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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Ryran874
Hello, were a married couple and Purchased our home in Brooklyn Ny through Fremont and was given an 80/20 even tho we were approved for a 30 yr conventional loan in Dec. of '07, July of '08 our mortgage was allegedly sold to Wilshire. My wife lost her job we fell behind and tried to work out a loan mod but Wilshire said they were not a bank only a debt collecting agency and would not help us at 1st. As months went buy they refused to take any kind of payment from us. Obama came out with a law that if any credit or debt collecting agency bought loans they had to offer the same mods and refi's banks would. After about 6-7 mo of no pymts made we were served with foreclosure paperwork from Steven J. Baum PC Attorney's at law. The paperwork was, Ellington Loan Acquisition Trust 2007-2 and HSBC AS TRUSTEE against us, we didn't know who Ellington was and why HSBC was involved. We worked with there attorney Steven J. Baum and we approved for an in house mod not a HAMP mod, we took the mod lowered our payments $400 a mo.
90 days after the mod we received a letter from our homeowner ins comp that they dropped us, I called them and explained the bank pays it, they told us they are aware but the bank has not made a pymt in 3 mo. I called Wilshire and explained they told us they don't put homeowners ins in mods. Well no one told us that, Wilshire placed forced homeowner ins on the mortgage making it almost $600 a mo. Higher then the mortgage was before the mod and made it effective back dated 90 days. We tried to get homeowner ins but were denied because we were dropped, this had gone on for nearly 9mo we fell behind on the mortgage to save for the 1st yr of ins, and Wilshire put use back into foreclosure, we applied for another mod to fix the mod they gave us and went through faxing over the same info again and again, we received a letter in the mail from Wilshire that our mortgage was sold to BAC LLP, again we spoke to Wilshire and asked what happens to our mod, Wilshire said to wait 30-60 days till BAC LLP received our full acct info and let them know you were doing a mod with Wilshire. 60 days after receiving the letter we contacted BAC LLP and they told us they know nothing about a mod and that we are in foreclosure and have to apply for a mod with them. We applied for a mod with BAC LLP and began faxing over the same documents over and over, we finally were told they received all our info and we had to wait 30-90 days for an answer.
40 or so days later we received a letter from BAC LLP that our mortgage was being sold to the mother company of BAC LLP to BOA. Again we questioned what happens to our mod, we were told again to wait for BOA to receive all the info regarding our acct and inform them you were doing a mod with BAC LLP.
We called BOA and explained, they told us we have to re apply for a mod, we faxed over document again and again and again as they kept saying they don't have all the info, 90 days after they told us they had all the info they needed we were denied a mod. They told us to pay all the money we owe or they will foreclose on us. My wife had a new job for a while now at this point, she borrowed $10,000 from her pension and gave it to BOA we were told to make our monthly mortgage payments plus an extra $2,000 for 10 mo and then they will help us, we borrowed money each month from family to make the additional $2,000 a mo. payment, after the 6th pymt no one had the money to give us we missed the payment and BOA put us back into foreclosure and wanted remaining pymt in full. They refused to give us a mod, refused to do anything. They just let more time go by, months went by we asked again for a mod, BOA told us we didn't qualify we make to much money, said we may qualify for the DOJ mod BOA told us they have our paperwork from the previous mod and will submit that, 90 days went by we got letters asking for more info and this happened again and again. 90 or so days after they accepted all the paper work as complete we received a letter from BOA that we were approved for the DOJ mod. We called to find out what to do next and was told they have no record of that, we fought with BOA for months.
We then received legal paperwork from an attorney that read Ellington Loan Acquisition Trust 2007-2 with HSBC as the Trustee foreclosing on us again. All this after 2 yrs fighting with the bank and them not taking payment making us to fora mod and ask for documents we already sent again and again and again.
This time we got a lawyer and so far we had numerous court dates with the HSBC's attorney and the referee, next court date is in May and HSBC says they have a favorable mod for us $2,093 a mo. We thought it was great till we found out its only on our 1st mortgage and not the 2nd. I'm so done. We have no choice but to go to trial now because when they do the 2nd mortgage we won't be able to aford the home. We had to list both loan #'s on the work out form for HSBC and they only do 1 mod saying to our attorney they didn't know we had a 2nd note it was listed as an expenditure, "are they serious!?" Our attorney seemed positive up till now, I just don't know what to do anymore... I just need some advise from anyone who can offer anything.

