JPM Whistle: My Boss Told Me, We're In The Foreclosure — Not Modification — Business

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Servicer Payments Keep Mortgages Current and Convert Liability to Unsecured

EDITOR’S COMMENT: MULTIPLE WARNINGS HERE. Nobody on the banking side wants modifications. Nobody actually has the authority. Modifications are admissions that the loan is worth less than what was sold to investors. But more than that, they mean that the servicer will not get a free house, which is what the Courts are allowing across the country when they allow the servicer or some other disinterested third party to submit a “credit bid” lieu of cash at the auction. What they want is foreclosures because this is a land grab — where the servicers and other disinterested third parties are getting something for nothing. By pretending to be a “lender” or successor or creditor they get to buy property with a wave of a wand — where they never loaned, invested or purchased the obligation.

Most modification scenarios end up with the borrower being turned down at random for any number of failures that don’t apply. The tricks used — including the famous “we didn’t get your papers, submit them again” — are known to everyone who has ever sought or assisted in modifications. Modification might sound good but it doesn’t turn out that way. They get you to admit you are in default and that the loan is in default — something that mostly is not true because the servicer is still paying on it even after they tell you that you are delinquent or in default.

When the servicer does that they are fulfilling a provision in the contract they have with Wall Street entities to make those payments — a term that was never disclosed to borrowers. They are also creating a possible claim against the homeowner — but that isn’t a claim on the mortgage, which is current, courtesy of the servicer making the payments; the claim is for restitution and cannot be achieved through foreclosure because the servicer is not the lender or creditor in THAT transaction. They must bring an unsecured claim that can only be processed judicially.

Foreclosures are the servicer’s reward for keeping their mouths shut about the reality of these transactions. They get a free house. They pretend to go through the modification process to make absolutely certain that you go further and further in the default zone, so their fees go to the highest point. Then they hit you with an up front payment requirement, which even if you make it, they still foreclose — because that is the business they are in — stealing houses through fraudulent foreclosures. But that’s not all — there’s more! Since your loan has already been paid off a couple of times, in most instances, every nickle they collect in payments is also free money with nobody to give it to. What a country!

Former JPMorgan Mortgage Servicer: My Boss Told Me, We’re In The Foreclosure — Not Modification — Business

Courtney Comstock | Jun. 20, 2011, 3:19 PM | 2,640 |

Image: commons.wikimedia.org

A former employee of Chase’s mortgage servicing company says his job entailed “making borrowers jump through every hoop so that when something fails to get done on time, they can deny it and foreclose.”The former employee, who is identified only as “Jared,” explained his job to Mandelman Matters, which writes:

Jared recalled what his boss had told him during his first week on the job: “We’re in the foreclosure business, not the modification business.”

“Foreclosures are a no lose proposition for servicers… The servicer gets paid more to service a delinquent loan, and they get to tack on extra charges. If the borrower reinstates, which is rare, then the borrower pays the extra fees. If the borrower loses the house, then the investor pays them. Either way, the servicer gets their money.”

“Their whole focus is to foreclose, not to modify. They make borrowers jump through every hoop so that when something fails to get done on time, they can deny it and foreclose. That’s what it seemed like to me, anyway.”

An army official’s father had an experience with the bank that backs up Jared’s claim.

He recently described what the Chase mortgage modification process was like for him, telling Huffington Post:

When he first asked for help in 2008, he had not missed any payments. At the time, his mortgage was being handled by Washington Mutual, a subprime lending specialist Chase purchased in the fall of 2008. Collette said WaMu told him he would only qualify for a loan modification if he missed two of his $1,100 monthly mortgage payments. So he missed the payments. And the bank began trying to foreclose on him.

Jamie Dimon’s unfortunate quote from a few months ago echoes this shocking strategy: “Giving debt relief to people that really need it… that’s what foreclosure is.“

These alleged practices, of course, are a large reason for Foreclosure-gate.

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Tags: bankruptcy, borrower, countrywide, disclosure, foreclosure, foreclosure defense, foreclosure offense, foreclosures, fraud, LOAN MODIFICATION, modification, quiet title, rescission, RESPA, securitization, TILA audit, trustee, WEISBAND
Posted in bubble, Corruption, Eviction, securities fraud |