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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Like everyone else we got a bad loan that we could not afford. We walked away as the foreclosure process started. They changed the locks and we got the paperwork. Now we are still here after the court was asked for a final judgement. That was 7 months ago. Is there anything we can do to speed this up? Where we live we must still cut the grass, and pay water fees even though the water is not on. They also stated in the paperwork that my husband & I were liable which my name was not on any paperwork, but they cannot produce the original promissary note?????

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What state is the property located in?  Different states have different laws.

You really need to check the county records to see if the house is still actually in your name. 

Please be aware that these properties are selling for next to nothing and you may be held responsible for the deficiency.

good luck,

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The house is in Palm Coast Florida

Thanks for the response !!!
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Just up the road from you is Jacksonville Legal Aid.

Start there.

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     Since you have apparently given up on defending against the foreclosure,
and a judgement will be entered soon, the way to reduce the deficiency
judgement is to attend the auction on the courthouse steps and bid the
price up to at least its appraised value. Don't let the bank or trust buy it
for a token amount, like $100 as is the custom when more is owed than
the property is worth.
      You might want to join the nationwide movement to reduce principal
and interest by 50% by sending in half the monthly amount you owe. If
the server accepts it, you just modified your loan, without all the hassle!
If the server accepts it, you inform the Judge by showing him/her the
cancelled check and that ends the case.
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The Equitable One

I'd like some documentation or evidence to support that claim of modifying a loan by making a half payment.

By that reasoning you could also send in $1.00 and have it modified to that as being sufficient payment.

Seems pretty improbable to me.
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    As the old saying goes", When you've got nothing, you've got nothing to
lose!" The fact is, once any lawsuit begins, even an eviction in landlord-
tenant court, if the defendant tenders money to the plaintiff and the plain-
tiff accepts it, the case is over.
    If you only sent one dollar, the odds of them accepting it would be close
to zero. The more you send in, the better the odds of them accepting it.
If you sent in 50%, in many cases, it would be in their interest to accept it
because the server knows or should know, that even if they win the case
the chances of redeeming more than 50% of the alleged debt is almost zero
because of the state of the real estate market (both for the house and the
Note). In a down market, the defendant holds most of the high cards! In an
up market, the plaintiff holds all the high cards, which is why most of these
subprime loans were made in the first place. The lenders never expected
the market to go South, and them be left holding the empty bag!
     In business as life, victory often goes to the bold. SO BE BOLD!
The most you can lose are the chains that bind you!
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Please be aware that this tactic that Mike H has proposed will not work in every state.

If you have any questions about this procedure, call the specific master in equity for your area and ask before handing over any money.

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   Good point Sarah, this procedure would be different in a trust deed state,
however in Florida where you are, it would probably work (all depends on
the Judge).
    Before doing it, check the rules for Clerk of Court sales in your County
and the bidding rules.
    With regard to tendering payment and having it accepted, I have seen
this work in landlord/tenant court which is County Court so it should also
work in Circuit Court. I personnally did this with my current home back in
1992 during the Savings & Loan crisis where we had a similar situation and
that was in Florida.
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Mike H:

While basic business law teaches us that contracts CAN be modified by the mutual assent of the contracting parties, properly solemnized in writing and it is also true that acceptance and deposit of a check could constitute such a manifestation my recollection from my business three decades ago is that a memo on a check is NOT going to alter a contact UNLESS you rather conspicuously call the proposed modification to the attention of the counterparty.

For example, suppose that you wrote a letter proposing a revision to a contract and then enclosed a check.  Suppose that the letter stated in boldface type "Acceptance, endorsement and/or deposit of the enclosed check constitutes your agreement to the proposed contract modifications set forth herein."  Then suppose that you also wrote conspicuously on the check "Endorsement and depositof this check constitutes acceptance andagreement to the contract revisions described in my letter offer of 03 APR 2009".  Then suppose you placed the check in a separate sealed envelope affixed to the contract, which envelope had in boldface print "This envelope contains a check which is solely for use as consideration for and the endorsement and deposit of which reflects the payee's manifestation of assent and agreement to the revisions offered in my offer letter of 03 APR 2009. DO NOT RETAIN OR OPEN UNLESS YOU INTEND TOBE CONTRACTUALLY BOUND TO THE LANGUAGE APPEARING IN THE REVISED LANGUAGE OF THE PROPOSED CONTRACT."

Suppose that in futher follow-up, you made a COPY of the front and back of the deposited and cancelled check and sent the copy with a follow-up letter stating in essence that you had noted that the check had been accepted, endorsed and deposited and that it was your understanding that the contract had been altered to reflect language appearing within your letter of 02 APR 2009.  And then you added the following additional language:  "IF YOU ENDORSED AND DEPOSITED THE CHECK IN ERROR, PLEASE MAKE FULL RESTITUTION WITHIN TEN DAYS.."    

I think we could probably all agree that that endorsement and deposit of the check and failure to timely return the tendered money probably legally bound the payee to the revised language in most states.

By contrast, if you added a memo in six point font to a check in the amount of your regular mortgage payment which said, "acceptance of this payment constitutes the forgiveness of the outstanding mortgage balance" and then enclosed the check in an ordinary regular envelope with your monthly payment coupon, I think that reasonable people would generally agree that this would NOT discharge the obligation.

Though I am shooting from the hip on this, my recollection is that no contract would arise absent the acceptance of the proposed language.  In the former instance, one has really put the payee on notice of the proposed revisions. In the latter, one is using a form of ruse to induce the appearance of assent where none was actually ever intended. 

Between these extremes are many other sets of facts that would be subject to varying interpretations by judges and juries in jurisdictions throughout the country.

I would think that anyone desiring to employ such a strategy would be well counseled to check with an attorney and/or to consult the case law of their jurisdicition.  Then, it would also be useful to put yourself into the jury box and ask how you would assess the evidence that you are creating.

In other words, also apply some common sense as to HOW you would want such a memo assessed if it appeared on a check sent to YOU.

There certainly is a place for using this type of strategy in a negotiation and in the tender of an offer.  But I would NOT hold out any great hope of prevailing using an ambush strategy that failed to adequately inform and give notice of the proposed changes and the meaning of the check. 


I would be interested in hearing Moose's comments on this topic.
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     A point I failed to mention, is that if the servicer accepts the tendered
payment, it only causes the case to be dismissed WITHOUT PREJUDICE,
which means that the case could be refiled at a later date, for example
when the "market" turns around and the relative balance of power between
the plaintiff and the defendant changes.
     Right now, in Judicial states, the balance of power is in favor of the
defendants because the plaintiff probably won't do better than 50% in
any case. If real estate prices start rising again, and the numbers favor
the plaintiff, the case could be refiled for the second and last time.
     Personally, I don't think this will happen for several years into the
future, so it gives the homeowner a breather to get their financial house
in order.
     In my case, back in 1992 during the Savings & Loan Crisis, I was dealing
with a sizable second mortgage and an investor who probably bought it
for a substantial discount, so receiving 50% still left her with a profit. Every
case is different, so you have to feel out the situation.
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