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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If all roads (short sales, loan modifications, etc) lead to the investor and he is refusing any and all modification attempts - what other choice do I have than to let the house foreclose?  His quote 'The loan is insured - I have no motivation to modify or reduce'.  So my only other hope is to have an attorney go through my docs with a fine tooth comb to sue for mortgage fraud.  But would I sue the lender or the broker?  Also, we've missed 4 payments because when we were refused the modification, we figured we had better start saving for a rental and a move.  We have yet to get even a call yet.  Lender is American Home Mortgage and Option One is servicing.  American Home is in Bankruptcy protection so even on the slim chance that we win a lawsuit,  I don't see how they could pay us anything.  Any attorney referrals for the Roseville, CA or Sacramento, CA area would be appreciated.
Thanks a lot.
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As usual, this isn't legal advice but the broker is/was the lender's agent. You'd sue both if you have the resources to carry through with it, which you probably don't.

I think you're taking the right steps in preparing to move. With the way the economy is going home ownership is no longer a way to build on your net worth.


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connect the dots
your comment.............."'The loan is insured - I have no motivation to modify or reduce'." At least your "lender" is giving you an honest comment. Over 90% of all loans are sold to a Government Sponsored Enterprise shortly after you signed the original documents. As a codition of the sale according to the "GSE Business Model", the "servicer" has no pecuniary interest in working with you (with the exception to a few recently announced tidbits).

You loan was insured, probably by AIG or alike and you know who is backing up AIG.

Go over the "Fannie Mae Guidelines" (on line) as all of the players in the "GSE Business Model" are contractually bound to abide by them as a "minimum standard". Review "Servicer abuses" by Kurt Eggert for common abuses. If you were abused, Fannie Mae or other GSEs or investors can require the servicer to buyback your mortgage which opens a myriad of avenues for you.
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