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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Nevaeh
Are there any folks out there who are just so tired of years of your case being in court waiting for the end to come?  If so, if you decided to just walk away of your home, how are you doing afterwards?  How did you decide to stay or walk?  We are faced with this decision now as we just finished mediation and our bank has offerred small amount tol settle...if we do, then it goes to another court to finish the case with the other bank involved.....and then we wait and wait for that end to come.

We have an opportunity to rent a beautiful house from a friend....trying to decide to go that route and just walk from our house of 10 plus years or hold on for another fight...that probably will result with another small amount for settlement...

We have had a good attorney who took our case on contingency; he's a good guy. We have been able to stay in home after foreclosure, sale, etc....because of him...but it is coming to end and we just don't know what to do...How do you explain to family, friends you lost your home? How do they react....

In some ways, I feel like if we walk we can move on vs. being in a state of unknown...of our fate with our house....but...it comes with a price, loss of your home...the embarrassment...etc.


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We went into foreclosure and eventually filed bankruptcy.  I am from a non-judicial state so we got a Notice of Default.  We didn't know anything about the process.  Several people that we knew filed had their houses foreclosed on but they would not talk about it because they were to embarrassed.  We depended on our attorney for guidance and that was a big mistake.  My husband and I had a bad feeling that something was not right.  Our attorney kept saying to us words to the effect "You can't make payments because you have no income.  Just move on and start over."  So we did nothing and went through the process trying to accept the outcome.  We did cash for keys (big mistake) and also received very threatening from Fannie Mae's attorneys to get out of the house.  They even called us criminals and threatened us with the Sheriff.  The real estate agent who was assigned the house (REO agent) kept calling Fannie Mae's attorney telling them to back off, but that fell on deafs ears.

We have have been out of our home now for 19 months.  My husband has left me (he suffers from depression), still have no job and my husband gives me some money to live on from his disability retirement, my sons and I live in a dump of a rental (they are adults with part-time jobs) and my parents send me money monthly.

A friend of mine who went through foreclosure and eventually lost, gave me sites to read.  It was in reading that I found our my foreclosed was riddled with fraud from the beginning.  I know that I will not get my house back because it has been sold.  We thought that the best thing to do was walk away since, yes, we could no longer afford our home.  But what is so depressing is the way our foreclosure was done with fraud.  We as American citizens deserved better.  You see, the bank could not have foreclosed on us, they had to fabricate documents in order to steal our home.  Even after all this time. loosing our home to fraud still lingers and I cannot accept this.  Yes, I am having a hard time moving on.  Fraud should be treated as that and the people who did this to millions of people should be put in jail.

I say to those of you who are tired, fight, fight, fight.  Walking away may be one of the biggest mistakes you make.  And for some it may be what you have to do.  I am not embarrassed for loosing my home, I tell people that I lost my home because of fraud.  Find the strength to fight because if you don't the banks win and the fraud continues.  But that is my opinion and you have to decide what is right for you.  Good Luck.
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Nevaeh
Thank you for taking the time to reply.  I am so sorry about your husband leaving you and your life afterwards.

Our attorney has been great; but has told us he is looking to retire soon(he had a heart attack a year ago) and has said he is not willing to fight this out for next few years. He hasn't raped any of his clients for fee's etc. So that would mean changing attorneys(God knows who you would get and with horror stories out there, scared).

My hus had major back surgery recently and might not be able to return to work,etc. So our  life events are possible to change down the road to where we wouldn't be able to afford to keep the house anyways. In addition, we were told it would cost thousands of dollars to bring in document witnesses when case goes to trial, etc.

So lots to think about and I applaud those who can stay in fight the fraudulent banks.  We don't have the financial resources to be able to stay in and fight.  We don't want to touch our 401K as we may need that if husband can't return to work, etc. We could drain it and then lose it all in the end fighting to keep the house, etc.

