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 live in Lee County Florida and back in February of this year a Chase Home Ownership Center was set up in my area to help people with loan modifications.

Now while this sounds like a great idea I am still not sure they are helping people.

I first contacted the local office in Ft Myers Florida back in April. We had been in foreclosure with EMC since January and I thought, this sounds great what Chase is trying to do. Well my excitement soon turned to disappointment.

I called and spoke to a woman who could not answer just some basic questions about the Obama plan that was coming out and if they were indeed allowed to modify a loan that they could not prove they had a right to modify.

Instead I was told I needed to come down quickly and get a loan modification done because there was a sale date set for our house.

Now still being somewhat new and not understanding quite how everything works I immediately excused myself and hung up. I then called the local courthouse to inquire about the sale date I was told that was coming up.

Well it turns out there was no sale date set and the lady at the courthouse told me it hadn't even been to court yet.

I then called back and asked to speak to the manager or supervisor. I then spoke to a gentleman and he explained to me that it wasn't an exact sale date but was showing there could be a sale date coming up. I explained to him that I was very upset and that seemed like a scare tactic or pressure tactics which he assured me was not the case. I then asked the same questions about the Obama plan and if they would be allowed to modify a loan even though they did not have the original note and didn't have the right to modify it. He could not answer so I basically gave up and let the foreclosure case run its course.

Well here we are in October and I thought I might try again. So I call up and speak to the same gentleman in charge as last time. I ask him about the Obama plan again and he still does not know the details. he then asks me for loan number and looks up the file and proceeds to tell me there is a sale date set. Well needless to say I was quite upset, not as scared as last time, but still very upset they seem to be using the same scare tactics.

I then remind him we spoke back in April and after a little bit he remembers who I am. I explain we have a lawyer but am still open to a loan modification if they can send me in writing something saying they can modify this loan even though they don't have the original note and never did hold it when it was transferred from Fairbanks / Select Servicing Portfolio to EMC.

He says he cannot do that and that the original note doesn't matter anyway since everything is electronically recorded. He then says that the local office will not be able to help me since we do have a lawyer.

Now this part really upsets me. He explains to me his office cannot help anyone who has a lawyer or any other kind of third party group unless it is a family member.

Now to me this seems like a huge problem because what I have read it is very important to have a lawyer or someone knowledgeable about loan modifications with you to help guide you.

So, frustrated again I ask if he can provide me with some numbers about how many loan mods his office has done since opening in February. He tells me 6086 loans have been modified but was unable to tell me out of how many applied. Now 6,000 some loans out of say 7,000 might be ok but say its just 6,000 out of 10,000 or 20,000 or more. Then it's not so good.

I did then get his supervisors name and have since placed a call to that gentleman who assures me he will check into everything for me and let me know what can be done.

I guess my point to this post is it seems like business as usual. I have read Chase is in the lead with helping people but it seems they and others still have quite a ways to go.

Thanks for reading.

David Peters


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The Equitable One
There were a couple of articles in todays NYT in re Fannie and Freddie, and also in re the Obama loan mod program. The number of 500,000 loan mods was touted throughout the article. Reading further down it is revealed these are only "trial period" modifications.

Everything I've read thus far suggests a large percentage of loan mods fail, and fairly quickly with some not even surviving a trial period of 3 months.

This is, of course, one of the better sites around to find information on loan mods, and the success rates. Most tales I've read here echo the same elements. A lengthy process, much sending of paperwork and applications, advice given by alleged authorized agents of the servicer/investor, promises, etc. In the end the foreclosure proceeds and no loan mod is accomplished.

I've been reading and litigating long enough now that I probably could adequately represent myself in a loan mod. I seriously doubt, however, that the other side would follow through. Among the first questions I would ask would be "Are you the party with rights to enforce the instruments, and/or with rights to alter the terms of the agreement?" I figure they'd throw a fit and never provide strict proof thereof. Without that why would I even enter into negotiations with them?

