Yes this is in a nutshell fraud, (IMO but I am not a lawyer)… Please note, it does seem to me that this can be applied to any asset, not just homes.
Yeah I would agree Perry this is a tool for the more savy distressed seller…I am assuming your post about small businesses closing down is orthogonal to this post. In this case these small holding companies were just shells. this Also this particular strategy seems to apply to deadbeats who have higher loan amounts. Thus they are just making the lender jump through more hoops. However the lender will do whatever it takes to get the foreclosure back on track.