So again- thanks for taking time to respond, wish you the best
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Nevaeh,

I am glad you wrote this question! I struggle with this question daily and in the wee hours of the morning when I lay awake with worry. I ask myself how did I end up in this situation at this age I am a senior.  This is my 9th primary home I was not new to the home loan world and yet here I am. In the end you must do what is right for your family. Just know no matter what your choice you have stood up to giant fraud and have made sure the pretender lender knows they can not get away with this without a fight. 

I am so tired after three years of fighting, I am not ashamed of losing my home because I did everything possible to save it and lost it anyway or so they think I will let the courts decide. I still am in the home I have a great attorney and will fight hard for wrongful foreclosure even though I now hate this place ( it is not a home it feels like a war zone!!!)  I have lived here for 7 years it was our dream home that we had worked so hard to buy.  My kids now hate this home the stress has been terrible and this makes me very sad  but if I do not fight who will? The one good thing is my kids are learning to stand up for injustice and they are proud of me as my parents are so for that I need to say thank you to the pretender lenders and banks. I have found my voice as many of of us have and the next generation is watching and learning.

Good Luck to everyone who decides  to continue to fight and to those who are tired and decide to walk away I wish for you a happy peaceful life away from the madness that has become of the American Dream




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TheEquitableOne
Everyone has to make their own decisions in this kind of thing.

I fought. I'm still fighting. And for my own reasons.

For others moving on may be the best thing for them to do. It isn't for me to say, and I cast no judgment upon those who choose a path different than mine.

If you do choose to fight go in with your eyes open and awake in your head. It WILL be among the harder things you do in your life, and will cost you in ways you are not currently aware of. But then so does walking away.

There are things that gnaw on a man worse than dieing.



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To help win the foreclosure lawsuit or any bad situation life throws at me, I first remove any emotion from the matter and look at it as one of many life challenge that I need to resolve. Then suddenly I have a clearer assessment of the situation and less stress.

I continue to fight for my house because there are 3 factors : It's cheaper to hire a lawyer to defense my house than moved out and paying rent; the Bank has committed so many frauds in my case and the tide has now turned favor to Homeowners. There is hope for many favorable options available to save the houses than 2 years ago, for example.

I educate myself, read law books, take law classes, read this website and other websites. I communicate with other distress Homeowners thus creating for myself a support group and give my support to those who need  and ask me for it. I made new friends. I am no longer a lonely fighter, I have comrades for the same battle. This helps reducing stress and build my strength. I give maximum love and care to my family to help them survive their stress of the foreclosure lawsuit and ask for their love and support . I ask for God help and support.

To me a house is material thing. If I lost this house, I will survive and maybe buy another house down the road if need be. Human factors are more important. My family and friends sticks together to weather the storm. Nothing to be ashamed if your house is in foreclosure. Owning a house is a bussiness decision. Business failed and recreate itself all the time, not a big deal. Donald Trump has many BK, Warrent Buffet has many failed investments too.

The key factors in the decision to continue to fight or not are : Is it financially advantage for me to continue to pay the cost of the fight  or give up and move on. The next factor is : can I handle the stress of a lawsuit ?

See my collection of foreclosure defense info and legal pleadings samples at
http://www.scribd.com/winstons2311. Also check out http://www.foreclosureprose.com
If you are in Florida, some of the best foreclosure defense lawyers are Dillon Graham, Matt Weidner, Thomas Ice, Mark Stopa, Mike Wasylik, Richard Shuster. They give free first consultation. Call, go see them and ask them for options/solutions available to your specific situation so you can make the right decision. They are honest and ethical lawyers.

My two cents. Best wishes

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Nevaeh
PMBVA wrote:
Nevaeh,

I am glad you wrote this question! I struggle with this question daily and in the wee hours of the morning when I lay awake with worry. I ask myself how did I end up in this situation at this age I am a senior.  This is my 9th primary home I was not new to the home loan world and yet here I am. In the end you must do what is right for your family. Just know no matter what your choice you have stood up to giant fraud and have made sure the pretender lender knows they can not get away with this without a fight. 

