Tuesday, May 26, 2009

Big problem coming: No original mortgage note? Perhaps no foreclosure.

Big problem coming: No original mortgage note? Perhaps no foreclosure.

As mortgage loans went from local banks to securitized "securities", determining the actual owner of an individual mortgage has become more difficult. Worse, as the mortgage loan passed from owner to owner, ultimately to bundling huge numbers of mortgages sold to thousands by brokerage firms, the original note may have been lost in the shuffle. Many of the originating lenders have gone out of business, sold, closed or filed for bankruptcy.
Bloomberg posted a provocative article today revealing that "judges in at least five states have stopped foreclosure proceedings because the banks .... haven't been able to prove they own the mortgages." Many parties filing a foreclosure action have submitted either a copy of the mortgage note or filed a "lost-note affidavit". If the owner or owner's attorney does not object, the foreclosure has often proceeded. The article tells of one homeowner with a $1.5 Million mortgage who hasn't made a payment since 2002 and has successfully stalled the foreclosure because no one has been able to produce the original note.

Some judges have dismissed foreclosure cases when the original note can't be produced. Other judges have warned plaintiffs to bring the original mortgage notes, not copies, and not lost-note affidavits.

Bloomberg estimated "more than $2.1 trillion, or 19 %, of outstanding mortgages have been bundled into securities."
With vacant and abandoned homes already creating problems for cities and neighborhoods, what will this add to the problems?
Sub-prime loans ... Upside-down homeowners ... Government bailouts ... Now "unforeclosable" loans?

What next?


Sharon Simms
St Pete FL
CRS CIPS CLHMS RSPS
Company
ALVA International, Inc.
E-mail
Contact Sharon Simms St Pete FL - CRS CIPS CLHMS RSPS (ALVA International, Inc.)
Website
http://www.ssimms.com/
Office Phone
(727) 898-2582
Alt. Phone
(727) 866-0048
Address
238 Beach Drive NE, St Petersburg, FL, 33701
Description
Representing buyers and sellers in St. Petersburg, Gulf Beaches, Clearwater & Tampa Bay area, Florida. Luxury, resort & international. Waterfront specialist. Downtown condos. New construction. 1031s.

About Us:
The Simms Team is a mother, daughter, son team (Sharon, Tami Simms-Powel and Rob Johnson) with expertise and enthusiasm, backed up by a wonderful Strategic Execution Officer (Amy Grashel). Sharon has been a full time REALTOR® in St. Petersburg, Florida, since 1986. She started with Merrill Lynch Realty which became Prudential Florida Realty which became Arvida Realty, which was bought by Coldwell Banker. Sharon then moved to RE/MAX Metro for 5 years before starting her own real estate company, ALVA International, Inc. Sharon and Tami are also instructors for the Institute for Luxury Home Marketing, and both are national speakers, often quoted in publications. Originally from Newport, Rhode Island, in her life before real estate, Sharon was a financial advisor, oil company executive (handling oil and gas leasing, investor relations, contracts and managing the office staff), teacher, innkeeper, and was in hotel sales in St. Thomas, US Virgin Islands.

Our mission is to make a significant difference in our clients' lives by best meeting their real estate needs and providing a home base. Continuing education is very important to us and each team member has real estate designations as well as a college education. As a family, we bring unique talents to the team, but all share in serving all our clients, so each of us is familiar with every client and the status of their search and transactions. Sharon brings a background as a business owner and financial analyst, Tami owned a graphic design company and was head of Concierge services at a luxury resort hotel, and Rob entered real estate after retiring as a major in the United States Air Force, with many years living in Europe. Our varied ages, interests, families, and community involvements allow us to help our clients become part of the community.
We enjoy living in this beautiful waterfront community, which encompasses small towns with unique character; cities with dynamic activities, arts, entertainment and recreation; a warm climate with lots of sunshine, access to an international airport, a vibrant business community and a wealth of choices. Please let us share our community with you and help you with all of your real estate needs. Whether helping you buy or sell here, or work with selected colleagues throughout the country and internationally, we're here to counsel you and help you.
We sell real estate, and we're good at it. We listen carefully and talk straight - believing that's how we can best serve you. Visit our website to learn more about properties in this area, our team, our expertise and track record, and recommendations. We like matching nice people with nice properties.


