Consumer Fraud Fraud Alert! An entire neighborhood!

[vlind]

My jurisdiction is: Texas

I own (3) properties in a predominately african american neighborhood. Currently a group of so-called professionals (2 lawyers, 1 real estate broker, and several real estate agents) are coaxing the homeowners into signing over power of attorney of their homes to a so-called non-profit organization that the above are all members of. They have promised that they can sell their modest homes (value approx $70.00) for up to five times more than the value. This fradulant amount of money being offered is in order to get these people to sign their 'agency agreement'. My concern is that they could buy, sell, use as collateral, or transfer ownership of their properties to this foundation. Is there anything that can be done, BEFORE something unethical happens to these homeowners? A considerable number of them are elderly and low-income. We've talked to the district attorneys office, filed complaints with the State Bar, and Texas Real Estate Commission. But so far these agencies WILL NOT do anything until a crime is committed. Is there anything that we can do to stop them BEFORE they commit fraud? Can we somehow let them know that we will take action against them, if they commit fraud against these people? Thank you for your suggestions

 

[dee_dub]

Who do you act for? That is, who is this "we" that has talked to the DA and wants to warn the professional group?

If you want to warn them, you could send them a letter.

 

[vlind]

vlind

The 'we' is us. Homeowners in the community, who have NOT signed their agency agreement/power of attorney document. We are very concerned because a substantial number of residents are elderly and have not purchased or transacted any type of real estate in over 40 years. I am just wondering if you tell me if it will be effective if we retain legal counsel, for the purpose of sending this organization a letter notifying them that we will take legal action if they do harm to our unsuspecting neighbors. There seems to be nothing we can do, but sit and wait until they do 'harm'. That is, buy, sell, use as collateral, or transfer title of the homeowners properties to (the foundation) without the homeowners knowledge or consent.

 

[Theresagail]

The only thing you can do at this point is have a Neighborhood Meeting of the minds -- Education is the only defense in instances like this-- Knowledge is everything.

I would generate a letter outlining the issues and try and schedule a time to meet