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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Joe B

     I think it was poster "Stephen" who a short time back, posted about falling tax receipts in cities with high foreclosure rates. I ran across this article concerning one city's (Buffalo) reaction to rising foreclosures, and the banks' failure to properly maintain the properties. I like this appraoch, and would not be surprised to see it spread quite quickly to other jurisdictions.

     It is NOT MSFraud, but it is something worth reading for those interested, and you WILL see some very familiar names!


Dirty deeds: Cities fight banks over vacant homes
As housing crisis deepens, cities fight lenders over abandoned homes
By Michael Orey
Business Week
updated 9:21 a.m. ET, Mon., Jan. 7, 2008

On Dec. 17 in a windowless Buffalo courtroom, Cindy T. Cooper, a prosecutor for the city, buzzes among a dozen men in suits, cutting deals. "You've got to unboard [the house], go in, and clean it out," she tells one. "If all the repairs are done quickly, I wouldn't ask for any fines." To another, she says, "the gutters weren't done right," and asks to see receipts for the work. It's "Bank Day" in Judge Henry J. Nowak's housing courtroom, more typically a venue where landlords and tenants duke it out over evictions and back rent. Instead, Cooper is asking lawyers for CitiFinancial, JPMorgan Chase, and Countrywide Financial to fix problems like peeling paint, broken masonry, and overgrown or trash-filled yards at houses the city says the banks are responsible for maintaining. It may be surprising to find these financial-services giants hauled before this obscure local tribunal.

In fact, Cooper and Nowak are at the forefront of a pioneering effort to deal with a vexing problem: The surging number of vacant and abandoned homes resulting from the mortgage market meltdown. The vacancies occur when lenders bring foreclosure suits against delinquent borrowers. Mere notice that such an action might be filed often sends residents packing. In Buffalo and other Rust Belt cities, the problem has been particularly acute, because in many cases banks are abandoning the houses, too, after determining that their value is so low that it's not worth laying claim to them. When city officials try to hold someone responsible for dilapidated properties, they often find the homeowner and bank pointing fingers at each other. Indeed, the houses fall into a kind of legal limbo that Cleveland housing attorney Kermit J. Lind calls "toxic title". While formal ownership remains with a borrower who has fled, the bank retains its lien on the property. That opens up a dispute over who is responsible for taxes and maintenance. Even when lenders do complete the foreclosure, they may walk away from the property, leaving it to be taken by a city for unpaid taxes, a process that can take years. Orphaned properties quickly fall into disrepair, the deterioration sometimes hastened by vandals who trash the interiors, lighting fires and ripping out wiring and pipes to sell for scrap. Squatters or drug dealers may move in.

The impact goes far beyond the defaulting homeowner, as neighbors and entire communities confront a spreading blight. Vacant residences deprive cities of tax revenue and can cost them thousands to maintain. A 2001 Temple University study in Philadelphia found that simply being within 150 feet of an abandoned property knocked $7,600 off a home's value.

In Buffalo, prosecutor Cooper is bringing lenders before Judge Nowak to hold them accountable. Wielding the threat of liens, which can hold up the lenders' other real estate transactions, she aims to make banks keep foreclosed homes in good condition until a buyer can be found. As an alternative, Cooper or Nowak may try to get lenders to donate properties to community groups or to pay for demolition when houses are beyond repair. "At least in Buffalo," says Cooper, "the days are gone when you can do a foreclosure and walk away without taking care of the property."

Those charged with violations by Cooper include participants all along the complex mortgage-industry food chain, from loan originators to servicers to the Wall Street trusts that buy up the vast majority of home loans and then securitize them. A similar initiative is under way in Cleveland, where Judge Raymond L. Pianka puts lenders on trial in absentia when they fail to respond to charges.

Even places with high property values, like Chula Vista, Calif., a San Diego suburb, are taking steps to avoid the neglect that can occur during lengthy foreclosures. "It seems like a number of the lenders aren't even doing things that are in their own best interest to preserve the asset," says Pianka — a problem he attributes to the fragmented nature of the business. "It's not an address. It's not a property. It's just a loan number," he says. "So they'll push a button in San Francisco, and it will set things in motion to do things with [a] property that don't even make sense."

The proceedings in Pianka's and Nowak's courtrooms offer a sobering reminder that underlying the attenuated ownership and esoteric products spun out of mortgages are actual buildings, some with leaky roofs or broken porch railings. The industry denies responsibility for properties to which it has not taken title. "The notion that a mortgage company has an obligation to make repairs on a property that it doesn't even own is very hard to comprehend," says Marco Cercone, a Buffalo attorney who represents a range of lenders before Nowak in the courtroom. Cooper says that banks and other financial firms once extolled houses as the best possible collateral for a loan. Now they're stuck with that collateral, and they don't like it.

If there ever is a national response to the messy legacy left by foreclosures, it might include something like the Buffalo system, which seeks to take action before the presence of abandoned houses hurts entire neighborhoods and which spreads the pain among many players. "We're kind of a crystal ball into what might happen" elsewhere, Cooper says.

Lenders may rue the day the State University of New York at Buffalo admitted Cooper to pursue a PhD in sociology and a law degree. The subject of her doctoral thesis, submitted in December, 2006: the role of banks in residential abandonment and why they should be accountable for property-code violations. The fourth-generation Californian says she quickly became attached to Buffalo for its history and architecture. Now 33, Cooper and her husband are rehabilitating a house that she bought after getting an IRS tax lien removed from the property. "My passion for this work is because I love this town," she says.

