Comments on: Mortgage Defects Are Skyrocketing: New ARMCO Report Shows Critical Defect Rate Rising

By: mros56

mros56 — Wed, 07 Sep 2016 18:11:20 +0000

In reply to Julia Young. Most of these defects are strictly a formatting thing. The new Closing Disclosure was not designed to reform foreclosure practices or make it easier for borrowers to modify loans to stay in their homes. The CD is designed so that a borrower is provided with a plain statement of each and every closing fee, their full APR (Not just their rate), their exact payments, notification of prepayment penalties, and letting the borrower know if their protected from liability in the case of a short sale or foreclosure. Being in the business I'm well aware of the sort of small mistakes frequently happening. I will say that all borrowers do themselves a service by keeping all Loan Estimates (disclosures provided through the application and underwriting process) and the Closing Disclosure (provided 3 days before closing). Question any and all changes between those documents, don't be afraid to be that hard ass.

By: mike Drouin

mike Drouin — Wed, 07 Sep 2016 10:37:56 +0000

I remember back in 2011 , I got my hands on a Congressional Report that came out in November of 2010 Which dealt with the Crises/scam in full swing at that time . they termed the ” defects ” as Irregularities in the report !? The use of these words minimizes the impact of what was and is really taking place in the Mortgage industry and continuing today . The Fraud that was taking place after the scam was coming to an end was a result of the Mortgages themselves being void of any legal status !!!! Let that sink in for a minute …… Tens of millions of mortgages were void of any legal status even though there is Monthly statements as evidence ! It’s all accounting Fraud !!!!! The purpose of scheme by these predatory bastards was to never enter into a Mortgage contract with anyone , but to deceive you into believing you were in a Mortgage while involving you in a securities contract behind your back and without your permission !!! America has been lied to !

By: Kevin

Kevin — Tue, 06 Sep 2016 23:30:09 +0000

So true. I live in Florida. If you are the bank and have lots of money you can pay of the Supreme Court. Very sad.

By: Julia Young

Julia Young — Tue, 06 Sep 2016 16:18:45 +0000

Mortgage defects were always there!!
Banks, lenders enjoyed their heyday of illegal, faulty transactions and still do in non-judicial states! . Via MERS and courts that rubber stamp foreclosures, based on borrower default, homes are seized, resold, title automatically cleared and a new special warranty deed issued. Viola’, equity, improvements, additions, costs, all GONE leaving homeowners nothing but a potential tax burden, ruined credit and enormous emotional and financial loss. Banks buy the property at foreclosure to protect their lien, hand it to a REO agent, paying for a quick sale at a net loss, pennies on the dollar, adding up ‘insured’ losses in many cases.

Stealing real estate is a slam dunk! UNLESS a homeowner is savvy enough to recognize errors in his documentation or retain legal assistance experienced in that type of law, he or she is out of luck. In non-judicial states, and most are except a few like Florida, the homeowner can’t stop foreclosure proceedings of his Trustee Deed’s automatic foreclosure because he signed away those rights at closing. He had no other options to secure a loan for his dream home. Homeowners retain only an interest in their real estate, even though recorded in their names. Their rights transfer to a Trustee or third party, who forecloses on the original note. Borrowers have NOTHING to say about the sale unless they have the money to hire help, elect bankruptcy or MAYBE work out a payment plan or go through bankruptcy court. Servicers and lenders are not receptive to modifications and will proceed with foreclosure action!
Obama,when he ran for election touted reform to allow bankruptcy courts to have broader authority to modify predatory loans. This did NOT happen! After the election those he selected to implement plans had their own special interest history and intent. What we got was an ‘in name only’ government modification model that was essentially worthless!

Has anything changed? Has banking reformed? Did anyone go to jail? Just a little ‘MO Money’ was thrown in the ‘guv-ment’ till. Home borrowers- YOU LOSE!