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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County may ask mortgage proof
Rule would slow foreclosure rate

Hamilton County could become the first in Ohio to adopt court rules closing the courthouse door - at least temporarily - to some financial institutions seeking to take homes through foreclosure.

The proposed rule would target lenders who file foreclosure cases but can't prove they own the mortgages. Court officials say the rule would slow foreclosures by weeks or months, while the lenders get the paperwork in order to demonstrate their right to take the properties.

Hamilton County already has set a record for the number of foreclosures in 2007, with 6,088 cases filed as of Tuesday. An average of 25 new cases are being filed every day, by a growing number of financial institutions and law firms. And increasingly, the company filing for foreclosure isn't the homeowner's original lender - it's another financial institution that bought the mortgage but may not yet have documentation to prove it.

As lenders sell off bundles of mortgage loans to Wall Street investors who repackage them as commodities, the owner of the mortgage isn't always obvious.

Mortgage loans actually consist of two separate legal documents: The promissory note details the repayment terms. The other document is the mortgage itself.

It gives the lender the right to take the property.

The mortgage document usually stays with the originating bank, and it can take weeks or months for that paperwork to reach the second, or third or fourth, investor that bought it.

The proposed local rule must be agreed to by a majority of judges, who meet next month. The rule would prohibit lenders from filing a foreclosure action unless they sign a sworn statement that they also own the mortgage. That could be just a paperwork issue, but it could delay a foreclosure filing by weeks or even months.

It's unclear how many cases would be affected by the rule, or how lenders might respond. Richard M. Rothfuss, whose law firm of Lerner, Sampson & Rothfuss handles more foreclosures in Hamilton County than any other firm, said he had not seen the proposed rule and could not comment on it.

One national study suggests that 40 percent of foreclosure cases in bankruptcy lack the required paperwork to demonstrate that the lender is what's known in the law as "the real party in interest."

The proposed rule would effectively expand the scope of a decision by Judge Steven E. Martin last month that threw out a foreclosure brought by Wells Fargo Bank against a North College Hill couple. The bank, Martin ruled, didn't have standing to bring the case when it filed the lawsuit.

Martin was the first state judge to throw out a foreclosure case after three federal court judges in Ohio made similar rulings.

"Why would we let somebody file a lawsuit to take someone's house unless they're the real party in interest?" Martin told his fellow Common Pleas Court judges Wednesday.

Ohio Attorney General Marc Dann is seeking to expand Martin's precedent to courts all over Ohio. Dann has asked judges to throw out existing foreclosure cases over the "real party in interest" issue.

Critics say that action would simply delay the inevitable - and could make the problem of abandoned properties even worse. Most people move out when foreclosure cases are first filed - sometimes months before the cases go before a judge.

(THIS IS VERY IMPORTANT)

Martin is also pushing for a local rule that would require buyers to file a sheriff's deed within 14 days of acquiring the property at sheriff's sale.

That rule, he said, is in response to an Enquirer report that some lenders were taking properties through foreclosure but not filing the deed - thus evading responsibility for paying taxes and complying with building codes.

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~beenawhile
Ann,
this is great!

and yes it is an extremely important part, to these Foreclosures!

***Start
(THIS IS VERY IMPORTANT)
Martin is also pushing for a local rule that would require buyers to file a sheriff's deed within 14 days of acquiring the property at sheriff's sale.

That rule, he said, is in response to an Enquirer report that some lenders were taking properties through foreclosure but not filing the deed - thus evading responsibility for paying taxes and complying with building codes.
***Stop

This is fantastic, as this would take the responsibility of the taxes & upkeep of the vacant home off of the borrowers who are no longer living there.

The SERVICERS have done this for years, not filing that they are now the "brand new" owners of a Foreclosed home; Which continues to leave the vacant home in the ejected borrowers names. Making the borrowers have to pay for the upkeep, of the vacant home, & the property taxes.

This is should be an ILLEGAL PRACTICE EVERYWHERE!
Too many times have I read these stories where the Servicers have STOLEN the homes, and continued to lay these financial responsibilities upon the borrowers; they have stolen from.
It is also a shame when these vacant houses have been broken into & vandalized........ This creates more expenses, for the borrowers to repair.

As far as I'm concerned, MAKE THEM EAT, these expenses everywhere!

IF THEY NOW OWN THE HOME, THEY NOW OWN THE COSTS, OF ITS WELL BEING!
I hope other cities, & counties will follow in these footsteps of Hamilton County!

What a GREAT CALL!
Thanks for the post



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Digger

Quote:
County may ask mortgage proof

How about MUST ask for mortgage proof.
 
Ohio law requires the foreclosing party to attach proof of ownership to their original complaint. Civ. Rule 10 (D)  This is not done.  Now, hundreds of thousands of innocent people have lost their homes due to the blatant failures, or refusals by the courts to follow the law.

Quote:
Rule would slow foreclosure rate 

The RULE would stop all illegal foreclosures from being filed. 

Mortgage fraudsters would not attempt to steal homes from innocent people without the full cooperation and support of crooked lawyers and judges to help them pull it off.   
 
We are still on the hunt for a reporter who gets it.

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Mortgage Servicing Fraud is actually a fascinating story line.

A reporter that snags this subject to explore and exploit even if
it is a once per week story.  An even better story line if the reporter
seeks verification and proof of allegations of wrong doing by the servicers.

Our stories don't get a lot of press coverage eventhough this fraud is a great Ponzi scheme, is apparently legal and supported by our politicians.

The borrower loses every penny invested in their home, every payment made, their credit history is destroyed and cannot escape the circle of debt
created by the servicer who assesses fees that devastate the loan history
and many borrowers report that they did not deserve the fines, fees and
foreclosure fees.  These can add up to many thousands of dollars that
they are ripped off by servicers.

How is this not a great story to break?

Oh, those we seek to expose are what?  Advertisers. 

We want our politicians to take action to protect consumers from this
huge Ponzi scheme.

Oh, those we seek to have regulated are what?  Campaign contributors.

I remember the Woodward and Bernstein duo that went after a
seemingly unbelievable story.  President Nixon and his merry desperados.
They were fed leads by Deep Throat.  The interest generated by their
reports led to investigations and DOJ charges that sent some people
to prison and President Nixon resigned the Presidency.

With such a great story, they still had to get approval from their editor
before they could write an episode.

How courageous that was to tackle a sitting President.

Ann's articles from Ohio who is taking action, not just talking about it
stirs up hope again.

Dee




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A Friend
Digger wrote:


Quote:
Rule would slow foreclosure rate 

The RULE would stop all illegal foreclosures from being filed. 



You have never worked in a foreclosure mill (i.e. law firm). It would just slow it at best. The big law firms would find a way around it (legal or otherwise). Believe me, I KNOW.
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Given Judge Steven E. MARTIN's involvement in the case Wells Fargo Bank NA Certificates Series WMC vs. Gloria Byrd (Case No. A 0700643); Hamilton County [Ohio] Court of Comon Pleas, I thought it appropriate to share a link to another message thread herein.

The Byrd case dismissal was reported to us by Ann HOLDEN in her post "Judge halts foreclosures" (12/09/07 at 12:16 PM), a discussion thread based upon Greg KORTE's Cincinnati Enquirer article describing that case's dismissal  [ http://www.websitetoolbox.com/tool/post/ssgoldstar/vpost?id=234897 ].

Those following the possible rulemaking in the Hamilton Ohio Court of Common Pleas will also want to posible follow the appeal ofthe Byrd case.
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