I'm sorry if my questions seem elementary. I'll explain why I ask. I have gone through a fraudulent foreclosure on a HELOC taken out on a previously 100% unencumbered property. The foreclosure was as a result of a HAMP loan modification. The US Dept of the Treasury, HAMP are investigating the bank and loan servicer to see how this could have happened. I have spoken with many attorneys, real estate professionals, brokers, lenders, title companies, and no one has been able to answer these questions for me. I did a search today and this site came up. I have been fighting in court for 18 months in Unlawful Detainer in CA, in the Appellate Division, the State Court of Appeals, all the way to the CA Supreme Court. I am soon moving on to the US Supreme Court on this and several other issues including jurisdiction.
I do know that the HELOC was wrongly classified as a Re-Fi. Then, when the property sold, there was no payment to me of the difference between fair market value and the Trustee's Sale price. Bankruptcy court didn't understand this, until I called the Bank's VP and told them what was happening. The VP called the attorneys, who re-filed their 362 motion, and what resulted was a precedent setting ruling in CA regarding "real party in interest". I was hoping for a bit of clarification as to the kinds of violations that may have occurred to have allowed this to slip past the bank, the loan servicer, their attorneys, and now the court system. I know this is a rare occurrence, but it has nonetheless happened.
I would not need to ask these questions here if only people who are supposed to know in my state whom I have asked for the past 18 months would know the answers and would tell me. I hope someone here can shed some light on how all this could occur and no one caught it besides me.