While researching her thesis, Cooper interned for Judge Nowak. Tall, soft-spoken, and unfailingly courteous, the judge, 39, began holding Bank Day earlier this year and schedules it once a month. The civility of the proceedings and the large number of bank lawyers in attendance belie a noteworthy fact: They are there under coercion. A few years ago, Nowak says, "the city became increasingly frustrated with the banks' role" in contributing to Buffalo's abandoned-property problem. (Estimates put the number of abandoned homes in the city at between 5,000 and 10,000.) In 2004, New York State amended the definition of "owner" in its property maintenance code to include not just titleholders but others who had "control" over a premises.

While the statute makes no reference to lenders, Nowak contends that the letters banks send to defaulting homeowners threatening to boot them from their houses show that they have begun to "assert some measure of control." On this premise, Nowak says, Buffalo began contacting banks "en masse" about foreclosed properties, but "a lot of times we'd just be rebuffed and ignored."

Cooper, as an intern, suggested a tactic that the judge adopted. When banks ignored summonses for code violations, Nowak began entering default judgments against them and imposing the maximum fine, which can reach $10,000 to $15,000. For a big bank, that's not much. The real pain comes because the fines give the city a lien that impedes the banks' ability to buy or sell other properties in the area. In addition, when lenders come to his court to get residents evicted from a particular property, Nowak refuses to grant the request until the bank addresses violations outstanding on other properties. Judge Pianka employs similar tactics in Cleveland. On Dec. 10, for example, he assessed a $50,000 fine against an absentee defendant, Mortgage Lenders Network USA, for 21 code violations at a home.

Even far from the Rust Belt, in places where empty houses retain significant value, the lending industry seems to have trouble preserving its collateral when homes are abandoned during foreclosure. In Chula Vista, a number of houses have been trashed by college students who have held parties in the vacant properties. In other cases, pillagers pull up in rental trucks to cart away cabinets, wood flooring, and fixtures stripped from the homes. But in October, an ordinance went into effect requiring lenders to register and maintain houses that have been abandoned during foreclosure.

Compliance, says Chula Vista code enforcement manager Doug Leeper, has been spotty. "What I need them to do is keep the water on and keep the lawn green," he says, noting that the first sign of abandonment is often a yard that has turned brown and a pool that has gone murky green.

That slide into decrepitude is exactly what Cooper is trying to head off in Buffalo. In February, she joined the city's law department, where one of her duties is prosecuting banks. She and Nowak each say their main objective is not collecting fines but bringing banks to the table to try to find constructive solutions for dealing with abandoned property. That doesn't mean borrowers are off the hook. Cooper typically charges both borrowers and lenders, and Nowak may fine homeowners or sentence them to community service. "Can both be responsible?" asks Cooper. "Absolutely."

The approach in Buffalo is paying dividends. In a case on Dec. 17, attorney Cercone addressed the status of a house that had gone into foreclosure in 2006. Cercone was representing JPMorgan Chase and Ocwen Loan Servicing (which in turn were representatives of a securitized trust that had purchased the mortgage). Cercone submitted an affidavit showing that Ocwen, which had been cited for violations in December, 2006, had spent $30,000 to repair the property, including scraping lead paint from the entire house. In September, the affidavit notes, JP Morgan Chase sold the property at a loss of $19,500, not including the cost of repairs. "The bank in this case dealt with the property as well as could be done under the circumstances," Nowak said from the bench, and he agreed not to impose any fines.

Still, even with novel and aggressive tactics, the path to resolution for many properties in Buffalo can be tortuous and protracted. A house at 1941 Niagara St. — one of dozens of properties that Cooper examined as a graduate studenthas yet to see its final chapter, though it may be close.

In 1998, Elizabeth M. Manuel obtained a $34,500 mortgage on the property from IMC Mortgage (since acquired by Citibank). By 2002, the loan had been sold into a securitization trust administered by Chase Manhattan (now JPMorgan Chase) as trustee. It also went into default, and Chase began foreclosure proceedings. In a court filing, Manuel (who could not be located for comment) said she left the home while the foreclosure action was pending. More than five years later, though, the title remains in her name. The house, although still standing, has become a fire-gutted wreck.

In May 2007, Nowak issued a default judgment against Chase for $9,000. But these cases can be notoriously difficult to untangle. Thomas A. Kelly, a spokesman for the bank, notes that Chase sold its trustee business to the Bank of New York Mellon in October, 2006, and couldn't locate anyone at Chase able to comment. But he reiterates the industry view that Chase can't be held responsible for maintaining a property it never owned. He acknowledges that if a home didn't seem worth taking as collateral, the bank may have made a decision to "just walk away."

The value of 1941 Niagara, estimate city assessors, is $4,500, of which $4,300 represents the value of the land. The home, Cooper says, is slated for "imminent" demolition.


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Thanks so much for posting this.

I live in Niagara Falls and am all over this one.

I just sent the link to Al Vaughters, channel 4 news.

I also sent him the OHIO FEDERAL Judges dismissal information.

When you come to think about it, these dirt bags scam everybody
they come in contact with.

Our area is depressed, limited job opportunities makes the college
grads leave our area.

Abandoned houses were at 1100 last year and we do not have the money
to do demolition.  There is a wait list.

Buffalo also refused to take MERS on face value because the noteholder
is hidden. 

For the second year, Buffalo is operating with a "control board" handling
the money being expended and the budgeting. 

If they collected the taxes they are due, perhaps the situation would not
be so dismal.  Our taxes are very high already and when they don't collect
the money they are entitled to receive, it increases each individual's tax

I've been trying to inform my tax collector for Niagara County everytime
I paid my taxes for years now that they are missing out on taxes that should be paid by the noteholder.  I discuss this issue with every single politician.
They all walk the precinct here.

I'm going to think about what more I can do.  Maybe it is time for another
media blitz.  We haven't done one in a long time.  Now, we actually have something new to report.


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i am with you on this Dee, & Joe B. it was a great article thank you for posting. Miss seeing you two around the board.

you two have so much valuable information to share.

