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 am trying to find out if there is anywhere that is offering help to those of us in or near foreclosure. We are in chapter 13 BK. We live in southern Illinois. We are looking for a place to move, but with our credit and BK it is nearly impossible to find a place to rent. We are possibly trying to buy a mobil home but we will need owner financing.
We surrendered our home last July. We have not been served as of yet so we are still in the home. We are just afraid that a sheriff is going to show up at the door and tell us to get out. We are just tired of living under the angst. My nephew has also lost his home and his lawyer told him that until his house sells that the title is still in his name. Is this true? So if our home doesn't sell for 3 or 4 years it is still ours but we can't live in it? And we know that the insurance will be paid by the mortgage co for the property only, but what if someone gets hurt on the property who is responsible? Am I understanding that you are not considered in foreclosure until they actually sell your home? Thanks for your help everyone. 
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Moose
t&t - every state is different, so my suggestion is to call your local legal aid organization and ask them a few questions about your situation.

When you "surrendered" the property, did you sign anything that specified when you would vacate the premises? Because you were in the Chapter 13 plan, the Trustee should of had some say in whether or not the surrender was appropriate, so you might ask your BK attorney.

I believe the advice your nephew got is sound. Foreclosure is a process not an event, and as long as the agent/attorney for the servicer doesn't file the required paperwork in your county, your name still appears as the owner on the records. They sometimes deliberately do that to dodge the taxing entities and any bills that might run up on an abandoned property.

Also, most of the BK trustees have lists of contacts for help in restoring your credit. You might want to ask them if there is an organization they recommend to filers looking for help in finding a rental property.

Hope that helps.

Moose

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     What do you mean when you say you surrendered it and yet you are
still living in it? Who did you surrender it to?
      If you are in bankruptcy, was it chapter 7 or chapter 13? Right now
you could probably negotiate a reduction in principal of 30 to 50% as well
as a reduction in the interest rate to 5 or 6%. This is because the market
for real estate is so terrible, that most lenders would rather work with you
than foreclose. Lenders don't want the property and the costs that go
with it such as insurance, taxes and maintenance, especially when they
probably won't get more than 50% after they sell it in any case. Be agressive, you are in a strong position to negotiate a reduction in debt
and interest rate.
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Moose,
Yes we did discuss it with our BK attorney. We just could not afford to keep making the payments and then we had to make payments to our unsecured debtors also and due to my job loss we signed papers saying that we were giving the house back. We made no agreement as to when we would leave. Our attorney had told us that since we surrendered that could ask for relief of stay at any time. We had an 80/20 loan. The smaller was serviced by Homecomings. They went to court within the first few months and got their relief from stay. The other servicer was HomEq (YES, I had 2 of them trying to take our home). I havn't checked with the lawyer recently to see if they have since filed. Our attorney said that we would have 6 months retribution once we are served. The problem is that they are not followining the laws as we all know. A few people have told me that if they don't serve us the papers doesn't mean that a sheriff won't show up at our door and try to remove us. One of my main concerns is that our home owners insurance has cancelled us (We had 2 claims , I thought that's why we had insurance). So as of the 27th of this month we will no longer have insurance. I know that HomEq will cover the property that is in their interest. But our personal belongings will not be covered. Also, once we do move out is there anything we can do so that we are not responsible for what happens to the property or if someone is injured on our property? Thanks Moose and we will check with our lawyer to see if they can help with us finding rental property.
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Try here to see if you qualify if you can get income again:
http://www.ncrc.org/fairlending/ncrc_crf.htm

Try this attorney in IL:

http://www.edcombs.com/

http://www.edcombs.com/CM/Actions/Predatory-Mortgages.asp


Many BK attorneys are still learning about the latest forecolsure defenses and need to partner with a consumer attorney (in lawyerspeak it is called co- counsel).


If the BK judges get the ability to modify mortgages (a new law being considered, we hope close to passing)  that may be grounds for you to file a motion so you can stay in the house, if you get another job or say rent out a room for income, so you can resume making payments and modify your ch 13 plan. This is assuming the house does not sell which should take time due to the present market. 

This may also be a longshot but if you can prove that the foreclosure was illegal due to the servicer not owning the note, or other illegal acts in the servicing and origination process you may be able to get the house back.  Have you lawyer look at recent "produce the original note or dismiss for lack of standing" rulings by Boyko, Schack, Rosenthal and Feeney all are BK judges in OH, NY, MA, MA respectively ( see legal lounge fo rmore info).

Ask Dan Edelman about this and perhaps have your lawyer contact him. Many BK lawyers are not aware of the other options, only see things through their own eyes with a limited scope of view as they have been trained to do to reduce cases down to key facts the solve issues based on other similar cases.

Attorneys need to be educated as some of the judges have been to see other options and to not rely on the gov which only acts in the interests of the federal banks and servicers as they steal equity and commit securities, insurance, and investment fraud and stick the taxpayers with the bill and no real help or bailout for most consumers of these predatory loans.

Oh yes they also ruin lives. I have no sympathy for the devil as the song goes...



  




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     Another thing to look at is "licensing". Many "fly by night lenders" never
bothered to get licensed or let their licenses to originate mortgage loans expire before the loan was made.When this happens, the law doesn't allow them to foreclose even if the Note is valid. The debt would have to be treated like an unsecured debt like a credit card. These kinds of debts can often be discharged in bankruptcy.
     Of course the Note holder in these situations could still sue and go for
a sheriff sale on the property unless the property is homesteaded like in
Florida and Texas. Does your State have a "homestead exemption" and how
much is it? These are questions that need to be answered.
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tired and tattered

How do I find out if my state has a homestead exemption? I live in Illinois.

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    My reference is from 1994 Chapter 110 Illinois Statutes. It says you have
only a $7,500 homestead exemption. I wonder how old this statute is. If
it dates from pioneer days and has not changed, you might have an argument
that it needs to be multiplied by 20 to get the figure in depreciated Federal
Reserve Notes, which would bring it up to $150,000.
    The first step is to see if your loan originator had a license to make
mortgage loans at the time it obtained the mortgage lein against your
property. Check out the Department of Finance in your State. It must
have laws similar to Florida.
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