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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The Cash for Keys program is nothing more than a bribe by the banks to cover up their errors. They make you sign a document before they give you the cash that states that you do not hold them responsible for any errors that may be discovered after you have received the money (as in the robo signer mortgage mess we are currently in) and that you have NO LEGAL RECOURSE against them should you discover any errors. Select Portfolio has been doing this for years-when i discovered the errors in my file they suddenly increased the bribe (i mean cash for keys) from $1500 to $15,000 in a matter of 2 weeks as long as i signed the paperwork agreeing not to sue them later on. So dont believe that they are trying to help you out-this is cheaper than a lawsuit to them.

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    Fighting it is the best option if you can, but fighting uses up resources and with the corruption rampant in the Courts, even with a lawyer, it is an
uphill battle.
    With all the deflation in home prices, most people have lost any equity they had. They can gamble on the Homestead Exemption in Chapter 7 BK
by listing the judgment as disputed and unsecured and possibly save the
home or get some cash from the Trustee sale. But for many, taking the 20k
and buying another home might be the best option, especially if you can
get a bargain with the 20k or whatever you can get back in BK court.
     There is alot going for the argument that MERS decoupled the Note from
the mortgage and rendered the Note as unsecured. This argument will work
better in BK court than in State Courts. The key is to file BK 7 shortly after
the judgment is entered so they don't have time to perfect the judgment lien
by recording a certified copy of it. So far this year, six of my clients in Florida
used this stategy to wipe out the money judgment and all six are still in there
homes. Only one is still contested.
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Mike - what about summary judgments on investment property in FL?  How do you get the judgment removed from the record in FL after a Ch 7?  I know that it's wiped out - do you petition the court?
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     To answer your questions: With regard to the Ch 7 discharge in Florida,
you have to wait one year, then you can apply to the State Court for a satisfaction of the judgment (Fl. Stat. 55.145).
     In the case of the one which is being contested the issue is whether or
not the plaintiff had a lien at the inception of the case. Our position is that
because the plaintiff never produced the original note (they produced a black
and white photocopy with no endorsements) and the assignment of mortgage
was prepared post filing and recorded post filing, the plaintiff never perfected
its lien against the property, so the judgment must have been unsecured.
     The issue of the money judgment is moot because the defendant received a complete discharge of it in Ch 7 using the the Fl. HX exemption.
The plaintiff did not perfect its judgment lien by recording a certified copy of
it BEFORE the defendant filed Ch 7.(Fl. Stat 55.10) So our position is the
State Court has no right to force sale the home. The hearing on this issue is
Ap 13, 2011. Even in the worst case scenario, where the State Court rules
that the lien existed prejudgment and merged with the judgment so there
was no requirement to record a certified copy, we will then have to use Plan
B which is to file Ch 13 and pay the current value of the property which is
$70,000. The judgment was for $240,000 and that was discharged completely. So he may not get a free house, but worst case scenario, he
got the debt crammed down to an affordable level and he gets to keep the
      On investment property, you don't have the HX exemption, so the only
thing that will work there, is to do a Ch13 and try to get the Bk Court to
"cram down" the debt owed to the value of the property. This is only possible
with investment property.
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I was just offered cash for keys from select portfolio for my mother's home (who just recently passed away).  I am worried that I'll pay for a dumpster and get everything out and "broom sweep" the place clean only to not receive the check.  Does this every happen?

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Yes it does happen. I had some friends who gave up their house and was told by the bank that they would get 5k dollar to clean up. They did clean and never got the money. They also signed something for the bank but did not tell what it was. They probably didn't read it.
They get a bailout and we get the boot.
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We did the cash for keys and got $1500 but we were told we would get $2500 originally.  The REO agent avoided our question about why the thousand less.  My husband signed the papers.  I was standing there in disbelief and shock that this was all happening.  Reality hit hard.  I remember the REO agent saying sign here because we have to report this to the IRS and sign here to verify that you got the money and that he would send us a signed copy of what my husband signed.  I know that my husband did not read what he signed and we never got the signed copies. We were really stupid.  I have always wondered exactly what my husband signed.
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