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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Billy

I read a news report about a certain attorney, with 1000+ cases, charging his clients only $1500 per year for legal representation because he had streamlined the issues involved with mortgage and foreclosure fraud. Reportedly, he is winning some cases. I have yet to figure out the best way to search for his cases.


This site is rife with detailed discussion of general and not-so-general law and helpful what ifs. I appreciate the opportunity to try to understand any relevance to my case, but I've begun to realize that I don't have the mental capacity to understand on that level. Yet other sites that provide information at a lower level are mostly unreliable or mere hype. While quirks and variations of servicing fraud have been searched out and expounded here, similarities must have emerged by now.


Many mortgages and notes are constructed with uniform Fannie Mae language, so with everything that has become known so far, one might assume that the language was concocted with purpose: to perpetuate The Great Heist. Perhaps this language, good court decisions, and good questions asked here have developed identifiable common issues in the fraud. Would it be possible and advisable to compile a list (brief description) of the common issues vulnerable to defendant attack?


For the layperson, such a list might help select one’s case-specific issues and create a starting point from which to search this site for relevant exposition.
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Thomas
Hi Billy, interesting post. Unfortunately there are too many lenders and pretender lenders that made too many loans to too many people. Because of that while a contract may be essentially the same, most every case has differences and there is no cookie cutter guide to this mess. It could very well be that the attorney you mentioned has a particular criteria of choosing his cases that fit within the guidelines he has decided to pursue.

There is also one other problem that I see with making a general list of defenses. This site and many others like it have trolls from the other side who read every word posted to try to get an advantage over us. We might as well get in line to hand over our keys.

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connect the dots
Of course there is a common denominator. It is called "The GSE Business Model".

94% to 98% of all mortgages are sold to the GSE's on a daily basis. This has been true for the last 15-18 years. Study the Model, it's Guidelines and you will know how to defend your case. The Model is "fatally flawed " with every major scholar on the subject agreeing . All the player/partners of the Model signed agreements indemnifying each other mandated by the government guarantee issues from the onset.  No one is auditing for compliance, every creditable lawyer is attempting to challenge bit and pieces of the Model.

It is not about what you did, it is what they did. It is not rocket science. Back up and connect the dots. The largest "theft by deception scheme in history" with the taxpayer as the victim. The GSEs operated by remote control given a free rein by our dear politicians who bet the Treasury on a fatally flawed business model.
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Bill
Of course there are common denominators emerging in foreclosure defense.  This is kind of a secret, don't spread it around.

1.  Read, understand, and know the local rules in your jurisdiction.

2.  Do the research on the case law in your jurisdiction.

3.  Challenge all the deficiencies in the Plaintiff's complaint.  This includes but in not limited to:

Capacity,
Standing,
Real Party,
endorsements,
negotiation,
assignments,
affidavits,
exhibits,

4.  Make them PROVE all of the above with admissible evidence.

5.  Stay away from the wing-nut theories.

6.  If you don't understand or are confused with any of the above, refer to #1 and #2.

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Watch this: the REST Property Solutions Report will become the gold standard in researching any Demand the Title foreclosure defense. 4000 out of 4000 successful mortgage modification and short sale cases is fairly good.
More info at: http://mortgage-monster.com/sue-your-lender.html

As stated above, your jurisdiction will matter, but the experience and aggressiveness of your attorney will be crucial. But then, as the courts get flooded with these cases, the pressure on the higher courts, legislature, and executive should be crushing.    )

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George Burns
Is it 4000 or is it 1500 reports produced?
Is it 4000 that were successful out of the 1500 or what? 4000 out of 1500 would be a fantastic ratio.

From the website:

" For 2011, third party negotiators can’t do anything you can’t do yourself. The solution is to prepare yourself with the same unbiased calculations the banks use to calculate the Net Present Value of your property and your hardship.
To date, we’ve run approximately 1500 REST Reports. Of the ones that have gone to court as foreclosure defenses, every single one has been welcomed by the foreclosure judge as unbiased proof of a foreclosure solution that stands up to the most critical scrutiny. The judge brings his gavel down on the knuckles of your clueless mortgage servicer and makes it clear that he will hold the servicer legally accountable to good faith negotiations – as evidenced by the calculations of that same REST Report. (Want a court transcript? I’ll send you and/or your judge one.)"

