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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justme
Hello,
        I'm in foreclosure, and I've tried everything I could to get in contact with people at Countrywide so that I could get things straightened out before it got to this point. Anyhow, I just went to the court house and found out that even though Countrywide is my lender, Citibank is listed as the bank I have to pay off. I didn't know anything about citibank until today.....how can they foreclose on my home if Countrywide is my lender??? I remember something, somewhere that said this information MUST be the same or the foreclosure is illegal......anyone out there able to point me in the right direction on this?? I do need help right away, time's ticking fast......thanks to everyone in advance !

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Moose
Justme - this isn't legal advice, but chances are, Countrywide sold a pool of loans including yours, to Citi. 

I hate to say it, but you have to have competent, LOCAL legal advice if you're already facing foreclosure.  Depending on the state you live in, you may not have much time.


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I CANNOT lawfully give you ANY LEGAL ADVICE.  However, if you e-mail me scanned copies of the pleadings on file, including exhibits attached such as the alleged promissory note, alleged mortgage, deed of trust and/or other mortgage security instrument, as well as any assignments of record, I would be delighted to identify for you any FABRICATED documents used in support of the plaintiff's complaint.

I would encourage you to carefully read many of the posted documents and discussion threads at this site and within this Forum.

What State are you from??  If you indicate your state, we might be able to direct your particular attention to several useful message threads.  Also, others with foreclosure issues and/or experiences within your jurisdiction may be able to give you some more helpful and directed suggestions.

I AGREE with Moose's point that you really need to find a capable, effective attorney with expertise in consumer debt / mortgage law / bankruptcy to assist you.
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Justme
I would suggest that you send Mr. Roper that information.  I know he has helped me learn a lot about this whole process and truly cares and knows what he is doing.  You will learn so much from the people on this forum.  Take your time, make notes, ask questions if you don't understand.  Arm yourself with as much knowledge as you can.  One month ago we were in your shoes I felt so overwhelmed.  I feel stronger now and have less fear thanks in part to Mr. Roper and others on this board.  I will keep you in my prayers and I wish you well.
Julie

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Justme wrote:

"I'm in foreclosure, and I've tried everything I could to get in contact with

people at Countrywide so that I could get things straightened out before

it got to this point. Anyhow, I just went to the court house and found out

that even though Countrywide is my lender, Citibank is listed as the bank

I have to pay off. I didn't know anything about citibank until today.....how

can they foreclose on my home if Countrywide is my lender???"

 

 

Dear Justme:

One reason I wanted to respond was that I see signs in your post that I

have seen before from people who faced foreclosure. More specifically

there is a tendency to look for loopholes separate from the primary issue

in hopes of some sort of a clerical error miracle that changes everything.

Possible but not probable.

 

For example when I posted 3 months ago that EMC was out of business

for all practical purposes I witnessed one poor lost soul who frantically

and with futility searched for some magic loophole that would let her off the

hook on her EMC serviced loan. When she discovered there was no "get

out of jail free card" attached to the EMC (A servicer rather than a lender

btw) demise, she was quick to chastise me for leading her astray.  The

point is that both mortgage lenders as well as servicers have those basic

escape routes for the borrower well covered.  That's Mortgage 101.

 

Focus on the issue at hand.

 

Both Moose and William A. Roper both gave you sound advice.. It's layman

advice that I really hate to give because you most likely wouldn't be here if

you could afford an attorney.  But you need a competent attorney if you

have elected to fight at this very late stage rather than give up Justme.
(I hate to say that just as much as Moose and WAR hate to say it.)

 

WAR also made the same point I was about to make and it too is a long shot

but not like the ultra long shot of looking for a snafu in the fine print that gets

you off the hook.

 

If for example you have the good fortune of living in Illinois you are in much

better shape.. No need to tell you why at this point unless that is the case.

Is your foreclosed home in Illinois?  If not what state are you in?

 

With compassion and understanding,

Ed Cage, Plano TX  /  ecagetx@gmail.com  /  972-596-4363
(BTW Countrywide is also on life support as far as the mortgage business
goes, but again I emphasize that will not help you one bit.)



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Justme
Thank you everyone for your replies. I am in Florida....Right now, I'm trying to see if Countrywide would do a loan modification, but from everything I've read on this forum, that's most likely not going to happen. I also had been working with loss mitigation and the woman told me in hushed tones "not to put all my eggs into one basket" when it came to Countrywide. I'm trying everything I can, and I really appreciate your replies, it's been a hell on wheels ordeal.
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Ohio
I've spoken out about how cruddy some loan mods can be....you shouldn't use my opinion or anyone elses as a reason to not try to get one......please by all means continue to seek whatever avenue is still open!

