Artile by by Evan Bedard on LoanSafe.org with commentary from George Roddy, Jr with Roddy Real Estate Investing Academy.
Foreclosure prevention scams have been flourishing the country for years now as homeowners search desperately for ways to avoid foreclosure. While there are some legitimate services out there, many just prey on borrowers facing foreclosure and typically charge a fee anywhere from $1,500 to $4,000 for a service that is never performed.
A perfect example of one of these predators is Frederic Alan Gladle from Austin, Texas who ran a foreclosure prevention company out of Los Angeles. Gladle falsely promised more than a thousand homeowners he could prolong a foreclosure sale for up to six months in exchange for a fee. Up until his arrest this October, Gladle along with several associates ran this four year scam that netted over one and a half million dollars from distressed homeowners around the nation.
According to the indictment, Gladle would charge homeowners a fee of about $750 per month to extend foreclosure proceedings. He would later have his clients sign a deed granting 1/100th interest in the home to an unknowing individual undergoing bankruptcy. These borrowers had no idea that Mr. Gladle and his associates used their bankruptcy petition to help his clients avoid foreclosure.
Due to the fact that filing bankruptcy leads to an automatic stay, Gladle’s clients were temporarily protected because the servicer of the mortgage is required to go to court in order to collect on the debt. Once his clients wanted out of the 1/100th deeds, he would simply forge the debtors signature which whom is undergoing bankruptcy to void the deed.
“Mr. Gladle defrauded victims trying to save their homes, further exploited those in debt by stealing their identities, and wreaked havoc on both banks and the Bankruptcy Courts by manipulating the system. This is the latest example of heartless criminal activity by an individual who sought to capitalize on the misfortune of those affected by hard economic times,” said Steven Martinez, Assistant Director in Charge of the FBI’s Los Angeles Field Office.
As part of his plea bargain, Gladle said that he will plead guilty to 1 count of aggravated identity theft and 1 count of bankruptcy fraud. He now faces a maximum sentence of up to 5 years for bankruptcy fraud, and a minimum sentence of two years for aggravated identity theft.
George Roddy’s take: Like the article states, there are sheep and then there are wolves in sheep clothing. We deal with the owners and their emotional state every day in this business. Once the person is posted for an upcoming Texas Foreclosure auctions, there are really only 5 options to choose from.
1. Try to work with their current lender (hard to do, because the lender is pretty upset with the borrower).
2. Work to refinance with another lender (impossible unless your dealing with a private lender)
3. Declare bankruptcy (unfortunately, 60% of people who do this, STILL LOSE THEIR homes)
4. Sell their property (a lot of times, the owner doesn’t have enough equity).
5. Do nothing. (Here in Texas, 35% choose this option).
Here at Roddy Real Estate Investing Academy, we teach ethical and professional methods of real estate marketing and investing. Our sole purpose is to help people and create WIN-WIN transactions. To learn from us and avoid the courtroom or “state housing”, call us.
Go forth and prosper,
George Roddy, Jr. – founder
A: 4851 Keller Springs Rd Ste. 219
Addison, Texas 75001
Visit: Roddy Real Estate Investing Academy – Since 1963, we’ve helped people make money in Texas real estate. (Real Estate training and 1-on-1 Coaching)
Visit: Roddy Rentals – we offer Turn-Key residential rental properties for people who want an investment that delivers double-digit returns without the day-to-day headaches. (Investments)