I am so tired after three years of fighting, I am not ashamed of losing my home because I did everything possible to save it and lost it anyway or so they think I will let the courts decide. I still am in the home I have a great attorney and will fight hard for wrongful foreclosure even though I now hate this place ( it is not a home it feels like a war zone!!!)  I have lived here for 7 years it was our dream home that we had worked so hard to buy.  My kids now hate this home the stress has been terrible and this makes me very sad  but if I do not fight who will? The one good thing is my kids are learning to stand up for injustice and they are proud of me as my parents are so for that I need to say thank you to the pretender lenders and banks. I have found my voice as many of of us have and the next generation is watching and learning.

Good Luck to everyone who decides  to continue to fight and to those who are tired and decide to walk away I wish for you a happy peaceful life away from the madness that has become of the American Dream





I am so happy a few people have responded.  I was hard pressed to find some stories of people who just couldn't hang on; who couldn't continue with the stress level all this has cost so many people.

I know the feeling when you say you now hate this house(due to the stress).  That is way we feel;  we detached emotionally after many years of trying to hold on and fight.  Instead of bringing us joy it is sucking the life out of us.

We stopped doing any upgrades because of the "what if" question.  It's been a good house; have lot of memories but for us with husband and his unknown health future and the stress level, it's best for us to move on.  Like Ann said, "a house is a business decision" and even Trump has lost financial battles.  I have lost 10# in just a few days trying to decide what is best for us.  Thank you for being supportive and I wish you luck in your fight against this relentless preyors. I can retire in a few years and had to decide do I want to fight and keep this house and drain my retirement or walk and have a retirement fund in old age. 

I am so proud of the  many brave souls who have fought and won; those who are still fighting with the hope to win.  I am thankful to this forum and the contributors, lot of blood, sweat and tears poured in here to help the millions who are in our shoes.

Best wishes to you in your case and may you win the fight
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Nevaeh
I have a friend found via our lawyer who walked our walk; his wife was ill, he lost his job and their house was foreclosed.  He got an eviction letter from local court. Our attorney had a heart attack at court time and asked for a stay; judge refused. He was evicted the same week his wife died. 20 plus years in his home, he buried his wife, packed and moved in with his father in a span of two weeks.  

Fast forward few years, he just signed a land contract for a home.  He spent the last few years rebuilding his credit.  In addition, he has found his high school sweetheart after 40 years and they are getting married. Life he told me, is good again. He said the first night in your new house will be best sleep you have had in years.....
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Nevaeh

Ann wrote:
To help win the foreclosure lawsuit or any bad situation life throws at me, I first remove any emotion from the matter and look at it as one of many life challenge that I need to resolve. Then suddenly I have a clearer assessment of the situation and less stress.

I continue to fight for my house because there are 3 factors : It's cheaper to hire a lawyer to defense my house than moved out and paying rent; the Bank has committed so many frauds in my case and the tide has now turned favor to Homeowners. There is hope for many favorable options available to save the houses than 2 years ago, for example.

I educate myself, read law books, take law classes, read this website and other websites. I communicate with other distress Homeowners thus creating for myself a support group and give my support to those who need  and ask me for it. I made new friends. I am no longer a lonely fighter, I have comrades for the same battle. This helps reducing stress and build my strength. I give maximum love and care to my family to help them survive their stress of the foreclosure lawsuit and ask for their love and support . I ask for God help and support.

To me a house is material thing. If I lost this house, I will survive and maybe buy another house down the road if need be. Human factors are more important. My family and friends sticks together to weather the storm. Nothing to be ashamed if your house is in foreclosure. Owning a house is a bussiness decision. Business failed and recreate itself all the time, not a big deal. Donald Trump has many BK, Warrent Buffet has many failed investments too.

The key factors in the decision to continue to fight or not are : Is it financially advantage for me to continue to pay the cost of the fight  or give up and move on. The next factor is : can I handle the stress of a lawsuit ?

