Prepare to be Outraged: Your Mortgage Documents are Fake!

Lynn Szymoniak

Your mortgage documents are fake!

Prepare to be outraged. Newly obtained filings from this Florida woman’s lawsuit uncover a horrifying scheme

If you know about foreclosure fraud, the mass fabrication of mortgage documents in state courts by banks attempting to foreclose on homeowners, you may have one nagging question: Why did banks have to resort to this illegal scheme? Was it just cheaper to mock up the documents than to provide the real ones? Did banks figure they simply had enough power over regulators, politicians and the courts to get away with it? (They were probably right about that one.)

A newly unsealed lawsuit, which banks settled in 2012 for $1 billion, actually offers a different reason, providing a key answer to one of the persistent riddles of the financial crisis and its aftermath. The lawsuit states that banks resorted to fake documents because they could not legally establish true ownership of the loans when trying to foreclose.

This reality, which banks did not contest but instead settled out of court, means that tens of millions of mortgages in America still lack a legitimate chain of ownership, with implications far into the future. And if Congress, supported by the Obama Administration, goes back to the same housing finance system, with the same corrupt private entities who broke the nation’s private property system back in business packaging mortgages, then shame on all of us.

The 2011 lawsuit was filed in U.S. District Court in both North and South Carolina, by a white-collar fraud specialist named Lynn Szymoniak, on behalf of the federal government, seventeen states and three cities. Twenty-eight banks, mortgage servicers and document processing companies are named in the lawsuit, including mega-banks like JPMorgan Chase, Wells Fargo, Citi and Bank of America.

Szymoniak, who fell into foreclosure herself in 2009, researched her own mortgage documents and found massive fraud (for example, one document claimed that Deutsche Bank, listed as the owner of her mortgage, acquired ownership in October 2008, four months after they first filed for foreclosure). She eventually examined tens of thousands of documents, enough to piece together the entire scheme.

Rest here…


14 Responses to “Prepare to be Outraged: Your Mortgage Documents are Fake!”
  1. Lucy Herman says:

    I am a small homeowner in a nightmare in Missouri. God Bless everyone who fights this fight. This is my story:

  2. Fury says:

    i have deep respect for lynn szymoniak.
    her top credentials (training FBI agents in forgery) made her impossible to ignore.

    through her courage and fortitude, she exposed not only how she was defrauded
    but how we all have been defrauded. she has shared her knowledge and talents with many
    including my family.

    her segment on 60 Minutes educated the masses about how unsuspecting homeowners were conned.

    that sad truth is that swindled homeowners have not seen justice.

    many of us have shown the courts when, how the fraud was committed against us, and by whom. it hasn’t made a damn difference. we lost our homes and savings to the fraudsters.

    Rust is a cruel joke. $300 when you have lost millions of dollars and years from your life?

    we didn’t file because we knew it was just one more scam.
    a friend has been trying for months to get his check. Rust won’t tell him how much it is
    and whether it has been mailed.

    it is a total mind#$@^!

  3. Mark says:

    This is a random case few and far between. The judges are not ruling in favor of written law , they are ruling with reality. The reality is the Mortgage companies played a shell game with your mortgage over and over and over and to cover up their losses had no choice but to attempt and foreclose under ANY circumstance. If you were current or not was not an issue. By the time you got to court you were behind and that made you a pawn in their game. We can post one in a 100 stories of a victor but their are 99 other losers. It’s really sad to have a mortgage of any type today and people who are paying and current think they are safe.

    • macy says:

      the punch-line is….. most judges and courts have investments and retirement funds in MBS and- when you signed the promissory note YOU monetized it- making you the actual Creditor so you borrowed “credit” that you created and paid interest on it. LOLLLLL.
      The best joke that’s ever been told.

  4. BOBBI SWANN says:

    Sadly I agree with all who posted here and in the light what the heck does this do for us? Nothing. Lynn was already an attorney; she has the knowhow and the resources to keep HER fight going and now she has a home free and clear. Well, good for her. She won. But rubbing this in our faces is wrong! There is nothing here that wasn’t here before and nothing here that can help the ‘poor joe’ people now! We all already knew all of this and it has got us where??? Do the judges really act accordingly to procedures of law? Even now, in South Florida where it was soooo prevelant and it’s back on track again. The fast-track foreclosure process in Miami-Dade, Palm Beach & Broward counties is back!!! The federal agreement and the national agreement mean nothing….absolutely nothing! We all know the corruption and payoffs in the court system. We all know that judges are accepting bribes. We’ve all seen, heard and witnessed that behavior in court rooms and from the defense attorneys who probe the system. It’s not that it’s simply a ‘jungle out there’ but it’s like an episode from Alfred Hitchcock and ‘whodunnit’. I’m now in my 6th year of fighting a foreclosure and still the courts refuse to recognize that the lender ‘has no standing’. It’s dumbfounding, nerve wracking and like there’s no end. Horray for Lynn! She got her ending.

