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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bobbief
http://livinglies.wordpress.com/2012/01/24/alabama-appelate-court-deals-death-blow-to-thousands-of-foreclosures/
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Still in my home
Not sure what this means for other states but one thing for sure if the banks start loosing money again I am sure the feds will bail them out again. Just to bad ordinary citizens don't get bailouts.
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I would like to see what others think of this. Is it just another wing nut theory or something real? Just wonder why there is only 1 reply other than myself? And no I did not post this. I am from Wisconsin not Alabama.
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bobbief
http://caselaw.findlaw.com/al-court-of-civil-appeals/1592106.html
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Bruce
Thanks Bobbie.
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f

 

First, I have to wonder about the intentions of any person who links the site of swindler Neil Garfield to call attention to an appellate case.

 

Is this person actually trying to help distressed borrowers or simply trying to drum up additional business for the swindlers?

 

The post probably ought to have simply been removed by the site administrators, if they were paying attention and actually concerned about borrowers.  I person actually interested in this case should have simply linked the case together with the style, case number and court.

 

I am not particularly surprised that ka, t, Bill or other Forum regulars haven't posted responses, since the thread seems to exist mostly to create business for debt elimination scam artists.

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Bill
f wrote:

 

First, I have to wonder about the intentions of any person who links the site of swindler Neil Garfield to call attention to an appellate case.

 

Is this person actually trying to help distressed borrowers or simply trying to drum up additional business for the swindlers?

 

The post probably ought to have simply been removed by the site administrators, if they were paying attention and actually concerned about borrowers.  I person actually interested in this case should have simply linked the case together with the style, case number and court.

 

I am not particularly surprised that ka, t, Bill or other Forum regulars haven't posted responses, since the thread seems to exist mostly to create business for debt elimination scam artists.


Yep, I agree....

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With those words tens of thousands of foreclosures, if not millions, are cast into doubt and, in Alabama — arguably the most conservative state in the nation, thousands of foreclosures can be overturned after eviction, after the sale at “auction” because if the creditor did not have proof of the sale of the loan (including payment, to complete the transaction, then they couldn’t very well initiate any Notice of Default, Notice of Sale, or submit a “credit bid” at auction, simply because they were not the creditor.

This is why homeowners, investors and banks looking to refinance property that was ever subject to claims of securitization and foreclosure must have the information contained in our COMBO title and Securitization report (see above). That house you think you lost or are in the process of losing or are in the process of buying or are in the process of refinancing needs to have these questions cleared up before anyone can proceed.



You need to read the case the Court relied upon to make this decison.  I don't see how he came to this conculison.......

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because if the creditor did not have proof of the sale of the loan (including payment, to complete the transaction, then they couldn’t very well initiate any Notice of Default, Notice of Sale, or submit a “credit bid” at auction, simply because they were not the creditor. 

I really don't see any support for his other assertians.......

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With those words tens of thousands of foreclosures, if not millions, are cast into doubt and, in Alabama 

This is Mr. Garfield's usual GARBAGE to buy his useless audits for THOUSANDS of dollars.  

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This is why homeowners, investors and banks looking to refinance property that was ever subject to claims of securitization and foreclosure must have the information contained in our COMBO title and Securitization report (see above). That house you think you lost or are in the process of losing or are in the process of buying or are in the process of refinancing needs to have these questions cleared up before anyone can proceed.

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Bill
The same applies to securitization audits.

http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt177.shtm

FTC Consumer Alert

Forensic Mortgage Loan Audit Scams: A New Twist on Foreclosure Rescue Fraud

Fraudulent foreclosure “rescue” professionals use half-truths and outright lies to sell services that promise relief to homeowners in distress. According to the Federal Trade Commission (FTC), the nation’s consumer protection agency, the latest foreclosure rescue scam to exploit financially strapped homeowners pitches forensic mortgage loan audits.

In exchange for an upfront fee of several hundred dollars, so-called forensic loan auditors, mortgage loan auditors, or foreclosure prevention auditors backed by forensic attorneys offer to review your mortgage loan documents to determine whether your lender complied with state and federal mortgage lending laws. The “auditors” say you can use the audit report to avoid foreclosure, accelerate the loan modification process, reduce your loan principal, or even cancel your loan.

