]

There are unscrupulous contractors who pocket money instead of paying their subcontractors. The subcontractors then go after the home owner who is left holding the bag.

My daughter's soccer coach, owner of Ponderosa Glass, was caught up in this scam.

Couple's home in jeopardy due to contractor

The couple decided to rebuild their home and in December 2008, the home was completed. They made their final payment to HR Construction and owner Jack Aleshire that month.

But then, the Mannings life took an abrupt turn. Within days, Meeks Lumber contacted them demanding money. So did Doug Bolton's Floor Show and Ponderosa Glass.

In all, the couple heard from six subcontractors that HR Construction hired to either work on or supply materials for their home. All six said Jack Aleshire of HR Construction left town without paying them. All six held the Mannings responsible for making those payments and all six placed liens on the Manning home.

"It's wrong. There's just no other way. It's just so wrong. We hired a contractor to replace a home and we paid our bills in good faith. We're hard working people," Joann said.

The subcontractors demanded a total of $60,000 from the Mannings. That's on top of the $600,000 they already paid to HR Construction and Jack Aleshire.

"We paid the person with whom we had a contract with. We thought it was over with. I've used all my insurance money," Howard said.

The owner of Bob's Heating is one of the six subcontractors who placed liens on their home.
https://abc7news.com/archive/7429880/