Servicers Continue to Wrongfully Initiate Foreclosures: All Types of Loans Affected
February 22, 2012
A February 2012 survey by the National Association of Consumer Advocates (NACA),i the National Consumer Law Center (NCLC)ii and the National Association of Consumer Bankruptcy Attorneys (NACBA)iii demonstrates that mortgage servicers continue to initiate foreclosure proceedings improperly, either while a homeowner is awaiting a loan modification or due to improper fees or payment processing. Consumer attorneys from 45 states reported representing thousands of homeowners improperly foreclosed on within the last year.
This survey follows a December 2010 survey by NACA and NCLC that found that servicers often wrongfully initiate foreclosure. A copy of the December 2010 survey results is available at http://www.nclc.org.
Foreclosure Initiation and Sale During the Loan Modification Process Is Still a Substantial Problem
- Over 90% of the respondents report representing a homeowner placed in foreclosure while awaiting a loan modification in the last year.
- Homeowners were improperly foreclosed on while awaiting both HAMP and GSE loan modifications: of the survey respondents that represent homeowners placed in foreclosure while awaiting a loan modification in the last year, 85% represent homeowners awaiting a HAMP loan modification; 66% represent homeowners with a loan owned by Fannie Mae or Freddie Mac.
- Over 80% of the respondents represent homeowners where the actual foreclosure sale was attempted while awaiting a loan modification in the last year.
- In total, survey respondents reported representing over 3,700 homeowners placed in foreclosure while awaiting a loan modification in the last year.
Payment and Fee Abuses Fuel Foreclosures
In addition to abuses in the modification process, the survey also highlights abusive fees and improper payment processing. In the past year, consumer advocates have documented a pattern of shoddy, abusive and illegal practices in the mortgage servicing industry, including force-placing of expensive homeowner’s insurance, wrongful application of payments, and inflated or baseless charging of property inspection and late fees.
Improper fees frequently lead to foreclosure. Servicers often place homeowners who are current or making payments as agreed into foreclosure. The survey results demonstrate these practices are current and widespread.
- 80% of the respondents represent homeowners who were placed into foreclosure in the last year where there was a wrongful assessment of fees (e.g. late fees, broker-price opinions, inspection fees, attorney’s fees and other fees).
- 79% of the respondents represent homeowners who were placed into foreclosure in the last year where there was a misapplication of payments.
- Almost 60% of the respondents represent homeowners who were placed into foreclosure in the last year where there was an improper assessment of force-placed insurance.
- In the last year alone, survey respondents reported representing over 700 homeowners with forceplaced insurance; almost 2,500 homeowners with improper assessment of fees; and over 1,200 homeowners whose payments had been misapplied.
- Over 78% of the respondents represent homeowners who had been placed in foreclosure in the last year where the servicer did not properly accept the homeowner’s payments.
- 73% of the respondents represent homeowners who had been placed in foreclosure in the last year while the homeowner was making payments as previously agreed upon.
Eliminate the Dual Track System
We must eliminate the two-track system in which banks proceed with foreclosures while evaluating borrowers for a loan modification. Homeowners should be properly evaluated for a loan modification before a foreclosure is initiated and that evaluation should be completed before any foreclosure fees are incurred. Because homeowners are so often placed in foreclosure improperly and without a loan modification evaluation, foreclosures must be stopped whenever a loan modification evaluation is commenced. Servicers must not be allowed to profit from improper fees and unnecessary foreclosure initiation.
Copy of the report below…
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4closureFraud.org
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Servicers Continue to Wrongfully Initiate Foreclosures: All Types of Loans Affected
If you think you’ve been at it for a long time, try 16 years and still fighting pro se.
http://msfraud.org/Ohio-Court-Reluctance-to-Admit-Fraud-Causes-16-Years-of-Litigation.html
I hope all that are complaining have looked at the presidential candidate, Dr. Ron Paul. This is the ONLY candidate that has addressed these issues since 2003 in a congressional hearing. He advocates auditing the FED, which will expose the corruption and allow competing currencies, which will end up eliminating the FED. That is the only way to go about it, elect the honest, principled candidate. Remember, the republicans are the same as the democrats – the media wants to keep us divided and pointing finger at each other. We need to point the fingers at Wall Street, the Fed, the large banks and the politicians that sell us out every year, except Dr. Paul.
