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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I am absolutely devastated!

I have been working on a loan modification with Chase since earlier this year. NACA was helping with it. NACA and I just found out yesterday that Chase sold my home a week ago - right from under my feet.

I did get a foreclosure notice back in February but that was put on hold due to the loan modification. Chase made an offer to me in August but I didn't like one or two of the terms so they were going back to rework it.

Now they have sold my home - or what was my home. I received no notice of ANY kind. No letters, no calls, nothing pinned to my door, nothing from foreclosure attorneys. NOTHING!

What can I do?

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JohnH
Seems to be normal procedure for Chase, see below,

http://ssgoldstar.websitetoolbox.com/post?id=3820698

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I looked at that already.

Is there anything I can do? Surely it's not legal and surely the original homeowner has some rights when it is done without any notice whatsoever.

I forgot to mention the state - Michigan.

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This is not legal advice.  Michigan has both judicial and non-judicial foreclosures and the right to redeem.  You need to be at the court house the minute they open on Monday and pull everything on file regarding the foreclosure and give it to whoever you are working with at NACA.  NACA members are typically lawyers.  Hopefully the sale was judicial and has not yet been ratified by the court. 

 

NACA will need to file something based on the fact that negotiations were underway and an agreement was near.  If nothing else they were dealing in bad faith by proceeding with the foreclosure, which could be a cause of action to put the breaks on the sale.  More then likely they bought the property back rather then have sold it to a third party.  Hopefully your NACA contact has the modification process well documented.

 

HANDY LINK:  http://www.foreclosurelaw.org/Michigan_Foreclosure_Law.htm

 

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Michigan Foreclosures
The problem with Michigan is that unless the mortagee sued you to enforce foreclosure, the non-judicial foreclosure in that state requires nothing more than adverstising a notice of trustee sale for 4 consecutive weeks.  I can't find anything that says the trustee is required to serve you personally.  Seems odd.

Anyway, MI does have a right of redemption, presumably to offset the lousy notice required to foreclose.

You should be talking to an attorney or a local legal aid organization before your redemption period runs out if it hasn't already.

The redemption period in MI is based on the about of the original mortage and the dollar amount of the default.  You will need to verify your own data but it is usually 6 months to redeem and can run up to a yaer or as short as 30 days if the property is abandoned, i.e., you moved out.

Hopefully this period has not already expired.  If the redemption period has expired the trustee will most likely file and action to evict you.

Don't waste any time - the clock is running.





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Thanks. They only sold it a week ago. I guess that means I have six months. It just seems that it would be illegal that they can do this with no notice. And to do this in the middle of a loan modification process???????

I've been working with NACA and when I talked to them Friday evening (the time they found out, too), they said they would get their auction team on it first thing Monday morning. They will call me prior to 10 am Monday (so I was told).

I don't know how much NACA can do or if I need to get an attorney of my own on it, too.

I am so sick of all these banks and their BS! You'd think if they are required to post the sale in the papers for 4 weeks, they would at least let the homeowner know, too. That doesn't seem right to me that that is acceptable in the law.

I wonder if it would do any good to blast this to the newspapers and TV! I'm ready for a fight. I just don't have the funds to back it.

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By the way, if the foreclosure is rescinded, does that mean that the foreclosure is backed out or does it mean that I have to refinance somewhere else to buy back the home?

Five years ago, before the value of homes fell, this place was worth $185K and now it's worth about $100K. I owe $140K. Don't know if this helps.

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I just went to my county's online property records site but, naturally, the site is not working! Makes me wonder if it's deliberate.
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I found out today that it was a third party who bought my home. Chase did not buy it back itself.

I am trying to be cautious about what I write now for obvious reasons but, based on the knowledge I have gained so far today, this could be BIG trouble for the bank!

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anon
Dear Devastasted

First of all hang in there. My advice unsolicitated would be to try and find an attorney in addition to the help from NACA. I was trying to refinance away from countrywide when they served me and they knew it. Four years later... i realized that they had sold my note which was why they did not want to refinance.The third party is probably some agent of Chase. Second, more than likely your note has been sold. Your homework begins. Become familiar with the SEC. Good luck. Make them produce the note. Second know that if you sign a loan mod that resets the clock on your loan and makes everything else go away so make sure that if you do a loan mod that other things are alright with your loan ie your payments have been applied correctly.
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Sara
So sorry to hear of this situation.  And since you aren't using your full name here, it is safe to state what is going on since there are thousands going through the same thing everyday in MI.  It would be a futile attempt for a bankster to point the finger at one person when they are screwing over so many at one time.

I found in my research that many banks hire an individual to buy the property at the auction.  When you look at who the mortgages were with and who bought the properties (at auction) over a year, the pattern of names emerges.

S
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The entity that purchased it is in the name of a small business which is really a property investor hiding under the small business name.

