sje123

Where's My Note? They Don't Know

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Just because everyone else was doing it, I asked my bank (BoA) for my note. It's been over 2 months and I've received a letter about every two weeks saying they haven't yet found the loan documentation and they are sorry for the delay.

I just got another one. What are the chances they don't have it, and what do I do if they don't?

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You can send the RESPA letter I have posted in the forums here which gives them a limited amount of time to produce the documents or else they are subject to civil liability.

They may just be lazy or they may really not have it. A RESPA letter will force their hand.

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.

By trying the "Produce My Note" - advocating using this method to try to get something for free, it is not going to work. This tactic can be used to try stall foreclosure proceedings and buy a homeowner time to get a loan modification done. Homeowners stuck with unaffordable loans should use every option available to them to induce their lender to modify their loan to prevent foreclosure.

It has now been publicly announced, borrowers do not receive favorable outcomes when working directly with them Lenders. Bank of America for example - looking at over this year, homeowners have less then a 24% chance they will be approved for a loan modification. Anyone dealing with numbers, the results are shocking. See link for a report card on different Lenders. http://bailout.propublica.org/loan_mods/list

If you start acting like you have one up on them, especially if you are late. They are note going to be freely releasing or volunteering any information.

Not being late - unless your state has a law, mandating them to furnish your request within a certain time period. All your can do is keep on calling them.

-

Today wrote letter American Home Mortgage Servicing. Last year one of my clients did a loan modification. She has made twelve on time payments and is illegible for 2nd loan modification. In January her payments are scheduled to increase. She has request multiple times her documents without success.

She didn't know where she put her paperwork - the only thing she found was her loan note when she last refinanced. I ran the numbers in my mortgage calculator, comparing the what her new payment is now, backing out the numbers. She was $31,500 in arrears (nine missed payments) .See her loan amount had increased around $50,000.

I have concerns before the modification that after missed payments, the final loan amount modified was too much. Requesting both the loan note and loan modification that was done last year. If my concerns are proved, the next step is requesting an amortization and penalties schedule.

After a loan modification reduced monthly payments, finding Lenders are increasing the principle amounts (unchecked) by themselves. This is a very serious problem that nobody is addressing.

This is another example on how corrupt the banking system is....

.......

ALAR... Law Group, PC

December 8, 2010

To: Loss Mitigation Department

American Home Mortgage Serving (AHMSI)

(877) 304-3100 (866) 452-1837 Fax: (866) 795-6529

Regarding:

P... B.....

Address

Telephone...

SS# 321-23-xxxx

Subject: Notice

• Request for a copy of the Promissory Note for loan # 00230959xxx

• Request for a copy of 2009 Loan Modification for loan # 00230959xxx

This is an official request for documentation pertaining subject loan pertaining to P... B.... loan with AHMSI. Attached you will see her signed authorization to release information, exclaiming her right for us to verify all information concerning her mortgage obligation with AHMSI.

Please forward within 10 days a copy of her Promissory Note and Loan Modification done in 2009 for subject loan. Send documents to our fax # ...., or email to ...

Any questions or request for information, please contact me directly.

Sincerely,

.

Edited by 2ndTimeAround
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I'm not looking for anything. I'm looking to see if they have my note. I don't understand your post other than a rage against banks.

However, if they don't have my note, why is everyone making such a big deal about it if it doesn't buy you anything?

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This is the exact reason why all notes should be kept electronically. We are approaching 2011 not 1911.

I'm sorry to be this blunt but.....Horse crap.

I've spent years in the legal and IT profession. There is not a single electronic storage format that cannot be altered in one form or another. NONE. A $20 image editing package can be used to alter dates and signatures then turned into a "secure" PDF. You can change dates on files by simply changing the BIOS date on the system before saving the file.

Why do you think the CRAs, collections, and banks are such a mess now? I have seen banks and credit unions just this year that DON'T do regular backups of their primary systems. I rescued one just two weeks ago that F-d up their disaster recovery site and accidentally took over $2million from member accounts by ACH transfer. Thankfully the file had not been transmitted to the Fed and we were able to undo it. Two hour later and it would have been too late.

Paper is inefficient, yes, but hard copy is the only way to ensure the integrity of the record system and land records are a far bigger deal than you seem to think.

Edited by Methuss
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Not being late - unless your state has a law, mandating them to furnish your request within a certain time period. All your can do is keep on calling them.

RESPA is Federal law and requires servicers and lenders to answer your questions regarding the servicing of your account within very specific time frames. The penalty for failure to comply with RESPA can be very strict, up to and including dissolution of the Mortgage, Note and Lien. RESPA also has a provision prohibiting negative reporting to bureaus and continuing collections while a dispute over payments is subject of the RESPA request.

I have seen, in some of the most eggregious violations, homeowners get the balance of their mortgage wiped out entirely (and, yes, kept their homes). Mostly this occurs when lenders/servicers try to take someone's home when they refuse to produce payment histories and it turns out they didn't credit all payments correctly; but it does happen.

Edited by Methuss
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Guest usctrojanalum
I'm sorry to be this blunt but.....Horse crap.

I've spent years in the legal and IT profession. There is not a single electronic storage format that cannot be altered in one form or another. NONE. A $20 image editing package can be used to alter dates and signatures then turned into a "secure" PDF. You can change dates on files by simply changing the BIOS date on the system before saving the file.

