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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William A. Roper, Jr.
The Chicago Tribune has an interesting foreclosure related story in today's Sunday newspaper:

Chicago Tribune: "Sinking values prompting homeowners to consider strategic default as best business decision" (Sunday, May 22, 2011)
http://www.chicagotribune.com/business/ct-biz-0522-strategic-defaults--20110522,0,3910292.story?page=1 

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FnDoomed
The nice people at Fair Isaac are selling new algorithms that attempt to quantify strategic default risk.  See the announcement here:  http://www.fico.com/en/Company/News/Pages/04-21-2011.aspx

They could have easily quantified my risk of strategic default.  LOL.  Take an engineer with great income who got in temporary trouble for righteous reasons and then do all you can to irritate him until he gets positively cantankerous and says to the bank: screw you, come and get it if you can...

I've never held any illusions that I can beat them in the long run, but in the meantime I'm in a high stakes poker game, a chess match and a street fight all at once, and its just their bad luck that they picked a guy with a great affinity for all three activities in varying degrees over his life.

What Fair Issac failed to quantify is people like you.  They also failed to quantify the impact of today's internet which connects people like you with people looking for information.

They definitely failed to quantify me.

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The FICO formula isn't fresh news, since the "profile" of affluent strategic defaulters was known by mid-2009. That they publicized it was bizarre, though -- I posted a take on that at http://www.huffingtonpost.com/nicholas-carroll/ficos-new-strategic-defau_b_855295.html
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Add to the above posts - the below link - to a Business Insider slide show ranking U.S. Cities with the most "Distressed Housing" (using CoreLogic data) The #1 (worst) City - is Chicago - the home city of walk-a-way homeowner (Marty Likier) and subject of the above Chicago Tribune Article (linked by William Roper)

Homeowner made both an educated statement and interesting observation... "I felt there was no moral obligation to make a payment. The contract says it's a financial obligation, not a moral obligation. I was in a boat with a slow leak. It was manageable, but I know I was slowly sinking."
 
According to CoreLogic, and using only the existing homes available for sale - it will take 3 1/2 years to clear(sell) the distressed Chicago housing... backlog. That figure and time-frame does NOT count the bank held and unlisted REO or any of the homes to be added from the ongoing tsunami of un-adjudicated FRAUDclosures.

OhioFRAUDclosure asks....isn't it OK for someone to make an educated decision?...to get off the sinking boat before it sinks?...or should they wait until boat (home) is shot down by a "Predator Drone" foreclosure mill firm?
http://ohiofraudclosure.blogspot.com


The Business Insider - Money Game - Slide Show
http://www.businessinsider.com/distressed-home-supply-cities-2011-5#1-chicago-joliet-naperville-10

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William A. Roper, Jr.
Any time that someone starts drifting into the ethical arguments against strategic default, I immediately refer them to this important investigative reporting:

"Mortgage Bankers Association Strategic Default" (October 7, 2010):
http://www.thedailyshow.com/watch/thu-october-7-2010/mortgage-bankers-association-strategic-default

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