New York State Attorney General Letitia James warned Brooklyn homeowners against illegal scams yesterday during a Town Hall meeting at Bedford-Stuyvesant’s Restoration Plaza, 1368 Fulton Street. James led top elected officials in a panel discussion focusing on homeowner fraud.
There are various ways, according to the panel, that homeowners are being swindled. Deed theft, the fraudulent transfer of a deed to persons without the legal right to it, is a scheme currently being targeted toward the elderly and those facing financial distress.
The financially vulnerable are being led to believe they need to sign a deed transfer or complete a financial transaction, not realizing they are transferring over their property, according to James.
The panel emphasized the importance of homeownership and it’s function as a vehicle for social mobility.
“Having a home creates a sense of pride and accomplishment for those who are able to achieve it. It also allows us to enter into the middle class and unfortunately, there are those in this community who want to prey upon the elderly and the vulnerable to turn our American dream into a nightmare. Deed theft has become a common tool and career for criminals and unscrupulous real estate developers,” said James.
A handful of Brooklyn neighborhoods, particularly Bed Stuy, are being impacted by these illegal schemes, given the value of the real estate market.
“It’s very hot in the real estate market in Brooklyn. And because it’s hot in the market people want to take advantage and steal our homes and take advantage of our seniors and scam us,” said District Attorney Eric Gonzales.
U.S. Rep. Hakeem Jeffries (D-Central Brooklyn, Queens) posited that the town hall attendees not only invested in homes but invested in the community.
“Through all the difficulties you stayed, you invested, you turned things around. And now some folks in our community, because of deed theft and other issues connected to the intensity of socioeconomic gentrification, you are at risk of becoming a victim of your own success. And having your hard-earned property snatched away from you,” said Jeffries said.
“There is clearly an assault on the black and brown community as it relates to the accumulation and transfer of wealth through property ownership. Third-party transfer, and deed theft are conspiring against the wealth of our communities,” said City Councilmember Robert Cornegy (D-Bedford-Stuyvesant, Northern Crown Heights).
