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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from Home Equity Theft Reporter - Wednesday, March 12, 2008
Attorney Says Producing Mandatory Paperwork In Foreclosure Actions "A Gigantic Waste Of Time"

Bloomberg News ran a story last month on the difficulties foreclosing mortgage companies are facing by their inability to produce the mandatory paperwork in court when initiating a foreclosure action. The following excerpt caught my eye:
Requiring banks to produce the paperwork at a foreclosure hearing is a nuisance, said Jeffrey Naimon, a partner in the Washington office of Buckley Kolar LLP. "It's a gigantic waste of time,'' Naimon said. "The mortgage may have transferred five, six, eight times. It's possible that you don't have all the pieces of paper, but it was enough to convince the next guy in the chain. There's no true controversy over whether the owner owns the loan.''

What needs to be pointed out to anyone harboring this belief is that when the debtor/homeowner pays the loan off in full, he/she is entitled to physically receive his promissory note back, and is to be marked "cancelled" by the creditor. Simply receiving a satisfaction of mortgage, while enough to clear the lien from the title to the home, is not enough to actually cancel the debt evidenced by the note. By not having the promissory note returned, the debtor/homeowner is legally left in a position where he/she may have to pay off the note a second time if the note (known in the law as a "negotiable instrument") turns up in someone else's hands and is presented to the debtor/homeowner for payment.

I trust that in attorney Naimon's case, above, he was either misquoted or had his words taken out of context. I say this only because any attorney handling foreclosures for lenders who actually asserts the position expressed in the above excerpt and believes the lender can obtain payment on a promissory note without any corresponding obligation to physically possess the note and be in a position to surrender it to the debtor/homeowner upon full payment is either clueless, willfully ignorant, or being intentionally deceptive as to what the requirements of law are in a mortgage foreclosure action.

For the article, see Banks Lose to Deadbeat Homeowners as Loans Sold in Bonds Vanish.

For other posts that reference the sloppiness and carelessness of some mortgage lenders and their attorneys in the physical handling of the mortgage loan documents when bringing foreclosure actions, see:

Missing Loan Documents Stall Mortgage Foreclosure, and
Foreclosures Stalled By Missing Loan Documents. missing mortgage foreclosure docs alpha
posted by Home Equity Theft Reporter at 7:55 AM

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With some of these bad loans originated by these predatory financial lenders, i.e. adjustable rates, all interest loans, balloon payments, negative amortization, and etc.  In which most of these were geared to fail ending in foreclosure only to flip properties back on the market for twice the amount.

The whole thing is a racket!  That's why they file copies and also, file lost mortgage notes.  They never intended to produce any original documents.  Just continue to sell and transfer our mortgages in a maze of loan pools. 

As you said Nye, most of them don't even have or know were the original mortgage notes are.
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Oh They KNOW

NO NOTE IS LOST, period.

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Thank you for the information, very helpful!
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Thank you for posting this home was foreclosed on in January 08, the lender according to the registry of deeds was Long Beach MortgageDeutsche Bank is listed as the trustee only on the foreclosure deed not on the note, so was it legal for them to initiate the foreclosure?  Thanks in advance.
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H. Gosh
A cautionary note to all Pennsylvania residents:

Our leaders in Harrisburg have declared that a NOTE is not needed to foreclose on property in the Commonwealth.  A MORTGAGE is the only instrument needed to proceed with a foreclosure.  Then, to add insult to injury, the holder of the note, even if a separate entity than the holder of the mortgage, can come in and seek judgment for payment of the note. 

Yup, you got it - double jeopardy!!!!!
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With all the foreclosures and people losing their homes because of deceptive loans and mortgages without adequate underwriting, we need to make sure that Congress passes a bill that will really protect folks from bad home loans. I took action, and I hope you will too.

Ask the Senate to pass S.2452 to set lending standards

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