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One of the worst cases of bank fraud you'll ever hear or, so i've been told.

Discussion in 'Stop Foreclosure and Tell Us Your Story' started by sooomad, Sep 2, 2011.

  1. sooomad

    sooomad LoanSafe Member

    my husband purchased his first home back in 2009 through guild mortgage company/san diego, ca.
    We have just recently found out that the bank committed fraud in that the loan was predatory in nature as they knew that he would not be able to afford the loan as his workers comp payments were going to stop within a 2 year time frame. The payments actually stopped sooner rather than later so we would have been in the position of not being able to afford the loan within a short period of time either way.
    We also found out that the bank illegally foreclosed on us about a year ago and then accepted forbearance payments from us for 4 months! The biggest issue with that was that we were never notified that we were even in foreclosure until the bank posted a sale notice on our door back in mid april of this year and the sale date was for the 5th of may 2011!
    We panicked and hired an incompetant, fraud, jackass bankruptcy attorney in an attempt to save our home which, come to find out should have been our last option but-that's another story.
    Then, to top it all off, (after just recently receiving the documents that guild filed with the county recorder) guild sold/transferred title twice through mers-once on the 5th of may and again on the 20th of july 2011!

    What makes this so much worse is that my husband is a 62 year old vietnam veteran with ptsd and also major physical disabilities due to a work related injury back in 2005 and the bank was aware of these facts prior to loan approval!

    This fiasco has ruined his health and his credit which can easily be documented.

    This is where it gets really good.

    We were getting word that my husband's extra workers comp payments were going to end-(this was a little over a year ago) and i emailed guild mortgage alerting them to that fact and requested a modification. They never answered any of my emails which come to find out is typical of this bank. It is also virtually impossible to reach anyone through their call center. We even sent them $500.00 in the interum which was promptly returned. It took about 8 months to finally get a loan mod packet from guild and after filling it out with all the required docs attached-they told us they lost all the paperwork! This happened twice!

    I then attached to my long email string to guild-some info concerning the bank of america who was doing the very same thing to their customers meaning-i busted guild for not operating in good faith to say the least.
    I also let them know that i had found an email from their loan agent from 2009 in which he stated that, (after speaking with my husband's workers comp attorney) that the possible settelment money and current payments could not be considered as income and that he would try and get around it with underwriting. Obviously he did which is illegal as hell.

    I have documented every single thing guild did and just as important-what they did not do but should have in my long, continuous email string over the last approximate year and a half.
    So much so that after all of this and the sale/transfer through mers-we are still in our home as they do not know what to do with us at this point. They sent 2 of their goons out to our home about a month ago to try and intimidate/harass us which got them nowhere. They tried to pull the cash for keys ploy and all it got them was my husband telling them that if they did not get off our property-they'de be shot as we have signs posted all over the place-"tresspass, get shot."!

    Here's the kicker,
    we have all the documentation we need to sue them big time and they know it however, i have been unable to find an attorney that is qualified to take the case and sue the bank for fraud without a 4-5 thousand dollar retainer. I was even willing to up the anty by way of offering a higher contingeny amount but-so far-no takers.
    If i had any legal background whatsoever-i could get the bank to settle as they cannot even handle or answer my emails at this point!
    I almost forgot to mention that i did get one response from guild and one only just a couple of weeks ago which said that they were going to forward all my emails to their compliance dept.! My response to that was this-
    wow! That is so awesome! This sounds like the i.r.s. Doing an internal audit on themselves! Gee-i just can't wait to hear back from you on all the illegal stuff you guys have done on this deal!
    Needless to say, i have not heard back.

    Does anyone have any suggestions as to what we might do from here?
    I have heard a lot about the administrative act of 1946 but have no idea as to how to file it.

    Again, guild mortgage never, ever sent us any documentation as to their filing for foreclosure or the transfer through mers or attempted to call us/answer emails/etc... In order to work this out and we are now beyond the point of working anything out with them. The only option left is to sue them for fraud.

