Erroneous Paperwork May Indicate a Bigger Secret

Many people suffering from mortgage nightmares haven't a clue what to look for when it comes to trying to uncover the dirty little secrets in their paperwork.  One good way to start is to request the papers. 

First start with all the legal papers associated with your present situation.  Your original mortgage documents, the deed or note, copies of any assignments of mortgage (you can get these from your courthouse or recorder of deeds office), the foreclosure papers.  Check out the dates. 

Saxon needs to rethink their company values

"Our goal is to provide valued services with Care, Responsibility and Attention to detail to ensure a unique and positive experience with Saxon.

 At Saxon, we pledge to deliver courteous and knowledgeable responses to all customer inquiries. You can make a payment online or view your account history by logging in. Refer to our Frequently Asked Questions (FAQs) or Glossary for general information. Our highly trained agents have the knowledge and expertise needed to resolve most homeowner inquiries in the first call. For more specialized situations, our Home Preservation team will work to structure a resolution that provides a fair and equitable plan."

Morgan Stanley Investigation: Feds Looking Into Firm’s Mortgage Deals

May 12, 2010 by
Stephen Bernard, Huffington Post
Morgan Stanley shares dropped in premarket trading Wednesday following a report that the investment bank is facing an investigation into mortgage derivative deals.

Reading for every borrower who applied for HAMP

Every borrower should take some time to read the 'Supplemental Directives' that govern the HAMP program.  When you are going through such a situation it is beneficial for you to know and understand the guidelines associated with the program. I printed copies and they were all inked up with notes and bright highlighted areas.  Learn what they are supposed to be doing so that you can hold them accountable for what they are not doing. 

Oh, how times have changed...

     Gone are the days when businesses were concerned about how their customers felt about them.  I remember hearing stories about how it was back when my parents were young.  People felt a sense of loyalty to the places they shopped, the owners and their families.  You were known by name and they actually asked you how the family was.  When did big business get so big that they stopped caring about the people who, without them profits would be lost? 

Take the Saxon Exprience Survey

We are asking Saxon consumers to complete our online survey.  This survey is designed to help us identify how Saxon customers are being treated, if they believe they are victims of fraud and answer general questions associated with your loan.  Please take the time to contribute your experiences to our cause.  With your help, we'll prove Saxon Mortgage Services doesn't live up to what they say.

Click here to take survey

Am I really part of HAMP?

 
   I recently had a wonderfully long conversation with one of Saxon's customers. She was told she had qualified for the Homeowners Affordable Modification Program (HAMP).

Servicing Companies stand to gain more by controlling the outcome

In addition to putting borrowers into default at will, they make vast untold sums of money before the property is foreclosed.

White collar Crimes and Mortgage Fraud

FRAUD —the art of deliberate deception for unlawful gain.
From foreclosure frauds to subprime shenanigans, mortgage fraud is a growing crime threat that is hurting homeowners, businesses, and the national economy.

Fair Treatment is the Law...

The Federal Trade Commission states that borrowers have the right to be treated fairly.  Mortgage servicers may not:

• count your on-time payments as late and then assess illegal late penalties
• Neglect to make on-time payments of taxes and insurance from escrow accounts
• Force borrowers to buy a second hazard insurance policy at inflated premium costs if the borrowers have valid insurance coverage.
• Report false information about their delinquencies to nation credit bureaus, thus, ruining borrowers' credit ratings.
• Decline to tell homeowners how much they owe and when it's due.
• Intimidate or harass customers who are behind on their payments
• Refuse to respond to borrowers' complaints or requests for information
• Refuse to work out delinquencies using loss mitigation tools.
• Stampede homeowners into quick foreclosures
• Force customers to waive their legal rights as the price of avoiding foreclosures.
• Transfer of service - your current servicer must notify you at least 15 days before the effective date of the transfer, unless you received a written transfer notice at settlement. The new servicer must notify you within 15 days after the transfer has occurred.
• There is a 60-day grace period after the transfer: you cannot be charged a late fee if you mistakenly send your payment to the old servicer. In addition, the new servicer cannot report your payment late to a credit bureau during this time.

Consumers who are experiencing difficulties with loan services have several courses of action.
The Real Estate Settlement Procedures Act (RESPA) gives them the right to complain directly to the loan servicers, and the right to receive a timely response. All correspondence sent to servicers must indicate, however, that the borrower is making “a qualified written request” under RESPA.

If you believe your loan servicer has engaged in deceptive, illegal or unfair practices, and you have been unable to satisfactory resolve the complaint, the State Attorney’s General Office or the Federal Trade Commission may able to help.

To file a complaint under the RESPA regulations, write:
Office of RESPA and Interstate Land Sales, Department of Housing and Urban Development,
451 Seventh Street, S.W., Room 9146,
Washington, DC 20410.

To file a complaint or receive free information on consumer issues, call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261.


More information

How do you fight Saxon Mortgage?