I've taken the initiative on our end to inform the local
county(s), of the frauds that are created against the home owner, thereby affecting the home owners ability to pay the PROPERTY TAXES for each fiscal year in a timely manner.

Then the discussion with this audience as to how the over all big picture looks for the county when a "Manufactured" "created"  "fictitious" FORECLOSURE occurs; and the effects of the homes sitting and uncared for due to the negligence of the SERVICERS filing the NOTE HOLDER DOCUMENTS AT THE COUNTY COURT HOUSE.

If our County Tax officials can make it heard by the necessary entities, (Sheriffs office, County Records Division, THE D. A.'s Office, and the Local Judges) this helps each of us in several ways. It would help
Inform the Judges, of the frauds involved, they'd be more inclined to "look" at those Foreclosure actions brought to them in the JUDICIAL states.

And the NON JUDICIAL areas, the Judges we have more information and be more inclined to understand all the frauds related to a borrowers loan, whence the borrower has their day in court in actions "AGAINST" their Mortgage Servicer(s).

JOE, DEE, Others,

If WE ALL can awaken the People who really care about these vacant lots (WHICH WOULD BE THE TAX ASSESSORS OFFICE) as to "HOW" and "WHY" there are so many Vacant, & vandalized homes in THEIR community, THE "WE"  CAN & WILL, get the story of these Frauds, to the appropriate County officials working in the other County Sectors.

Once we get the word out in our communities, it will be much harder for those Judges, WHO ALLOW the continuous Foreclosures, to keep doing so.

They will HAVE to look at all the "PROOF" the home owner has, if they are aware EVERYONE around them is familiar with and knows of the MORTGAGE SERVICING FRAUD.

Our Ultimate Goal in this is to "fix" the broken America, and this is the way to get the Local Government involved.

When the Local Government STARTS Listening, the FEDERAL GOVERNMENT WILL THEN PICK IT UP.

Please see this thread titled

It's time to play hard ball and I've brought my bat!

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Not just yet!

     Actually there is a way, and a fairly inexpensive way to turn the tables. Since these property taxes are not being paid, there is a tax lien on the property.

     So, how about trolling for tax liens, and release the lien (by paying it), and file a subsequent lien against the servicer, the trustee, and the trust along with the requisite interest. It should be fairly easy to determine the highest bidder at the f/c sale! Then, do the legwork on who to invoice, along with interest!

     Remember, even if they don't pay, when the servicer does eventually sell this property, they must satisfy the lien with interest before it can be properly transferred!

     Some folks here could put the specifics about what interest is allowable under their local jurisdictions, and if the above situation does/does not work in their jurisdiction. However, in some cases, property can actually be acquired this way. Imagine the troubling reports to management that many, many very valuable properties were acquired (taken back) this way.

     I think it could be an exciting start to the servicers fixing their own mess. I don't think it would take too many desirable properties to get their attention!

     There are some specific hoops to jump through that I am sure we could assemble the right details to make this come together, and then we can all troll our local courthouses for the right properties. Heck, we might even start our own investment club to help offset our litigation costs...

     Any lawyers want to step in to develop a proper blueprint?

Name withheld for the moment, but I am a regular Joe
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Good We have a start!

Not just yet! wrote:
     Actually there is a way, and a fairly inexpensive way to turn the tables. Since these property taxes are not being paid, there is a tax lien on the property.

What I also propose is a way to take RESOLVE some of the liens that have been placed against the borrower(s).

I realize this method would NOT work with the borrowers who are SOLELY responsible for the Payment of their Property taxes.

However this would work for the Borrower who is involved with an "ESCROW ACCOUNT" which is stated in their Loan Documents that ALL PROPERTY TAXES WILL BE PAID BY THE MORTGAGE SERVICING COMPANY.

For those borrowers, we CAN help them, if we are able to get positive action FROM the TAX ASSESSORS Office. What we need to do is propose ACTION to our TAX ASSESSORS that our local Government, make ALL Liens in this capacity, a LIEN JUDGMENT AGAINST the MORTGAGE SERVICER, (FOR FAILURE TO PAY) instead of assessing a lien against the borrowers.

What can we do to make "this" a "REALITY"?

Not just yet! wrote:
   There are some specific hoops to jump through that I am sure we could assemble the right details to make this come together, and then we can all troll our local courthouses for the right properties. 
     Any lawyers want to step in to develop a proper blueprint?
Name withheld for the moment, but I am a regular Joe

Now this is a good idea you have proposed, however it seems to go a little beyond the methods running through my head.
We agree that we ULTIMATELY want the Servicers to pay for the damages they have accosted to home owners and our communities.

With that being said let me share some ideas here, we all have a community in our area that is considered downtown, or "below" the average community. In our downtown area, there are homes that have sat for 20 years or more without, ANY upkeep, whatsoever. They have been effected by blight, drugs, & crime. These homes need much, much, work, on them to be worth "selling" condition. These homes have sat idle for such a long time the Servicers no longer have them listed as Properties for sale with BIG BOLD SIGNS advertising a Number to call.

What are your proposals to begin the neighborhood clean up, and what are some of those steps you referred to here:
"There are some specific hoops to jump through that I am sure we could assemble the right details to make this come together"

I wanted this to be an easy way to start and wanted to start small; to help the Property Tax Divisions realize the lost revenue they suffer is due from the FRAUDS, the MORTGAGE SERVICERS have committed against their local tax citizens, and against their TAX office and their Community.

However starting small is not always the accurate way; When a GRAND SLAM is what is NEEDED!

The Goals are:
To form a team of the forum readers and posters here. So each of us may BECOME an active part in the rebuilding of "WHAT IS RIGHT" and the re-building of our "TRUE" PROPERTY VALUES, along with the re-building of our "COMMUNITY"

Getting players up at bat, it will take many of us to form opinions, & ideas for "PROPOSALS" to our local Tax Assessors Offices.