Areas of Expertise:
We cover areas that are within a 45 minute commute of the main work centers of Pinellas County, from the Gateway/Carillon area to downtown St. Pete. Sharon specializes in luxury homes, waterfront (and waterview) homes and condominiums, including the exciting development of downtown Saint Petersburg and the Gulf Beaches.
Sharon, Tami and Rob are all Certified Luxury Home Marketing Specialists, with many international clients. Sharon, Tami and Rob's wife, Paqivi, are multilingual. Rob is also very knowledgeable in new home construction, and has been the team expert in short sales. Sharon works with many empty nesters, local clients as well as second home and resort property owners. Tami has many clients who are young professionals, and Rob works with many families - but none of us are limited to those and we work as a team to offer a variety of skills and personalities to our clients. Amy is our Strategic Execution Officer, who is generally in the office in charge of our Command Center, keeping all of us in line, and making sure every deadline is met, and every detail of listings and contracts is taken care of.
Designations:

Sharon: ABR Accredited Buyer RepresentativeACRE Accredited Consultant in Real EstateASP Accredited Staging ProfessionalASR Accredited Seller RepresentativeCIPS Certified International Property SpecialistCLHMS Certified Luxury Home Marketing SpecialistCNHS Certified New Home Specialist (earned but no longer current)CRB Certified Real Estate Brokerage Manager CRS Certified Residential SpecialistCSP Certified New Home Sales Specialist Ecobroker Certified e-PRO e-PRO CertificationGRI Graduate, REALTOR® Institute LTG Leadership Training GraduatePMN Performance Management NetworkRECS Real Estate CyberSpace SpecialistRSPS Resort and Second-Home Property SpecialistSRES Seniors Real Estate SpecialistTRC Transnational Referral Certificate

Sharon is a graduate of Salve Regina College (now University) with a major in English, and has done post-graduate work in German at the University of California (Berkeley), the University of Wisconsin, and Middle Tennessee State University.

Tami:
CLHMS Certified Luxury Home Marketing Specialist
CRS Certified Residential Specialist
Tami graduated from Eckerd College with a degree in Fine Arts.
Rob:
ABR Accredited Buyer Representative
CLHMS Certified Luxury Home Marketing Specialist
e-PRO e-PRO Certification
CSP Certified New Home Sales Specialist
RECS Real Estate CyberSpace Specialist

Rob attended Rollins College and subsequently graduated from Middle Tennessee State with a degree in Mass Communications, and while serving his career as an Air Force officer, earned his master's degree.

Amy:
successfully completed all of her course work for the GRI
Amy graduated from Eckerd College with a degree in International Business

Please let us help you with your real estate needs.
Testimonials:
Sharon Simms has been our realtor for the past 6 years, and has represented us on three occasions; she helped us buy two houses and sell one. We have used her and her team exclusively because they respond to us in a personal way and treat us in a professional manner. We first met Sharon through a search on the internet when we were living in Chicago and looking for a house in Florida. We were impressed by her website and contacted her. She was immediately responsive to our questions. ..Ultimately, she saved us thousands of dollars, based on her thorough understanding of the procedures involved in buying a home...She assisted us at every turn, and was immediately responsive to our calls long after our initial transaction with her was completed..Sharon and her team helped us to sell the house...the booklet they put together to represent our first house was beautiful, with pictures that truly captured the house's strengths...The help provided by the Simms team, during each of the closings, was significant. Because they informed us thoroughly of what we should expect, we were never caught by surprise. All the paperwork was impeccably prepared and so were we. We would not think of buying or selling a home without the help of Sharon and her team. Her knowledge of real estate in our area, and of the procedures required, has continually been of tremendous help to us. We remain grateful for all that she and her team have done on our behalf. Lori and Linda
Sharon was great and earned out trust quickly. In selling she sold it in 24 hours - she had website set up with tons of info - unbelievable! She put all docs on CD, followed up to check on things.

Dave
We selected the Simms team based on Sharon's reputation in the St. Petersburg community. After our first meeting with Sharon and her team, we knew we had made the right decision. I am pleased to say we consistently experienced a team of professionals, well versed in their jobs and always on top of each situation that presented. The Simms team made the sale of our home seem effortless. Each and every detail was addressed promptly and with confidence. We actually found selling our home could be a "fun" experience. If you are looking for a team of professionals to sell your home, handle all the various issues that arise and have fun while enduring such an ordeal, I would highly recommend the Sharon Simms team. Terri and John

Sharon and Team are A+ number 1! Very professional, prompt. Great attention to detail. Stay diligent in their efforts to market and sell your property. Would use and/or refer them again. Marketing of property on many fronts, technology. Great flyer! Property analysis! Jim
We have bought and sold 6 homes over the last 19 years, dealing with 11 different agents/real estate companies. Not one of the realtors we did business with could hold a candle to the service you gave us from the very beginning. The fabulous visual tour and brochures, constant contact and availability, the work behind the scenes you had to do regarding inspections, lenders, etc to get everything in order for the closing date...You certainly earned your commission.

