RJC

MORTGAGE SERVICING FRAUD AT ITS FINEST!

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Having a successful(or so I thought)PERMANENT MODIFICATION via Bank of America after falling behind from being hit by drunk driver. Contacted BofA, advised to stop making payments in order to qualify for a modification, so I did, 4months later, foreclosure begun. Finally, having to retain legal counsel, and within only a matter of a few months, and a trial payment period of 4 months, I had a permanent loan modification, all arrears forgiven, loan brought current, and at 2.0% for the life of the loan. That was finalized March 2015. So from December 2014 - March 2015 the trial payments were made. I was informed of the approval and signed final papers in February 2015. April 01, 2015 was the 1st official new payment. Payments continued smooth sailing throughout the remainder of 2015. Payments were made in person at the banks drive thru teller window each month. 2016 was here. January, Feb., March, April, no issues. THEN:

MAY 2016 the nightmare: Upon presenting my check I was informed I did not have an account at BofA. 1st time homebuyer, single mom, didn't even know the loan could be sold. Was given the name of Rushmore Loan Management Services, no phone #. Went home, located a contact # via the internet and called. Explained what had just transpired and that I wanted to make my mortgage payment. After providing my personal information and confirming I could pay by check(considering I still had the check made out to BofA) I proceeded to provide the routing # &account# to my Wells Fargo Bank Personal Checking Account. Then I stated the amount to be paid. The same amount I had been paying for the previous 16 months. I was corrected and given an adjusted, increased amount due. I explained the circumstances, as well as my unsurprised rationality this should have been expected considering now a new entity was involved so of course the amount must be higher. Again I stated the amount I wanted to pay and I was told the amount due was the only payment to be accepted. After voicing my concerns of not knowing who they were or what happened to my loan, I was not comfortable paying anymore than what my contract stated and requested for documentation of something to confirm what was going on.Waiting 2 weeks, receiving nothing, and now my payment being late, I called again. Same scenario. Amount given to be paid, once again corrected, except now the amount was doubled. Refusing my payment of the original amount, stating I would pay the rest ONCE I HAD SOME FORM of identification and explanation of what had happened to my loan. I explained it was of urgency I make this payment bc it was a modification and I did not want ANY issues. Payment refused unless the full amount paid, and amount was NOT what had been the prior obligation, now it was more. The phone call ended. Within a few days I signed on to my checking account to check on something and if I was not floored!!!

June 24 2016 This bank had illegally accessed my checking account and had withdrawn nearly $4000.00 (by storing my personal info from the previous 2 attempts I had made - equiv. 2 mos mortg pymnts-THEIR amount) as an ACH debit! THEN.... July 15, 2016, $2000.00 and again July 31, 2016, $2000.00. Reflecting FOUR CONSECUTIVE MONTHLY PAYMENTS. However, done in a matter of 36DAYS!!(that was not realized until later). Due to a tragic personal loss of my daughters 18 yo BF from an auto accident, things were very unstable and in shock at our home. Knowing the process that had taken place with the payments, still not in agreement but felt since the payments were being made, that was my main concern, I would address the amount once I had my daughter in a more stable mental state, I did not follow my account. All transactions were the same every month. on auto pilot and I was led to believe this was going to be the process regardless. 

March 28, 2017 I was served foreclosure papers. BECAUSE after the July 31 payment initiated as an unauthorized ACH, the ACH transactions abruptly stopped. So, 

August 02, 2016 (follow me here) became delinquent. Then,

September 20, 2016 a letter of a notice of intent to foreclose was sent. (never received but have copy from court doc's) then, of course the serving of the papers.. 

Furious, feeling completely violated, I had to process what was happening. Sending in my own response on the 21st day, finally making contact and in communication w/ a rep in August 2017. Having an issue w/our schedules making phone contact, I sent an email. He replied he would be "limited" w/ what he could discuss via email, however, I informed him I was not. Detailed, informative, nothing left out and all transactions noted, unauthorized, I gave my case. Never another word I heard. 3 more emails and a phone message and he was no where to be found. Time continued on. Next thing I knew, it was

April 2018 and I was being served Foreclosure papers......wait! what?!! okay.... must be a continuance because the papers read the same. Again, same process except this time I cannot make contact w/the person assigned bc every time I call I am transferred to a Spanish speaking vm, EVEN WHEN PRESSING 1 FOR  ENGLISH. I hire an attorney, 2 years later here we are, almost $10,000.00 later and just had foreclosure trial rescheduled because now all of a sudden, Bank of America pops in the trial w/ the witness my attorney had supposedly been trying to serve for depo but could not locate. Judge allowed to continue and my attorney did depo, unplanned, within the next 30 minutes. This guy is a joke. Forgive me. It has been a circus from day 1, unorganized, no information for me, wrong info given, no answered emails with questions, but MOST concerning is the fact that:

He has not raised one argument to the attention of the NUMEROUS violations that have been orchestrated that are FEDERAL RULES AND REGULATIONS! I apologize for this length but I don't know how to make it simplified. I have asked him if he sent a QWR - he states he did not because he has all he needed with his discovery. After sitting beside him in trial and he just sat there like a bump on a log, never objecting to allowing this unannounced witness AND attorney have the right of way, simply whining he had done all he could do to locate her and he felt prejudiced this would be allowed. THATS IT. Bank of America should have NOTHING to even do with this, am I wrong? They are claiming to have records they will use. For what? I thought it was "forgiven". What am I missing?  I have had to BEG this attorney to PLEASE raise the issue of the unauthorized ACH transactions, the 36 day rule, etc etc etc and ALL he will focus on is THIS:

So apparently in 2017, December 20, the foreclosure was dismissed and the loan was re instated. However, I was never notified, therefore, I could not make good of an obligation if I had no idea an obligation even existed. Loan Reinstated 12/20/2017, Foreclosure again, April 11, 2018.  Bank is claiming the 2017 reinstatement was a mistake. However, judge signed all was official. My Attorney is fixated on THIS ONE AND ONLY ARGUMENT, claiming I was never given the opportunity to make the loan current or keep current bc I had no idea of the reinstatement. True. But come on! Its not black and white. Not to me. What is black and white though is this, and PLEASE tell me if I have this all wrong. Let me add: I took it upon myself to format an Information Request Letter asking for copies of authorization for any/all ACH debits from my personal WF checking account, as well as, any copies of authorizations for any/all Revocation of Authorization for same. He has completely turned his head of this. I have stated from DAY ONE: I WANT THIS BANK HELD ACCOUNTABLE FOR THE ACTIONS THEY HAVE COMMITTED AGAINST ME which in the layman mindset I have that picture is colored as FRAUD!! I have told him over and over I want to be compensated and this is NOT just about this foreclosure, and have told him if I need to find another attorney to take care of this to tell me now because this is not it for me. And nothing. BUT THE BLACK AND WHITE : FEDERAL RULES AND REGULATIONS w/ RESPA and X and Z (I don't know the exact terminology) but what I understand the way this is viewed is a contract. Who breached the contract 1st? RUSHMORE did. How? By not honoring the terms of the permanently modified loan they began servicing from BofA, #1. Then-2. REFUSING MY PAYMENT, 3. NOT ONCE BUT TWICE. 4. ILLEGALLY UNAUTHORIZED ACH DEBITS INITIATED 5. ON THREE 6. SEPERATE 7. TRANSACTIONS, then 8. ABRUPTLY HALTING WITHOUT REVOCATION OF AUTHORIZATION 9. and proceeding to foreclose without ANY efforts after delinquency which would be the 10. 36 day rule of making "live" contact, then 11. 45 days written notice, and if that's not enough 12. After the 12/20/2017 re instatement and then the April 11, 2018 foreclosure, the time frame between the 2 dates DO NOT REFLECT THAT OF THE MANDATORY 120 DAYS THAT MUST BE BETWEEN. Am I really losing my mind? PLEASE help me understand.

Break time!! xoxoxoxo

RJC

 

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Oops!!! forgot this!  At the Depo, I was presented with a fabricated false document claiming it to be a "Payment Plan Agreement". I clearly explained that was the FIRST time I had ever seen such a document and never had any of the information included in the document, ever been discussed or agreed to in any way, ever. Obviously there was NO signature anywhere. Lastly to add, I did receive 3 Fed Ex deliveries w./regards to the request of authorization for the ach transactions. To sum it up, they concluded complying the request by re stating simply the process that had taken place, and that a transaction was "initiated" on June 24, 2016 and again for the July payments stating the funds were "requested" and all three transactions as a one time payment. Yessss,, it was INITIATED!!!! BY WHOM??? and YESSSS..... I'm sure the funds WERE REQUESTED, by WHOM???? 

NOT ME AND they sure could not provide me with a signature!! Then with regards to the Revocation of Authorization- claiming something along the lines it was not relevant to this file. 

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I hope you have retained an attorney.  

If not, you are almost certainly in over your head and will lose your home.  
 

There used to be a fellow from Milwaukee who posted on this forum.  He had a very dicey foreclosure situation.  He got an excellent attorney and won the case.  