See my collection of foreclosure defense info and legal pleadings samples at
http://www.scribd.com/winstons2311. Also check out http://www.foreclosureprose.com
If you are in Florida, some of the best foreclosure defense lawyers are Dillon Graham, Matt Weidner, Thomas Ice, Mark Stopa, Mike Wasylik, Richard Shuster. They give free first consultation. Call, go see them and ask them for options/solutions available to your specific situation so you can make the right decision. They are honest and ethical lawyers.

My two cents. Best wishes


I am in non-judicial state but thank you for websites.  I applaud you in your fight to keep your house and send the banks, crooks a message. Yes- doors are opening now for homeowners then when this crap storm first hit American homeowners.   I only have a few years left to work before retiring...in addition, my hus will inherit his mom's home when she passes..which is out of our state...so, all things considering, it makes sense for us to walk with what little we have left.  Good luck in your fight and may God's hand be over you and your family on your journey.
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BobbieF
I've been reading the stories of those who have won and those who have
lost.  We lost our home back in 2007, with no warning we were foreclosed
on. We're in a non judicial state, so they had sent the notice to the wrong
address. We got the foreclosure stopped and then we were forced into a short
sell. Our home of 15 years was stolen through fraud.  At that time we didn't
know how this came about until I started reading about the mortgage
and real estate fraud that has been going on for nearly 20 years.
I have long since detached myself from any sentiment I had for our home, have
moved on. Mainly because I know no matter how much stuff we are successful
at getting we can't take any of it with us. 
Now there's no leverage that can be  used against me, and I have nothing to lose.
So if you decide to default go with a clear mind and peace in your heart. If you
decide to fight, keep your chin up and always move forward no matter what
happens.
The people who dreamed up this scam and the people who are involved in it
are on the road of failure because their goals are all based on quicksand.
If it's not built on firm ground it will not stand, and will fall from its' own
weight. It's just a matter of time.

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FKA...
I guess you have to decide what is best for you and your family. We are all tired of fighting...living in limbo...can't/won't fix anything in the house...etc. I know I won't be "giving" my house to these Banksters. How can you move on knowing you "settled" with a party that you don't owe anything to? What happens in 6 months when another Bankster prints out a copy of your Note endorsed in Blank and proceeds to Foreclose on you again?

What about the Judge? How is he gonna treat the NEXT homeowner before him with these issues? Giving up now will teach the Judge we are just looking to prolong the inevitable :-(

I have been fighting for 3 years...I will keep fighting until the guys with the guns come and make me leave...then I will keep fighting.

The Banksters WANT you to give up! The Banksters WANT you to sign NEW paperwork promising to pay them what you don't owe. The Banksters WANT you to make BAD case law. Don't be embarrased...you did nothing wrong!
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Keep fighting if you can I am in a non-judicial state and the courts are still on the sides of the banks but I intend to hopefully move the fight forward for others and and hopefully win my battle in the end.
A little off topic but I know someone who purchased and  settled on a foreclosure home 2 weeks ago and they had started to move in and had painters working on the home and their personal items in the home. To their horror all the  locks were changed today and  things  were moved  but no note or card left they have no idea  who was in their home!! Talk about being violated!! They have no idea what bank did  this but they have the settlement papers to prove they closed. It is one thing to decide to stay and fight foreclosure  but can you just imagine how this home owner who purchased one feels!! Scarey :-( Keep Fighting
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PMBVA, sorry to say but the first mistake your friend made was buying a foreclosed home.  Your friend is a victim and I feel badly for your friend so please do not take what I say in the wrong way.  What happened to your friend may have very well happened to the former owner.  Did your friend do a title search before they put an offer on the house, check for liens?  There is so much information out there about foreclosed homes and never ceases to amaze me how people keep buying foreclosed homes and are shocked when something like that happens.  I feel sorry for your friend.  I wish your friend well, and please do an update on your friend.  Bad karma in foreclosed homes.

