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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Wondered if anyone here has had this experience and where on the internet can I  find more detail.

If a lender advances, loans you additional funds, not related to the mortgage on your home, can they put that other amount on your home loan that increases the principal and collect interest?

Bank gave a check for $2,000 that says in the memo line "loan."   It was supposed to get put into the refinance loan.

Anyway, lost job, can't make payments and trying to work a modification loan.  When my husband and me sat with bank to review, they say we are behind and about to go into foreclosure.  We were like, say what?!!!!!  No way.

We went to them before we would get behind.  Gee we needed to lower the payment before I lost the job. 

Any they put that $1,000 and then counted it as unpaid and its collecting interest and penalties.

Help!   They say they will file foreclosure next week if we don't catch everything up.



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Interested
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If a lender advances, loans you additional funds, not related to the mortgage on your home, can they put that other amount on your home loan that increases the principal and collect interest?


Did you fill out a new loan application for the additional funds? What was used and listed as collateral for the additional funds?

It is my experience that banks do not lend without collateral. If you fail to repay the note, they can only redeem the collateral listed on the note, not everything you own or have an interest in.

It is impossible to help without some more specific details.


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arkygirl
"It was supposed to get put into the refinance loan."

Sounds like you did a refinance on your mortgage in which case this is probably legal. How can you say in one sentence that it was "not related to the mortgage on your home" and in the next say "
was supposed to get put into the refinance loan"? That makes no sense at all.

Did you, or did you not, refinance your home mortgage? Only you know for sure because you sure have confused me with this.
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Methinks this might have been a refinance with cash out to the borrower.

Very common a few years ago during the boom
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sorry if I'm confusing but to tell the truth what has happened is confusing to me.

Going to refinance our home loan.  Told we had to complete kitchen project to qualify for loan.

We went to our lender and asked if they could give us some money and add to the loan.  They say no.

They say they issue a small loan, like a credit card type loan so we can finish house and then they start application to refinance. 

They gave us a check for $2,000.  We got other funds from parents and help from friends on labor.

There was no paperwork, we didn't sign nothing.  They didn't ask and we didn't know if that was normal or not.  But the check memo line says 'loan'.

Okay.  but we make our next home payment and then when the next statement comes in, it shows the $2,000 as "loan" and it was added to our principal and interest charged.

I don't know how to explain it.   We kept asking them to take it off and that we make a separate payment because our interest rate is too high.  They say they can add the loan on our loan.

So I'm wonderig how can they do that if the note and deed of trust say one amount and they now say a new amount?

Can they foreclosure on a number that is warped by them adding the extra amount?

Yes, my dad said it was weird too how the bank did and he thinks the loan office made a big mistake so that is why it got added to our loan.



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Jennie it's not clear what you are asking for here.

I did in fact have loan with Option One and Ameriquest suddenly gave me a check for $98,000 combined with outrageous interest rates, terms conditions, prepayment penalties in attempt to extort fees, interest payments and initiate foreclosure on a home with several hundred thousand in equity. So in the respect of transfer of servicer from Option one to Ameriquest in a manufactured default I have both a case of ms fraud and a fraudulent cash out refie.

Typically with ms fraud  a lender transfers the loan to a servicer which uses various methods to attempt to collect fees or initiate foreclosure by methods such as having the borrower send the payment to the old lender and marking the payment as late or lost, refusing payments, marking payments made on time as late and adding other charges and fees.

If you are saying your loan was transferred to a servicer or lender you did not take out a loan with then you may have an unusual hybrid case similar to mine.

If you took out a loan with hidden fees and charges or  different terms than you understood or signed for then you have predatory or fraudulent loan which is something different than ms fraud.

You need to clarify if you were transferred to a servicer to collect the payments which  is initiating a foreclosure you feel is due to incorrect charges,  accounting practices or just plain initiating a foreclosure by refusing payments or some similar circumstances.

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Hello Jennie I answered your original post and saw that you added an additional explanation.


Forget about the $2000 loan for one minute did you get a loan you never agreed to or signed for, replacing your original loan? I did so I know it happens.

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arkygirl
OK, the loan you got was to go toward a kitchen remodel. The kitchen is attached to your home so your home would be the collateral.

The bank issued you an advance on a possible refinance pending the kitchen remodel completion....a refinance that apparently never took place so there are no new documents.

You should have filled out an application for a separate "side" loan if you wanted a separate payment schedule for the $2000.00. Since you did not do that the bank added the $2000.00 to your current loan. No, it is not "normal" for any bank to just hand out checks without paperwork, but the bank saved itself the bother of loan forms.