Bob & Peg
When we moved due to a job transfer, the only call we even considered was to Sharon. Once again, we closed the house long distance without any problem whatsoever. Sharon is the BEST!

Rip and Suzie
The Simms Team were devoted and dedicated time to me until transaction completed. Gave grand tour of area (St. Petersburg/Gulfport) to ensure knowledge of big picture - understanding of how local neighborhoods fit into city and their unique character. Took time to understand my individual "style" and incorporated it into search, saving time and providing quality service...helped me celebrate and were willing to share social time with me...Team approach made them always available with support throughout. Barbara Sharon did everything we expected in a professional and friendly manner...honest & straight forward - very attentive - always responded quickly to phone calls.

Hunter and Julie
Thank you for the superb job you did selling our home. We were really dreading the sale "process" - that is, until you arrived. From the very beginning it was evident that you and your staff are as professional as they come. You told us exactly what to expect, exactly what you would do and you did just that. It is just unbelievable that our house sold in 6 days for more than we had ever hoped! We thank our lucky stars that we called "The Sharon Simms Team" first.

Bob and Sue
Sharon is conscientious, pleasant and a joy to work with. Sharon is the best. Period. Darlene
Sharon is the single most professional agent it has ever been my pleasure to work with. She is efficient, informative, prompt and courteous, very thorough and knowledgeable. I firmly believe that without Sharon acting as intermediary, the closing would never have taken place. Sharon's capacity for calm, reasoned and decisive words and actions, combined with her genuine caring for the welfare of her clients is on an extraordinary and exemplary level. Sharon has my greatest and most heartfelt recommendation for both her professional abilities and personal ethics. Bill

Thank you for your professionalism in working with us, and also for your personal warmth and friendship during the "ordeal". You're a gem!
Rebbie and Dan

The deal would not have gone through without the help of Sharon. She was of immeasurable assistance.
Joy

Just a note to tell you how much we appreciated all the excellent service you gave us when we recently sold our home. We already knew it would work out smoothly, since you had sold our previous home. From the moment we called you to list the property on Tierra Verde, you showed us such professionalism. All our messages were returned promptly, and you answered our many questions completely. You took care of it all, which was very helpful to us, living so many miles away. All in all Sharon, it was a pleasure working with you. We would recommend you highly to anyone.

Randy and Rebecca
Signe and I are pleased with the outcome and remain impressed with Sharon's professionalism from the pre-listing conversation through the closing. Her presentation package and advertising plan, combined with your success, convinced us from the start that we wanted to work with you. Sharon's counsel about pricing and when we had an offer was also appreciated. If we had it to do over again, we wouldn't hesitate to list with Sharon.
Tom

WELLS FARGO IS A SERVICER NOT A OWNER OF NOTES, YET IMPROPER COURTROOM PROCEDURES ALLOW THEM TO SUCCEED ANOTHER FRAUDULANT FORECLOSURE SUIT IN TEXAS

ANOTHER FRAUDULANT FORECLOSURE SUIT
IN TEXAS
AGAIN, WELLS FARGO IS A SERVICER
THEY DO NOT OWN ORIGINAL NOTES.
AND THEY ARE NOT PROPERLY LICENSED
TO FORECLOSE.

