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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Has anyone had any luck refinancing? I have been turned down and was advised it was because of OCWEN reporting me as 30 days late periodically. I had already put a statement saying that I disagreed with OCWEN 's reporting on my credit reports, but I guess it doesn't matter. The mortgage advisor told me that I would need 3 years of no late payments in order to get refinanced, but I'm sure OCWEN won't let that happen. My credit score is 626. What should I do next?

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Ohio
Periodically?? How many is that?

Not meaning to sound flip. The frequency matters.

Are these legitimate dings on your credit? Were you really 30+ days late on your mortgage for each month they have reported late?

Your first task should be getting those late marks cleaned up. It CAN be done but there is a way to go about it that requires a lot of work and record keeping.

You may want to check out http://consumers.creditnet.com/Discussions/index.php

for a lot of priceless information.

Good luck!


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     I have been battling with Ocwen for four years. I finally escaped from
them yesterday by getting an FHA insured loan at about 6%. My credit
score was about the same as yours.
     My experience with Ocwen is that they use foreclosure as a central
part of their business plan if the borrower has alot of equity. 
     I don't know if this will help you, but in my case, they claimed the
loan boarded with them two months earlier than it really did, ie they applied
my May and June 2002 payments to March and April, 2002, two months
I did not owe. Then they reported me 30 days late in June 2002. It finally
reached a crisis in November 2003, when they claimed they did not receive
my November 2003 payment even though I had the cancelled check and
their own bank statement to prove it. They then refused to accept my
DEc 03 payment and all susequent payments. They had their Trustee,
US Bank file a foreclosure action in Feb. 04. Count I was to reestablish
the "lost note" and count II was to foreclose on the lost note, claiming
I was 90 days in arrears in November 2003.
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continued. They lost their "Motion for Summary Judgement" in Jan. 05
but still refused to accept my payments until Feb. 07 when they finally
agreed to settle with me. By then, 39 months had gone by without them
accepting any payments from me.
    In the settlement agreement, I agreed to resume my payments and they
agreed to accept them. I also agreed to pay them 1/3 of the back payments
after which they would clean up my credit. After that, I was to pay them
the other 2/3 of back payments.  They never did comply with the settlement
agreement and I finally had to get a Court Order on Dec 4, 2007 ordering
them to abide by the settlement agreement and clean up my credit. They
disobeyed the Court Order and continued to report me 60 days late, inspite
of the fact I was current. Finally I hauled them before the Judge again on an
Order to show cause on Jan, 24, 2007. I refinanced the next day and paid
off Ocwen. In my order to show cause, I asked for court costs and damages
for their actions. the Judge has not yet ruled on it. Ocwen is bad! the pits!

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correction: the Order to show Cause hearing was January 24, 2008 not
2007 as previously stated.

    I would recommend getting copies of all your credit reports to see
if they are accurately reporting your payments. If not, you may have
a valid cause of action against them. You might also use those inaccurate
reports in your foreclosure defense if it gets to that.

    With regard to refinancing, talk to an experienced mortgage broker.
Many of them know how to get a person out of a bad situation. No bank
will ever help you. MOrtgage brokers get alot of bad press because of
yield spread premium issues (ie selling a higher interest rate than the
borrower qualifies for in order to get a higher commission) but if you
tell him or her in advance you won't tolerate this, he or she probably
won't try it. Tell him or her you want all fees upfront so you can see them.
of course to do this, you need to have some equity in your property.
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If you are serviced by Ocwen, EMC or Litton a potential lender is going to automatically assume you are a deadbeat no matter what the FICO (fake) score is. Those servicers don't qualify to handle legitimate loans and new lenders know they can scam you for fees and higher insterest rates just because the predators had your loan.
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   In normal times, I would agree with you, but these are not normal times.
Many lenders (and underwriters) are becoming aware of what Ocwen and
the others are doing and some are sympathetic. To get approved, I had
to document that I did not default and once they saw what Ocwen was
doing,they over rode the credit score. I had three decent offers.

   Also, brokers (not banks) have a vested interest in getting people
approved for a refi even if the credit is not perfect. If a broker has
a good track record of making good loans, the underwrites can wave
some of the requirements and get it done. That's why she needs a
good and experienced broker to get her out of the bad situation.

   Finally, it appears the government is opening up FHA loans to a broader
group of people. They require mortgage insurance, but they are assumable
with no prepayment penalties. Thus,things could be improving .
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Trying to find out what refinance really is. Find out more.
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MSF Admin
Submitted by reader:
INTERESTING  AND  FUNNY  CORRESPONDENCE  
BETWEEN  NEW ORLEANS  LAWYER  AND  FHA  ABOUT A LOAN APPLICATION 

Part of rebuilding New Orleans caused residents often to be challenged with the task of tracing home titles back potentially hundreds of years. With a community rich with history stretching back over two centuries, houses have been passed along through generations of family, sometimes making it quite difficult to establish ownership. Here's a great letter an attorney wrote to the FHA on behalf of a client: 


You have to love this lawyer........

A New Orleans lawyer sought an FHA loan for a client. He was told the loan would be granted if he could prove satisfactory title to a parcel of property being offered as collateral. The title to the property dated back to 1803, which took the lawyer three months to track down. After sending the information to the FHA, he received the following reply.

(Actual reply from FHA): 

"Upon review of your letter adjoining your client's loan application, we note that the request is supported by an Abstract of Title. While we compliment the able manner in which you have prepared and presented the application, we must point out that you have only cleared title to the proposed collateral property back to 1803. Before final approval can be accorded, it will be necessary to clear the title back to its origin."


Annoyed, the lawyer responded as follows: 
(Actual response):

"Your letter regarding title in Case No.189156 has been received.. I note that you wish to have title extended further than the 206 years covered by the present application. I was unaware that any educated person in this country, particularly those working in the property area, would not know that Louisiana was purchased by the United States from France in 1803, the year of origin identified in our application. For the edification of uninformed FHA bureaucrats, the title to the land prior to U.S. ownership was obtained from France , which had acquired it by Right of Conquest from Spain . The land came into the possession of Spain by Right of Discovery made in the year 1492 by a sea captain named Christopher Columbus, who had been granted the privilege of seeking a new route to  India by the Spanish monarch, Queen Isabella. The good Queen Isabella, being a pious woman and almost as careful about titles as the FHA, took the precaution of securing the blessing of the Pope before she sold her jewels to finance Columbus 's expedition. Now the Pope, as I'm sure you may know, is the emissary of Jesus Christ, the Son of God, and God, it is commonly accepted, created this world. Therefore, I believe it is safe to presume that God also made that part of the world called Louisiana . God, therefore, would be the owner of origin and His origins date back to before the beginning of time, the world as we know it, and the FHA.. I hope you find God's original claim to be satisfactory. Now, may we have our damn loan?"

The loan was immediately approved. 
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