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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Hello,
 
I don't know if you would be interested in a story of a mortgage company taking advantage of a bad situation, but I feel like I need to share it with others. I understand that there are a lot of people who go for months without paying their mortgage, but we are not that type.  We work hard and are both employed full time.
 
 
We hold a mortgage with Everhome and we missed 2 payments, we sent one in and were getting ready to send the 2nd in when they sent our 1s check back.  We would have been completely caught up on the loan.
 
We have all the missed payments and due payments in our bank account siting.  Everhome sends us a letter staing that we have to pay over 5,000 in foreclosure fees and 3,000 in attorneys fees for paperwork they haven't even filed yet, we have called and all they wanna do is make us fill out loan modification paperwork which we don't need to do, our payment is low enough and we just had a temporary issue.
 
I think they are defrauding us somehow, I realize we were late but really all the fees and they haven't filed anything?  I am also a Paralegal but I don't work in the foreclosure side of the law, I know a little but not a lot.  I just want to pay them and they won't take the money.
 
 
Joy Miller
 
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Still in my home
Went thru that myself and did not get any where. Just jump thru the hoops and stall for time is all I got out of it. They get a bailout and we get the boot.
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    Foreclosing on people is how servicers make their money. This is because they only pay about 2-3% of the face amount of the Note for the servicing rights (read foreclosure rights). When they foreclose, they keep the proceeds of the sale. Contrary to popular belief, it does not go to the investors (in most cases).
    I learned this back in 2004 when I was wrongly accused of defaulting
by servicer Ocwen. They back dated the start date to pay, from May 1,2003 to March 1, 2003 and then started adding late fees until it looked like I was three months in arrears.
    There followed a 3 year battle, which I eventually won (in the sense I
proved I did not default, and they could not foreclose. They were forced
to do a "cram down" of 20K and clean up my credit, but it cost me about
4K in attorney fees to fight it. (Actually the attorneys did nothing, I actually won the case pro se by doing my own legal research. This is how
I learned foreclosure defense and why I have helped about 300 pro se's
over the last 3 years.)
    Servicers target anyone who shows weakness or stupidity. They need
a steady stream of foreclosures in order to make a profit. Once they target
you, your only choice is to fight them. 
    That's why I compare them to "whalers" and the victim is the "whale"
they are hunting. If the "whale" fights back like "Moby Dick", they back
off ,and hunt a different "whale". So, you need to make yourself a "hard
target" if you want them to "back off".
    Actually, their attack might be a "blessing in disquise" because if you can
prove you didn't default, they are looking at paying you damages if you win.
Of course, in the mean time, your credit will be "all screwed up".
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You should get a lawyer as soon as possible. The lawyer can resolve the situation with a reasonal fee . The Bank will be more responsive when you are represented by a lawyer.

If you wait until the Bank file foreclosure lawsuit, it will cost you much more as your lawyer now has to defend a legal lawsuit with all its complication.
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jlcam37
They are limited on mods and what they can change and it will lead to foreclosure anyway, servicers make more money. Sounds like they just want a new signature. Check statute of limitations for contracts, promissory note, debt collection etc, and dont renew SOL
by signing anything.
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HungarianProse
Mike H wrote:
    Foreclosing on people is how servicers make their money. This is because they only pay about 2-3% of the face amount of the Note for the servicing rights (read foreclosure rights). When they foreclose, they keep the proceeds of the sale. Contrary to popular belief, it does not go to the investors (in most cases).     I learned this back in 2004 when I was wrongly accused of defaulting by servicer Ocwen. They back dated the start date to pay, from May 1,2003 to March 1, 2003 and then started adding late fees until it looked like I was three months in arrears.     There followed a 3 year battle, which I eventually won (in the sense I proved I did not default, and they could not foreclose. They were forced to do a "cram down" of 20K and clean up my credit, but it cost me about 4K in attorney fees to fight it. (Actually the attorneys did nothing, I actually won the case pro se by doing my own legal research. This is how I learned foreclosure defense and why I have helped about 300 pro se's over the last 3 years.)     Servicers target anyone who shows weakness or stupidity. They need a steady stream of foreclosures in order to make a profit. Once they target you, your only choice is to fight them.      That's why I compare them to "whalers" and the victim is the "whale" they are hunting. If the "whale" fights back like "Moby Dick", they back off ,and hunt a different "whale". So, you need to make yourself a "hard target" if you want them to "back off".     Actually, their attack might be a "blessing in disquise" because if you can prove you didn't default, they are looking at paying you damages if you win. Of course, in the mean time, your credit will be "all screwed up".


Just wandering Mike, how were you able to help 300 pro se 's ?? Even if you write their motions, eventually they have to go to a hearing and talk to the Judge.....
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Chi Chi
Gus have Mile H. helped you before?
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Gus wrote:
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Just wandering Mike, how were you able to help 300 pro se 's ?? Even if you write their motions, eventually they have to go to a hearing and talk to the Judge.....


Mike H. misspoke. What he meant to say is that he helped himself to the borrower's very last cash. Then he helped them lose their houses by suggesting completely garbage arguments.

Where I come from when a bull is used to inseminate a heifer, the bull is said to "service" the cow. Mike H. performs a similar "service" on distressed borrowers. Mike H. keeps their money. Mike H. then "services" the distressed borrower. A very helpful guy that Mike H.

Hopefully, Mike H. can be convicted on all 300 counts of UPL. I understand that he being watched. Hopefully he will be taken into custody.


Well i am just wondering what kind of service is he offering ? Not want to pass judgment on anybody, however it seems like Mike has some ideas he wants to share..well lets hear it!