At the moment it seems that a Letter to hold the SERVICERS accountable for the negligence of payment on Property Taxes, in which a borrower has been "charged" by SERVICER for the ESCROW fees for these taxes. Needs to be prepared for the TAX ASSESSORS, and then submitted.

This would be the first swing.

So while you mull over these ideas please consider "ways" with both, and lets take the first swing.

Great thoughts, let's hear more!

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Joe B

     While I think many of us here share some sense of outrage that servicers are ripping off someone else, the bottom line here is that most of us are trying to save our homes.  I am just not sure how much of a problem this is outside a handful of communities. I am, just not sure you are in front of the right audience for rallying to this particular cause. Now if you want to rally us to help find a way to save our houses, well you might have something there.

     As another aside, I don't want the servicer paying my taxes. I prefer to handle it on my own, and will fight every effort made to counter that. I can't trust them with my payments now, I can't afford to have them screw this up too!

     Others may disagree with me, but that is my $.02.


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it's understood what you are saying here but, it needs to be explained that you have misunderstood the concepts for which I have spoken.

However, I am glad you shared your thoughts with me, as this allows some what of a small description of how WE ALL are EFFECTED by the SERVICERS in our LOCAL COMMUNITY.

This is an area I have never Delved into before, so I might have a couple of thoughts incorrect here, but it explains the LOGIC, and the NEED for each of us to get our LOCAL TAX ASSESSOR INVOLVED with this AS SOON AS POSSIBLE.
I apologize if I have confused you in any way. I will try to answer your thoughts on this as best as possible. If you still have questions from there please let me know.
Joe B wrote:
     While I think many of us here share some sense of outrage that servicers are ripping off someone else, the bottom line here is that most of us are trying to save our homes.
Joe, I'm aware we All here are trying to save our homes. So far to date We've all tried "EVERYTHING" that has been suggested! Has anyone, TO THIS DATE, MANAGED TO GET ANY LAWS RULES OR REGULATIONS CHANGED TO MAKE LIVES BETTER FOR ANY OF US AT ALL?
That answer is NO!

So let's try taking this "LOCAL".

I have thought about the LOCAL Governmental Entities, and the only Local Government that would have a VESTED interest, in the MORTGAGE SERVICING FRAUD would be the TAX ASSESSORS OFFICE.
But Not the Office, THE ACTUAL "TAX ASSESSOR" is an appointed position by electoral votes.
They have a job to do, to SERVE the PEOPLE, COMMUNITY, LOCAL GOVERNMENT, and it's RESOURCES.

If a Tax Assessor is "NOT ABLE" to provide as much "REVENUE" for the year on their "FORECASTED, SURPLUS" documents, this is NOT GOOD FOR THEM. THE Community, the People or the Government.

So we can all comprehend what the tax assessors office does, lets first know that:
When you pay PROPERTY TAXES you are paying for
A. Schools
B. Libraries
C. Hospitals
D. Waste Management Services
F. Police
G. Community Services
H. (I'm sure there are other services ) I haven't thought of.

So how does a SERVICER, who doesn't pay TAXES on a PROPERTY they OWN EFFECT US HOME OWNERS?

Now to explain "HOW" and "WHY" it effects all of us HOME OWNERS:
A. The "CURRENT  Fiscal Years,  PROPERTY TAX REVENUE (lets say 2008) is based upon the amount of HOMES, listed in that county.
B. If there are 15,000. homes in a County, at the end of the 2007 Fiscal Year, those 15,000 homes are listed as "PROPERTY TAX REVENUE".
C. The BUDGET for the year of 2008 is based upon the 2007 "Digest" & amount of homes that are to be TAXED.
D. So now a BUDGET has been formed for the 2008 "PROPERTY TAX REVENUE"
E. The County is "EXPECTING" to COLLECT TAXES on 15,000 homes.

How will the LOCAL Government handle this shortfall?
They will Cut programs in schools, the children suffer.
The staffing at the local hospital will Decline, this results in a severe decline of medical care you may need.
Cut backs on Police Force, the citizens suffer, crime increases.
Community Service cut backs where the public or the needy might suffer.
Again, I'm sure this list could go on.

So who then is going to have to "EAT" these "expenses" that were included in the Budget, but NOT COLLECTED ON?
H. This all trickles down to you, your home and the "PROPERTY TAXES YOU PAY".

Since the year of 2008 had a LARGE shortfall of "EXPECTED" REVENUE for the TAX ASSESSORS OFFICE.
 I. You Can Now expect your 2009 PROPERTY TAXES to be RAISED SIGNIFICANTLY, due to the continuous circle & the failures to Meet or exceed the Forecasted Budget.

Now lets add something to this:
If your home was Foreclosed on in 2006 would you pay the Property taxes on that house? No!
Would you pay the Property taxes on the home in 2007? NO.
how about 2008? NO!

So if your old house is just sitting there, and the SERVICER who now owns the house, REFUSES to File the Appropriate Documents, to transfer the Ownership to their name, what Happens?
The Old Home Owner Receives the Property Tax BILL, that they WILL NOT PAY! (And rightfully so, why the H. should they have to pay for a home that Was FORECLOSED on or that they no longer have any claims to?)

This home sits in the community Listed as a "REVENUE" or "SURPLUS" on the TAX PROPERTY BUDGET,
The LOCAL GOVERNMENT then thinks it has $1899.00 worth of REVENUE or SURPLUS off of this one home, therefore they spend this money, or Plan to spend this money. But OUCHES, They have never received a dime on the TAXES for this HOME for the YEAR. THAT'S PROBLEMATIC!