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Amount increased was not by much at all. $40 which is the reason I left matters alone while dealing with the issues of the traumatic unexpected loss of our close family friend. However, I had a specific amount that had been paid for the past 16 months under the modification w/ BofA, so upon having a new servicer, no notice of the loan being sold/transferred,etc., from BofA OR this "Rushmore", even the slightest change in payment amount raised red flags.  I simply requested they send me some form of confirmation who they were, what had happened with my loan, and a coupon book or something so I would know what the amount was going to be, but that never happened either. It seems, from the information gathered, even at that moment when I had provided my account information and payment amount, they should have accepted instead of completely refusing, but perhaps I'm wrong.

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I have retained attorney, almost $10,000 spent already but EXTREMELY dissatisfied and know if I continue w/him I am sure to lose our home.  Trying to figure out how to get the federal rules that have been violated, addressed, but the attorney has not raised one issue with them and is focused on something else that seems to me can be argued, giving us no grounds to succeed. From what I have gained of all the research, the violations are what will give us the fighting chance. Am I wrong?

 

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I'm trying to understand why you said you didn't know what happened to your loan after BofA told you in person that it had been sold. The new servicer, the name of which you got from BofA, verified your personal info, so you had no reason to believe it was some kind of scam.

If they were saying your payment was 20% higher then i could see you being unwilling to pay the additional amount, but i can't imagine creating all of these problems over $40.

How far behind were you when they took the $4,000 double payment on June 24?

When was the last time you read through your mortgage contract? What does it say about them taking payments from previously provided payment methods? What does it say about your monthly payment amounts potentially fluctuating for various things? 

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Obviously, I do not communicate well. I verified my information TO the new servicer.  Again, having NO financial knowledge, was completely unaware a loan could be sold. Insult at that also if you wish.  Upon being requested to provide proof of the amount of payments I had been making, knowing they should be fully aware of this amount, AS WELL AS when  a loan is sold, the terms of the loan not changing, ONLY  the place where the payment is sent, yes, I had EVERY reason to be concerned. Having no documentation of who this new bank was, change in payment amounts after being fully aware of the terms of the modification, I feel I had EVERY reason to be concerned, EVEN AT ONLY A $40,00 PER MONTH increase. To some, that $40 increase is significant, as hard as that may be for others to understand.  And yes, in heinsight, or however you spell it, in a way, I wish I would have just paid, however, accepting the amount I was TRYING to pay should have never been refused. Again a second time at making a payment should have never been refused, BUT MOST IMPORTANTLY, storing my personal information, accessing my personal checking account and taking these funds, unauthorized, FOUR MONTHS WORTH OF PAYMENTS IN A MATTER OF 36 DAYS IS FRAUD!

Thanks guys for the input but this is what I am NOT in need of. Why so quick to assume the wrong, amazes me.

 

I  was not behind AT ALL UNTIL THEY STARTED REFUSING THE PAYMENTS.

Again, my neglect with reviewing mortgage contract. Didnt know this was something I was supposed to be doing. When a contract is signed, activated, and carrying through without issues, why would I have to review it?  What is says is the terms of the loan do not change, only the place the payment is sent.  The ONLY thing to make amount change would have to do with Escrow, AND IF there is a change in payment amounts I AM TO BE NOTIFIED 15 DAYS PRIOR. Hope that answers your question.

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Thank you BackFromDebt- I will see if I am able to locate info on this. I  do need as much as help as possible. Recently discovering fabricated agreements, requesting copies of authorizations the bank has been unable to provide because they do not exist, has taken this to a whole new level. thank you again

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Didnt know this was something I was supposed to be doing. When a contract is signed, activated, and carrying through without issues, why would I have to review it?

Because you should always review any contract (or any other document put in front of you) before signing. I know most Americans don't do that and as long as the contract is followed, there is usually no issue but when problems like these come up, you need to know what the contract calls for because you can be sure the other side is going to use the contract against you and not having read the contract is not an excuse.

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20 minutes ago, RJC said:

Again, having NO financial knowledge, was completely unaware a loan could be sold.

I understand not knowing. You need to understand it's not a defense. You are responsible for knowing what you sign. 

20 minutes ago, RJC said:

when  a loan is sold, the terms of the loan not changing

The terms didn't change. They told you the amount was different because a new servicer had taken over servicing the loan. This means the new servicer charges a different rate for servicing the loan. The old servicer could have done the same exact thing if they had changed their rates. 

20 minutes ago, RJC said:

Thanks guys for the input but this is what I am NOT in need of. Why so quick to assume the wrong, amazes me.

So far you haven't shown you were in the right. You breached your mortgage agreement, and the servicer is exercising its rights under the contract. 

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41 minutes ago, RJC said:

To some, that $40 increase is significant, as hard as that may be for others to understand.

