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 have been dealing with my servicer since May 2008 for my second mortgage. After sending a RESPA letter to them via email, they called me within two hours. "AMAZING"

My settlement offer was .10 on a dollar. After many emails on my part I was just ignored. After reading about RESPA and TILA laws, I decided to send one to each of my mortgage companies.

Well, what my second sent me was not a settlement letter it was titled: SHORT SALE, CONTINGENT APPROVAL. I am not selling my home. I want to give them the money to release me from the debt. Shouldn't this contract be some kind of settlement contract instead of a short sale????

I haven't signed anything yet. Especially since I am waiting for my first to reply. I also offered them a settlement. I also sent them a RESPA.

Any opinions or suggestions????
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Nye Lavalle
A short sale is industry parlance for paying less or a "discount" on your current principal balance!
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My understanding of a short sale is (I may be wrong, I am just learning all of this) that you can not afford the mortgage payment any more and you put your home up for sale and the lender will take a short sale from the new buyer at a lower dollar amount that is owed.

My question is: Can my lender have me sign a short sale agreement with me? If so then I guess that I will have to pay them the monies they are settleing for. "Is that normal?" or is it supose to be a short sale with someone else?
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BT
A short sale is when the home is sold to another for less than it's mortgaged value.

It sounds like they are suggesting that you find somebody to buy the home. In todays market- they understand that a short sale might be the only way to sell. If they really wanted you to continue on- they would offer a modification.
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Since May we have been trying to settle with them. I have faxes and emails going back and forth in reference to a settlement for ten cents on a dollar. After a few months no one would return my phone calls or emails. Finally I sent them a RESPA notice and they got back to me by email and phone within two hours. I told them to put the approval in writing. I received it by email titled: SHORT SALE, CONTINGENT APPROVAL. The price is just about ten cents on a dollar. I owe them $88,000. and their approval is for $10,537.15. We never spoke about a short sale. I think that they are trying to pull a fast one.....What started this whole mess is the defective construction on my home.

I also had the same negotiation with the first mortgage. Same thing happened. I have faxes and emails. All of a sudden no more communication. I just served them with the RESPA letter also. I am waiting to see what is going to happen with them.

So again, a short sale is for a whole different party to buy the home at the agreeded price????? Is that right?

The other thing I am worried about is if this servicing company takes my 10K, don't I need to know who owns my note?? So that no one down the road will knock at my door and say "Hey, you owe me 88K.?
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What needs to happen is, you give them the money and they file a “Release of Mortgage” and/or a Lien Satisfaction (I am not a lawyer, can you tell) True, a short sale does normally mean that you are selling your property to a third party for less then what is owed and the lender agrees to accept the lesser amount in full satisfaction for the loan.

 

You have a house and 70-grand at stake here, I’d sure suggest you hire a lawyer.

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JohnQ
Can you provide where you got a copy of a RESPA letter?  the form, content, what to say, etc..  Where a sample one is on the net?

JohnQ
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John Q: I can provide, email me.

Way To Go
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JohnQ,

Good Luck. I hope the RESPA letter helps you..

cmc
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RESPA letter
Here is a RESPA letter. See the bottom of the page. http://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea10.shtm

It and other usefull information is available in the MSFraud Law Library.
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4 justice now
cmc:

A short sale is just as Nye described. As it can be an agreement between borrower and the lender/owner of the note to accept less money than the current principal balance of the loan.

The majority of short sales are not an agreement between the lender/owner of the note and borrower, but instead is an agreement between the lender/owner of the note and a third party, after the original borrower becomes unable or is not permitted to make their payments to the lender or servicer.

I wish you the best of luck!

R,

4J
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