There is a whole lot more here, involved with this sitting home, and how this rotting home effects the Community and property values, but that's too much for the small approach (at this time)

Is to get the Local Government Involved, so they can Nag, Complain, and Insist that the STATE GOVERNMENT do something about the SERVICERS IN WHOLE!
Not, just on the TAX ISSUES.

I'll make a small out line for the other comments you have shared, in hopes that I can get you, and others to come to this team.

As always, your input is valuable.
Thank You!

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A few more responses to your post Joe.
In an attempt to understand what you are saying here, let me state that this is not meant as argumentative whatsoever.
Joe B wrote:
      I am just not sure how much of a problem this is outside a handful of communities.


When you combine the knowledge, and the facts of A Mortgage Servicer such as EMC Mortgage Corporation who was last reported on as SERVICING 500,000. homes

Combined with Ameriquest who had How many Homes? and now DBA Select Portfolio Servicing.
Combined with Ocwen who has how many homes?
and Now combining all of the other Millions of Home Loans being Serviced for a GRAND TOTAL of HOW MANY HOMES BEING SERVICED ALL ACROSS AMERICA?

"a handful of communities" as you said.

Joe B wrote:

I am, just not sure you are in front of the right audience for rallying to this particular cause. Now if you want to rally us to help find a way to save our houses, well you might have something there.

If there is a "right" audience to be found. It is noted that "it" has not been found as yet by anyone, no matter their attempts. We have all complained to the State Banking Departments, Hud, Tila, FTC, Department of Commerce in Washington, The Governors Office, the BBB, State Representatives, & Legislatures. Can you provide any details with sustenance where any of these complaints have had a "MAJOR" change in how these SERVICERS are "REGULATED" and in which these laws are "ENFORCED" on a regular basis?

To this date, We've had NO SUCCESS, ANY WHERE with either the STATE or FEDERAL GOVERNMENT STEPPING UP and STEPPING in to help the Home Owners; by Providing CHANGES, and LAWS that are continually Enforced against the Servicers for their illicit collections, created defaults, and Manufactured fraudulent, Foreclosures.

Our "STATE" & FEDERAL Government hasn't listened, thus far.
So I ask, Who else, has a Vested interest in a LOCAL Community?
Can you name a Governmental Entity who might have an interest in the Frauds associated with Mortgage Servicing?

The only LOCAL Governmental Office that has ANY concern about this Fraud, is "each"  "TAX ASSESSOR" in every county Across America!

If it is explained to the Tax Assessor in detail how the fraud & negligence of the Servicers has "DIRECTLY" effected, their Revenues, & their budgets, and their VERY OWN COMMUNITIES; THEN WE'VE JUST JUST BROUGHT THE "RIGHT" PERSON TO OUR PLIGHT.

The Tax Assessor, Who would is and Would be appalled at such Tactics, of fraud & negligence by the Servicer, Who has NOW REALIZED why their FISCAL YEARLY BUDGET is SUFFERING, will continue to "develop" their own plan of Attack, which would then involve other "SECTORS" of the Local Government.

Now we have another "Sector" of local Government, involved, and Lots, & Lots, of water cooler discussions going on about the Frauds, all of these people NEVER KNEW EXISTED.

What have we done?

We have now informed TWO Sections on Local Government, who will continue to form other Local Governmental "Sectors"
Now, We have Spread the Word, and These Governmental Entities are beginning to do the Research, the charts the graphs, and so forth.

It's now become a "NEWS" topic in the Local News Paper.
We now Have More Home Owners Complaining, to the Local Governmental officials.

How could any of this be wrong?
I may just be dreaming, but I whole heartedly think this is the step we need to take in exposing these frauds to our local Government, so SOMETHING can be done about the "WILD & FREE" Rampage these Servicers have in committing these unconscionable frauds.

Each of us on this forum, has nothing to lose by working on a package to hand deliver to the Tax Assessor.
After all, Our "PROPERTY TAXES" and the amount we will have to pay is affected by the SERVICERS Fraud on your neighbor, and their negligence to pay for the Property taxes of that foreclosed home.

What about all the cases brought before the Local Judge, where the home owner says Your Honor, there is much fraud here, please see my documents.

If the Judge were "aware" that these frauds, were a Hot Topic down at the Tax Assessors office, and the Sheriffs office, The D. A.'s office, IT WOULD BE MUCH HARDER FOR THAT JUDGE to ignore the Home owners Documents, and proof. The Judge Would "know" he/she could not GET AWAY with Judgment against the homeowner.

That's a Hot Topic we have discussed before, about the Judges who have been bought out by these Mortgage Servicing Companies, with "Vacation Retreat Packages" Golf Trips, Cars, and such.

How could a Judge who is aware of his Surrounding County Officials knowing of the SERVICING FRAUDS Committed against home owners; Continue to "allow" fraudulent & manufactured Foreclosures to Happen?
How could a Judge approve one of these Foreclosures?

Not with "OTHER EYES" watching! (this scenario is for the JUDICIAL States, where the Home Owners have the Opportunity to provide Evidence of fraudulent foreclosure)

Pardon the term here, but the Home Owner in the Non Judicial State is "screwed" because they Never have this opportunity.

So let's now discuss how this would be beneficial for those NON-JUDICIAL STATES:

The home owner has all the "proof" of fraud & all of their documents, they bring a suit AGAINST the Mortgage Servicer.
(we all know of cases where those home owners have lost the battle because the Judges were Crooked, and had been "illegally" bought out by the SERVICERS!)

The home owner has their day in court, against the Servicer, The Judge CANNOT be as arrogant, as he/she once was, towards the home owner. The Judge cannot "disallow" documents, or "claims" as evidence as they once did, the Judge cannot misbehave, or misconduct HIMSELF/HERSELF, as they once did, if they KNOW, "OTHER EYES" are watching.

By starting small, with the Local Tax Assessor, & their office, we can make this spread to the Appropriate Areas of law, where it needs to get by only having a small part in this.

