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 don't agree with Class Actions.. As I have said before in other posts, "Only" the lawyers make out, not the consumers. Because in the end, everyone has to split what is left over, and that is not much.

If I were any one of you consumers thinking about this class action, I would for sure opt-out. So keep your eye on the dates. Because after the date passes for you to opt-out than you loose. You will not be able to sue.

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William A. Roper, Jr.
In general, I would second cmc's skepticism about the merits of class actions.

NO ONE will ever get their house back in a class action.  POSSIBLY, in the best case, someone who has lost his house might end up with a few hundred dollars that they wouldn't have otherwise received with a minimum of expended energy and out of pocket expense.

The attorneys bringing the suit will profit handsomely.

The perpetrators of the fraud will end up with immunity through res judicata.

Anyone who wants to keep their home needs to stay away from these people!  For those who have already lost their home, there might be a few dollars in the suit for a nice family luncheon at an inexpensive fast food restaurant!
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If I were any one of you consumers thinking about this class action, I would for sure opt-out. So keep your eye on the dates. Because after the date passes for you to opt-out than you loose. You will not be able to sue.

My wife was once part of a class action suit with Wal-mart.  She work for Sam's Club 8 years ago and they got sued about employee breaks.  We took our 150.00 and moved on.  I'm sure the attorneys received millions.

It didn't seem to me that this would be the same situation.  Wouldn't a homeowner that felt they had a similar claim against LPS HAVE to voluntary join the class action?    If I didn't join because I felt my situation was different than what is claimed in the class action would I still be barred by res judicata?  How can they possibly notify all the people that had documents prepared by LPS of the class action suit?

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William A. Roper, Jr.

Frankly, I have made very little study of class action law.

But bear in mind that with respect to the various actionable causes of action which might be maintained against corrupt mortgage servicers, foreclosure mill law firms and LPS, getting judgments set aside is UNLIKELY to be any part of such a class action.

In judicial foreclosure states, when a court enters a final order and the appeal period runs, the judgment usually becomes final and unappealable.  The trial court typically also loses jurisdiction to alter or even vacate its own orders, except in certain  circumstances.  These special circumstances are set forth in the state equivalents to Federal Rules 59 and 60.

After the final order, FOR SOME LIMITED PERIOD OF TIME, a party can move to set aside a judgment for fraud, perjury, forgery and several similar kinds of issues.  But this requires PROOF of these misdeeds and the burden is on the movant defendant.

Moreover, in MANY, MANY cases, the plaintiff obtained judgment by default.  And in these default cases, very often the plaintiff never even needed to PLEAD the fabricated evidence into the record.

Once the appeals period runs, it is exceptionally difficult to get these judgments set aside.

No class action lawyer is going to take on this kind of a proof threshold on behalf of a class.


By contrast, in a non-judicial foreclosure state, very often the borrower NEVER has a day in court in respect of the validity of title with respect to the substitute trustee's deed.

In these instances, if the deed conveys no title, as MAY now be the case in MERS cases in Michigan, the buyer of the property has a deed and title conveying NO INTEREST AT ALL.

On the other hand, the foreclosing entity can DO A NEW PRIVATE SALE.

The dispossessed borrower probably has a pretty good cause of action for abuse of process in the bringing of the false ejectment action, depriving the borrower of possession of the premises, etc.  But if each litigant had to sue the mortgage investor or servicer, this would be uneconomic.

Those borrowers who lost their homes in Michigan to an MERS sale 5 or 6 years ago MIGHT just get a FREE HOUSE.  The limitations period to bring a NEW private sale MIGHT have run.  Those who lost their house last week will probably find that a new sale will be conducted well before a class action suit can make it through the courts.

A class action in the judicial foreclosure states would have to allege some various torts and injury and show a basis for recovery OTHER THEN overturning the judgment.

Class action suits in the non-judicial foreclosure states will ultimately probably be over loss of use of the property in respect of illegal foreclosures.

Class actions really DO have their place, NOT in foreclosure defense, per se, but rather in recovery of smaller damages across a larger class where it would be uneconomic to bring suits individually.

But anyone expecting to get their home back is in for a sore disappointment!
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