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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Hello Everyone..
     I am not sure if I have come to the right place or not, but I am trying to gather as much info as possible, so that I can make an informed decision about the path that I need to go down.  So, I will make my story as brief as possible, and if anyone has any suggestions, please, let me know.

    In 10/04 I purchased my home with my best friend.  It was a deal to get me into the house because I did not have the income to support it, and my now hubby was going thru a NASTY divorce.  Once everything settled down on my hubbys end, we refinance in 8/05 into just mine and my hubbys name. 

    In Feb 06, we refinanced again, to make a much needed home improvement that we simply could not afford.  Now I know that was the biggest mistake we ever made in or lives.  We got our loan thru CFIC home mortgage, and the loan was funded by Fremont Investment Corp

  Approx. 6 months later, we had to start paying HomEq servicing.  Mind you, this was a 2/28 ARM, with a 9.95% starting interest rate.  In July 07, we began our quest to refinance, as we knew our rate would adjust in Feb.  We did the appraisal, etc, and the broker told us our loan was already done, but there were a few things that needed to be paid off prior to closing, so we did that. 

   Well, come Sept 07, for whatever reason the loan fell thru, and we could not make our mortgage payment.  I immediately contacted HomEq to see what they could do.  (for whatever reason, homeq paid our property taxes for us, which jumped our payment 1,000 per month).  They told us there was nothing if we could not afford the new repayment plan.  I didn't take that for an answer.  I called the 995 hope line, that was a joke.  I went to a HUD approved counselor, and the lady from homeq was nasty with her as well.  So, since I couldn't get anything resolved with homeq, I searched and found the CEO's direct phone number.  So, I called him.  (mind you, this is now 10/07).  He was awesome!  I told him I needed to do something to get the rate fixed and help with the escrow, he said he didn't see a problem, and would have someone from that department contact me. 

About 2 weeks later, a woman from the escrow dept. called me.  They put my negative escrow amount into a "recoverable advance" account, and she said it was something that would have to be paid, but would not be tacked onto my monthly bill, GREAT!  She said someone would contacting me from loss mitt. soon.  Well, loss mitt. contacted me Nov 9.  I purposed money down, and asked for a fixed rate, and consideration to drop it from the 9.95%.  I faxed all my info, etc, and was told I should hear from them soon.  I have called weekly, sometimes daily and everytime I called, no one had an answer.  Finally, I remembered the womans number from the escrow department and call her 1/4/08.  I asked her if she could tell me what was going on.  She looked at my acct. and told me my loan mod was denied on 12/31/07 for not meeting criteria. 

Funny how no one calls me, huh?  She told me she was going to put a call into the manager there, and see what happend and get back to me on Monday.  I don't know what to do. 

Here are some basic facts:
I have my NOD letter dated for 1/18/08, and if I don't come up with the arrearages by then, they will accelerate my loan. 
My tila docs were destroyed in a flood, so I don't have them.
I have my hud-1.
I am located in NJ.
I got all the records from my county, and my deed has my FORGED signature on it.  (but it was the first refinance, not my most recent one).
I am at a loss and don't know where to start.

I would like to keep my home, but there is no way I can afford an interest rate that will reset until it hits 16%.

Any thoughts, suggestions, etc would be greatly appreciated.
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I too am dealing with the evilness of this horrid company. The best advice I can give you from experience is whatever you do STAY OFF THE PHONE. You will get absolutely nowhere. You should get everything in writing. I know you said the CEO was "awesome". I can guarantee you that all that he did to you was to LIE TO YOU NICELY. No one at this company will truely help you. They are out for blood. Check out the complaints on ripoffreport.com. When we first started dealing with this company we had sent 2 checks by phone. When they called us to say that the first check did not go through we were told that it had been "duplicated" by a "very nice person." Or so we thought. She lied. Our check was NOT duplicated. We were then sent a letter stating that our check was "dishonored". After complaining to the BBB we were sent an answer completely different. It said that the "account not found". After sending a formal letter called a "Qualified Written Request" it stated that our account was not found due to an incorrect routing number. Yet the number they listed was CORRECT. It was the same one that we have been paying our mortgage on since these moroons got a hold of our loan. We have been threatened and lied to. We have informed them that we will no longer except phone calls from them. Everything MUST be in writing. If you can legally record them in your state then you MUST do this. If not (Illinois residents have to notify the other party that they are recording them) DO NOT TALK TO THEM ON THE PHONE. You absolutelly need a paper trail. You need to keep any and all response from them and to them. If you need information on your account send it in the form of a QUALIFIED WRITTEN REQUEST. There are examples of how to do this. Just google it and  you can get a correct format on how to write one. You have to DEMAND in the letter what you are requesting. Such as your payment history or whatever else you need. You must send everything including your payment to them by CERTIFIED MAIL with return receipt. You may want to demand to know who actually owns the loan since HomEq only services it. Believe me these people have no intention of helping you. If you can possible refinance to get away from them that would be great. If you are like many of us they have ruined your credit to make it impossible to do so. You are in for a fight. Just remember PAPER TRAIL. ALL CORROSPONDENCE IN WRITING. STAY OFF THE PHONE. They will use the phone to lie and deceive.