All we need to do is develop a few things that the Tax Assessor can use, and then we are done!
The rest will follow, when the Tax Assessor, has come to the realization of the thousands, & thousands of dollars they lose yearly due to the frauds of the Mortgage Servicers.

A one time "small amount" of work from a few of us, is all we need, to make the LOCAL Government hear our screams.

When Several Counties in a State Begin to Complain to their STATE Officials, & Representatives, more ACTIONS will follow!

They too can no longer hide behind the "Vacation Retreat Packages" and the Golf Trips, They TOO WILL BE HELD ACCOUNTABLE by the "OTHER EYES" who are watching.

Now that's the BIG PICTURE IN WHOLE!

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O - ;)

Foreclosure storm hits major cities

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Ed Cage

Noodles wrote:

"B. If there are 15,000. homes in a County, at the end of the 2007 Fiscal Year, those 15,000 homes are listed as "PROPERTY TAX REVENUE".
C. The BUDGET for the year of 2008 is based upon the 2007 "Digest" & amount of homes that are to be TAXED.
D. So now a BUDGET has been formed for the 2008 "PROPERTY TAX REVENUE"
E. The County is "EXPECTING" to COLLECT TAXES on 15,000 homes.
How will the LOCAL Government handle this shortfall?
They will Cut programs in schools, the children suffer.
The staffing at the local hospital will Decline, this results in a severe decline of medical care you may need.
Cut backs on Police Force, the citizens suffer, crime increases.
Community Service cut backs where the public or the needy might suffer.
Again, I'm sure this list could go on."




Noodles it is rare indeed when I find myself taking up for municipalities,

county government or bureaucrats in general.. However let me assure you

the situation you just outlined is nowhere near as bleak as you seem to think.


The city and county fathers as well as taxing entities right on up to the IRS

have foreseen all of those things in advance. Their predetermined sky-high

interest rates and stiff consequences (compounded along with inflated legal

and administrative fees) make up a series of breathtaking severe penalties

for anyone who waits more than a year to pay delinquent taxes. This is true

at virtually any level.


Practically every year our cities, school districts, counties, state and Federal

taxing entities receive windfall revenue from those who tried to get out of or

delayed their tax payments from prior years.


I share your concerns and frustrations. But on the brighter side what you and

I are doing right now (Freedom of Speech protesting) is being amplified and

multiplied all over the country.  We are finally getting through to lawmakers

and politicians.. As recent as 2005 I thought those who whined and moaned

over getting “tricked” or “cheated” on their mortgage payments were primarily

dead beats who got in over their head..


Boy was I wrong.. And now the public, politicians, lawmakers and the printed

and electronic media are also helping us seek the inevitable justice we shall

attain in 2008.


Ed Cage  /


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Mike Dillon
Old post 11/01/06 at 12:49 PM Reply #6

The "government" isn't going to do anything to help any mortgage servicing fraud victim. I've spoken to state Senators, banking departments, AGs,  FTC, OTS, OCC, Secret Service, FBI (both have financial crimes divisions), HUD etc. I'm trying to figure out if there are any agencies left that I can talk to just to cover the rest of the alphabet at this point.

You're right our Fed. Gov. isnt doing anything.

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4 justice now
Old post 11/01/06 at 07:07 PM Reply #7

Mike is absolutely right! No one is going to help MS victims, especially not any of the Federal agencies that receive our tax dollars to do just that. A few years ago I spoke directly with one of the OTS representatives (RD) who were once responsible for over-seeing Ocwen Federal Bank. He said the following: "Although, it's very clear that Ocwen is defrauding homeowners on a regular basis, we are not going to do anything...  not under the current administration anyway." (Not an exact word for word quote, but pretty much the same as what he stated or at least meant).

"Local" Government CAN do something... only problem is, NONE of us are COMPLAINING to the LOCAL GOVERNMENT.

BUY ALL of us keeping our Mouths shut, and heading directly to the "STATE" & "FEDERAL" NONE OF US HAVE RECEIVED ANY KIND OF HELP WHATSOEVER!

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The post from 4 justice now came from the same page, use the link above to read the post.

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Cleveland Sue Mortgage Lenders

Friday, January 11, 2008

Likening their actions to those of organized crime syndicates, Cleveland's Mayor is suing 21 major banks and mortgage companies for the roles they played in the sub-prime mortgage crisis that devastated many neighborhoods in the city.

The suit, filed in Cuyahoga County Common Pleas Court, alleges that in pushing sub-prime mortgages in Cleveland, the companies created a public nuisance in violation of state law.

City officials hope to recover hundreds of millions of dollars in damages for lost property tax revenue, the cost of demolishing homes left abandoned and the cost of policing neighborhoods devastated by thousands of foreclosures.

Cleveland Mayor Frank Jackson said, "If you look at the end result of organized crime activity on neighborhoods, cities and individual lives, sucking equity out, you see the same thing here."

There were over 7,000 foreclosures in Cleveland in 2007 alone. Crime has skyrocketed in areas where boarded up houses are a common site. Many of those homes have been stripped of their aluminum siding and plumbing.

Some blocks bear an eerie resemblance to New Orleans' Lower 9th Ward in the months following Hurricane Katrina.The banks and mortgage companies being sued reads like a 'Who's Who' list on Wall Street. "They are the ones that fueled this operation and that's what placed us in this predicament," said Cleveland's Director of Law Robert Triozzi.

"They are going to be held accountable. Mayor Jackson said the lenders signed off on deals that they knew should have never been made."Triozzi said, "The model they used was completely inappropriate for a city like Cleveland but they didn't care."

