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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The Equitable One
I didn't find this myself - it was merely passed onto me by a talented friend.

A must read.

http://decisions.courts.state.ny.us/fcas/fcas_docs/2009may/2300091562007100sciv.pdf

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TEO,

Do you know what jurisdiction they used on this? I find it intriguing because this transpired after they foreclosed.

Thanks

Kathy
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Sara
Can you guys explain what this is about.  I don't get it.

S
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Knows About NY Law
In New York State, what is in other jurisdictions a motion to vacate or set aside an order, or a bill of review, is initiated by a Show Cause Order.  Pursuant to the New York Statutes -- dont have time to look them up just now -- a defendant who has lost a case by judgment may present the Show Cause Order to the Court, presumably with at least some minimal supporting evidence.

Where appropriate, the Court then issues the Order directing that the prevailing party appear and show cause why the judgment should not be vacated.

It is unclear to me generally how difficult it is to obtain such show cause order or the likelihood of ultimately prevailing.

What I can tell you is that for some time now, over a year, virtually ALL mortgage foreclosures in Kings County, NY, have been stalled, as the Justices in Kings County have found fault sua sponte with almost every case that has been filed.  There appear to be more Show Cause Orders being granted to consider setting aside judgments than orders of reference granting foreclosure.  This development has gone largely unreported in the news media, but was being trumpeted by a participant in this Forum last year.

The decisions in the Kings County cases, though NOT binding on other jurisdictions, are still instructive.  Those looking for defensive arguments can learn a lot from reading these decisions.  Search the Forum Index Under "Kings AND NY".  And check the Legal Lounge and the Standing page.

*

I will save the lesson on champerty for another time.  But it bears mention that there is currently a question certified to the New York Court of Appeals which will clarify the NY law prohibiting champertyDepending upon the outcome, champerty may become a viable defense in certain mortgage foreclosure cases where the loan was assigned after default.
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Digger
Sarah:

For reasons unknown, the court discovered Deutsche Bank was not the owner/holder of the note and therefore had no legal basis or right (standing) to even file the case.  The problem is Deutsche represented to the court that they were the Holder, but the court found out that was a blatant lie.  Now that the court knows the truth, the judgment must be vacated and the court wants Deutsche to come back and present a legal argument to convince the court why the foreclosure judgment is valid and should stay the way it is.  If they can't, then the judgment is vacated and thrown out like it didn't happen, and the case is dismissed.

I am not a lawyer but I hope that helps.
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Thanks for putting it into words DIGGER...Then going off of what you said here where I'm going is this...By doing this doesn't this constitute a false proof of claim? Since they knew they didn't have standing to begin with? Like in my case they came to court knowing they had no standing which was provided by a blank assignment document...

Then on the 1st I found out afterwards that Citi on their proof of claim put down probably 10 different entities with the Citi name and a copy not the original promissory note. Even the copy didn't have proper endorsement to the second group the 1st mortgage was assigned to.

So they got by with fraud upon the court in my case. Which a false claim is a $500,000 penalty or 5 yrs in jail or both. Although in my case this judge seems to be regularly not obeying the law...
He pretty much stole another couples home in a chp 13 here in Stl then on another you can tell like my attorney their attorney has done nothing to really give them proper legal representation in Banko...Cause I followed the chain of title and Citi screwed themself on this one as well and the judge is letting them get by with it...Hence my THEORY the JUDGE IS ON THE TAKE!


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The Equitable One
Digger,

Upon information and belief, the NY Courts are not dismissing these cases. The orders remain in place and the Court maintains jurisdiction over the matter. This puts Plaintiff in the position of having to perform in accordance with orders, which they seem either unable or unwilling to do. Failing that performance they are not able to move the case forward. They seem to be in strange court initiated "limbo." So the courts have them in a bit of bind by not dismissing.

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