Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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can't help them
A person I know is being Foreclosed on.
After talking with an individual sort of related to the person, I know.  The individual said that this person had just filed for a Bankruptcy 13 case about 3 weeks ago.  I asked what the name of the Attorney was, They weren't sure, but they did give me the name of the Firm, handling this Chapter 13.
When this person told me, the name of their bankruptcy firm, I swear I could have passed out right there. I said there is a huge problem, and "so and so" needs to get on the phone and ask if the attorney has ever represented this servicer company in a foreclosure before.  The Name of the FIRM that is supposed to be handling this chapter 13 is one of the Foreclosure Mills in this area.
I said OMG if you are in chapter 13, then the servicers attorney would have to have filed a "release from stay".  I told this person, that I saw their home advertised in the paper last week, and the paper said this was a "foreclosure" to be conducted today.  This person, said no we are supposed to be protected.  Under the 13 laws. I said yes I know.  We left it at that, and I mentioned that I was on my way over to the court house to watch the foreclosures.I got there and asked one of the investors if their address had been called yet, and they said no, I asked if it was scheduled for foreclosure today and they said yes, but it was farther down on the list.
This person I spoke with is now not at home, and I have no # for them where I can reach them to tell them their home is on the chopping block.  This individual said well, can't really call him or her, since they just started a new job today.
Is there anything I can do to help these people?
A bankruptcy was filed, 3 weeks ago, the add has been in the paper since at least 2 1/2 weeks ago.
Their home is still being foreclosed on today!
 



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.
Someone's confused. An attorney representing a servicer in a foreclosure can't file a bankruptcy case on behalf of a borrower. They'd be disbarred.
If the bankruptcy was actually filed, and the relief of stay actually approved, the foreclosure would proceed.

There has to be a lot more to the story.
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can't help them
no no-one is confused .  you didnt read it right.    this person hired an attorney to represent them so they could file for a chapter 13 bankruptcy.
This person, had no idea when they hired this attorney, that this attorney's firm, is a foreclosure mill. (this firm is not the firm doing the foreclosure this time and never did I say it was.)    This person who filed for a chapter 13 should be under protection of the chapter 13, which means their home, should not be on the court house steps today.  but it is. their house was run in the newspaper, saying that actual "foreclosure" was going to occur TO-DAY! The add in the paper did not say,  That the foreclosing attorney's were filing for a "release of stay" The add said point blank-"FORECLOSURE".   When I asked if the home was on the foreclosure list today, they said yes it is on the list, and the foreclosure has not happened yet. It's still on the list, and the foreclosure has not been stopped by this persons chapter 13 attorney, like it should have been.  make sense now?
 
 
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Joe B
Dot-

     I think you are right about there being a few important details being left out. However, it could really be simple as this: Most f/c sales are scheduled far in advance.. a minimum of 30 days. This person filed chapter 13 only a few weeks ago. It is entirely possible that the home is still on the list, but when it comes up, it will be withdrawn as being under chapter 13 protection. In other words, the right and left hand are not in communication.

     However, if Can't is right and there is something untoward going on, tell your friends friend to find an attorney right away!

     Now, there may also be more to the story, but I doubt very seriously if a lawyer would risk being disbarred for a mortgage issue... especially in the current climate! Possible, but just not probable, in my opinion.

     Can't, let us know if you find out more, and we will see what we can do.

JB
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can't help them
I see you were posting at the same time I was.
this is a re-post so you know you have been responded to. Hope you see it here.
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Joe B
Can't

     I stick by my earlier post about the one hand not knowing what the other was doing. However, if not I don't think there's anything you can do except make an effort to reach the chapter 13 attorney. Or, you could head to the courthouse and get a good deal on the house!! Just kidding.

     I think the attorney needs to step in, and is really the only person that can do anything here.

     I think your choices are to reach the owner, their attorney, or maybe someone else can suggest something.

     However, if they really did have an attorney and an agreement to file for chapter 13 protection that was to be filed by a certain date, your friends friend has a serious claim, and should contact another attorney ASAP. Remember that any f/c sale can be set aside if there was an error in fact, and the failure to file for protection should satisfy that requirement.

     Moreover, it is more than likely the lender that is going to purchase it, and it should be even easier if they retain ownership. In fact, it might make for a fun exercise if they acquire it for far less than what was owed!!

JB
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Moose
I think there is some confusion - and as always, this isn't legal advice.

First, what "can't help them" is seeing in the newspaper is what is known as a "lis pendens."  Depending on the state they live in, this may be something that is required well in advance of the actual sale and might even have to be repeatedly published.

The other confusion surrounds the protection allegedly provided by a Chapter 13 filing. Normally, there is an "automatic stay" issued by the bankruptcy court almost immediately upon filing, against which the forelosure mill may file a "motion for relief of automatic stay," which would have to be ruled on before a foreclosure is final.  If the court has granted the relief, the sale will proceed.

But if it wasn't and the foreclosure sale goes forward, it could be voided. The BK courts have the authority to essentially reverse a sale that might have taken place in violation of the stay.

The borrower should first contact the local bankruptcy trustee's office directly to find out the status of their case. It is possible that the automatic stay didn't get issued.  There may have been an error in the bankruptcy filing that was holding up the issuance of the stay. The court may have granted the relief for any number of reasons, i.e., if the person had filed previously and it was too soon to file another BK.

Because "can't help" isn't the actual party to the case, all of this discussion is based on hearsay and assumption, but dot is right about one thing, the foreclosure mill firm with an attorney on board that is taking on a bankruptcy for a mortgage borrower is treading on thin ice.  If nothing else, the borrower should contact the local bar association to determine if this is, indeed, considered a conflict of interest on the part of the firm in the state they practice in.

Not much would surprise me any more, but if it is indeed as depicted, I'd love to see a law firm explain their way around this one.

Moose


 

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