The companies being sued are Deutsche Bank Trust, Ameriquest Mortgage, Bank of America, Bear Stearns, Citigroup, Countrywide Financial, Credit Suisse (USA), Fremont General, GMAC-RFC, Goldman Sachs, Greenwich Capital Markets, HSBC Holdings, Indymac Bancorp, J.P. Morgan Chase, Lehman Brothers, Merrill Lynch, Morgan Stanley, Novastar Financial, Option One Mortgage, Washington Mutual and Wells Fargo.

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Cleveland Sues 21 Lenders Over Subprime Mortgages - New York Times


“This case is about what these Wall Street bankers did to Cleveland”

Instead of aiming at the banks that originally made subprime mortgage loans in the city, the lawsuit is against those firms that bundled the loans into securities to be divided into shares and sold on the stock exchange. This process, and the large fees the firms generated from the work, Mr. Triozzi said, drove their effort to make as many loans as possible during an era of low interest rates and a prolonged housing boom.

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That's the driving force behind ms fraud much, perhaps all of it is to transfer liability from fraudulent origination and to create multiple title claims, and create more mortgages. Even if it's dumping properties at so called loss at sherriffs and judicial sales and auctions and multiple title chains created though bk court they still are getting many times the amount of the mortage in securities which are used as money.

It really was never about collecting fees it's about converting mortgages in securities. What is happening is lenders ans investors are turning our mortages into their money.

All these settlements and civil suits get the criminals off the hook for engineering the looting of the U.S. Lets not forget all the cheap homes, businesses and other property at bargain basement prices.
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As I sit here over this weekend, and recount all the types of fraud, we have found, discussed, and identified.  I can't help but think that we may have missed the under laying problem that really needs to be fixed.
Its been talked about a bit Moody's, Fitch, etc. for the investors, but what about the three CONSUMER CREDIT AGENCIES?
Have we done enough with them?  After all it was people like BENNY HiBBLER at LITTON LOAN that used the Universal Credit Forms to change payment histories, and it was TONY ETTINGER that created CBASS that himself credited with taking the "Sub Prime" from 12% of the population to near 40% through CBASS and SHERMAN CAPITAL.  And what about this relationship between the three consumer credit agencies, and FAIR ISSAC'S?  I know I have complained to all three agencies and have been ignored on the question of how many complaints they have received just regarding Litton Loan.
If Moody's and Fitch are to carry water for the crisis, what weight should the three consumer credit reporting agencies carry, along with Fair Issac's?  And what about them (3 consumer credit agencies) not acknowledging the complaints?  What can we do together if anything about them?  Some thoughts.
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As Judge Roy Bean says:

"What we’re really seeing is what I call “wealth recapture.” It’s reverse wealth-distribution; Washington likes to take from the rich and give to the poor. In response, the rich figured out how to get it back from the lower-middle and middle classes through the mortgage and credit-card industry and a hopelessly-fraudulent credit-scoring schema that was used to artificially inflate interest rates. There were enough people in Washington who were willing to see the duplicitous nature of the system but not do anything about it."

And from two years ago:

They are the key to the entire scheme. They are so well-protected in Washington that nothing will ever be done about them.
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Here is an interesting article and this time it is about Monroe County, NY and Rochester. Finally some notice for this area of NY, Buffalo etc.

June 13, 2008

Foreclosure crisis looming in western New York, experts say

Jim Stinson
Staff writer

With Monroe County facing a foreclosure-action rate higher than most of New York, state and local officials gathered in downtown Rochester to inform homeowners of their rights and options.

Members of a panel speaking to consumers and service providers warned that the worst may be yet to come.

"We have a foreclosure crisis in this state," said Ruhi Maker, an Empire Justice Center lawyer.

Maker said New York is one year behind hard-hit states such as California and Florida. She warned of a large decline in equity and home ownership, especially among middle-class African Americans, unless the tide turns.

Lawyers from Attorney General Andrew Cuomo's office sponsored the panel and were joined by representatives from the Housing Council, Consumer Credit Counseling Services of Rochester, Empire Justice Center and the Fair Housing Enforcement Project.

Panelists urged consumers to open their bills, discuss issues with their lenders and seek help if needed. But they also warned people to avoid foreclosure-rescue scams, which pose as help.

Carlos Rodriguez, deputy attorney general, said rescue scams tell borrowers not to talk to lenders or lawyers. They then ask for money and fees and ask the homeowners to sign over their deeds.

"Tell consumers not to sign any paperwork that has to do with the property deed," Rodriguez told the Monroe County Bar Association audience.

Maker said the data from California-based RealtyTrac, which tracks foreclosures, would be worse were it not for such groups as the Housing Council, which helps stop 700 foreclosures a year in Monroe County.

She said subprime and foreclosure trends have an epicenter in African-American neighborhoods in Rochester but have spread to all parts of Monroe County. Many panelists noted that legal action has been taken against lenders who targeted African-American neighborhoods with scam loans, with hidden costs and adjustable rates.

The Housing Council works with consumers and lenders. It is sponsoring a foreclosure-avoidance seminar for consumers from 9 a.m. to 1 p.m. Saturday at the American Red Cross, 65 College Ave.

Alex Castro, executive director of the council, said the income levels of Monroe County foreclosure victims vary widely. The trend has hurt those with equity, as 50 percent of those facing foreclosure have owned their home for three to nine years, he said.

Meanwhile, the U.S. Office of the Comptroller of the Currency, a leading bank regulator, released its 14th annual Survey of Credit Underwriting Practices and reported that "commercial and retail underwriting standards tightened after four consecutive years of eased underwriting standards."

The 2008 survey of large banks found "that the disruption in financial markets that began in 2007 led to an abrupt change in risk appetite of the majority of the banks and a renewed focus on fundamental credit principles by bank lenders."