Good Luck
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tired and tattered:

You should count yourself as fortunate and blessed that you have discovered this message board EARLIER in your distress and in the foreclosure process.  The precise strategy which best serves YOUR interests is dependent upon a number of additional factors which you have NOT posted, nor SHOULD YOU POST on this message board.

While you have been very precise and thorough in posting information related to your situation, frankly you have already posted TOO MUCH detail (see my related post on this topic elsewhere on this message baord).  Happily, the mortgage servicers and their lawyers are actually both LAZY and VERY BUSY right now, so I wouldn't lose sleep over this.  But you need to take any other specifics of your situation PRIVATE and only with those whose persistent posts on this message board leave you completely comfortable that they might have helpful information for you!

Bear in mind that your communications with almost ANYONE other than an attorney are NOT privileged, so be VERY GUARDED as to what you reveal or express in such messages.  Basically, the standard you need to use is whether the message if compromised and discovered would undermine your case.  Everything in your messages to anyone other than your attorney ought to SUPPORT or be generally useful to your case, if exposed.

The very FIRST thing that you need to ascertain is whether there is equity in the house that is SALVAGABLE.  By this I mean not only did you make a substantial downpayment and did you get a good price for the house, but also is the CURRENT MARKET VALUE of the property well in excess of the OUTSTANDING MORTGAGE BALANCE.

Or, alternatively, did you OVERPAY for the house or has it DROPPED significantly in value leaving you in a situation where the mortgage amount EXCEEDS the value.

In making this assessment, you need to bear in mind (a) housing prices are generally FALLING nationally, (b) in a distress situation where you must sell the property in a short period under duress, you may need to DISCOUNT the property BELOW market value to sell it quickly, (c) you will probably have to pay a 6% real estate brokerage commission, and (d) if you have a subprime mortgage, it is VERY LIKELY that you also face a PREPAYMENT PENALTY of something approximating 6 months interest (~ 4% to 6% of the mortgage amount).

When you do this math, you will find that between the falling prices, necessity of discounting, brokerage fee and prepayment penalty, a 20% downpayment may have ALREADY BEEN TOTALLY extinguished.  If your house was NEW CONSTRUCTION or if you OVERPAID for it, you may be in even WORSE shape.  If you put down 10% or less, it is VERY LIKELY that you have NEGATIVE EQUITY.

The KEY thing to bear in mind is that IF there is salvagable equity, immediately putting the house on the market may be your very BEST strategy.  If there is NEGATIVE equity in the property, a variety of other alternative strategies may be superior.

You DO probably have a little TIME.  I would particularly call your attention to the message thread in this Forum with subject "What is the timeline/process of a foreclosure?".  My post therein of 12/18/07 at 08:36 PM  shows the Freddie Mac foreclsoure time standards for all states.  While these are probably NOT binding upon YOUR mortgage investor, these time standards reflect the legal realities of alternative jurisdictions.  At 300 days from institution of foreclosure, New Jersey is at the LONGER END of this time scale.

This has TWO IMPLICATIONS.  First, you have a bit more time than many to find a basis for workout.  Second, the LENGTH of the foreclosure process in NJ makes some sort of loan workout or modification MORE ATTRACTIVE to the Lender than in places where a foreclosure can be more QUICKLY and LESS EXPENSIVELY accomplished.  Compare, by contrast, the time standard in Virginia, where the time to foreclose is shown to be 60 days.  Bear in mind that the times in the column to the right reflect the time from institution of foreclosure.  You will see that the total time from date of delinquency is MUCH LONGER.