Terry and Susan Garrett entered into a mortgage contract with Option One on 05-04-06.
Terry Garrett laid off summer of 2007 and got behind on mortgage by 2months.
Multiple conversations with Option One resulted in a final re-instatement if we sent in 5500.00 agreed upon 9-3-07 with 3000.00 down and 2500.00 2 weeks later.
Payments were sent western union and Option one sends both payments back to us via western union stating we failed to send the 5500.00 and foreclosure had been started.
10-3-07 filed bankruptcy with Weldon Grishams office downtown Ft. Worth .
Bankruptcy arrearage payments garnished from my pay check all house payments current.
Letter dated 6-10-08 Option one has sold to Wilbur Ross of American Home Mortgage Services as of July 1, 2008 sent payments to AHMSI in Jacksonville Fla. Instead of Option one of Irvine , Ca.
Started making all payments to AHMSI in Fla , July/Aug/Sept. payments.
9-28-08 receive letter from Wells Fargo stating foreclosure inspection has been done on property they are the trustees for Option One due to lack of payment house would be sold 10-7-08.
Called bankruptcy attorney Weldon Grishams office they have received nothing stating Wells Fargo was owner of note and to not worry pay AHMSI as instructed that is where Tim Truman Chapter 13 trustee was making payments to.
10-7-08 Wells Fargo forecloses on Home
10-14-08 Wells Fargo sells home to other names listed on a trustee deed
10-21-08 I received letter from Wells Fargo’s attorneys’ to vacate, my attorney Weldon Grisham received letter from Wells Fargo’s attorney’s notice of default debtor has until 10-31-08 to cure the debt.
10-28-08 served by constable an eviction citation.
11-06-08 appeared at court to Judge Wayne Hayes presented case and won ruled in our favor due to bankruptcy and no proof of automatic stay lift and my proof of mortgage co. to be American home not Wells Fargo.
11-12-08 served by constable an eviction citation.
11-19-08 appeared to Judge Wayne Hayes JP Court ruled in our favor due to the proof of lift of stay was dated 7-25-08 but was merely a letter not a ruling from the bankruptcy court.
11-24-08 served by constable an eviction citation
12-05-08 appeared to JP Court – substitute judge Jane Choate in for Wayne Hayes, would not let me present case ruled in for plaintiffs as a default judgment due to husband not there only I was present.
12-08-08 Filed a surety appeal bond at the JP Court
12-09-08 approved by Judge Wayne Hayes.
12-10-08 Option one/Wells Fargo 's sent letter from Judge Jerry Buckner to respond within 8 days. No response by Attorney’s for Wells Fargo

12-19-08 Attorneys for Wells Fargo file affidavit in support of eviction
Terry , Susan Garrett request default prove- up hearing 1-15-09
1-11-09 Court reset for 1-20-09 for additional findings by the Garrett’s
01-13-09 Terry Susan Garrett file affidavit in support of wrongful foreclosure.
1-20-09 Judge sets a Status Herring. Terry and Susan Garrett appear at court Wells Fargo attorneys fail to show waited over 30 minutes for someone to show. Judge calls attorneys they scramble to get a local attorney to show up so contempt charges are not filed on them.
Fill in local attorney requests for the records that he has not been hired by Hughes, Waters/Akansase, Wells Fargo, American Home Mortgage, or Option One and request it be documented as such. And that he has no knowledge of suit.
Judge sets Final hearing for 3-10-09 with stiff warning to plantiffs Wells Fargo and party that they have done a lot of wrongful things to these people and they better show up on 3-10-09
01-23-09 Wells Fargo attorneys submit motion to dismiss affidavit in support of wrongful foreclosure
02-02-09 Wells Fargo attorneys submit oral hearing to plea to jurisdiction, judge Buckner denied wait until final hearing.
03-10-09 Susan and Terry Garrett submit memorandum in support of Defendants claims.
3-10-09 Summary judgment granted to Wells Fargo due to Judge Buckner had lack of jurisdiction over Wrongful Foreclosure and my stuff was not admissible in court. This was over a wrongful detainer case.
3-20-09 Today – Susan and Terry Garrett wish to submit an appeal, but not sure if it is even worth it. I have had 2 attorneys tell me I have a case, plus judge Buckner, but I need it on a contingency basis due to both attorneys wanting 5000.00 to take case up front.
* 04-08-09 Sadly – we moved out of our dream home and join the world of renting with ruined credit.

Susan Garrett, PCS
ODYSSEY HEALTHCARE, INC.
2630 West Freeway, Suite 102
Fort Worth, Tx. 76102
817-338-1512 phone
817-350-3724 cell
817-339-2577 fax

Wednesday, May 20, 2009

Judge's Ruling Deals Blow to National Mortgage Servicer

Judge's Ruling Deals Blow to National Mortgage Servicer

BY TIM O'REILEY

A Las Vegas bankruptcy judge has dealt a blow to an obscure but critical piece of the mortgage enforcement machinery that could slow foreclosures.After a rare hearing in front of three judges last year that initially encompassed 27 cases, U.S. Bankruptcy Court Judge Linda Riegle has ruled that the Mortgage Electronic Registration System (MERS) could not represent lenders seeking to foreclose on delinquent homeowners already in bankruptcy unless it could produce the actual loan note.

