Services M-O-N-O-P-O-L-Y + hostage borrowers = HUGE Profits for Scammers
No one can win against this system. The servicers are into every aspect of a foreclosure.
WHY would servicers build such huge expensive foreclosure-oriented networks unless they planned ahead of time to have a LOT of foreclosures? They would only invest money in things they saw as profit generators and they have the complete ability to ensure that these foreclosures are profitable for them.
It is self-fulfilling. Servicers win either way they go and borrowers lose either way. It is ALL "easy money" in Servicerland and almost everything else is more lucrative than simply servicing a mortgage honestly. As long as this system is set up this way people will continue to have their homes stolen. That's the bottom line.
"As a home slides toward foreclosure, mortgage companies pay for many services required to take control of the property and resell it. They typically funnel orders for title searches, insurance policies, appraisals and legal filings to companies they own or share revenue with.
Ocwen established its own title company, Premium Title Services, in part to keep more of the revenue from foreclosures, said Ms. Golant, who helped start it.
“It was hugely profitable,” she said. “Premium Title would charge for the title when it got transferred to Ocwen, then charge again when it got transferred to the new buyer, and then sell title insurance. It was easy money.”Mortgage companies not only gain this extra business through their subsidiaries, but also collect reimbursement for the payments when the houses are sold."