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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First thing on the news this morning was COUNTRYWIDE filing for federal bankruptcy. I guess thats how they will get out of any potential law suits like the one i've been asking help on for the $31,000 prepayment penalty I got charged!
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Ed Cage

Rick wrote:

"First thing on the news this morning was countrywide

filing for federal bankruptcy, i guess thats how that get

out of any potential law suits like the one i've been

asking help on for the $31,000 prepayment penalty I

got charged!"

 

 

 

Rick, Countrywide's filing of bankruptcy is not likely to

to improve your position in any material fashion. Unless

CW was illegally trying to enforce the terms of your

contract, your position is not likely to dramatically

improve.

 

Ed Cage  /  ecagetx@tx.rr.com


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.

CW has a long way to go before a BK. Remember they own and service a large number of their own loans so theres lots of assets to sell to raise cash if they need to.

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noodles
Rick,
 
Since you are concerned about the Money you lost during the refi with the prepayment penalty fees; this says to me that there is a Problem somewhere.
 
so what is the problem? Do you docs state that their is NO FEE for PREPAYMENT?
 
Do you docs give a specific amount?
Help us help you.
 
If you have the documentation, that proves they misrepresented your loan with the pre-payment penalty, when you re-fied; then you might possibly have the ability to tack on a judgement against them, and collect those funds.
 
I think that shouldn't be too hard for you to do, once they send the paperwork about the bankruptcy to you.
 
Their Bk filing doesn't mean you're out of the loop yet.
Hang on to some hope here.
 
I think others will know more, about this, and better assist you in this area.

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Ed Cage

 http://www.reuters.com/article/bankingFinancial/idUSN0850729620080109

Countrywide Denies Bankruptcy, Stock   Plunges 27 Pct

Wed Jan 9, 2008 3:01am EST

 

By Jonathan Stempel

NEW YORK (Reuters) - Countrywide Financial Corp (CFC.N: Quote, Profile, Research) on Tuesday denied market speculation that it might seek bankruptcy protection, but its shares sank 27.4 percent in their biggest drop since the 1987 stock market crash on concern the largest U.S. mortgage lender's problems would worsen.

The lender said there was "no substance to the rumor that Countrywide is planning to file for bankruptcy, and we are not aware of any basis for the rumor that any of the major rating agencies are contemplating negative action relative to the company," but its shares closed down $2.09 at $5.55, their lowest close since 1996.

Countrywide has said it has sufficient liquidity to operate, but credit rating agency Egan-Jones Ratings Co said on Tuesday the company "is severely challenged and might falter if it does not receive an infusion of at least $4 billion within the next couple of weeks."

Shares of Countrywide have fallen 86.9 percent in the last year. Tuesday's decline pulled the KBW Mortgage Finance Index .MFX down 7.1 percent and the Standard & Poor's Financials Index down 3.6 percent. Other decliners included mortgage lender IndyMac Bancorp Inc (IMB.N: Quote, Profile, Research), down 10.9 percent, and bond insurer MBIA Inc (MBI.N: Quote, Profile, Research), down 20.8 percent.

Tuesday's decline also followed a New York Times article citing court records that it said showed Countrywide, based in Calabasas, California, fabricated documents related to the bankruptcy of a Pennsylvania borrower.

"There is renewed speculation that Countrywide will declare bankruptcy or have some default action," said Al Greenberg, head options floor trader at broker-dealer BNY ConvergEx Group in Chicago.

Credit default swaps on debt of Countrywide's home loans unit soared. Investors demanded 29 percent upfront and 5 percentage points a year to protect against default for five years, up from 21.5 percent upfront plus annual premiums on Monday, CMA DataVision said. Swaps trade on an upfront basis when the market considers a company "distressed."

CONTRIBUTING FACTORS WEIGH  Continued...


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JCD
FWW:

I wonder how many homeowners out there had to refinance simply because their servicer had been or was attempting to extort money from them, or they knew they were being set up for a fabricated default and/or foreclosure?

And just how many of those poor victimized homeowners had to pay a prepayment penalty to the typical criminal servicer as the cost of just getting away, or more likely just buying a bit more time?

Unfortunately, we had to pay Ocwen a prepayment penalty of $18K in 2002 after they had "serviced" our loan for about four very long and painful months. Then just two years later Litton Loan extorted another $14K after they had "serviced" a separate loan for about six months.

Whoever it was that said crime doesn't pay, surely didn't know anything about the majority of Mortgage Servicing Companies.


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Ed Cage
Well said JCD!
Ed
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Stephen
Countrywide financial teeters on brink of bankruptcyCountrywide financial teeters on brink of bankruptcy

Countrywide Financial Corp.'s future was called into question again Wednesday after it reported another rise in loan delinquencies and foreclosures, fueling fresh speculation that the company is headed toward bankruptcy.

The nation's biggest mortgage lender is "withering" and "might falter if it does not receive an infusion of at least $4 billion within the next couple of weeks," said Egan-Jones Ratings Co., an adviser to pension funds and other big investors.Countrywide Financial Corp.'s future was called into question again Wednesday after it reported another rise in loan delinquencies and foreclosures, fueling fresh speculation that the company is headed toward bankruptcy.

Weiss Research, which rates the safety of lenders, said the Calabasas, Calif., company "is on a collision course with bankruptcy," saying it "exhausted many of its extraordinary financing options last year and is ill-prepared for the rising mortgage defaults and home foreclosures that are widely expected this year."Weiss Research, which rates the safety of lenders, said the Calabasas, Calif., company "is on a collision course with bankruptcy," saying it "exhausted many of its extraordinary financing options last year and is ill-prepared for the rising mortgage defaults and home foreclosures that are widely expected this year."Weiss Research, which rates the safety of lenders, said the Calabasas, Calif., company "is on a collision course with bankruptcy," saying it "exhausted many of its extraordinary financing options last year and is ill-prepared for the rising mortgage defaults and home foreclosures that are widely expected this year."

http://www.latimes.com/business/la-fi-countrywide10jan10,0,5706372.story?coll=la-home-center


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