This goes to the heart of how home lending has evolved over the past two decades, with a loan rarely staying on the books of the originator but often being sold several times to other institutions or investment groups. As a result, producing a loan document is far more complex than opening a drawer in a filing cabinet.

MERS, a joint venture of numerous lenders launched in 1993, is a database tracking an estimated 60 million mortgages and promising to take responsibility for functions such as foreclosure as long as a mortgage stays with a MERS member. To reach this point, en route to its self-professed goal of "register(ing) every mortgage loan in the United States," it has fought off court challenges to its status across the country and challenged the argument that it must possess a loan document to have legal standing. MERS has represented hundreds of different lenders in Las Vegas in recent years.

For that reason, MERS quickly appealed Riegle's decision in April. Although not commenting directly on the case, a MERS spokeswoman points to other states such as Florida, where MERS lost at the trial-court level but ultimately won on appeal.

The case has attracted industrywide attention. Writing last October in the American Bankruptcy Institute newsletter, Johnathan Bolton, a bankruptcy attorney with the Houston firm of Fulbright & Jaworski, noted that the local case "could have a great impact on the ability to enforce mortgages in the United States.""Since Nevada is a nonjudicial foreclosure state, this issue is only now coming to a head," said Bill Uffelman, president of the Nevada Bankers Association. "If in fact you can't produce the note, it puts the whole thing (a foreclosure) into abeyance."But for people with homes worth far less than the loan balance or without the income to cover monthly payments, the ruling may buy only a few months of breathing room.

"Whether this changes the outcomes of foreclosures remains to be seen," said Henderson attorney Robert Massi, who represents debtors. "But it does buy time and gains some negotiating leverage" even before a bankruptcy.

Lenard Schwartzer, a private attorney and a bankruptcy trustee who won the case, has come to doubt its practical significance."In most cases, it buys an additional three to six months," he said. "But not many people seem to care."Because people tire of living under the threat of a forced move-out, especially when a house has negative equity, he now describes his work on the case as "50 to 100 hours of wasted legal time.

"The ruling comes amid swelling complaints that mortgage servicers have exacerbated the deluge of foreclosures in the past couple of years. Assembly Speaker Barbara Buckley has introduced a bill in the current legislative session to allow financially besieged homeowners to request arbitration of a default, partly to bypass servicers and force lenders to the table.

MERS claims credit for an integral role in the widespread expansion of mortgage lending options for consumers by providing the mechanism not only to follow loans from owner to owner but avoid tens of millions of dollars of recording fees every year and the piles of paperwork that come with it. MERS highlights one section of a Florida court decision that called it "an innovative instrument of commerce.

"Nevertheless, Riegle's ruling not only parsed federal and state law but at least implicitly rapped MERS on the knuckles for its practices. For example, she noted that MERS acted as the attorney on several loans in Las Vegas even after they were transferred to non-MERS members. She also rejected the argument that lenders who belong to MERS and designated it to be their legal representative should be good enough for the court.

Without the loan papers, she concluded, MERS' terms and conditions for its members do not give it any rights to foreclose under Nevada law."To reverse an old adage," she wrote, "if it doesn't walk like a duck, talk like a duck and quack like a duck, then it's not a duck."

Contact reporter Tim O'Reiley at toreiley@lvbusinesspress.com or 702-387-5290.

http://www.lvbusinesspress.com/articles/2009/05/18/news/iq_28700330.txt

Tuesday, May 19, 2009

NEED HELP FINDING A SUCCESSFUL APPROACH

Date: Mon, 18 May 2009 18:56:39 -0700 (PDT)
From: "John Pohl"
Subject: NEED HELP FINDING A SUCCESSFUL APPROACH