Seems like an extremely easy solution to this type of problem, just have the custodian of the records be a party who has no interest in the note or the real property, use twofish encryption, and every 3 years have an independent 3rd party audit the system to check for inconsistencies.

Why do you think the CRAs, collections, and banks are such a mess now?

Because they do the exact opposite of what I mentioned above.

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RESPA is Federal law and requires servicers and lenders to answer your questions regarding the servicing of your account within very specific time frames. The penalty for failure to comply with RESPA can be very strict, up to and including dissolution of the Mortgage, Note and Lien. RESPA also has a provision prohibiting negative reporting to bureaus and continuing collections while a dispute over payments is subject of the RESPA request.

At last - somebody knows the Procedures........ Well said Methuss!!!...:)++:)++:)++

However what the Laws are and who is enforcing them - let is the question today.

I have seen, in some of the most eggregious violations, homeowners get the balance of their mortgage wiped out entirely (and, yes, kept their homes). Mostly this occurs when lenders/servicers try to take someone's home when they refuse to produce payment histories and it turns out they didn't credit all payments correctly; but it does happen.

Agree every situation is different.

This week had an exceptionally egregious case against Wells Fargo come to a resolution. After a year and a half - finally got the modification completed. This lady is New Jersey was in a 4yr old Option Arm paying on time making her minimum payments . Since she was not late - in the banks eyes she was not showing a hardship. In the big picture - making minimum payments the balance was substantially growing. Then next year when her loan was schedule to recast the payment would become unaffordable. After many denials - we had to up the corporate ladder to one of the vice presidents, who knew about these types of loans.

This proves how one sided demeanor and hard it is to deal with Wells Fargo.

The lady received new 40yr @ 2% fixed for the life of the loan. Plus a major amount knocked off the principle. Going to be saving $1645 per month, from her previous payment. At 2% the lender is making nothing, basically a free loan.

:)

.....

Edited by 2ndTimeAround
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However what the Laws are and who is enforcing them - let is the question today.

RESPA has a private right of action. You don't have to wait for some federal agency to take action.

If you sue and get any sort of judgment it becomes an offset against the balance of the Note. Most commonly you see people taking up RESPA claims and getting judgments of a few tens of thousands of dollars which knocks quite a chunk off their principal.

One more thing about RESPA....and it applies particularly to re-finances. The lender is required to provide a disclosure about being able to rescind the loan. This disclosure must contain very specific language. A homeowner that shows they didn't get a properly worded rescind notice can unravel the entire refi and get all their payments back up to THREE YEARS after the error is DISCOVERED. Find out 4 years later that you didn't get the option to cancel within 3 days of the closing? You can undo it all. That's how strict RESPA can be.

Edited by Methuss
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I'm not looking for anything. I'm looking to see if they have my note. I don't understand your post other than a rage against banks.

It's because of the sloppy record keeping by banks. It's because of the too damn many errors in mortgage documents.

I spent a better part of five years as a mortgage broker, and before I ever even wrote a loan, I took a six month sabbatical and studied more than 1,000 hours learning the process, and the laws, knowing that the laws stated that if I submitted illegal documents or information on a loan, that I could be subject to five years prison time.

I was at a career change, and obtained a second mortgage to purchase a business, and after obtaining the financing, found that the tax records did not prove the income that the declaration of income of the business. There is a big difference between gross income and net income. I went to pay off the second mortgage, and discovered a stiff prepayment penalty. Dumb, dumb silly me.

Becoming a mortgage broker would provide a decent income, and helping homeowners get the right mortgage seemed to be my calling. I cared more about the person getting the loan, and would advise them to not go over affordable payments. With literally over 100 lenders at my fingertips, I was able to get loan approvals for people two hours after a Chapter 7 Bankruptcy, and even get loans for people one day after a foreclosure sale, but was the situation right? Not so, in many cases.

After about three years in the business, I came across a yahoo site about mortgage servicers "stealing" peoples homes. I began helping (volunteering information and resources) some of these people, and made an effort to quit using some of these lenders. After a while, I decided I did not want to have to deal with the mess anymore, and got out of the business altogether. That's been nearly five years ago, but I still come to this site, and help when I can.

I don't consider 2nd's post a rage at all, when you consider how did that new mortgage end up being $50,000 higher, other than a consumer, who was in need of a loan modification and had the pressure of foreclosure and losing their home, have a lender (servicer) come up with a solution that would allow the homeowner to keep their home. Imagine the relief of that homeowner, imagine yourself in the same situation. Knowledge is the key, but evidently, the relief overwhelmed the reality.

In his reference, this loan servicer just made off with a big fat fee laden mortgage modification, and all new paper on the loan. Hopefully (for the lenders sake), fully documented, and free of errors. I will say that I am not in favor of using a loan modification comapany, such as 2nd's, but sometime, somewhere, something has to give, and some of these modifications are much worse than crooked mortgage brokers.

Uhmmmm..... this post may be considered a rage.

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Read the Donna Baran thread....

Produce the Note, as a strategy will work, but it is only part of what the overall strategy is, knowing your rights, and then asserting them.

The Courts are corrupt, but there are lots of defenses.

And theres Lots of shills on here, so beware of them.

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