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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Fight Foreclosure: Make ‘Em Produce The Note!

For video aficionados, there is a short video called Fight Foreclosure: Make ‘Em Produce The Note! that is floating around in cyberspace. Nothing technical; don't know who made the video; but I got a kick out of it. It's a "must see" video, in my judgment, for anybody currently facing foreclosure, or who may be in the future. I stumbled into it from a link on the home page of the website of Tampa
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Nice find LADY DI  

The Home Equity Theft Reporter

Monday, September 17, 2007

Two Unsatisfied Homeowners vs. Fairbanks Capital; One Claims Home Sold Out From Under Him; Other Files $13.5M Racketeering & Corruption Suit

A story from the West Coast features the mortgage servicing company accused of predatory practices formerly known as Fairbanks Capital Corporation (now known as Select Portfolio Services - "SPS"). The East Bay Express (San Francisco Bay Area) tells the story of a local man who lost his home to foreclosure on a mortgage that was being serviced by Fairbanks.
The story describes the experiences of the Bay Area homeowner who lost his home that had been in his family since 1911, when his maternal grandfather bought the property, and that he ultimately inherited. According to the homeowner, the mortgage servicing practices engaged in by Fairbanks was the cause both of putting him into foreclosure and of the ultimate losing of the long time family home. From the article:
  • [The homeowner] is still deciding whether to proceed with a lawsuit against Fairbanks/SPS. Lawyers are typically shocked when they hear his story, he says: "First they don't believe it. Then, when they see exactly what happened, they [still] can't believe that this happened. And then we are being advised, 'You have a case that you can win hands down, but it's going to cost you a half-million dollars in legal fees to win it, so you might want to cut your losses and run.'"
Included in the article is a reference to another Fairbanks "customer" - one who has sued the company for its practices. Mike Dillon also had his experiences with Fairbanks when it attempted to foreclose on his Manchester, New Hampshire home in 2003.

He successfully obtained a permanent injunction preventing Fairbanks / SPS from taking any further action to foreclose on his home. In June, he took the next step and filed a racketeering and corruption suit to the tune of $13.5 million against Fairbanks / Select and five other companies connected to his mortgage.

For the whole story, see Stolen Property? (An unscrupulous mortgage-collection firm sold Jim Hultman's Berkeley home out from under him, leaving behind a feud and an eyesore).

See also this message board on this story.

For more on Fairbanks Capital Corp. / Select Portfolio Services, see Mike Dilllon's website, GetDShirtz.com.

For information on predatory mortgage servicing, generally, see the Mortgage Servicing Fraud website.

There have also been several complaints referring to Fairbanks/SPS appearing on Ripoff Report:

Go here , go here , and go here for posts on questionable mortgage servicing practices. questionable mortgage servicing practices tactics zebra

Fairbanks Capital Screwing Mortgage Lender Too, Says Lawsuit

The mortgage servicing company formerly known as Fairbanks Capital Corporation (now known as Select Portfolio Services - "SPS") appears to have gained much of its notoriety by being accused of screwing individual homeowners through alleged predatory mortgage servicing practices.

However, at least according to the allegations contained in one lawsuit filed in an Austin, Texas Federal Court, Fairbanks has also been alleged to be screwing the owners of the mortgages held in one securitization pool that it services. Some of the allegations involve Fairbanks' conduct after the ownership of a consumer's home is acquired through foreclosure.

Among the allegations are: (1) self-dealing in connection with money it indirectly received (ie. kickbacks???) for real estate commissions, commissions on "force placed" insurance, property inspections, and broker price opinions; (2) allegedly setting up what the lawsuit describes could be straw or dummy companies for this purpose (see Plaintiff's First Amended Complaint - page 18, paragraph 38), and (3) "manufacturing" homeowner defaults, thereby driving homeowners into foreclosure.

In addition, the lawsuit alleges that, when selling foreclosed property ("REO"), a compensation arrangement was set up between Fairbanks and the real estate broker that, with respect to property in the $70K to $120K range, "[n]either the broker nor Fairbanks had any incentive to sell REO property for more than $60,000.00, demonstratably leading to fire-sale prices when the objective appraisals before and after the sale supported a much higher price." (see Plaintiff's First Amended Complaint - page 18, paragraph 39; and also footnote 4 contained therein).

A summary of these points and the names of the entities allegedly set up and controlled by Fairbanks / SPS can be found on the website, GetDShirtz.com (beginning about a third of the way down the page).

For a copy of the entire lawsuit containing all the allegations and a description of how Fairbanks / SPS allegedly structured their business transactions in the conduct of their mortgage servicing business, see Ellington Credit Fund, Ltd. vs. Select Portfolio, Inc., et al. (Plaintiff's First Amended Complaint - 19 counts - 52 pages, 2.35 MB approx.) - available online courtesy of Michael Dillon and GetDShirtz.com.

Go here for other posts on the company formerly known as Fairbanks Capital Corporation.

Go here , go here , and go here for posts on questionable mortgage servicing practices. questionable mortgage servicing practices tactics zebra
For consumer complaints referring to Fairbanks Capital/Select Portfolio Services appearing on Ripoff Report:

 

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Ooop's I sent it to soon, I meant to ad it was nice that they added a link to this forum.

I found Mike's story with in the link LADY DI gave about ''NO NOTE'' video.    It's to bad some one ran him off. Alleged Predatory Mortgage Servicing Practices I
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