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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  I have a question. I've been reading these posts for a while now, but I am still alittle confused. What are the chances of the bank/lender/broker or whoever is claiming to own your house settling out of court?

I have had a financial adviser who has gone thru all my mortgage paperwork. According to him, we have a case. We are not in foreclosure as of yet. He offered to check our paper work out so, we said why not, it cant hurt anything. 

Well it seems our note was paid the day of our closing in 2006, and the person who paid it is out of business.  We have sent letters requesting who owns our note. All we get back is copies of the note in blank and this last time we got a blank allonge.  I'm so confused.  Who the heck are we paying and why do they every so often try to put insurance on us which we have and havent lapsed? Payments have not been recorded correctly. Oh, and since we have started sendng letters they have not contacted us or sent us bills etc. I still pay by phone and they take the payments. Why would they stop contacting me?  Seems like maybe they have something to hide. We did the forensic mortgage audit.

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 did here of one women who got a settlement from the bank because of messed up paperwork.I do not know the details because she is not aloud to speak of it. These aree cases of people not being in foreclosure but rather just tryng to figure out who actually is the holder of the note.Is it safe to say that some banks knowing that they do not have the correct paperwork just settleing and haveing the owners not say anything because they dont want the press

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George Burns
How does it help you to know who owns the note?
Just by asking you will make them  aware of deficiencies or problems with their chain of title and claims etc.
I would wait and let them commit to a position.
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Thank you George for answering,I guess I`m really just wondering why they would stop contacting me as soon as they got the letter ,the letter said that the debt you claim i owe i am disputing it and it valitdy.it asked for the copies of assignment of morgage for the last 4 yrs
 a full accounting of the payments made and credit made,who own my morgage account and there address this started back the begining of the yr.they did respond but not with all that was asked,so another letter saying the same kinds of stuff,still they answered but not really.
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Oh I have already did the research as to the chain of title and stuff even county clerks to see who they say owns it.

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scatch that last comment of mine.I know I sound dumb but as I have been reading these post I know I understand this alittle.I dont agree with the quiet title thing maybe after the company comes back with an answer.cause just cause you get the title doesnt mean they cant come back after.But i do Know is that the banks/serviceing companys/brokers/ect ect are all crooks

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Texas
Jen

Per the Uniform Commercial Code Article 3 or the states equivalence, if you are paying a wrong party and the correct party shows up with a proved up note, better pony up the full amount of payments due to a provable Holder in Due Course.Wrongfully paying an incorrect party is not a defense under the Uniform Commercial Code for a correct party to collect on a negotiable mortgage note.

House  caveat:

Trying to take a home via the security securing/(caveat) the note, the Holder in Due Course of the note would also be required to have a chain of title showing secured status of the note. In many states, the chain of indorsements on the note would need to match the chain of title (assignment of lien perfection) where such assignment memorializes the mortgage notes negotiation. Additional, some states require timely perfection of the assignment of the security memorializing the notes negotiation.. NOTE: Once perfection is lost, no amount of affidavits can resurrect the loss of perfection. Short, the Note is Unsecured.

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Ok so I live in ny if it turns out the note is not secure,what then

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Also why would they stop contact?

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Bill
Jen,

There are quite a few good attorneys in NY.  My first suggestion would be to start looking for an attorney if you feel that a foreclosure is pending.  I'm not an attorney and this isn't legal advice.

The saying, "a squeaky wheel gets the oil" is very true when dealing with the Servicer and Banks.  This very often is NOT a good thing.  If you are not in foreclosure and continue to probe the Servicers often all of your correspondence is going strait to the legal department and you are starting a file.  As George said, you are pointing out faults that can be used in your defense, allowing them to "fix" these problems. 

Any information you obtain informally MAY be admissible in court, but I don't feel it will be helpful because if they show up in court with something different than what you were given per your request, they can say you were sent the wrong thing.  No harm, no foul.

I'd start with taking a look at what your overall position with the home is (equity?  default imminent? do you want to keep the house? ect..) then begin to make a plan.  The thing that kills homeowners the most is a lack of time.  Once you receive a foreclosure complaint and have only a few days to answer often it is too late to research and understand your defenses. 


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BobbieF
With the borrower current and not in jeapordy is it advisable to have an
audit of the mortgage. Can this be done without alerting the servicer?
Also if the origination of the note is done by a contractor mortgage broker
who sells the application to another mortgage company how does that
impact the borrower if there are problems later on with the paper work?
What is the impact if the application is sold prior to closing, and the borrower
in not informed until the day of closing, along with the type of loan.
being different from what was used in the application originally.
What is the impact of having MERS on the deed of trust and the 'servicer'
goes out of business with the mortgage or note being transferred to a
different servicer.

TIA
BobbieF

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Thank you Bobbie, you ask the questions better then me?
infortunatly I do not know the answers,I do know once you have the morgage audited the servicers/bank ect are alerted. But it is our right ,if they have all there paperwork in order it shouldnt bother them,the servicer.
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BobbieF
You're most welcome Jen.
The more we are educated in this the better off we all are.
I don't have the worry of a mortgage, so it's pretty much stress free time for
me to learn from others.


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BobbieF
This is a title attorney asking some very relevant questions.
http://mattweidnerlaw.com/blog/2011/10/castillo-v-deutshe-bank-how-can-mortgage-trusts-foreclose-on-properties-in-florida/

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Bill
I'm not an attorney and this isn't legal advice.............

To have any kind of useful audit you need an attorney.  The attorney should be the one initiating the audit through a reputable firm.  You can't just send someone $500.00 for them to do an audit and use some computer generated report as admissible evidence in court.  You are going to be required to have the "expert" that did the loan audit available for an affidavit and to testify in court.  Most Loan audits available on-line are a scam.  They will NOT benefit you at all in court and will not be considered.  This kind of defense can mount costs very quickly.

Many times you are far better spending your time learning the local rules, reading the cases for your jurisdiction, and attacking all of the faults in the Plaintiff's case.  You should be poking holes in the Plaintiff's complaint.  This will preclude SJ and add long delays to the foreclosure proceeding. 

I did find it interesting that there are some consumer advocates that do loan audits themselves for free to see if there are violations.  The attorney I spoke with said if she could find violations she could ask for her fees for bringing the action and would take the case at no cost to me.  I was unfortunate and she did not find enough to take the case, but it would be an avenue worth exploring in what ever jurisdiction you live in. 
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Bill
I'd also like to add, that to do a loan audit the only thing the attorney needed was my closing documents.  You should have been provided a copy at the closing of your loan.  I don't see a reason for the Servicer/Bank to be involved or have any knowledge of an audit. 


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James
Can anyone help me understand how ownership of the note and mortgage applies to a trust that files the SEC report showing a list of loans that were liquidated and an insurance payment to cover the realized loss (the total liquidated balance of the loans). The bank as trustee for the certificate holders filed for foreclosure almost a year later.  
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