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Sunday, January 11, 2009

Land Patent Scam Returns

An oldie but a goodie from the late 1980s is the so-called "land patent" fraud. This is where scam artists concoct a theory that the land under the house was never covered by the mortgage, and thus it can somehow be protected by purchasing (from the scam artists, of course) a totally bogus "land patent" that claims that the house is owned by some sovereign, such as an indian tribe or something.

The land patent scam went around in the late 1980s where farmers were desperate to try any theory to save the family farm. Scam artists took the opportunity to lighten the farmer's wallet of their final bucks before foreclosure.

New scams are actually rare: Most scams have been around at least once before, if not many times over the last half-dozen or so generations. The land patent scam is one of these, perpetually re-cycling itself with each real estate bust.

Read more about the latest version in this

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