Predatory lending tactics?

[GDSOB]

Originally Posted by Rick Lee

This article, while I don't doubt has some truth to it, was written by someone who did not do much investigating. How can a seller just sign over a deed, when they're behind on their mortgage? You can't sell your house until the lienholder(s) have all been paid off. Every mortgage I've ever heard of becomes due upon sale of the house. And very few lenders will lend money to those already behind in payments and facing foreclosure. Sounds like these were some crooks, but they were only able to succeed because they preyed on STUPID people who will be poor forever no matter who helps them out, because life is hard on STUPID people.

The seller just signs a quit claim deed which puts another cloud on the title. The FC process has to start over again with notifications to all lienholders, owners and tenants. These guys know how to play the system and can tie up a property indefinitely, rent it, sell it or whatever to generate cash on the home until Sheriffs sale.

[Rick Lee]

Ok, I'll buy that. But I don't recall seeing the word "quit claim" in that article at all. I thought quit claims were for properties held in trusts and for when one party wanted to have another just take it over without going through the sale process.