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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The Equitable One
This is a step in the right direction, but...

I am troubled by this comment, in the 5th paragraph, "If they can’t, then mediators could reduce the loans significantly, allowing struggling homeowners to stay put."

Why only a significant reduction? If they can't produce the instruments then why should they be paid at all?

Still, a step in the right direction.

http://www.lasvegassun.com/news/2009/jun/02/whos-holding-your-note/

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Moose
The Equitable One wrote:
*snip*

Why only a significant reduction? If they can't produce the instruments then why should they be paid at all?



Because, as your name implies, courts are "equitable" in function, meaning people shouldn't get a free house, even assuming they've been screwed out of tens of thousands of dollars. They should indeed get the tens of thousands plus court costs, plus attorney's fees plus any statutorial relief and even punitive damages, but only in rare cases will that reach or exceed the value of the property.

Consider what happens in a TILA rescission - both parties are set back to square one as if the loan never existed. If you still want to keep the house you have to come up with the money for it (typically come to court with another bona fide loan offer). They have to pay you back anything you've paid them, but the property goes back to them until the new closing occurs.

The technicalities of standing are finally helping to demonstrate how "the system" has been slanted in favor of the foreclosure mills. They'll fix their problems or they won't be able to foreclose. In some cases, those fixes will probably include some other slimey, fraudulent and conspiratorial behavior among two or more persons, and hopefully, the conspiracy angle will attract the attention of law enforcement when they come back into court with forged documents.

I think we'll be seeing more stories about people living in houses without making any payments for long periods of time.

Moose

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any

We have been living in our house for over a year without making payments. We surrendered our home a year ago and have not been served papers at all. We are trying to move, but are in chap. 13 bk and no one wants to rent to us because of bad credit. I hope we will be able to stay here for a while.

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The Equitable One
I understand your point Moose.

Still it seems that if money is owed as a result of the instruments then it is owed only to the party entitled to collect on or enforce the instruments - owner and holder. If it cannot be determined who the owner and holder are then how can payments reasonably be made to anyone?

Paying anyone else, even while they are attempting to assert a claim... Well, without being a holder of the instrument itself paying anyone seems to be without merit.

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