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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Hello,

Is a mortgage serviced through MassHousing [MH] legitimate? We got a loan in 06 through Countrywide, that has always been serviced by MH. It was assigned to MH from MERS in 2010.

We are facing foreclosure in Jan, the mortgage has a Power of Sale clause, so they don't even have to sue, so we have to do something.

Any help is appreciated.
Thank you,

wordymama
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Steven
Make them produce the note.(I.E. The original as you signed)The mortgage in paragraph 22 says upon the pay-off of all sums of the debt that they are to deliver to the clerk of court the original and this is contract. If they cant produce the original note as you signed as their proof then they are in breach of the contract and you may just save your home. Bring it to the attention of the Judge because someone down the road could show with the original and reclaim you owe the debt all-over.
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wordymama
Hi Steven,

Thanks for your response.

I have different wording in paragraph 22, and read over the whole document, but didn't find that wording anywhere....
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f
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Hi Steven,

Thanks for your response.

I have different wording in paragraph 22, and read over the whole document, but didn't find that wording anywhere....


In non-judicial foreclosure states, borrowers face a particularly daunting challenge in fighting or resisting foreclosure.

"Show me the note" strategies are almost totally ineffective EVERYWHERE. But this strategy is particularly ineffective in non-judicial foreclosure states.

The single most promising defensive avenue for homeowners in non-judicial foreclosure states is usually a bankruptcy filing. This is more likely to slow rather than stop a foreclosure. Bankruptcy also has some complexities and pitfalls. While a fairly simple bankruptcy that involves minimal borrower assets and defuse unsecured debt can be accomplished by a careful pro se debtor who studies thoroughly on the subject, you may expect the purported creditor seek a relief from the automatic bankruptcy stay.

The attorneys who act on behalf of the creditors do this exclusively. While many are sloppy and often use fabricated evidence, you have very little chance litigating against them by yourself. It is almost impossible to school yourself up on this adequately in time to stop or slow the typical non-judicial foreclosure.

A better strategy is find an experienced attorney specializing in consumer debt and bankruptcy matters. This is not to say that you ought to simply dump the case in this attorney's lap. If you are not pro-active in researching and preparing your defense, bankruptcy is more likely to be a speed bump than a barrier.

BEWARE of those who extol various debt modification or debt elimination scams. These folks will come at you with a variety of false information and myth, promising you some unrealistic hope of salvation or relief if you simply follow their prescription. But their prescription is always a prescription to disaster, which can only lead to you lining their pockets with your last few dollars, while squandering your opportunity for a real or effective defense.

Do not simply hire the first attorney you can find. Neither should you select an attorney based solely on advertising or promotion. Those who are accomplished at peddling their services are often not particularly good lawyers at all.

Treat hiring a lawyer as you might look for a good auto mechanic. Ask around. Talk to other people who might have insight or occasion to know and distinguish. Ask other non-bankruptcy attorneys who they would recommend. Realize that the answers you get are going to involve some bias and steering towards those lawyers who are friends or acquaintances of the folks you talk to. But at least some of the folks who you ask are more likely to avoid recommending someone who has been identified as unscrupulous, incompetent or ineffective. As you identify several candidates, ask others, particularly attorneys, about these individuals. Their names might not have come up until you ask, but the person you are asking might have some special insight when you identify a particular person.

Do not expect that you are going to find someone who is likely to prevent your foreclosure. It is more realistic to hope or expect to find an attorney who can be effective at forestalling a foreclosure for a sufficiently long period that employ of the attorney is economic. The attorney can also help you avoid some of the pitfalls that might otherwise result from treating the matter casually. The range of possible outcomes is large, depending upon the unique facts of your case, including the level of equity in the property (if any) and your cash flows.
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f
One other note is also in order and this involves a rather classic pitfall which pro se litigants often fall for. One past contributor to this site, Mr. Roper, has posted about this extensively.

In Massachusetts, as in other places, lenders have been exceptionally sloppy in the past as to foreclosure procedures. It is in your interest to read the Ibanez and Bevilaqua cases to better understand the foreclosure climate there.

But, first, do not expect that simply because the lenders were sloppy in the past that they are going to be sloppy with your foreclosure. Generally speaking, one would expect that in the wake of Ibanez, lenders in your state will be taking far greater care in the future.

Second, to the extent that the lender does make mistakes, it is common for pro se litigants to think that they are somehow advancing their interests by calling attention to the errors. That is usually the worst possible strategy. In a non-judicial foreclosure setting, if the lender leaves out steps, performs steps in an incorrect sequence or makes other mistakes with the paperwork, these errors can very often be easily fixed when caught in time and corrected. Some mistakes might be easily overlooked UNLESS YOU CALL ATTENTION TO THE MISTAKE.

