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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Cash for Keys; Another Reason to Fight Foreclosure

According to today’s St. Pete Times, Chase is offering cash incentives to some homeowners to consent to foreclosure.  I have yet to see this happen on a widespread basis, but it certainly seems like this is becoming more of a possibility for homeowners who fight their foreclosure cases. 

This is indicative of what I’ve been telling homeowners for many years now – if you defend your case, you never know what type of settlement a bank may be induced to offer.  Who knows; maybe the bank will offer a deal like this to you.  Or, if you defend your foreclosure,  maybe the laws will change in a way that helps you.  The only certainty is this – if you give up, and get foreclosed, you lose any ability to take advantage of these possibilities. 

Also, how cool is it that banks are being forced to pay cash to homeowners in foreclosure?  Banks got their bailouts; it’s nice to see some homeowners getting a little relief, too.  

Here is the article. 

JP Morgan Chase has a deal for some homeowners behind on their payments: If they’ll accept a quick sale of their home, the bank will give them $10,000 to $20,000 and forgive what it loses on the mortgage.  Homeowners get the cash after the home is purchased in a short sale, meaning the buyer pays less than what the bank is owed.

What’s in it for Chase? By avoiding foreclosure, a process that can take nearly two years in Florida, the bank saves attorney fees, court costs and property taxes. And it speeds the process of getting bad loans off its books.  The bank began offering the incentive in late 2010.

“The net result is better for homeowners and investors,” said Mary Kay Bean, a Chase spokeswoman.

Chase still suffers a loss in the process. But generally speaking, sale prices on foreclosure homes are lower than those on short-sale homes. 

Bean declined to discuss the criteria used to select homes in the program. But Realtors said the homes are in more desirable locations and newer.

Chase’s offer of cash to walk away from a home and forgiving the loan balance applies only to mortgages the banks owns.

Chase is also offering the cash payment to other homeowners whose mortgages it services. However, whether unpaid balances on these loans will be forgiven depends on the investors who own the mortgages.

In either case, borrowers aren’t walking away without consequence.  After a home is sold, the settlement is reported to credit bureaus, Bean said. Sellers must also pay taxes on the money forgiven by Chase since it is considered income.  Obviously, homeowners whose mortgage balance was not waived will be in worse shape creditwise.

Realtor blogs are buzzing with chatter about this program, saying Chase is offering up to $35,000. Bean declined to confirm that amount.

Another factor beneficial for homeowners and real estate agents: Chase provides an answer in about 35 to 40 days after an offer is made on a home. Most short sales typically take six to nine months to finalize.

“We’ve been working to get than down,” Bean said, stressing that Chase has closed more than 100,000 short sales since 2009.

Florida is saddled with more than 300,000 foreclosures. Thousands of other loans are nearing default because the homes are worth less than what is owed.

Bean declined to discuss whether the cash offer would propel more borrowers into a “strategic default.” The term describes homeowners who can pay their mortgages but stop because they owe more than the home is worth.

“It’s a very individual decision on how some people handle their financial decisions,” she said.

The St. Petersburg Times found two real estate agents who represent borrowers in the Chase program. The homeowners declined to talk.

Andrew Duncan, leader of the Duncan Duo & Associates at Keller Williams Realty in Tampa, is listing a Clearwater home for $150,000. He was skeptical of the offer until holding a conference call with a Chase representative.

“It’s a win-win all around,” he said. “The banks need to do something to get these homes on the market.”

Chris Hounchell, a short sale specialist with RE/MAX Metro in St. Petersburg, represents the seller of a high-end condo. Banks have finally realized they need to prevent more foreclosures, he said.   More importantly, Hounchell said, the cash offers will help stabilize the housing market by ridding the rolls of distressed properties.

“It’s a step in the right direction,” he said. “Chase is offering more money than anybody else.”

Bean offered this advice to borrowers:  “You should open your mail. This could be very important for some.”

Mark Stopa

http://www.stayinmyhome.com

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You know whats is funny is BAC just offered me that program, so I told them that 11K isn't enough, I wrote them back and told them I would take 20k and I wouldn't move out of the house for a year.  Well the company that they hired sent me a collection letter, haha, saying that if I didn't deny the letter they sent me they would assume the debt is valid ?  I told them to send me a copy of the judgment they have against me. 

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Bill
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Well the company that they hired sent me a collection letter, haha, saying that if I didn't deny the letter they sent me they would assume the debt is valid ?



I got the same letter right before I received the foreclosure complaint.
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I have been in foreclosure for over one year and now the decide to send a collection notice ?  it doesnt make sense, some thing is fishy

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William A. Roper, Jr.
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dt said:
I have been in foreclosure for over one year and now the decide to send a collection notice ? it doesnt make sense, some thing is fishy


jt:

Look VERY CLOSELY at the language of the letter(s), including any CHANGES as to the identity of the mortgage servicer, mortgage investor, named plaintiff, etc.

Ther emight have been a sale of the servicing.  They mortgage trust could have REQUIRED the repurchase of the mortgage by the originator.

OR there may have been some other DEFECT in the prior representations as to notice of default, notice of intent to accelerate, notice of acceleration, notice of grievance or some other required notice under the negotiable instrument, mortgage, deed of trust or other mortgage security instrument.

I DO think that a new notice out of the blue is a bit fishy.  You are right to be suspicious and to look for a REASON.

Best of luck and success!
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select portfolio has had this in place for years. they make you sign a document that states you cant sue them should you discover improprieties down the road in the paperwork. review your paperwork before you sign anything

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