How does one fight a company that was identified as 'too big to fail' yet is operated by incompetent, under trained, $8.00/hr customer service associates who simply read the screen?  The only answer I can give to you is to educate yourself and use your legal rights to prove you will not be bullied into accepting what they believe is your fate.   Whatever life changing event led you to this current situation, you still have the power to fight back. It's about knowing what you have the legal right to fight about.

• If your facing foreclosure, demand to see the note.  Even if you already have a copy, demand it anyway.  They have to provide you with proof they have the right to try to take your home. The Consumer Warning network has created templates for a legal request, a letter to your lender and a motion to compel to help you through the process.
•  Consider talking with an attorney about a loan audit.  There are many scams out there but with a little research you'll be able to find a reliable auditing company.  A real estate attorney will be able to suggest a good audit service. Be very careful. Predators target people in distress.  Be sure they are associated with a law firm to defend the findings. 
• You can get ready for the audit by sending a qualified written request to your lender.   Here is a great template to use in order to request copies of your loan documents. ( click here )  It is a qualified written request that demands copies of all documents pertaining to the origination of the mortgage.

 Sometimes this is enough to shake up the mortgage company.  It gives them some indication that you know what you're looking for. If there is any possibility that your loan may contain errors, this move may get them concerned about what might be found.  These errors are violations of the laws that have been put in place to protect borrowers. When these laws are broken by mortgage companies many judges will find in the favor of the borrower. 

Remember, they don't have the right to

If your Mortgage is NOT 30 year fixed rate, have it Audited.

I've been doing a lot of research into Mortgage loan audits. One thing I've found is there are a large amount of loans that contain errors which could play in your favor. If you bought or refinanced your home sometime between 1997 and 2006, it is advisable to have a mortgage audit done on your loan.  This time span was when most companies were pumping out loans at a high rate of speed.  This is also when most sub prime mortgages were generated.  The standard mortgage for years was always 30 year, fixed rate.  One lawyer I spoke with said if you loan is anything other than a 30 year fixed rate, have it audited.  Enough said.

Mortgage Audit. Is it worth the money?

For those who aren't sure what a loan audit is, allow me to explain.  It is a complete review of your mortgage loan documents to determine if the homeowner was victimized by unfair, deceptive and predatory lending practices. An audit looks for violations of all relevant consumer protection statutes. A good audit should look for fraud, misrepresentation, unfair and deceptive acts, breach of contract, unconscionability and claims under other theories of law.
 In my opinion, the next wave of predators are eyeing up the housing industry.  I see multiple posts for "Forensic Mortgage Audits" during my daily rounds.  Don't be lured by flashy website and desperate shopping. Do the homework before paying any company.  I've seen some companies charging as much as $5000 for a complete audit.  Many people need to remember... if you had $5000 to fork over, you might not be in the present situation.  Just be sure it's worth the risk unless you've researched the company thoroughly. 

The best advice I saw on my travels was from an article written by Lane Houk called What is a “Forensic Loan Audit?” .  She stated "The real litmus test is to ask the auditor where most of their business comes from? If it’s not from consumer law attorneys walk away. Ask for attorney references at all times."

Would you walk away from your house?

The nightmare may still stretch on even after you lose your home. Some people think that when they lose their home to foreclosure, short sale or deed-in-lieu, they can just move on.  That may not be the case.  The promissory note is your promise to pay the loan. Your home is the collateral for the note. Mortgage companies may release you from the collateral but your promissory note may still be in effect, which means you're still on the hook.
When your mortgage company sells your home at auction for lower than what you owe, you may still be responsible for the difference.  This deficiency can come back to haunt you in the form of a judgement. 

A recent homeowner defaulted on his $200,000 mortgage.  At the time of losing his home, he still owed $175,000.  The bank sold the home at auction for $100,000 which left the former homeowner on the hook for the remaining $75,000.  Subsequently, he had to file bankrupcy. "That was the one thing I was trying to avoid.  If I would have known this was going to be the end result, I would have filed when I was served with my foreclosure papers. Maybe I'd still have my home."

Once they have a judgment, they can pursue you anywhere. They can ask for financial records, have your wages garnished and, if you fail to respond, a judge can put you in jail.

With the skyrocketing numbers of foreclosures, more people will be plagued with deficiency judgements.  Many people have no recourse but to file bankruptcy.  So, starting over may not be as easy as first thought.

Advice to others trying to get things done

I was recently asked what advice I'd give to others going through the loan modification process.  My answer to that is simple... Document everything. All conversations, all phone calls, all faxes - everything!
When and if you qualify for a loan modification, you'll need to send documents to verify your qualifications.  Given Saxon has a tendency to shred or misplace vital documents, you'll need to make it goof proof.  Although, even with that done they'll still mess it up. 
I received a list of items that were needed. I took the time to retype the list of items into a numbers list. I then took sticky notes and afixed them to every document associated with the corresponding number. Each sticky note contained the doc type, #, Last Name and loan number. (don't forget to list total pages)

1. All income statements, paystubs for all borrowers for the month of December. 
• Income statements for John Doe (2 documents - 1.1 & 1.2) 

Then I photocopied the entire packet, faxed a copied packet and also mailed a packet certified mail.  I kept a copy for myself (of everything including the envelope).  Twice during the trial period, we were told they didn't receive something. I'd reference the list and say it was submitted as part of the loan packet. You'll find it on document # whatever. All documents have been numbered.  Both times I was told, oh you have them numbered.  We found the document, sorry for the inconvenience.  This anal retentive way of doing it did provide some assurance.  Good Luck to you.