It seems pretty clear that the banksters and their attorneys are above the law.
No matter what happens – they just continue to thumb their nose at the law and at us.
Lord, help us.
Well thank YOU Department of Justice: President Obama, Eric Holder, Lanny Breur, Eric Schneiderman, Shaun Donovan, Tom Miller and company for protecting consumers. The ink hasn’t even hit the page on the settlement yet, but guess word is out loud and clear that you’re not going to prosecute shit, so here come the carpetbaggers. Field day! All the deadbeats you can eat. Fill your pockets! Very thoughtfully done!
NO CRIMINAL PROSECUTIONS of ANY of these FEDERAL RESERVE BANK OWNED CRIMINALS and the fact that Obama could BOLD FACED AND PUBLICLY LIE TO THE AMERICAN PEOPLE and label their massive unsustainable derivatives debt fraud crimes of $1.2 QUADRILLION DOLLARS as NOT CRIMINAL, BUT RECKLESS… can only mean only ONE THING VERY DANGEROUS THING FOR THE UNITED STATES OF AMERICA…. , THAT THEY ARE ALL CRIMINALS THEMSELVES…AS WELL AND THEREFORE THEY ARE NOT ONLY COMPLETELY CORRUPT AND — USELESS BUT SOMETHING EVEN MORE SINISTER AND SNEAKY IS BEING HIDDEN FROM THE AMERICAN PEOPLE…THEY ARE ALL COMPLETELY MORALLY CORRUPT…AND THAT IS A DIRECT THREAT TO EVERYTHING THAT THE AMERICAN PEOPLE HOLD DEAR…WHICH IS OUR FREEDOM, INDEPENDENCE, OUR DEMOCRACY, TRUTH, PROSPERITY, LIBERTY AND JUSTICE AKA AS OUR NATIONAL SOVEREIGNTY AS WELL AS OUR NATIONAL SECURITY…THEREFORE NO CRIMINAL PROSECUTIONS TO DATE AND NO HALT TO FRAUDCLOSURES MEANS THAT ALL POLITICIANS, THEIR MINIONS AND COHORTS MUST RESIGN IMMEDIATELY….!
ANYONE WHO WOULD ALLOW EVERYTHING THAT THE AMERICAN PEOPLE HOLD DEAR SUCH AS OUR FREEDOM AND INDEPENDENCE TO BE HELD HOSTAGE BY LETTING VERY DANGEROUS CRIMINALS NOT ONLY GET AWAY WITH IT, BUT DENY AND HIDE THEY ARE DOING IT AND ALLOW THEM TO CONTINUOUSLY TERRORIZE NOT ONLY THESE VERY SAME VICTIMS DAY AFTER DAY SINCE 2008., BUT CREATE MORE VICTIMS…..ARE NOT ONLY VERY DANGEROUS AND DECEPTIVE CRIMINALS THEMSELVES, ..BUT ALSO ARE VERY DANGEROUS AND DECEPTIVE TRAITORS TO NOT ONLY THE AMERICAN PEOPLE BUT THE UNITED STATES OF AMERICA……AND THESE CRIMINALS ARE ALSO VERY DECEPTIVELY DANGEROUS TO NOT ONLY THE FREEDOM AND INDEPENANCE OF THE AMERICAN PEOPLE, BUT ALSO ARE A SNEAKY AND DECEPTIVE DANGER TO THE NATIONAL SECURITY OF THE UNITED STATES OF AMERICA AND THEREFORE THE SAFETY AND THE NATIONAL SOVEREIGNTY OF THE UNITED STATES OF AMERICA…ALL CRIMINALS AND TRAITORS MUST ALL BE HELD TO ACCOUNT IMMEDIATELY BY THE AMERICAN PEOPLE…!
These filings do NOT meet the the legal standard to be a foreclosure. and are NOT foreclosures. They are simply meaningless/frivolous fraudulent filings that require the ‘lawyers’ who file them to be prosecuted. PERIOD.
