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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 I want to thank you beforehand for taking the time to read this and hopefully be able to help.  My name is Mark Cuny and I reside in Wildomar, Ca.

I purchased my first home in October 2006 while I was in Iraq doing contract work. My sister was my power of attorney and signed all the paperwork for me. We found a brand new home in the Wildomar/Murrieta area with Beazer Homes, and I was pre-approved right away because of my good credit and income. At the time, I was pre-approved for 100% financing with an interest rate at 6% on the 1st loan (80%) and 8% on the 2nd loan (20%).
 
Beazer Homes said that if I used their mortgage company they would throw in 20K in upgrades and pay for my closing costs. They also said they could beat my lst mortgage interest rate with a 5.5% interest only 5 Year ARM vs. the 6% my bank was offering. This sounded perfect! Little did we know, the loan officer was crooked. She verbally told us the rate was 5.5%, and when my sister signed the loan paperwork, she also explained it to her that it was a 5.5% interest only 5 Year ARM. What she neglected to say and point out in the large stack of loan papers was that the 5.5% rate was a negative amortization rate, and that my REAL interest rate is 8.5%. (Linda Smith and Beazer Mortgage would be making a killing on this loan by marking my interest rate up - that meant a great deal of money in Linda's pocket - at my expense!)

Once I received my closing paperwork and first mortgage statement - we realized we had been conned. Needless to say, I love this home and want to keep it. I have perfect credit and decided to pay the 8.5% interest rate for a year and then just refinance when my one year prepayment penalty was up. This meant I was stuck in Iraq doing contract work for a year more than I planned. This also meant leaving behind my new wife (married in 3/2007) in a large home all by herself. I am working to pay for a home I cannot even live in or enjoy. Now a year later with the decline in home values,I cannot even refinance. EMC Mortgage could easily give me a loan modification, but they say I have to leave my job in IRAQ and fall behind on my payments before they will assist me. This is crazy! I am basically risking my life to be able to pay down all my other bills so I can hopefully one day come home and join the police force and afford my mortgage.

I have worked too hard to have a credit score of above 720 to just throw it all away because Beazer Mortgage/Linda Smith and EMC Mortgage are not ethical. Note: I am not the only buyer that Beazer Mortgage conned. My next-door neighbor is in the same scenario.

This is the dilemma that plagues our streets.  There is 4 or more homes alone on my street that are foreclosed and more to follow; they are even continuing to build more when they can’t even sell the ones they finished.  This is causing home prices to drop heavily and if they continue to do business the way they do, it will hurt Wildomar bad. 

I would like your help to ask why this happened against Beazer.  How they could allow this to happen and the trouble it has caused this community!  Please help me to correct this and put and end to Beazers moneymaking schemes.

Sincerely,

Mark Cuny
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Mark,

Unfortunately there's several in this position. My best advice is to tackle them for the TILA, RESPA and other violations. Have you done a QUALIFIED WRITTEN REQUEST yet?  Go to http://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea10.shtm 

I will also tell you that an attorney most likely will be needed. Unless maybe you can find a good real estate paralegal. I will also tell you that you'll face attorney's telling you their to busy with clients they already have.

It seems I've read articles about other attorneys already suing this group. You may want to do a google search and see if you can find the attorneys handling cases already.

But most definitely. Tackle them for the items above and there's various others. You may end up with your whole loan having to be rescinded. But won't know unless you find someone to tell you. Which is like a needle in a haystack for a good one that isn't dishonest.

Best of Luck and God Be With you!

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Mark Cuny
Thank you for the quick response, I will take take your advise and use it, but you lost me with your acronyms.  What is QWR?


Thanks again!
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Digger

You mention Beazer Mortgage. How did EMC Mortgage get involved?

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Stephen
This why the RE industry is my mortal enemy.  If you are working for the military, report it to military legal authorities.  These hucksters love to take advantage of soldiers in Iraq and their supporting staff.

I am forwarding your letter to the WSJ, Fortune and Money magazines.
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Mark Cuny
Beazer sold me the home, telling me to finance through them so as to get upgrades and pay for the closing costs.   After closing they sold the loan to EMC and they are not helpful at all in helping to modify the loan!  They are just as crooked!!
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Stephen

I just sent you letter to Senator Schumer.

