My investigations into the foreclosure crisis and in particular the treatment of homeowners that seek help from their lenders as led me to believe that ”The Great American Homeowner Swindle” is being played out right now in every neighborhood in America.
Lets face it America. Lenders are just what I would like to call, “THE MOBS WHIPPING BOYS.” Their the fall guys that design these incredibly exotic loans and then in turn sell them to what I would like to call, ‘THE MOB”, the servicers who in turn work for the investors, who are all in on the scam.
The more I research the more I realize that the complete 100% incompetency of these loss mitigation departments are designed to fail. Designed to frustrate and confuse homeowners. The faxes you send in, the no return phone calls are not errors or mistakes. This is all part of the plan to swindle you out of your last dollar and quite possibly your home. Their systems are designed so they know how to spot their victims, so they can generate the most profits in the least amount of time.
Don’t think for one second that you are the lenders or servicers customer!
You are their victim and investors are their clients. Ever wonder why you are treated so horribly when you reach out for help? Well, wonder no longer. You are the scam and it’s their job to shake as much money as they can from you and if you don’t give in to their demands, guess what? They sale your house, ruin your credit and then the sue you later. They get you coming (by selling you a toxic loan), they get you while your here (extorting money and fees from you), and then they get you when you leave (selling your home form under you and then suing in court for the fees you didn’t pay).
They prey on a homeowners worst fears.
What’s a homeowners worst fear in regards to their home? Losing it, right? They play on your worst fear by using that as a tool to get into your bank account and extort as much money as they can.
How do they do this?
* Not accepting a late payments and then tacking penalties and fees to these payments
* Manipulating the real date on when a payment was received in order to fraudulently create late fees
* Claiming lost paperwork and faxes, thus adding more time and late fees to your amount due
* Not offering help to borrowers who clearly are in trouble before they get in trouble so you can be forced into their scam and wicked web of deceit
* Forcing bogus insurance policies to be place on the property by claiming the homeowner didn’t have adequate insurance and then tacking on their own fees and late fees to this bogus claim
The key ingredient that makes the ‘”SCAM” so successful is the “Notice of Default” which in turn leads to the “MOBS” most successful extortion tool, “The Forbearance Agreement”.
Once a notice of default is filed, then the scam accelerates and gets really aggressive. You are now on their radar and they now have the powers to use whatever extortion tool they desire to get as much money as they can. Making you jump through endless hoops, only to have to jump through more. If you have any equity left, they will suck every last drop in late fees and now legal fees.
Many homeowners who find themselves in this situation will be forced to sign what is called a forbearance agreement in order to save their home. This is their most profitable extortion tool because it is very profitable for them. It gives them legal clout to do just about whatever they chose to collect the money that they are FRAUDULENTLY are trying to FORCE you to pay.
Many times when you sign this agreement, more fees will be added and the agreement may contain provisions where by signing the agreement, you will lose all your rights to legal protection that include the rights to sue for fraud or misrepresentation.
The more and more I research and network with homeowners that are going through this very same scenario, the more I realize that it is all part of, “The Great American Homeowner Swindle”.
Fleecing people out of their money and now, out of their homes!
Please help me stop this madness and join my forum and let your voice be heard.
This forum is designed where people can meet, share stories, information, search for a non-profit in you area and also ask experienced real estate and mortgage law attorneys questions and get them answered.
There is no website like it. Please get involved in my fight for the American homeowner. The more people share their story, the more ammo I can use to promote change and pressure on these lenders that are treating homeowners like dirt.
WE CANNOT CONTINUE TO LET THIS HAPPEN AND WE NEED TO HAVE OUR VOICE HEARD!
Moe
Founder & Homeowner Advocate
LoanSafe.org
LoanWorkout.org
951-271-6283 Phone
800-734-8819 Fax
Moe at LoanSafe.org Email
{ 8 comments… read them below or add one }
The troubled consumer home loan restructuring process has to have some way to accomodate the poor credit health of most of the folks in default on their ARMs. We should create these adaptive underwriting standards.
Yes, I agree. Let’s not leave it in their hands because we know where that would put the consumer.
Who exactly own and manage the servicers are the investors who hire the servicers via pooling and servicing agreements which are very long 500 to 1000 page contracts on file with the SEC (unless private equity)and these contracts are where we can force change.
They are already full of requirements for troubled loan servicing and workout/modification obligations that the servicers are supposed to follow, but the servicers are not incentivized to do anything but service the defaulted loan into foreclosure. Now, the servicers are the couriers of the legal releases being forced on subprime victims to get workout relief that require the borrower, as a condition of accessing the workout to waive all claims, past, present,and future the servicers, the lenders and the investors who claim to own the loan, although that is a different story. It is debatable whether the trustees of the mortgage backed securities can legally establish that they own these loans.
Many times the lenders didn’t actually, really transfer ownership of the loan to the trust in a way that complied with the statute of frauds or other legal requirements under the laws that regulate contracts involving interests in real property or with the laws and regulations that regulate securities. These loans were “sold” with recourse, but when the trusts asked for performing loans, the lenders could not produce and almost 100 lenders filed for bankruptcy or shut down. The servicers are conflicted often because they are forced to buy into the riskiest tranches of the securities and because they can collect without disclosure extra super duper default fees for doing “special” loan servicing of loans in default.
The servicers get paid more for servicing a loan in default as opposed to a performing loan. The PSAs don’t require the servicers to account for these extra “special” default loan collection fees to anyone. We can force a national process for workout that is process driven and accessible via the internet and that requires subprime ARMs that meet specific criteria (has to be for a homeowner living in the property) to “fix” at the teaser rate and do it now.
Right on again April!
The key in what you said (because anyone who doesn’t understand some of the lingo above) is the servicers get paid more when a loan is in default by collecting these “extra” fees that do not have to account for. It makes perfect business sense to cause homeowners to go into default and then collect these extra fees and essentially get rich off of the fees.
Hell, what do they have to gain by helping? Didly squat! They gain by homeowners delinquencies and defaults.
Also like you said, there is a big issue in regards to actual ownership and the validity of the ownership of the theses notes. Homeowners can use that as a defense of a notice of default filed by a servicer and contest its lawfulness by making the argument that they are not the “legal” and “proper” party filing the suit. Do they not have to produce the original note with the original borrowers signature on it? Theses mortgages were usually bought and sold many times, so that would be impossible in some cases.
I am very interested to hear more from you and also a possible collaborative effort. How can we force this effort when it seems as if they operate under the rules of the “wild,wild west”?
Here is how I see it. At some point the lenders/investors will have to deal with the the basic math of the situation. A $300k loan that goes bad and is only supported by a house that can sell for $200k is worse than changing the 8 or 9 or 10% current rate (which is moot because it wont be collected for long)to 5 or 6%. Isnt it really that simple? Of course, the common sense approach is often rejected because someone feels they can somehow still do better by some other means. What am I missing???
T
The basic math is lenders and investors lose but servicers gain. Your loan is most likely being serviced. Servicing companies make money be delaying and using stall tactics to cause you to be delinquent. Sometimes even telling you that you have to be late, in order to collect more fees and penalties.
Often, the actual lender or investor is unaware that these servicers are using these mob like tactics to extort money from homeowners.
What we have here are three sets of people trying to make money here. The lenders, investors and the servicers. Unfortunately the servicers are running the show and as long as they keep using these mob like tactics, homeowners will be the ones who suffer.
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