  5. 1ofthemany says:

    is there another chapter to this as in relief? SOS

  6. Mireille says:

    We are in the same boat with IndyMac in WA. Back in 2010 they set a sale date then cancelled it, because they didn’t notify us at all, then set another sale date, then postponed it. Then we got a notice indicating that Deutsche bank is now the note holder. Fast-forward 3 years, after being locked out of the house then given new keys, we now have a new sale date 9/20/2013 (uggghh) we’ve been trying to work with them in modifying the loan with no success but always hopeful. After all that, we have been told that we might have to start the process all over because IndyMac just sold the loans to Ocwen!

    • DENISE says:

      Don’t do it. Check the statue of limitation. If you have not paid your obligation–mortgage in 5 years (FL law) you don’t owe anybody ANYTHING for a mortgage.

  7. macy says:

    I wonder if this could be used as “new evidence” in a case???
    Anyone (lawyers) out there who can answer this??

    • 4evrmoi says:

      I know there are several attorneys who read this, but do they speak up or offer we – the VICTIMS who lost their homes due to FRAUDULENT activities by Freddie Mac/Fannie Mae, CitiMortgage, the U.S. Comptroller … and on and on … any guidelines for WHAT we CAN DO COLLECTIVELY to get SOME retribution for the injustices that were committed AGAINST THE HOMEOWNER??? NO! We simply have to keep being subjected to this – one more time – slap in the face and more “evidence” that the banks and the system ARE crooked and “sorry ’bout your luck”, people! Makes me SICK!!! Three years, a Congressman, three senators, a personal plea to the U.S. Comptroller, the County Recorder, the County Auditor, and finally, the Consumer PROTECTION Agency (yeah, right!), … and I’m back to square one with NO results! Got the PROOF! Just NO ONE who will “show me the way” to FILE a lawsuit against the EVIL FRAUDS!!!

      So, what’s the “point” of an article such as this? To twist the knife in my back and drive it a bit deeper?!!

  8. Why do u even publish this kind of upsetting information.Most homeowners r just fine the remainding still completely tossed out like old news just what do u want us to do with this information? I fought 5 yrs currently sitting in home upside down issues nit disclosed? Oh well. Bank of America sold loan to Greentree? They could care less contact hud/fed? Local / state government?? For what? The agents r in charge has anyone ever asked or talked to homeowner? Other than their hourly person stuck to take notes and blow u off!! Next!!! I have contacted attorney generals pres.banks gov of ca. They r all given lip service. And call u congressman? That is even more entertaining if u r excited about a call back dont get too excited it generally goes we r very sorry for u loss and by the way can u donate?? Donate??? To who and to what cause?? And even if u had faith in the person in charge u would be foolish to trust their go betweens. Our loan documents r fake not worth whatever language they were written on!! So that is supose to be new News!! Go read u contracts they r all worthless they only protect the person/persons that own the cobtract!! New guide lines enforced??? Whatever.

    • Bloodsoaked Patriot says:

      The only way they can make this right is return all stolen property to whome ever the last legal owner that was legally recorded and illegally foreclosed on! Of course you would have to have all your fraudulent documents to prove that indeed you where harmed buy there fraud. As almost everyone has. If they did this and I have said this from the beginning that the home owner would then get the house back free and clear but must pay to their state all lien’s and back taxes on the property! It’s a NO BRAINER to me. It would make the economy sore. And it would create and infuse money back into the private sector’s creating jobs because those returned home owner’s would now have extra money because they have NO MORTGAGE and will have pride in ownership again and would sink that extra cash in remodeling or buying other property’s THUS! THE FIX! And put all the Banker’s and Wall St. an Politician THIEF’S in jail and confliscate all of there personal wealth. Problem solved.

      • irnh3d says:

        Exactly why that will never happen, our government is far to interested in destruction of the economy to allow anything that “Might” have a snowballs chance on the surface of the sun of fixing the problem to take place.

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