Thank you
Ryan
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annettebb
There is a reason they keep "selling" your loan. Its all a debt collector scheme. It would be good for you to review cases decided in New York that are similar to yours. You have been boxed in and a modification may not be to your advantage. In New York state there are many appellate decisions which reverse foreclosures on standing. The assignments for all these "sales" in your chain are most likely bogus. All the time you have put into working with the bankers would be better spent researching who all of these entities are in the title chain and looking very carefully at those assignments, checking the names, looking for robosignors and missteps. You do seem to have a good case for good samaritan. They have offered to do mods and haven't effected one yet. All the moving parts are to keep you off balance. Also look at trust law. They have a named trust- yet in securitization, loans cannot be sold into the trust after the 90 day cutoff period(date of origination) If you haven't done a QWR, then you need to. Especially one with the Patriot Act language in it. You might get some discovery from it. You might be able to sue the bank for 2000.00 if they don't respond in the timeframe provided by the CFPB. Your lawyer needs all the help that you can provide- this saves you money, and that person time. I am also a "homeowner" in NY in foreclosure- look in the dismissals for lack of standing here at this site to get started. There are many and some coming everyday. Don't expect that a lawyer is going to do it all for you. You have to go by what your gut tells you. Not a lawyer, not legal advice. Just sympathetic. Check out Livinglies- Neil Garfield.
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Ryran874
@ annettebb, Thank for the info, I've been looking up what the "QWR" is, and it's looks something like the "discovery" our attorney served the attorney for HSBC who is the Trustee for Ellington Loan Acquisition Trust Series 2007-2 at the conference, he disregarded it, and wrote a complaint letter to the highest judge in Brooklyn court that a referee cannot order a discovery as it is out of his job discription that only a judge can order that and that this is not trial only a confrence.
We cannot aford the crappy mod they are offering as it is not a meaningful mod what so ever at all... So looks like we have no choice but to go to trial, the bank wants the 1st pymt of this mod 5/1 . Our attorney seemed very optimistic up to this point. We're not going to sign it or pay it either it's setting us up for failure. Attorney told us the bank is only offering a mod for the big mortgage @ this time, told us to take it and just leave the 2nd loan alone and will just be a lean on the home when we sell it, mean while the bank is sending us letters in regards to the small mortgage the same way they did before they served us with foreclosure... Can't believe our attorney would suggest that. On the other hand while speaking to our attorney we said we can't afford the mod there offering and she said so go to trial. Our attorney also said a lot of the people who were involved in giving us the mortgage and getting us the 1st mod they screwed up are out of bussiness and the statute of limitations on something's are expiring very soon, like Fremont who gave us the orig loan are out of business, Wilshire who gave us the 1st mod that they screwed up are out of business, and Steven J Baum PC who was Wilshire's attorney handling the mod is also out of business, and all out of business due to "F R A U D"
Our attorney says today we will talk about our options... Idk it doesn't look so good at this point...

annettenb We thank you for your response, I'm going to ask our attorney today about the "QWR"
And good luck with your situation as well

