Zeta, the Tijuana magazine, did a follow-up story on the San Felipe real estate frauds. Fulano has translated some if it below:
That sums up the source of the problem of hundreds of Americans who bought lots, houses, and condominiums in San Felipe, Baja California, and the developers took their money and not delivered the property. Of the 54 developments in the area, only 39 have complied with all government requirements to legally sell the properties, but the Mexican government does not stop the rest from selling even though they are aware of the allegations of fraud. The defrauded foreigners have hired lobbyists in Washington, DC to represent them via media campaigns, talks with Congressmen and U.S. authorities to pressure the Mexican government to solve their problems.
Anne and her husband arrived from North Carolina, came to know San Felipe and chose it as the place they wanted to live. First they bought a property and then sold it six years ago and bought a lot in Playa del Rancho Caracol, part of El Dorado Ranch, through a Promise of Sale Agreement and paid $112,500, and were promised infrastructure, all legal permits and a clubhouse. Today they only have a piece of sand.
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The American has hired several lawyers to pursue their case, her husband died during the litigation. The lawsuits have not gotten her money back nor have they delivered the house they dreamed of.
According to the head of Urban Management of the City of Mexicali, of the 98 developments operating irregularly in San Felipe, 54 have since been regularized and 39 are in the process of doing so “under a program scheduled to be completed in 6 months”, although there are still five developments that are not in the process of being regularized.
According to one of the organizers of the Baja Property Owners Cooperative, there are dozens of cases of foreigners who have been defrauded, and due to what they consider a lack of response from the Mexican authorities, have warned that they will take it to the next level, not in Mexico but in the United States, where they will lobby Congress to demand the necessary support at the federal level in both countries.
One of them, who insisted on anonymity for fear of retaliation, stated his point of view of the problem:
“The combination of government corruption and a community of unethical developers has created a continuous environment that makes buying land in San Felipe a more dangerous situation for foreigners than the drug cartel violence…” .