Reply #65: I’ve been researching mortgage/foreclosure fraud for over two years

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now and my views have changed dramatically. Modern day securitized mortgages are a totally different breed of loan and once understood, people should consider various options.

Chances are there is fraud in your neighbors’ mortgage that violates Federal law. Chances are the company that would bring a foreclosure action against them, doesn’t own the Note and can’t legally prove ownership.

If your neighbors were interested in moving and not fighting a foreclosure which can take years, they could have found a renter and signed a 5 year rental agreement with the option to renew twice. That would tie up the property with a renter for a possible 15 years. That keeps the home occupied and provides income for the homeowners during the foreclosure process which they could use to pay an attorney to fight the foreclosure. They could position themselves to own two homes rather than one. It can be affordable to fight a foreclosure but I like to see well heeled homeowners and their legal talent join the foreclosure fight.

I am a business person and I often do deals on a hand shake involving thousands of dollars. A valid agreement is one thing, but securitized mortgages are no such thing. I now see my own mortgage for what it is – a scam. That’s why I hired an experienced attorney.

If the foreclosure goes uncontested, the foreclosing party will likely prevail in court. The property will likely have a clouded Title which will be a problem for any subsequent buyer. If your neighbors are so inclined in the future, they could file a Wrongful Foreclosure suit against the bank/mortgage servicer to regain the property and damages.

I believe your neighbors are acting in what they believe is their best interest. I think they are better off fighting the foreclosure. It’s not my decision to make though.

I have nothing to indicate your neighbors have done anything wrong but I do realize that banks/mortgage servicers have and will commit fraud and that your neighbors have most likely been defrauded. If you have a mortgage, chances are you have been defrauded. My own nice 30 year fixed rate mortgage has at least $54,000 in fraud. My attorney says she hasn’t yet seen a mortgage that lacks fraud. Homeowners often don’t realize that anything is amiss until they go to a professional.

The people who are underwater on their mortgages – well that’s likely due to appraisal fraud.

There are people with the view I had that “a deal is a deal.” I agree, as long as the deal is valid and legitimate. I don’t think anyone is obligated though to pay a scam.