There was a recent story in the WSJ about the twelve years that RIchard DAVET has spent in foreclosure litigation.  Those who FIGHT and FIGHT EFFECTIVELY can forestall or avert a foreclosure for much longer periods of time.  I am NOT encouraging you to do this.  WHETHER you should fight depends upon a variety of things, including the validity of your possible defenses and counterclaims for origination and/or servicing fraud, your circumstances, your resources and your ability to manage your own litigation with or without an attorney.

While you have already approached the mortgage servicer seeking a workout, you need to understand that the servicer and mortgage investor probably NEVER INTENDED to even CONSIDER modifying your loan in any way.  By holding out this prospect and having you APPLY, the mortgage servicer has RENEWED its information about YOUR EMPLOYMENT, YOUR FINANCIAL CIRCUMSTANCES, ETC.  This information will now be used AGAINST YOU both in the foreclosure and in any subsequent actions to recover a deficiency!  Information you furnished honestly seeking a workout may constitute PROOF against you as to your delinquencya and default!

You need to immediately SWITCH GEARS.  You OUGHT NOT be TELLING the servicer ANYTHING.  You should be SEEKING INFORMATION and seeking this information IN WRITING.

As you approach your problem, you also need to bear in mind that now that you have fallen into DEFAULT, that the Lender is going to continue to assess various TRASH FEES to your outstanding balance.  The amount you owe will be EVER INCREASING.  Any amounts you give them will now be applied to additional invented penalties of ALL MANOR and NATURE.

Consequently, even if your goal is to EXTRACT your equity, you very well may find it to your advantage to STOP PAYING ALTOGETHER.  I am NOT advocating that you do this.  Rather, I am suggesting that you need to carefully assess your circumstances and situation.  Any money that you DO pay ought to be in consideration of an EXPRESS AGREEMENT as to the amount owed and HOW THESE AMOUNTS are to be applied.

To the extent that there was FRAUD in the origination or the closing, you may have a right of rescission under RESPA.  You may WAIVE that right in any workout.  You may WAIVE your opportunity to plead and prove this fraud by SELLING rather than litigating, but in general it is BETTER to avoid litigating.

Intuition would seem to suggest that those with the best circumstances and best prospects of overcoming their financial distress would be the best candidates for workouts.  Actually this is NOT the case!

If there is plenty of equity in the house, the mortgage servicer and mortgage investor will RUSH to foreclosure.  They are going to get their money IN FULL including ALL of their INVENTED fees from the distressed homeowner with substantial equity.

It is in the circumstance that there is significant NEGATIVE equity that the mortgage investor has the greatest incentive to find some accomodation.  In that circumstance, a foreclosure means the REALIZATION of losses that might be minimized or avoided by reaching some loan workout agreement.  If the mortgage servicer and investor cannot get the full market value out of the house and cannot quickly SELL IT (housing prices are DROPPING and marketing times are lengthening), allowing you to STAY in the house longer, paying them SOMETHING is more attractive than a sooner foreclosure.  But do NOT be deceived that this is a means of KEEPING the house.  UNLESS you have a written forebearance or loan modification agreement, the scam is to ALLOW YOU to stay and PAY and then just to foreclose LATER when the market seems BETTER to THEM.  So do NOT be deceived into thinking that you might be able to CATCH UP or to CURE.  Most likely, they will take EVERYTHING you can and will pay and MORE and then ultimately foreclose anyway!

So get any ideas OUT OF YOUR HEAD that if you just make a few good faith payments which reflect you ABILITY that the mortgage investor and mortgage servicer are going to take some charity on you.  If you are looking for CHARITY, go to CHURCH.  The mortgage servicer and investor are going to pursue the strategy that they deem to be in their best interest and maximize their cash flow and PROFIT.

The mortgage servicer and its employees and officers are NOT your friends!  If you need a friend, get a DOG!  If you need to discuss your distressed financial curcumstances with a PERSON, see a therapist.  If you want meaningful help with your foreclosure issues, you are at the RIGHT PLACE.

If this all sounds pretty BLEAK, it IS.  But there are good, viable defensive strategies, especially in those states that are judicial foreclosure versus non-judicial foreclosure states.  You should take some time to deliberately SCROLL THROUGH and READ the other posts on this Forum and also to take a look at some of the various other links and documents posted at this site.

