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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Some borrowers lied about income to get home loans

STOCKTON - Amid all the anguish arising from the swelling volume of home foreclosures, there has been much talk about real estate fraud. But most of the complaints can't be criminally prosecuted, representatives of the San Joaquin County Office of the District Attorney said Thursday.

Most allegations won't mean charges either because the borrowers didn't tell the truth about income when applying for a loan or the buyers chose to believe they would be able to make the purchase work later with a refinance - but the market tanked and what amounted to speculation didn't pan out, said Robert Buchwalter, criminal investigator with the district attorney's office.

James F. Lewis, deputy district attorney in charge of the real estate fraud unit, told those attending a Northern California Housing Counseling Network quarterly meeting Thursday: "Some of these (filing complaints) are legitimately naïve and uneducated, and we have to try to figure out whether they are truly victims."

Buchwalter said the standards for criminal prosecution of fraud charges are much higher than those involving civil suits, but charges can result if, for example, it can be proved that buyers were lied to about loan terms.

"It's an extremely high bar I have to get over," he said.

Lewis said the current foreclosure turmoil arose for a number of reasons, ranging from loose loan underwriting standards - "I would sum it up as greed, corruption and incompetence in a Wild West mentality for lending money" - to homeowners and investors who were willing to sign anything in order to buy.

Among those in between were fudging appraisers, some questionable behavior by real estate agents and mortgage brokers, notaries who helped forged documents, and unlicensed mortgage scam artists, he said.

Neither Lewis nor Buchwalter had figures available about how many real estate fraud-related complaints had been filed, how many of those were or are being investigated, or how many charges have been filed.

As well, fraud complaints are extremely labor intensive - a single case can produce a 7,000-page investigative report - for a year-old real estate fraud unit staffed solely by Lewis and District Attorney's Office investigators.

"We're going to charge as many people as we can, given our resources," Lewis said.

Buchwalter said that because of limited resources in the District Attorney's Office, those filing complaints must first fill out questionnaires. Based on that, about one of every 10 complaints results in fraud investigations, he said. Investigations also are hampered by geography.

Many of the complaints involve commuters who bought affordable homes in San Joaquin County but involved real-estate and finance businesses in the Bay Area, Buchwalter said.

"Everything we chase is over the hill."

Contact reporter Bruce Spence at (209) 943-8581 or
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Hey Smurf,  On our paper work that was sent to Fannie Mae, it is totally blank on the part about income.  I asked the company that we are involved with to send me a copy of what they based our income on and of course I didn`t get a response.  I have asked on the phone and have written them also. I have no idea what they based our income on. We gave them corect income along with income docs as proof but they just wouldn`r send me an answer.

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I feel this is not related to MSF.

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 I feel it is because they are trying to blame us like we are the one's that lie and committed fraud and that we should be punish. They are still trying to put the blame on us when it was them that committed fraud. Like I said once before their are many topics that are place in MSF that are not talking about fraud but they are all related they all come down to the boil down same to the same thing weather it Mortgage fraud, predatory lending and mortgage scram  everyone is losing their home because of this Smurf

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Fed UP
You know, I agree with both of you.  I don't feel it is MS fraud either, but at the same time it is something that people need to watch out for.  There's a fine line between the 2 of them and sometimes they all get tangled together.

Smurf, if you had to do it over again, would you have let that "blank" slide now knowing what you know? 

I had a broker who said to me once "well if we bump your income up X"  As we were going stated income and not actual income.  I told him NO WAY. 

The brokers are always pushing as their commissions are based on the amount you borrow.  For example AmeriQuest.  I wanted a 60/40 loan.  That's all I wanted, all I needed to pull out enuf equity for the downpayment on the resort and to leave us with moving expenses and some $$ in the bank.  The broker kept pushing "well just think if you got a 100 LTV or even a 120" .  Ah, NO. 

The brokers often tend to mislead borrowers and then play mind games like they have you over a barrel, when in actuality it is the borrowers who have the power.  Don't forget that broker does not get paid if you don't sign! 

No is a wonderful word sometimes! 
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Fed up,

 First sorry for the mistake on my comment above.

 Yes, Fed up I would have don't thing very different with what I know now our first mistake was signing something that we did not agree on when the lawyer came to the house to close on our refinance. Because our mortgage is double of what we use to pay and they told us our mortgage payment would be lower that why we refinance to lower the payments and to pay off some credit cards I would have never accepted interest only loan or that we had to pay the tax's because when we did the closing the lawyer told us our tax's had to be escrow but their not we also have a repayment penaty.I learn all this after this happen to us. I lot I learn in this forum and on the Internet searching. I feel they really took us.

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Fed UP
You know Smurf, all of us here have learned our lessons the hard way. 

and before I go further, there is absolutely NO need to apologize to me, I am not an intimidator on this forum, I'd rather be known as an "informer"   

It sounds like you have a long road ahead of you and I encourage you not to give up, not to quit.  Follow the sage advice of Dee and from what I have been reading Noodles has been a quick protegee of Dee's and offering some very sound advice here. 

However, I would add this, after you get your documents together, the best way is chronological order last to first.  Do your own history, compare it to the history/accountings you get.  And do what method works best for you as suggested on this site, or you may find your own unique way. 

I would absolutely, based on the article you have posted, document the fact that your income was left blank.  Hopefully you sent a letter and not just a phone call when you inquired about it.  If not, I would do it now.  You don't need to be caught up in yet another debacle.  CYA is best! 

Good luck and prayers to you,

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I will not give up.That's always been my Motto Never give up.Thank you Karen.  Smurf

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