Recently I receive an e-mail related to several of my more recent posts on Mortgage Fraud – note this will be one of the hot topics in 2008! The writer gave permission to share so in the interest of the readers of this post I am reprinting the e-mail content.
The worse factor of the Mortgage Mess is FORECLOSURE FRAUD committed via DEBT COLLECTION abuse and deception. It is HIGHLY COMMON for a DEBT COLLECTOR attorney to file a foreclosure naming a DEFUNCT mortgage company, or naming a mortgage company which is NO LONGER holder of the promissory note; or file a foreclosure affixing a “ransom” amount (the collector’s fee) far exceeding the “Acceleration Clause.” Even worse, when homeowners sue for “Unfair Debt Collection Practices,” and various damages, the collector gets to make even more $$ through prolonged litigation while leading mortgage companies to believe the homeowner is the reason for those multiplied costs. Irrefutable proof of foreclosure fraud and judicial collusion is posted on www.lawgrace.org
For these very reasons any representation about $$$ billion dollar losses due to people defaulting on mortgages should be weighed against the fact that certain mortgage giants needlessly pay DEBT COLLECTION firms outrageous legal fees for their lawyers to outmaneuver -and even persecute people who file court proceedings in opposition to fraudulent foreclosures.
EXAMPLE: In one actual situation, for a purported debt of $86,000.00, through use of a non-existent mortgage company, attorneys racked up more than a quarter of a million dollars in legal fees. Afterward, that property was sold to a 3rd party for $37,000.00. (The dollar amounts are rounded off.) Thus, Securities Investors realized nothing, and nothing practical was accomplished by evicting the homeowners (except for the collectors). Even property value declined in that neighborhood. Additionally, some collectors even file in Bankruptcy Court falsified motions To “Lift Stay” pleading for purposes of accomplishing SIMULATED AUCTIONS of real estate properties. Also, as an added measure to heighten chances of judicial
favor, these collectors propagate that the defaulted property owners are costing their clients all those legal expenses. But the true culprit is the collectors’ fraud and racketeering conduct. (This has to be the meanest exploitation and malignment against persons faced with becoming homeless!)
Furthermore, this kind of debt collector enables MORTGAGE COMPANIES to ILLEGALLY FLIP property, and thereby deceive Securities Investors about the real estate market. Thus, unscrupulous mortgage companies do not care what the collectors do, even when they loose money off the foreclosure. In States such as, 2 particular mortgage
companies which benefit from fraudulent foreclosures are and FREDDIE MAC.
Securities Investors need to become more knowledgeable, responsible and take action about debt collectors as well as mortgage servicers’ misdeeds which hurts borrowers as well as siphons incalculable amounts of money from what Investor profits. Also, see “Limiting Abuse and Opportunism By Mortgage Servicers,” AND “Private Property Rights
Deferred: Has Predatory Mortgage Servicing Destroyed The American Dream” by Rawle Andrews, Jr., Esq.,and Leroy Jones, Jr., J.D. at http://www.msfraud.org/index.html. In the near future because of negligence, Investors will likely be subject to liabilities for the above-described misdeeds.
While most of the mortgage frauds I follow have similar patterns (many of which mean that those involved end up in prison), I have not seen substantial abuse in foreclosure fraud. That said, it doesn’t mean it isn’t an issue (likely it is). It is I don’t find it on my radar screen for review and comment.
Additional links were provided by the author Barbara Ann Jackson. Thanks for Barbara for her work and the information contained herein:
Mortgage Mess, Foreclosure Fraud and Impediments to Justice
“ILLEGAL REAL ESTATE FLIPPING…”
Comment on the Foreclosure of Judge Reginald Badeaux’s Home
Casualties FromIneptness and Corruption Coming To A City
Near You http://www.lawgrace.org/2006/06/30/casualties-from-corruption/
Federal Judges’ Pay Raise;Federal Judiciary Call To
Business Ethics Speaker http://www.chuckgallagher.com – Chuck Gallagher – off for now!