SB County officials warn of property scam

San Bernardino County homeowners are being warned about a nationwide property scam.

The swindle called a Homeowner Benefit Program, involves homeowners being persuaded to place a lien on their property in exchange for a cash payment, according to a statement released by Auditor-Controller/Treasurer/Tax Collector Ensen Mason and Assessor- Recorder-County Clerk Chris Wilhite.

“A Florida-based real estate company operating a nationwide network offers homeowners up to $5,000 cash in return for the homeowner signing a Homeowner Benefit Agreement,” the statement reads. “The agreement gives the company the exclusive right to serve as the listing agent, receiving a three percent commission when the homeowner decides to sell their home.

“When the agreement is signed, the company files a memorandum lien with the county recorder’s office.”

“A 40-year agreement is attached to the property,” the statement continues. “If a homeowner dies or gifts the property to another, the heir or new owner is obligated to the terms of the contract. If the homeowner wishes to cancel the agreement or avoid listing their property with the real estate company, they must pay an early termination fee equal to three  percent of their home’s value, (which is) the amount the company would have received upon the sale of the property.”

This arrangement is legal, but what most people don’t realize is that the median price of a single-family home in San Bernardino County now is nearly $500,000. At that price, the three percent fee owed to the real estate company would be $15,000, a figure that could easily grow to six figures in 40 years.

“In my opinion, this is fraud,” Mason said in the statement. “It is presented as a listing agreement when it is really a loan with an astronomical interest rate.”
Anyone planning to buy a home should “read the fine print” and seek legal advice when necessary, according to Wilhite.

“I look forward to working with Ensen Mason to proactively educate San Bernardino County homeowners of this questionable program so they can better protect themselves from predatory activities,” Wilhite said in the statement, which was posted on www.mytaxcollector.com.