How to Stop Mortgage Fraud & Foreclosure Fraud

 

A Primer on the Mortgage Mess

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Briefly, this is how it works, a Lender secures a large loan from a large bank, convert that loan into 20 and 30 year mortgages, then sell the promise to pay to an investor.

Usually a Real Estate Agent would contract with a seller to find a buyer, and then bring both seller and buyer to a lender who would secure the title from the seller using the funds borrowed for that purpose then trade the title to the buyer in exchange for a promise to pay (Promissory Note, or simply The Note) a certain amount over a stipulated term. The lender, however, has created a 20 or 30 year mortgage with money the lender must repay within 6 months, therefore, as soon as the closing is consummated, the Promissory Note is pooled together with others and sold to an investor.

Using a sample case as an example, a $139,200.00 Note at 7.8980% interest over 30 years will produce $352,108.80. The lender can then offer up the security at say 50% of the future value to the investor. The investor will, over the life of the Note, less approximate servicing fees, realize a profit of $180,466.72. The lender can then pay back the bank and retain a handsome profit in the amount of $52,429.60. The lender, however, is not done with the deal.

The lender, who signed over the Promissory Note to the investor at the time of the trade, did not sign over the lien document. The State of Kansas Supreme Court addressed this issue and stated that such a transaction was certainly legal, however, it created a fatal flaw in that, the holder of the lien document, at time of sale of the security instrument, received consideration in excess of the lien amount, and therefore, the lender could not be harmed and the lien became a void document.

This begs a question. If keeping the lien would render it void, why wouldn’t the lender simply transfer the lien with the Promissory Note? As always, follow the money. The lender will hold the lien for three years, file an Internal Revenue Form 1099A, claim the full amount of the lien as abandoned funds, and deduct the full amount from the lender’s tax liability. The lender, by this maneuver, gets consideration a second time and still the lender is not done profiting from the deal.

After the sale of the Promissory Note, the lender remains as the servicer for the investor. The lender will receive 3% of each payment the lender collects and renders to the investor pool. However, if the payment is late, the lender is allowed to assess an extra 5% and keep that amount. Also, if the loan defaults, the lender stands to gain a considerable amount for handling the foreclosure.

The lender stands to profit far more from a Note that is overly expensive in the first instance, then when borrower is slow to pay in the second, and in the third when the property ultimately goes into foreclosure, rather than from a good stable loan. And where, you may ask, does all this profit come from? It comes from the equity the lender convinced the borrower to invest in the new purchase, and still the lender is not finished profiting from the deal.

The last nail was driven in the American financial coffin on the last day of Congress in 1999, the Graham Bailey Leach Act (see Acts to briefly understand this act), was when they removed a restriction that had been in place since the economic collapse of 1907. At that time, investors were allowed to bet on stocks without actually buying them. This unbridled speculation lead directly to an economic collapse so the legislature banned the practice, until the year 1999. The money changers got their way on the last day, the last act of the session, when congress opened the process again and it took only 8 years to crash the stock market again.

The lender was still not done profiting from the loan he created as he was now free to bet on the failure of the security.

The unsuspecting consumer was lulled into accepting the pronouncements of the Real Estate Agents, the Lenders, Appraisers, Underwriters, and Trustees as all were acting under the cover of government regulation. Unfortunately, the regulations in place to protect the consumer from just this kind of abuse were simply being ignored.

The loan origination fee from line 801 of the HUD1 settlement statement is the finder’s fee paid for the referral of the client to the lender by a person acting as an agent for the borrower. Hereinafter, the person or entity who receives any portion of the yield spread premium, or a commission of any kind consequent to securing the loan agreement from the borrower will be referred to as “Agent.” The fee, authorized by the consumer protection law is restricted to 1% of the principal of the Note. It was intended that the Agent, when seeking out a lender for the borrower, would seek the best deal for his client rather than who would pay him the most. That was the intent, but not the reality. The reality is that Agents never come away from the table with less than 2% or 3% of the principal. This is accomplished by undisclosed fees to the borrower in order to induce the Agent to breach his fiduciary duty to the borrower and convince the borrower to accept a more expensive loan product than the borrower qualifies for. This will generate more profits for the lender and, consequently, for the Agent.

It is common practice for lenders to coerce appraisers to give a higher appraisal than is the fair market price. This allows the lender to increase the cost of the loan product and give the impression that the borrower is justified in making the purchase.

The lender then charges the borrower an underwriting fee in order to convince the borrower that someone with knowledge has gone over the conditions of the Note and certified that it meets all legal criteria.

