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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We're in Colorado and are in the unusual situation of not being in foreclosure. We're both on disability but working part time and paying the bills.


Before 2005, we were flipping houses to make ends meet, but then of course that ended abruptly. Fortunately we were able to find some part time work since then, which has sustained us.


But we put $25k into this house in 2005 and wound up with a BAC first mortgage ( ARM ) and a GMAC second at 9.5%, BOTH of which now appear to be fraudulent. No clear title. Neither of these companies appear to have any legal standing to collect mortgage payments from us, since 2005! In fact, if one looks at the property records for this place and NO mortgage liens are even listed from these companies.


We don't see ANY evidence that either company has filed ANY mortgage on the property.


The outrage comes in, when we realize that because of the fraud allegedly committed by these companies and MERS, we may never see, or get, clear title to our home or be able to legitimately sell it. Not even to mention how under water we are, so we cant refi.


We're terrified that if things hit the fan globally soon, which they likely may, we could see the ARM skyrocket and lose our home!


We're also concerned by the potential fact that these companies may have no legitimate legal standing to even BE collecting mortgage payments from us.


We just don't have the money to fight them, but are wondering if we could find an attorney on contingency, who might even get us our payments all back, because of this, potentially $80k-100k!


In researching all this, I found:


http://www.huffingtonpost.com/l-randall-wray/merss-smoking-gun-part-1-_b_794713.html


http://www.huffingtonpost.com/l-randall-wray/post_1423_b_795802.html


http://www.huffingtonpost.com/l-randall-wray/post_1440_b_797563.html


http://www.bills.com/quiet-title/


The problem is that we're both disabled and don't have the money to sue them. Have any law firms won any cases like this, in Colorado? Is it possible someone here might help us?


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Moose
Welcome to the forum, folks.

This is not legal advice and any advice you find here shouldn't be considered authoritative - we're facing an invasion of oddities of late around here with all manner of confused theories and specious advice.

But to answer at least one of your concerns, states vary in terms of recording requirements AND it may be that BAC and GMAC have sold the servicing rights and/or mortgages and notes to someone else.

For a start, who does have liens filed on the property?

Moose


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It appears that there ARE NO liens filed, with the county assessor's office, for this property!
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Texas
Melissa2011B might consider reading the following.

http://www.huffingtonpost.com/l-randall-wray/why-mortgagebacked-securi_b_802600.html
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Moose
Melissa2011B wrote:
It appears that there ARE NO liens filed, with the county assessor's office, for this property!


A quick look and in Colorado, the assessor's office is not be the same as the county clerk/recorder's office.

Moose

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The real property records are at the Assessor's.

An example:
http://www.co.jefferson.co.us/ats/displaygeneral.do?sch=050127&offset=0
Look at the warranty deed there, it shows various liens, I think.

Here's one:
https://landrecords.co.jefferson.co.us/RealEstate/SearchDetail.aspx?docId=88112606&ms=0

I've seen some with liens from mortgage companies, but not ours.



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Wait, I just started digging in the county clerk recorder office, using my last name. What does a release of deed of trust do?

I'm seeing some kind of trail on my name, up until 2006, then that's it. We started with Greenpoint in 2005. Then in June:

                       
:06/30/2005 07:30:00 AM
Document Type:RELEASE OF TRUST DEED

I also see Encore Bank having an assignment in 2005, but nothing after that. I bet that's when BAC and GMAC took it up, and the MERS system.

How weird.



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Ok, I got to the bottom of this in the property records. Would it be unwise to post my real name here and show you all what I found?

We bought the lot for this property in 2003 and had a modular house put on it. We can see all the records filed at
https://landrecords.co.jefferson.co.us/RealEstate/SearchResults.aspx
until 2006, then they abruptly end!

There are assignments to Encore Bank and Recon Trust ( which we've never heard of! ) in May and June of 2006, then nothing. So HOW did BAC and GMAC ever get title to this place, or standing to collect mortgage payments from us?!

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Moose
Melissa2011B wrote:
Ok, I got to the bottom of this in the property records. Would it be unwise to post my real name here and show you all what I found?

