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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With all the great minds on this website/forum is it at all possible to find out if a mortgage loan was paid for by a credit default swap, PMI or any other insurance? because if we can all of the defaulted note are free and clear.  In carpenter v. longan a supreme court ruling over 100 years old states...
"When the note is paid the mortgage expires. It cannot survive for a moment the debt which the note represents. This dependent and incidental relation is the controlling consideration, and takes the case out of the rule applied to choses in action, 276 where no such relation of dependence exists. Accessorium non ducit, sequitur principale."
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   To answer this question, check to see if the plaintiff is a legitimate entity.
If not, the Note was probably already paid off.
   Also, think about this, once a money judgement is entered, the Note and
mortgage no longer exist. They are replaced by the money judgement. If a
certified copy is not recorded, there no longer exists a lien against the property. Chapter 7 wipes out unsecured debts therefore, file chapter 7
after the judgement and list the property as homesteaded and the debt
as unsecured. See what happens! Any predictions will be welcome along
with an explanation of why you believe what you believe!
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Mike H,

I helped a friend file chapter 7 a few months ago. Here's how it went so far:

Mortgage was listed as unsecured debt. Also included as unsecured debt was the pool his mortgage was in and notice was mailed to the SEC in washington (Attention all investors; Deutsche Bank National XXXXXXXLoan Trust 2006-2)

No one showed up at the creditor meeting and no one has filed any motions to lift the stay. "NOTHING".

We are keeping our fingers crossed because he will be discharged the first week in May. Than we will have to find out what is next???? I think that means that he is discharged of this mortgage debt.

I hope I am right.

cmc
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CMC
    What you have discovered is that DBNC is not a real entity. It is a fictitious name being used to fool the Judge. The real DB got paid off out
of TARP funds.
     The huckster behind DBNC won't push his luck in BR Court because the
sanctions are not worth the risk.
      The lesson here is this: always check to see if the plaintiff is a real
entity or simply someone using a similar name to a real entity.
      Also, as I said above, once a judgement is entered, the Note and mortgage no longer exist. In my opinion it becomes an unsecured money
judgement unless a certified copy is filed with the County land records.
The stay prevents this from happening so if you list the property as homesteaded and the debt as unsecured, most if not all of the debt should
get wiped out. Of course it depends on how big the Homestead exemption
is in your State. In some States it is so small, it won't make much difference
but in others like Florida where it is large, it will make a difference.
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Mike H,

It was done like that. And as I said, he hasn't heard a pin drop yet.

I will have to do some research after he is discharged. I don't know where to start. Does this mean that he is going to own his home? Does this mean that the bank can still take his home down the road? Should he take his discharge to the county court in reference to his foreclosure?

Getting a little confused now, the more I think about it.

cmc


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The Equitable One
CMC,

If your head hasn't exploded yet then you aren't truly confused.

(an attempt at humor)

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CMC
    That's a great question. I think the answer is yes, he will own it free and clear but he will probably have to do a quiet title action before he could ever
sell it or remortgage it.
    One of my customers is in exactly the situation described here and he also
has a Trustee meeting in May. I can't wait to see what happens.
     In his case NCM was the original lender, there was no assignment of the
mortgage and note but pretender DBNTC got a default judgement because
he was diverted into modification negotiations which led nowhere so they
got a default judgement on him. I tried to get it vacated but he waited to
long to see me so we couldn't get it on the calendar in time to stop the sale.
     At that point, the only alternative was a Chapter 7 to stop the sale.
Now it looks like he might have lucked out because the Florida Homestead
exemption more than covers the value of his property so he may walk away
owning it free and clear. I'll keep everyone informed on how it works out!
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The Equitable One,
I need some humor. That was good.


Mike H,
I will keep everyone informed also. As soon as he gets his discharge we are going full speed ahead.

cmc
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I am confused and my head is about to exploded
How can I find out if a mortgagage has been paid by PMI ?
Does the fact that the  note is now in a Securitized Pool means that my loan is paid by them ?
Does the institution i.e PMI insurance company must file a Satisfaction of Mortgage in my county when they supposely pay off the loan to the lender ?
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Ann,

In my opinion, I may be wrong. I think that if you can prove that your note was paid, than why wouldn't a satisfaction of mortgage be recorded?

cmc 
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Thats the million dollar question guys, if we can prove some insurance ie CDS, PMI and/or title paid the loan off then we would be free and clear.  But the trusts arent going to let that happen, if they did they wont be able to double dip and collect on the insurance and take back the property and sell it because that is all gravy in the pockets!!!!

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