There’s always someone out there operating close to the edge. Looks to me that they are after the businesses involved rather than the vehicle employed, the Land Trust. Obviously the trust is used to provide control for the promoters.
We all know what a nightmare it is, trying to deal with pretender lenders. Methinks they’ll likely be behind the action somewhere even though there may be one or two questionable players involved. After all, the lenders are all in damage control mode at the present.
It’s a very tricky business, bringing a homeowner into a land trust while, administratively attempting to cancel or settle a mortgage loan in some fashion with reluctant and uncooperative pretender lenders, and changing a fee for the service. Especially if the promotors are claiming they’ll be successful.
Under a properly constructed Land Trust the beneficiaries can simply direct the Trustee to reconvey title back to them. But then, who knows what the contract with Fidelity is or even what type of trust structure was formed to create Fidelity in the first place.
I think I remember seeing somewhere that Florida has statutes in place to regulate Land Trusts?
Based upon what’s been reported, Fidelity’s business plan needs serious funding as they are initiating lawsuits against pre-tender lenders to try and work out these mortgage loans – however the subject is extremely complicated and most homeowners would have a devil of a time understanding the process, nor do they have much patience, especially if they have to keep funding the program. No wonder the promoters are being attacked. The educational and babysitting aspects have been overlooked.