Industry News

Secrecy surrounds real estate debt removal schemes

Part 3: In-depth look at mortgage-elimination programs

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Editor's note: Federal investigators are looking into so-called mortgage elimination programs that claim to wipe out home mortgages or other forms of debt for consumers. In this three-part series, we provide a case study of one mortgage-elimination process. Part 1 explores the methods the group's proponents use to try to convince title companies and lenders that it has successfully eliminated mortgages. Part 2 follows the group's beliefs and why they think mortgage elimination is possible. Part 3 takes an in-depth look at the group's business model.   In elaborate mortgage elimination schemes that have caught the eye of federal investigators, the Internet appears to be the favored tool perpetrators use to communicate their message and market their services to consumers. The schemes promote processes by which consumers can quickly dismiss mortgages through a morass of property and legal filings.   Groups behind the schemes keep a low profile in the brick-and-mortar world, wh...