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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ABC News: The Blotter

A Deal Too Good To Be True?: Katrina Victims Say Mortgage Lender Misled Them

September 19, 2007 6:00 PM

Brian Ross and Joseph Rhee Report:

Adealtoogood_mn Thousands of homeowners devastated by Hurricanes Katrina and Rita are accusing their mortgage lender of recanting on its promise to suspend their mortgage payments in the immediate aftermath of the hurricanes.

In what they now consider a deal too good to be true, homeowners say Countrywide Home Loans promised they wouldn't have to make payments on their mortgages for three to six months.

From its corporate headquarters in California, the country's largest mortgage lender issued a press release about the offer and put it in writing to homeowners, adding, "Late charges will not be assessed."

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"There would basically be a freeze on our payment, and our payments would be put on the back end," Donna Hellmer of Hammond, La., told ABC News.

Donna and her husband Andrew didn't make the payments. But then Countrywide sent them a notice of default, demanding the missed payments plus late fees in a lump sum, a total of $4,300 due in 30 days.

"They basically told me this was the deal, 'You pay the lump sum, or you're going to be foreclosed on,'" recalled Hellmer, who, along with her husband Andrew, had to take out a new loan to pay Countrywide and keep their home.

The story is one Chad and Rebecca Goodwin of Houston, Texas, know all too well.

They too faced foreclosure and are now suing Countrywide after capturing on tape what their lawyers say is an important admission by a Countrywide representative:

"What they promised me was that it would be tacked on to the end of my loan," Chad says on the call, according to the recording.

"A lot of people were told that, but it wasn't the case," the Countrywide employee says. "Unfortunately, what happened is we were hoping our banks would let us do it, and they wouldn't."

Listen to the Countrywide Call.

According to the Goodwins' lawyer, Jill Bowman, that is just a cover-up. "Quite frankly what happened is they decided not to keep this promise," she told ABC News. "I think because it was going to cost them money."

For the Hellmers in Louisiana, Countrywide's broken promise means paying $200 more a month than they were before Hurricane Katrina.

"They took advantage of people while they were down," she said. "They created more of a financial hardship for us than the hurricane did." 

Countrywide has denied the allegations, and in a statement to ABC News, says it "has been diligently working with customers to develop individual repayment plans."

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Let me add that this is just the latest batch of hurricane victims to have been screwed. I know that many Ameriquest and Litton victims have been right alongside these Countrywide victims and there are many, many others who will hopefully realize what has been done to them and come forward before too long.

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Why?

After reading the posts on this forum and other website I do have a question now. Why on earth are people not able if they fall behind for one month due to unexpected circumstances to just pay the next month a few extra dollars to catch up? Let’s face it not everybody has thousands of dollars stacked in the savings account,

 

You can do it with any credit card. Sure they charge you a late fee but still except the few dollars more that you are paying the next month. So why can’t this work for mortgage payments? All I have read so far is that you can not make “partial payments”. I find this ridiculous and stupid. But that is just my own opinion.

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It's not necessarily that borrowers don't want to make partial payments. It's more of an issue on the servicer's end because their excuse is usually "Our software isn't programmed to be able to deal with partial payments." So when you want to make either a partial payment or an "extra" payment that money is usually dumped into a "suspense" account and held there until enough money comes in to make a combined "full" payment rather than being applied directly to your loan.

I'm sure Dee will be along to fill you in as far as making "extra" and partial payments from a first person perspective.
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Try being hit by, Predatory Lending, Hurricanes, Mortgage Servicing Fraud and Bad Attorney's.
 
Some of those people don't even have a home they can live in, or a place to work. I'm sure it's not only the poor.
 
Try to live without your home and keep making payments on it while trying to survive being hit by hurricanes.
 
It's no fun when you have been hit by one or all of the above, I know, It sucks everyday...It was not easy to make mortgage payments, Have to rent, I still had a truck payment, they promised to pay it off but never did, I had to pay it off. And they kept charging me for forced placed insurance.
 
It cost me more then 20 dollars a day just to drive to my farm to feed EVERYDAY! For 19 months. Till we could find a way to get moved back. It was very stressful!!!!!! Thats more then 140 a week. gas was over 3 dollars a gallon so I'm sure I paid more then 20 most days.
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