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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during the ejectment action filed against my sister, the mortgage company filed a copy of the original mortgage, but never filed a copy of the note endorsed over to the assignee.  Well, after reading all the stuff about bankruptcy judges dismissing claims against mortgage companies, I did I would see who filed the claim in my sisters bankruptcy case.
  
CITI-RESIDENTIAL was acting as servicer for the secured debtor, but there was nothing filed that established there was a debt by the claimant.  Attached to the claim was the original mortgage and a TRUE AND CORRECT COPY of the promissory note with the stamp over AMERIQUEST as the original lender and there was not a copy of the assignment executed 6 mos after she was already in default.  

However, the true and correct copy of the note evidences the note was never assigned to the "secured debtor"  and therefore has no legal claim to the mortgage or the note.  And because a true and correct copy was filed with the bankruptcy court, the pretender lender cannot now file a  true and correct copy that was endorsed.

I thank God for giving me the wisdom to examine the bankruptcy claim.




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    My opinion with regard to BK is backed by experience. Never file Ch7 before a judgment is entered. Fight it out in state court.
    If there was obvious fraud in the state court judgment, file ch 7 and list
the judgment as unsecured and disputed. List the property as homesteaded
with either the state exemption or the federal exemption if your state has
no hx exemption.
    In 7 out of 8 cases I prepared, the pretender lender never filed a motion
to lift the stay and never appeared at the trustee meeting. In the one case
where a motion to lift the stay was filed, it was denied. Out of the 8 cases,
so far, 5 received a discharge and got to keep the property because in Fl.
the HX is unlimited. ( That won't be true in most states but at least one
should get some cash back when the property gets sold by the Trustee.)
One could conceivably use that cash to buy another foreclosure, maybe
even the same house one just lost.
     In studying Pacer and looking at what most attorneys do, I'd say their
biggest mistake is filing Ch7 pre-judgment. This always triggers a motion to
lift the stay, it gets granted and the homeowner loses the house. In my
humble opinion, it is malpractice and shows that the attorney has no clue
as to what he is doing.
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Mike H. wrote:
    My opinion with regard to BK is backed by experience. Never file Ch7 before a judgment is entered. Fight it out in state court.
    If there was obvious fraud in the state court judgment, file ch 7 and list
the judgment as unsecured and disputed. List the property as homesteaded
with either the state exemption or the federal exemption if your state has
no hx exemption.
    In 7 out of 8 cases I prepared, the pretender lender never filed a motion
to lift the stay and never appeared at the trustee meeting. In the one case
where a motion to lift the stay was filed, it was denied. Out of the 8 cases,
so far, 5 received a discharge and got to keep the property because in Fl.
the HX is unlimited. ( That won't be true in most states but at least one
should get some cash back when the property gets sold by the Trustee.)
One could conceivably use that cash to buy another foreclosure, maybe
even the same house one just lost.
     In studying Pacer and looking at what most attorneys do, I'd say their
biggest mistake is filing Ch7 pre-judgment. This always triggers a motion to
lift the stay, it gets granted and the homeowner loses the house. In my
humble opinion, it is malpractice and shows that the attorney has no clue
as to what he is doing.

thanks Mike, and you're right, the whole thing is about strategy.  I didn't become involved in this until the house was foreclosed and an ejectment action was filed -the foreclosure was after her bankruptcy case got dismissed. 

Thereafter, I fought to render the foreclosure sale null and void pursuant to state statutes and  fraud.   At the time I didn't even consider her bankruptcy filing or the fact there was possible evidence of fraud, but after doing some checking for a friend on bankruptcy, I decided I would check to see who filed a proof of claim in her case.  That's when I found the alleged 'assignee' submitted a proof of claim basically evidencing to be the original lender based upon the fact that AMERIQUEST as lender was stamped over and there was no assignment or endorsement of the note.  

I know AMERIQUEST was a  subprime lender, but  does the fact  the mortgage instrument was a uniform instrument for the FHA make FANNIE MAE the investor?
Click image for larger version - Name: FANNY_MAE.jpg, Views: 12, Size: 29.41 KB
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     If the original BK got dismissed before a judgment was entered, you can
still file one more BK after the judgment and get the benefit of the temporary
stay (but only for 30 dAYS).
     hOWEVER, the creditor will still have to file a motion to lift the stay and
appear at the Trustee meeting. If they don't, a discharge will probably be
entered because they defaulted. That's where your homestead exemption
will kick in. For example in NY now it's 50 k so if the judgment was for 200k
and the property is worth 100k, I suppose the trustee will sell it for 100k
and give the debtor 50k (ie the HX exemption).
      All this presupposes that the debtor acts fast, immediately after the
judgment is entered. If you snooze, you could lose for reasons I don't want
to divulge hear.
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all this is getting so complicated - I'm the one doing all the worrying and fighting, I just want my life back.  As boring as it might have been, it was peaceful

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Crickett wrote:

all this is getting so complicated - I'm the one doing all the worrying and fighting, I just want my life back.  As boring as it might have been, it was peaceful


Crickett it sounds like you have already filed.. But in any case do or did you and your sister understand the downsides of filing bankruptcy? They are substantial. Looking for loopholes after the fact is an unrewarding and usually futile effort.  