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Fighting my own foreclosure and also went through the same thing in 96, so been here before. First and foremost..... for anyone going into forreclosure...... ANSWER THE LEGAL  FORECLOSURE NOTICE! If nothing else, this will give you months more time in your house before being actually evicted. Just figure out how and do it. Also, Ohio Regs say Property appraisers MUST do WHOLE HOUSE appraisals and Montgomery Co. Appraisers only do drive-by's. They even advertise this factr in the Daily Court Reporter, but that doesn't change the facts. Contest the Appraisal amounts! 3 - 4 months gained right there. Hope this helps!

Next, I've not seen a bunch of helpful links on this site yet so here, try these;

Probably My Most Favorite with just tons and tons of info and links is
The Home Equity Theft Reporter: Another Ohio Federal Judge Demands Docs In 27 More Foreclosure Cases; Warns Attorney "Don't Do It Again!"

Ohio rules of Civil Procedure



RIPOFF REPORT ( 841 Reports!)



Wells Fargo, Countrywide Sued Over Racial Issues


Hot Mom Protests Corrupt Wells Fargo


Wells Fargo and ORIX Flat Out Lie To A Judge #1


Wells Fargo Lending Bias (by San Diego Union-Tribute)


Wells Fargo Predatory Lending (by Denver Business Journal)


Kickbacks paid by Wells Fargo (by Lawyers and Settlements)


Wells Fargo Overcharges (by Business Wire)


Wells Fargo Predatory Compensation


ACORN fights against predatory lending





Videos People Preying On Your Financial Misfortune?

Freddie Mac Dramatizes An Equity Stripping Scam (Federal Home Loan Mortgage Corporation - "Freddie Mac")

Predators Prey On Homeowners Facing Foreclosures (KCBS-TV Channel 2 - Los Angeles)

Homeowners Targeted By Foreclosure Agents (KCBS-TV Channel 2 - Los Angeles)

A Home Mortgage Mess (WABC-TV Channel 7, New York City)


Homes stolen by 'Home Savers'? (Heartbroken people lose homes, equity to "Home Savers"), (WABC-TV Channel 7, New York City)

Valley teacher, former business partners tied to federal mortgage probe (ABC 15, Phoenix)

87-Year Old Scammed In Foreclosure Rescue Refinance Scam (CBS2 - Chicago)

Rescue or Ripoff? (Part 1; Open House with Gerri Willis; CNN)

Rescue or Ripoff? (Part 2; Open House with Gerri Willis; CNN)

Mortgage Rescue? Rip-Off! (MoneyTalksNews)

Beware of Foreclosure Rescue Scams (KOMO-TV Channel 4 - Seattle)

Beware of foreclosure rescue scams (a different video from #5, above) (KOMO-TV Channel 4, Seattle)

Hazards Of Foreclosure Rescues (KIRO-TV Channel 7, Seattle)

Foreclosure scams prey on homeowners (Reuters News Service)

Texas Attorney General Deals with Foreclosure Rescue Scams (Channel 2, Texas)

Vulnerable homeowners target of scams (NBC News)

Homeowners sue mortgage company (NBC News)

Home Lost In Foreclosure Scheme (Central Florida News 13 - Orlando)

Man jailed for 'foreclosure rescue' theft (WOOD-TV Channel 8, Grand Rapids, MI)

Company accused of exploiting the desperate - Part 1 (Fox Channel 13, Tampa, FL)

Second company accused of mortgage scam - Part 2 (Fox Channel 13, Tampa, FL)

ConsumerWatch: Foreclosure Scams (CBS Early Show)

Mortgage Foreclosure Scams (NBC Today Show)

Foreclosure Scams - Don't Get Taken (CBN Network),

Foreclosure Scams Skyrocketing Across S. Fla. (CBS 4, Miami, FL)

Mortgage Scams More Rampant Than Ever In Fla. (CBS 4, Miami, FL)

Foreclosure Fraud: Predators Want Your Home (CBS 4, Miami)

Church Members: We Were Scammed Out Of Our Homes (CBS 4, Miami)

Homeowners facing foreclosure are targeted again (WKYC-TV Channel 3, Cleveland, OH)

Foreclosure Rip-Offs (KHOU-TV Channel 11, Houston, TX)

Feds Seize Alleged Shoddy Businessman's Belongings (WBAL-TV Channel 11 - Baltimore)

Woman May Lose House After Answering TV Ad (WBAL-TV Channel 11, Baltimore, MD)

Woman Claims To Be Swindled In Foreclosure Feud (WBAL-TV Channel 11, Baltimore, MD)

Woman Gets Home Back After Fraud Investigation (WBAL-TV Channel 11, Baltimore)

Victims Of A Foreclosure "Rescue" (CBS News Shows How A Growing Scam Is Exploiting Homeowners In Foreclosure) (CBS News)

Woman Falls Victim To 'Mortgage' Program (Resident On Verge Of Losing Home) (WCVB-TV Channel 5, Boston)

Woman Falls Victim To 'Mortgage' Program (Resident On Verge Of Losing Home) (WCVB-TV Channel 5 - Boston, MA)

Foreclosure Rescue Scheme Turns Homeowners Into Tenants (Land Trust Agreement That Offers Help Often Costs People Their Homes) (WCVB-TV Channel 5, Boston)

I-Team Investigation: From Homeowner to Homeless (KLAS-TV Channel 8, Las Vegas)

Woman Scammed Out Of Home (FBI: Mortgage Fraud Cases Increase) (WRC-TV Channel 4, Washington, D.C.)

Mortgage Rescue Services (Some mortgage rescue services are really con artists) (WRC-TV, NBC 4, Washington, D.C.)

News19 On Your Side: Foreclosure Fraud Alert (WLTX-TV Channel 19, South Carolina)

Consumer warning: Home foreclosure nightmares (WCNC-TV, North Carolina)

Homeowners Unknowingly Sign Away Property (NewsChannel 5, Nashville, Tennessee)

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