mortgage elimination

{{Short description|Form of mortgage fraud}}

Mortgage elimination is a type of mortgage fraud in the United States. In this scam, the promoter first convinces a mortgage holder that the debt that has been contracted is invalid or legally unenforceable, usually due to a combination of alleged technicalities in the note, deed of trust, or other loan documentation signed; the promoters often link their rationale for debt elimination to illegality of certain lending practices, the Federal Reserve, and the monetary system of the United States in general. Through a series of illegal maneuvers involving the creation of a trust, a demand letter, and a false re-conveyance of title, the promoter and the original mortgage holder concert to create the appearance of a title free of liens and encumbrances so that another loan may be taken out on the property.{{cite web|url = https://www.southcoasttoday.com/story/news/2007/03/25/mortgage-elimination-scam-leaves/52939320007/ | website = southcoasttoday.com | date = March 25, 2007 | title = 'Mortgage elimination' scam leaves many without a roof over their heads}}

The United States FBI has put out specific warnings regarding this kind of scam.{{cite web |url=https://www.fbi.gov/page2/dec05/tipstopreventfraud121405.htm |title=Federal Bureau of Investigation - Press Room - Headline Archives |website=fbi.gov |url-status=dead |archive-url=https://web.archive.org/web/20051216110921/http://www.fbi.gov/page2/dec05/tipstopreventfraud121405.htm |archive-date=2005-12-16}}

As of 2006, the Dorean Group was a high-profile promoter of this type of scam.{{Cite web|url=http://www.eastbayexpress.com/eastbay/dirty-deeds/Content?oid=1080755|title=Dirty Deeds| website = eastbayexpress.com |date=5 April 2006}} A number of people, described as the "principals with the Dorean Group", were convicted on multiple counts of fraud in California in 2007.{{cite web |url=http://www.mortgagefraudblog.com/index.php/weblog/permalink/dorean_group_principals_found_guilty/ |title=Mortgage Fraud Blog - November 19, 2007 - Dorean Group Principals Found Guilty |accessdate=2010-05-24 |url-status=dead |archiveurl=https://web.archive.org/web/20100523123012/http://www.mortgagefraudblog.com/index.php/weblog/permalink/dorean_group_principals_found_guilty |archivedate=2010-05-23 | date = 2007 }}{{cite web|url = https://casetext.com/case/us-v-heineman | via = casetext.com | work = United States District Court, N.D. California | date = August 19, 2008 | title = United States v. Heineman | quote = Dale Scott Heineman and Kurt F. Johnson were founders and principals of the Dorean Group. They [..] were charged with and convicted of conspiracy and multiple counts of mail fraud, stemming from a fraudulent debt-elimination scheme | accessdate = January 10, 2025 }}