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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Frustrated
I'm not being mean but honestly this is why MSF gets no attention.
 
It's far too easy to turn a predatory lending story into a "they wanted more house than they could afford story" because to be honest it's true, the trap they are caught in, they walked into it themselves.
 
I'm so sick and tired of reading these stories while people who have actually been victimized by the servicers get pushed aside.
 
 
http://online.wsj.com/article/SB118722072707499017.html?mod=hpp_us_personal_journal


HOME SECURITY
One Family's Journey
Into a Subprime Trap

Monteses May Lose
House as Rate Resets,
Credit Options Dry Up
By JAMES R. HAGERTY and KEN GEPFERT
August 16, 2007; Page A1

FULLERTON, Calif. -- Nearly two years ago, Mario and Leticia Montes found a home they loved, a gray stucco bungalow with a hot tub in the backyard in a middle-class neighborhood of Orange County.

The price was a major stretch at $567,000. But the couple, who had sold a home a few years earlier to move to a better area, was tired of renting. Mr. and Mrs. Montes convened a meeting with their two teenage daughters around the kitchen table to hash out the implications. "We agreed we wanted to be homeowners again," says Mr. Montes, "even if it meant the end of vacations and not eating out as often."

Like many people who jumped into the rising housing market in recent years, they had little money for a down payment and chose a loan that would hold their monthly payments down for the first two years, then "reset" to a much higher level. Mr. and Mrs. Montes say their mortgage broker assured them they would be able to refinance in a couple of years to keep their payments affordable.

With a December "reset" on their loan looming, however, the refinancing option now looks impossible. A friend who works as a loan officer called with some bad news this week: Similar homes in their area have been selling for $535,000 to $565,000 recently. That means the Monteses' loan balance may exceed the value of their home. (Reader's note: But they bought the house anyway. )

The Monteses are caught in a trap -- one that hundreds of thousands of people could face as the housing market totters and the easy credit of recent years dries up. They in effect bet that the boom in housing prices would continue. It was more important to hop onto the escalator than to wait until they could afford to make the leap according to traditional measures.

Write to James R. Hagerty at bob.hagerty@wsj.com and Ken Gepfert at Ken.Gepfert@wsj.com

 
Have you recently sold your home? Did current market conditions make it difficult to close the deal, or was it a nonissue? Share your stories: Send a email to realestatejournal@wsj.com

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Part of the problem in this particular reporting incident is that James R. "Bob" Hagerty doesn't believe that mortgage servicing fraud really exists. The last time I contacted him he told me he thought that I was "exaggerating" the problem.

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The reason is PR machines! Hired by American Bankers Association.  They are spending millions on PR and right now lobby groups to keep this called a "Sub-prime" problem, and not forgery, wire fraud, mail fraud, extortion, money laundering etc! 
 
They also don't want the counterfeiting of documents being exposed, so they have to do "EVERYTHING" they can to conceal the criminal actions.  No cost is to high to pay for them! 
 
The problem now is to great to contain now, its catching on.
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I agree, who told these people to go out and buy a nearly $600,000 home in Orange, L.A. and Ventura county that gets you a slum bungalow where you can't even walk safely down the street but that's because of the lending frenzy no doc and low or no money down loans, and bogus overappraisals.

If you can't afford something you can't afford something it was foolish to buy in S. Cal during the speculative boom in the first place.

The foolish people who bit off more than they could chew create a cover story for our genuine thefts.

There is another issue though with similar intent to ms fraud which is on the front side where doc. are forged and loans terms modifies and switch and bait occurs sometimes the borrowers are presurred into signing the docs but other times they are trapped into a loan they never agreed to.

In these cases where borrowers were defrauded I think it's additional evidence the lenders engage in an intentional pattern of fraud and it helps our cause rather than diverts attention from it.

I'm not saying we should mix the two issues on this forum because it's still very important to get people to understand the servicers manufacture defaults, but we are in the same legal boat as them where are homes were intentionally stolen or set up to be stolen through fraud.

