Debt Elimination Scheme
A debt elimination scheme involves a person or a company that promises a homeowner can get rid of their mortgage by sending certain letters to their lender asking that it prove the validity of the debt.
Premise Behind Debt Elimination Scheme
The premise behind the scheme is that the scammers falsely advise homeowners the Federal Reserve is a sham organization that defrauds homeowners by leading them to believe that a Lender’s Note is not proof of debt owed. This information is absolutely false and a complete scam. The problem the scammers have is that lender’s debts are real because they gave homeowners money to purchase and/or refinance, and the execution of the Deed of Trust and Note is evidence that a debt is owed. The scammers charge thousands of dollars in upfront fees to homeowners in exchange for a set of letters that they are encouraged to send to the lender to dispute the debt. The homeowner is encouraged to not make any more payments on the loan because the mere sending of the “letters” is supposed to be enough to invalidate the debt. Because this is a scam to get homeowners to pay money to the Debt Elimination company, the homeowners always ends up in a foreclosure. Sounds confusing huh? The scam gets worse because the Debt Elimination company will show up at the foreclosure and buy the homeowner’s home after they told them not to pay!!! This scam has been one of the longest running to date.
Debt Elimination