Nothing could be further from the truth. According to the FTC and its law enforcement partners:

  • there is no evidence that forensic loan audits will help you get a loan modification or any other foreclosure relief, even if they’re conducted by a licensed, legitimate and trained auditor, mortgage professional or lawyer.
  • some federal laws allow you to sue your lender based on errors in your loan documents. But even if you sue and win, your lender is not required to modify your loan simply to make your payments more affordable.
  • if you cancel your loan, you will have to return the borrowed money, which may result in you losing your home.

If you are in default on your mortgage or facing foreclosure, you may be targeted by a foreclosure rescue scam. The FTC wants you to know how to recognize the telltale signs and report them. If you are faced with foreclosure, the FTC says legitimate options are available to help you save your home.

Spotting a Scam

If you’re looking for foreclosure prevention help, avoid any business that:

  • guarantees to stop the foreclosure process – no matter what your circumstances are
  • instructs you not to contact your lender, lawyer or credit or housing counselor
  • collects a fee before providing any services accepts payment only by cashier’s check or wire transfer
  • encourages you to lease your home so you can buy it back over time
  • recommends that you make your mortgage payments directly to it, rather than your lender
  • urges you to transfer your property deed or title to it
  • offers to buy your house for cash at a fixed price that is inappropriate for the housing market
  • pressures you to sign papers you haven’t had a chance to read thoroughly or that you don’t understand.
Finding Legitimate Help

Housing experts say that when you’re behind on your mortgage payments, maintaining communication with your lender is the most important thing you can do. Contact your lender or servicer immediately if you’re having trouble paying your mortgage or you have received a foreclosure notice. You may be able to negotiate a new repayment schedule.

Call 1-888-995-HOPE for free personalized advice from housing counseling agencies certified by the U.S. Department of Housing and Urban Development (HUD). This national hotline – open 24/7 – is operated by the Homeownership Preservation Foundation, a nonprofit member of the HOPE NOW Alliance of mortgage industry members and HUD-certified counseling agencies. For free guidance online, visit http://www.hopenow.com. For free information on the President’s plan to help homeowners, visit http://www.makinghomeaffordable.gov.

To learn more about home mortgages and other credit-related issues, visit http://www.ftc.gov/MoneyMatters. This site offers short, practical tips, videos, and links to reliable sources on a variety of topics from credit repair, debt collection, job hunting and job scams to vehicle repossession, managing mortgage payments and avoiding foreclosure rescue scams.

Reporting Fraud

If you think you’ve been dealing with a foreclosure fraudster, contact:

The FTC works to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint or get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. Watch a video, How to File a Complaint, at ftc.gov/video to learn more. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

March 2010

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Bill
http://www.nakedcapitalism.com/2011/05/new-homeowner-scam-mortgage-securitization-audits.html

MONDAY, MAY 16, 2011

New Homeowner Scam: Mortgage Securitization Audits

Con artists who prey on people who are already in financial hot water deserve their own circle of hell. The latest sighting comes via April Charney: “mortgage securitization audits” which charge thousands of dollars for dumping public information into binders. From Brian Canupp’s website:

While millions of Americans are in the middle of the foreclosure storm a cottage industry of companies and individuals providing Mortgage Audits are now attempting to capitalize on the fear and desperation gripping many homeowners….

In the last 6 weeks I have met with three families that had paid up to $2,100.00 for an audit. All three of these “audits” were three ring binders filled with documents from the Securities and Exchange Commission Home page and articles from the newspaper detailing successful mortgage defense decisions. These products are problematic for a number of reasons:

The documents from the SEC are free and available to the public.


The newspaper stories, while informative, cannot be used as precedent to a judge.

The analysis does nothing to breakdown what has happened with your payments after they were received by the Mortgage Company.

The “expert” who is rendering the opinion would never be accepted by a court to testify in an expert capacity.
The analytical process supporting the audit conclusion is flawed and that leads to an impossible opinion.

None of the analysis brought to me by clients have included a review of the money paid by the homeowner.