Banks do not really give "credit card type loans" i.e. unsecured loans. You used to be able to borrow modest amounts on a signature loan without collateral, but I am guessing those days are far behind us.

I would guess this is legal. Since you accepted the check, endorsed it, cashed it and spent the money and did not complete the refinance, the bank will append it to the current loan. They may be guilty of misleading you by calling it what they did and acting like it was something they did out of the goodness of their little pea-pickin' hearts but it is probably proper and not a mistake.

I am sure the paperwork will be amended to include the "new" amount and they hold the canceled check to prove that the transaction took place. You, on the other hand, have nothing to prove anything. Clever of the bank, hey? I think they probably knew exactly what they were doing.

Now that they claim you are in default and near foreclosure they will not offer you a separate payment schedule or new loan because they claim you are high risk.

State laws vary so you may want to consult an attorney about this. If your bank is a national bank, I wish you luck even though the Supreme Court recently handed back some consumer protection duties back to state AGs. You may want to check with your state Attorney General if you feel you were lied to.

Disclaimer: I am not an attorney. Common sense tells me that Jennie was targeted and misled but I can prove absolutely nothing.

Tip of the day: Beware smiling friendly bankers holding out large checks and not asking for paperwork pertaining to those checks. It may be a trick.



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On this topic when the broker does an over the phone app 1003 isn't he supposed to include the primary residnce that will be securing the loan under  Assets-real estate owned

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I am fairly sure that no creditor can charge you interest if you did not agree to it.

If it were me, I would send a letter asking Bank to provide documentation showing that the $2,000 is/was a part of the original loan, otherwise remove immediately and recalculate the interest.   Send letter certified return receipt.

I am not sure where on the internet to find specific information about this.  I just recall a long time ago reading an article in the newspaper about this type of issue.  It involved a car loan.

It all boils down to this basic fact:  Do they have proof that the $2,000 was not a private loan?






Jennie wrote:   They gave us a check for $2,000.... 

There was no paperwork, we didn't sign nothing.  They didn't ask and we didn't know if that was normal or not.  But the check memo line says 'loan'. ...

when the next (loan) statement comes in, it shows the $2,000 as "loan" and it was added to our principal and interest charged.

So I'm wonderig how can they do that if the note and deed of trust say one amount and they now say a new amount?

Can they foreclosure on a number that is warped by them adding the extra amount?
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That's kind of what my dad said to us.  He said unless the check says its an advance on loan #, then they have to prove it was.

So all we got to do is send a letter and they will remove?





I am fairly sure that no creditor can charge you interest if you did not agree to it.

If it were me, I would send a letter asking Bank to provide documentation showing that the $2,000 is/was a part of the original loan, otherwise remove immediately and recalculate the interest.   Send letter certified return receipt.

I am not sure where on the internet to find specific information about this.  I just recall a long time ago reading an article in the newspaper about this type of issue.  It involved a car loan.

It all boils down to this basic fact:  Do they have proof that the $2,000 was not a private loan?
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4 Justice Now
Jennie

Jennie,

There's another factor that you should be aware of:

Don't assume that the bank and/or servicer is going to act in accordance with the law. Unfortunately, it simply doesn't seem to matter anymore due to the fact that. for most part anyway, it simply is not being enforced.

R,

4J
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arkygirl
Fact: Banks do not loan money "interest free". Anyone thinking they are walking out of a bank with an interest free loan is naive.

Fact: Banks do not give anyone money out of the goodness of their heart. That loan check was bound to show up somewhere. Again, naive to think otherwise.

Fact: Jennie made a mistake by taking the check without filling out a loan application so that she would know exactly what the terms of the loan were. To make any kind of oral agreement with a bank is to invite disaster and I am surprised at any real bank allowing this as it has been explained. Is it a real bank or a loan shop?

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It all boils down to this basic fact:  Do they have proof that the $2,000 was not a private loan?


The question will really boil down to "Can Jennie prove that this advance was NOT supposed to be added to her current loan?" Jennie has nothing to prove anything to anyone. The bank has what it needs to justify whatever it did.

Jennie could hire an attorney and fight this out which will cost her more than it is worth. Just guessing, I would predict that she would lose because she endorsed the check and the courts would rule that she owes the money and did not do her own due diligence to ensure that the loan was constructed in the manner she wanted. That is, she did not get something in writing. Huge mistake. Naivete is not a good defense.

I wish Jennie luck with her letter and would advise that she become a little more schooled in how finance works before entering into agreements (written or oral) with banks. The entire financial sector has turned into a giant predator and people must protect themselves against abuse.

Let us know how this turns out. Maybe the bank will bend, but probably not without threats of legal action.

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