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 have recently posted my situation on this board. I need some information to help me make an informed decision.

Most of you on here have either filed Bankruptcy or have had agreements? Homeq has now offered me a forbearance plan, one which we can do, or file Bankruptcy. We are in a situation that we need to stop foreclosure, while pursuing legal advice about our case. They will not modify our loan! Therefore, in the future we need to refi if possible. I am so scared to make a move that would jeopardize any legal action we could take.

Which of these would put us in a better position to do this? I have seen some postings about forbearance agreements.
Any information would be appreciated.

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~Beenawhile
Help,

We need to know a few things first. I'm sorry I'm not familiar with your posts.
I know there are a couple of people using the same name "HELP".

it is very hard to distinguish between the two.

Please, tell us why you are here:

1. Are you a TRUE victim of fraud?
Meaning:........
2. Can you PROVE this?

If those two answers are yes, I say you do not want to sign a FORBEARANCE agreement ever.

A forbearance agreement, basically says, the Servicer will make a New start/ Fresh start with your account .

Do they really? bwahahahah! That answer is NO.
They will find some way of tacking/adding in fees from "before" the agreement.

****WHAT YOU SHOULD KNOW, IS A FORBEARANCE AGREEMENT IS DESIGNED TO PROTECT THE SERVICER*****

It has been said, that if you sign a Forbearance agreement, that any previous wrongdoing, on their part; or any illicit fees on their part, cannot and will not be held accountable by the Servicer in a court of law.

Once you sign the agreement, that's it........ You cannot back track and try to recollect fees they charged you for.

IF YOU SIGN THE FORBEARANCE AGREEMENT, you will still continue to suffer at the hands of this SERVICER.


Bankruptcy:
You should also know that this will help you somewhat with the stopping of the Foreclosure:

1. But keep in mind, the mortgage company can come back a few months later and try to take your home away again. BUTT.........THEY WILL HAVE TO DO IT THROUGH THE BANKRUPTCY COURTS, and you will be notified, so you will be present, to provide all the documents for the Bankruptcy Judge to see, and they will keep the Servicer at bay. (if they follow the correct procedures of the law.)

2. Bankruptcy will reflect your credit for at least 7 years. During bankruptcy, you are not allowed to use credit cards, or incur further interest bearing debt.

Examples would be buying a new car.... You are not allowed to do this unless you have permission by the Courts. It's a pretty simple step to take, and doesn't cost any money. It's as easy as calling your attorney.

3. Can you buy, sell, or refinance your home while in Bankruptcy? I don't know those answers.


But chances are, that your credit is already harmed by inaccurate reporting of the Servicer. (which is done intentionally.)
If they have ruined your credit, and it's already shot, and leaves you without the possibility to "immediately" refinance, then I say your best bet at this moment is to highly consider the Chapter 13 Bankruptcy.

This is not legal advice at all. You should contact A Bankruptcy Attorney, and ask them some questions.
Write all your questions down before calling.

It would only help you to be more informed of how you are going to handle one of life's most stressful situations.

Good Luck,
Check this post, for the ideas and suggestions, of some of the others.
and Keep us posted.
~beenawhile


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Moose
This isn't legal advice!!!!

A forbearance agreement is a legal contract between you and the serivcer offering it. It does not modify the loan.  It operates strictly between you and the servicer.

In other words, you are saying you will do what that agreement says regardless of what the original loan terms and conditions were.

Some of them are so abusive that they include things that prevent you from excercising other legal rights even when you've been defrauded.

You should never enter into one of them without having a competent  attorney look at it.  The abusive servicers will try and sneak things in.  A reponse or compromise offer letter from an actual attorney changes their perspective completely. They quickly realize the easy road to getting everything they ask for is no longer paved.  In fact, depending on the law firm, they may recognize the road is nothing but a trail of doom.

Yes, you may have to spend maybe as much as a few hundred dollars to get a review to start with.  But you know what else you get?  You get legal advice that if things go south, can be drawn on to defend his or her advice.

It's a marvel to me that people spending $100 per month cable and cell phone bills won't pay for an attorney's advice in these things.

