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Mortgage Foreclosure Document Fabrications?

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Foreclosure Fabrications

Mortgage foreclosure documents can be fabricated.  And it happens too often.  It seems that even with all the chances to foreclose legally, mortgage lenders choose to cut corners anyway.  Fake documents are also used in debt settlement cases.

Your Mortgage Documents Are Fake – and Your Debt Settlement Documents May Be Too

To foreclose on a home, mortgage banks need to show that they really have a lien on the home being foreclosed on.  The problem happens when the mortgage has been traded and sold a number of times, and the paperwork connecting the loan to that particular house has been lost.  Salon.com explains the solution of the mortgage banks:

The lawsuit states that banks resorted to fake documents because they could not legally establish true ownership of the loans when trying to foreclose.

This reality, which banks did not contest but instead settled out of court, means that tens of millions of mortgages in America still lack a legitimate chain of ownership, with implications far into the future. And if Congress, supported by the Obama administration, goes back to the same housing finance system, with the same corrupt private entities who broke the nation’s private property system back in business packaging mortgages, then shame on all of us.  See Salon.com

The fraud being described above also happens in debt settlement cases.

Why Are Mortgage Foreclosure Fabrications Still Going On?

Five years ago this month, GMAC became the first mortgage servicer to announce that they would suspend foreclosure operations, due to irregularities in their document preparation. Within a few weeks every major mortgage servicer in America followed suit. This is usually called the robo-signing scandal, but to be more precise we gave it the name foreclosure fraud. It ended with the five leading servicers, including GMAC, signing the $25 billion National Mortgage Settlement.

Except it didn’t end, and this past week I was handed inconvertible proof of that fact. The scenario is so fantastical that if I didn’t have a working knowledge of foreclosure fraud I wouldn’t have believed it. But it appears to be very real.  See naked capitalism.com

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Foreclosure Fraud for Dummies

Incredibly, the Department of Justice Inspector General has place mortgage fraud as a low priority, even as detailed documents have been discovered that tell lawyers how to forge and fabricate mortgage documents so that a foreclosure can take place.

“… a recently revealed internal Wells Fargo document appears to guide lawyers step by step on how to fabricate missing documents to foreclose on homeowners. Wells Fargo is the country’s largest mortgage servicer and services some nine million home loans. ” See truth-out.org.

 Wells Fargo creates a fraud blueprint to support taking people’s homes

Bankruptcy attorney Linda Tirelli has unearthed a 150-page document that she says outlines “a step-by-step procedure” for Wells Fargo’s lawyers to request retroactive documentation that another lender has signed over a loan to the bank. Such documentation, known as an endorsement, is needed to prove that Wells Fargo now owns the loan and has the right to foreclose on the borrower.

Wells denies wrongdoing. “Wells Fargo’s foreclosure processes—today and back in 2012—are appropriate, legal and customer focused,” says spokeswoman Vickee Adams. The manual “provides guidelines for outside attorneys to be compliant with state and regulatory requirements.”

What amazes about this foreclosure fabrication is that there would be no sympathy or leeway given to a simple homeowner who lost their paperwork.  In a courtroom, and in a trial, it is necessary to produce proof of payments, ownership, sales and contracts.  Never would an ordinary person be able to forge these documents and be given the benefit of the doubt by a judge.

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