It is about time that these lawsuits start to hit our court system. I am not a big fan of court and everyone suing each other. But what needs to be done, needs to be done and it’s all for the better. Especially against these mortgage servicing companies that are abusing homeowners and charging bogus fees.

Attention servicing companies: Stop kicking homeowners/people when they are down, because you are being watched and you will pay for the predatory absuses that you are engaged in. Sooner, rather than later.

The Sydney Herald:

The US Trustee, a unit of the Justice Department that oversees the bankruptcy courts, filed suit against Countrywide over a 2005 bankruptcy filing involving John Wayne Atchley and Robin April Atchley, home owners in Waleska, Georgia.

Countrywide, which serviced the loan, levied improper fees on the borrowers and claimed they were behind on their mortgage on two occasions when they were not, the trustee’s lawsuit contends.

“Countrywide’s failure to ensure the accuracy of its pleadings and accounts in this case is not an isolated incident,” Donald Walton, the trustee for the Atlanta region, wrote in a brief. “In recent years, Countrywide and its representatives have been sanctioned for filing inaccurate pleadings and other similar abuses within the bankruptcy system.”

FYI homeowners and anyone else reading this: THIS HAPPENS ALL THE TIME!!!!!

Yes, bogus fees and fraudulent charges are running rampant in the mortgage servicing industry. It is time to fight back against these thugs and to use the law to send a message to these servicing companies.

More from the Herald:

The US Trustee had previously intervened in cases involving Countrywide that were pending in bankruptcy courts in Florida, Pennsylvania and Texas. But the suit is unusual because it is being initiated by the trustee on its own.

“This case is proof positive that the US Trustee intends to enforce creditor abuses against consumers in bankruptcy cases, and I welcome that,” said Max Gardner, a lawyer in North Carolina who represents troubled borrowers. “I can’t speak for the United States Trustee, but my opinion would be that they filed this proceeding because they are going to seek a national remedy against Countrywide.”

According to the lawsuit, the Atchleys filed a Chapter 13 bankruptcy in October 2005 and set up a mortgage payment plan, which was confirmed by the bankruptcy court that December. They began making payments to Countrywide as required by the plan. Two months later, however, Countrywide filed a motion with the court seeking permission to foreclose on their home, claiming the borrowers had failed to make two payments and were in default. The borrowers supplied the lender with receipts and other documents showing that they were up to date with payments. Countrywide then withdrew its foreclosure papers.

But in May2006, Countrywide again filed papers asking for permission to foreclose on the Atchley’s property, maintaining that two payments had been missed. The borrowers supplied Countrywide with proof that they were up to date and the lender withdrew its foreclosure action.

The couple sold the home in May 2007 and Countrywide was paid almost $US200,000.

But the company improperly accepted additional payments from the bankruptcy trustee overseeing the loan after the sale, even though they had received a “satisfaction of mortgage” acknowledgment from the company. Countrywide did not return those payments for more than three months after they were identified, the trustee claimed.

“By accepting the plan payments to which it knew it was not entitled, and failing to promptly return such payments, Countrywide has acted in bad faith in the conduct of litigation before the court in this case that the rules are not up to the task of adequately sanctioning,” Mr Walton wrote.

He asked the court to enjoin and restrain Countrywide “from engaging in bad faith and abusive practices” like those that occurred with the Atchleys.

Mr Gardner said that if the bankruptcy court in Atlanta entered an injunction against Countrywide in the Atchley matter, it could be enforced against the company by bankruptcy courts across the country if they found similar conduct in their jurisdictions.

“The US Trustee could file a motion for a contempt hearing to find out whether Countrywide had violated this court’s order by something they did in New York or California,” he said. “I really think that this is potentially a significant case.”

What can a homeowner do to fight back against Countrywide and other predatory servicing companies? The answer is actually quite simple and let me share some of these tips with you from HUD.

Information on Section 6 of RESPA and loan servicing complaints is from the HUD website.

What a homeowner can do is request in writing what is called a “Qualified Written Request” (QWR). There is a little know law that protects homeowners against questionable fees, entries, documentation and a “life of loan history” (all fees and payments ever made on your mortgage) from your lender. Under Section 6 of the Real Estate & Settlement Procedures Act (RESPA), a borrower can request that the lender document all claims for fees.

Loan servicing complaints

Section 6 provides borrowers with important consumer protections relating to the servicing of their loans. Under Section 6 of RESPA, borrowers who have a problem with the servicing of their loan (including escrow account questions), should contact their loan servicer in writing, outlining the nature of their complaint. The servicer must acknowledge the complaint in writing within 20 business days of receipt of the complaint. Within 60 business days the servicer must resolve the complaint by correcting the account or giving a statement of the reasons for its position. Until the complaint is resolved, borrowers should continue to make the servicer’s required payment.

Here is a smaple Qualified Written Request.

IMPORTANT: Protection to your credit rating

(3) Protection of credit rating

During the 60-day period beginning on the date of the servicer’s
receipt from any borrower of a qualified written request relating to
a dispute regarding the borrower’s payments, a servicer may not
provide information regarding any overdue payment, owed by such
borrower and relating to such period or qualified written request,
to any consumer reporting agency (as such term is defined under
section 1681a of title 15).

Would you like some more free foreclosure and mortgage help. Then please visit our homeowners forum at www.LoanSafe.org where 28 people have saved their home with the free advice offered in our unique and safe community.

Let the American people unite and fight back against these abuses by these mega corporations that need to be taught a lesson!

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