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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http://video.foxbusiness.com/v/4593688/national-foreclosure-probe-far-from-over?playlist_id=87072

But in the end the right amount of money will make it go away, it always does.



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Correction: Thread title should have read - Far From Over? Let's Hope its Far From Over 
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Hello,

I found this site while searching for Green Tree Servicing Company and Litton Company.  A member of my family purchased his home through Litton.  Things were well at first.  He made his payments on time and accurately.  Two years ago he lost his job, and requested a loan modification in order to lower his monthly payment.  Litton sent him paperwork approving a modification and a lower payment.  He paid the payments as required and received statements each month validating the modified loan amount.  Then out of nowhere, he received a letter stating that he was 4,000.00 behind and that it would need to be paid.  He immediately sought help from a counseling company and they were not able to get anywhere with the company because if Litton decided to refuse to answer a question or reply to a letter, they did it.  In the process of this confusion, Green Tree took over Litton and sent out a foreclosure letter.  When asked about the letter, Green Tree did not even know if a letter had been sent out.  Then an official letter came out and once contacted by the counseling agency, they  (Green Tree) said they did not deal with third parties.  They want to foreclose or have the amount owed.  They won't look into the matter or accept paperwork clearly showing that a scam has taken place.  What can be done?  Please help.
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There is much that your friend needs to do and do quickly.  Servicers, especially Litton, are notorious for reneging on modifications.  I have often wondered if Promissory Estoppel could be as a defense against foreclosure when the servicer offers a modification based on the specific performance of the borrower.  I would invite others to chime in on this one.

http://definitions.uslegal.com/p/promissory-estoppel/

Unfortunately you haven’t presented enough information that would allow anyone here to offer specific advice at this point.

First, in what state does your friend reside?  You need to know if it is a judicial or non-judicial foreclosure state.  Then we need to know exactly what was received - a notice of default/acceleration or a foreclosure suite.  Lastly, I hope your friend has saved every scrap of paper received from Litton, and has taken copious notes so as to fully document that he or she fulfilled the terms to qualify for a modification.

Have your friend create a detailed chronology of the loan beginning at the settlement date. 

The best advice at this point is to consult a lawyer.  If one can not afford a lawyer then search for local legal assistance organization that may be able to help.  DO NOT contact any commercial foreclosure prevention companies, they are all frauds.

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Hello,

The state is North Carolina.

He received a foreclosure paper with a sale date.  It is not a notice of foreclosure.
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North Carolina is both a judicial and non-judicial state.  Generally all foreclosures in NC are non-judicial, meaning the sheriff conducts the sale.  If the 'paper' has a sale date then you friend is facing foreclosure on that date.  What is the date?

Keep a close eye on this thread  for more information from others.

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Hello,

The date is May 25, 2011.  I will continue to keep an eye on the thread.  He has put a lot into earning what he has and for someone to try and take it--is unspeakable.  I read the prior post and felt that this forum was serious and so I posted.  Thank you for the recommendations you have given thus far.
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How many people can they do this to without repurcussions.  I know there are people fighting back and my loved one is fighter.  It is just finding the right avenue.  Just as there is a place that investigates Medicaid fraud, there should be a place to investigate and bring to justice mortgage companies who commit fraud.  He has a non-profit counselor who is working on a plan, but he also has the money to pay in case something does not go through.  I don't feel he has to pay when he does not owe.  That is the biggest issue.   

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Bill
Non-Judicial states are horrible.  It still makes we wait for the banks in big black boots to begin the Nazi Goose Step down the street every time someone's property is taken and sold without an opportunity to defend.  I always felt rights like owning property is what the Country is based on. 

Some senior members of the forum may have some suggestions of other methods to keeping your home, but the first avenue I could recommend is to investigate bankruptcy.  In a Non-Judical state this is an effective way to challenge the bank's ability to foreclose/sell the home.  Some homeowners are successfully filing an adversary proceeding in the bankruptcy forum.   A lot of bankruptcy attorneys offer a free consultation.  They will be able to further explain chapter 7, chapter 13, an adversary proceeding, and how they can help you keep the home.  It is important to know your options in order to make a decision based on your situation.  There is no one size fits all.  Income, equity, and many other factors come into play when looking at an option in the bankruptcy forum.    
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