In recent years, the industry has seen various types of
foreclosure rescue fraud perpetrated against borrowers, lenders,
and servicers. One example is a California-based scam that
caused losses of more than $2.5 million whereby the scam's
orchestrators recorded fraudulent documents in local courthouses in
an effort to "cloud title" and halt or stall the
foreclosure process.
Perpetrators Juan Ramon Curiel and Santiago Palacios-Hernandez
operated Star Reliable Mortgage with offices in three California
localities. Star Reliable Mortgage offered homeowners a
purported "loan elimination" program that would enable
such homeowners to own their homes "free and clear" of
any loans or mortgages. The scammers instructed homeowners to
stop making their mortgage payments and charged upfront fees
ranging from $2,500 up to $4,500 and additional monthly fees.
The perpetrators then filed various fraudulent documents at county
recorders' offices on behalf of the homeowners,
