A new scam! Apparently these folks took a page from Illinois Deed Provider's playbook. Illinois Corporate Compliance contacts corporations to inform them that for a fee of $150, they will file your corporate minutes with the State.
You do not need to file your corporate minutes with the State in Illinois. And as far as I know, even if you wanted to file your minutes with the State, you could not do so. There is no reason to do this, and there is no fee from the State to file minutes. You do need to file your annual report along with a fee, but that fee goes directly to the Illinois Secretary of State.
It IS very important for Illinois corporations to prepare their annual minutes, but they need to go in your minute book, not filed with the State. This can be difficult to remember to do unless you have an attorney prepare them for you every year. Most of our corporate clients have us act as their registered agent, so each year, when the annual report is due, we make sure their "corporate house" is in order by preparing minutes, and assisting with filing the annual report.
Always be on the lookout for private companies trying to pretend to be part of the government.
Showing posts with label scam. Show all posts
Showing posts with label scam. Show all posts
Thursday, April 23, 2009
Wednesday, January 30, 2008
Fake second mortgages
Why would anyone give a "fake" second mortgage? Here's how the scam works. Let's say the seller wants $100,000 for their house. The buyer does not have a down payment, and does not want to pay mortgage insurance. The buyer, seller, and sometimes the real estate agent, loan officer, and title company all conspire to increase the purchase price to $120,000 with the seller "financing" $20,000. The $20,000 seller financing is shown on the settlement statement. There is an actual note and mortgage signed by the buyer at closing evidencing the $20,000 debt. In extreme cases, the title company will even record the mortgage (though most do not).
So far, this is completely legitimate. What happens next though, is that the mortgage is immediately released, and the note cancelled. I have actually heard tell of the president of a big title company in our area who actually makes a big show of tearing up the note at closing.
As soon as that is done, it becomes a $20,000 gift from the seller to the buyer. And it becomes mortgage and RESPA fraud. The end lender is led to believe that the purchase price is actually $120,000, and that the buyer will be making payments to the seller on the $20,000. The truth is that the house is only worth $100,000 and the buyer has absolutely no investment in the property. Not really any different that under the table kickbacks, except that they put it on the table first.
www.thomasmoens.com
So far, this is completely legitimate. What happens next though, is that the mortgage is immediately released, and the note cancelled. I have actually heard tell of the president of a big title company in our area who actually makes a big show of tearing up the note at closing.
As soon as that is done, it becomes a $20,000 gift from the seller to the buyer. And it becomes mortgage and RESPA fraud. The end lender is led to believe that the purchase price is actually $120,000, and that the buyer will be making payments to the seller on the $20,000. The truth is that the house is only worth $100,000 and the buyer has absolutely no investment in the property. Not really any different that under the table kickbacks, except that they put it on the table first.
www.thomasmoens.com
Friday, August 10, 2007
Illinois Deed Provider, Inc.
Several clients have called recently regarding a letter they received from Illinois Deed Provider, Inc. Illinois Deed Provider, Inc. proposes to obtain a certified copy of your deed for $89.50. My advice, save your money, or donate it to a worthy cause.
The letter claims that a certified copy of your deed "provides evidence that your property was transferred to you." It does no such thing. As a real estate attorney, I can assure you that it is absolutely unnecessary to have a certified copy of your deed. Deeds are not like the title to your car–you do not need your deed--original or copy--to sell your real estate or otherwise to prove ownership. One deed, standing on its own, is meaningless.
It is necessary to follow the chain of title to determine ownership. In other words, I could give you a deed to the Centennial Bridge, and it could be recorded, and you could obtain a certified copy of that document. However, unless I owned the Centennial Bridge, and the person who deeded the property to me owned it, and the person before that person, etc., you just received a deed to nothing. No amount of certification changes this simple fact.
Further, those documents are part of the permanent record at the Recorder’s Office, and you can obtain copies anytime you like. So, if it ever turns out for some peculiar reason you need a copy, it can be obtained with one visit to the Recorder’s Office. By the way, the Recorder's Office charges $49.00, there is no parking fee, and you only need to go there once, contrary to what the Illinois Deed Provider folks might try to tell you.
Their letter claims that the U.S. Government recommends that you have "an official or certified copy" of your deed. I looked at the page they say recommends this. It says nothing of the kind. The page contains a list of documents you should consider keeping in your safe deposit box. In the section regarding what you should keep in your safe deposit box, it says, "If applicable, you should have official or certified copies of documents for your safe deposit box" [emphasis added]. Since, in Illinois and Iowa at least, it is unnecessary to have a certified copy of your deed, I would state unequivocally that this recommendation is not applicable with regard to deeds.
The company appears to owned by an Illinois licensed real estate broker by the name of Barry Joel Isaacson. Mr. Isaacson is not an attorney, even though he is giving legal advice by explaining the legal effect of documents to others. In my opinion, this is the unauthorized practice of law.
If you receive this letter, please, please, please, just ignore it. If you are deadset on giving away money, please consider a donation to the Animal Aid Humane Society or the Quad City Animal Welfare Center instead of Mr. Isaacson. At least then it will be for a good cause.
www.thomasmoens.com
The letter claims that a certified copy of your deed "provides evidence that your property was transferred to you." It does no such thing. As a real estate attorney, I can assure you that it is absolutely unnecessary to have a certified copy of your deed. Deeds are not like the title to your car–you do not need your deed--original or copy--to sell your real estate or otherwise to prove ownership. One deed, standing on its own, is meaningless.
It is necessary to follow the chain of title to determine ownership. In other words, I could give you a deed to the Centennial Bridge, and it could be recorded, and you could obtain a certified copy of that document. However, unless I owned the Centennial Bridge, and the person who deeded the property to me owned it, and the person before that person, etc., you just received a deed to nothing. No amount of certification changes this simple fact.
Further, those documents are part of the permanent record at the Recorder’s Office, and you can obtain copies anytime you like. So, if it ever turns out for some peculiar reason you need a copy, it can be obtained with one visit to the Recorder’s Office. By the way, the Recorder's Office charges $49.00, there is no parking fee, and you only need to go there once, contrary to what the Illinois Deed Provider folks might try to tell you.
Their letter claims that the U.S. Government recommends that you have "an official or certified copy" of your deed. I looked at the page they say recommends this. It says nothing of the kind. The page contains a list of documents you should consider keeping in your safe deposit box. In the section regarding what you should keep in your safe deposit box, it says, "If applicable, you should have official or certified copies of documents for your safe deposit box" [emphasis added]. Since, in Illinois and Iowa at least, it is unnecessary to have a certified copy of your deed, I would state unequivocally that this recommendation is not applicable with regard to deeds.
The company appears to owned by an Illinois licensed real estate broker by the name of Barry Joel Isaacson. Mr. Isaacson is not an attorney, even though he is giving legal advice by explaining the legal effect of documents to others. In my opinion, this is the unauthorized practice of law.
If you receive this letter, please, please, please, just ignore it. If you are deadset on giving away money, please consider a donation to the Animal Aid Humane Society or the Quad City Animal Welfare Center instead of Mr. Isaacson. At least then it will be for a good cause.
www.thomasmoens.com
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