(Not a lawyer)
Ed Cage   |  ecagetx@gmail.com

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I didn't know anything about the bankruptcy, or the foreclosure.  I only learned about it after an ejectment action was filed.  I was initially trying to  get the right of redemption, but then all these other things came up to prove they weren't who they claimed to be and lacked standing to foreclose.    If this wasn't my mama and daddy's house, I wouldn't be involved in it at all. 



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    In my opinion, a great source of information for pro se litigants on the
subject of BK are the NOLO Press Ch 7 and Ch 13 books. You can get them
on sale at Borders.
    The books show the means test requirements for Ch7 & Ch13 as well as
the State exemptions for HX and also the federal exemptions for those States that don't have HX exemptions, like NJ.
     Even if you decide to get a lawyer, read them first so you don't get
a "snow job" from a lawyer who knows very little about bankruptcy. In my
research I have found that most lawyers don't know what they are doing
and cause people to lose the house or the money, when they could have
saved one or the other.
      Also read your States rules on judgments and the homestead exemption.
Look under Civil procedure, both State and Federal.
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Mike H. wrote:
    In my opinion, a great source of information for pro se litigants on the
subject of BK are the NOLO Press Ch 7 and Ch 13 books. You can get them
on sale at Borders.
    The books show the means test requirements for Ch7 & Ch13 as well as
the State exemptions for HX and also the federal exemptions for those States that don't have HX exemptions, like NJ.
     Even if you decide to get a lawyer, read them first so you don't get
a "snow job" from a lawyer who knows very little about bankruptcy. In my
research I have found that most lawyers don't know what they are doing
and cause people to lose the house or the money, when they could have
saved one or the other.
      Also read your States rules on judgments and the homestead exemption.
Look under Civil procedure, both State and Federal.

I agree with you 100% on most lawyers - I learned that the hard way with several that I had hired.  They lost cases that were easy to win by not timely filing documents.  Inexcusable in my opinion.

I've got a lawyer on this and we are waiting on the  answer/dismissal which is due on March 16 .. I expect they will try to get me kicked out of court and/or file a counterclaim.  

I thought everybody got homestead exemption for their primary residence, it sure saves a lot on taxes.





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Crickett wrote:

I've got a lawyer on this and we are waiting on the  answer/dismissal which is due on March 16 .. I expect they will try to get me kicked out of court and/or file a counterclaim.  I thought everybody got homestead exemption for their primary residence, it sure saves a lot on taxes.



Crickett their "homestead exemption" is primarily for protection from liens originating from claimants other than their home lender. Filing bankruptcy after being foreclosed upon is often futile as the "homestead exemption" has little of its former clout. 1) Do what your lawyer says; don't give undue credence to well intentioned friends, relatives or even people who sound savvy unless they are highly qualified and your lawyer knows you are seeking outside help. 2) Keep in mind these searches for "miracle loop-holes" almost always lead only to a pot full of wasted time. 3) (It bears repeating)  =====>Do what your hired attorney says. 
 
(Not an attorney)
Ed Cage     |     ecagetx@gmail.com

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LOL, I don't have to sorry about well intentioned friends or relatives - their advice was not to fight it and they're tired of hearing it.  But, as they all know, I will fight it to the bitter end.

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Keep expenses LOW Crickett.
Your odds are prohibitive.
 
Ed
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you'd think I didn't know how to spell .. that should have been "worry" and not "sorry"

attorneys fees are a big concern to me .. I want this over as soon as possible so as not to incur too many billable hours.
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Dear Ed,
    Once a judgment is entered, the Note and the Mortgage no longer exist. The BK courts treat all judgments equally regardless of their origin. The
original lien no longer exists. This is the key to why filing BK prior to the
judgment is futile, the lien still exists.
    Also, if Mers was the lienholder, even prejudgment there may not be a lien
but it is for sure that after the judgment there is no lien. It is an unsecured
debt subject to the homestead exemption. Without the hx exemption, whether it's secured or not doesn't matter, the property will be sold even if
it was a credit card debt that caused the judgment in the first place.
    There is a great deal of misinformation out there concerning judgments
and the HX exemption. Title 28 US Code, section 1962 & 1963 are the key
to understanding. Also read Henry Trawick on judgments.
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Mike H wrote:
Dear Ed,
    Once a judgment is entered, the Note and the Mortgage no longer exist. The BK courts treat all judgments equally regardless of their origin. The
original lien no longer exists. This is the key to why filing BK prior to the
judgment is futile, the lien still exists.
    Also, if Mers was the lienholder, even prejudgment there may not be a lien
but it is for sure that after the judgment there is no lien. It is an unsecured
debt subject to the homestead exemption. Without the hx exemption, whether it's secured or not doesn't matter, the property will be sold even if
it was a credit card debt that caused the judgment in the first place.
    There is a great deal of misinformation out there concerning judgments
and the HX exemption. Title 28 US Code, section 1962 & 1963 are the key
to understanding. Also read Henry Trawick on judgments.