As the Regulators Do NOT Regulate, The Attorney General Only pro se executes the Innocent, and lets the Felons Of Scott Free, The Legal Mercenary cAH Ba’als; protect One another, the Judges, Magistrates, Pro se cutors, SECRETaries, Bailffs, and purported Defending AH Torns; All “Officers of The Courts,” of the Clubs of ROMA; Their will BE NO: Justice!
As Long as The negative Legalism’s: “Universal Cainaanite Communist Code/U.C.C. reigns Supreme, the Legal mercenarie’s presumtions that: “FRAUD is LEGAL,” will continue to: Wallow in Filthy lucre, at the extreme Expen$e of the VICTIMS!
If There are NO consequences, for: “FELONY RACKETEERING,” through FRAUD; there is No Motivation to STOP!
The RAPE of the Lambs, will continue Un-Abated, The Criminals will revell in their Glory Amongst Thieves! STOP the INSANITY, The CRIMINALS are crafting Legalisms, to ENABLE CRIMES, to CONstruct CHAOS!
The Rate that these Banks are allowed to keep Practicing their Fraudulent Activity there is NOT a Safe Home in OUR Country today,no matter if you own it or never Defaulted.They are running Wild in States,Countys,Towns & Communitys to put more Homes into the Foreclosers & Evictions.If something isn’t done soon,there will be Hell to Pay for a Crisses of Mega Magitude & the Citizens from ALL over will become Inraged.I Fear for What IS to come from all of this !!! Cause it is right down the Road.
An ‘improper’ foreclosure is illegal and null and void on its face. Why are we pretending pretending that these foreclosures are anything but a charade? They are illegal, unenforceable. People must be educated to this effect, and told to remain in their homes. To suggest that the servicers are continuing to ‘wrongfully initiate foreclosures is at best misleading. These are not foreclosures at all. They are nothing. Vacuous/meaning;less and frivolous fillings upon the court that require stiff fines for fraud/frivolous filings. To call them wrongful foreclosures is ridiculous, as they are not foreclosures. They are simply NOTHING but pieces of paper filed with the court wit NO legal standing what so ever, call it what you want, but a foreclosure its NOT/.
FORECLOSURE is a LEGAL TERM. These filings do meet the the legal standard to be a ‘foreclosure’. Thus, the very term ‘foreclosure’ is a fraud upon the court. LAWYERS ARE FILING THESE FRAUDS. EITHER LOCK THEM, OR SHUT UP! ITS NA– USEATING ALREADY~! SUE AND PROSECUTE THE LAWYERS! AND THE COURTS! FRAUD IS FRAUD! UNLESS YOU ARE IN THE BUSINESS OF DISINFORMATION! This is NOT ROCKET SCIENCE!
These filings do NOT meet the the legal standard to be a ‘foreclosure’.
February 22, 2012
Can a Quite Title Solve This Problem? Is this considered a financial crime that can be submitted to
U.S. Attorney Generals Financial Crime Unit?
Are These Loans Mostly The MERS Originated Ones? Are These Foreclosures Forced Through
Forced Place Insurance and Esculated In NonJudicial States?
Its the ‘courts’ who are aiding and abetting the violation of law. Its that simple. The ‘servicers’ are breaking the law. The courts are breaking the law. The courts cannot re write or violate the law. Thus it would appear nothing that has transpired is legal or binding under the law. Its time we addressed the real problem. Either the ‘courts have been bribed to violate the law, or the courts are a victim of fraud upon the court, regardless, the finding’s are null and void. IMHO.We need to address this issue, no the crimes of the servicers. That is a distraction if the so called court is allowing the violation of law.
Another tactic that must be STOPPED is that of Bank of America. When they sign agreements with the state AG to put a certain number of loan modifications in place, during the process, one of the BOA tactics is to move the loan servicing from BOA to another servicer and claim that the borrower must start over and that they do not qualify for the modification program that BOA stipulated to or to adhere to the modification that may already have been issued to the borrower by BOA.
Bank of America is obviously above the petty law of the state AG’s.