Pre-foreclosures & SubTo & Easy money - No Experience, No Money, No Problem

[Ken M.]

Well, actually it's a huge problem. A huge (81 page) lawsuit just got thrown at over 40 LLC's, numerous individuals, two Title companies and Three Attorneys for doing what?  AZ Case No: CV2025 008402 March 7 2025

Buying foreclosures. Well, both Buying foreclosures and how they did it with SubTo, 

There is a legal way and then there is the "get rich quick by listening to a guy on youtube" way. The interesting thing is that once you have rung that bell and bought a property in foreclosure the wrong way, there is no way to unring the bell. You simply spend the $25,000 on an attorney and a year and a half in court. 

They were/are buying in CA, AZ, OH, FL, WI, TX, SC, NC, CO, GA, DC and several other states. I guess they listened incorrectly to their "community". It became an echo chamber of wrong information. 

For all of you jokesters who were laughing and smirking at me for saying "be trained or don't do foreclosures", here ya' go. This one is very serious.

The things they are being charged with are criminal and are the things the uninformed don't know/think about. They are still against the law, and  the court ignores "the attorney said I could" plea. Well, apparently you either didn't hear him correctly or you had the wrong attorney. 

Here are some of the charges

Buying foreclosures

False & Misleading Statements

Using Invalid Contracts

Exploitation of Vulnerable Adults

Bankruptcy Fraud

Probate Court Fraud

Title Fraud

Unlawful Eviction

Violation of Consumer Fraud Act

Violation of Consumer Fraud Act Recruiting

Violation of Consumer Fraud Act Omissions

Violation of Consumer Fraud Void Contracts

Violation of Consumer Fraud Foreclosure Consultants

Violation of Consumer Fraud Unauthorized Practice of Law

Racketeering - Scheme or Artifice to Defraud

Racketeering - Forgery

Racketeering – Illegally Conducting an Enterprise

Alter Ego

Lis Pendens

All parties are assumed innocent until proven guilty in a court of law

[James Wise]

Quote from @Ken M.:

Quote from @Chris Seveney:

Quote from @Ken M.:

Well, actually it's a huge problem. A huge (81 page) lawsuit just got thrown at over 40 LLC's, numerous individuals, two Title companies and Three Attorneys for doing what?  AZ Case No: CV2025 008402 March 7 2025

Buying foreclosures. Well, both Buying foreclosures and how they did it with SubTo, 

There is a legal way and then there is the "get rich quick by listening to a guy on youtube" way. The interesting thing is that once you have rung that bell and bought a property in foreclosure the wrong way, there is no way to unring the bell. You simply spend the $25,000 on an attorney and a year and a half in court. 

They were/are buying in CA, AZ, OH, FL, WI, TX, SC, NC, CO, GA, DC and several other states. I guess they listened incorrectly to their "community". It became an echo chamber of wrong information. 

For all of you jokesters who were laughing and smirking at me for saying "be trained or don't do foreclosures", here ya' go. This one is very serious.

The things they are being charged with are criminal and are the things the uninformed don't know/think about. They are still against the law, and  the court ignores "the attorney said I could" plea. Well, apparently you either didn't hear him correctly or you had the wrong attorney. 

Here are some of the charges

Buying foreclosures

False & Misleading Statements

Using Invalid Contracts

Exploitation of Vulnerable Adults

Bankruptcy Fraud

Probate Court Fraud

Title Fraud

Unlawful Eviction

Violation of Consumer Fraud Act

Violation of Consumer Fraud Act Recruiting

Violation of Consumer Fraud Act Omissions

Violation of Consumer Fraud Void Contracts

Violation of Consumer Fraud Foreclosure Consultants

Violation of Consumer Fraud Unauthorized Practice of Law

Racketeering - Scheme or Artifice to Defraud

Racketeering - Forgery

Racketeering – Illegally Conducting an Enterprise

Alter Ego

Lis Pendens

All parties are assumed innocent until proven guilty in a court of law

 I am sure if you searched some of my prior posts I have been warning people about approaching people in foreclosure claiming to "help them" by taking advantage of them, even if you were trying to do the right thing, it does not matter in many instances as you may be perceived of taking advantage of someone in distress.

I would also bet a very large sum of money we are going to see more of this occur just like we did ten years ago with CFD's getting into legal hot water, especailly as market softens and foreclosures start to ramp back up.

Here is link to a summary of article:

Attorney General Mayes Sues Real Estate Operators and Title Companies for Defrauding Arizona Homeowners | Arizona Attorney General
SubTo, Subject To, Foreclosure

 Yep. You and I and @Jay Hinrichs: and @Don Konipol: and other very experienced investors have been really clear about the consequences of not following the law and not using best practices. Now @James Wise: and @Peter Walther: have something to be specific about.

The list includes three attorneys and two title companies, and as far as I can tell, these are not people who have posted on BP.

I'm going to repost your link in case someone is interested in what to avoid doing.

Attorney General Mayes Sues Real Estate Operators and Title Companies for Defrauding Arizona Homeowners | Arizona Attorney General

For you lurkers:
It doesn't matter what your attorney says, if you get sued anyway. Select a different attorney to defend yourself.

A wise man once said......Anyone in the Sub2 game is trash. Most likely a criminal and a con artist.