We bought the lot for this property in 2003 and had a modular house put on it. We can see all the records filed at
https://landrecords.co.jefferson.co.us/RealEstate/SearchResults.aspx
until 2006, then they abruptly end!

There are assignments to Encore Bank and Recon Trust ( which we've never heard of! ) in May and June of 2006, then nothing. So HOW did BAC and GMAC ever get title to this place, or standing to collect mortgage payments from us?!



Whew - for a minute there I was worried you would rely on what you hadn't been able to find!

First, yes, it would be VERY UNWISE to post your personal information here. The forum has been around long enough that it is routinely visited by entities looking for information they can use against a borrower.

Recon Trust is a "Special Servicer" that focuses on default servicing, foreclosure and REO in several states. It is now a subsidiary of BofA but in 2006 it was still part of Countrywide. It was recently sued by the State of Washington , claiming it “has failed to comply with the Washington Deed of Trust Act, RCW 61.24, in each and every foreclosure it has conducted since at least June 12, 2008.” The company is also accused of violating the state’s Consumer Protection Act.

You might also consider that there could be more in the actual records at the clerks office - I suspect some documents may have been recorded as IMAGES and there is a fee for getting those online.

If you are in the clutches of ReconTrust, you have been targeted and I would suggest you or someone pay a visit to the clerk's office ASAP.

Moose




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No, the record was from 2006 and was probably from Countrywide, which held out mortgage back then. We haven't been targeted, we're paying the mortgages all this time, as I mentioned.



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Moose
Melissa2011B wrote:
No, the record was from 2006 and was probably from Countrywide, which held out mortgage back then. We haven't been targeted, we're paying the mortgages all this time, as I mentioned.





Melissa - you said originally your first was with BofA - when did Countrywide come into the picture?

Again, ReconTrust's primary business is foreclosure and managing REO properties.

Moose

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I'm trying to piece this together, though a forensic loan audit could explain things better.

In February 2005, the construction loan converted over to Greenpoint as the First mortgage, I think, and there was a Second mortgage too.

In 6/2005 the next thing was a RELEASE OF TRUST DEED with our names and PUBLIC TRUSTEE on it, no mortgagors - released to my name.

in February 2006, deed of trust says ENCORE BANK.

In May 2006, another RELEASE OF TRUST DEED to Recon Trust.

June 2006: ASSIGNMENT OF DEED OF TRUST                                                                                                                                                                                                                                                                                                                                                                                                                
       

RESIDENTIAL FUNDING CORP                                                                                                                                                                                                                                          
                                                                                Returnee US Recordings                                                                        



And that's it, nothing after that is recorded.

Somewhere along the way we were informed to make 1st mortgage payments to BAC and 2nd mortgage payments to GMAC.

That was probably when they went into MERS for slicing and dicing into the mortgage backed securities mess?

No wet ink?

The big question now, is whether we can demand wet ink notes in Colorado courts and if they cant produce, ask the court for quiet title and GET IT?

If the courts uphold something that's bald faced illegal, I don't know what we can do then. ( except maybe abandon the place? )

So our main concern would be; How much would an attorney cost to do this for us, including the forensic loan audit? And; Have any attorneys IN Colorado fought and won something like this, without bankrupting the clients with fees and costs? Can it be done in a short enough time period where we can hold out?

And of course, are we entitled to recoup all of our loan payments, going back to the time when they no longer had standing to collect them from us?

THAT comes to around $72,000!




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So anyway, I need an attorney for this. If I were advertising for one right now, after all I've been learning, here's what I'd say ( below ). How do I find a local attorney like that?:

We have a clear cut case of mortgage servicing fraud here, with BAC and
GMAC. We are NOT in foreclosure.

Have you filed and won quiet title actions when companies like this cannot provide wet ink mortgages?

We don't want a jury trial, just a court action, to demand that these companies produce wet ink mortgages or give us quiet title. That simple!

I can show you forensic evidence in the public records, right now.

And if we win that, we understand that we will then have grounds to sue these companies for about $80,000 in back mortgage payments that they fraudulently collected from us.


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Moose
A wet-ink mortgage isn't always required. It's a state issue so start with your local legal-aid for a free referral. You may learn enough to find out if it's worth the cost of an attorney.

Moose


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