The Beckers: Getting informed and getting help

The Beckers: Getting informed and getting help

Saxon Mortgage Makes 2,497 Permanent Home Loan Modifications As Of December 2009. But where are the numbers?

In December 2009, it appeared Saxon was on the move.  They went from 42 completed modifications to 2,497. But in our case, the question still remains.... Where are the numbers?
We bought our home in 2005 for $85,500.  We are one of the very few who have been able to complete a modification with Saxon. It was not an easy process.  We signed our modification papers in December. We now owe Saxon Mortgage Services $97,000 and change.  But where are the numbers?  At no point during the process did they show a breakdown of the extra amount.  How do I know the late fees were actually waived?  They are supposed to be but without a breakdown, who knows.
We were given 30 days to review the papers and accept.  By the 7th of December, they were calling to ask if we had returned the signed documents.  They even offered us a $50.00 gift card if we return them before December 14th.  Whooopie!  This kind gesture sent up red flags for me. Why are you rushing me to return the papers?  I felt the need to have our Neighborhood Housing Services center review the contract before we agreed.  But did I have a choice, really?  Our home was scheduled to be sold later that month. If we didn't agree, we would have lost it all.
After getting the O.K. from our NHS agent, we signed and notarized the papers. Come January 30 we still hadn't received the final copies.  A call to the customer service department provided no help what so ever.  I was asked if I had made copies.  "Yes, but a legal binding contract requires all parties sign and notarize the contract.  I need a copy of the final paperwork."  I was told they don't send them. WHAT? In my eyes this modification was not final until I received a copy of the documents with their signature.  You wouldn't drive off a car lot without paperwork that proves you own the car.  Without the final documents, is my nightmare really over?
After much determination I was able to get a .pdf copy of our modification documents but to date, we have not received the official copy.  We are now underwater more than $35,000.  Just make sure what you're fighting for is worth the end result.

All in Due Time....

When other mortgage companies and banks were bracing for the impending 'pop' of the housing bubble, Saxon was acquiring servicing rights from other dysfunctional mortgage institutions such as NovaStar and New Century. Higher numbers of subprime mortgages meant a higher rating. This put them in a position to appear 'better' than some of the other banks.


I took the time to write to the COP with a different perspective.

“Let’s not measure a company’s success based on the number of ‘Trials’ extended to families. I feel you should base the success rate on how many have successfully completed a modification. Based on my own conversations with people enrolled in the trial period, very few have actually completed the process. Many signed papers and have never heard anything from their lenders. The trial periods are lasting longer than the expected 3 months and continue to be plagued with mismanagement, errors, and incompetence.

Your number 1 HAMP provider has an unsatisfactory BBB rating and poor business practices to the point that they have their own watchdog tracking their every move. I’d love to know just what constitutes them as # 1 in your book. I’d rate a company # 1 if they showed compassion and understanding in such an economic crisis; those that were willing to work with families who have seen hard times and help to fight to keep the American dream alive. This is not one of those companies.

By November 2009, the numbers were in and they didn't look too kindly on Saxon. Saxon had 35,565 active HAMP Trial modifications and had permanently modified 42. Yes, that's forty two. What a shame. Saxon had the potential to help 35,565 qualified borrowers who were participating in the HAMP trial and only managed to modify 42. I think the other 35,523 deserve an acceptable reason and not just another excuse.

Too Big to Fail Whom?

I, personally don't believe the government and the politicians grasp what many Americans are going through in this troubled economic time. People are walking away from their mortgages at a staggering rate, foreclosures continue to rise and roughly 10% of homeowners will end up underwater. That doesn't sound that bad.

Now take some time to read the stories behind those statements. The horror stories and nightmares will continue to ravage American families unless they find a way to reach those families. I believe a larger number of people would have been helped if the government had chosen to provide aid through a NON PROFIT ORGANIZATION that didn't stand to gain from the aid. If they want to help struggling families then they must go to where the struggling families are and not to Wall Street.  How do you think those folks on Wall Street got so rich?

It's aggravating to hear the government say the financial giants are 'too big to fail'. I'm certain the AMERICAN PEOPLE out number the financial giants by staggering numbers. Yet, the failure of the American People is apparently acceptable.

Here's something to get angry about. WE paid the TARF bailout money so the finanical giants could pay the bonuses they were contractorally obligated to pay. They accepted a loan from the AMERICAN PEOPLE in order to fulfill their obligations because they were unable to make their payments. They were in need and the generous American People came to their aid. But when those very same American people are backed into a corner the government fails to provide accessable aid to them.

Too Big to Fail? They have FAILED. They failed the American People.