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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I bought my present home in May '03 and have never required escrow, I always paid my property taxes and homeowner's insurance separately.  About 2 years ago Chase bought my mortgage and things have gone downhill since.  In January '09 they requested a copy of my insurance and I quickly sent them one.  I received a letter confirming receipt toward the end of January and all was fine.  Then they asked for a copy of my property tax receipt and I faxed them a copy on March 30, 2009, in addition to mailing a hard copy.  For reasons known only to Chase, they made a duplicate payment on my taxes in mid April and immediately started escrowing my account.  I later confirmed with their tax department they received my fax of March 30  but could not explain why they made a second property tax payment.  I have spoken to easily over 100 Customer Service reps since April and very few grasp my situation and even less seem to care.  I continue to send in my mortgage payment on time every month but it is obvious since it now does not match their escrowed amount they are not applying it to my mortgage.  Consequently, according to Chase, I am 5 months behind on my payments and foreclosure is imminent!

I have had to hire a lawyer at considerable expense to try and straighten this mess out and the stress level Chase is putting me thru is unbelievable.
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Unbelievable!!! As one attorney puts it, these banksters are "scum bags".  Make sure that you document everything, and your lawyer should sue them for all this stress they have jettisoned you into. You'll need to have a doctor's verification that you are undergoing stress though... you'll need the evidence.

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Your mortgage loan docs do NOT include and escrow account but your servicer-Chase- decided that it would "set one up" for you? That is a RESPA violation.

HUD is the entity that oversees RESPA violations. The insurance mess was also a violation.

The problem lies in the fact (and I will bet that it IS a fact) that Chase does not have your mortgage docs and has no idea what is in your loan file. Therefore, they try to "service" you like they "service" everyone else. Chase is guessing at how your loan is structured. "Produce the note" may work for you.

It seems to me that when Chase was notified that you are paying your own insurance that it could have correctly inferred that your loan did not include an escrow account. That is something you need to take up with your attorney. "Stupidity as a defense" has worked for servicers in the past, but the tide is turning now. Sometimes it is more profitable for servicers to milk the account for fees so they become willfully blind to even the most common sense things, because common sense rarely produces profit for them. "Stupidity" is the jackpot.

I would immediately contact HUD and report Chase for both violations. Or have your attorney do it. This behavior will fast track you into foreclosure very quickly.

Here is your page with full explanation of violations and where and how to report those violations to HUD. Do it, and do it quickly before the situation deteriorates even more.

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We are having similar problems, 'funny business" with PHH Mortgage servicing. Have managed to keep them at bay with a direct contact , "MBS" service representative. However our suspicions are escalating since we have a high equity to loan obligation on our property, and like most individuals in our situation we have become well aware that we are prime targets for these unscrupulous "mortgage servicing" tactics.

Looking for a reputable Forensic Loan Auditor in the NYC area , if anyone can recommend a firm or individual it would be greatly appreciated. 

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4 Justice Now


Since we have a high equity to loan obligation on our property we are prime targets for these unscrupulous "mortgage servicing" tactics.

You are without a doubt spot on!

You may want to consider becoming a NACA (Neighborhood Assistance Corporation of America) member. The NACA web site proclaims that they provide forensic audit service via Consumer Mortgage Audit Center at no cost for members.

NACA Membership fee: $20.00

I haven't used this service myself therefore, I can't at all vouch for its level of quality. But it might be a good alternative, if you can't afford the usual route of obtaining such a service.

I wish you the best of luck!


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Thanks for the info. The founder of the organization NACA that you mention was on the news last night. Interesting.

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If you want to do loan audit yourself, buy this book "23 Legal Defenses to Foreclosure, How to beat the bank" by Troy Doucet at  Use code 7KJ2JBE3 to get 30% discount. The book costs only $35. It will show you step to step to audit your loan for TILA,RESPA, HOEPA etc. It is very easy to audit your loan yourself. I bought this book and audit my loan myself. The book also gives full explanation about foreclosure process, Legal Defenses and samples of pleadings. It is written by a Paralegal who is also a law student with amazing foreclosure defense knowledge. 

 If you are in foreclosure  or will be in foreclosure,  whether you have a lawyer or Pro se, you owe it to yourself to read this book. A well informed homeowner has more chance to win.

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4 Justice Now

Was the news article positive or negative? Just curious. I have heard good things in the past about him. But that said I don't really trust anything  released by media anymore as it's mostly propaganda used to control the working class and protect those who wish to enslave us. 


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It was basic coverage of what the organization is trying to do, neither positive or negative.

I agree that it is hard to trust anyone out there as they scramble to correct the real mess which is MBS's and people's properties, which is why it feel's better to either have a advocate independent help out or do it yourself based on the book recommended by Ann.

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To Ray,

I have been helping a friend that has two distinct and separate parcels of property, one with a mortgage @ Wells Fargo, and one that is in the same town, land only, and owned free and clear.

 Wells Fargo sent a check to the town clerk in an attempt to pay the property taxes on the land ,which had already been paid,  and the check was returned to Wells Fargo, they then sent a letter to the property owners stating that they should have not paid the property taxes on a parcel that Wells Fargo has no financial 
claim on.