I have a friend who told me about her sister buying a foreclosed home.  She bought the foreclosed home at an auction at the courthouse as a wedding present for her daughter.  She did not do any checking of the records for any liens attached to the property, so she bought the property as is.  Well, as it turns out, there was a lien on the property, I think it was the 2nd mortgage but can't be 100% sure. They had the property for about 2 weeks, had already started to paint, repair somethings, etc.  They were working hard to get the house in order before the wedding.  Then just like that, locks changed and the things they had in the house gone.   Don't know all of the particulars because my friend was vague on lots of the details, but I do know the niece did not move into the house.   
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Fighting Bank Fraud – No Longer the Minority Position

For years, I’ve felt like I was on the right side of the foreclosure fight, but I’ve always felt like I was in the minority.

To illustrate, when this article came out in October, 2009, there was lots of backlash. I surivived, but there weren’t a lot of people in my corner (or, if there were, I didn’t know it, because speaking out for homeowners’ rights wasn’t terribly common).

In the two years since, though, a lot has changed. Foreclosure defense attorneys proved that homeowners facing foreclosure have viable defenses and that banks aren’t exactly wearing white hats. As the media helped educate the public about bank misconduct and robo-signing, public sentiment began shifting in favor of homeowners. These weren’t “deadbeats” – this was middle class America, falling victim to the greed of Wall Street.

Yet, on a national level, it seemed nothing was really changing. Recently, for example, I’ve lamented how Eric Schneiderman, the NY Attorney General, seems to be the only political figure pushing for any sort of real punishment for the banks as part of the AG settlement. And Obama certainly hasn’t done anything to hold the banks accountable.

So while I’ve still felt like I’m on the right side, and that our side has gained a lot of momentum, it has still felt like we’ve been in the minority.

Until now.

The New York Times reports that the United States is set to sue big banks for fraud in connection with the mortgage securitization process.

Finally! Vindication! This is the sort of thing we’ve needed – our government, on a national level, saying “yes, the banks committed fraud with these mortgages, and we’re doing something to remedy it.”

Now, it finally feels like we’re no longer in the minority. We’re on the right side of this fight against Wall Street greed and foreclosure fraud, and everyone, except the banks, knows it.

Here’s the article. …

The federal agency that oversees the mortgage giants Fannie Mae and Freddie Mac is set to file suits against more than a dozen big banks, accusing them of misrepresenting the quality of mortgage securities they assembled and sold at the height of the housing bubble, and seeking billions of dollars in compensation.

The Federal Housing Finance Agency suits, which are expected to be filed in the coming days in federal court, are aimed at Bank of America, JPMorgan Chase, Goldman Sachs and Deutsche Bank, among others, according to three individuals briefed on the matter.

The suits stem from subpoenas the finance agency issued to banks a year ago. If the case is not filed Friday, they said, it will come Tuesday, shortly before a deadline expires for the housing agency to file claims.

The suits will argue the banks, which assembled the mortgages and marketed them as securities to investors, failed to perform the due diligence required under securities law and missed evidence that borrowers’ incomes were inflated or falsified. When many borrowers were unable to pay their mortgages, the securities backed by the mortgages quickly lost value.

Fannie and Freddie lost more than $30 billion, in part as a result of the deals, losses that were borne mostly by taxpayers.

In July, the agency filed suit against UBS, another major mortgage securitizer, seeking to recover at least $900 million, and the individuals with knowledge of the case said the new litigation would be similar in scope.

Private holders of mortgage securities are already trying to force the big banks to buy back tens of billions in soured mortgage-backed bonds, but this federal effort is a new chapter in a huge legal fight that has alarmed investors in bank shares. In this case, rather than demanding that the banks buy back the original loans, the finance agency is seeking reimbursement for losses on the securities held by Fannie and Freddie.

The impending litigation underscores how almost exactly three years after the collapse of Lehman Brothers and the beginning of a financial crisis caused in large part by subprime lending, the legal fallout is mounting.