I can't wait to see a court transcript.
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4000 reports and zero failures, period
You can't find a dissatisfied client.
These are mortgage modification or short sale calculations, BTW
But the sterling reputation of REST cannot be denied

1500 is from an earlier report. I apologize.

The page you quote refers to mortgage modifications and short sales
No one in the country today advises "Sue your Lender" w/o an attorney

If I have an email address, I'll gladly forward the Wells Fargo case that ended badly for WF


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Bill

pompapah wrote:
4000 reports and zero failures, period
You can't find a dissatisfied client.
These are mortgage modification or short sale calculations, BTW
But the sterling reputation of REST cannot be denied

1500 is from an earlier report. I apologize.

The page you quote refers to mortgage modifications and short sales
No one in the country today advises "Sue your Lender" w/o an attorney

If I have an email address, I'll gladly forward the Wells Fargo case that ended badly for WF



If you have a case, post the case for everyone to read.
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Moose
pompapah wrote:
4000 reports and zero failures, period
You can't find a dissatisfied client.
These are mortgage modification or short sale calculations, BTW
But the sterling reputation of REST cannot be denied

1500 is from an earlier report. I apologize.

The page you quote refers to mortgage modifications and short sales
No one in the country today advises "Sue your Lender" w/o an attorney

If I have an email address, I'll gladly forward the Wells Fargo case that ended badly for WF




I'm not ready to label your service one way or the other but if there is an actual case in which your product was submitted as (and accepted as) evidence, simply cite the case and we can find it.

Moose

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1. I don't expect anyone to believe me necessarily. Go Google the REST Report for yourself. The FTC has really strict rules on 'advertising, so read and take the statement for what it is.
2. We can't account for REST Reports that are still up for good faith negotiation.But when you have THEIR software, what're they gonna do?
3. This site will not allow .pdf uploads so I'll have to think about that.
Case 3:09-cv-01985-L-RBB - So Cal  Dist CourtMarques vs. WF
Civil No. 09-cv-1985-L(RBB)
ORDER GRANTING IN PART AND
DENYING IN PART DEFENDANT’S
MOTION TO DISMISS

Please let me know if you need more info
also, I'd guess the owner of the REST Report has more if you insist.

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Bill

Moose wrote:
pompapah wrote:
4000 reports and zero failures, period
You can't find a dissatisfied client.
These are mortgage modification or short sale calculations, BTW
But the sterling reputation of REST cannot be denied

1500 is from an earlier report. I apologize.

The page you quote refers to mortgage modifications and short sales
No one in the country today advises "Sue your Lender" w/o an attorney

If I have an email address, I'll gladly forward the Wells Fargo case that ended badly for WF




I'm not ready to label your service one way or the other but if there is an actual case in which your product was submitted as (and accepted as) evidence, simply cite the case and we can find it.

Moose



This is another way for people to make a buck off the uninformed and desperate.  They are selling a service where they try to determine IF you meet the qualifications for a modification using their software.  Of course, they know THE OWNER OF THE NOTE IS UNDER NO OBLIGATION TO MODIFY YOUR LOAN:
Quote:


What do I do if my lender denies my HAMP modification, though my Report shows I’m qualified?
  1. The first thing you should do if your lender refuses to grant your loan modification when your Report shows that you are qualified for HAMP is contact your lender and make sure the data input numbers they’re using in their analysis match up with the numbers you submitted and are shown in your Report.  You should also make sure the bank hasn’t scheduled a sale date in the near future.

    Mistakes happen often, and if there’s a discrepancy that can be corrected, your lender will re-run the numbers and you should qualify.

    If the numbers the lender is using do match up with the numbers shown in your REST Report, ask the lender to explain to you where its analysis differs from the one shown in your Report.  If the person you’re speaking to won’t tell you why you’ve failed to qualify, speak with their supervisor.  Ask that person to explain why the bank is saying you’re not qualified, and tell him or her that you plan to escalate the matter as far up the chain as necessary, including reporting the lender or servicer to Freddie Mac if necessary.