I totally understand. My mortgage amount has changed, which I didn't understand, but, instead of assuming fraud, I tried to understand the change. I found that things like taxes and insurance are estimated and broken down into monthly portions, with excess being placed in an escrow account, and shortfalls taken from that escrow account. This is to keep the mortgage payment as consistent as possible. In my case their estimate of tax and interest for the year was wrong, so they temporarily raised my mortgage until the escrow balance was corrected. I didn't expect my payment to change, but I discovered there was nothing criminal behind it. My payment eventually went back down. Today I noticed that it is slightly higher than last year.

 

 

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Thank you for the explanation. Its definitely a learning process. Using the term fraud was only stated from true belief of fraud actually happening. Accessing my personal checking account, withdrawing funds, unauthorized, and continuing to do so, seems to be classified as fraud. I cant think of another term. Theft, maybe? 

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4 hours ago, Harry Seaward said:

I understand not knowing. You need to understand it's not a defense. You are responsible for knowing what you sign. 

The terms didn't change. They told you the amount was different because a new servicer had taken over servicing the loan. This means the new servicer charges a different rate for servicing the loan. The old servicer could have done the same exact thing if they had changed their rates. 

So far you haven't shown you were in the right. You breached your mortgage agreement, and the servicer is exercising its rights under the contract. 

How did I breach the agreement? I tried making the payment. TWO seperate occasions. The rules and regulations state a payment cannot be refused. The terms may have changed due to the servicing of the loan, however, no advance notice of any change was given, nor any notice there was a transfer of the loan.  I think that is what is referenced as a hello and a goodbye letter. Fraudulent documents have been fabricated and the serious issue of mortgage servicing fraud is of great concern, I am becoming very familiar with. Really dont feel I am the one who has breached.  There was no efforts made as far as making live contact with me upon the 1st delinquency, nor attempts after the following delinquencies at the 36 day mark for each one, as is required.  120 days also had not passed prior to the refiling of foreclosure in 2018, another violation, (Think I explained but not positive) The ONLY REASON this process was initiated BEGAN when they refused to take ANY payments from me, took it upon themselves to access my personal bank account, consecutively reflecting that of FOUR months mortgage payments, UNAUTHORIZED, THEN halting this process, no notice to me, after leading me to believe this was the manner in which payments would be made, then filing foreclosure. Any attempts made for any other outcome? Not one. Are they required to do so? Sure are 

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52 minutes ago, RJC said:

How did I breach the agreement? I tried making the payment. TWO seperate occasions. The rules and regulations state a payment cannot be refused.

You failed to make the required payment.  There is nothing in banking laws or regulation that states a creditor must accept a partial payment. The second problem with a partial payment if it is accepted is you are still 30 days or more late and it triggers late fees and increased interest.  

54 minutes ago, RJC said:

The terms may have changed due to the servicing of the loan, however, no advance notice of any change was given, nor any notice there was a transfer of the loan.  I think that is what is referenced as a hello and a goodbye letter. Fraudulent documents have been fabricated and the serious issue of mortgage servicing fraud is of great concern, I am becoming very familiar with. Really dont feel I am the one who has breached.  There was no efforts made as far as making live contact with me upon the 1st delinquency, nor attempts after the following delinquencies at the 36 day mark for each one, as is required. 

Here is the major problem:  they do not have to prove you received any notices they sent.  Only that they sent them and producing letters and attesting they did send them will be sufficient for the courts that they conformed to the laws requiring notice.  There is no requirement in any lending law that they make live contact considering that once they are in arrears the courts are acutely aware most consumers dodge their creditors.

56 minutes ago, RJC said:

120 days also had not passed prior to the refiling of foreclosure in 2018, another violation,

Violation of what?  If you were not making the required payment then you are late.  Even if your less than minimum payment had been accepted because it is not the full amount that is considered 30/60/90/120 days late.  

59 minutes ago, RJC said:

The ONLY REASON this process was initiated BEGAN when they refused to take ANY payments from me, took it upon themselves to access my personal bank account, consecutively reflecting that of FOUR months mortgage payments, UNAUTHORIZED

The problem with defaulting on a car loan or mortgage is they have an acceleration clause.  That means once you became in default for ANY reason the entire loan balance was due.  You say that BoA was the original mortgage holder.  Is your checking account there by any chance?  If it is then you REALLY should have read the contract you signed for a right of set off .  If there is a clause in there authorizing that then them raiding your checking account like they did may have been legal.

The bottom line is you need a REALLY good real estate attorney because this is not a DIY project.  You could lose this house.

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16 hours ago, RJC said:

How did I breach the agreement? I tried making the payment. TWO seperate occasions.

If you go to McDonalds, order a burger for a dollar, and then only give them 50 cents, they will refuse the 50 cents, not give you half a burger and keep the other half warm.

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