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h gosh
Dave Peters:

You may have more problems then you realize, but before we jump the gun, if you would please answer a few questions for me:

1.  Who originated your loan?

2.  What trust was your Note in that Fairbanks/SPS was servicing?

3.  When was your servicing rights transferred to EMC?

4.  Has EMC resecuritized your mortgage?

5.  Who is the Trustee?

There is a lot of fancy dancing going on with SPS/EMC/Chase/Bear Stearns/BOA/LaSalle.  It would behoove you to ferret out the information above, since you may not be dealing with the actual Holder in Due Course, and it is even possible that your note and/or mortgage may be in one of the massive Bear hedge funds that caused the financial meltdown.

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David Peters,

The original note DOES matter.  If your original note was in paper format, UETA does not allow it to converted into a negotiable electronic document without your express permission. 

Search online for UETA and you are interested in reading about negotiable notes. 

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He says he cannot do that and that the original note doesn't matter anyway since everything is electronically recorded. He then says that the local office will not be able to help me since we do have a lawyer.


Per Uniform Electronic Transfer Act (UETA), a paper note cannot be converted to an electronic negotiable instrument without the express permission of the maker of the note.  Check Section 16.

You can get a pdf copy of the UETA online from University of Pennsylvania - http://www.law.upenn.edu/bll/archives/ulc/fnact99/1990s/ueta99.pdf



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Here's some excellent info from Max Gardner surrounding this information. Most of Max's work is worth reading if your fighting this type of battle.

http://www.creditslips.org/creditslips/2009/08/the-lack-of-evidentiary-foundations-fosters-fraud.html#comments
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The Equitable One
Nice reference Alina.

That can also be backed up with UCC 3.501, found at Cornell Law:

http://www.law.cornell.edu/ucc/3/article3.htm#s3-501

Look at 3.501 (b)(2)

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Stephen
More often than not, a "Refinance" is disguised as a "Loan Modification".  No lender wants to "Modify" a loan unless there is monetary incentive.  Too many people have been duped responding to offers for "Loan Modifications" which turn out to be nothing more than another high-priced "Refi".  This is why so many "Loan Mods" crash within 6 months.

Sounds like what Chase is doing is misrepresenting their service.  They are making new loans to replace old loans and calling it "Modification", which is not a misnomer, but is deceptive because the customer understands the term "Modification" to mean a change in the terms of the EXISTING loan, which implies concessions by the CURRENT lender, while keeping the CURRENT loan in effect.
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DAVID PETERS wrote:
I live in Lee County Florida and back in February of this year a Chase Home Ownership Center was set up in my area to help people with loan modifications.

Now while this sounds like a great idea I am still not sure they are helping people.

I first contacted the local office in Ft Myers Florida back in April. We had been in foreclosure with EMC since January and I thought, this sounds great what Chase is trying to do. Well my excitement soon turned to disappointment.

I called and spoke to a woman who could not answer just some basic questions about the Obama plan that was coming out and if they were indeed allowed to modify a loan that they could not prove they had a right to modify.

Instead I was told I needed to come down quickly and get a loan modification done because there was a sale date set for our house.

Now still being somewhat new and not understanding quite how everything works I immediately excused myself and hung up. I then called the local courthouse to inquire about the sale date I was told that was coming up.

Well it turns out there was no sale date set and the lady at the courthouse told me it hadn't even been to court yet.

I then called back and asked to speak to the manager or supervisor. I then spoke to a gentleman and he explained to me that it wasn't an exact sale date but was showing there could be a sale date coming up. I explained to him that I was very upset and that seemed like a scare tactic or pressure tactics which he assured me was not the case. I then asked the same questions about the Obama plan and if they would be allowed to modify a loan even though they did not have the original note and didn't have the right to modify it. He could not answer so I basically gave up and let the foreclosure case run its course.

Well here we are in October and I thought I might try again. So I call up and speak to the same gentleman in charge as last time. I ask him about the Obama plan again and he still does not know the details. he then asks me for loan number and looks up the file and proceeds to tell me there is a sale date set. Well needless to say I was quite upset, not as scared as last time, but still very upset they seem to be using the same scare tactics.

