Attorney General Files Suit in Massive Real Estate Contract Scheme; Issues Consumer Alert for Real Estate Contracts

Category: Non-Local News Releases Non-Local News Releases
Published: 08 December 2016 08 December 2016

Albuquerque, NM - This morning, Attorney General Hector Balderas announced that he filed a lawsuit against Jesus Cano for an alleged real estate contract and mortgage scheme involving potentially hundreds of victims and properties in Bernalillo, Sandoval and Valencia Counties. The lawsuit alleges Mr. Cano and his associates perpetrated fraud and would prey on Spanish-speaking and Hispanic communities in central New Mexico taking anywhere from $1,000 to $46,000 from victims with the empty promise of owning a home. Many times the victims would find themselves in substandard homes that they would have to make repairs on themselves just to lose all their money without a getting the title to the home.

"No one deserves to have their dreams for a better life for their family exploited and destroyed. I filed this complaint to help put an end to fraudulent, deceptive and unconscionable practices that prey on working families in New Mexico," said Attorney General Balderas. "Unfortunately, we often see these types of predatory practices target Spanish-only speaking consumers and Hispanic communities who are underserved by traditional banking and mortgage services. Our office will hold Mr. Cano, and those like him, accountable for taking advantage of these underserved communities, and for tricking families into turning over their life savings just to live in substandard homes they have no certainty of owning in the future."

The Attorney General's lawsuit seeks restitution for potentially hundreds of victims in New Mexico, fines, injunctive relief to stop Mr. Cano from offering real estate and mortgage services, and attorney's fees for the State of New Mexico.

Attorney General Balderas continued, "I am also issuing a Consumer Alert regarding real estate contracts because in addition to the Cano case, our office has received an increasing number of complaints related to their use for the purchase of a home. Families considering purchasing a home need to be aware that real estate contracts do not provide the same protections offered by a mortgage, and they should know that, among other things, a buyer who defaults on a seller-financed real estate contract could face imminent eviction and lose all of the payments made on the property."

Difficulties qualifying for a traditional mortgage may send potential home buyers to seek out alternative ways to finance the purchase of a home. Real estate contracts have different risks than conventional mortgages, which means that some unscrupulous sellers can take advantage of buyers. Consumers should confirm that the seller has the legal right to sell the home under a real estate contract. Since a real estate contract is typically between private parties and generally does not involve a title company or traditional "closing," a consumer may not be able to easily verify that the seller actually owns the home being sold. A consumer can hire a title company or attorney to verify ownership.

Consumers are advised to carefully study the terms being offered in the contract, including the annual percentage rate (APR) of the loan, fees, and other important terms such as what will happen in the event that the consumer is late in paying an installment. Consumers also may want to have a home inspection performed on the home prior to signing a real estate contract - once the consumer signs the contract, it is generally not the duty of the seller to repair or maintain the home.

Unlike a traditional home loan, a real estate contract (also called a "land contract" or "contract for deed") does not involve a loan from a bank to obtain a deed to a home in the name of the consumer. In a real estate contract, the seller retains the legal ownership of the home and thus does not have to file a foreclosure lawsuit in court to take the home and evict the buyer in the event of a default. In some cases consumers can lose the value of substantial improvements made to the home and any money they have paid on the contract.

For more information regarding purchasing a home or if you believe you have been the victim of a scam, please call the Office of the Attorney General toll free at 1-844-255-9210.

Please see attached for a copy of the complaint filed against Jesus Cano.

http://www.grantcountybeat.com/mypdfs/scanned-from-a-xerox-multifunction-printer.pdf

Content on the Beat

WARNING: All articles and photos with a byline or photo credit are copyrighted to the author or photographer. You may not use any information found within the articles without asking permission AND giving attribution to the source. Photos can be requested and may incur a nominal fee for use personally or commercially.

Disclaimer: If you find errors in articles not written by the Beat team but sent to us from other content providers, please contact the writer, not the Beat. For example, obituaries are always provided by the funeral home or a family member. We can fix errors, but please give details on where the error is so we can find it. News releases from government and non-profit entities are posted generally without change, except for legal notices, which incur a small charge.

NOTE: If an article does not have a byline, it was written by someone not affiliated with the Beat and then sent to the Beat for posting.

Images: We have received complaints about large images blocking parts of other articles. If you encounter this problem, click on the title of the article you want to read and it will take you to that article's page, which shows only that article without any intruders. 

New Columnists: The Beat continues to bring you new columnists. And check out the old faithfuls who continue to provide content.

Newsletter: If you opt in to the Join GCB Three Times Weekly Updates option above this to the right, you will be subscribed to email notifications with links to recently posted articles.

Submitting to the Beat

Those new to providing news releases to the Beat are asked to please check out submission guidelines at https://www.grantcountybeat.com/about/submissions. They are for your information to make life easier on the readers, as well as for the editor.

Advertising: Don't forget to tell advertisers that you saw their ads on the Beat.

Classifieds: We have changed Classifieds to a simpler option. Check periodically to see if any new ones have popped up. Send your information to editor@grantcountybeat.com and we will post it as soon as we can. Instructions and prices are on the page.

Editor's Notes

It has come to this editor's attention that people are sending information to the Grant County Beat Facebook page. Please be aware that the editor does not regularly monitor the page. If you have items you want to send to the editor, please send them to editor@grantcountybeat.com. Thanks!

Here for YOU: Consider the Beat your DAILY newspaper for up-to-date information about Grant County. It's at your fingertips! One Click to Local News. Thanks for your support for and your readership of Grant County's online news source—www.grantcountybeat.com

Feel free to notify editor@grantcountybeat.com if you notice any technical problems on the site. Your convenience is my desire for the Beat.  The Beat totally appreciates its readers and subscribers!  

Compliance: Because you are an esteemed member of The Grant County Beat readership, be assured that we at the Beat continue to do everything we can to be in full compliance with GDPR and pertinent US law, so that the information you have chosen to give to us cannot be compromised.