WHEN WORKING WITH WELLS FARGO
To: ctsmyhon@yahoo.com


Hi Kelly! Thanks for getting back to me. Yes of course you can use my letter to anyone you want. Hopefully it will help someone. On the downer. More bad news. I have been getting letters in the mail from wells fargo a couple times a week and they have been calling every other day. The last letter said we can help you with a loan modification and that I had untill may 21st to get back to them. So I called them today and they took down my finances. They found that I make $400 more per month than my mortgage and utilities even though I gave them a slightly inflated income about $200 more per month than what I really make. I did this because I felt that if I disclosed that I make less money than my mortgage and utilities along with personal expense that they would deny me for sure. Also I told them that I had been eating at my parents and had no food bill. Which is not totally true. I tried to tell them this after they denied my requests but they wouldnt budge. They did offer a loan forebarence which they wanted me to make 3 consecutive payment of 1700 a month and then they said they would consider a permenant modification after they negotiate how much of the 10g in late payments i owe them but I don't believe them. I am on an fha arm and am paying about 6.5%. I think they just wanna get as much money outta me as they can before they foreclose. I think now Im gonna try a hardship letter with pay stubs etc. I need help with hardship letter. Also does it make it easier if you go with a cca. Are they more prone to helping you? Anything will help.

Sincerly, John Pohl


--- On Mon, 5/18/09, Kelly L. Hansen wrote:


From: Kelly L. Hansen
Subject: SUCCESSFUL APPROACH WHEN WORKING WITH WELLS FARGO
To: "John Pohl"
Date: Monday, May 18, 2009, 5:44 PM


Hi John,

YES! They will work with you. I hear wonderful success stories from people much further behind in their payments and much deeper in debt on their mortgage.

I've copied your e-mail to a VICTORIOUS HOMEOWNER who just wrote me today. I do not yet have his full success story, or his permission to share the details of his experience, but I feel "led" to share your e-mail with him because I believe he can give you some ideas to use immediately.

Also, if you e-mail be back and tell me it is OK to share your story with Wells Fargo's Presidential Communications Office -- I will do what I do on my end to get their focus on your problem and how to help you solve it.

E-mail me your permission, and I will begin. Prayers 1st!! PUSH, PUSH, PUSH, 2nd. VICTORY SOON THEREAFTER!!!

Please note the names/dates/times of each and every person you talk with, even if you are just leaving messages. Keep a log. Write down comments. Helpful? Uninterested? etc.

I hope to hear from you soon. You are in my prayers.

GBU!

John Pohl wrote:

Hi Kelly, My name is John Pohl and I live in Minneapolis MN, I have tried in vane to negotiate with wells fargo on my mortgage. I have a Ginny mae fha loan so I am not under the freddie mac or fanny mae umbrella. They have not budged an inch on my interest or principle even though I lost my job to no fault of my own in 2006. I entered the states dislocated workers program, they helped me finish college. I graduated but can only find a job now that will work me 32hr a week. they wont put me on full time due to the economy. I quit making my mortgage payment 5 months ago and now owe 10g. Is there anything I can do to try and get wells fargo to negotiate with me? Thanks for your help.

John Pohl









Kelly L. Hansen,esq (expect success quickly!)
ON FIRE Vigilante!
Changing WFHM Victims to VICTORIES!
33605 W. 88th Street
De Soto, KS 66018
504-579-2340
913-273-1448 Fax
ctsmyhon@yahoo.com
http://wfhmcaught.blogspot.com/2009/01/homeowners-be-informed-ask-for-what-you.html

Friday, May 1, 2009

IS YOUR LENDER PROPERLY LICENSED? MOST ARE NOT! FIND OUT!

WELLS FARGO & CO ... CAUGHT.
FORECLOSING ON HOMES YOU DON'T EVEN OWN.
IN STATES WHERE YOU AREN'T LICENSED
TO DO BUSINESS AS A SUPERVISED LENDER.
IN STATES WHERE YOU AREN'T REGISTERED
ACTIVE AND IN GOOD STANDING.

By Kelly L. Hansen, Victim of Wells Fargo Home Mortgage



Credit and Debt Problems Forums



Credit and Debt Problems Forums
(
http://www.debt-consolidation-credit-repair-service.com/forums/index.php)

Mortgage Fraud
(
http://www.debt-consolidation-credit-repair-service.com/forums/forumdisplay.php?f=196)

A Mortgage Paper Trail Often Leads to Nowhere
(
http://www.debt-consolidation-credit-repair-service.com/forums/showthread.php?t=292079)



ALMOST THERE12-31-2008 11:29 AM


A Mortgage Paper Trail Often Leads to Nowhere
December 28, 2008
A Mortgage Paper Trail Often Leads to Nowhere
By GRETCHEN MORGENSON

WITH home prices in free fall and mortgage delinquencies mounting, pressure to modify troubled loans is ratcheting up.

But lawyers who represent candidates for modifications say the programs are hobbled by the complexity of securitization pools that hold the loans, as well as uncertainty about who actually owns the notes underlying the mortgages.

