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'm running in to a situation I haven't seen anywhere, and I am hoping someone here can shed some light as to what I should do.

Here is the situation in short:

The property is in Massachusetts.

In May 2007 I stopped paying on my mortgage and let it default on the advice of a bk atty. We had lost our jobs and were struggling, but making the payments. It was decided that I was going to file BK and give up the house. I filed a Homestead on the advice of my bk atty, which was recorded at the county in July 2007. We moved out of the house, and up to NH in August 2007, because we thought by vacating it would speed up the foreclosure process.

The bank, GMAC, filed a Notice of Foreclosure in Nov. 2007. (more on this in a moment)

We moved out, finished the bk paperwork and I filed in March 2008. I included the 1st & 2nd mortgages, and the property taxes on the house, and nothing was contested.

In June 2008 the town filed a tax taking on the property.

I was granted my Discharge in the Fall of 2008.

Back to GMAC - they realized that the mortgage docs had gotten messed up and somehow they were in 2nd lien position to our home equity line with Citi. GMAC filed court papers to be reinstated into first lien position. They were granted 1st place in April 2009.

Remember, the town took the property in 2008.

In April 2010 New Century Mortgage (the original mortgage bank who assigned (I thought) to GMAC) filed an...Assignment to GMAC! There was no assignment ever on record from New Century to GMAC.

Then, GMAC once again files a Notice of Foreclosure in August 2010.

The Assignment that was filed had some serious issues, like dates crossed out from 2009 to 2010, and then with an internet search, the signer is none other than Jeffrey Stephan, a robo-signer who created forged documents for GMAC, who is expected to have falsified over 18,000 foreclosure documents.

A little further research shows that New Century went out of business, then reformed or relaunched? much later. Again, no assignment from them to GMAC except the fraudulent one.

My house that I moved out of in 2007 is still empty. I discharged the debt to GMAC, not New Century, in my bankruptcy. It's still in my name per the county registry. I still get included on all documents pertaining to this property as the "owner". No deed of transfer has taken place, by the town or anyone else.

Should I be talking to a good lawyer, or just let this fall out how ever it ends up?

Thanks for any feedback - we're so lost!

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William A. Roper, Jr.

You need to search the Forum and find the message thread relating to the Ibanez case and read it.

You also need to have a conversation with your attorney relating to your Bankruptcy filing and precisely where it leaves you under Massachusetts law.

You need to take GREAT CARE as to any other information you post here at the Forum, as the uniqueness of your situation presents more than a little possibly identifying information.  It is probably NOT sound to discuss strategy in respect of identifying information unique to your case and situation on a public message board.

I would endeavor to keep your COSTS DOWN while you further assess your rights.  Whether you have any rights of redemption in respect of the tax sale is one question.  Another question is your rights in respect of the GMAC mortgage.  The assignment is probably a forgery.

IF you have any remaining rights in property, you need to ascertain your best avenues to preserve these.  But if you have no rights (due to the tax sale), then you need be in a position to keep any further costs down in respect of the new activity by GMAC.  If these new initiatives introduce some additional credit impairment or costs, these MIGHT be a violation of the terms of the Bankruptcy discharge.


Also, bear in mind that in most places there is a statute of limitations on suits on a promissory note and/or foreclosure in respect of such a note following acceleration.

Even if GMAC was not validly the holder at the date of the acceleration, if they were the agent of the holder, the acceleration might be valid even if the foreclosure was NOT.  IF you still have rights in the property AND the assignment is defective, it MIGHT be better to wait out limitations and then seek to reoccupy the property and to bring a quiet title action in respect of the forgery and defective foreclosure AFTER limitations has run.

IF you show the mortgage investor the defects NOW, they MIGHT simply CORRECT THESE, obtain a new assignment, and do a valid foreclosure.

SHOP for a really competent lawyer if there is any doubt about the ability of your prior Bankruptcy lawyer to understand and counsel you in respect of this situation.  Be CAREFUL about what you tell a lawyer BEFORE ascertaining whether the lawyer also works for mortgage lenders.   

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New Century is still under bankruptcy in Delaware.  Re-Launched???
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