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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Our title and quit claim deed has the wrong description on it and all of our closing documents as well.  At this point our title is wrong and if anyone would put a lean on it - it would not be legal to this property.  Does anyone know if the Mortgage company can change this without our signature?  I don't think they can legally change our deed or title without us signing it.  Can anyone help?

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The short answer is no they must go though the legal process of perfecting the lien, but most title companies have clause about correcting clerical errors.

This is sort of muddy  at times and the judges are very lenient about granting the lenders and purchasers possession even with grossly fraudulent liens.

It's very rare that the contract would be declared void on the basis of a lien that is not perfected.

This is a good avenue to pursue and if they know you know your rights is a good negotiating tool as there can be criminal charges and punitive damages and total loan write offs involved.

I'm not a lawyer and not a title expert so please investigate this carefully but at the same time quickly. It would be great if you could get a good lawyer.

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Linda:

You have a LEGAL problem that really requires the attention of a trained and qualified real estate lawyer.

You have SEVERAL problems, unrelated to WHETHER your lender has a valid security interest in your property.  Foremost amongst these is that IF YOU DO NOT HAVE A VALID and PROPER DEED, the seller COULD dishonestly SELL your property to someone ELSE without your knowledge and an INNOCENT PURCHASER checking the records might still THINK that the prior owner owned your house!

This possibility is somewhat REDUCED where you OCCUPY the house and notoriously represent that YOU OWN IT.  But even this is NOT foolproof.  The prior owner COULD tell a propsective buyer that you are TENANTS.  I am NOT suggesting to you that the prior seller is dishonest or that this is likely to happen.  But I am telling you that this is one of the things that the recording acts are designed to PREVENT.

IF you purchased an owners title insurance policy, then it is generally going to be the title insurer's problem to get the title cleared up.  But bear in mind that the owners title policy probably only protects the value you PAID, not subsequent appreciation.

Similarly the Lender would have insisted upon a Lender's title policy.  And it is the title company rather than the lender than is going to have a problem.  If you DEFAULT on your promissory note or are otherwise subject to foreclosure, the lender can always just make a claim under teh title problem and force the title insurer to pay to clean up the mess.

Bear in mind that you are going to be liable under the promissory note in any case.  So this is NOT a get out of jail free card for your mortgage.  Moreover, to the extent that there WAS a common agreement as to WHAT was being financed, a court would probably allow a reconstruction of the agreement consistent with the agreement of the parties.

The fact that you SIGNED the mortgage or deed of trust manifested your intention to give a security interest in the property.  Now if you owned TWO properties, A and B, and intended to give a security interest in A but the mortgage says B, there would be some difficulty in PROVING the intention of the parties to mortgage the other property.  The court might look to ALL of the evidence to determine the parties intention and might find that there was no agreement AT ALL. 

But if you bought property A with the lender's money and then gave a mortgage to C in which you had NO interest, it is more difficult to argue that you INTENDED to give the interest in C.  In fact, making such an argument when you had no interest whatsoever in the other property would tend to indicate an intention to DEFRAUD the lender.

So I do NOT see any pot of gold here for you.  Only a possible can of worms.

I would highly encourage you to STAY CURRENT on your payments, seek competent legal counsel and try to find an economic way to RESOLVE the errors with the cooperation of the lender and title company!
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Linda:

Greg IS correct that the Lender CANNOT unilaterally ALTER the deed or the mortgage / deed of trust.  AND if you ARE already in default (which I did NOT assume), this is certainly also a bit of a speed bump.  And it MIGHT improve your bargaining position, as Greg suggests.

The lender or title insurer probably COULD record an AFFIDAVIT pointing out the ERROR and if properly indexed such an affiadvit might put others on notice of the error.  But the erroneous instruments would persist absent some court ordered correction or a voluntary correction involving the parties.

Bear in mind that in some states the deed comes with an express vendor's lien.  And there may be a common law lien, as well.

This really can get confusing and EXPENSIVE very quickly.  Your interests in correcting and perfecting the DEED generally coincide with the interests of the borrower under most circumstances.

If you are in DEFAULT, you definitely need to discuss this with a lawyer!  If you are NOT in default, you can SEEK a CORRECT deed directly from the SELLER.  But unless you are extremely knowledgable and experienced, it might be a good idea to get a lawyer's help with this, too.  You might even elect to RECORD the CORRECTED deed.  This might perfect your interest in the property.  I am unsure whether you have ANY duty to prematurely call the Lender's attention to the error.  Since the Lender is protected by the Lender's title policy, it is unclear to me how the Lender is prejudiced.

It is certainly TRUE that IF you have another CORRECT DEED to the property and the lender foreclosed upon a mortgage identifying the WRONG property that they would have little to show for their foreclosure efforts.  Getting a corrected deed is probably NOT inimical to the interests of the lender.  Selling or mortgaging the property after obtaining such deed, probably IS contrary to the lender's interests and certainly should never be undertaken without consulting a lawyer.  BE CAREFUL!!   
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DescrDefect

This was interesting!

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In my case I was served with foreclosure papers and then the lawyers for the bank filed an assignment of mortgage with another bank. I have both assignments from our register of deeds. The 1st was done in 2005 with one bank (WF) and the other (BNYM) in 2010 just a month after I was served. A default judgement was given to the bank and was just recently vacated by the bank. I now have a lawyer and he is working on it now.
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