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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We received a loan modification from our Servicer.  The one item I am concerned about is a release they want us to sign releasing them from any claims . . . Is this normal in a Loan modification?

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Yes, a release being incorporated into a loan modification is typical.  This is especially true if your loan contains any defects and the servicer sees this as an opportunity to clean things up.  

Is it legal?  Well. . .  its not illegal.  Is it moral?  Personally, I don’t think it is.  Nonetheless, you have to weigh your options.  First, you can try to remove the release clause and see what they do.  My guess is they will hang tough and insist it be there.  Do you currently have a rock-solid legal claim against the servicer or originator?  And, if you pursue the servicer and/or originator in court will you end up with a better deal then the current loan modification?   As with all things legal that’s a crap shoot at best.

The more important question is this – Does this modification present a way that you can clearly afford to remain in your home for the foreseeable future?

This is not legal advice, but I hope it helps a little.

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Digger
By DEFECTS, Way To Go means FRAUD.  A loan modification is a great way to shred the fraud-laced papers that suckered you into their greedy grips, and now they will force you to sign away your rights to any future claims against them when things go really sour.

STAND UP AND PROTECT YOUR RIGHTS!  Nobody else will.  If you don't take control, someone else will, and you will not be happy with their outcome.

A modification also allows YOU to make modifications.  You have a say in this.  This is a new contract and you will sign it if and when the terms are acceptable and fair.  If maintaining your rights means making changes to their offer, then do so.  Don't let the fraud that brought you to this board - keep you here forever.
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They have an attorney working on this.  Our home has never been placed in foreclosure.  They are willing to freeze our rate for 5 years and roll the back payments into the loan, however we have to sign the waiver.   I have tried to negotiate different terms but they won't budge.  So some one please tell me, is it just better to walk away from this house and this servicer?  Is it really worth it?  We don't have any equity in the house but do have a split mortgage so not sure what would happen with the second if we try a deed in lieu of foreclosure.

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