Good Luck!
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justme
Thanks for all of the encouragement! Im meeting with 2 lawyers to see if they can help, too......wish me luck, I think I'll need it.


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There is an old adage in banking, which I will update and paraphrase:

If you owe the bank $50,000 and cannot pay, YOU have a problem.  If you owe the bank $100 million and cannot pay the BANK HAS A PROBLEM.

So it is today with bond guarantors, such as AMBAC and MBIA, who whave guaranteed over $1 TRILLION.  The MARKET has a PROBLEM.

But I DIGRESS.

There is a modern corollary to this rule in mortgage banking / mortgage servicing.  If you owe $100,000 on a house that is worth $200,000, YOU have a problem.  If you owe $100,000 on a house that is worth $80,000, the mortgage investor has a problem.

When it comes to LOAN MODIFICATIONS, the mortgage investor and mortgage servicer will usually agree to a modification ONLY when it is IN THEIR INTEREST.  In the FORMER example, where there is $100,000 of equity in the house, they are TOTALLY SECURE.  They CAN and WILL hold YOUR TOES TO THE FIRE and will INSIST on repayment.  If you do NOT PAY IN FULL, they will tack on various trash fees and foreclose, selling the house for MORE THAN the mortgage amount while collecting ALL of their various fees, including attorneys' fees.

In the latter example, the equity in the house is ALREADY NEGATIVE.  They can INVENT as many fees as they like and run up all the attorneys' fees they can, and these additional fees can NEVER be recovered directly through FORECLOSURE.

This is where their "proposals" as to loan modification come in.  You will be ASKED and ENCOURAGED to APPLY FOR a loan modification.  This process will REQUIRE that you DISCLOSE to the mortgage servicer information that will make it EASIER for them to SEIZE your other assets and DESTROY your other credit relationships.  Then, based almost SOLELY upon the net equity in the property and the mortgage investors and servicers' SELF-INTEREST, they will DECIDE whether to agree to a modification.

In MOST instances, they will AGREE ONLY WHEN IT IS IN YOUR ECONOMIC INTEREST TO WALK AWAY FROM THE PROPERTY.  For example, suppose the house is actually now worth $80,000, but property values locally are dropping at a 10% annualized rate AND marketing time for these foreclosed properties is in excess of ONE YEAR.  If the mortgage investor forecloses, the investor CANNOT SELL THE PROPERTY and will face DECLINING VALUE, costs of real estate taxes, costs of maintenance and upkeep including hazard insurance and possible vandalism to the property.  IN SUCH AN INSTANCE, IT IS MORE ECONOMIC FOR THEM TO LEAVE YOU IN THE PROPERTY FOR THE PRESENT TIME.

But BEWARE, they may ask YOU to sign some modification agreement that contains provisions that are all FAVORABLE TO THE MORTGAGE INVESTOR.  OR the mortgage investor GETS YOU TO SIGN, but does NOT SIGN ITSELF.  They then TAKE YOUR MONEY UNTIL THE MARKET STABILIZES AND RECOVERS and then FORECLOSE ANYWAY.

YOU NEED TO GET THE IDEA OUT OF YOUR HEAD THAT YOU ARE DEALING WITH EITHER HONEST OR EVEN HONORABLE PEOPLE!

In many instances, when you have NEGATIVE EQUITY IN A PROPERTY, it is in YOUR ECONOMIC INTEREST TO JUST WALK AWAY.  By this, I do NOT MEAN that you simply abandon your home.  To the contrary, you may be better off STAYING WITHOUT PAYING.  SAVE SOME MONEY and get yourself into a position to find another place to live.  Throwing good money after bad in this situation is NOT always a good idea.

If you have good equity in the property and CANNOT afford the payments, you need to SELL YOUR PROPERTY as quickly as possible, even at a distress price, as you will lose far more equity in FORECLOSURE.  Do NOT expect that a loan modification is forthcoming in the instance that you have plenty of equity.  The mortgage servicer is just dangling this carrot to get you to voluntarily DISCLOSE all of the critical details as to your employment and finances (which might have CHANGED since your original mortgage application).

See various other posts within this discussion thread as to the FOLLY of voluntarily surrendering information to the mortgage servicer regarding your finances!  
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anon2
Where in Florida?

If its Miami you have plenty of company. Also local government (miami-dade) is now trying (ha) like they can do anything to help.

At least  unlike some of us who have been in this game a while this is the word of the day.

If you owe more than the home is worth now, and I say now, the market here is just plummeting. I am sorry. However like I said earlier plenty of company. Think of it this way, your credit will suck for a couple of years but then you will be able to buy a house at a fire sale price. ha ha.

There are at least four houses in a two block radius from me that are in foreclosure.
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