Example of Homeowner Doing Her Homework

What Many Homeowners Don’t Know About Stopping Foreclosure After It Begins

When foreclosure starts, many homeowners assume it’s already too late to stop foreclosure. That belief is often wrong. This case shows how a homeowner took the time to understand her mortgage, the foreclosure timeline, and the sale date process before giving up. By doing her homework, she learned that foreclosure can still be delayed or stopped, even after a notice of default is filed. This blog breaks down what she found, why it mattered, and how asking the right questions can change the outcome when you’re trying to stop foreclosure or defend against a foreclosure sale date.

When QWRs and DVLs Fail

Homeowners are often told to use Qualified Written Requests (QWRs) or Debt Validation Letters (DVLs) to force servicers to provide answers. In practice, these requests rarely uncover the truth. Instead, they expose statutory violations that can serve as the foundation for lawsuits.

The real challenge is convincing homeowners themselves. Many walk away from their homes—leaving behind hundreds of thousands of dollars in equity—because they believe the foreclosure is legitimate. But evidence shows otherwise: the liens are often partially or entirely invalid, and no legal creditor exists to collect on them.

A Web of Companies Designed to Obscure Responsibility

Take the case of Covius and its affiliates. A forensic investigation shows how this web of companies mirrors organized crime:

• Covius Holding owns Covius Solutions, which owns Nationwide Title Clearing (NTC).

• NTC is notorious for forging and falsifying assignments of mortgage, directed by Black Knight, Inc. (formerly Lender Processing Services).

• Instructions flow through secured message centers, often concealed behind chains of shell entities controlled by Wall Street banks.

This “nesting doll” structure makes it nearly impossible for homeowners—or even regulators—to identify the true decision-makers.

The Anatomy of a Fraudulent Assignment

On May 30, 2020, NTC, acting on behalf of Covius, recorded a fraudulent mortgage assignment in Barry County, Michigan. The document was fraudulent for several reasons:

• Prepared in the name of a dissolved company, Perl Mortgage, Inc. (closed in 2019).

• Assigned to PennyMac Loan Services, LLC, a “servicer” with no real servicing functions.

• Executed by robo-signer Justin Borkowski (NTC employee), notarized with a fabricated stamp in the name of Vicky McCoy.

This was nothing more than a forged transfer, designed to create the illusion that PennyMac had authority over a loan it never touched.

Where Does the Money Actually Go?

The deception continues with the diversion of mortgage payments. Homeowners’ payments are laundered through a network of third parties:

• Exela, Regulus, and Transcentra collect checks mailed to PO boxes in Dallas and Los Angeles.

• Funds are redirected to a credit union account in California (Financial Partners CU, account ending 6811)—with no evidence that they reduce any loan balance.

• Escrow funds are handled by CoreLogic (taxes) and a mystery “Third Party Payment Processor” (insurance).

• Billing, correspondence, and call centers come from at least 15 different companies, none of which are PennyMac.

This web of companies handle billing, correspondence, and call center operations, none of which is PennyMac.

What Does This Mean In Reality?

PennyMac’s name is simply being used to legitimize a widespread fraudulent operation.

Why This Investigation Matters

This forensic analysis confirms that:

• No Loan Account Receivable: Forensics confirm there is no creditor with an unpaid loan account receivable.

• False Representations: PennyMac and Covius misrepresent their roles, leading homeowners to believe they owe payments to entities with no legal standing.

• Money Laundering: Payments are siphoned through shell accounts, benefiting Wall Street investment banks—not creditors.

• Regulatory Blindness: Agencies and courts, often compromised or instructed to “look away,” fail to investigate even when fraud is obvious.

Homeowners are not fighting a legitimate lender; they are up against a complex financial machine designed to manufacture foreclosures.

Key Takeaways for Homeowners

This article has given you the understanding that you may be facing a larger and highly deceptive issue if you’re coming face to face with foreclosure. Don’t assume the lender or servicer has legal standing. You may be dealing with a manufactured foreclosure machine where no valid debt exists. Attorneys like us at Living Lies are here to uncover the truths in your case and fight back against foreclosures. With these takeaways, consider contacting a foreclosure defense attorney for help:

1. Servicers like PennyMac are not creditors.

2. Assignments fabricated after lenders dissolve are void, NOT voidable.

3. Payments routed to shadow entities do not reduce principal or interest.

4. Homeowners are battling a financial machine, not a legitimate lender.

Need help assessing your case?

Contact Living Lies Foreclosure Defense Attorneys today at 844.583.5339 or submit a case statement online for a complimentary case recommendation.

Foreclosure Defense Disclaimer

Foreclosure defense is complex. Results are not guaranteed. Success depends on the homeowner’s ability to challenge standing, demand discovery, and fight through litigation. Foreclosure mills will try to wear you down—but fighting back can delay or even defeat unlawful claims.

Tags: foreclosure defense, STOP FORECLOSURE
Posted in foreclosure defenses, Foreclosure Questions |