Ryan
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Angelo
@Ray

If you are in Kings County(Brooklyn), you are 100 times better off then most.  Judge Schack is there! He and his colleagues aren't to fond of the banks these days.  Do a search on this site of anything that pertains to foreclosure and key particularly in on anything from William A Roper, it will give you(and your attorney) for that matter, a lot to work with. 
A arena
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Ryran874
@ Angelo, Yes were in Kings County, We spoke to our attorney today, she told us we can't defer the 1st mod pymt of 5/1 till we meet the referee again in court that we have to pay the 3 trial pymts and she is going to contact HSBC the trustee's attorney and advise him he needs contact NationStar to mod our small mortgage as well. I don't know why she does not want to go to trial saying it's not in our best interest.... I'm just so done
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Angelo
Ryan

You have to really decide what's best for you and your family.  If the mod if good and you want to put all of this behind you, then make you trial payments and hopefully they will turn it into a permanent one.  But also know that this is sometimes a ploy by the servicer to try and suck you out of an extra 3-5K then deny you the permanent mod.  IMHO, you have a ace in you pocket in kings cty., the judges (especially Schack) would just love for the bank/servicer to play that game, so they can dismiss the case w/ prejudice for bad faith and you might then be in the drivers seat.  So good luck, and Godspeed!
A arena
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Ryran874
My attorney told us she spoke to some of her colleague's as well and they didn't think it was a good idea to go to trial either that the judge may get mad that we were offered a mod and refused it and have the bank foreclose on us
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bwssr
Do not trust the bank. I have 2 friends who went thru the trail process and made the payment on time and still lost their home. The banks are in control the can lie, cheat, and control the judges. If you sue them and they loose it's no hair off their butts. The money they loose isn't theirs anyway. The big boy upstairs get their bonus no matter how bad things are. Look at what happened with the TARP money. I have thru it all. The government, the courts, the judges, the sheriff, your congress person, senators and all law enforcement does not care if you loose your home.

OK rant over.