Moose
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With the forbearance you probably wave your rights to the foreclosure and redemption period and in addition  if there is fraud involved you have  probably waived your rights  to pursuing a fraud  case  because you have accepted the terms of the loan.

Likewise in B.K. it may buy you time but you have accepted the terms of the loan.

The best idea is to look for a good consumer attorney experienced in predatory lending /servicing.

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Lawyer
Do not do without consulting counsel. Greg is right, they may be squeezing you to eiminate liabity
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Thanks guys for all your advice.
I am currently waiting on one attorney to look at my loan docs.
It has been difficult as you all know to find an attorney that will take your case, so with that I will keep searching!!!! I do not want time to slip away from me, so that is why I have asked these questions. I continue to gain knowledge from all of you here.
Although I do not have any issues with them applying my payments, or taxes.
I do have Title issues and many incorrect things in my original loan docs. Until they began foreclosure, I did not know any of this.
After coming to this board I began to research my own docs!
Thanks again you guys are a wealth of information.
I now think we may be leading towards chap. 13 to stop the foreclosure and continue to search for legal help.
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~Beenawhile wrote:
Help,

We need to know a few things first. I'm sorry I'm not familiar with your posts.
I know there are a couple of people using the same name "HELP".

it is very hard to distinguish between the two.

Please, tell us why you are here:

1. Are you a TRUE victim of fraud?

We stated out with Argent Mortgage/AMC Servicer. Then transferred to Homeq.
Do not know who holds the note, county has no record of any assigns.
Still shows Argent? Homeq has given us 3 different names now, none of them have record of our note.
I am not an attorney so I am not sure what to look for.
It wasn't until our foreclosure that I began researching our loan docs.
There is incorrect information in our loan docs such as , Wrong legal description of our property, wrong SS#, we also noticed that they have a higher income for my hubby .
We are in an 2/28 arm loan, we were told it would adjust every 12 months. Wrong, it adjusts every 6 months.
Title was filed incorrectly.
We did not receive any booklet about our arm.
Homeq has refused to work anything out with us. We can come up with the back payment, but not the attorney fees they have added on. They wanted the full amount to reinstate. We are working with HOPE counselors, it wasn't until she called that they offered us a forbearance plan?
Meaning:........
2. Can you PROVE this?

If those two answers are yes, I say you do not want to sign a FORBEARANCE agreement ever.

A forbearance agreement, basically says, the Servicer will make a New start/ Fresh start with your account .

Do they really? bwahahahah! That answer is NO.
They will find some way of tacking/adding in fees from "before" the agreement.

****WHAT YOU SHOULD KNOW, IS A FORBEARANCE AGREEMENT IS DESIGNED TO PROTECT THE SERVICER*****

It has been said, that if you sign a Forbearance agreement, that any previous wrongdoing, on their part; or any illicit fees on their part, cannot and will not be held accountable by the Servicer in a court of law.

Once you sign the agreement, that's it........ You cannot back track and try to recollect fees they charged you for.

IF YOU SIGN THE FORBEARANCE AGREEMENT, you will still continue to suffer at the hands of this SERVICER.


Bankruptcy:
You should also know that this will help you somewhat with the stopping of the Foreclosure:

1. But keep in mind, the mortgage company can come back a few months later and try to take your home away again. BUTT.........THEY WILL HAVE TO DO IT THROUGH THE BANKRUPTCY COURTS, and you will be notified, so you will be present, to provide all the documents for the Bankruptcy Judge to see, and they will keep the Servicer at bay. (if they follow the correct procedures of the law.)

2. Bankruptcy will reflect your credit for at least 7 years. During bankruptcy, you are not allowed to use credit cards, or incur further interest bearing debt.

Examples would be buying a new car.... You are not allowed to do this unless you have permission by the Courts. It's a pretty simple step to take, and doesn't cost any money. It's as easy as calling your attorney.

3. Can you buy, sell, or refinance your home while in Bankruptcy? I don't know those answers.


But chances are, that your credit is already harmed by inaccurate reporting of the Servicer. (which is done intentionally.)
If they have ruined your credit, and it's already shot, and leaves you without the possibility to "immediately" refinance, then I say your best bet at this moment is to highly consider the Chapter 13 Bankruptcy.