I can tell you that very few things in foreclosure defense seems to work, at least in Florida. And even those that do work can be fixed by the Plaintiff fairly easy.....
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Dear Mr. Hungarian Pro Se,
Thanks for your inquiry. No two cases are ever the same but
there are certain things I teach my students to look for.
1) Capacity is fundamental, ie do they have the right to even be in Court? Have they registered with the Dept. of State?
2) Standing means were they the owner/holder of the Note & mortgage at the time they filed?
3) Negotiable or non negotiable Note? Most Fannie Mae Notes and many FHA or VA Notes are not negotiable because they obligate the borrower to do thing besides the payment of money.
4)Phony counterfeit Notes being presented as real. Many times the lender on the HUD addendum is not the same as the lender on
the loan documents meaning the lien was never perfected in the
true lenders name.
5)Verification problems. it is supposed to be verified by the
plaintiff, not the servicer, unless the servicer has a power
of attorney.
Of all these, #3 is the most important. If it is non negotiable, you can bring up the defense of a phony inflated
appraisal, very common in Florida. If you let this pass and the
Judge rules its a "negotiable instrument", it becomes very difficult to win unless you can prove the note is phony, which
it often is.
As for Joe and all the other defamers who really have nothing
constructive to add, all I can say is that they are hopeless
sinners who lie without any shame. They don't believe in the
Creator, so they think they can get away with it. You notice
they never allow direct communication (ie no blue in blog name).
They tend to be "Roper worshippers" who think I had something to
do with his leaving of the forum. That is also a lie. I had very
little to do with it other than calling him out on the lies he
told about me. I have nothing against the guy and alot of what
he had to say made sense even though I did not agree with alot of it and said so in a polite manner.
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HungarianProse
I am waiting for the first case in Florida where the Judge declares the promissory Note non-negotiable in a foreclosure case. It has not happened yet...
3 defenses that have some success in Florida if you follow the appeal Courts: 1.Lack of standing at the inception of the suit, 2. failure to comply with condition precedent ( lack of notices) 3. a challenge to the amount due and owing.

The problem is even if you prevent the summary judgment, the judge or the plaintiff wants to go trial soon or latter. At the trial they bring in one witness! and this person will testify that every thing the plaintiff says is/are true. The Note is in default, you owe the money. They bring in all the documents under the business record exemption rule.You may get lucky with some procedural mistake by the plaintiff such as lack of witness list or something like that...but again that is about all you can hope for.
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....
HungarianProse wrote:
I am waiting for the first case in Florida where the Judge declares the promissory Note non-negotiable in a foreclosure case. It has not happened yet...
3 defenses that have some success in Florida if you follow the appeal Courts: 1.Lack of standing at the inception of the suit, 2. failure to comply with condition precedent ( lack of notices) 3. a challenge to the amount due and owing.

The problem is even if you prevent the summary judgment, the judge or the plaintiff wants to go trial soon or latter. At the trial they bring in one witness! and this person will testify that every thing the plaintiff says is/are true. The Note is in default, you owe the money. They bring in all the documents under the business record exemption rule.You may get lucky with some procedural mistake by the plaintiff such as lack of witness list or something like that...but again that is about all you can hope for.


Don't forget:

1. There is a change of Servicer. In cases like this even at trial the witness will not be able to lay the foundation for the records.

2. You used effective discovery and possibly can get a case dismissed for their failure to follow the courts discovery orders.

It's important to read the trial transcripts floating around on the net. You can learn quite a bit. Keep in mind that they are very uneven in quality. I'd pay special attention to ones which the homeowner's argument prevailed.
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Parris is a good place to start but there are many other good ones.

http://www.scribd.com/doc/104022151/Parris-Transcript
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HungarianProse
You are right, that is what i have been doing. I have also purchased transcript of several trial in my county. Big help to see what works and what does not........
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w
{Quote] "You are right, that is what i have been doing. I have also purchased transcript of several trial in my county. Big help to see what works and what does not........"

Have you had a chance to post them ie: scrib??




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....
HungarianProse wrote:
You are right, that is what i have been doing. I have also purchased transcript of several trial in my county. Big help to see what works and what does not........


I totally agree. You can read the pleadings, then read the transcript, which will give a pretty clear understanding on if an argument works.

When you have a winning argument, you can lift the cases and arguments right out of the pleading and use them yourself if they apply to your case. You are saving a HUGE amount of time. Once you used this to make a good "core" opposition, you can start reading the cases about the nuances. It is important to read WAR's threads on commonly missed arguments. There are many basic arguments that are NOT made by attorneys. There are many basic arguments that are made INCORRECTLY which lose (see Fastiggi). http://www.scribd.com/doc/78299498/Fastiggi-Trial-Transcript
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This is just a rule of the game, a silence to comply with the rules.

==============
http://www.mmolive.com/
http://www.mmohome.com/gold/Maple-Story-US.html
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Each person is a unique, is not the way to go, this is the personality.
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Stephen
OP: Your story is common. I was late a few days back in '99 and Guaranty Bank (not the bank I had my loan with) would not accept my late payment with a late charge. They refused to communicate with me, except to keep sending me threatening letters, then came back with a catchup plan for the delinquency they created, I made the payments and they still foreclosed, even though the loan was current.

The double whammy came when I sued them, went to court with proof of all payments accepted, the bank's own records showing the loan current, and an extra $900 in "Suspense" and the judge refused to look at the evidence and declared "As far as I'm concerned, it's your own damned fault" and slapped ME with a judgement for the bank's legal fees.

Banks are above the law. Be prepared to be destroyed.
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