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Jeff

Neil Garfield is a swindler of the very worst ilk.  As has been pointed out by others, his website consists of a combination of useful material he has pirated from other people and totally useless and vacuous nonsense intended only to raise false hope.

 

The site exists NOT to help borrowers, but rather to swindle them.  Mr. Garfield sells useless and worse than useless materials to the ignorant for inflated prices.

 

Any person posting links at this site to Mr. Garfield's Living Lies site is doing a serious disservice to distressed borrowers!

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Bill
Jeff wrote:

Neil Garfield is a swindler of the very worst ilk.  As has been pointed out by others, his website consists of a combination of useful material he has pirated from other people and totally useless and vacuous nonsense intended only to raise false hope.

 

The site exists NOT to help borrowers, but rather to swindle them.  Mr. Garfield sells useless and worse than useless materials to the ignorant for inflated prices.

 

Any person posting links at this site to Mr. Garfield's Living Lies site is doing a serious disservice to distressed borrowers!


People outside of this forum agree also.........


Debunking the Gospel of Garfield

Since starting MFI-Miami almost 2 years ago, I have received some pretty strange calls from people. I’ve had real estate agents call me who have bought 15 income properties and then try to claim they are victim of Predatory Lending. I’ve had people who have bought investment properties who thought because they watched two episodes of The Apprentice they’re as smart as Donald Trump. I have gotten calls from the conspiracy theorists who think the Obama Administration wants their property so they can build an internment camp on it when the armed UN hovercraft come skimming over the Everglades. These are some of the more interesting calls.

However, the most interesting calls I get are from Pro Se litigants. What are Pro Se litigants? Pro Se litigants are homeowners who represent themselves in court and usually have no training as a lawyer. They are usually people who think they know more than everyone else or have the attitude of “Why should I hire a lawyer when I can do it myself.”

As the saying goes, “An attorney who represents themselves has a fool for a client.” Here’s a case in point. I had a foreclosure client when I started MFI-Miami, who filed an answer to his foreclosure that he copied and pasted off Neil Garfield’s website, Living Lies. My client then tells me he was going file a federal civil RICO case against his lender because his wife’s “forged” signature violated interstate commerce laws which is a RICO predicate. When I asked him who told him he could do that, he claimed he read he could do it on Garfield’s site. I have since received dozens of calls from people asking me for free advice based on what they read by Neil Garfield.

I have received at least 6 calls in the past week from Pro Se litigants claiming that they don’t know what to do because their Florida judge laughs at them for demanding the wet inked copy of their note. This is one of those misconceptions out on the blogosphere that had its origin from the Living Lies site. The misconception is that if the servicer or the Trustee cannot produce the original wet inked note, then they lack legal standing to execute a foreclosure and therefore the debt obligation is now nullified. This is absolutely false. In Florida, the transfer affidavit or note must officially be on record with the county 60 days prior to a servicer or Trustee filing the initial foreclosure complaint. When the attorney files the foreclosure complaint, all they are required to do is attach a copy of the original note.

For those you who don’t know who Neil Garfield is, he is a self-proclaimed Foreclosure Expert who holds seminars across the country for lawyers and Pro-Se litigants helping them fight foreclosures. According to his biography, was an Economist, Accountant and he is a “Chairman Emeritus” of a consortium of financial service companies and claims to be the “ultimate insider” on Wall Street. (Page 4, Garfield Continuum Handbook) Yet, he never mentions which companies he has worked with or the positions he held. The state of Florida also has no license on file for him being an accountant.

If he was a Wall Street “Insider,” he was like Lon Chaney aka The Man of Thousand Faces because friends of mine in the media who cover Wall Street had never heard of him until he started doing seminars. He was a trial attorney in Florida from 1977 until 1993 and by his own admission to me when I attended his seminar in Orlando last May, has not done any litigation work since then.

He preaches that, “homeowners can walk into a foreclosure hearing and walk out owning their house free and clear.” (Page 5, Garfield Continuum Handbook)

He even preaches this on his website and it is over-simplified comments like this that draw people to his website looking for easy answers. Like a late night televangelist, Garfield delivers a lot of what on the surface appears to be easy solutions but in reality are very complex legal arguments. Unfortunately, for the homeowner, foreclosure defense is not easy. It is a lot of painstaking detective work and TILA rescissions happen in only one of out of 50-75 loans.