This is not legal advice at all. You should contact A Bankruptcy Attorney, and ask them some questions.
Write all your questions down before calling.

It would only help you to be more informed of how you are going to handle one of life's most stressful situations.

Good Luck,
Check this post, for the ideas and suggestions, of some of the others.
and Keep us posted.
~beenawhile



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Sorry for the confusion!
Anything that has been posted by HELP, has been me as far as I can tell.
When I originally posted here I was getting confused with Linda Homeq posts.
So as I continue to find out information in regards to my loan I have been posting a new thread.
SORRY.........I am new at this forum stuff.
Again Thank you for all your information, it has been a great help to us.
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~Beenawhile
Alright, now I remember reading your post. Thank you for clarifying that for me.

What I find odd in this is that you managed to escape the "Servicing" aspect of this by this I mean, all the illicit fees, such as fees created by unnecessary insurances, BPO fees, appraisal fees, corporate advance fees, misc fees. and the like.

Help, do you have a copy of your "Account History Pages"?
This is paperwork that comes directly from your Servicers. They will not provide this information for you unless you Specifically ASK FOR IT.

**** You should probably request that they send them to you. If things become worse, and uglier you might not be able to get those documents from them.

Do it now while you still have the RESPA Regs. behind you.


Filing a Chapter 13 Bankruptcy will always have consequences......... as mentioned before. Negative credit, no charge cards, and such. However if they take your home, your credit will be just as bad, maybe even worse?

But here are some things you should know about the Chpt. 13.
Our Chpt 13 Attorney represented us in a way, that we really didn't understand. Much of the chpt 13.

I guess he thought hmmm... "I'm the expert at this, don't ask questions and let me do the work for you." or maybe it was because of naivety that he assumed there were things I didn't need to know about our case.
I cant truthfully tell you.

But being uninformed is NEVER a good thing.
So make sure you write your questions down ask them, and write the answers (make him wait) while you do. Otherwise, you wont remember the answer later.

It a very hard choice to make, and requires much consideration as to what you will chose to do at this point.

As Greg stated earlier........ the chpt. 13 may buy you some well needed time, to keep them at bay, until you can get things sorted out.

Since you are so far into the game, and so close to FORECLOSURE, I would Request those "Account History Pages" Pronto!
 
1. You should do so by calling them, and verbally requesting them. **Note** do not discuss anything else with them, and do not let them sweet talk you into a Forbearance. If you think you are unable to keep focused on the documents only, then do not make the call.
Don't be rude or nasty.
Whatever you do, don't get off track, don't answer their questions, and don't ask them any other questions. Period.
 
1. Also by Faxing, A QWR (MAKE SURE YOU GET THE FAX CONFIRMATION SHEET.)
 
and
3.  By sending a QWR out in Certified, Return Receipt, Signature Required.
 
If you have been effectively SERVICED there are many things you will see,
on those pages that are not showing on your monthly billing statements.

However, it is possible that you have managed to escape all of those illicit fees, but I very highly doubt it......... just look at the names involved!!!!!!

And don't forget that it was also suggested that you contact a Real Estate Attorney, about your title questions.

And a Consumer Attorney, about the entire loan.

You should not make any set in stone choices until you have had all of your questions answered by the 3 types of attorneys.

Again Good luck.


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I will do that........ASAP
We are searching for attorneys, but as you know that is not easy to do. At this point we do not trust ANYONE.
My main concern right now is the fact that we have to respond to our summons, Not sure what to do or how to do it!!!!!
We are sooooo afraid to make any moves, which is not helping our situation.
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~Beenawhile
Call the court house and ask them what a -summons- means.

sorry, I'm don;t knwo the anwer.

Ask them if you have to appear in court before a Judge.
If so, get your papers packed up and out the door with you when you go.

and by all means never leave them unattend, AT ALL!!! NEVER.


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Okay, at this point I was able to get all account history on line, from 2005 to current.
What am I looking for?
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Moose

This isn't legal advice and the friendly folks at the local courthouse won't give you legal advice, either.

A summons simply is a legal order to appear because you have been sued.