Another issue is that these lenders have sophistcated analytics and they are quite well aware of who is likely to default and they were more than glad to make lonas they knew would probaly default so thay could used the MBS to play the derrivatives market with. So even though the irresponsible borrowers bit off more than they could chew helped create the environment where the fraudulent servicers the lenders new they were setting up loans to fail and they could profit from them.

They always planned to run up housing values, destroy them and then get the homes for free. These lenders used our equity to play the market with and they do not seem to care whether it's is someone with bad lending and spending habits or if they have to manufature the default or if someone is a senior and will be dead by the time they gewt though appeals even if they could win a suit. They also know most people will panic and walk away from the homes and file B. K. or try to dump the home at a fire sale. The game is use or money to get rich and then frame us make us look like criminals and dump us in the streets and they have few well planned methods to do that to various groups of people.

Unfortunately it seems those who created their own problems get far more sympathy, understanding and assistance that the rest of us. When were were stuck in our van with nothing to eat or no place to go all the homess shelters and chuches were angry at us becuase we did not have drug or alchohol problems, not illegal immigrants, or ex-convicts we we told all over the country to get lost becuase we would waste the resources of people with genuine problems. At Willow creek church one of the largest in the country where I was a lay minister and had donated several hundred dollars
they actually became beligerent and told us we deserved to be out in the streets since we didn't have a real problem.

At another church where we were members they got a home for illegal immigrants and the pastors gave there own vehicles to drug addicts out of prison with no drivers licenses. We did a couple weeks worth of work on the church for free and over a thousands in donations eventhough we were barely making it. When our apartment lied and said we had not paid our rent all the church members said we were on our own and could not even let us stay one night or give us any food other than a couple cans of leftovers. Many of these churches promote Satanism and many of them are involed in the property thefts almost all the ministers we know are real estate agents and even own real estate agencies. We know the churches are using Christianity for a cover for home stealing. On the so called Christian radoi stations they are always advertising fraudulent realtors and lenders such as Countrywide.

So we have an issue where finacial criminals run the churches for a cover to defame and frame us and we have the case where people who borrow more than they can afford and who are defaulting as a cover story.

I hate to say this because I am a Christian but the churches that engage in financial fraud need to be shut down and tax exempt status revoked. Personally I believe those directly involved should be prosecuted for murder, treason, and debasing the the currency all of which carry the death penalty because clearly no one is more evil than someone who claims to follow God and is a treasonous criminal, likewise with the churches who harbor illegal immigrants. I would encourage as many people as possible who have knowledge of these circumstances to push the government FBI, DHS, CIA, Local state and Federal agencies etc. to take action to protect the honest law abiding citizens before we are all homeless, pushed out of jobs and homes by foreign invaders or falsely imprisoned like Compean and Ramos.

The lenders and servicers have the whole system set up so they can win no matter what.
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I have to admit there is an element of truth in this guy's argument in  my case.

I wanted some cash so I did a refi. 

What I didn't do is more my fault than what feels comfortable.

I thought I knew the mortgage industry, this was my 4th mortgage.
The other 3 were paid off without a hitch.  I wrongly thought a mortgage
loan was the safest loan to get.

The loan did not exceed the value of the property.  Even after the loan
I still had considerable equity.  I took a 10 year mortgage with a decent
interest rate.

WHAT I DIDN'T KNOW HURT ME.

I didn't know the mortgage industry had changed from honest and reliable
to crooks from the beginning to the end of the process including the loan repayment process.

From the day Fairbanks took over my loan, they made what I thought were clerical mistakes. It was really annoying.  On the third month, a local
tv reporter did a piece on Fairbanks that curdled by blood. 

I ran to my computer and started reading with horror what was happening.
You know what I mean.  The horror that you could lose your house to a scam.

Every month they hassled me with one thing or another until I started
accepting I had to take control and developed my own strategy how I was going to get out of this mess.

Thank God for the Yahoo Group that preceded this web site.  They schooled me and were patiently trying to help everybody. 

They tried every trick in the "Mortgage Servicer's Handbook" to get me
started on their money train and for me to become their personal ATM if I wanted to keep my house.

