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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William A. Roper, Jr.
There is another terrific new decision out of the New Jersey Superior Court in the case U.S. Bank v. Spencer:

http://www.judiciary.state.nj.us/decisions/US_Bank%20_amended_110328.pdf


Although this is an unpublished decision of a trial court, which will carry little authority in NJ or elsewhere, it still contains some excellent discussion and analysis of the law.

The case is particularly instructive as to the importance of OBJECTING to the admissibility of exhibits not properly authenticated by a valid business records affidavit.

The case is also a rather remarkable example of the incompetence and arrogance of the servicer in dealing with a borrower who was seemingly seekign to do the right thing throughout.

ALthough the link to the case is provided and no LEXIS link is yet available, as an additional finding aide for those seeking this thread in the future through use of the Forum search facility, I would not the following additional case details:
U.S. Bank, N.A., as trustee for J.P. Morgan Acquistion Corp. 2006-FRE2 v. Arthur Spencer et al, Superior Court of New Jersey, Chancery Division, Bergen County, Docket No. BER-F-10591-10, Decided March 22, 2011, Amended March 28, 2011.
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William A. Roper, Jr.
I neglected to mention that U.S. Bank, N.A. v. Spencer is also, perhaps, the ultimate (and ironic) force placed insurance case!  The Defendant's residential property was totally destoryed by fire leaving only the separate gargage on the property.  The original dispute with the lender arose not due to non-payment of the mortgage, which the borrowers continued to pay for some time after the destruction of the residence, but rather out of the control, disposition and use of the fire insurance proceeds.

Later, it seems that after exepnding much $$$ in seeking to obtain permission and permits (including a zoning variance) to reconstruct the destroyed property out of pocket, it seems that the borrower may have fallen into arrears.

So what does the Lender do?  But of course, they purport to purchase an overpriced fire insurance policy on the property to protect their interest in the mortgaged property, even though there isn't ANY structure on the property to insure and the bank was already holding the proceeds of the payment of the prior fire insurance policy!
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I am the attorney for the def. in Spencer.  While it is always better to win than lose - this is a phyrric victory, at best. Although the pl. filed its motion in improper form, failed to provide any competent evidence to support its claim and acted horrendously vis a vis Mr. Spencer, there were no real consequences.  The def. provided pages of sworn testimony and documents as to the banks bad conduct - but the decision of the court was to dismiss "without prejudice".  Thus the bank was given a mulligan and all of the def.'s evidence was ignored.  The bank has a right to refile with the benefit of the court telling counsel how to get it right and the def. will have to again bear the expense of defense.  The def. is contemplating an appeal as well as filing a separate action for consumer fraud, common law fraud, breach of contract and to quiet title.  The battle has just begun.

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William A. Roper, Jr.

truth monger:

I am uncertain WHERE you are coming from.  Here an attorney who has successfully represented a defendant in a critical appeal appears at the Forum, as far as I know for the first time, and makes a post lamenting that the Court's decision leaves his client less than whole.

I believe that Mr. Stern deserves to be applauded rather than chastised.  Hopefully, he and his client will have even greater success when the matter is refiled and relitigated.

I am not going to bother to othereise respond to the bulk of your hostile and seemingly ill informed drivel.

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William A. Roper, Jr.
The original link to this decision at the NJ Superior Court site no longer works.  (Apparently the court there only leaves unpublished decisions up for about six weeks.)  I have posted the decision at my Scribd pages:

http://www.scribd.com/doc/59784856/U-S-Bank-v-Spencer-NJ-Superior-Decision-22-Mar-2011


Thanks to NJ attorney Gary E. Stern for the digital copy!

The decision can also be found on LexisOne:
U.S. Bank, N.A., as trustee for J.P. Morgan Acquistion Corp. 2006-FRE2 v. Arthur Spencer et al, Superior Court of New Jersey, Chancery Division, Bergen County, Docket No. BER-F-10591-10, 2011 N.J. Super. Unpub. LEXIS 746, Decided March 22, 2011, Amended March 28, 2011.

I mentioned this decision in a comment within this discussion thread at the CreditSlips site yesterday:

 

CreditSlips: Homeowners Insurance Claims and the Foreclosure Crisis

http://www.creditslips.org/creditslips/2011/07/homeowners-claims-and-the-foreclosure-crisis-.html

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I'll third Mr. Roper's comments.  I am not a fan of highly moderated forums, but the posting by 'truth monger' is the exception.  His comment should be deleted.
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