KABOOOOM | Plaintiff’s Petition – American Home Mortgage Servicing vs Lender Processing Services (LPS)

Looks like AHSMI just opened Pandora’s box.

From Naked Capitalism…

The lawsuit rather matter of factly makes a stunning admission (note that PSA here means Professional Services Agreement, and it was the contract between AHSI and LPS, click to enlarge):

Did you get it? They said that these procedures were standard between the two companies, which was to “..to memorialize the transfer of ownership lender to the securitization trust” right before initiating foreclosure. If you are a regular reader of this blog, you know that is impermissibly late. The note and mortgage had to get to the trust by a clearly specified date, usually 90 days after closing. As we’ve written numerous times, in the overwhelming majority of cases, the securitization entity was a New York trust, and New York trusts are like computer code, they can only operate exactly as stipulated. The exception was trusts by Chase and WaMu, which did allow for the originator to serve as custodian for the trust.

So AHMSI has just admitted that all of its foreclosures done with LPS were completed by the wrong party. In Alabama, wrongful foreclosures are subject to statutory damages of three times the value of the house, and recent cases have awarded much higher multiples of the property’s value. This little paragraph is a litigation goldmine for the right attorneys. I hope they have fun with it.

Who wants to bet that AHMSI isn’t the only one that had foreclosures done with LPS that were completed by the wrong party?

Be sure to read the petition in full.

This is going to be fun!




American Home Mortgage Servicing v Lender Processing Services

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9 Responses to “KABOOOOM | Plaintiff’s Petition – American Home Mortgage Servicing vs Lender Processing Services (LPS)”
  1. Hell No, No More Bail-OUTS says:

    Let me see now. The mortgage assignments were never done when they should have been done. This SHOULD have resulted in the need to use other methods than foreclosure to collect on the debt.

    Now they are fighting their lackey who did the dirty work of attempting to dummy up documents for them. Even if the assignment were properly generated by the actual original company, that does not ‘fix’ the issue with the Pooling and Servicing agreement on most loans. The assignment was way to late.

    So how is this suit going to help AMSI? Shouldn’t they have to show that if LPS had done the job correctly, not using ‘surrogates’, that the foreclosures would have been valid?

    Since the foreclosure is patently invalid due to the pool having long since closed, how can they show that LPS is to BLAME for the inability to foreclose?

    • incognito123 says:

      Geez, what’s the matter “Hell No” you can’t jump the Empire State Building in a single leap?? 🙂
      In their twisted heads, they seem to think LPS COULD have FIXED their problem……ugh, these people are idiots and yet, they did get away with it for years, so just how stupid are they? And to make matter worse, most Americans STILL believe the BS they are being fed that these are ‘technicalities’ and ‘mistakes’ and ‘minor errors’, and, and, and, YOU NAME IT……most Americans, even with the infighting like this STILL believe the horse sh%^& they are being force fed…………

      • Hell No, No More Bail-OUTS says:

        @ incognito123:

        I missed that class in leaping when I was in school.

        At this stage of the ‘game’, both companies are risking providing even more juicy fodder for the lawsuits from the rest of us.

        I hope they don’t wise up and either settle or drop the suit.

    • lvent says:

      Hell no no more Bailouts, I was in fraudclosure court yesterday and guess what?..In my answer to the complaint I called them out on all of their fraud.. since then they filed an amended complaint and are trying to add another defendant to the case..I answered the amended complaint and they filed to strike my answer. I have since found an attorney but he told me to go to court and ask the judge for time for my attorney to answer the strike..While waiting for court to start I began to look through the most recent filing and the docs for the MISSING ALLONGE…that they removed from the file and low and behold I found they stamped over all of the fraud and forgeries from the original fraudclosure complaint! When they called my case the attorney immediately said that he had no problem with my amended complaint but I did not follow protocol!!! I asked the Judge if I could speak and he said yes. I said your honor, I did not have an attorney at the time I filed the complaint but I have since found one..and by the way your honor there is fraud in this most recent filing, they stamped over the fraud and the forgeries..the judge told me you will want to show that to your attorney he also told me it was good that I found an attorney..He gave us 28 days to answer the strike..I thought maybe since Fisher and Shapiro and PHH who after already getting caught once filing 1700 fraudulent affadavits and removing signature pages from filings and admitting to it, that maybe the judge would get mad and dismiss but not today. Just wanted to give everyone a heads up that the more fraud you find the better. An attorney told me that people need a qualified third party to find and swear to the fraud and forgeries in court.. He also told me that the crooks want to start doing principle write downs to half….I told him there is too much fraud here and I want a full loan recission and a clear title to my house…plus monetary restitution…and they can all eat their shit they created. They put my family through hell and it was intentional..The attorney also told me they never lent out any money…The tables are turning my friends..

      • That’s right I vent…the banks never lent any money….lawful money that is. No money exchanged hands. And if I have this right…if you received a check …it was unlawful…cause the check was written on the banks credit…and it is illegal for banks to lend their credit….yet no checks ever bounced or sent back. If I am wrong on this…someone correct me.

  2. Mario Kenny says:

    I love when the monsters begin to back bite each other, we can sit back and let them solve our cases for us, these fools never knew that some ragtag homeowners would be able to bring them down with nothing short of persistent rants. I recall in the beginning we were all made out to look like fools, now they are telling each other that they are the real fools. Well look who is laughing now babies, talk about fools and their money, I hope that Texas millionaire loses his shirt in all this, as for LPS? well I wish them hell fire and brimstone.

    • housemanrob says:

      Hey Mario, when did we start winning…..anything substantial! Now is not the time to become delusional……..they will find a way to weasel their way out of this jam!

  3. foreclosurefight says:

    Can you also include copies of the Exhibits referenced in the complaint??

Check out what others are saying...
  1. […] Response: The report and several interviewees spout industry propaganda decriminalizing and renaming fraud as “surrogate signing”, and “signing under and multi-corporate-identity corporate resolutions”, which are retooled document fraud tactics that are laid out in great detail in a lawsuit against LPS by LPS’s own client, AHMSI. See American Home Mortgage Servicing vs Lender Processing Services (LPS) […]

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