In my opinion these "people" are taking shot's over the bow to see what comes back at them. I have these people  write a QWR letter to Wells Fargo to demand a full explanation as to why they are paying taxes on a piece of land they have no claim to.

Will keep you posted.
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I just want to clarify a recent post sent by 'JusticeNow'

The services offered in the HomeSave Program of NACA are FREE.  There is not a $20 fee.  CMAC is the organization that is offering free audit services through NACA.  CMAC looks for predatory lending practices during the origination of your loan.

Now if you are wanting to purchase a home through NACA, there is a fee involved. 

Please go online at for more info.
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Naca (National Association Consumer Attorneys) and NACA (Neighborhood Assistance Corporation of America) are almost the same...Although, the first is suppose to be done by attorneys within this network nationally that are with this group.
That said the Neighborhood Assistance Corporation of America doesn't get paid on the front side of things. They have some arrangement worked out to be paid on the back end for modification or new loans that they get people to do.
The other is attorneys who can make valid claims for you. Although, they are highly ranked within their profession most attorneys are no better than the other in this area. Although, they may work on a contingency fee. Which is what most homeowners will need.
The neighborhood assistance corportation while giving some help to the voice of consumers isn't everything I expected it to be. I'm sure there are others like me as well. Audit? they never did one that I'm aware of...
Besides what AUDIT prevents a judge stealing your home? This is done with the help of either naca or most attorneys today....The TRUTH is what the court determines not what we know it to be...I'm living proof of the protectionism the banks are receiving today....all the way to the top!
Or else there would of been criminal convictions already.
So please consider your choices. This fight is a difficult one you may not want to make. Have you spoken with an advisor of any sort? These guys know exactly what their doing. Its manufactured theft of homes...with the judges and trustees possibly being worse than the banks themselves. It adds up FINANCIAL TERRORISM at its best...I'd be in jail right now if I was accused of murder...Or if I attempted to rob a bank...Something has to change if they can be so open about denying the laws of this great country...
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To original poster:  Yep, they're setting you up to take the house.  The bad news is, there's nothing you can do to stop them.  They can lose your payments, force-place insurance you don't need, bill you for payments you haven't missed, and, oh yes, pay your taxes, even though they're paid.

They do it so they can flip the property and stick you with a bunch of fabricated fees.  They do it because nobody can fight them and there are no consumer protections from this blatant extortion that will help you.  They know you can't afford to sue them, and if you do, they'll just wait you out, until you run out of money.  If you get so so far as court, they'll bribe your attorneys and/or the judge and you'll end up with a judgement against YOU!!
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It would be great to get an update on the sitch from the op... and see if anything was worked out or not.  It would interesting to know more details on whether the original mtg contained language about an escrow acct, since he didn't have one prior to Chase being involved.  Based on what info was provided, if I understood what was written, that there would be a defense to this situation, clearly.

While I do not completely agree with Stephens post entirely, I do agree with parts of it.  The one area where the political powers that be have let ppl down is making a level playing field when these type of travesties occur such as was written by the OP.  It doesn't take more than 3rd grade common sense to determine wrong doings in that situation.  But it apparently isn't about seeing that ppl are treated fairly or the political arm would have given us something besides lip service; all politicians... left, right and center are full of BS and care nothing of the plight of ppl like the OP.   grrrrrrrrrrrr
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Ocassionally I would get a notice in the mail where you could meet with a Chase rep at a local branch to assist you in "discuss options to avoid foreclosure".  This is a nice idea for those who are behind in their mortgage for whatever reason, only problem in my case was that I was current with my payments, Chase was continuing to accept them every month.

I was just grateful when I am finally given access to a local Chase VP where I can sit down with someone semi-important and present my case with corroborating paperwork. Her eyes widen with each new piece of the puzzle but I save the best for last. While paying my 2009 taxes, just for chits and giggles, I request a copy of my 2008 receipt. And there in beautiful bold numbers still sits the overpayment of $4167 that Chase made back in April 2009!!! The idiots still haven't requested a refund but they are going ahead pursuing foreclosure on my casa.

Well the sale date of May 4 came and went but apparently the short sale was suspended for 30 days pending further review.  So all I had at the moment is a "stay of execution", they could still put the house up for foreclosure next month on the first Tuesday. But there is a new development. About 10 days ago I contacted the consumer advocates of 2 local TV stations and the NBC affiliate responsed with interest. I gave them all the details and they in turn contacted the Chase corporate headquarters in Ohio and gave them until Friday to respond. Lo & behold the media relations contact with Chase locally got back with the lady at Channel 2 in Houston and all is forgiven!  My loan will return back to it's original form with no escrow and they will also restore my credit rating which has (at least) been temporararily ruined.  Of course Chase will not reimburse me for my lawyer's fees or any time lost from work so now I will investigate what my best course of action is for that.

To be continued.


(Almost) Homeless in Houston

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Good for you!

Amazing how the hot klieg lights of media coverage causes them to "forgive", "review", "reconsider", "restore" and possibly reimburse in the future.

Tally up your losses in a fair way and send a Chase a bill. Send it to the media relations contact and ask that it be forwarded to the proper management personnel at Chase for consideration. CC it to the Channel 2 consumer advocates as well.

They most likely will not pay it, but it would make a dynamite addition to the media story should you need a Part II. Cheaper than a lawsuit. Can't hurt.

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