    There have been cases where banks have simply refused to adhere to the rules set forth by the HAMP guidelines for servicers which were published by the U.S. Treasury.

    If your bank refuses to grant your loan modification even though your REST Report shows you as qualified, and it refuses to consider you for any in-house modification program, you may want to complain to Freddie Mac, which is responsible for monitoring HAMP compliance. Go to:

    Borrower_Outreach@freddiemac.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it or https://www.hmpadmin.com/portal/resources/escalation.html

    You may also wish to consult an attorney to assist you in the negotiations with your bank.

    Make sure that you or your attorney checks with your bank to see if a sale date has been set, and if so, make sure you or he or she notifies the bank that there is a dispute and that you are therefore still in the process of applying for a HAMP loan modification.  Banks are not permitted to foreclose while a homeowner is being considered for HAMP

  • Quote:

  • Does the REST Report guarantee that I will be approved for a HAMP loan modification by my lender or servicer??

    No.  No one can guarantee that a bank will agree to modify a loan, or do anything else for that matter.

    But… submitting a REST Report showing you that you qualify for HAMP, along with your supporting documents, when applying for a loan modification improves your chances of being approved under HAMP, because the REST platform is a version of the same type of software platform used my major banks and servicers to determine HAMP eligibility.

    And, when you have a REST Report, you have something that can help you push back, should your bank still refuse to modify your loan.  Without it, it’s worth pointing out, you are essentially unarmed.

  • http://www.restrepportmatters.com/faqs

     

    So pretty much, buy our report, we can see if you are qualified for a modification, if you are and they don't modifiy your loan, yell and stomp you feet, but thanks for paying us. 



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    Michelle
    pompapah says:

    These are mortgage modification or short sale calculations, BTW

    How could a servicer, who doesn't or can't prove it owns the note, modify a loan any more legally than it can foreclose? I would never consider a loan mod now, fearing that the fine print or cleverly worded agreement would allow the servicer to dissolve my rights.

    I think loan mod delays are because the servicer knows it cannot legally modify the loan, in most cases, but it wants to get as much money out of the borrowers as possible before the official denial. I believe my case proves that.

    I sought a loan mod after the death of a joint tenant (right of survivorship) named in my deed. The hardship letter clearly stated the joint tenant's death as the reason I needed help. The servicer kept me on the wait for over a year after agreeing to allow me a reduced payment while it was working on a loan mod. I fell for this fraud and paid every payment as agreed, and I deeply regret that.

    I believe, and I'm looking for a lawyer to be sure, I didn't sign the note, so the only option would have been to refinance the loan. Instead, it accepted payments from me for many months while it took care of thousands of foreclosures already on the docket, then it foreclosed on me. Why not? It was only gain for the servicer.

    The foreclosure suit started many months ago, but I received a letter just a few weeks ago saying that the servicer is working on my loan mod. However, it claims it has not received documents it requested. This claim is untrue, as I sent every document requested--four times. As with most other homeowners, the servicer kept telling me my documents were lost. Of course, the information sent repeatedly was my confidential financials, not the borrower's
    .

    I might be wrong, but I believe
    the servicer failed its requirement to safeguard my confidential information, a violation of the privacy act related to financial institutions, and that it received my private and confidential information and took my money under false pretenses.

    At best, paying for a REST report would be spending good money after bad, and the loan modification pompapah purports to have affected in some of the 4000 cases very likely reset the obligation for the debt.
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    dave
    Quote:
    4000 reports and zero failures, period
    You can't find a dissatisfied client. 

     
    In fact, you wont be able to find a client at all, because this is merely another scam.
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    Bill
    The R.E.S.T. report is just a report that shows your NPV.  This is used to determine if you will qualify (not get a modification) for HAMP.  IF YOU ARE CONCERNED ABOUT YOUR NPV YOU CAN FIND OUT FOR FREE.

    https://checkmynpv.com/

    Why pay HUNDREDS of dollars for something you can find out for free?

