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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Congress needs to investigate and the public needs to be WARNED about mortgage lenders’ practice of filing falsified IRS tax form 1099-A’s or 1099-C’s.  To illustrate, here is a portion of my statement concerning Wells Fargo’s false 1099-A, as well as a link to entire actual statement posted at:
This Financial Office mistakenly thought I filed a complaint was filed concerning my property; and on July 30, 2008, Ms. Kathy Drzewiecki sent a responsive letter on Wells Fargo's behalf. . . .As your records show, GE Capital Mortgage Services, Inc., became defunct in year 2002 when it merged into GE Mortgage Services, LLC, its "successor."  Therefore, it is impossible for foreclosure a auction to have LAWFULLY been carried out in year 2005 on behalf of non-existent GE Capital Mortgage Services, Inc.  Also, contrary to that letter, it is NOT POSSIBLE in year 2005 for Wells Fargo to continue being the "mortgage servicer" for non-existent GE Capital Mortgage Services.  Further, if my property was (impossibly) ACQUIRED by GE Capital on May 19, 2005, there is NO LAWFUL REASON for the IRS form 1099-A to exhibit Wells Fargo's name!
Another thing Ms. Drzewiecki's letter failed to state is that I initially acquired my residence property in 1993 through AmSouth Bank. For home improvement in 1999, I refinanced it with GE Capital.  I had equity in the property, and I never had a subprime loan. (Marriage failure caused me financial ruin; and crooked deals in Family Court sealed my fate.)
On the other hand, facts overwhelmingly demonstrate that, using defunct GE Capital's identity, debt collector attorney Herschel C. Adcock, Jr., fraudulently seized and acquired more than $80,000 when he flipped my property.  Also, contrary to the form 1099-A, the Fair Market Value  was not $12,000 -as manifest from the year 2005 sale price for which that property was sold in that same tax year purportedly to a third party.
A lot of foreclosed former property owners will one day discover there is a 1099-A or a 1099-C for which the IRS wants answers!  If that 1099 is replete with false information, there could be severe tax effects and a lot of needless untangling to be burdened with.

Across the country, foreclosures have been halted because "real party interest" was absent from those foreclosure proceedings. Yet (especially in Louisiana), it would not be farfetched for foreclosures to become filed in the name of 'Mary had a little lamb', and judges allow peoples' homes to become seized.

from Barbara Ann Jackson (
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This remains a common practice by Litton Loan!  Litton Loan had not given me one after the first years was falsely reported, in subsequent years Litton Never sent me one!  mmmmmmmm  
I wonder why not?  Maybe it has to do with cooking the books at Litton Loan.  I never received a 1099 even after I sold my home. 
I wonder if Litton serviced your loan for Wells Fargo, they are tied at the hip.
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This 1099 problem is not exclusive to Wells Fargo.

Any number of Fairbanks captives found the numbers did not add up properly.

The situation makes it imperative that your records are accurate to prove
borrowers and stock holders are not the only ones being screwed with.

If you run the mortgage calculator, you can provide yourself with the knowledge to take charge of this problem.

For instance 2007 mortgage calculator shows exactly what the borrower
paid or exactly what was collected.  This would be easy for you to collect
thei nformation.  The proof is your cancelled check.  If you are able to access a website re:  your loan that shows payments and balances should
actually mirror the mortgage calculator and just don't add up.

Any deviations should be easy to explain. 

I am not a fan of the IRS but they could be helpful to borrowers.
Especially if you can prove that mortgage servicers are cheating the IRS.

If they are under reporting interest payments made, you are being
harmed financially.

I sure would like to know how all the fees they collect are reported alongwith
the amount they are given in deductions.  It is purely profit and in cases
of fraudulent behavior the IRS could put an auditor right in your servicer's
office.  What happens when there is PMI on a loan that defaulted?

It is my understanding that several people reported Fairbanks for the 1099
not being accurate.

One way to handle it would be to have your tax preparer report it.  How do they prepare your taxes when the amounts are incorrect. 

The proof is 12 checks, your mortgage calculator run out for 12 months
alongwith the 1099. 

See the links below to see if you can see any ideas to help you decide what to do.  It would be nice to see the IRS get interested in the mortgage servicers rather than borrowers in these circumstances.  Not holding my


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Interestingly enough, while a 1099 is supposed to be issued for "forgiven debt" the IRS has given them an out in the actual regulations - there is no penalty for not filing one in SECURITIZED loans. Why?  Probably because the servicer would have something on record (the 1099) as a "loss" that isn't really a loss at all - particularly when they acquired the loan at a discount and are actually making money off the deal.


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Sorry.  I forgot to paste in the links.

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All the rules have changed in the last couple of months. Lending banks are now being held accountable for the trap they set, borrowing money they didn't themselves have, while using loose and illegal practices in the process. The massive lawsuit against Wells Fargo / Wachovia, Indymac / OneWest bank, Citibank, Bank of America, JP Morgan Chase, GMAC..............can actually, not only put a stop to your foreclosure, but also pause your house payments with no loss to you............

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