Consumer alert: avoid grant-deed mailers

There’s no good deed in this offer.

Consumer affairs officials are warning homeowners to steer clear of direct-mail pitches that urge them to quickly order copies of their grant deeds to help prevent potential foreclosure. The cost: a hefty “processing fee” of $157 for a document that can be obtained directly for as little as $6.

These “Title Compliance” firms, exploiting foreclosure fears, suggest in the mailing that homes may be in jeopardy unless the owners obtain copies of their deeds by a certain deadline.

At the top of one of the mailers is the official-sounding heading: “Notice for Los Angeles County Property Owners.” It states that it is being sent by the “Records Retrieval Division.” Only in the fine print does the document disclose that it is coming from a private, “non-governmental company.”

“It’s very deceptive and misleading,” says Rigo Reyes, the Consumer Affairs Department’s acting director. Reyes says that having a copy of your grant deed does not protect you against foreclosure, which is usually the result of delinquent mortgage payments.

Those who don’t have a copy of their deed—and they are useful against certain forms of housing fraud—can easily order one from the county Registrar-Recorder/County Clerk. The cost is $6 for the first page and $3 for each additional page.

Last year, Consumer Affairs cracked down on scammers who also were using official-looking mailings to entice homeowners into paying excessive amounts for requests to have their homes reassessed for lower property taxes. In those cases, the companies were charging as much as $200 for a service performed by the Assessor’s Office for free.

The current mailings have been received in homes across the county this spring, in both Spanish and English. Reyes says that Consumers Affairs, which has made it “a high priority” to warn consumers, has logged 43 complaints, from Palmdale to Mandeville Canyon, with more expected.

To report a problem, or seek more information, visit the Consumer Affairs website or call 800-593-8222.

Posted 5/17/10