    Maybe they will start selling bottled air next.
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    Moose
    Chris, are you referring to document #14 in that case?

    There is nothing I can find in that Order that supports your contention that your REST report was either submitted or considered.

    In fact, the Order granted WF's motion to dismiss (with leave for the Plaintiff to amend their complaint).  It also denied WF's motion to have the case moved to D.C.

    The gist of the case up to that point (August of 2010) is best described by the court:

    Quote:
    Plaintiff alleged that Defendant breached the Agreement [the Agreement between Fannie/Freddie and the servicers who agreed to participate in HAMP) because his loan qualified for loan modification and other conditions for loan modification under the Agreement were met, but Defendant refused to modify the loan and instead commenced foreclosure proceedings. (Compl. at 3-5.) Plaintiff contends that he has a right to enforce the Agreement as a third-party beneficiary. (Compl. at 5-6.) Defendant argues that Plaintiff is not a third-party beneficiary.


    Because the Plaintiff was allowed to modify or amend the complaint, the case is still on-going.

    The gist of the amended complaint:

    Quote:
    12. On April 13, 2009, ASC entered into a Servicer Participation Agreement for the Home Affordable Modification Program (the “Contract”) with Fannie Mae; the latter acted as Financial Agent of the United States. The Contract is attached as Exhibit 1.
    13. If a borrower under a loan serviced or owned by ASC seeks modification, the Contract requires ASC to first determine eligibility requirements of the borrower and the loan in question.
    14. If the borrower and the loan are eligible, ASC must then perform a Net Present Value (NPV) Test to compare the value of the money that it would receive if the loan were modified with what the value it could expect from foreclosure.
    15. If ASC, as servicer and owner the Loan, can expect a greater return from modifying the loan, the loan is considered NPV positive; ASC then must modify the loan absent fraud.
    16. As a servicer of the loan, as opposed to being the owner of the loan, ASC must modify the loan unless the contractual agreement it has with the actual Holder of the loan prohibits modification. In that case, ASC is required to use reasonable efforts to obtain waivers or approval of a modification from the Holder.
    17. Plaintiff is informed and believes the current investor allows modifications of its loans, including the Loan.
    18. To date, ASC has not indicated that the Loan cannot be modified pursuant to HAMP’s terms.
    19. The modification must result in a monthly payment that includes principal, interest, property taxes and insurance, and any other pertinent fees such as Homeowner Association Dues. The resultant payment cannot exceed 38% of the borrower’s gross income. See Exhibit 2, Home Affordable Modification Program Guidelines, March 4, 2009
    and Exhibit 3, U.S. Department of the Treasury Making Home Affordable Summary of Guidelines.
    20. Plaintiff, at all times relevant, was the current owner and occupied Plaintiff’s Home; the Home was not investor owned, vacant, or condemned.
    21. Plaintiff’s Home is a single-family property and is Plaintiff’s primary
    residence.
    22. The total amount of the unpaid balance of the Loan does not exceed the
    Contract’s maximum amount of $729,750 for qualification. (Exhibit 5.)
    23. Under the Contract’s Guidelines, Plaintiff, his loan, and his home qualify for a modification under the Contract’s Qualification Terms. (Exhibit 2 at p. 2.)
    24. Plaintiff’s gross monthly income is approximately $2,850; a 38% monthly payment would be $1,083.
    25. After deducting tax and insurance payments, $783 will apply to the loan each month.
    26. Amortized over 40 years, a stream of payments under the Contract results in a Net Present Value of approximately $390,000.
    27. ASC refused to offer such a modification under the Contract.
    28. ASC agreed to temporarily suspend foreclosure action while qualified
    borrowers, such as Plaintiff, are being considered for “alternative foreclosure prevention options.” (Exhibit 2 at p. 3.)
    29. However, ASC instructed its sale trustee, NDEx West to sell Plaintiff’s Home at auction.
    30. ASC failed to comply with the conditions of the Contract.


    It would appear to me at first glance that counsel involved in a complex matter such as the instant case may have reason to explore the defendant's financial motives or rationale through an independent NPV analysis. If counsel did use the REST report to obtain that, this case may eventually represent evidence to support Chris' claim.