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Mark Cuny
Thank you,  Anybody that can help please do!   I thank you all for taking the time to read this
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Mark,

Make sure you or your sister gather up every document you have
concerning your loan, especially the mortgage contract and keep
your cancelled checks in an envelope in date order.

I can't tell you how many people have been caught in the bait and switch
at signing.  They are throwing papers at you lickety split to sign, initial
and date to discourage you from reading the papers before you sign.

Add to that, you are excited to get a loan for this house. 

That adds up to disaster because the time to correct the terms is
before you sign on the dotted line.  You'd have to be willing to walk away
from the home and loan.

Next time, all you have to say is, I don't sign anything I haven't read.
Leave it up to the closer which option they choose.  Let you read it right
now as you go along or reschedule the closing to allow you the time needed
to read the proposed agreement on the contract terms.

Since you have zero equity and the house has declined in value would seem
to be bargaining chip in your favor. 

Even 3 months ago, that would not have been true and you could kiss your
house goodbye alongwith any money you put into the loan process, if any.

The paper is over inflated making it essentially worthless to them to
foreclose.  They can't resell the house for more money than you paid for it.

You are going to learn a new phrase shortly.  EMC=Predatory Mortgage Servicer.  They are one of a number of mortgage servicers that have
found a way to enhance their income by charging you all kinds of fees
that you don't owe but because you love your house, you pay the extortion
in order to keep your home.  They will continuously threaten you with
foreclosure.  As you can see from other houses on your street, the loans
were probably upside down and a bad investment. 

It would well be worth your while to find something wrong in the contract.
Type in your web browser HUD Qualified Written Request and go to the site.
Spen the time to read the pertinent information.

Type in T.I.L.A. violations.  Read the different sites to get the idea of
what you are looking for.  How does Right to Recission sound?  That way
if you are still deadset in staying in that house, you've give the noteholder
a reason to change the terms of your loan.

Make a copy of your contract so you can highlight different areas of interest.
Don't write all over your original copy as it may become evidence in a court case.

It would be in your best interest to go over this contract with a fine toothed comb looking for reasons to sue the originator.

I don't believe you are going to get a new loan for this house through a refi
Lenders have suddenly remembered to put underwriting standards back
into the loan process.

I would never say again how much you love your house.  It just
feeds the predators with information that they will in fact use against you.
If not now, later. 

Although it is possible that EMC owns your loan, they usually are the
mortgage servicer.  They process your check and pay the noteholder
minus a small fee that can be found in the pooling and servicing agreement.

While foreclosing on your house isn't going to make them money, the fact
that you put less than 20% entitles them to a personal mortgage insurance
policy at your expense every month.  That's another area where you get
screwed.  You can choose your own PMI carrier and probably pay much
less for it.  Same goes for hazard insurance, if they are paying it.

You should probably run the Mortgage Calculator (type into the web
browser) and pick one you like that will show you how much money
you are throwing down the drain.  It does have a way of snapping you
out of being overly attached to the house. 

I think I used BankRate.com.  It gives you totals of principal and interest
information for each month.  A running total of payments made and how the payments are applied.  You have to watch EMC as it is commonplace for them to misapply the payments when they decide to foreclose or bump up the profit from your loan.

Look around the web for EMC complaints and look here in the menu section
for topics.

No groaning about the work you have to do if you want to either keep your home or fight for better terms and or conditions of your loan.

In the past few weeks, we are getting some hope that our focus on mortgage servicing fraud, is becoming closer to scrutiny by our politicians,
judicial interest and plenty of mad borrowers not to mention investors
that are getting robbed.

Anyway, if you have questions, post them here and we'll try to help.

Finding a lawyer to help is not easy.  Most of them have no idea what to do
except file bankruptcy which only slows down the process of losing
the home.

As you can see from my post that there are conflicting scenarios.  What path will the servicer take?  Who knows, depends on how the wind blows.
What works for one will not necessarily work for another.

There is no clear path to follow.  Use the suggestions you like and ignore
the rest.  Nobody is going to know your loan better than you do.

Dee
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Mark Cuny
Thank you DEE for the time to write that    I have a question about "Walking Away"  if worst comes to worst what intails walking away?  Is it Bankruptcy?  or is it just going into default and waiting for the bank to kick me out and then we leave?  Will I have to pay for anything if I just walk away?



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