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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We, like most of you, have been looking into the legalities of our servicer. We recently discovered that there has been no assignment recorded after New Century sold our loan.  We have, however, been charged fees for a foreclosure sale date set and title search.  This was after signing a forbearance with Ocwen to stop forclosure proceedings.  So I am wondering if they can start any foreclosure proceedings w/o the assignment being recorded. Thanks for your help.

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Can they? - Yes.

Can they legally? No.

It's only illegal if they get caught.

It's not what you know, it's what you can prove.

Get copies of the latest filings. Cross reference them with the Notice of Default/Intent to Foreclose and show them to an attorney. ASAP. If you're current in your payments get legal counsel in place tomorrow if not sooner.

Depending on what state you're in someone here may have a law firm to recommend. Otherwise, start digging through using the "advanced search" for consumer protection specialists. Preferably with contract, litigation, FDCPA, FCRA, RESPA. TILA, banking and/or securities experience. If you can find nothing more than a real estate atty or "general practitioner" at the moment then go with that as what an attorney would tell you that you need at the moment is to have a Temporary Restraining Order - possibly filed ex parte -  filed enjoining the sale until you can get proper legal counsel in place.

Ultimately, you're also going to need a copy of the prospectus of the trust that your loan has been bundled into - assuming that your loan has been securitized and led off to Wall St. for slaughter. You should be able to determine that from the Notice of Intent to Foreclose or the foreclosure sale notice. It will look something like "Merrill Lynch Mortgage Investors Trust Series 2002 AFC-1" just for example.

Hang in there. Holler if/when you have more questions.
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Way To Go

This is in no way legal advice.  With that said, I am afraid you are on the hook for the note.  If nothing else, you in a way reaffirmed the note and lien when you signed the forbearance agreement.


You may also want to read the forbearance agreement closely to se what, if any, rights you gave up by signing it.


The lack of and assignment has never stopped a servicer in the past from initiating a foreclosure.  Technically, they cannot do it because they do not have standing to do so.  However, when push comes to shove, they will simply rush through the assignment, or if they can’t find the note, they will just offer a Lost Note Affidavit in its place.


You may have sufficient ammunition to slow them down, but you will need a lawyer to fight the fight, and he/she will not come cheap.


Whatever you decide to do make sure you sock away enough money to pay the piper when and if you run out of options.


If you have documented proof that the foreclosure related costs were added AFTER you entered into the forbearance, AND, if you are not in violation of that agreement, then the foreclosure fees are bogus.


Whatever the case, from this point forward, you need to communicate with Ocwen in writing.  Stay off the phone.


Good luck.

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Thanks Mike.  You are a wealth of information. That leads me to my next question. Should we have received some sort of notice of the sale date or foreclosure filing. There has been nothing.  How can I find out if they really filed and do they have to file with the court to set a sale date and charge us for it?

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Way to go,  The fees were added after we signed the forbearance agreement. So I really do need to find a lawyer.  Thanks!

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Way To Go

Go to Land Records at your local courthouse and look it up.  What state are you in?  Your note will spell out how notice is to be served.  Normally it is by Certified Mail.  However, ignoring the green card does not get you off the hook completely.

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I am in Ohio.  We have never received any certified letter stating an intent to foreclose.  I have never even been approached by the mail carrier with anything.

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Thanks for bailing me out, WTG. Things have been a little busy around here the last day or two. It's about time for coffee I think.

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Way To Go
Ohio is a judicuical foreclosure state.  This is good thing.  This link will give you some insight:

Ohio is also a hotbed foreclosure state.  With any luck you might be able to find an agency or other organization that can help short of giving a lawyer a bucket of money upfront.

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Hmmm...A judicial state...And no notice... I wonder if AG Mark Dann would be at all interested in that.... Is Ocwen licensed to do business in Ohio?

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Thank you all.  This is the information that I have been looking for.  We were never served with any notice of foreclosure.  I have been wanting to contact the Atty General, but I am not sure if I should just go to the consumer complaints and who takes care of it if I do.  I called the hotline once, and they said that they cannot give out any legal advice or recommend a lawyer.  I looked at their consumer website and it shows how to file a complaint and has a search that shows complaints from others.  As for Ocwen being licensed, all I know is that they lost their federal charter ( not even sure what that means).  I will have to gather all of this info together and see who to contact.  If anyone has a name at the Atty Gen office to contact, please reply.  Thanks WTG and Mike. 

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I filled out the online complaint form at the Ohio AG's website and I also followed up with a letter by mail...just in case.   Also, file a complaint with the Florida AG's because that is where Ocwen is located..  I know that the Florida AG was investigating Ocwen too. 

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Read an article today that reminded me that since OH is a judicial foreclosure state you need to take a good hard look at process of service violations. If you were never notified about the foreclosure then that could very well be a serious problem. At least serious enough to possibly have the current FC bounced. Dig through the OH RSAs on foreclosure procedures.

And take a look at that forbearance agreement sometime. See what you gave up for rights by signing it.
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Joe B
Since OH is a judicial f/c state, they must follow a certain number of steps prior to f/c, including proper notification.

So, you will need to present their failure at an appropriate hearing, which should stop the current action in its tracks. Now, here' the rub...

All this does is allow them to restart the process. So, if there is still a default, you won't get any relief, just a reprieve.

However, if there is no default, you can present your evidence at that hearing, and it should derail the f/c, unless their attorney lies like happened in my case.

Nevertheless, you should be able to muddy the water a little bit by forcing them to follow OH's laws...

Good luck

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Thanks everyone.  I am definitely going to file a complaint on the website and I will look at Florida's as well....hadn't considered that before.   I didn't realize before that we had to receive an official notice of intent to foreclose before they charged us even though it certainly didn't sound right.  I tried to dispute the charges, but Ocwen is standing firm that they are valid...of course.  So I will be looking at all of your helpful advice.  You all are the best and good luck to all of you on your situations.   

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