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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OK, we have all heard the mantra about how mortgage servicers are not allowed to modify loans to help borrowers due to their "contracts". So, how the heck do servicers do this? It is OK to have a "middleman" taking mortgage payments and investing them on behalf of servicers??

Where do the "real" investors fit into this picture? Has everybody been cheating everybody else all along? How were the servicers able to show a borrower as current when they were not receiving the payments at all? If someone owes me money and decides to pay my Uncle Fubar instead of me, Uncle Fubar is gratified that he now has unearned money and I still do not consider the debt paid! And where is the money now?

This whole issue is becoming more sickening by the is one scam on top of another scam on top of yet another scam. They are even scamming each other. The list of highly imaginative scams grows by the minute.

Help May Be on the Way to Victims of Mortgage Servicer Failure

As I discussed in the September 19th blog entry located on the blog entitled “Consumer Bankruptcy Representation and Developments Affecting the Consumer“, the failure of a Lancaster, Pennsylvania company called Image Masters, Inc. dba Personal Financial Management has endangered the loan status of hundreds of homeowners.  Until it filed for chapter 7 bankruptcy protection in September, Personal Financial Management (PFM) had been attempting to profit from a unique investment product called an “Equity Slide/Wrap-Around-Mortgage program”.

Evidently, this program caused PFM to act as a middleman between the consumer and the consumer’s mortgage servicer.  Homeowners who participated in the program would pay a “mortgage payment” to PFM in lieu of paying their mortgage servicer.  PFM, through an arrangement with the mortgage servicer, would in turn invest the payment.  The product was basically like having a stock market account secured by the investor’s residence.   It worked well for homeowners until PFM went south, taking with it months of mortgage payments.

Many of PFM’s clients have been unsuccessful in their attempts to gain cooperation from their mortgage lenders.  For that reason, State Senator Mike Brubaker of Lancaster County, Pennsylvania is vowing to help.  Senator Brubaker plans to write a letter together with several other lawmakers from Berks and Lancaster counties which would comprise a joint plea to the mortgage lenders and servicers.

Source: WGAL, Lancaster PA.

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