Foreclosure Fraud Revealed

PO1 Tim Dietz — Tue, 11 Aug 2015 19:07:08 -0400

Over the past 4 years I have been immersed in discovering what has really been happening with foreclosure fraud and just how little most people know about this subject, and the banks depend upon this lack of knowledge of the average consumer. I have allowed my house to go the complete foreclosure cycle to help me understand and I have forced the banks to pay any enormous price in the process and I am not done with them yet. I would like to start a discussion here to reveal just what you need to know and how to stop the foreclosure process. Debt collectors and credit reports are are another species. My goal is to help my fellow veterans win the war on foreclosures and debt collections and share how to improve your credit scores and make those responsible for low scores pay you. Up until now, I have only been sharing what I know with family and close friends. I hope I will be able to share enough information here that it will make a difference in your life.

Response by MAJ Ken Landgren made Aug 11 at 2015 7:46 PM

MAJ Ken Landgren — Tue, 11 Aug 2015 19:46:38 -0400

Spill it!

Response by MSgt James Mullis made Aug 11 at 2015 8:01 PM

MSgt James Mullis — Tue, 11 Aug 2015 20:01:07 -0400

PO1 Tim Dietz: Please elaborate on your premise that banks are commiting fraud during the forclosure process. Is there a particular bank? or do you feel the entire industry is commiting fraud? I know that real estate agents, flippers, and builders were involved in "shady" practices that "pumped-up" the average price of houses. I've also heard of banks that gave loans to people who could not afford the loans, often at the insistance of government agencies, including the US Congress. Of course we all know someone who bought a house they could not afford if something happened to reduce their income. Also many people were caught when they bought one or more houses, they did not need, as an investment failed when the housing market collapsed in 2008.

Response by PO1 Tim Dietz made Aug 20 at 2015 2:44 AM

PO1 Tim Dietz — Thu, 20 Aug 2015 02:44:44 -0400

I finally got a little bit of time to get this discussion going. So where did all this start. Not wanting to have any liabilities, the banks found mortgage companies all over the country to write the mortgages. For this role, the mortgage companies received varied amounts of compensation. Most of these companies are no longer doing business. After the homeowner signed the closing documents, the mortgage was sent to MERS and the note was sent to a trust which caused a separation of these two documents making the note unsecured. MERS was created by the banks to track the transfers of the mortgage without ever conferring with states or counties. This did two things, 1) the true beneficiary became a mystery and 2) since these transfers are never recorded with the counties, the banks have not been paying recording fees, essentially stealing from the counties. Have you ever wondered why your county is operating on fewer funds, there is part of your answer. Once your note gets into the trust, pieces of your note are sold to investors all over the world who then all become partial owners of your note, leaving the bank that claims rights to your payment with no legal right to or possession of your note.

Here is where it gets real interesting. The banks have never purchased your note as they allege. However, to protect the banks from defaults on a note that they do not own, they purchase mortgage insurance. Once a default hits 3 months, the insurance company pays out to the bank. VA loans are paid out at 100% and the government sued these banks under the false claims act for collecting on these defaulted notes (which was in the billions). You would think that the insurance company would receive title to your home, but they don’t. The bank gets paid, keeps the title, continues to get paid by investors and then forecloses on the property that has just been paid for by the insurance company. To accomplish the foreclosure, the servicer assigns the deed of trust to themselves (something that cannot be done legally) and then records this fraudulent document into the county records via the internet (this is commonly known as interstate wire fraud). All this alone should make you mad. The banks expect consumers to follow the law while they continue to ignore and willfully violate the law.

Have you ever really read your deed of trust/mortgage (which is a contract) and know what has been agreed to? The whole foreclosure process violates what has already been agreed to. Next I will talk about your deed of trust/mortgage and what you really need know. I will never suggest that you ignore your obligations, but at the same time, you should be paying the entity that is legally entitled to your payments. Look for more to come as time permits. I hope these posts are helpful.