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 was foreclosed on 3 years ago. I had no clue what was going on & I ended up just walking away. I knew something wasn't right- but I really had no clue that this type of thing was happening all over.

A friend of mine went through the same process with the same company, only she tried to fight & still lost. She went through a lot of work, money & lawyers trying to prove that she made all her payments.

Here's my story in a nut shell.
I had a mortgage with Crown Mortgage, a small town independent mortgage company. They sold my loan, then later it was sold again to EMC Mortgage.

My late husband was meticulous about paying bills on time. He never paid late. Yet this company kept saying he was. He would call & they would tell him that they would fix it & remove the late fee. Meanwhile we would get a statement & the fee would not be removed. He paid the amount minus the fee & sent in the payment. After only a few months- they sent foreclosure notices.

This really upset my husband & in the end the stress killed him. He died of a heart attack in the middle of trying to get the mess fixed.  I tried to take over in hopes to keep the home he built for my children.  In all my grief & them keeping me going in circles I decided that it would be better to just walk. So I did. I moved a few belongings out to a small apartment that I was able to rent. Before I could get a truck & hire movers, I was locked out of my home. I couldn't even get my husbands car out of the garage.

A few months later a huge dumpster was placed in the driveway & they had people in the house throwing out my belongings. I was tempted to go & gather what few things I could, but several of my neighbors were there digging through the piles grabbing things & I was just too embarrassed to show my face.

Time passes & I meet a nice lady who has similar happen to her with the same company. She too lost her home to EMC. She told me that EMC was under investigation & settled with the FTC. She told me about this website, & how there were many fighting this EMC. She told me to come here & ask questions. She said that you all would be able to help me. She even let me use her computer until I can afford to get one myself.

1) are there class actions?
2) is it too late for me to try to get back some of what was lost?
3) I read the settlement agreement with the FTC, & it says they will contact the victims. nobody has contacted me. I called the number given by the FTC, but I have not received a reply or notice.
4) the house was in both of our names,but the mortgage was in my husbands name. Does that eliminate me?
5) she told me to check my credit report, can somebody help me learn how to do that?

I'm sorry about being so uninformed about these things. My husband always took care of these matters & I barely have enough from his insurance to pay rent, utilities & some food. I have no job skills & make a bit of change babysitting my neighbors children here in my apartment. I have no money for lawyers or for additional help.

I won't be surprised if I do not qualify for any settlement.

Please respond & my friend promises to print out all responses for me.

Thanks in advance.
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What state and city is the property in? 
Is it still vacant? 
Are you the beneficiary?
Were your belongings thrown out before EMC took possession?  They are doing that now.  Not legal, but nothing they are doing is.

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Hi- I am the friend who sent Allie here to find answers.

She has no computer- so I guess I will try to help answer what I do know about her situation.

What state and city is the property in?  Illinois. I believe the home was in Mt Prospect, but I am not sure. That is where she lives now. She said the house was not far.

Is it still vacant?  The house was sold by EMC. The trustee for her husbands estate did collect excess funds from the sale. She seems confused about this.

Are you the beneficiary? Yes she was./ I believe that all that was sorted by the trustee.

Were your belongings thrown out before EMC took possession?  They are doing that now.  Not legal, but nothing they are doing is.
I know that she got out all that she could fit into her small apartment. She was planning on having a moving truck come in & move the rest of the stuff to her daughters home. But the locks got changed. I am not real sure of the time line, as I just met the lady a few weeks ago.

I think that her biggest concern is that she has not been notified & she feels that if her husband was taken advantage of that she deserves her share of the settlement. I tried to explain that this type of thing takes a long time, & from what I can tell- others haven't heard anything either.

This was a first step for her.

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Here is some info to get her started in finding out

what she wants to know about EMC.

I don't want to seem cruel but she should not think she will get much money
out of this lawsuit.  So far,  class actions are receiving about $500 for

Type in FTC into your web browser and then type in EMC on their site.
You will be looking for the "Complaint" and the "Settlement Documents.

She should send a letter to the FTC advising them she should be added
to the list of borrowers.

Find the name of the attorney firm that filed the suit and send them
the same letter so she will be on the list of borrowers.

She should try to become well informed on these cases.

She could try legal aid to help her but they probably won't either.
Lawyers have little incentive to help and do the work without getting paid.
Nobody works for free nor should they have to...

She should mosey on over to the library and use their computers.
Call first to make sure they have computers for the public to use.
There are some people here that are using their library rather than shell
money for a computer.

Anyway, good luck.  She should get moving to educate herself.

Most of us have at one time or another set bleary eyed in front of our computers to gather info and insight.  If she has any records concerning
her house and the mortgage, now would be the time to pull it out.  Read it.
Gather the checks that were sent to make payments so you can prove
you were scammed. 


Bear Stearns pays $28 million for unfair mortgage billings

September 9th, 2008, 11:32 am by Ronald Campbell

Bear Stearns & Co. — remember them? — was forced into a fire sale to JP Morgan Chase last March because of its heavy investment in mortgage securities. Now its mortgage billing practices have cost it a heavy fine.

The Federal Trade Commission said today that Bear and its EMC Mortgage Corp. subsidiary have agreed to pay $28 million to settle a FTC lawsuit that accused them of unfair billing practices. The FTC charged that Bear and EMC misrepresented what its customers owed and collected unauthorized fees. They also allegedly violated credit-reporting rules by turning over customers’ names and payment histories to credit agencies without disclosing that some of the amounts were disputed.

Bear and EMC were big holders of subprime and Alt-A loans. The FTC says that as of a year ago EMC, Bear’s mortgage servicing arm, held more than 475,000 mortgages with an unpaid balance of $80 billion.

You can read the FTC complaint here and the settlement here.

Bear Stearns did not admit any wrongdoing in the settlement and JP Morgan declined to comment, according to Reuters.

Here’s more on the Bear saga and its ties to Orange County…

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