Americans And Mortgage Servicers: An Unhappy Relationship Right Now

Bankruptcy Attorney Dayton, Oh

Reports show that private sector jobs are on the rise, which is a welcome change from the last few years. The mortgage industry can not say the same, because of the recent investigations and revelations about abuse and fraud by mortgage servicers on a wide scale basis. A recent article by the New York Times detailed all of the shocking abuses that homeowners have faced in the last few years and the nightmare experiences that these homeowners have gone through.

The article in the New York Times described mortgage practices that were highly dubious if not outright criminal yet were commonly used by many major mortgage lenders. These practices include forging signatures on important mortgage documents and foreclosure paperwork, fraud concerning the execution of documents on a widespread basis across the industry, being deceptive in statements made concerning paperwork correction and problem resolutions, and misrepresenting the fees charged to consumers. According to the article these practices had become normal operating procedure for even reputable lenders at times instead of the exception, and this was true all across the USA.

According to the Times publication the federal government has come up very short as far as investigating and regulating mortgage lenders and servicers. The article goes on to state “It’s nice to know some attorneys general are taking matters into their own hands. One is Martha Coakley of Massachusetts, whose lawsuits against big banks have unearthed important details about dubious mortgage practices.”

Martha Coakley is not the only Attorney General who has taken steps against the unsavory mortgage lenders. The Times article states “Another is Catherine Cortez Masto of Nevada. She filed a case against Morgan Stanley that was settled last year, generating as much as $40 million in monetary relief for borrowers. She also participated in a suit against Wells Fargo that resulted in $45 million in principal forgiveness for Nevadans. And she has a case pending against Bank of America. Last month, Nevada Attorney General Catherine Cortez Masto sued Lender Processing Services, the huge default and foreclosure processor that works behind the scenes for most large banks. With this case, she demonstrated how enlightening an in-depth study can be.”

Lender Processing Services is one of the biggest perpetrators against homeowners according to Nevada Attorney General Catherine Cortez Masto. The article in the New York Times went on to say “The complaint, which came after a 14-month inquiry, contends that L.P.S. deceived consumers by committing widespread document execution fraud, misrepresenting its fees and making deceptive statements about its efforts to correct paperwork. Investigators interviewed former L.P.S. employees and customers and examined foreclosures the company had worked on. ‘L.P.S. played a critical role in the deceptive foreclosure practices that have harmed Nevada homeowners and burdened Nevada courts,’ the complaint said.”

The result of the actions taken by these Attorney Generals may not help many homeowners already faced with foreclosure or eviction. Bankruptcy may be the only way to save your home if you have been the victim of foreclosure or eviction based on mortgage documents that are false, inaccurate, forged, or fraudulent. Many of these same lenders are dragging their feet on mortgage modifications, even in cases where they are supposed to work with homeowners. Military families have been foreclosed on while the military member was deployed even though this is illegal.

If you are having financial difficulties and find that you have problems making your mortgage payment each month, or you are worried because you may be facing a foreclosure in the near future, then bankruptcy may be the best option in many cases. This step may help you save your home, and this may be true whether you file under chapter 7 or chapter 13. The automatic stay which goes into effect when you file bankruptcy also applies to your mortgage, and this stay will prevent any foreclosure until your case is resolved.

A qualified bankruptcy attorney can help you get your finances under control again, retain your home if possible, and get a fresh start when you need it most. The bankruptcy attorneys at Richard West Law offer a free bankruptcy consultation to help you find the right answer for your unique debt problems and circumstances. Visit https://www.debtfreeohio.com or call (513)771-8700 or (937)748-1749 to get the answers you want, and the financial relief you are looking for.

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