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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Hello there.
Here is my situation, and I dont know what to do:

My servicer has "assigned" me a "servicer representative", in order to
supposedly work out a "loan mod". I received a letter stating so,

The problem is that I know there is fraud in my loan, even from the loan origination,
(I have proof of that)
so, Here is what I would like to tell my new "assigned servicer representative":

"Ok, servicer, I would like to work with you, but before we start, I would like
(or I demand), that you show me evidence that you are the holder in due course
of my loan..."    then we can work out  a loan mod."

And I will communicate with my sevicer only via certified mail, no phone

one important thing is that I do not want to look as deadbeat in front of the judge..

(because, down the road, the real loan owner can come to knocking my door)

So what are your insights regarding to this matter?



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Bill

It appears from your brief post that the Servicer assigned you a rep as a point of contact for you under the Making Homes Affordable Program.  They are required to do this.  They will most likely not be able to help you with any information other than the modification.   If you insist on refusing to providing the documents they need for a modification for any reason, you will NOT be considered for a modification and any foreclosure/sale will proceed.  I think the forum for challenging the ownership/who is the holder of your note/mortgage is in court and NOT while you are looking at an administrative remedy to AVOID foreclosure.  The link is the Servicer's Guidelines for the HAMP modifications.  While it is very long, there is a lot of useful information.
  
Quote:

The problem is that I know there is fraud in my loan, even from the loan origination,
(I have proof of that)



If you THINK you have "proof" of fraud involving your loan you really need to hire an attorney.  Proving with ADMISSIBLE evidence and the TESTIMONY OF AN EXPERT your allegations of fraud while following the local rules can be a very complex process.  This would be a difficult process for a Pro Se litigant.

https://www.hmpadmin.com/portal/programs/docs/hamp_servicer/mhahandbook_33.pdf
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    What you do next will depend on what State you are in. Is the security
instrument a mortgage or a deed of trust? Is the Note a negotiable instrument or is it part of a purchase money mortgage contract? Is the lender
named on the loan documents the real source of the funding, or a "straw man" defunct corporation used to hide the true source of the funding?
    If it is a MERS mortgage, I would go to the MERS website and see if the
investor is indicated along with the current servicer.
    Other factors to consider would be the Homestead exemption statutes
in your State and whether you have the means to escrow the monthly payments during the course of the battle, in case you lose. (Also be aware
that even if you lose, Chapter 13 BK would allow you to spread out the
arrearage over 36 months or if it's an investment property, do a "cram down"
of the balance owed.
    Playing defense means waiting for them to foreclose. It means the best
case scenario is you block the attempt with a dismissal but then they will
try again.
    Playing offense means you go after them first and try to win the game
with a Quiet Title action (or recission action).
    Either way, it pays to have an experienced attorney who is certified in
Federal Court, because that is where it might wind up if you have a really
good "cause of action". The pretender lenders know most attorneys are
not certified for Federal Court and the rules are stricter, so that's where
they will transfer it and hope for an easy victory.
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Thomas
Also keep in mind that a modification can be considered a win if you get favorable terms etc. But watch out for the what I call unconscionable clauses they put in modification agreements. Things such as you forever irrevocably waive any right to take action against any prior lenders or servicers....or waive any rights for that matter. You can and must cross those out before signing anything or it will come back to haunt you.

I agree with Bill that in this step of the process you can always do a QWR for information but if you do not "play ball" they will simply not offer you a modification. Then your only alternatives are pay or go to court which would be the proper place to challenge ownership.

I am just finishing up a 3+ year battle myself and it is not for the faint at heart. There is a ton of useful information here to guide you along the way in whatever your choice is. But by far my main recommendation is to get a knowledgeable attorney on your side as soon as possible. Even the smartest of us will make mistakes and this is one area you don't want to make mistakes in, trust me.

No, I am not an attorney, and no, this is not legal advice.