the thing is, there really wasn't a judgment, it got dismissed because she didn't make the payments ordered by the court.  However, as I posted on another thread,  the foreclosure sale was held prior to the court entering a final decree.


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Crickett if you recall I previously told you I would be very surprised if an attorney you had legally retained and paid would petition to put your case in a class action suit without your permission. Personally I do not recommend class actions unless a victim can live with the fact that a 5 yr wait, 5% on the dollar and a release stating that the lender { gULp } “admits no wrongdoing” are common.

~~~ However if your lawyer advises you to go the class action route DO WHAT YOUR LAWYER SAYS. BTW what that advice usually means is that you have a miserable case or limited resources or both.  

 

 

As for the "homestead exemption" which you mentioned try to get that angle out of the equation. It is primarily for protection from liens originating from claimants other than their home lender. It is not going to help you at this stage. AGAIN: DO WHAT YOUR HIRED LAWYER SAYS and don't give undue credence to well intentioned friends, relatives or even people who sound savvy unless they are highly qualified and your lawyer is fully aware you are seeking outside help.

.

Since you said, "I've got a lawyer on this" (A rarity in here) I strongly encourage you go by advice from your lawyer who has their hand on the pulse and actual details of your state laws and the case before you.

 

Ed Cage    |    ecagetx@gmail.com

 
 
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LOL, having an attorney that actually files pleadings in court is a rarity for me too!

for all the reasons you stated, I don't want to go through a class action and be stuck in the court for 5+ years - I'll never live to see the end of the case.  This is already going on 2 years and I want to get it over with ASAP. 
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Crickett you previously stated, "I've got a lawyer on this." If that's no longer the case then you may get your wish to, "get it over with ASAP." But understand (some exceptions apply) few can put on a competent pro-se case with no lawyer and expect a favorable as well as speedy outcome.  

 

* * * * * * * * * *

FACT:

Generally speaking judges do not have a warm fuzzy feeling about pro-se litigants.

I'll explain why if you didn't know that.

* * * * * * * * * *

 

On the other hand if you DO have a lawyer as you previously stated then once again, DO WHAT YOUR HIRED LAWYER SAYS and don't give undue credence to well intentioned friends, relatives or even people who sound savvy unless they are highly qualified and your lawyer is fully aware you are seeking outside help. Assuming you have an attorney as you claimed, I strongly encourage you go by advice from your lawyer who has their hand on the pulse and actual details of your state laws and the case before you.

 

.

Ed Cage    |    ecagetx@gmail.com  

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I do have an attorney and I've been working with him to put together a case.   

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Ed Cage
Crickett wrote:

I do have an attorney and I've been working with him to put together a case.   


Great!  Do what he says,, Believe me he knows insider personal details nobody here is likely to know. Tell him as much as you can, give him your objectives and your limitations. ...Then DO WHAT YOUR LAWYER SAYS Crickett. Second guessing your attorney with laymen from another state (unless he's given his blessing and approval) is seldom productive and could lead to conflicts damaging your relationship with a professional you have paid for guidance.  

.

Ed Cage

 
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Ed Cage wrote:
  Great!  Do what he says,, Believe me he knows insider personal details nobody here is likely to know. Tell him as much as you can, give him your objectives and your limitations. ...Then DO WHAT YOUR LAWYER SAYS Crickett. Second guessing your attorney with laymen from another state (unless he's given his blessing and approval) is seldom productive and could lead to conflicts damaging your relationship with a professional you have paid for guidance.  

.

Ed Cage 


I do have his blessing and approval and when he reviews what I have sent to him we discuss it and he'll tell me other things to look for and he can't wait to see what they are going to do and who their attorneys  are going to be.  

I know this case inside and out and reading what other people have questioned or written, has given me the heads-up to apply it to the situation at hand.  

I never considered the bankruptcy an issue until I was looking into some things for a friend and then I was able to go back and review the proceedings in bankruptcy court and found some good evidence there that I discussed with my attorney.




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