    But it has not been ruled on - and the root decision still is whether or not the Plaintiff is a third-party to the agreement.  The earlier ruling said he was not.

    Clearly, if the allegations made by the Plaintiff in the amended complaint in this matter are true, ASC has engaged in a host of absurdly predatory actions.

    Whether a lay-person could benefit from or use the REST report is, to me, questionable at best.

    Having said that, counsel with cases hinging on loan-mod decision issues would have to make the cost/benefit assessment.

    But I still don't believe promoting it to un-represented borrowers is appropriate.

    Moose


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    Wow! There is so much truth here
    and so much misconception!

    In a modification or short sale, you don't demand the note. It's not an issue
    You just hold the servicer accountable to follow HAMP - and in some cases, their own in-house modification. You are absolutely guaranteed a mod OR a short sale opportunity. You avoid foreclosure and deficiency if you do it right.

    The beauty, as I see it, is that a mod does not preclude your filing a Demand the Note suit five years or less from now. Go ahead and sue later on - it it benefits YOU.

    In a mortgage mod/short sale, you are the defendant (foreclosure) in a Sue for Title, you are the Plaintiff,

    Big Difference.

    We know for a fact that the only reason a servicer employs subterfuge is that they make money on a foreclosure. You're giving the servicer way too much credit for strategy. Servicers are way too busy to prove title for every distressed mortgage they service.

    If you'd had the REST Report, you'd have avoided the servicer's treachery.
    You would submit the REST and your documents as your defense to your District Court.
    Now, the REST PSR does all the research for you and your attorney.
    And can you imagine how much more receptive any potential attorney will be when you hand them all their due diligence research ahead of time?

    I betcha you didn't send the documents registered mail, return receipt requested.
    If you had, or do today, the judge will subpoena the signature to court for your case.

    Fax, Fedex, or UPS, rest assured your confidential documents are lining a bird cage right now.

    REST is accomplishing  permanent mods here folks.No forebearance or any other subterfuge here. A new monthly mortgage payment that is 31% of your new monthly income. Period. End of story. Fine.

    I am so looking forward to Moose and Wm Roper researching what I've said here....

    If you don't call the note, the court isn't going to worry about it either. Call the note in a few years if you choose.

    A mortgage mod is first and foremost a negotiation. A mod or short sale benefits investor and homeowner equally. If you're unemployed for instance, you'd be better off w/ a short sale. I don't want to hurt anyone's feelings, but that's reality, folks.
    Get out, negotiate the deficiency, and live to fight another day. Go lease option another house and buy it in a couple of years.........................

    I wouldn't waste anytime talking to the pisants on the phone. You should have the name of the bank officer that signed for receipt of your mod package. Insist on talking w/ them. Or let them foreclose. They'll lose, big time.
    In-house mod refusal will have to answer to Private mortgage insurer. That will fail also, and they know it.

    One more time, REST guarantees you one of two outcomes, either a mod or a short sale. Period - again.

    http://www.Mortgage-Mod-Monster.com - check it out for yourself.

    Quote 0 0
    Moose
    pompapah wrote:
    ...

    One more time, REST guarantees you one of two outcomes, either a mod or a short sale. Period - again.
    ...



    Mr. Dix, REST cannot guarantee any such thing any more than a mortgage audit can guarantee a TILA rescission.

    It's a tool, not a solution.

    The question remains, how much is the tool?

    Moose

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    Bill

    pompapah wrote:
    Wow! There is so much truth here
    and so much misconception!

    In a modification or short sale, you don't demand the note. It's not an issue
    You just hold the servicer accountable to follow HAMP - and in some cases, their own in-house modification. You are absolutely guaranteed a mod OR a short sale opportunity. You avoid foreclosure and deficiency if you do it right.

    The beauty, as I see it, is that a mod does not preclude your filing a Demand the Note suit five years or less from now. Go ahead and sue later on - it it benefits YOU.

    In a mortgage mod/short sale, you are the defendant (foreclosure) in a Sue for Title, you are the Plaintiff,

    Big Difference.

