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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here is an exerpt from the story. The judge dismissed the foreclosure because MERS could not produce who owned the mortgage!

D-Day vet's tale parallels mortgage meltdown

Ex-corpsman, 84, blames 'greed, greed, greed' as he faces losing his home

By Mike Stuckey

Senior news editor

updated 6:57 a.m. ET, Tues., Feb. 17, 2009

CERRITOS, Calif. - Questions linger here, as ripe and nagging as the odor that once wafted over this former dairy capital: Who is trying to seize the home of Ray Vargas, child of the Great Depression, D-Day veteran and loving husband who just wanted to do right by his dying wife? And are they entitled to it?

In bankruptcy court documents, the party attempting to foreclose is identified as Mortgage Electronic Registration Systems Inc., or MERS, a small Vienna, Va.-based company employed by lenders to streamline the resale of mortgage loans and servicing rights. In that role, MERS claims an interest in tens of millions of U.S. home loans and the legal right to foreclose on those in default.

But MERS never gave Vargas a loan. It never collected money from him or recorded his payments. It had no ability to modify his loan.

What it did have was a copy of a document that named it a “beneficiary” of the mortgage on his home and a “nominee” for the lender and “lender’s successors and assigns.” But it has never identified the current holder of the loan.

'It makes me sick'
While such documentation has allowed many foreclosures to proceed around the nation, the judge in Vargas’ case threw MERS for a loop, ruling that the company had no right to attempt to seize his home on behalf of unnamed plaintiffs.

“No such unidentified parties are permitted in a motion before the court,” wrote Judge Samuel L. Bufford. Bufford’s October ruling kept the foreclosure on hold and opened the door for Vargas to sue MERS in an action aimed at clearing his home of the $826,549 in debt he says is the result of fraud, forgery and abuse of process.

“It makes me sick,” said Vargas, 84, a deeply religious man who believes God is guiding him in a mission to expose wrongful foreclosure. “Greed has no bounds. That’s what the whole problem is: greed, greed, greed.”

Vargas' case has captured the attention of hundreds of attorneys and others immersed in the nation’s mortgage meltdown, which saw foreclosure filings on U.S. homes hit 3 million last year. In the first six weeks of this year, foreclosure began on another 296,000, according to the Center for Responsible Lending.

Legal icon is a new and somewhat surreal role for Vargas. The Chicago native who got his first job at 8 in the depths of the Great Depression has always been a realist.

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More from this judge:

The Saga of Missing Notes Continues

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    Thank God most of these trusts can't find the Note. Most of the time,
refi's consist of outright fraud because they "churn" the prior mortgage notes
created earlier. When a 30 year mortgage note is 15 years old, the payment
largely consists of principal. If a borrower wanted to convert some of his/her
equity into cash, the legitimate thing to do would be to leave the orignal
mortgage in place and simply have the lender write a "second Note" on the
property. In this way, the original first would continue building up equity for
the borrower. "Churning" an old first Note into a new first Note is
analogous to a life insurance agent "churning" an old whole life policy into
a new whole life policy by surrendering the old policy. In the insurance busi-
ness any agent who does this is considered a criminal, yet doing the same
thing with "old" mortgages by a broker, agent or bank is allowed even though
it  steals the "equity" of the borrower as certainly as a robber burglarizing a
home. Brokers, agents and Banks do this because it increases their commissions by loaning unneeded money at "new interest amortization". It
is a blatant rip-off and should be grounds for a "fraud in lending" action.

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The loan companies didn't give us court hearing for us to go for the foreclosure.So when we went to court to get us out of the house,we told the Judge that we didn't get a letter to show up for the foreclosure.The Judge told us that now days, we don't have to show up court on the foreclosure.I can't see how.People that I know that had a foreclosure on them,they went to court for the foreclosure.We had a good reason why we got behind payments and the loan companies knew we did do a payment and half like I told them I would (I would of made a payment and half till we got caught up)and they mailed it back,than did the foreclosure yet.

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O -
Good find!  I sure hate to see them picking on the elderly. Looks like they picked on the wrong  one this time,, Lo//.

You Go Dude!

Thank's for posting this.
 Can't wait to see more of this, it should be against the law for them to operate. WTF?
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O -

Article results for “D-Day vet's tale parallels mortgage meltdown

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D-Day vet's tale parallels mortgage meltdown - Mortgage Mess- msnbc ...

Updated February. 17, 2009

The story of Raymond Vargas, facing foreclosure on his home of nearly 40 years, is in many ways the Cliff Notes version of what has happened to the American economy.'s ...

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D-Day vet's tale parallels mortgage meltdown The home you save could be your own ... Despite that logic, some agents still find it hard to persuade ...

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D-Day vet's tale parallels mortgage meltdown America’s 10 most miserable cities ... "Don't leave your home," she said. "Because you know what? When those ...

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Updated March. 19, 2009

D-Day vet's tale parallels mortgage meltdown The home you save could be your own ... While short sales and REO homes are often listed and advertised for ...

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O - wrote:
Good find!  I sure hate to see them picking on the elderly. Looks like they picked on the wrong  one this time,, Lo//.

You Go Dude!

Thank's for posting this.
 Can't wait to see more of this, it should be against the law for them to operate. WTF?
When this all state my heart was working 15% and I was in and out of the how hospital.When we went to count about about getting us out,I told Counrtywides Lawyer and the Judge that I was going to have heart that we wouldn't be able to get out that soon,that was in Aug, 2008.I sent proof to the loans companies.So in Oct., 2008.I ended with a defibrillator because my heart was stopping.And first part of Feb. 2009 they us out of the house,they had the sheiff there.I WASN'T EVEN HEALED UP YET,my cut got infected.So now where homeless and having a heard time getting a place cuz of the forecloser.
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