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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Litton would not budge

Couple evicted from Middletown home despite ability to pay mortgage - PennLive.com

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So Sad
Oh...just look at all of the lovely responses to this wonder article.  People can renew your faith in mankind!  They are just so supportive of this couple.

Oh I bet the coffee will be very bitter on Monday morning for Larry Sr. and Larry Jr.    They haven't had a very pretty picture painted of them and thier "wonderful" loan servicing company. 

This is the impression I got after reading such a heartfelt article:





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So Sad

Oh so sorry my pic couldn't upload.

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Sara
oh my... 

This doesn't look good for Wells Fargo or Litton Loan!  And how can Wells Fargo have not held any part of the foreclosure?  While Litton Loan acted within bad faith for not looking out for the best interests of the company (Wells Fargo) that they represent.  After all, they (the banks) say they lose money on foreclosures.

It really sounds like Litton Loan benefited financially by putting the bank (Wells Fargo) loses money.  And Litton Loan screws over the homeowner at the same time.  So everyone loses and Litton wins!

Well, that could be one way to look at it although I don't really think the bank really loses anything.  Litton just looked bad all the way around!  Now I guess their PR dept. will have to work overtime to try to make them look like *chior boys* again in the public eye. 

S

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Knows About Litton
This couple made a rather dire mistake in trusting the foreclosure rescue scam operators.  THEY HAD THE RESOURCES AND SHOULD HAVE GOTTEN AN ATTORNEY.

They probably STILL could get their house back.  If I am not mistaken, Pennsylvania has or had one of the most generous statutory rights of redemption in the United States.  I believe that at one time the borrower could show up for up to a year LATER AFTER the foreclosure and REDEEM the property by paying the FULL OUTSTANDING BALANCE.

I am NOT sure whether this right of redemption in PA is still intact.  There are actually some good public policy reasons AGAINST redemption laws like this one, when the courts and justice are functioning effetively.

Inherently, a right of redemption acts as an implicit CALL OPTION on the home -- a right, but not an obligation to re-purchase the property at a fixed price.  The existence of such an option inherently IMPAIRS the market price that a property can command at foreclosure sale.  Would you pay the SAME price for a property that could be CALLED AWAY FROM YOU after you go to closing, pay closing costs, MOVE IN and make improvements?  Of course not!  SO you PAY LESS for such a property.

Accordingly, such generous rights of redemption ultimately may hurt the foreclosed borrower, who may both lose the house and get stuck with deficiency judgment based upon the depressed sales price.  Economists generally disfavor rights of redemption.

IF the right of redemption IS still intact in Pennsylvania, this couple needs to employ an attorney, marshall their resources and find a way to pay the outstanding balance in full.
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Knows About Litton
Whoops!  I did NOT look closely at the DATES. 

The MEREDITHs are even MORE FOOLISH than I realized.  THe foreclosure seems to have occured in February 2008.  KNOWING of the right of redemption, itton probably let them continue to LIVE in the house for more than a year, until the right of redemption EXPIRED.

IF the MEREDITHs were well represented and had equity in the property, they probably COULD HAVE redeemed the property during this interval.  The eviction -- ejectment from their home -- is the culmination of a series of mistakes that probably could have been AVOIDED by going to a real estate attorney.

I do understand that there are many who are at the mercy of unscrupulous servicers.  But this couple clearly HAD the resources to employ an attorney and probably to obtain other financing!  It makes for dramatic news copy, but the couple seems to have made mistakes at every turn!
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h gosh
For information purposes:  The right of redemption in PA is in effect until the Sheriff's gavel comes down.  Once the gavel comes down, no right of redemption exists; and all purchasers are considered BFP's.  Many times property in PA goes unsold for 3 or more years, so there may still be a right of redemption for this couple.  Since Middletown PA is in close proximity to the Three Mile Island accident site, I'm not quite sure how fast this property would sell, other than to the bank as an REO, which brings up an entirely different matter altogether.
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Tom #2

Quote:

"While foreclosures on these loans may be filed in the name of the trustee, trustees don't make the decision to foreclose on a property, nor can we dictate what decisions a servicer will make about a foreclosure,'' said a statement from Debora Blume, a spokeswoman for Wells Fargo.

The story below incorrectly reported that the bank was involved in the mortgage.

Truly a WTF moment...... The trustee doesn't make the decision, or drive the foreclosure process ?
AND THEY ADMITTED IT IN THE NEWSPAPER?
 
Tom #2
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h gosh
So why the new "protection" for servicers?  Oh Boy, its opening day for hunting homeowners!!

As we say in PA - "If its tourist season, why can't we shoot em?"

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Sara
h gosh:

Tom #2:  So now that Wells Fargo opened up this can of worms, will it be the next line of defense? 

What will the lawyers think when we start using the newest fact that it isn't the bank foreclosing, it's really the loan servicing company?  Oh this will make interesting courtroom drama!!!

I wonder if Nick Garfeild saw this article?    I think I will send him a link!

Get your popcorn poppers ready folks.  It's showtime!!!

S
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Knows About Litton
Quote:
Originally posted by h gosh
For information purposes:  The right of redemption in PA is in effect until the Sheriff's gavel comes down.  Once the gavel comes down, no right of redemption exists; and all purchasers are considered BFP's.


I need to eat a little crow here.  I haven't checked PA law on foreclosures in ages.  I recall there being a right of redemption there, but see NO recent evidence that this is the case.  Either my memory has failed me or the redemption provisions have been repealed.
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hgosh
No, your memory isn't failing.  This was accomplished in a midnight session on March 8, 2008, along with legislation that states that a note does not have to be produced to foreclose on a mortgage, and the right to seek payment of the note can also be enforced separately.  Good ole double dipping, pay to play, bonuses for civil servants, patronage jobs are a good thing, just because a casino owner attends the wedding of a mobster's daughter doesn't mean he knows him PA thinking!
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Knows About Litton
Quote:

Originally Posted By hgosh
No, your memory isn't failing.  This was accomplished in a midnight session on March 8, 2008, along with legislation that states that a note does not have to be produced to foreclose on a mortgage, and the right to seek payment of the note can also be enforced separately.


OK, now I am less embarassed and more outraged!  As I recall, PA has a Democratic Governor in Ed RENDELL, former Chairman of the National Democratic Party, and the Democrats seized control of the lower house of the State Legislature last year.  What a disgrace and an embarassment.

It is ironic that the only Judges outside of Kings County, NY, who seem to be interested in following the law and protecting borrowers are Republican appointees to the Federal bench in Ohio, New York and Texas.

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Stephen

This story is identical to mine and renews my seething hatred for banks and mortgage lenders.

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4 Justice Now
Stephen,

I know just what you mean. At least we can now be thankful that we know them for what they truly are and will never allow them to repeat their crimes against us.

R,

4J
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Sara
Stephen wrote:

This story is identical to mine and renews my seething hatred for banks and mortgage lenders.


And let's not forget those mortgage servicing companies that we all love so much for all the illegal tactics they pull. After all, what would they do if they couldn't line their pockets with more of our hard earned dollars?

S
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h gosh
And three Bronx Cheers for the FTC and HUD who KNEW that Fairbanks was robbing people blind and charging illegal fees, but felt it was better that innocent homeowners lose their homes than to force Fairbanks out of business!!
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