I am having trouble getting callbacks from attorneys. I also need an attorney who "gets it" according to Living Lies. Can anyone recommend one in S.E. Michigan?

I am on the cusp of contacting media but don't want to do it before I have an attorney's advice.

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Sara
Actually, the media might be able to do more than an attorney.

People who have had problems with bank card fees, bounced check fees...have been contacting the TV stations with their problems.  It seems the media loves getting involved and the banksters HATE it.

S
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You need to do what someone else said.  Go down to the courthouse and get copies of everything.  Then take a look at your recorded mortgage.

Read every line in it!!  Specifically the information on default.

While Michigan law does not require lenders to give notice of default, your mortgage probably does!  If you didn't receive a notice of default, the sale is void.

The mortgage also dictates how a borrower can stop the foreclosure (paying, etc.).

Was there a notice published on your property?  Did they attempt to put one up and you took it down?  Was it way back in February?  According to the info I read they must also publish the notice on the property in addition to publishing it for 4 consecutive weeks.

Here is the link where I read this info.  While its not statute, its a starting point!!

It looks like, based on the info you provided, you have an excellent chance of voiding this sale.

But seriously, go get copies of everything.  Verify whether, per your mortgage documents, you were supposed to receive a Notice of Default.  If so and you didn't, that right there can void the sale.

If they didn't advertise like they were supposed to (this info should be at county but go to the library and physically LOOK at the listing to verify it was actually advertised), that too could void the sale.

If they didn't post on property, that too could void the sale.

According to that new case won on appeal in MI, that should be a whopper of a helper too!!!!

Here is a link to "Law of Voids" regarding void orders, decrees, judgments, etc.  While your situation doesn't involve a judgment, it might give you some enlightenment about case law and how MI judicial system works.  Read the beginning.  It has federal case law in it.  Then scroll down to MI and read that.

http://www.libertyforlife.com/law/law_of_voids.htm


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Sirrowan - Thank you.

I have "interviewed" one attorney already who handles this sort of thing. He said before he even delves further into the case, "hands down, they (the bank) broke the law". I am afraid to mention too much because the damned trolls are everywhere.

I have an appointment with him next week but I am still interviewing attorneys. I want to be sure I find one who "gets it" according to Living Lies and one who is a fierce litigator in court because I am going after these crooks big time!

They sold my home with NO notice, NO reason, in the middle of a loan modification, and for a mere pittance.

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If you feel comfortable, pm me on the, ya know, other board, lol.  I'm dying to know what they did wrong.  And I won't spout it off either.

My nose is KILLING me!!!
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Sara
You will find that in most mortgages and modifications the law is broken.  It happened to me and so many others that participate in this forum.

I hope this attorney will be able to help you.

good luck!

S
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arkygirl
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The problem with Michigan is that unless the mortagee sued you to enforce foreclosure, the non-judicial foreclosure in that state requires nothing more than adverstising a notice of trustee sale for 4 consecutive weeks.  I can't find anything that says the trustee is required to serve you personally.  Seems odd.


The country is rife with these kinds of nonjudicial foreclosure "laws". I suppose at the time that the laws were enacted the legislators took for granted an honest society. They could not foresee that America might degenerate into a country run by scammers, but here we are in our declining republic run by crooks who are enabled by our elected reps.

So what is to keep me, for instance, from quietly posting this notice in some teeny-tiny newspaper in Podunkville, MI and foreclosing on anyone's home? Evidently I wouldn't have to have an interest in the property, just the funds to post this four week ad. Once the "foreclosure" was secured it could be entered into the public record and I would now own this home.

And since I would have no interest in holding that home or living in that home, what would prevent me as legal owner of record from simply deeding the home back to the current occupant and having that entered into the public record? Wouldn't my "foreclosure" wipe out all of the other claims and clear the title?

What would the State of Michigan say about my foreclosure action? Would it be upheld since it was conducted within the current legal structure?

These laws a rat's nest with all sorts of possibility for fraud. They make people who own their homes outright very uneasy.
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4 Justice Now
Arkgirl:

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The country is rife with these kinds of nonjudicial foreclosure "laws". I suppose at the time that the laws were enacted the legislators took for granted an honest society. They could not foresee that America might degenerate into a country run by scammers, but here we are in our declining republic run by crooks who are enabled by our elected reps.


How very true in deed.

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So what is to keep me, for instance, from quietly posting this notice in some teeny-tiny newspaper in Podunkville, MI and foreclosing on anyone's home? Evidently I wouldn't have to have an interest in the property, just the funds to post this four week ad. Once the "foreclosure" was secured it could be entered into the public record and I would now own this home.

And since I would have no interest in holding that home or living in that home, what would prevent me as legal owner of record from simply deeding the home back to the current occupant and having that entered into the public record?


Very creative my friend. I like it.

V/r,

4J
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