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 guess I'll just jump right in. We have 3 loans, our Home, Commercial Property (which houses my business) & Home equity loan. First off we have lived in our home for 18 years & refinanced 8 yrs. ago to buy the building that houses my business. At that time the loan officer (family member) suggested we do a ARM loan. Trusting her we did. After research & 3 years of increasing payments we tried to lock in our 2 mortgages & found that we had built no equity in either property. Leaving this bank & finding one that would suit our needs we managed to lock the properties into secure loans. The payments increased but we managed to make them & things seemed fine until 2 1/2 years ago. My husband is an Auto-worker, we have been dealing with long unscheduled lay-offs, short work weeks & unemployment arriving at later dates than a regular paycheck. Being a business owner my pay varies from week to week plus the fact we have double bills. Our savings have disappeared, we have cut back on everything extra that can be cut back on. Still we have struggled to make ends meet. We also have children to raise. There are no toys to speak of those are long gone, so there is nothing left to sell. My problem is we have been late making our mortgage payments, not missed any but late. I have all my bank statements showing they have been made. This bank takes 10 days to process and post a payment making it over the 30 day mark and adding even more late fees to our accounts. They are showing us almost 2 months behind & have sent letters to our front door. They will not listen when I tell them I have made the payments and I have proof. I am facing losing my home & my business over late fees. They will not give us an extension, skip a payment, modify, nothing.  I don't know where to turn. Can any one help us or suggest what I should do? I have no where to turn for the money, I had an IRA from a previous job that I have already used to try an catch up but it didn't put a dent in it. 

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h gosh
OK, first, who is your "bank" that originated the loan?  Second, who do you make your checks payable to?  Third, do you know who owns your notes?  Fourth, what is your state of residence?  Once we have this info, we can give you further info.  I suggest you 1) start seeking a knowledgeable attorney and 2) read through this forum, the article section and the legal section.  Since one of your loans is a "commercial" loan there are different rules that apply, and once we have the info for that, we will direct you to various laws, etc governing "commercial" loans to deal with that issue.

Please note this is not, nor should it be considered to be, legal advice of any kind or sort whatsoever.

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do I know you???

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Sorry, I didn't post enough information. The bank we started with was just a local bank & then we went with PNC. We live in Kentucky. We make our payments out to PNC. They told us that since we live KY that we do not qualify for the interest only payment. It is actually higher than our payment. They will not skip a payment all they do is pile on late fees. The commercial loan has already accumulated enough fees to be a payment. All 3 of these payments are due within 10 days of each other & they won't even move the due dates to help us out.

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Check this out, LOT'S of great information here.

Mortgage Servicing Fraud < The Web Site
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They are still taking our payments every month but they send letters & call every 2 hours. They have never mentioned foreclosure just that we are behind. The letter that the man delivered stated 49 days behind but when I talked to them on the phone 2 days later they said 37 days late. When I told them those were late fees that I had bank statements proving I had made payments every month & I questioned why it took 10 days to process a payment he told me to go to the bank & speak with the manager to get the answer. Some of the payments are processed in 2-3 days but most have taken 10 or more to process. I do not mail these payments, I take them directly to the bank.I don't make it before they close so they have been dropped in the night deposit but the closest bank branch to us is 20 miles away. I also don't wait until the last day to drop these payments. It has been a very difficult time trying to make these payments with little income at times. I have let other things go to make sure that these have been paid but it looks like it didn't make much difference. Thanks for your advice & help.

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O -

RESPA is a good tool. you might want to learn more about the rules.

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O -
O - wrote:

RESPA is a good tool. you might want to learn more about the rules.

HUD RESPA: More Information
Loan servicing complaints

Section 6 provides borrowers with important consumer protections relating to the servicing of their loans. Under Section 6 of RESPA, borrowers who have a problem with the servicing of their loan (including escrow account questions), should contact their loan servicer in writing, outlining the nature of their complaint. The servicer must acknowledge the complaint in writing within 20 business days of receipt of the complaint. Within 60 business days the servicer must resolve the complaint by correcting the account or giving a statement of the reasons for its position. Until the complaint is resolved, borrowers should continue to make the servicer's required payment.

A borrower may bring a private law suit, or a group of borrowers may bring a class action suit, within three years, against a servicer who fails to comply with Section 6's provisions. Borrowers may obtain actual damages, as well as additional damages if there is a pattern of noncompliance.

Other enforcement actions

Under Section 10, HUD has authority to impose a civil penalty on loan servicers who do not submit initial or annual escrow account statements to borrowers. Borrowers should contact HUD's Office of RESPA and Interstate Land Sales to report servicers who fail to provide the required escrow account statements.

Filing a RESPA complaint

Persons who believe a settlement service provider has violated RESPA in an area in which the Department has enforcement authority (primarily sections 6, 8 and 9), may wish to file a complaint. The complaint should outline the violation and identify the violators by name, address and phone number. Complainants should also provide their own name and phone number for follow up questions from HUD. Requests for confidentiality will be honored. Complaints should be sent to:

Director, Office of RESPA and Interstate Land Sales
US Department of Housing and Urban Development
Room 9154
451 7th Street, SW
Washington, DC 20410

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 Real Estate Settlement Procedures Act
          The Real Estate Settlement Procedures Act (RESPA) 12 U.S.C. 2601         is another federal consumer protection law enforced by the Department of Housing and Urban Development (HUD) and designed to help borrowers become informed consumers.

RESPA also prohibits abusive practices by real estate service providers which increased borrower's closing costs. The purchase and or sale of a residential property is a complicated process with many different players each vying for you service dollars.

In order to understand the steps and your rights under RESPA, HUD published the booklet Buying your Home: Settlement Costs to help demystify the process. The booklet is highly recommended reading for first time or in-frequent home buyers looking to fiance the purchase of a home.

          Another way RESPA helps consumers is by requiring real estate service providers to make disclosures including a Good Faith Estimate of Settlement Costs, identification of Affiliated Businesses and notices pertaining to Escrow Account Operations, including initial funding and schedule of disbursements.

 RESPA also requires use of the HUD-1 Settlement Statement which uniformly presents a complete financial summary of the residential real estate transaction.

After closing, RESPA protections address the acts of companies who collect mortgage payments called servicers and provide certain protections incase the servicing of your loan is sold or transferred to another entity.
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