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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Extra3/19/2010 10:00 AM ET

One family's desperate fight for its home

The Gentrys sought to avoid foreclosure via a government-backed loan modification. But the company that services their loan has a different priority.  

By MarketWatch

Marianne Gentry, 66, lives with her disabled husband and desperately ill son. And they're about to get kicked out of their home.

Gentry, a customer-service representative for Home Depot, faces foreclosure on the four-bedroom house in Fountain Valley, Calif., her family has occupied since 1996.

Their lender, OneWest Bank, denied the Gentrys' application to have their mortgage altered through the Home Affordable Modification Program, under which the federal government effectively pays banks to help keep people in their homes.

They were originally given until March 9 to clear out, though now a bank executive says the bank is re-evaluating the case and may be able to offer an alternative to foreclosure, such as a short sale or rental arrangement.

If Marianne Gentry's calamitous personal circumstances are unusual, her experience trying to save her home is anything but. Indeed, such stories often have a depressing sameness: bewildered borrowers; a Kafkaesque loan-modification process; indifferent or even hostile lenders.

In 2009, 2.8 million homeowners lost their properties in foreclosure, according to market research company RealtyTrac. Millions more face the same fate this year. Nationwide, one in four borrowers owes more on their home than it's worth, according to the Mortgage Bankers Association.

Part of the blame lies with the federal government's administration of HAMP, which has failed to evolve along with the changing nature of the financial crisis. But most of the problem stems from mortgage lenders and services, which tend to favor foreclosure over other options. In many cases, these companies lose less money by repossessing a home than by easing someone's mortgage payments. That puts servicers and borrowers at odds.

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     At least here in Florida, most mortgage modification attempts are a joke
being played on the homeowner to divert his/her attention away from the
foreclosure action which is occuring at the same time. The objective is to
get the homeowner to focus on the phony "modification" so he/she doesn't
fight the foreclosure.
     In many of these cases, the "pretender lenders" don't have the necessary
paper work to foreclose, so the only way they can win is if the defendant
defaults. This is especially true of BOA/Countrywide actions.
     BOA was forced to take over Countrywide to prevent its collapse. Most
of the Notes and Mortgages got lost in the shuffle, and many of those borrowers own their homes free and clear but don't realize it. BOA scams
them by writing a totally new loan. If one asks to see the original Note,
they will say "don't worry about it, we're reducing your principal by a THIRD!"
 The gullible sheeple are amazed at this "generosity". WAKE UP AMERICA!
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