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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mike_mn
Back in 2007 I took out 2 Mortgages for 2 investment properties in the same neighborhood.  The loans I took were a special variation of the hybrid option arm, however they were a hybrid option fixed rate loan.  The rate was 6.75 fixed for 30 years.  The loan had a 5 year option for negative amortization before a 25year repayment period started.  The loan/servicing was sold 3-4 times between 2007 and 2012.  Sometime in 2011, about 1 year before the neg am period was scheduled to expire, I was sweating the payment shock I would endure with a 6.75 rate amortized.  Oddly, the loans were sold to a new company and I noticed immediately that the terms of the loan changed.  All of the sudden I began getting monthly arm notices with a rate of ~4% or something similar.  The minimum payment due stayed the same as it had been before, but now all of the sudden I was paying principle back.  The next year when the 5 year option period expired, the repayment increase was minimal.

My question is, even though they changed the terms to my benefit, is that legal?  I haven't questioned it as I couldn't afford going to an amortized 6.75% loan anyways, so I don't want it changed back.  Just curious if there is any recourse on me or on them if the change is brought to light.
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