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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Nye Lavalle

Couple's ties to Crook County area ran deep
Suicide - "The Donacas are related to half the people in Prineville," a friend says

Saturday, October 27, 2007
The Oregonian Staff
PRINEVILLE -- Things had not been easy for Raymond and Deanna Donaca in recent years, and their troubled deaths saddened many in this central Oregon community this week.

The couple, descendants of some of Crook County's oldest families, were found dead Tuesday in their home on the land along Mill Creek their parents had ranched and farmed. Their four dogs lay dead, too.

After losing the land and house to foreclosure, they were to clear out by midnight Monday. Instead, Crook County Sheriff's Office investigators said, Raymond, 71, and Deanna, 69, committed suicide by closing all the doors except the one into the garage and leaving their Cadillac running, filling the home with carbon monoxide.

"I knew that they were having problems and that they didn't want to leave the place," said Fred Kowolowski, a Redmond lawyer who represented them in one of three bankruptcy filings in recent years.

Those who knew Ray Donaca recall him saying that he was born in the valley where he lived, and he would die there.

His folks, Thomas and Anna Donaca, farmed the bottom lands beside the creek and raised five children there. Ray Donaca's brother, Don Donaca, still lives just across the road.

"The Donacas are related to half the people in Prineville," said Gordon Shortreed, a friend of the family.

In better days, Ray Donaca made his living working in the woods on the same big D4 Caterpillar tractor that investigators think he used to position a large trailer to block access to the homestead.

"They were doing some Forest Service work, and that sort of ran out, so they ran out of money," said Larry Irwin, another attorney for the Donacas. "And they got elderly."

Ray Donaca was in poor health, Irwin said.

Crook County court records show the couple started borrowing against their inherited 18 acres as far back as 1988.

In 2001, they got a $200,000 loan from Long Beach Mortgage Co. of California. But in 2005, they started missing their monthly payment of $1,848.61, court records show.

The bank foreclosed on their house and sold it at auction last July for about $255,000. After an unsuccessful fight to reverse the sale, the couple were ordered to leave the house by midnight Oct. 22.

Friday, there was little evidence of the Donacas and the decades they'd spent at the property on Mill Creek Road, just a green and white real estate sign. Their two-bedroom house is listed for sale for $399,000.

No service has been scheduled yet for the couple. But brother Don Donaca said the family plans to bury them at Mill Creek Cemetery, where his parents are buried.

Matthew Preusch: 541-382-2006;

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Ameriquest originated from Long beach.

Like I keep saying I believe we can charge these criminals with murder, although in this case it appears the couple had a hand in their demise because they borrowed against their property to live on.

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Just a little clarification about Long Beach Mortgage Company.  They were originally Ameriquest Mortgage, who changed their name to Long Beach after a $325 million dollar settlement with 30 state attorney generals.  Long Beach Mortgage was acquired by WASHINGTON MUTUAL in 1999, and operated as their subprime subsidiary.

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O -

Ameriquest was long beach first. then AMC and Argent, Wamu and few others im sure.

Ameriquest Sucks!
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I hope everyone that had a hand in stealing this home away from this couple can sleep at night. With so many heads rolling in the mortgage industry they might find themselves in the same situation soon.
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Foreclosure suicides continue....... a sad ending to the American Dream.

Suicides from financial crisis cause concern

An out-of-work money manager in California loses a fortune and wipes out his family in a murder-suicide. A 90-year-old Ohio widow shoots herself in the chest as authorities arrive to evict her from the modest house she called home for 38 years.


In Massachusetts, a housewife who had hidden her family's mounting financial crisis from her husband sends a note to the mortgage company warning: "By the time you foreclose on my house, I'll be dead."


Then Carlene Balderrama shot herself to death, leaving an insurance policy and a suicide note on a table. 


Across the country, authorities are becoming concerned that the nation's financial woes could turn increasingly violent, and they are urging people to get help. In some places, mental-health hot lines are jammed, counseling services are in high demand and domestic-violence shelters are full.


"I've had a number of people say that this is the thing most reminiscent of 9/11 that's happened here since then," said the Rev. Canon Ann Malonee, vicar at Trinity Church in the heart of New York's financial district. "It's that sense of having the rug pulled out from under them."


With nowhere else to turn, many people are calling suicide-prevention hot lines. The Samaritans of New York have seen calls rise more than 16 percent in the past year, many of them money-related. The Switchboard of Miami has recorded more than 500 foreclosure-related calls this year.


"A lot of people are telling us they are losing everything. They're losing their homes, they're going into foreclosure, they've lost their jobs," said Virginia Cervasio, executive director of a suicide resource enter in southwest Florida's Lee County.


But tragedies keep mounting:


- In Los Angeles last week, a former money manager fatally shot his wife, three sons and his mother-in-law before killing himself.


Karthik Rajaram, 45, left a suicide note saying he was in financial trouble and contemplated killing just himself. But he said he decided to kill his entire family because that was more honorable, police said.