Ibanez is particularly instructive in this regard. The borrower there didn't resist the foreclosure at all and the errors were discovered by the court so late in the process that it was impossible for the lender to correct them. Moreover, the lender had already presented to the court the erroneous documentation and was unable to re-do, alter or fabricate other contrary evidence.

Leaving aside bankruptcy (which probably remains the better avenue), one choice is to try to prevent the non-judicial foreclosure from taking place by filing suit in advance of the private sale. This is rarely effective. But worse, it may call particular attention to your foreclosure and cause the lender to use the utmost care in proceeding.

Another different approach is to allow the private sale to proceed and then to resist the foreclosure when the purchaser at the private sale (usually the lender) seeks to have you ejected from the property.

The trouble with getting too far out in front on the foreclosure by filing suit is that you telegraph that you are resisting foreclosure and they are going to really dot their "i"s and cross their "t"s.

By contrast, if you do not get out front you are taking a gamble. On the one hand, the lender and foreclosure mill may do everything correctly. On the other hand, they might make egregious mistakes as with Ibanez and Bevilaqua.

There is not any certain answer to this. The foreclosure landscape continues to evolve. What worked last year may not work today. By contrast, new defensive avenues may emerge as processes change.

If you are exceptionally bright, unemployed and have a lot of time on your hands, maybe you can master this on your own before January. If you are only of average intelligence, overworked and have little experience with legal matters, trying to resist pro se is going to be a bridge too far.
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Fndoomed
Take the state stuff and start there. In non-judicial NH we have some very strict rules about foreclosure sales. If you don't file suit or bankruptcy to contest or stop it then once that sale happens you lose ALL RIGHTS to complain about anything with the single excpetion of the "manner in which the sale was conducted" which usually means taking a lowball bid or advertising the sale in such a way that makes it look less attractive.
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Floyd
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Take the state stuff and start there. In non-judicial NH we have some very strict rules about foreclosure sales. If you don't file suit or bankruptcy to contest or stop it then once that sale happens you lose ALL RIGHTS to complain about anything with the single excpetion of the "manner in which the sale was conducted" which usually means taking a lowball bid or advertising the sale in such a way that makes it look less attractive.


Amongst non-judicial foreclosure states, Massachusetts probably has the most borrower friendly environment. Still, as I understand f's point, one is rolling the dice if one fails to act before the non-judicial sale takes place.

It is one thing if one knows that there are substantive defects in private sale procedures before the sale. It is quite another if one is merely hoping for such defects. Even if the mortgage hadn't seemed to be properly assigned in advance of sale, a properly executed assignment dated before the sale date, even if not recorded until afterwards, is probably going to prove sufficient.

Bringing suit to stop the sale has been ineffective almost everywhere except under the most egregious of fact patterns.

In a non-judicial state such as Massachusetts, the Bankruptcy Courts are probably the safest defensive avenue. I think that f has given some sound advice. I would agree with FnDoomed that doing nothing until after the completion of the sale is risks waiving many or most of the defenses.

This borrower should find a capable Bankruptcy lawyer and get some good counsel applicable to Massachusetts law.
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wordymama
Bankruptcy [BR] is not an option, but even if it were, what I am hearing is that BR only delays the sale. Do I understand correctly that the consensus is there is no way to win?
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Armand
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Bankruptcy [BR] is not an option, but even if it were, what I am hearing is that BR only delays the sale. Do I understand correctly that the consensus is there is no way to win?


If you browse the web you will find hundreds of pages extolling the prospects that you can totally eliminate your debt by following some suggested course promoted by various scam operators. The are all so-called debt elimination scams.

There is no truth to this nonsense whatsoever!

The number of distressed borrowers who have actually won their foreclosure cases outright and now enjoy quiet enjoyment of their house without paying their mortgage is probably well under 50 nationally out of about 4 million completed foreclosure cases.

These were cases distinguished by special fact patterns that made the case unique and where the borrowers were exceptionally well represented.

The scam artists and swindlers would like you to think that this is common. But your chances are far better in your state lottery at a fraction of the expense and effort and the payoff is much larger in the lottery, as well.

What is practical and realistic, especially in judicial foreclosure states like New York, New Jersey, Florida and Ohio is to extend the foreclosure process for months and even years. Courts in New York are so congested today that almost any contested foreclosure is likely to take at least two years and possibly as long as four to five years.

Foreclosure timelines in non-judicial states are far more compressed. Bankruptcy tends to be the only viable means of slowing foreclosure.

