LAKEPORT >> A resolution requesting assistance from the state to prevent real estate and mortgage fraud was unanimously approved by the Lake County Board of Supervisors Tuesday.
Stemming from a May 19 discussion held by the board regarding a potential land records audit and alleged fraudulent foreclosures, the resolution urges the California Attorney General “to create and coordinate a task force … to review the scope and extent of ongoing mortgage fraud.”
“This is a statewide issue,” District 3 Supervisor Jim Steele said. “There is a potential smoking gun here that we need to act on.”
During the May discussion, County Counsel Anita Grant said that the California Homeowners Bill of Rights, while giving “considerable protections to homeowners against predatory lending practices,” does not give any cause of action to local government to act on behalf of citizens civilly.
“There is a state law that allows for recording fees to be increased and then would require the DA’s office to create a department of real estate fraud,” Grant explained.
Furthermore, the recording of title assignments is not required in California, as is in other states.
“This has to do with the uniqueness of California and the way it has structured its laws,” Steele explained.
Although further discussion of a potential land records audit was not held, the board reached consensus to revisit the topic at a future meeting — in order to allow for experts to be present. The discussion is tentatively schedule during one of the board’s meetings in July.
Redondo Beach-based Attorney Allen D. West, who has successful quiet title cases on his record, is one such expert. He is expected to discuss the benefits of an audit, as well as what can be done.
A quiet title case is a lawsuit that establishes ownership of property when it is in question, either because of liens or levies — which are known as clouds on the title and can result from mortgage loans being passed from one financial institute to another.
During public comment, Cobb resident Rob Somerton told the board that “documentation continues to be recorded at a county level on a daily basis. Unless there is some kind of screening process in place … the fraud and crime will continue.”
Somerton is currently being evicted from his house because of alleged fraudulent documents.
Director of the Lake County Law Library Casse Forczek also addressed the board.
“The problem is systemic,” Forczek said. “And there is not enough resources in Lake County for people who are in this very terrible situation.”
However, recently commissioned by board of trustees to partner with the Ukiah-based nonprofit organization Law Services of Northern California to “try to help with evictions when they start for people who do not have resources to hire an attorney.”
The resolution was approved with a 4-0 vote, District 5 Supervisor Rob Brown was absent.
“This resolution merely alerts those higher in the state legislature and other to the problem that we see,” Steele explained. “Hopefully this will also be sent to other counties.”
Contact J. W. Burch, IV at 900-2022.
