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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Fraudclosure Mill- Just Who Is Your Client Anyway?

A question that must be asked in every foreclosure case is just who hired the Plaintiff mill that is prosecuting the case…and who is paying that mill?

There has been a battle raging for years now between consumer attorney warriors who have been working to crack the secret relationship between their attorneys and the fake plaintiff that is named in the foreclosure lawsuit.

We’re especially cracking this relationship when judges start asking real questions or start putting the plaintiff actually comply with the Supreme Court’s rules.

My head almost exploded clear off my body last week when I heard a foreclosure mill exclaim to a judge when questioned about how she was going to get a complaint verified:

“But we don’t represent the Plaintiff, we represent the servicer!”

This is exactly the case and this is precisely the problem. Well, here’s where things get even more interesting. The referrals don’t come from the servicer, they come from a computer….and that’s a problem….or at least it should be if state bars and judges really started digging into this. It’s one of the backstories that’s running behind the Nevada Attorney General v. LPS Lawsuit, first addressed by my friend, Nick Wooten and a dude named Bubba Grimsley, see this article in HousingWire:

The alleged splitting of attorney fees between foreclosure law firms and third-party mortgage servicing providers is the subject of another lawsuit, bringing the number of cases filed on this issue to five within the past seven months, said Nick Wooten, an Alabama-based plaintiff’s attorney involved in all of the cases.

By mid-May, Wooten said he expects to file 10 to 12 additional cases, making similar allegations about what he claims are illegal, split-attorney fee arrangements between mortgage servicing outsourcers and law firms. The cases are concentrated in the Northern District of Mississippi, the Southern District of Alabama and the Northern District of Florida-Pensacola division.

NICK WOOTEN

And what did the banksters do when confronted by these allegations? Why they attacked the attorney that dared to challenge them? From another article in HousingWire:

An Alabama circuit court judge denied a motion Wednesday from Lender Processing Services (LPS: 14.30 -17.53%) for sanctions against attorney Nick Wooten and also declined to seal a transcript and default services agreement at the heart of Wooten’s cases.

LPS alleged in April that Wooten, who is suing LPS in several cases on behalf of homeowners, used confidential information from a bankruptcy case he was handling between Larry David Wood and Karen Wilborn Wood against Option One Mortgage, and filed multiple lawsuits against LPS in other states using that information.

NICK WOOTEN

KEEP AT THEM NICK!

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