Good luck
They get a bailout and we get the boot.
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Ryran874
Were keeping the case in court open till the 3rd & last TPP payment is made, were also going to demand the case remain open after that to mod our small mortgage as well till those trial payments are made as well
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annettebb
I understand your feeling of the seventh circle of hell. It is all intentional against us. The main thing, to me, is that I have been lied to. I never lied to the banks I have done business with and they have continually lied to me. So- for me, it is the principle of the matter. I did contract with HSBC for a loan. I did not contract with anyone in the chain of title for a complex security disguised as a loan. In my case, it was transferred immediately to Countrywide, then when they "failed" or were "bought" it was Bank of America. Then, when BOA would not work with us, they offloaded the mess to Fannie Mae and the servicer Seterus. I did not contract with any of these entities. There are so many problems. MERS and its cloud of the title. I actually have an assignment of only the mortgage from BOA (out of sequential order as well) to Fannie Mae in which the assignment is not only robosigned, but describes the property being assigned as BLOCK 10, no section, no lot. I have sent my own motions as I have researched this for two years. I have read for hours STOPforeclosurefraud, livinglies, 4closurefraud, and msfraud. Way back in the posts on this site, there is some excellent info from William A Roper, Jr. Also Neil Garfield has written extensively about the numerous complexities of the securitization, and the illegal practices of the investment banks and servicers.  It is true that in King's County, there is much sympathy with the borrower and the judges understand trust laws and a little more on securitization. These cases are what I have drawn on in my motion. The appellate decisions are very important-judges don't want to be overruled and so many cases are being overturned by people who are willing to go the distance. I, too, have spoken with lawyers who think, I am just going to lose, so why try?? Here is why: I tried working with the bank. I learned that they have no interest in trying to work it out. They have led us on for months about a modification. Then we were served with a lis pendens. We asked for a short sale, no. I called the lawyer out on no RJI, and they had a conference, all that was available was now, surprise, short sale. However, in researching that I came across the notion that after a short sale, if the title is clouded, I could be named in the suit as well. If they foreclose, I could be sued for a deficiency. Like yours, my case is very complex with lots of players, confounded by a second mortgage, and the fact that it is not my primary residence, we had to leave for employment. What it all boils down to is fraud. Fraud in the inducement as well as racketeering and Truth in Lending. The problem with the mods is that they usually are, not unlike your original mortgage, fraud to cover up fraud, and these entities do not have the authority to approve a short sale or not, nor foreclose, nor modify. HSBC has been in big trouble with lender placed insurance. I did a mod with HSBC on a rental property, then they forceplaced insurance!! I got my own back, and they didn't pay it! However the mod specifically states the ins and taxes must be escrowed. The goal is to foreclose. That is the only way to cover up all the bad deeds done in the past. (pun intended) This is a war on the people. In my mind- I have no choice but to fight. I am not a loser, I am not a deadbeat. I don't care about my credit score, its a form of social control. This is about our freedom. The US Government and the Banksters are so arrogant and greedy that they really think we will all file into indentured servitude willingly. I will not. Since I can fight, although its scarey, I think letting it go, is scarier, and I will fight in hopes that i can add one more case to the list of people who have poked holes in the banks lies. If you let others bully you, you become a wounded animal and are targeted that way. Although it feels awful to be in limbohell, know that the wheels of justice spin very slowly. I realized that it takes time. If my motion to dismiss fails, I will file Quiet title. If my motion succeeds I will file quiet title. If the house goes to sale, I will do whatever I can to make it harder for them, and I will sue for wrongful foreclosure after the sale, if that happens. I refuse to quit on this one. I have read more horror stories than I care to admit by many banks, servicers, and their affiliates. I have read many many cases, and more growing lately, where people have stopped the banks, or at least held them off. Time is precious, enjoy it and use it wisely. If you get too anxious and too bent, they win. It is a form of terrorism, fear. You have to keep your sanity even though all around it seems that nothing was what it was purported to be. There are still good people in the world, you have to use them. Judge Shack is one of those people. There are other judges in Kings County who also have found for the homeowners. You have to keep pressing. You have to compel the evidence you seek. I subscribed to juridictionary, it costs 250/year. At the very least I understand the minimum, I couldn't afford an attorney 6 months ago- but I could now- however, nobody can ever know more than I do about this "case" and I am loathe to hand it to any attorney- I will have to be very involved still. The law is all we have left before it gets really crazy. You have to hold everyone accountable, your lawyer, the bank, the judge. It is smart to keep the case open. Document EVERYTHING!!!! Read as much as you can, and show it to your lawyer. Its funny, the lawyers in New York do not seem to research much new case law. Maybe I have too much time on my hands (a blessing for the moment) but I find cases to back up my arguments- not the least of which i found in the dismissals in this site. Many from Kings County. I wish you the best, keep your head on straight, its hard, but the time you have now is the time you have now. We are all in it together.
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annettebb
About your attorney- they have to work in this world, so politics are important. They do not want to pi** off judges they will see again in court. They will not bring charges against each other. I felt that going pro se, I could not get thrown out on a technicality, the law is supposed to be for everyone, and if I want to report misconduct, nothing stops me from doing that- it won't affect my job! So far, I filed my motion to dismiss, and I forgot to pay the fee- doh- showed up in court- shaking- all the judge said to me was- You did not file your crossmotion correctly- you did not pay the fee- court is adjourned until May 21. I said Thank you and ran out of court. I made a mistake, but somehow it feels like a bonus. i have more time to collect my robosignor proofs and do more research. oops. And it is one more month and a half that they have to wait as well. I am counting on the disorganization of the various entities involved. I am one person with one story- on their side, there is alot of patchwork- and the servicers are notorious for not getting back to attorneys, just like they are notorious for not getting back to borrowers. The lawyers are clueless, they truly believe they are right, but I got back some pretty weak arguments in reply to my motion. No proof- no facts, no real meat. It doesn't mean I will win, but it is proof to me that they don't have much to stand on. Is your lawyer afraid of litigation? They are just people too, and specialize and have strengths and weaknesses. You have to separate out what is fact, fiction, opinion, law, and psychology- it takes critical thinking. Listen to your gut.
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annettebb
Also- i believe discover y happens all the time. There is no limit. If you call the bank-or write them as in a QWR, that is all discovery. I am not sure about the referee thing. But here is what I have noticed about people. When they do not get their way, and they are beginning to have fear, you can see it in the desperation of the things they do. The letter this guy wrote sounds like grandstanding and is all for show. Intimidation can work really well. But wouldn't the referee know what they can and cannot do?? I think your lawyer is fearful and maybe at as much of a loss as you are. You see, no matter what, these institutions will do whatever they want, whenever they want. Get mad. You need fuel to feed the fire- my husband asked me if we should do a mod on our home. I said, nope, I am not going to fund my own foreclosure. If they want it- they will have to come and get it. It is coming on two years now, and we are just at the motion. Think of it now as business as usual, because all this bad business is trickling down to everyday business. We are having to hold peoples feet to the fire constantly. But we made a decision- no more, no more will we will be taken advantage of and sit idly by.
You can do your own discovery. Which the QWR is a beautiful one. There are thousands of versions. The very best i have seen are in a blogpost, from the burningplatform, under who is your lender- it will take forever to load as the page has many postings- but inside are stories and QWR's and information. Go to the bottom of the post and work backwards- you will find lots of people having to fight like this and who have also had to fight it for a very long time.
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JJ
Quote:
They have a named trust- yet in securitization, loans cannot be sold into the trust after the 90 day cutoff period(date of origination)