Neil Garfield’s theories make for great legal debate and table talk for foreclosure defense junkies and conspiracy theorists. However, in reality his theories are impractical for the average homeowner due to the astronomical fees of legal research and litigation that they would require. What Neil Garfield fails to understand or express to his seminar participants is that judges do not like going out on the proverbial limb and therefore will not make precedent making decisions.

In other words, Neil Garfield is great at talking the talk but is a little short on walking the walk. He lacks the practical litigation experience to transform his theories into reality. Even now if you read his blogs, attorneys as well as Pro Se litigants who are frequent contributors phrase their comments as if expressing opinion instead of fact.

Garfield has created a problem in judicial foreclosure states such as Florida. He has unleashed an army of Pro Se litigants who have clogged the courts trying to argue their foreclosure cases using theories they barely understand. They lack not only legal expertise but lending expertise. They are totally unprepared to argue their own cases and fail to learn or obey court procedure. Many of them go in to court trying to argue constitutional law or TILA and find themselves summarily dismissed by a judge. They then write comments on the blogosphere claiming the judicial system is corrupt and that corruption is a result of some mass government conspiracy.

What the Garfield seminars fail to express to these litigants is that foreclosure laws vary from state to state and if you are fortunate enough to live in a judicial state like Florida or New York, judges want to hear state statute not federal statute unless it is relevant to your case.

This also creates another problem for the court system. The problem consists of the homeowners who have been successful in getting their foreclosures postponed. Fed by what they read on Living Lies, these pro se litigants begin having delusions of grandeur and begin believing they are the next Alan Dershowitz or Gerry Spence. They begin dispensing legal advice on the internet. The reality is, it was not the Gospel of Neil Garfield or the Pro Se litigant’s superior linguistic or legal abilities that got the foreclosure postponed but forces beyond the homeowner’s control.

In his 683 page handbook which is riddled with errors, he claims, “Neil has come out of retirement with one purpose in mind – to do all he can to counter the effects of the mortgage meltdown and save the people and the country from the disaster of created by free money using derivative securities that not even experts understood and targeting the least sophisticated members of society.”

This may sound charitable, but don’t believe the hype. At the end of the day, it’s all about the Bejamins. Garfield and his partner Brad Keiser use these seminars to market future consulting work and forensic audits from law firms and Pro Se litigants that attend their conferences.

Don’t get me wrong, I have no problem with people making money and I don’t have a problem with the fees Garfield and Kaiser charge their clients, I do have an issue with what they preach and how they manage the expectations of what they preach to the average homeowner. This industry is filled with enough wannabe Elmer Gantrys or messianic types with no practical mortgage industry experience and the last thing it needs is to encourage more unqualified “healers” to come into this business which is what Garfield and Keiser are doing.

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Jeff

The case can be found at:

 

Patterson v. GMAC MORTGAGE, LLC, No. 2100490, 2012 Ala. Civ. App. LEXIS 21 (Ala. App.  2012)

http://scholar.google.com/scholar_case?case=10210930778384142231

 

This is a good decision, but nothing of a real breakthrough.  The court has simply ruled in a way that vindicates what Mr. Roper has been saying about standing all along.  Note that while others focus on securitization and point to the Horace case, that was a trial court decision.  Two appellate court decisions point to the importance of using Mr. Roper's other arguments on standing and evidentiary issues.

 

Also note that in this case, it is the post foreclosure commencement assignment, even forged, which caused the foreclosure ot be tossed.  This also reinforces Mr. Roper's rule that if the assignment is dated after commencement, use the forgery to destroy the Lender's case.  If the assignment is dated before commencement, attack the assignment.  The Pattersons can still attack the assignment in the next outing!

 

This case would never be a justification to buy any of Mr. Garfield's useless and overpriced foreclosure rescue products.

Also, the decision is of very little significance to any borrower outside of Alabama.

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