Rajaram once worked for a major accounting firm and for Sony Pictures, and he had been part-owner of a financial holding company. But he had been out of work for several months, police said.


After the murder-suicide, police and mental-health officials in Los Angeles took the unusual step of urging people to seek help for themselves or loved ones if they feel overwhelmed by grim financial news. They said they were specifically afraid of the "copycat phenomenon."


"This is a perfect American family behind me that has absolutely been destroyed, apparently because of a man who just got stuck in a rabbit hole, if you will, of absolute despair," Deputy Police Chief Michel Moore said. "It is critical to step up and recognize we are in some pretty troubled times."


- In Tennessee, a woman fatally shot herself last week as sheriff's deputies went to evict her from her foreclosed home.


Pamela Ross, 57, and her husband were fighting foreclosure on their home when sheriff's deputies in Sevierville came to serve an eviction notice. They were across the street when they heard a gunshot and found Ross dead from a wound to the chest. The case was even more tragic because the couple had recently been granted an extra 10 days to appeal.


- In Akron, Ohio, the 90-year-old widow who shot herself on Oct. 1 is recovering. A congressman told Addie Polk's story on the House floor before lawmakers voted to approve a $700 billion financial rescue package. Mortgage finance company Fannie Mae dropped the foreclosure, forgave her mortgage and said she could remain in the home.


- In Ocala, Fla., Roland Gore shot his wife and dog in March and then set fire to the couple's home, which had been in foreclosure, before killing himself. His case was one of several in which people killed spouses or pets, destroyed property or attacked police before taking their own lives.


"The financial stress builds up to the point the person feels they can't go on, and the person believes their family is better off dead than left without a financial support," said Kristen Rand, legislative director of the Washington D.C.-based Violence Policy Center.


Dr. Edward Charlesworth, a clinical psychologist in Houston, said the current crisis is breeding a sense of chronic anxiety among people who feel helpless and panic-stricken, as well as angry that their government has let them down.


"They feel like in this great society that we live in we should have more protection for the individuals rather than just the corporation," he said.


It's not yet clear there is a statistical link between suicides and the financial downturn since there is generally a two-year lag in national suicide figures. But historically, suicides increase in times of economic hardship. And the current financial crisis is already being called the worst since the Great Depression.


Rising mortgage defaults and falling home values are at the heart of it. More than 4 million Americans were at least one month behind on their mortgages at the end of June, according to the Mortgage Bankers Association.


A record 500,000 had entered the foreclosure process. And that trend is expected to continue through next year, despite the current programs from the government and the lending industry to refinance delinquent homeowners into more affordable loans.


Counselors at Catholic Charities USA report seeing a "significant increase" in the need for housing counseling.


One counselor said half of her clients were on some form of antidepressant or anti-anxiety medication. The agency has seen a decrease in overall funding, but it has expanded foreclosure counseling and received nearly $2 million for such services in late 2007.


Adding to financially tense households is an air of secrecy. Experts said it's common for one spouse to blame the other for their financial mess or to hide it entirely, as Balderrama did.


After falling 3 1/2 years behind in payments, the Taunton, Mass., housewife had been intercepting letters from the mortgage company and shredding them before her husband saw them. She tried to refinance but was declined.


In July, on the day the house was to be auctioned, she faxed the note to the mortgage company. Then the 52-year-old walked outside, shot her three beloved cats and then herself with her husband's rifle.


Notes left on the table revealed months of planning. She'd picked out her funeral home, laid out the insurance policy and left a note saying, "pay off the house with the insurance money."


"She put in her suicide note that it got overwhelming for her," said her husband, John Balderrama. "Apparently she didn't have anyone to talk to. She didn't come to me. I don't know why. There's gotta be some help out there for people that are hurting, (something better) than to see somebody lose a life over a stupid house."

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4 justice now
As usual I totally agree with Greg Collins. I'm assuming the Donacas might have been paying an interest rate of approximately 10 - 11% at a time when many people were getting rates of 5 - 6%. (my guess only) (I know this maybe overly simplistic as well because there could have been a plethora of other factors at play) But either way it's fairly obvious that the lender/servicer in this case could have adjusted the rate much lower and still would have made a profit.  I wonder if the person who ended up with that winning auction number had any link to the lender/servicer. If nothing else it's just example of how these so called people simply put no value on the lives of others.
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tired and tattered

I find it amazing that it is being said that we need mental help to cope with losing our homes as though we were not the victims. Once again it is us that are at fault. The kind of help we were asking for was legal help from the fraud. We were accused of not paying our mortgage and then, to add insult to injury we are all mentally ill now because we are illegally losing our homes. The real ones with the mental problem are the crooks themselves. Many complained when they thought they were going to have to bail the homeowners out. No one seemed to understand that most of us did not want "bailed out", but wanted the fraud to stop.

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