A guy gets caught on street selling marijuana worth $10 he has a teen friend with him at that time. Cops arrest him (the friend) and then visit his home which happens to be owned by his own Grandparents who live with another 9 young grand-children in that home. Cops take the house and make the grandparents pay a rent to continue in their own home. Grandparents are poor and can't pay the rent hence they settle for the plea bargain where they basically give the home to cops in return of freedom of their grandchild and forgiving the rent money for one month they stayed in it.
People may make stories up, but there is often an actual occurrence that mirrors the story, even if the story and the occurrence are unrelated.
In other words, even if you can demonstrate that a particular story is made up, it doesn't mean that it doesn't happen. It doesn't even mean that it doesn't happen often.
The best part is, there is zero penalty for trying to take an entire hotel! It's like Grand Theft Auto in reverse with god mode on.