    We know for a fact that the only reason a servicer employs subterfuge is that they make money on a foreclosure. You're giving the servicer way too much credit for strategy. Servicers are way too busy to prove title for every distressed mortgage they service.

    If you'd had the REST Report, you'd have avoided the servicer's treachery.
    You would submit the REST and your documents as your defense to your District Court.
    Now, the REST PSR does all the research for you and your attorney.
    And can you imagine how much more receptive any potential attorney will be when you hand them all their due diligence research ahead of time?

    I betcha you didn't send the documents registered mail, return receipt requested.
    If you had, or do today, the judge will subpoena the signature to court for your case.

    Fax, Fedex, or UPS, rest assured your confidential documents are lining a bird cage right now.

    REST is accomplishing  permanent mods here folks.No forebearance or any other subterfuge here. A new monthly mortgage payment that is 31% of your new monthly income. Period. End of story. Fine.

    I am so looking forward to Moose and Wm Roper researching what I've said here....

    If you don't call the note, the court isn't going to worry about it either. Call the note in a few years if you choose.

    A mortgage mod is first and foremost a negotiation. A mod or short sale benefits investor and homeowner equally. If you're unemployed for instance, you'd be better off w/ a short sale. I don't want to hurt anyone's feelings, but that's reality, folks.
    Get out, negotiate the deficiency, and live to fight another day. Go lease option another house and buy it in a couple of years.........................

    I wouldn't waste anytime talking to the pisants on the phone. You should have the name of the bank officer that signed for receipt of your mod package. Insist on talking w/ them. Or let them foreclose. They'll lose, big time.
    In-house mod refusal will have to answer to Private mortgage insurer. That will fail also, and they know it.

    One more time, REST guarantees you one of two outcomes, either a mod or a short sale. Period - again.

    http://www.Mortgage-Mod-Monster.com - check it out for yourself.


    Perhaps you didn't read my post, it was a bad cut and paste job.

    http://www.restrepportmatters.com/faqs

     

    Frequently asked questions:

     

    Quote:

    Does the REST Report guarantee that I will be approved for a HAMP loan modification by my lender or servicer??

     

    No.  No one can guarantee that a bank will agree to modify a loan, or do anything else for that matter.

     

    Push your garbage somewhere else.

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    Perhaps you didn't read mine

    REST guarantees EITHER a mortgage mod OR a short sale.
    Geez, fourth time today - 4000 out of 4000
    Why would you call me a liar without proof?

    Go Google "REST Report' before you speak

    Quote 0 0
    Moose
    pompapah wrote:
    Perhaps you didn't read mine

    REST guarantees EITHER a mortgage mod OR a short sale.



    Or what?

    Moose



    Quote 0 0
    Moose
    Chris - How does your price compare with the other REST Report promoter sites?

    Moose



    Quote 0 0
    Bill

    pompapah wrote:
    Perhaps you didn't read mine

    REST guarantees EITHER a mortgage mod OR a short sale.
    Geez, fourth time today - 4000 out of 4000
    Why would you call me a liar without proof?

    Go Google "REST Report' before you speak


    Looks like you have a reading comprehension problem.  I did google REST Report and posted a link to FAQ's. 

    Quote:

    Question:  Does the REST Report guarantee that I will be approved for a HAMP loan modification by my lender or servicer??

     

    REST ANSWER      No.  No one can guarantee that a bank will agree to modify a loan, or do anything else for that matter.

    http://www.restrepportmatters.com/faqs

    Well?  Which is it?  Obviously the person pimping REST in the FAQ's has a little more knowledge and integrity than you do.  THERE IS NO WAY FOR YOU TO GUARANTEE SOMEONE WILL GET A MODIFICATION.  There is also no PROOF a REST Report will be any more successful in getting a modification than using the FREE resources available to find your NPV and other HAMP yardsticks.  Maybe it is better you don't post your name or address on your $20.00 website.  When you start making a guarantee about how your report WILL FORCE THE OWNER OF THE NOTE/SERVICER TO DO SOMETHING (either a modification or short sale) and ask people to pay you for your report I'm sure you are opening yourself to lawsuits. 

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