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    Finding an honest, competent attorney is a job, in and of itself. You must
first educate yourself concerning foreclosure defense, quiet title and bankruptcy BEFORE you even talk to an attorney so you can have an intelligent conversation and explore ALL your options before you begin to
fight.
    One also needs to verify their experience. An incompetent or dishonest
attorney is worse than no attorney at all as I and many of my students have
found out the hard, expensive way. Also, it pays to get more than one opinion on the best course of action.
    Since the servicer probably does not own the loan and will use forged
or counterfeit documents to try and win their case, you already have an
advantage if you go the Quiet Title route. Unfortunately, most people don't
want to pay the filing fee and are afraid of US Federal Court. In my opinion
operating in US Court might not be that hard if you first study the federal
rules of civil procedure. Also, subscribe to PACER so you can study other
"290" cases in your jurisdiction. That will help you understand the process.
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James
Can someone help me understand the quiet title approach when a debt (often a large one) is owed on the property? As far as I can find out, the plaintiff in a quiet title case must pay off the loan before title will be quieted. If homeowners could do that, then foreclosure wouldn't be seriously complicating their life. What am I missing here?



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James,
    What you are missing is that the lien may not have ever been perfected
because the entity named on the loan documents was not the "real" lender.
    Also, it may have gone out of business without ever having lawfully transferred the security instrument.
    Ask yourself this question, "If somehow I had the cash to pay off the loan,
who would I pay it to? And "Who would issue the satisfaction?"
    Many times the entity named on the loan documents was an "unlicensed
straw man" standing in for the "real lender", which preferred to remain hidden
from the investors on the secondary market who would eventually buy the
debt.
    If you were the real lender, and you intended to sell the same Note multiple times to multiple different investors (counterfeit Notes) would you
want your name on the loan documents? or "Would you place the name of
a bankruptcy remote "straw man" on the loan documents?" In many cases
this is what the original lender did. IT'S CALLED MORTGAGE FRAUD!
    If this happened, you should be able to expunge the security instrument
from the public records by a quiet title action.
    As far as payment is concerned, if this kind of fraud happened, then the
original "true lender" was paid multiple times over, whereas the "straw man"
pretender lender was never owed anything to begin with because it never
lent anything to begin with. Did MERS ever lend any money? So how can it
be the mortgagee? Inquiring minds want to know!
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Bill
You are far better off getting an attorney to explain the pros and cons to quiet title than listen to Mike H's garbage.  He has no idea what he is talking about.  The requirements of quiet title are determined by your local jurisdiction and vary from state to state.  To incorrectly file a lawsuit in court can be a very costly endeavor.  You will be required to pay the oppisiton's fees which can be substantial.  In a suit that you file, YOU will have the burden of PROOF.  Mike H NEVER posts a case to support any of his garbage.  He is regurgitating wing-nut theories off the web and some even more crazy theories of his own that are NOT based on ANY statutes or cases.  Run away.

BUT, lets take a look at Mike H's post anyways.........

Quote:

What you are missing is that the lien may not have ever been perfected
because the entity named on the loan documents was not the "real" lender.



The entity that closed your loan and is named on the Note and Mortgage is the lender.  It does not matter where they got the money from.  Many business use lines of credit and obtain financing to give you financing.  That's how banks stay in business.   Banks even "borrow" money from the government to make loans.  This argument will get you laughed out of court and a bill for the oppisition's attorney fees. 

Feel free Mike to post a case or two that show I'm wrong.

  
Quote:
Ask yourself this question, "If somehow I had the cash to pay off the loan,
who would I pay it to? And "Who would issue the satisfaction?"


You make your payments to the lender on the note.  If the lender decides they want you to make the payments to someone other than the lender (ie. a servicer) they will give you documents to sign (usually at closing) so you understand that you should pay a 3rd party.  The satisfaction would come from the owner of the Note. 

Quote:

Many times the entity named on the loan documents was an "unlicensed
straw man" standing in for the "real lender", which preferred to remain hidden
from the investors on the secondary market who would eventually buy the
debt.



While this would give you an interesting defense if the lender was conducting business in your state without state authority, it just isn't happening. 

Could you post 1 (one) entity that was an "unlicensed straw man" and was creating mortgages in a state?  Just one of the "many".

Quote:

Did MERS ever lend any money? So how can it
be the mortgagee? Inquiring minds want to know!




MERS is NOT the mortgagee.  MERS is the NOMINEE for the lender (the true mortgagee) and holds bare legal title (see Landmark).  The courts have caught on to this and are starting to issue decisions that ADVERSELY affect MERS.  They are holding, as the court did in Landmark, that if you send notice to the note holder/original lender you do NOT have to send notice to MERS.  This is supported in many of the Fanny/Freddie standard mortgage forms.    This is VERY problematic to the current note holder if it is anyone other than the originator.
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Totally agree with BILL

I miss  William Roper

The quality f this forum is being decreased for people that put **their** interests first,regardless of what might come out from their "(non legal) advice."






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