Problems often emerge because these notes — which are written promises to repay the full amount of a mortgage — weren’t recorded properly when they were bundled by Wall Street into pools or were subsequently transferred to other holders.

How can a loan be modified, these lawyers ask, if the lender cannot prove that it actually owns the note? More and more judges are asking the same thing about lenders trying to foreclose on borrowers.

And here is another hurdle: Most loan servicers — the folks responsible for handling all the paperwork surrounding monthly mortgage payments — aren’t set up to handle all of the details involved in a modification.

Loan servicing operations are intended to receive borrowers’ payments; producing loan histories and verifying that payments were received or junk fees were not applied is considerably more labor intensive. This cuts into profits.

“These servicers are not staffed up and they don’t have a chance in the world to do the stuff they are supposed to do,” said April Charney, a consumer lawyer at Jacksonville Legal Aid. Many servicers continue to stonewall troubled borrowers who ask for a history of their loan payments and fees, she said.

“This is your biggest, hugest expense — your home — and when you ask for a life-of-loan history your servicer tells you to get lost,” she said. “And when you ask for a list of charges in the loan history that’s not going to happen.”

So even if loan modifications were to rise rapidly, it is unclear that borrowers can trust what lenders tell them about what they owe.

Consider a federal bankruptcy court case in Colorado. It involves two borrowers who got into trouble on their loan but agreed, under a bankruptcy plan, to make revised mortgage payments to get back on track.

The lender in the case is Wells Fargo, and last Monday the judge overseeing the matter took a tough stance on the bank’s recordkeeping and billing practices.

In June 2004, Brandon M. Burrier and Denon A. Burrier received a $183,126 loan for a property in Arvada, Colo. The note was later transferred to Wells Fargo, court filings show.

The Burriers fell behind on their loan and in February 2007, they filed a Chapter 13 bankruptcy, agreeing to pay $12,000 that Wells Fargo said they owed. Chapter 13 bankruptcies allow debtors to retain their property and work out a repayment plan based on their income and the level of their indebtedness.

The Burriers’ payment plan was confirmed by the bankruptcy court in August 2007; last December, a second plan requiring higher payments was approved by the court.

Two months later, Wells Fargo told the court that the Burriers had failed to make four of their payments and that it should be allowed to begin foreclosure proceedings.

The Burriers denied that they had missed payments, but in April, to keep their home, they agreed to make double payments to cover the ones Wells Fargo claimed they had missed.

If the borrowers could prove that the mortgage checks were submitted, Wells Fargo said, their account would be credited and they would no longer have to make up the payments. The proof required by Wells Fargo and approved by the court was “valid, accurate and true copies” of the front and back of the checks the borrowers sent in.

Last August, the parties were back in court, with Wells Fargo stating that the borrowers had failed to comply with the deal. Ms. Burrier testified that she had asked her local bank repeatedly for proof of the payments made to Wells Fargo, but had had no luck. The payments to Wells Fargo were processed electronically, she learned, and that meant it did not return the checks to her bank.

The borrowers did produce bank statements showing that the checks Wells said were missing were actually cashed by “WFHM,” an entity that they assumed was Wells Fargo Home Mortgage.

But Tara E. Gaschler, the lawyer representing the borrowers, said that Wells Fargo continued to maintain that it hadn’t received the money.

The bank flew in an expert to testify that all checks received by Wells Fargo from borrowers in Chapter 13 cases were processed by hand, Ms. Gaschler said. “Even when presented with bank statements, they told the court there must be some mistake,” she added.

Finally, Wells Fargo demanded that the Burriers provide the routing number of the account at Wells Fargo that their money went into. If they could not, the bank said, they would have to keep making extra payments.

But Sidney B. Brooks, the judge overseeing the case, was clearly dismayed by the bank’s performance.

In his opinion, he fumed that Wells Fargo had asked the borrowers for canceled checks as proof of payment, even though such checks were often not available. Wells Fargo’s request for canceled checks was especially troubling, the judge said, given that the bank was a proponent of the 2003 law that allowed banks to stop returning canceled checks to customers.

The only institution that could have the original checks is Wells Fargo, he concluded.

“The payments have, evidently, been lost in a black hole of the creditor’s organization or through accounting mismanagement,” the judge wrote. “This is a major lender/mortgage loan servicer where the left hand does not know what the right hand is doing — the collection department does not know what the check processing and accounting departments are doing.”

