In this scam, the promoter first convinces a mortgage holder that the debt that has been contracted is invalid or legally unenforceable, usually due to a combination of alleged technicalities in the note, deed of trust, or other loan documentation signed; the promoters often link their rationale for debt elimination to illegality of certain lending practices, the Federal Reserve, and the monetary system of the United States in general.
Through a series of illegal maneuvers involving the creation of a trust, a demand letter, and a false re-conveyance of title, the promoter and the original mortgage holder concert to create the appearance of a title free of liens and encumbrances so that another loan may be taken out on the property.
[1] The United States FBI has put out specific warnings regarding this kind of scam.
[2] As of 2006, the Dorean Group was a high-profile promoter of this type of scam.
[3] A number of people, described as the "principals with the Dorean Group", were convicted on multiple counts of fraud in California in 2007.