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 was referred to this "sweet, little old lady" Realtor by my manager who had purchased his house from her. He raved about how great she was and how she guided him through everything like a mom, so naturally we used her because I had no reason not to trust someone that was referred by a person I trusted.

We found the house we liked, and before we even told her she said that she had already found and appraiser and inspector. I didn't think anything of that because she made it seem like she found them to save us time. We decided we wanted to buy the house. We sign a contract that says we can walk away from the sale if there are termites or termite damage, but that was our ONLY clause. Our inspection came back "clean".

We scrounge up enough money to cover most of the closing costs and we get financed. I had made it such a point to tell my broker that I refused to sign an adjustable rate mortgage that he had promised me over and over that it was fixed. Come closing day, I'm sitting at the seller's lawyers office signing my life away and my paper work says that the 80% portion of my loan was an adjustable, while my smaller 20% loan was fixed. I was told that if I walk out I loose all of my money, but that it wasn't a big deal because we could always refinance and get a better rate.

I felt uneasy for a long time. I eventually got over it and started repairing my house. Turns out my inspection was a fraud, I have sustainable damage to my roof that was under reported in the inspection and termite damage that is almost unfix-able, but I don't have termites, just termite damage from a previous infestation. Now here I am a year and a half later with a house on the verge of collapse and I can do nothing. To boot turns out that I never had a copy of my original report, the inspector gave us a copy of a checklist that he used. I didn’t get the actual report until 1 year after the house had been sold to us. We had been badgering the Realtor to get the inspection for us since we could never get a hold of the inspector and she kept putting it off. About a week after the close of the house she quit picking up the phone. I had emailed the inspector several times, but got my response a year later.

This is my tale. The way I see it is at least I’m lucky. If I let this crap house get foreclosed and it will only hurt my credit for 7 years. I’m only 22 so by the time I’m ready to buy a house the right way with a big down payment and revamped credit, I’ll be okay. I just feel terrible for the older people that don’t have the time to bounce back, I guess even though I got screwed like I did it could’ve been worse.

I need a lawyer, but it's little me against this giant company. Even if I got a lawyer, they would probably tell me I'm screwed, I don't want to spend a couple hundred dollars just to have someone tell me something I've known for a year and a half. Before all this, I have never been late on payments for anything and was on my way to establishing really good credit. I've spent so much money just trying to keep my house from collapsing that I can't even begin to think about what's going to happen when the payments jump, since I can't refinance this giant pile of crap.
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Stephen

Great story!  Unfortunately, very common.  That's how real estate works.  That's why we have a world-wide crisis now.

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Moose
Contact your local District Attorney's office. You are most likely a victim of a deliberately fraudulent loan scheme and chances are, you're not the only one in your area.

The collusion between appraisers, inspectors, loan originators and realtors is notorious for creating just exactly the situation you're in. If they did work together, one or more of them has done it before and will continue to do it until they're prosecuted.

Don't wait 'til next week and don't feel bad for the Realtor. If she had no culpability she has nothing to worry about.

Moose

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Kilpez,
I've seen this happen a million times. The realtor is in collusion with the inspection company OR the realtor altered the inspection report.

TO ANYONE OUT THERE WHO IS BUYING A HOME:

NEVER allow a realtor to coordinate inspections.

NEVER allow a realtor to choose an inspection company, title company, lender, appraiser etc.

 

This site hits the nail on the head and should be required reading for anyone buying a house

 

http://www.independentinspectors.org/


Anyone who fails to see this direct conflict of interest needs to STOP thinking about buying houses until they wake the F*** up and include a little concept known as REALITY in their daily living.

You are young and you learned the hard way. NEVER forget this lesson as long as you live.

Would you let a used car salesman test drive a car you are thinking about buying and trust that he will forego the influence of his commission check when he gives you his opinion ??? Maybe in "Whoville" or "La-la land" but not here on the planet earth.

Any success starts with the paperwork you received prior to closing or after the closing regarding the inspections. If you don't have them then get them. Read the scope and limitations of the report. Determine if your state requires licensing of these inspectors and if they are licensed. Do the homework that should have been done before the closing.

In my state termite inspectors have to be licensed and are regulated by state law but home inspectors do not have to be licensed and are regulated by NO ONE.

You may not have a legal matter that will hold up in court (and then again you very well may have a good case) but there could be some state regulatory issues that could create some serious heartburn for the realtor and her cronies.

I do have many years as an "industry insider" under my belt with this kind of thing so if you want to email me the particulars I can try to shed some light on the situation as to where you should start and which cages to rattle first. 

Good luck and sorry if my lecture stung a little.
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