Because this is not the first time the judge has encountered problems in Wells Fargo’s operations, he is considering sanctions on the bank.

“This dispute might portend a widespread abuse of collection practices or creditor overreaching,” he wrote, “demanding of debtors what it, the creditor itself, is unable to provide: accurate and reliable record keeping and billing practices.”

A spokesman for Wells Fargo said: “We are currently reviewing the court’s opinion to determine whether or not an appeal is appropriate. The Burrier case is quite factually specific, and we disagree with the court’s conclusions. We are confident that our payment processing practices are accurate and sound.”

Ms. Gaschler says that this kind of dispute is becoming more common in her practice and that borrowers wind up losing too often.

“A lot of times clients don’t keep canceled checks or maybe their bank account was closed and they can’t go and get the proof,” she said. “The bank gets that extra money for as long as the debtor can keep it up and when they can’t they are pushed out of their homes.”

While judges are starting to see how flawed loan servicers’ systems can be, those rushing to modify loans may not be as aware of the problems.

In the interests of fairness, modification programs should require life-of-loan histories from servicers and a justification of each entry. New loans, especially ones backed by taxpayers, are no place to bury dubious fees or extra borrower payments to cover those that were allegedly, but not actually, missed.




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Is Wells Fargo Ignoring Your Pleas for Help? Try this.: The Home Equity Theft Reporter: Maryland Lawmaker Accused Of Scamming Homeowner In Foreclosure Dodges Bullet As Unfavorable Jury Verdict Limits Liability To $11K

Is Wells Fargo Ignoring Your Pleas for Help? Try this.: The Home Equity Theft Reporter: Maryland Lawmaker Accused Of Scamming Homeowner In Foreclosure Dodges Bullet As Unfavorable Jury Verdict Limits Liability To $11K

The Home Equity Theft Reporter: Maryland Lawmaker Accused Of Scamming Homeowner In Foreclosure Dodges Bullet As Unfavorable Jury Verdict Limits Liability To $11K

The Home Equity Theft Reporter: Maryland Lawmaker Accused Of Scamming Homeowner In Foreclosure Dodges Bullet As Unfavorable Jury Verdict Limits Liability To $11K

WFHM VICTIMS TO BEGIN CLASS ACTION SUIT

WFHM VICTIMS TO BEGIN CLASS ACTION SUIT

HAVE YOU LOST YOUR HOME DUE TO
WELLS FARGO'S SNEAKY SCAMS?



Hello Kelly,

I found this blog by accident yesterday and I had to tell just a portion of my story. I am a survivor of the WFHM concentration camp. My identification number is 5588869. Thank you so much for sending me this email. I will check this blog often. Do you know if there is going to be a class action lawsuit against Wells Fargo anytime soon by angry forclosureees?

My loan was bought out by Wells Fargo and I had no idea that I was in for a nightmare after this deal with the devil had taken place. I am still hurt and angry and broke and I want reparations for all our loss, pain, suffering, embarrassment, humiliation, and financial ruin.

In a perfect world what would I want WFHM to suffer? First I would want my sold home back in my possession, and a minimum of 3 million dollars for my pain and suffering loss and financial ruin. I would want them to pay damages to the people who bought our home for any loss that they might incurr in the process, and I would want for every family member and or friend that gave us money to save our home, cried with us, prayed with us, walked the floor on sleepless nights, helped us move, bought food for us, clothing for our children, and suffered with us because of their love and concern for us to be paid damages. And I would also like to be compensated for the damage to my health, dignosis of high blood pressure, hair loss, weight gain, depression, aging, and all sorts of other complications that were a result of the toll taken on our bodies from the stress.

Yes in my fantasies, this would be my ideal victory where WFHM would be punished severely for their greedy unconscionable, selfish acts against the american people. But for now I will just settle for reading about the few who have had victory over this devil.

I would love to talk with you more at another time.

Take care and may God continue to bless you for taking up the sword and fighting the good fight of faith for His people.

D.M. Wade

DO YOU NEED HELP TO AVOID FORECLOSURE?

If you would like to receive information on how you might avoid the foreclosure of your home, please e-mail me your name, address, and phone number. Someone from our office will be in touch right away to assist you. With Warm Regards, Kelly L. Hansen, HOMEOWNERS HELPING HOMEOWNERS, ctsmyhon@yahoo.com
Be happy, healthy and prosperous, but most of all, be blessed.
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Kelly L. Hansen


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