Annettbb, can you elaborate on this or point to a statute?  Thanks.
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annettebb
It is New York state (and Delaware too) trust law. The pooling and servicing agreements (and tax laws for indentured trusts) delineate the timeframes necessary for loans to be committed to pools which are owned by certificate holders of those trusts(investors). The timeframe is 90 days from origination. If you know the name of the trust that your loan is in- then you can get the pooling and servicing documents and those are "supposed" to be the rules.
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Ryran874
Theres a 7yr statute of limitations on all this stuff, part of the reason my attorney doesn't want it to go to trial, my attorney also spoke with 1 of her colleagues and explained the case who also thought it was not a good idea to take it to trial... Also the banks have unlimited amount of $ to fight, we don't. You have to be very careful taking these banks to court you just may lose everything. Not all cases do you get your home free, if the bank settles on offering you a mod going to trial is not wise, because the judge will ask why are we here if the bank is working with you and then your done, not only is the bank against you but now the judge is as well. I'm not willing to make that gamble
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dlunn1107
Ryran874: The agreement settles allegations that the Steven J. Baum Firm, one of the state's largest-volume foreclosure companies, engaged in "robo-signing" and other paperwork shortcuts to process a huge number of foreclosure cases for clients including Wells Fargo, JPMorgan Chase, Bank of America, HSBC and Citibank, according to Attorney General Eric Schneiderman's office...they were then shut down. A good place to start with an affirmative defense...

6 years statute of limitations in NY..
 Once a foreclosure action is begun, even if it takes ten years to litigate (which does happen sometimes in New York), the statute of limitations is not an issue. It stopped running when the action began. If, however, after years of litigation or delay the foreclosure action is dismissed (for example via a ruling years later that service of process was deficient), even though the action itself disappeared, the acceleration survived. So if the mortgage balance had been accelerated more than six years ago, the statute of limitations has expired. (The lender could start the foreclosure anew, but if the borrower asserted the statute of limitations the borrower would win; the foreclosure would be dismissed.)
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Ryran874
Paying an attorney $250 per hour to handle the case is just not feesable, to expensive to fight, and I am not in a position to fight to the end, we don't have that kind of funds. It's very expensive. They raised our mortgage from $415,000 to over $500,000. We did the 1st mod $2,100 a mo to the big mortgage, attorney thinks they will negate the 2nd since were under water already with the 1st being the mortgage is worth more the the house
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