A Family’s Long Court Battle Over a South Florida Home
Scott Anderson describes his father Stuart as a great and sophisticated man with a good eye for businesses. But in 2011, he found himself in a tough spot.
Stuart’s Distress
Stuart fell behind on the mortgage payments of his Coral Springs home, like so many Americans in the wake of the 2008 housing crisis. It was then that he was contacted by a company called First Capital Land Trust – marketed in an advertisement as relief for homeowners underwater in their properties.
The "Cash for Keys" Deal
He says his dad agreed to do a "cash for keys" deal, signing what’s known as a quit claim deed and transferring the ownership of his home to the company in exchange for $2,500. Scott and his sister Janice Wilson allege in a lawsuit filed against First Capital that the company told their dad they could negotiate with the bank and "promised to pay all debt associated with the Property in exchange for the Deed."
Lawsuit Claims
Stuart was 74 at the time and the lawsuit claims he was "unduly influenced" when he made the deal. After moving out, Scott says his dad started getting letters from the bank – informing him he was now very behind on those mortgage payments.
Consequences
Marilyn Uzdavines is a professor at Nova Southeastern University Shepard Broad College of Law who specializes in real estate transactions. She says the problem was this: while Stuart no longer owned the home, it was still his name on that mortgage.
"If Something Sounds Too Good to be True, It Usually Is"
Uzdavines explains there are legitimate "cash for keys" deals in which lenders can help property owners facing foreclosure but she warns about third-party companies offering this relief. "If something sounds too good to be true, it usually is," she said.
The Company Behind the Deal
The NBC6 Investigators found First Capital Land Trust was under investigation the same year Stuart signed over the deed to his Coral Springs home. The FTC alleged several companies, including First Capital Land Trust and its then owner, Lazaro Dinh, preyed on financially distressed homeowners, charging them up to $750 a month that was supposed to get them legal help to fight foreclosure.
The Fight Over the Home
It’s been a long and difficult fight for Scott, who has been trying to clear his dad’s name and get justice. He says losing his dad motivated him to enroll in Purdue Global Law School. In September 2023, a judge ruled in favor of U.S. Bank, authorizing the foreclosure sale. The sale was postponed after First Capital filed a motion in court, but in late December, a judge ruled the sale of the property could move forward. Court records show the final bid was made by a real estate company for $458,000.
Conclusion
Scott Anderson’s fight over his late father’s home is a cautionary tale about the dangers of third-party companies offering relief to financially distressed homeowners. The case is a reminder that homeowners must be careful when dealing with companies that promise quick fixes to financial problems.
FAQs
Q: What happened to Stuart Anderson’s home?
A: Stuart Anderson’s home was foreclosed upon after he signed over the deed to First Capital Land Trust in exchange for $2,500.
Q: Who is First Capital Land Trust?
A: First Capital Land Trust is a company that allegedly preyed on financially distressed homeowners, charging them up to $750 a month for legal help to fight foreclosure.
Q: Is First Capital Land Trust still operating?
A: According to court records, First Capital Land Trust is still operating, but its affiliation with Lazaro Dinh, the same person who owned the company when Stuart signed over the deed, is unclear.
Q: What happened to Stuart Anderson’s family?
A: Stuart Anderson’s family, including his children, are still dealing with the consequences of his financial struggles. His son, Scott Anderson, has been fighting to clear his dad’s name and get justice.
Q: What can homeowners do to avoid similar situations?
A: Homeowners can avoid similar situations by doing their research and being cautious when dealing with companies that promise quick fixes to financial problems. It’s essential to read the fine print and understand the terms of any agreement before signing anything.