Apparently, you're in a state that uses what is known as "Judicial Foreclosure," which requires a court to oversee the process. Depending again on what state you live in, the process can be as short as a matter of weeks and in others, several months.

What may be happening to you is pretty commonplace.  The servicer turns the loan over to a law firm in your area that does little more than file foreclosures. They are specialists and it's pretty much an automated process for them.  Their system spits out the suit and probably files it electronically and then, again depending on local rules, you either get the summons in the mail or someone serves you with it.  And in most places, there will have been something called a "lis pendens" which is a public advertisement of the action in a local newspaper.

While all of this has already been put in motion, you're still negotiating (?) with the servicer to reinstate the loan through a forbearance agreement, which needs to be VERY CAREFULLY read and UNDERSTOOD.  Some of them are illegally constructed and wouldn't stand up to court scrutiny.

Not to panic you, but they won't call off the attack dogs until they have that agreement and the cashier's check. They won't even slow them down. And chances are, they'll only be paid some fraction of what HomeEq claims (and is charging you). In at least one suit against a servicer, there are reportedly kickbacks from the law firm to keep the business coming.

Having said that, after your loan is reinstated, you can then go on the offense if your attorney is willing to go after them for the fraudulently-charged "legal" fees and maybe even some of the unconscionable terms of the forbearance agreement.

At this point you really do need local legal advice, because if you have the proper evidence, you can answer the foreclosure suit and perhaps even get it put on hold (Temporary Restraining Order) while you sue to have the loan rescinded.

Moose

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The question was asked if a person can refinance during a bankruptcy. I am in Illinois and my BK attorney told me that there are companies that will refinance you. The attorney has to OK the terms of the new mortgage loan. They can also find the little things in the terms of the loan to be watchful of or if something isn't right with the new loan. They will also warn you agains the predatory practices that are going on. However, they can not tell you whether the company you are trying to aquire the mortgage loan through is a predatory company.

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Moose
tired and tattered wrote:

The question was asked if a person can refinance during a bankruptcy. I am in Illinois and my BK attorney told me that there are companies that will refinance you. The attorney has to OK the terms of the new mortgage loan. They can also find the little things in the terms of the loan to be watchful of or if something isn't right with the new loan. They will also warn you agains the predatory practices that are going on. However, they can not tell you whether the company you are trying to aquire the mortgage loan through is a predatory company.


This isn't legal advice, but if you're in a Chapter 13 plan, you can't take on any new debt without the approval of the Bankruptcy Trustee/court, which includes any possible refi.  They look more at your financial situation than any potential lender behavior.  They are charged with getting your creditors paid off through the execution of the plan as set by the court.
 
So the Trustee WILL NOT give you legal advice and cannot give you advice about the efficacy of the company you may be dealing with, thus they won't tell you if you're dealing with a predatory firm or not.  You have to rely on your own counsel for that.

If the proposed loan is completely out of whack and jeopardizes the Chapter 13 plan, it won't get approved, but it won't be because of the reputation of the candidate lender.  It will be based on what the Trustee sees on paper.

If you can get a reputable lender to make it happen, the issue that has to be addressed with your BK counsel AND the Trustee is how much the refi is going to cost and whether or not there is a financial advantage to the creditors that are being paid from the plan. 

For example, let's say the new loan results in a reduction of your mortgage of $250.  Well, that means the Trustee will probably allocate that "extra" $250 to the creditors that are being paid under the plan.

But for you in the long run, the bigger issue is who the loan could be serviced by.  You could find yourself back with the predator that pushed you out on the slippery slope in the first place. And that means they might get a second bite at the apple.

Moose 



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~beenawhile
tired and tattered wrote:

The question was asked if a person can refinance during a bankruptcy. I am in Illinois and my BK attorney told me that there are companies that will refinance you. The attorney has to OK the terms of the new mortgage loan. They can also find the little things in the terms of the loan to be watchful of or if something isn't right with the new loan. They will also warn you agains the predatory practices that are going on. However, they can not tell you whether the company you are trying to aquire the mortgage loan through is a predatory company.

But thats simple enough, just do an interenet research on the company before, you begin to refinance. Don't like the comments about the company, move on and look for another one.

There has to be a reputable company out there somewhere. We hope.
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