Luckily for me, my loan was written for me to pay my taxes and insurance so that left them with one legal course of action.  Apply my money to principal and interest only and the extra principal payment of a$1,000.00 a month
made it impossible for them to do anything.  Yet they continued to try
until the last few payments.  They'd credit all funds to principal so I'd be late on interest payment.  They'd credit all to interest making the principal payment late.  Instead of crediting the $1,000.00 a month extra principal payment I sent would be converted into 2 payments and the balance into
a suspense account.  Or they'd put it all in a suspense account.

NEARLY every month I had to play "Where'd they hide the mortgage payment".

My mistake was arrogantly thinking I knew the mortgage industry and proceeded to take a risk that I could have lost my house to a scam
because I didn't take a look around on the internet first.

I took responsibility for that and you can believe I was really mad at myself.

All mistakes made on my loan were theirs.  None my me. 

I paid off my 10 year loan in about 5 years.  I didn't pay a penny extra to Fairbanks.

This reporter can bite me. 

I am still mad at Fairbanks and part of the reason I stick around here long after my problem with them is over is this.  I didn't deserve to be hounded and scammed.  Anyone else looking at my experience (well documented proof) would find their behavior inexcusable.

I spent hours and hours straightening out my record at Fairbanks to keep it current and correct.  I resent it.

All I should have to do was write my check timely, for the full amount, make sure I have funds to cover the check and toss it in the mail a few days before the first and do it again month after month.

Even after I paid off my loan, I kept waiting for something to go wrong.

Sure enough, I got a bill for $35.00 with no explanation for what I am supposed to be paying $35.00 for.  I sent a letter of inquiry.  I was dealing with an Excutive VP by that time and he waived the charge saying it was
for filing the reconveyance of the deed.

Okay, I can pay that with an explanation but I just wonder why you people would send anyone a bill and expect them to pay it without knowing what it is for.

It took about a year before that dread that something horrible could still happen to go away.

Dee
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These crooks scour the public records I've watched them do it right next to me at the County offices and they put together a profile of people they feel they can defraud and then run the bills up on them so they don't have the time or money to pursue them. They know people have to work and can't halt their lives to become an overnight attorney. The servicers also know most people will give them the benefit of the dought and work with them unill it's to late.

Dee I'm so glad you found the forum before you were out on the street.

Ameriquest transfered my loan from Option One into their name disguised as a cash out refie that no one in their right mind would agree to  1.1 million in interest to borrow $98,000 I didn't want of need for a year. Had I wanted a juice loan I could have gone to the Mafia and gotten a much better rate and they would have been much nicer folks.

That's how predatory lenders operate if they know you can afford $1500 a month they try to get you into a $2000+ a month loan and hope you tap out your resources and then cannot fight them in court if there is something wrong with the origination.

With the servicers they use the same trick except they actually manufacture the default though the double charges, bogus late fees, legal fess, bpo,s etc until you are in a rock and hard spot and it appears to be well documented that you are a loser that does not pay your bills.

My case was little different in that Ameriquest immediately filled for foreclosure the first payment I never agreed to was alledgedly "due" November 01 and foreclosure was initiated by December 04 pretty hard to be 2 months or more behind on a loan I never got after just a month. Of course Ameriquest used the bogus late fees forced placed insurance and all the other servicer tricks to run up the bills and get me going in ten directions at once.

Me thinking the Lending industry was well regulated and having absolute confidence in our FBI, OBRE, OCC, the FED etc. deluded me into the false confidence it was impossible wind up losing a dime more than what was lawful let alone steal a whole home. I honestly though the government had an interest in protecting homes, businesses, the greater economy and had an interest in maintaining social stability
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Greg; remember the wall street analysts reports about CBASS, and its use of RADAR, how they "Targeted" individuals using public records, and maintained them.  They are trying to hide this now, but can not!  Many of us were "Targeted" by RADAR then CBASS, if you had a divorce, medical problem, or other "public" record resources they were able to "Target" your mortgage. 
 
If I had the time to find the documents about this I would attach them.  sorry
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