You need to very carefully ASSESS the VALUE of your house, look at the specific terms of your alleged promissory note and alleged mortgage, and carefully review your financial circumstanes and position.  There are some strategies that are HELPFUL for persons in serious fianancial distress (e.g. bankruptcy) that are NOT viable for other people of more substantial means and resources.  Even bankrptcy is NOT a very good solution.  It is often just a SPEED BUMP.

AVOID borrowing against revolving credit to satisfy insatiable demands for mortgage payments.  You can take your financial distress and turn it into a financial DISASTER by compounding other debt when you simply CANNOT EVER AFFORD YOUR HOUSE.

AVOID offers of fee-based services to help you with a workout.  These are almost ALL scams.

HAVE AN EXIT STRATEGY!  This means that you need to have some cash set aside how alternative rented housing at the END of your nightmare.  Paying ALL of your money and then some in hopes of redeeming an irredeemable situation is a rather certain path to homelessness and despair.  KNOW WHEN TO CUT YOUR LOSSES.

There is no shame in being BROKE!  The REAL SHAME is in being DISHONEST. 

There are a number of folks at this site who give remarkably SOUND counsel.  Amongst these:  Nye LAVELLE, Moose, Mike DILLON, Ed CAGE, Joe B, and Bishop.  This is just a quick list off the top of my head.  I have no doubt left out a number of very valuable contributors.  Generally, you will KNOW the good advice from the bad when you READ IT and, particularly when it rates a consensus endorsement by some or all of the above.

You will find occasions when we DISAGREE as to how to approach a particular problem.  But you will find a variety of very good answers to a variety of problems developed by discussion, debate and consensus.  When you see compelling arguments made and several of these identified folks coming together in agreement, you probably have a pretty good answer!  There is some very good teamwork to be found here!   
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CORRECTION!
 
The post above was primarily intended for "spydereclipsegrl" rather than "tired and tattered"!
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I do realize that there is more to this than in my post. But I do know that first and foremost that STAYING OFF THE PHONE is the first thing that spyder needs to do. Please do not make me feel like I don't belong here. We all know that the servicers make you feel worthless and like a deadbeat. I didn't come here to get the same treatment as the servicers have dished out. We all know when we get things in writing we are much better off. That's the point I was trying to make. As far as my post goes I could be any number of people because I know that I am not the only one that this has happened to. You need to make sure you are not making us feel downgraded. Sometimes your posts are a bit harsh. I learned from experience to stay off the phone. Long before I came to this board. Yes, I am glad that I found this site, and I do not know nearly enough about this absolutely horrid fraud that everyone here is going through including myself. Everyone needs a place to start and I just wanted spyder to realize early on that the phone is HOMEQ's weapon of choice. I realized this fairly early on but if I would have realized it even sooner I could have saved a lot of anxiety in our lives. While my posts was merely a place to start for someone just beginning the fraud process I realize that many of you may have much more to say on the matter at hand. Those of you that have been dealing with this fraud for a very long time will have more answers. Just don't make us feel unworthy because we do not have all the answers that you seem to have. We all need each others input and help here. Just trying to help. Nearly everyone on here, I am sure realizes that the PHONE is no place to be when it comes to dealing with the evilness of these morons.
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tired and tattered:

I apologize if you interpretted ANYTHING I said as undermining or detracting from your post!  To the contrary, I thought that your previous post was helpful and informative!  I TOTALLY AGREE WITH YOU THAT SHE NEEDS TO STAY OF THE PHONE.  AND I ALSO TOTALLY AGREE WITH YOU THAT SHE MUST NOT TRUST THE SERVICER OR THE SERVICER's REPRESENTATIVES.  These points were well made and articulated by you.

In failing to expressly address these POINTS, I was implicitly agreeing with them.

Any failure to explicitly identify you as a Forum "expert" is similarly casual.  Nye, Ed Cage and I post under our own names.  Moose and Joe B. consistently use the same distinct handles.  Others opportunistically choose handles and some use more than one.  It is VERY HARD TO KEEP TRACK OF and develop confidence in handles that are not DISTINCTIVE.  Frankly, I had thought that "tired and tattered" was descriptive, rather than distinctive and thought that you were essentially posting ANONYMOUSLY.  If I have failed to note and recognize your past posts, I apologize.

In singling out several, I was also DISTINGUISHING these from some recent message board trolls like Susan, who seem to possibly NOT have the borrower's best interest at heart and who seem to possibly be motivated by profit opportunities from victims.  I was NOT suggesting that your own counsel should be discounted!

I am very sorry to have hurt your feelings!
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