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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Stephen
Thursday, week 4.  Channel 10 (NBC) news team there for another purpose, but the reporter approached me, asked me what my protest was about and when I told her, she was stunned.  Asked if I would agree to an interview, I told her I'd think about it, not out of arrogance, but because I'm not interested in getting famous.  She said she'd be back.

Numerous people came up to me and asked what the protest is about and what a "False foreclosure" is and as usual were stunned.

Twice, an attorney and a well-dressed elderly lady have approached me and the attorney tells me, "This lady would like to know what this is all about".  So I tell her.  Maybe it's the judge's mother, I don't know.  But the attorney threw out a term I haven't heard before:  "Insecurity clause".  This in response my telling them a mortgage company can foreclose on you even if your loan is current and not in default.  The lawyer said, "Yeah, that's because of the 'Insecurity' clause".

Any of you legal eagles know what he's talking about?

I'm sporting a new sign today:  "Judge Meyer Dept 61/Arrogant incompetence at taxpayer's expense"

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Stephen

I'm getting nothing but accolades from passers/by, mostly attorneys.

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Insecurity clause

It's a pretty common term in most lines of credit, commerical loans, etc. 

What it means is that if the bank feels 'insecure', i.e., they develop information that you are going to default, may have changed circumstances since they granted you the loan which under present conditions they would not have made the loan, or, maybe you get injured and no longer can work, the lender can invoke various remedies in the contract to accelerate the loan.

Suppose you run a business and a bank lends you $ 100,000.00 on a line of credit.  The LOC is based on you maintaining a certain amount of working capital, an agreed upon volume of accounts receivable, or, maintaining cash in a CD.  If you don't meet those covenants, even though you are making payments as agreed upon in the loan documents, the bank can still invoke their 'insecurity' clause, cancel you loan and demand full payment.

Believe me when I say it happens all the time.  Just look at credit card companies.  They are cancelling cards by the millions and the reason is they deem certain types of borrowers 'insecure' and cancel whole groups of clients.

I can not say unequivocally that this clause is in residential mortgage contracts but now that it is mentioned I'm going to go back and read mine.  I would be VERY surprised if a modern residential Note didn't have the insecure or 'changed circumstances' clause.


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I forgot to mention, insecurity clauses in commerical loans don't generally arise unless the borrower has done something to attract the attention of the lender.  I would offer that an insecurity clause is probably unenforceable just on its own.  There would have to be a definable event causing the clause to be invoked; such as one of the covenant restrictions I mentioned in a prior email.

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Stephen
A GREAT convenience for predatory foreclosers!!!  In my case, income was at an all-time high, credit was perfect, low debt-to-income ratio and the loan was due anyway.  I had a new 'A' loan approved by 3 other lenders, but Guaranty Bank blocked me by reporting payments missed although all payments had been made.

Did I mention I sent all my evidence to the FTC, they responded "Warrants investigation" and they issued a Cease and Desist Order to the offending bank?

You see, my evidence was never presented in court.  Wasn't allowed.
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Sara
hmm...I too wonder if that was "mama"?

That insecurity clause is a bunch of BS!!!!

Sara
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