Mortgage fraud warning issued by the Huron Law Association regarding John Frantzen
Description of Potential Fraud:
We have been made aware of the following warning issued by the Huron Law Association with regards to an individual attempting real estate fraud. We understand the Parry Sound, Muskoka and Simcoe County law associations have also sent this warning out to their members.
Today two lawyers in Simcoe county advised us that they were approached by this same person with respect to a mortgage on vacant land in Muskoka.
The text of the warning is as follows:
Mortgage Fraud Scheme
The person’s name is John Frantzen, operating under the name of Homefront Master Builders, and a numbered company, claiming to be from Owen Sound or Collingwood.
He poses as a developer and tries to deal directly to purchase vacant unencumbered properties, convincing the vendor to take a second mortgage back. In the case we dealt with, the offer was close to the asking price and the interest offered on the second mortgage was attractive. He claimed to have a development ready to proceed, which would be completed and refinanced in 6 months, then paying the vendor in full. He also claimed to be a long term client of a respected lawyer from another town. None of the claims are true.
The whole thing is a scam. The catch is that the seller unwittingly agrees to allow a first mortgage to be placed for up to half the purchase price with little (half or less) of that amount coming to the seller on closing. The buyer then defaults on the first mortgage and abandons the property. The first mortgage holder forecloses and the seller loses the property (or most of their equity) in a forced sale, having received approximately a quarter of the property value.
Anyone coming across a transaction involving this individual, company or a second vendor take-back mortgage arrangement should see:
http://www.madhunt.com/frantzen-investigation-20121003.html
https://www.facebook.com/permalink.php?story_fbid=137968823046014&id=246112854998
http://www.madhunt.com/frantzen-owes-money-20120827.html
June 13, 2013 at 10:40 am, Karl G. Melinz said:
I had a client who received an offer from 1867557 Ontario Ltd. for property located in the Township of Brock, County of Durham. Full asking price for the property with a first mortgage back with no dollar amount noted and the vendor take back a second mortgage for almost the full purchase price. Thankfully, the client sent a copy for my review and I advised him against signing such an offer. I also did a corporate profile search and 1867557 Ontario Ltd. is owned by John Frantzen of Collingwood. My client also did some searching of his own and found that John Frantzen did not own any property personally and questioned Mr. Frantzen about this with no real reason given by Mr. Frantzen. The Offer was not accepted.
March 04, 2019 at 3:02 pm, John said:
Hi, my name is John. He did exactly the same thing to me as you described. He walked away with $90,000.00.