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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KaGrif
I have just discovered after reviewing all my county records pertaining to my home loan that over the course of time there were 2 companies that never recorded the assignment and satisfaction of the loan when it was transferred. I refinanced my loan back in 2003 With Aegis Wholesale Corporation for a lower rate and 30 year mortgage. I don't remember what year they sold my loan to Countrywide Mortgage but I do find the public record in 2006 where Countrywide filed to foreclose over an $80.00 late fee which resulted in my having to pay their attorney fees and 3 advance months of payments to avoid the foreclosure. Countrywide then filed another record of dismissing the foreclosure action. Prior to Aegis Wholesale 3 other companies held my mortgage and all 3 were recorded, both with satisfactions and assignments. Interesting fact is there are no recordings of Aegis Wholesale Corporation assigning my mortgage over to Countrywide, no satisfaction of loan being paid off or Countrywide recording they were the new lender. When Countrywide went bankrupt Bank of America took over my loan for 1 year and just sold it off to Nationstar Mortgage. I am in Florida and went to review the Florida law and if I am reading it right all assignments and mortgages must be recorded in the county my home is in. So if Aegis Wholesale and Countrywide never recorded satisfactions and assignments in my county how valid is my loan? Bank of America was horrible and now I am looking at Nationstar but I am truly wanting to know if the past 3 companies actually had the legal rights to collect on my mortgage if between Aegis and Countrywide they never recorded the documents of assignment and satisfaction?
K. Griffin
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LarryM
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I have just discovered after reviewing all my county records pertaining to my home loan that over the course of time there were 2 companies that never recorded the assignment and satisfaction of the loan when it was transferred. I refinanced my loan back in 2003 With Aegis Wholesale Corporation for a lower rate and 30 year mortgage. I don't remember what year they sold my loan to Countrywide Mortgage but I do find the public record in 2006 where Countrywide filed to foreclose over an $80.00 late fee which resulted in my having to pay their attorney fees and 3 advance months of payments to avoid the foreclosure. Countrywide then filed another record of dismissing the foreclosure action. Prior to Aegis Wholesale 3 other companies held my mortgage and all 3 were recorded, both with satisfactions and assignments. Interesting fact is there are no recordings of Aegis Wholesale Corporation assigning my mortgage over to Countrywide, no satisfaction of loan being paid off or Countrywide recording they were the new lender. When Countrywide went bankrupt Bank of America took over my loan for 1 year and just sold it off to Nationstar Mortgage. I am in Florida and went to review the Florida law and if I am reading it right all assignments and mortgages must be recorded in the county my home is in. So if Aegis Wholesale and Countrywide never recorded satisfactions and assignments in my county how valid is my loan? Bank of America was horrible and now I am looking at Nationstar but I am truly wanting to know if the past 3 companies actually had the legal rights to collect on my mortgage if between Aegis and Countrywide they never recorded the documents of assignment and satisfaction?

Don't get your panties in a bunch about this!

If a prior mortgagee or assignee of a prior mortgagee failed to record a satisfaction or release of mortgage, this has nothing whatsoever to do with the validity or your liability under a subsequent mortgage. Instead, it only affects the priority of the subsequent mortgage.

For example, if A grants a mortgage to B and then later refinances by granting a mortgage to C, if the mortgage to B is unreleased then C has a junior (second) mortgage lien and B has the senior lien. But the failure to release otherwise doesn't impair either the note or mortgage held by C.

This is not to say that you shouldn't be concerned about the failure to record the release or that you are not entitled to a release. You should be concerned and you are entitled. But the failure isn't going to impair the validity of the subsequent mortgage.

BEWARE! There are many scam artists who are fleecing borrowers through a variety of debt elimination scams. These swindlers will tell you otherwise and then try to induce you to buy various specious products, consulting and services which will leave you with nothing more than an empty bank account.

The subsequent mortgagee has great reason to be concerned about the failure to record the release, because it could impair the latter's priority and this lender, as well as the closing agent, ought to be your allies in clearing this up.

*

Your post also includes at least one false statement/premise. Although Countrywide did implode in early 2008, that company never filed for bankruptcy and was never in receivership. Instead, it was acquired in a shotgun marriage with Bank of America.

To the extent that Countrywide was later renamed or merged into other BOA entities, no assignment would have been expressly necessary.

Also, the right to collect under your promissory note inures to the owner and holder of the note. The holder is the entity with the right of enforcement and the owner holds the beneficial interests and is usually entitled to the payment cash flows. Promissory notes are negotiated, usually by indorsement and delivery. No express assignment of mortgage is necessary to effect this transfer. Assignment is usually necessary in order for the holder to foreclose. Thus, the failure to execute the assignments has no bearing whatsoever on your obligation or liability to pay, etc. If you fail to pay, you are going to be in default. However, if the servicer initiates foreclosure, it will probably arrange the forgery of an assignment in support of the foreclosure and the failure to assign could be a useful defensive issue for you.

Do not mistake the possible effectiveness of this defense to delay or forestall a foreclosure as a valid reason that you might be excused from liability under the note.

This is another myth perpetrated by debt elimination scam artists! These scumb-gs are telling people that the defects in the assignments entitle the borrower to a free house. The gullible borrower is then sold various useless forensic securitization audits and a "kit" to facilitate bringing a specious Quiet Title action. If you get sucked into this morass, it will cost you thousands of dollars in fees to the scammers, plus possibly tens of thousands in legal fees for which you will be wholly responsible to the lender pursuant to Paragraph 9 of your mortgage for impairing the lien. You will quickly find yourself in default and will almost certainly lose your home, as thousands of other victims of this scam have.

If you are already in default due to an inability to pay or otherwise find it appealing to strategically default because your house is worth less than your mortgage balance, you might still be able to make use of some of the assignment defects in defending your house against foreclosure. But do not mistake arguments you can make to effect a delay for robust reasons that you can validly avoid the debt. Anyone telling you otherwise is a scam artist!
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