I believe the larger issue here is possible fraudulent conveyance.

@Anthony A.Yes exposed for wrongdoing but most bad deals are not from wrongdoing but by inexperienced operators who make bad (some may say dumb) decisions which is not a reason for recourseAnyone can be sued for anything of course but you have to prove they were negligent or fraudulent

Do not assume any other type of payment will clear your account and not end up being pulled back as fraudulent. 

We will be forced to enter a deep recession to combat this.

There are also fairly stiff penalties for these guys if they file a fraudulent/false lien.  

The author nods in agreement to the suggestion of incentivizing housing development at the local government level to combat the shortage and prevent prices from spiraling out of control when the economy bounces back and demand skyrockets once more.

@Danny SimardIf you are the borrower, you will want to know who the title company is so you can sign the documentsDo not borrow money if there is no title company involved as the deal could be fraudulent and they want you to send them money upfrontOnce the terms are negotiated the process is not different than a traditional transaction whether buying or refinancing You will get a closing disclosure with closing costs and will sign a note, mortgage and several other documents Hope this helps

I have tried to help them and I did advise them to see an attorney way back when because he could not just act like the board and setup bank accounts that may be fraudulent? 

The definition of fraudulent conveyance was expanded.4.

If they violate their word this will become fraudulent inducement and that will invalidate the contract.