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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Unregistered
This is a 2010 case. Interesting discussion of the lender's unauthorized practice of law. 


COLUMBIA, SC -- A Beaufort County woman who was targeted in a foreclosure action could avoid repaying a home equity line of credit because the bank committed unauthorized practice of law when it prepared the loan, the S.C. Court of Appeals has ruled....

"[T]o the extent that were a bunch of loans out there that were closed by non-lawyers, there may be some interesting foreclosure defenses," Alford said.


Lenders in South Carolina have known since 1987 that they could not prepare legal documents for a mortgage loan "without review by an independent attorney," Geathers wrote, citing State v. Buyers Serv. Co., 292 S.C. 426 (1987). Also, an attorney must supervise the loan closing, he said.


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doh
I live about 15 minutes from this person. And in South Carolina it is a BIG no no to have any closing, mortgage deal, 2nd loan, whatever without an independent attorney. I am surprised that Wachovia even went to trial on this, they should know better. And the judge in the originial trial should know better, but our judges or referees here in Beaufort County are total butt heads.

That being said, any closing done without the attorney present AND signing documents that they were there nullifies any mortgage or note in our state.

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 OMG!!!That is interesting .. wonder if Pennsylvania has something like that?? Because when we did our signing and closing of our mortgage it was done at our kitchen table.. On a Sunday morning.the loan officer said it was fine he could get everything notarized on Monday we signed it and he witness the signing.. That is very interesting never thought about that..Might be something to look into. Also what happens to insurance that you got with the loan for death and disability if the loan is sold?? Does Insurance follow the loan ??
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doh
If you mean the title insurance, it would go with the benificiary (sp?) or the estate.

At my closing, the attorney made it clear that she represented both parties, and I signed a document stating that.

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I am not too sure about title insurance but we did purchase life and disability insurance on the loan if we died or my husband became disabled it would pay the payments. My husband was forced to retire 4 years ago with a disability Just wondering if that would follow the loan. or did we lose it when our loan was sold ?? there is no mention of it in our recent paperwork just other charges for taxes and homeowners insurance and late fees.

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