The trustee, at closing, participates actively in the deception of the borrower by placing undue stress on the borrower to sign the large stack of paperwork without reading it. The trustee is, after all, to be trusted and has been paid to insure the transaction. This trust is systematically violated for the purpose of taking unfair advantage of the borrower.

With all this, it should be no surprise to anyone that this country is having a real estate crisis. If you’re interested in fighting back in order to save your house from foreclosure (and you would also like to help us, help others to do the same) by learning how to use the rule of law and the American judicial system, then get started today.

The entire loan process is a carefully contrived connivance designed and intended to induce the unsophisticated borrower into accepting a loan product that is beyond the borrower’s means.

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  • Federal Debt Validation Letter(s)
  • Error Resolution & Information Request (ERIR) Letter
  • Qualified Written Request (QWR) Letter
  • Federal TILA Rescission Letter
  • Tort Letter to Stop Foreclosure Sale
  • Bankruptcy Package
  • Bonus Reports
  • Quiet Title & Foreclosure Defenses Videos
  • Federal FDCPA Complaint
  • Bloomberg Securitization Audit
  • Mortgage Forensic Audit
  • Chain of Title Analysis
  • Quiet Title / Wrongful Foreclosure Compliant
  • COURT READY EXPERT WITNESS AFFIDAVIT
  • Robo Signing Analysis
  • Temporary Restraining Order
  • Lis Pendens
  • Expert Witness Testimony
  • How to Win in Court Pro Se Education Course
  • Pro Se Litigation Support
  • Mediation Negotiation Settlement Services
  • BUY NOW
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  • FRAUD STOPPERS Private Members Association Membership
  • Mortgage Fraud Analysis
  • Potential Cause of Action Consultation
  • Federal Debt Validation Letter(s)
  • Error Resolution & Information Request (ERIR) Letter
  • Qualified Written Request (QWR) Letter
  • Federal TILA Rescission Letter
  • Tort Letter to Stop Foreclosure Sale
  • Bankruptcy Package
  • Bonus Reports
  • Quiet Title & Foreclosure Defenses Videos
  • Federal FDCPA Complaint
  • Bloomberg Securitization Audit
  • Mortgage Forensic Audit
  • Chain of Title Analysis
  • Quiet Title / Wrongful Foreclosure Compliant
  • COURT READY EXPERT WITNESS AFFIDAVIT
  • Robo Signing Analysis
  • Temporary Restraining Order
  • Lis Pendens
  • Expert Witness Testimony
  • How to Win in Court Pro Se Education Course
  • Pro Se Litigation Support
  • Mediation Negotiation Settlement Services
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For information on foreclosure defense call us at 800-459-1215. We offer litigation support, admissible evidence, expert witness testimony, education, training, and support in all 50 states to attorneys and pro se homeowners.

 

 

  • Turnkey Lawsuit Package

  • $1495

  • FRAUD STOPPERS Private Members Association Membership
  • Mortgage Fraud Analysis
  • Potential Cause of Action Consultation
  • Federal Debt Validation Letter(s)
  • Error Resolution & Information Request (ERIR) Letter
  • Qualified Written Request (QWR) Letter
  • Federal TILA Rescission Letter
  • Tort Letter to Stop Foreclosure Sale
  • Bankruptcy Package
  • Bonus Reports
  • Quiet Title & Foreclosure Defenses Videos
  • Federal FDCPA Complaint
  • Bloomberg Securitization Audit
  • Mortgage Forensic Audit
  • Chain of Title Analysis
  • Quiet Title / Wrongful Foreclosure Compliant
  • COURT READY EXPERT WITNESS AFFIDAVIT
  • Robo Signing Analysis
  • Temporary Restraining Order
  • Lis Pendens
  • Expert Witness Testimony
  • How to Win in Court Pro Se Education Course
  • Pro Se Litigation Support
  • Mediation Negotiation Settlement Services
  • BUY NOW
  • Securitization Audit