While it is absolutely possible to win some foreclosure cases, the means of winning is to capitalize on lender and foreclosure mill mistakes in the foreclosure process. These mistakes are common, but vary in character. The consequences of different mistakes also vary from jurisdiction to jurisdiction.

Those who fight will continue to suffer credit impairment for an extended period of time, but might succeed in living rent and payment free in the property for an extended period of time. Most will ultimately lose their homes, but remaining in a property for several years is also a form of victory. Sometimes, the banks will PAY a homeowner to give up the fight and leave the property. Sometimes the banks will enter into a modification agreement to end the fight, but they will usually only do this when it is in their clear economic interest to do so and often on terms still unfavorable to the borrower.

So if you found your way to the Forum in hopes that there exists some simple and certain defense that will prevent the loss of your home, then you are WASTING YOUR TIME. If it was that easy, thousands or tens of thousands would be succeeding.

The scam artists want you to THINK that it is easy, so that you will buy various worthless reports and products, NONE of which will slow your foreclosure even a single day.

So if you decide that you want to fight, there is useful information here. But there are also trolls lurking in this Forum who will try to contact you or lead you to other sites so that they can prey upon you and steal your money. So BEWARE!

If someone here or elsewhere begins to tell you about some sure fire means of avoiding foreclosure, make sure to get the person's full name, address, phone number and get the representations in writing. Then take these to your local DA or Attorney General so that these scam artists can be investigated, prosecuted and jailed. They are NOT your friends!

Also BEWARE of the ADS you see here at the Forum! The advertisers also PROMOTE THESE SAME SCAMS for the profit of the site operator.

READ THIS POST, PRINT IT OUT AND SAVE IT BEFORE IT IS DELETED BY THE FORUM ADMINISTRATOR!
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Armand
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Bankruptcy [BR] is not an option, but even if it were, what I am hearing is that BR only delays the sale.


If you CANNOT MAKE YOUR MONTHLY MORTGAGE PAYMENTS, then Bankruptcy WILL NOT PREVENT THE SALE.

If your problem is only a matter of PAST DUE BALANCES and you now have the cash flow to make CURRENT PAYMENTS and if the equity in your property is NOT NEGATIVE and you want to hang onto the house, in a Chapter 13 Bankruptcy, the pre-petition arrearages are treated differently than post-petition arrearages.

If you file for Bankruptcy and make your CURRENT PAYMENTS AFTER FILING, the Court usually will NOT allow the creditor relief of stay to sell the property.

However, even though Bankruptcy laws are national, the Bankruptcy Courts also respect certain state laws, including laws about exempt property, etc. You need to talk to a Massachusetts Bankruptcy lawyer to understand your rights in that state.

If you have no income and/or cannot make current payments, then the creditor WILL seek a relief of stay. Whether this can be quickly and easily accomplished is totally dependent upon the facts specific to YOUR CASE. Due to some sloppiness in securitization, servicing and foreclosure practices, sometimes the creditors have created problems for themselves that can take months or years to resolve. Again, this is FACT DEPENDENT. No two cases are alike, though some may be similar.

If the Lender has taken care and the paperwork is in order, Bankruptcy might slow foreclosure by only a few months. If there are problems with the paperwork, you could tie them up for a year or more.
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wordymama
I got the message Armand. Thank you.
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Steven
All I know is that my original lender in 1999 is no longer in business and my mortgage was sent to a new servicer in 2004 and I was forced into a chapter 13 bankruptcy in 2006.I suspected during my bankruptcy that my mortgage servicer was charging late fees and posting my trustees payments late.My bankruptcy attorney thought I was crazy but I convinced him to force a payment history out of my servicer which he did and low and behold during my bankruptcy my servicer indeed was doing just what I suspected,charging late fees and posting my trustees payments late and after they refunded this money to me we applied it to our mortgage.

My attorney charged me to send them a letter even though I did all the homework and I finished my bankruptcy in 2010.My mortgage was sent to a new servicer a few months back and they started sending me letters saying I was denied a mortgage modification which I never applied for.I sent them a notarized and certified affidavit pointing out I had not applied for a modification and quoted paragraph 22 of where they would produce the original note as signed in 1999 or I would counter sue them for every dime spent on my mortgage.They quit sending me the letters saying I had applied for a modification and my mortgage is current and I owe 12 more months.I got their attention and am getting ready to sue them upon the pay off of my mortgage because they will not be able to produce what the mortgage contract says the original note must be produced and it says nothing about a copy being produced in the contract.

They know this and when I mentioned the original note and it got their attention.A contract lawyer told me if they cant produce what the contract says then I have every right to sue them for breach.
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