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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Kelli R.
EMC Mortgage/Bear Stearns are horrible to have as a lender.  I got sold down the river to them last year.  Since then they have been a real problem.
Last July when I knew I'd be having troubles, due to an illness, EMC made supposed Loan Modification arrangements with me, then never came through with their part of the agreement. They misplaced the payments and called for foreclosure.  Since I have a lot of equity in my house, I'm sure they would love to have it to help those deteriorating hedge funds they put all the CDO's into.

My story (the short version), is that I was solicited by a Broker to refinance and get some cash out of my house.  The predatory loan practically goes right down the bulleted list with huge prepayment penalties, large broker fees, points, excessive charges and finally, not the interest rate that really benefited me.  In the end, I didn't really get too much cash - but they sure did
Then, within a 30 days I was sold down the river into EMC's hands.  They claimed to be my mortgage company, not my servicer.  When I finally knew I would be in trouble with the payments that I couldn't afford, I called them to get help.  The ModSquad supposedly was going to help me.  All they did was to quickly shove me into foreclosure.  While the ModSquad said, "Don't worry about those Default Notices coming in the mail - we've got an agreement with you." the USPS Certified Mail said differently:  we're foreclosing on you.
That's when a very good friend of the family said, "My friend, you've been duped! And, I know every single one of the players:  MERS, Title Companies and the Recorder's Office." 
What he began teaching me was not just a political rant, he sent me case file after case file that said transfer of the mortgage must include the note, one of several things they did wrong.  They "lost" one of my payments, initiated escrow accounts to pay taxes that weren't really delinquent and when they did finally send me a written agreement to modify my loan. It was dated September 26 and had a stipulation to be returned by August 31st or it wasn't valid.  Nice. 
That was when I stepped up and said, "Prove to me you hold my note."  They answered with a Notice of Default filed at the County Recorder and I'm on a countdown to June 20th now.
As for  an attorney, I can't afford one. No, I'm at this alone. I'm lucky to have an associate that knows exactly what to do, as he's done it before
I'm hoping my local Prosecuting Attorney will step up to the plate.  It's unlikely though. He has a huge criminal element to deal with in our local community.  Our Judge?  I don't know, it will be a long shot - we'll probably opt for a jury trial.
Whew. Sorry I ranted for so long.  I'm sure you identify with the emotional duress I'm currently under; I don't sleep and when I do it's rife with nightmares of being homeless.  I've managed to force myself into the box of, "what's the worst that can happen?"  I'll never, ever again, use a mortgage.
Kelli R.
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Dear Kelli,
    The fact you say you have lots of equity in the property probably means
you are dealing with a predatory loan servicer. Keep a cool head and try to
continue making your payments if you can. If they refuse to accept your
payments, that's evidence in your favor. Save all your attempts to pay.
    Beware of forbearance agreements offered, you would be signing away
your legal rights to a court hearing.
    If you get served with a summons and complaint, make sure it has a
copy of the original note attached, not a lost note affidavit. If the party
suing you is not the original lender and there is a note attached, make
sure there is an "allonge" to the note transferring it to the party suing you.
    If any of this is missing, file a motion to dismiss on the issue of "standing"
ie, the party has not proved they own the "note". Do this before you file
an answer. The plaintiff must prove that they own the "note" before the
case can proceed. (The odds are about 40% in your favor, they won't
be able to come up with the note right away, if ever.) This puts you in a
strong negotiating position.
    Also, check the credit bureaus to find out what they are saying about
you. Correct or complain to the Judge about any lies they are telling about
     Last, get in touch with an "upfront" mortgage broker and see if he can
help you refi out of this "predatory" loan. There are many government pro-
grams to help people in your situation, but you need a knowledgeable broker
to find them. I hope this helps you! I've been through this myself and came
out OK. Good luck!

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