More servicer dirty tricks

In a previous post here I shared some servicer deceptive practices when dealing with homeowners they are trying to foreclose on.  In the realm of mortgage servicing, what meets the eye can be deceiving. In the spirit of my mentor Neil Garfield I am continuing to unveil deceptive practices employed by companies claiming to be servicers. In doing so I hope to shed light on the crucial role of vigilant homeowners and their attorneys in challenging these servicer illusions.

SERVICING IS ABOUT MONEY

Receipt of payments. Follow the money.

Contrary to common assumptions, the legitimacy of a company claiming to be a servicer hinges on its ability to deposit homeowners’ payments into its own financial account. If this fundamental process is not adhered to, the company lacks the right to record the receipt of such funds.

Third-Party Servicing

Many companies, like SPS, outsource their servicing functions to third parties. While legal if supervised by the company claiming to be the servicer, it often results in third parties handling correspondence and statements under the servicer’s name without performing servicing functions.

FALSE JOB DESCRIPTIONS HIDING WHAT THEY ARE REALLY DOING

Loan Boarding Analysts   

This job description is deceptive as it’s not about “onboarding loans” at all. It’s really about resetting data, like records of payments, after creating the illusion of a servicing transfer.

False Change of Servicer

Homeowners are misled into believing they are experiencing a “change of servicer” when no such transition has occurred. This illusion is perpetuated to conceal the outsourcing of servicing functions like collection of monies to those not authorized to do so.

CHALLENGE DECEPTIVE LABELS

Questioning Assumptions

Homeowners and their attorneys must exercise caution in accepting the labels and descriptions applied by banks to various companies and their activities. Many are deliberately false, designed to mislead stakeholders.

The Robo witness Problem

False testimony and exhibits often rely on a “robowitness” claiming familiarity with record-keeping practices. However, closer scrutiny reveals that the records were generated by a different company’s employee or automated system, rendering them inadmissible.

THE IMPORTANCE OF DISCOVERY

Presumptions and Attacks

Unless homeowners or their attorneys launch attacks through discovery, motions, and objections, false testimony and exhibits may be admitted into evidence. This can establish the presumptions that become the law and facts of the case.

Preserving Legal Proof

By undermining the opposition’s ability to rely on presumptions through strategic discovery demands and motions, homeowners have the opportunity to expose the deceptive practices and protect their legal standing.

IN CONCLUSION: Unmasking the illusion of mortgage servicing requires homeowners and their attorneys to challenge assumptions, question job descriptions and demand transparency through discovery and depositions. Vigilance in preserving legal proof and attacking presumptions is the key to dismantling deceptive practices and achieving victory in the face of foreclosure challenges.

Need help in assessing your case? Does your attorney need our help? Use our services to help guide you through the process early enough to avoid mistakes that can cost you your home in an illegal foreclosure action. Call our office today at 844.478.6774 to inquire if we can help. You can also submit a case statement here and get a complimentary recommendation as to your best course of action.

FORECLOSURE DEFENSE IS NOT SIMPLE. THERE IS NO GUARANTEE OF A FAVORABLE RESULT. THE COMMENTS ON THIS BLOG AND ELSEWHERE ARE BASED ON THE ABILITY OF A HOMEOWNER TO WIN THE CASE NOT MERELY SETTLE IT. OTHER LAWYERS HAVE STRATEGIES DIRECTED AT SETTLEMENT OR MODIFICATION. THE FORECLOSURE MILLS WILL DO EVERYTHING POSSIBLE TO WEAR YOU DOWN AND UNDERMINE YOUR CONFIDENCE. ALL EVIDENCE SHOWS THAT NO MEANINGFUL SETTLEMENT OCCURS UNTIL THE 11TH HOUR OF LITIGATION.

But challenging the “servicers” and other claimants before they seek enforcement can delay action by them for as much as 14 years or more. In addition, although currently rare, it can also result in your homestead being free and clear of any mortgage lien that you contested. (No Guarantee).

Yes you DO need a lawyer.