WEST HOLLYWOOD—The City of West Hollywood issued a press release on Monday, November 1, warning residents to be wary of a mailing scam being conducted by a handful of companies throughout the state. The scam attempts to capitalize on the economic downturn, urging homeowners to purchase a grant deed at exorbitantly high prices from the companies as a means of proving ownership in the event of a possible foreclosure.
The scam mailings have often asked for upwards of $200 for grant deeds, with the documents being stylized to look like official government notices. Grant deeds are usually issued when homes are first purchased and replacement copies can be had for about the price of a DVD. While grant deeds are useful in helping to prove ownership, having a copy does not stop a foreclosure if mortgage payments are not being paid.
“Unfortunately, official looking documents have become a popular way for dishonest companies to profit at others’ expenses,” said West Hollywood Councilmember Jeffrey Prang, when explaining the mentality behind such a scheme. An example of one such mailing stated that a grant deed should be procured by the homeowner due to the high number of foreclosures and loan modifications in the recipient’s community.
The Los Angeles County of Consumer Affairs website was updated on November 1, to warn about this and other mailing scams, including ones that encourage property tax reassessments, mortgage protection plan purchases and the purchase of unnecessarily “updated” labor law signs.
For more information please visit consumer-affairs.co.la.ca.us. If you are in need of an official grant deed, please visit the Los Angeles County Recorder/County Clerk at lavote.com.