I then remind him we spoke back in April and after a little bit he remembers who I am. I explain we have a lawyer but am still open to a loan modification if they can send me in writing something saying they can modify this loan even though they don't have the original note and never did hold it when it was transferred from Fairbanks / Select Servicing Portfolio to EMC.

He says he cannot do that and that the original note doesn't matter anyway since everything is electronically recorded. He then says that the local office will not be able to help me since we do have a lawyer.

Now this part really upsets me. He explains to me his office cannot help anyone who has a lawyer or any other kind of third party group unless it is a family member.

Now to me this seems like a huge problem because what I have read it is very important to have a lawyer or someone knowledgeable about loan modifications with you to help guide you.

So, frustrated again I ask if he can provide me with some numbers about how many loan mods his office has done since opening in February. He tells me 6086 loans have been modified but was unable to tell me out of how many applied. Now 6,000 some loans out of say 7,000 might be ok but say its just 6,000 out of 10,000 or 20,000 or more. Then it's not so good.

I did then get his supervisors name and have since placed a call to that gentleman who assures me he will check into everything for me and let me know what can be done.

I guess my point to this post is it seems like business as usual. I have read Chase is in the lead with helping people but it seems they and others still have quite a ways to go.

Thanks for reading.

David Peters



A couple of things:  First, the bank's response to not wanting to talk to you if you have a lawyer is not nefarious in any way.  Whether it's a foreclosure action or a criminal case, if you are represented by an attorney they cannot speak to you.  Second, and probably most important, - a lot has been said about banks not wanting to do loan modifications.  A big reason for that is the tax consequences for the banks.  There has been a recent opinion from the IRS which will relieve those tax consequences and, hopefully, encourage more loan modifications.  Check it out - things aren't as black and white as some of the responses here portray. 
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We do have a free lawyer helping us with the case and she has filed for discovery so I think that's good.

One thing I would like to add though, and the point is that the people at the top just don't get it or don't know.

I had called the Chase executive office and requested a phone meeting at some point in the future with Mr. Jamie Dimon. I was flat out told that would never happen.

So I asked for a supervisor at the top and was connected to a Mrs Sandra Mathews (713-262-1961) who informed me that because our loan was with EMC, Chase could not help. She sais Chase aquired only select sections of Bear Stearns and did not aquire any part of EMC.

I tried to explain from my understanding that Chase did buy Bear Stearns and that Bear Stearns is the parent company of EMC. 

I then asked if the local Chase Home Ownership centers would be able to help as I have talked to them in the past and she said no I would have to deal with EMC.

I then asked her to hold and did a three way call with my local Chase Home Ownership center who then told Mrs Mathews they could modify the loan.

When I pressed Mrs. Mathews on this and told her I did not understand and if she could please explain to me why she told me that Chase could not modify the EMC loan she said I should speak to the Chase Home Ownership center and she wouldn't be able to help me.

Truthfully I am unsure what is going on but how can Mrs Mathews, who is in the executive office not know that Chase does own EMC? Or do they?

I am even more confused now and asked that her boss call me back. She refused to give me the name of who it would be that would be calling but assured me someone would call.


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Just got a call from Mrs Mathews and she wanted to apologize for giving me wrong info.

She said after checking with her boss that Chase does own EMC but they have different platforms or something where the systems cannot be integrated and that's why she thought it was a seperate company.

While I respect her for that I also urged her to do a simple google search for EMC mortgage and then she would probably find the real reason Chase wants to distance themselves from EMC.

It also still troubles me that people at the top don't know this stuff.


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h gosh
The real reason they can't help you with EMC is because the majority of the "notes"; "mortgages" and "servicing rights" held by EMC has been sold to SACO, or Bear Stearns Structured Asset Collateralized Obligations.   EMC has become, in some cases, the "master servicer", or perhaps it is GMAC, or even Wells - depends on where your note and/or mortgage wound up.  Do some research on SACO I, and you will understand why this is sooooo secret.  Be careful - they are going to start doing the banksta gangsta dance with you.
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