Servicer-Driven Foreclosures: The Perfect Crime?

[Joanne98]

As much as I’ve seen a lot of financial services industry misconduct at close range, sometimes even a cynic like me is not prepared for how bad things can be. And mortgage abuse is turning out to be one of those areas.

I’ve been in contact for over the last six months with attorneys involved in foreclosure defense. Unlike the foreclosure mills, which seem to coin money, the attorneys on this front are either laboring pro bono or making considerably less than they could in other lines of work. They also can back up their views with depositions and trial transcripts.

One thing they stress is that a significant number of their clients facing foreclosure has made every single mortgage payment. . Read that again.

Now how can that be? How can that square with the banks’ assertion that in every instance, their foreclosures were warranted, that the borrower was hopelessly behind?

It’s actually very simple. It’s called servicing errors and fraud. And whether by mistake or design, when a borrower gets caught in the servicer hall of mirrors of compounding fees and charges, there is no way to appeal and pretty much no way out.

http://www.nakedcapitalism.com/2010/11/servicer-driven-foreclosures-the-perfect-crime.html

[WhiteTara]

1. wow! Naked criminal activity

and NO ONE to stop them. Go Wikileaks!

[corkhead]

2. I am currently lost in Banksters of America's hall of mirrors right now.

I have been paying extra principal since my mortgage was initiated while it was with Standard Federal. Since Banksters took ABN Amro over, they stopped sending me statements and coincidentally stopped applying my additional principal payment to principal, and instead applied it to future payments. I am now supposedly 2 months ahead on my payments, but the principal has not been paid down like it should have, in spite of me writing the additional payment amount in the "additional principal" line on my payment coupon.

Since I figured this out, my experience in trying to correct this can be best described as a "hall of mirrors". I am 3 months into it and no further along than I was when I started.