  • $995

  • FRAUD STOPPERS Private Members Association Membership
  • Mortgage Fraud Analysis
  • Potential Cause of Action Consultation
  • Federal Debt Validation Letter(s)
  • Error Resolution & Information Request (ERIR) Letter
  • Qualified Written Request (QWR) Letter
  • Federal TILA Rescission Letter
  • Tort Letter to Stop Foreclosure Sale
  • Bankruptcy Package
  • Bonus Reports
  • Quiet Title & Foreclosure Defenses Videos
  • Federal FDCPA Complaint
  • Bloomberg Securitization Audit
  • Mortgage Forensic Audit
  • Chain of Title Analysis
  • Quiet Title / Wrongful Foreclosure Compliant
  • COURT READY EXPERT WITNESS AFFIDAVIT
  • Robo Signing Analysis
  • Temporary Restraining Order
  • Lis Pendens
  • Expert Witness Testimony
  • How to Win in Court Pro Se Education Course
  • Pro Se Litigation Support
  • Mediation Negotiation Settlement Services
  • BUY NOW
  • PMA Membership

  • $295

  • FRAUD STOPPERS Private Members Association Membership
  • Mortgage Fraud Analysis
  • Potential Cause of Action Consultation
  • Federal Debt Validation Letter(s)
  • Error Resolution & Information Request (ERIR) Letter
  • Qualified Written Request (QWR) Letter
  • Federal TILA Rescission Letter
  • Tort Letter to Stop Foreclosure Sale
  • Bankruptcy Package
  • Bonus Reports
  • Quiet Title & Foreclosure Defenses Videos
  • Federal FDCPA Complaint
  • Bloomberg Securitization Audit
  • Mortgage Forensic Audit
  • Chain of Title Analysis
  • Quiet Title / Wrongful Foreclosure Compliant
  • COURT READY EXPERT WITNESS AFFIDAVIT
  • Robo Signing Analysis
  • Temporary Restraining Order
  • Lis Pendens
  • Expert Witness Testimony
  • How to Win in Court Pro Se Education Course
  • Pro Se Litigation Support
  • Mediation Negotiation Settlement Services
  • BUY NOW

 

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FRAUD STOPPERS Can Help You Stop Foreclosure and Mortgage Fraud

If you or anyone you know is facing foreclosure, or has already lost a property to foreclosure, and want to sue for mortgage fraudforeclosure fraud, wrongful foreclosure, or quiet title to your home FRAUD STOPPERS PMA can help you save time and money and increase your odds of success getting the legal remedy that you deserve. If you have received a Notice of Default (NOD) or a Foreclosure Notice (Foreclosure Complaint) and you want to know how to respond to the Notice of Default (NOD) or a Foreclosure Notice (Foreclosure Complaint) join FRAUD STOPPERS PMA today because FRAUD STOPPERS has a proven system to help you fight to save your home from foreclosure and sue for mortgage fraud. FRAUD STOPPERS turnkey Quiet Title Lawsuit package or Wrongful Foreclosure Lawsuit package includes a court ready complaint (petition for damages), Bloomberg Securitization Audit, Expert Witness Affidavit, Application for Temporary Restraining Order (to stop a foreclosure sale or stop an eviction), Lis Pendens (to cloud the marketability of the title to the real property), and Pro Se legal education material that can show you how to win a Quiet Title Lawsuit or win a Wrongful Foreclosure Lawsuit. This entire court ready Quiet Title Lawsuit Package or Wrongful Foreclosure Lawsuit Package can help you save money in legal fees and help you increase your odds of success. Join FRAUD STOPPERS PMA today and get mortgage fraud analysis and the facts and evidence you need to get the legal remedy you deserve at www.fraudstopper.org/pma

 

 

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DISCLOSURE: NOTICE OF Copyright © 2019  FRAUD STOPPERS, FRAUD STOPPERS PMA. Disclaimer: Any information or answers are provided for informational purposes only, does not constitute legal advice, and does not create PMA-Member relationship. THIS SITE IS NOT INTENDED TO BE MISCONSTRUED AS LEGAL ADVICE. Legal Information is NOT Legal Advice: This site provides “information” that is only designed to help users safely cope with their own general legal needs. Legal information is NOT the same as legal advice — the application of law to an individual’s specific circumstances. FRAUD STOPPERS is a National Private Members Association (PMA). PLEASE TAKE NOTICE OF THE FOLLOWING MARS Disclosure[s] 12 C.F.R. 1015.: (1) FRAUD STOPPERS PMA is NOT Affiliated with any Government Agency or Any Bank Lender; (2) Even if YOU Accept any of  FRAUD STOPPERS PMA Products or Services Your Lender May Choose to NOT Change Your Loan.  FRAUD STOPPERS products and services are only available to Active Members of the FRAUD STOPPERS PRIVATE MEMBERS ASSOCIATION. To join FRAUD STOPPERS PMA click here: https://www.fraudstoppers.org/members-only/

 

 

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