MBA panel: Tread carefully when going after strategic defaulters

While it is no easy feat to determine if a homeowner defaulting on a mortgage is a strategic defaulter, it’s also no simple decision for servicers to decide whether to pursue a deficiency judgment against the homeowner.

Panelists on a strategic default session at the Mortgage Bankers Association’s National Mortgage Servicing Conference & Expo warned the audience to tread carefully.

Howard Crane, managing attorney for Fein, Such and Crane in New York, said the more financial information that a servicer has, the better equipped the company will be to determine whether it should seek a deficiency judgment — and whether it might be successful.

Check out the rest here…

But, before you go, let’s talk about what Mr. Crane just said.

“The more financial information that a servicer has, the better equipped the company will be to determine whether it should seek a deficiency judgment.”

Focusing on the underlined portion…

Now where do you think they get this “financial information?” From you of course, when you send in all your financials for your loan modification that they always seem to “lose.”

This has always been a theory of mine, they don’t want your information just for a loan mod that you will most likely not get, they want it so they know who they can go after once the foreclosure is completed. To confirm this theory, some on the front lines have been watermarking their loan mod submissions with language such as “For Modification Purposes Only.”

Do you know what I have heard in numerous cases? The servicer will not accept the paperwork with the watermark.

Now why would that be???

Oh, and btw, don’t forget to read the rest of the above article here…

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4closureFraud.org