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Servicers, Loan Mods and Fraud – Oh MY! ConsumerWarning.net Brings Home the Report

24 Oct

We’ve been saying for some time now that borrowers dealing with Servicers are loan modifications are playing Russian Roulette with their futures – that Servicers have financial incentives to push borrowers into late and default status; and that many of these so-called loan modification programs will play out as hundreds we have already seen: the borrower will pay the temporary modification payments which will be less than the normal payment and that the servicers will wrack up the differences and put the borrower in default – ultimately foreclosing on the borrowers even while they are still trying to make temporary modification payments; and without warning.  Borrowers end up spending the last of their savings, dipping into retirement accounts and wiping out their reserves just in time to lose the house anyway.

This is one reason we do not trust loan modifications of any kind at this point – we have seen it happen too many times… Or, conversely, demands for large lump sum payments from borrowers to be ‘converted’ from a temporary to a permanent loan modification… A ‘permanent’ loan modification that only goes out 3 years, or is still interest only, or has no final long term contractual commitment.

This video from ConsumerWarning.net (one of the sites to first publicly expose the ‘Produce the Note’ doctrine which taught borrowers to DEMAND to see the note – and which is now proving to be at the center of this ongoing fraudulent disaster we call the mortgage crisis) lays it right out there so anyone can see it.  Why DO Servicers want to buy pools of poorly performing or defaulted loans?  Watch and learn:

 

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