Besides the angry investors, 50 state attorneys general are in the final stages of negotiating a settlement to address abuses by the largest mortgage servicers, including Bank of America, JPMorgan and Citigroup. The attorneys general, as well as federal officials, are pressing the banks to pay at least $20 billion in that case, with much of the money earmarked to reduce mortgages of homeowners facing foreclosure.

And last month, the insurance giant American International Group filed a $10 billion suit against Bank of America, accusing the bank and its Countrywide Financial and Merrill Lynch units of misrepresenting the quality of mortgages that backed the securities A.I.G. bought.

Bank of America, Goldman Sachs and JPMorgan all declined to comment. Frank Kelly, a spokesman for Deutsche Bank, said, “We can’t comment on a suit that we haven’t seen and hasn’t been filed yet.”

But privately, financial service industry executives argue that the losses on the mortgage-backed securities were caused by a broader downturn in the economy and the housing market, not by how the mortgages were originated or packaged into securities. In addition, they contend that investors like A.I.G. as well as Fannie and Freddie were sophisticated and knew the securities were not without risk.

Investors fear that if banks are forced to pay out billions of dollars for mortgages that later defaulted, it could sap earnings for years and contribute to further losses across the financial services industry, which has only recently regained its footing.

Bank officials also counter that further legal attacks on them will only delay the recovery in the housing market, which remains moribund, hurting the broader economy. Other experts warned that a series of adverse settlements costing the banks billions raises other risks, even if suits have legal merit.

The housing finance agency was created in 2008 and assigned to oversee the hemorrhaging government-backed mortgage companies, a process known as conservatorship.

“While I believe that F.H.F.A. is acting responsibly in its role as conservator, I am afraid that we risk pushing these guys off of a cliff and we’re going to have to bail out the banks again,” said Tim Rood, who worked at Fannie Mae until 2006 and is now a partner at the Collingwood Group, which advises banks and servicers on housing-related issues.

The suits are being filed now because regulators are concerned that it will be much harder to make claims after a three-year statute of limitations expires on Wednesday, the third anniversary of the federal takeover of Fannie Mae and Freddie Mac.

While the banks put together tens of billions of dollars in mortgage securities backed by risky loans, the Federal Housing Finance Agency is not seeking the total amount in compensation because some of the mortgages are still good and the investments still carry some value. In the UBS suit, the agency said it owned $4.5 billion worth of mortgages, with losses totaling $900 million. Negotiations between the agency and UBS have yielded little progress.

The two mortgage giants acquired the securities in the years before the housing market collapsed as they expanded rapidly and looked for new investments that were seemingly safe. At issue in this case are so-called private-label securities that were backed by subprime and other risky loans but were rated as safe AAA investments by the ratings agencies.

In the years before 2007, “the market was so frothy then it was hard to find good quality loans to securitize and hold in your portfolio,” said David Felt, a lawyer who served as deputy general counsel of the finance agency until January 2010. “Fannie and Freddie thought they were taking AAA tranches, and like so many investors, they were surprised when they didn’t turn out to be such quality investments.”

Fannie and Freddie had other reasons to buy the securities, Mr. Rood added. For starters, they carried higher yields at a time when the two mortgage giants could buy them using money borrowed at rock-bottom rates, thanks to the implicit federal guarantee they enjoyed.

In addition, by law Fannie and Freddie were required to back loans to low-to-moderate income and minority borrowers, and the private-label securities were counted toward those goals.

“Competitive pressures and onerous housing goals compelled them to operate more like hedge funds than government-sponsored guarantors, ” Mr. Rood said.

In fact, Freddie was warned by regulators in 2006 that its purchases of subprime securities had outpaced its risk management abilities, but the company continued to load up on debt that ultimately soured.

As of June 30, Freddie Mac holds more than $80 billion in mortgage securities backed by more shaky home loans like subprime mortgages, Option ARM and Alt-A loans. Freddie estimates its total gross losses stand at roughly $19 billion. Fannie Mae holds $38 billion of securities backed by Alt-A and subprime loans, with losses standing at nearly $14 billion.

Mark Stopa

http://www.stayinmyhome.com

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