Lenders pay high priced attorneys who will “lie, misrepresent and violate the law” and will do most anything for the mortgage company they are employed by. That being said:
With all of the fraud and deception coming to light during the current foreclosure crisis, it is easy to overlook the massive fraud that has been a standard of the mortgage industry for years. When loans are originated, they are often quickly sold off to large investment banks, which then hire mortgage servicing companies to collect the monthly payments.
These servicers have been involved in the practice of stealing homes from uninformed, vulnerable property owners through a variety of schemes. They may hold payments made on time for a few extra days, thereby making them late, or place forced property insurance onto an already-insured home, or engage in any number of other activities that set up an easy foreclosure if homeowners fall behind due to a hardship.
Some servicing companies misapply payments and sell the loan without informing the homeowners of the new creditor are two common activities these companies engage in that pushes homeowners straight into foreclosure and make it more difficult for the owners to find out what is really happening to them.
One of the more devious aspects of mortgage servicing companies is they will keep making these "clerical errors" like misapplying payments or putting forced insurance onto a property and never informing the owners. But if the owners misses a mortgage payment, then the foreclosure process will start and proceed very swiftly, while the bank uses its own errors and fraud to pile on the reasons that the homeowners have defaulted on their mortgage.
Because they often engage in such fraud and wrongdoings, servicing companies in particular seem to feel the need to move forward as quickly as possible with the foreclosure. This has the effect of pushing the owners into a desperate attempt to save the house any way possible, instead of examining critically the errors that the bank is making in the process.
Homeowners have rights and can try to protect themselves against such deceitful acts by the lenders, but without knowing how to defend themselves it is very difficult.
The fact that the homeowners will often miss a payment also leads them to blame themselves for the situation, rather than the mortgage company's fraud and mistakes. The entire foreclosure lawsuit is often nothing more than a scheme, a legal method of stealing a home that relies on the desperation and
ignorance of the owners to fail to recognize the scam.
By doing an audit of your loan documents Mortgage Audit Service will find the Fraud and Violations your lender has committed against you.