  2. freedomwon

    freedomwon LoanSafe Member

    sooomad - Welcome to Loansafe. Sorry to hear about your difficult time. Welcome to the club! You've been on a long journey & you're not done yet. There's a couple things you can do to get some attention to your file. I encourage you to file a complaint with the OCC & the Ca. Attorney Generals office. Send your complaint CMRRR. Here's their address:

    Comptroller of the Currency
    1301 McKinney Street ste 3450
    Houston, Tx. 77010

    You can also file your complaint online here Help and Frequently Asked Questions about National Banks from OCC's HelpWithMyBank.gov

    Once you have a complaint on file, you will be assigned a case number. An investigation will begin & Guild will be held just a little more accountable (not much though).

    Here's the address for the AG's office:

    Attorney Generals Office
    California Department of Justice
    P.O. Box 944255
    Sacramento, Ca. 94244

    The key to successfully defending against foreclosure is building & gathering evidence. If you simply want to negotiate with your lender, you must do so from a position of power not weakness. Gather all your evidence. Point out to your lender that you have documented evidence to prove their FRAUD.

    I would also advise you to check with your county recorder to see if documents such as the NOD & NOTS were filed. Physically go there & get copies of everything in your file since inception on your home loan. From what you've shared laws have definitely been broken.
  3. Peach14

    Peach14 LoanSafe Member

    Have there been any suits against the banks (particularly Bank of America) for tampering with loan papers by adding income and assests to a home loan application in order to get the client to qualify for a loan? Wouldn’t that be “bank fraud�
    When we applied for our loan our income was reported on our "Assets and Liabilities" page as $2,554.00 a month more than it was in reality. The same page reported we had $65,000 in Wells Fargo. We not only didn't have that money, we didn't even have, nor have we ever had, an account at Wells Fargo. We realize we were WAY TOO TRUSTING of our "Client Manager" with whom we had worked for over 4 years so we signed papers without reading them.

    The Bank of America also was negligent in that they never had us sign, nor have we ever seen a copy of a Fannie Mae 1006 (or equivalent) which I believe they wer supposed to have us sign before sending it to the other financial institution (in this case Wells Fargo) to verify the account we supposidly had with them. We think this is a case of bank fraud.
    PS We have 2 complaints pending with the OCC one for over 6 months. We don't put much faith in that office. We even had our Congressman send the OCC a complait of ours only to be told the OCC believed what the bank said so end of story!
  4. davephx

    davephx LoanSafe Member

    what a mess... I hesitant to jump in :(

    sooomad - help to know what state your in - unless I missed it - mtg company in CA but don't know what state your in.

    Big problem is you are not fighting foreclosure, but home is already sold hopefully at least to the bank not a third party. That makes it much harder.

    Attorneys won't take these cases often unless its a large class action since the banks will tie it up for many years in the Courts.

    One key is if in whatever state your in if the states foreclosure procedures were followed with proper notice before sale etc etc but each State is different.

    Would try your State's Attorney Generals office. I think there are some vets organizations that might maybe help but I do not know any specifics or the Vets law which I think is more for current active duty not foreclose while in war etc.' Might also try HOPE Hotline.

    Peach14 -
    ok lets assume they committed fraud. The false application info seems common sadly. That is exactly what the just filed FHFA lawsuit is against 17 of the major banks.

    AZ Attorney General filed consumer fraud suit in Dec 2010, NV also in their just amended complaint includes consumer fraud. Both of these against BofA but all the banks seem to be doing the same thing

    But the legal process is very slow. The banks will tie up the cases for many years in the courts and unless a homeowner gets a TRO civil suits will not delay foreclosure and eviction. Once I was quoted a $25,000 retainer just to do a TRO case!

    For the last 3 years Congress folks have been buried in complaints. There were 4 very vocal Congressional hearings discussing all the problems we are seeing and getting worse. The Democrats were very upset, banks were losing paperwork sent in my Congressional offices (and BofA kept losing documents sent by AZ AG's office! for citizens). The Republicans support the banks -move faster on foreclosure to clean up the housing market and kill HAMP.

    The frustration is we are at mercy of the banks and other than long drawn out costly lawsuits they can get away with it.
  5. sooomad

    sooomad LoanSafe Member

    Thanks so much for your speedy reply.
    Actually, i did file a complaint with the attorney general's strike force in calif. And let guild know that a complaint has been filed. That was the only option i had at the time to keep guild from continuing to harass us and possibly file an unlawful detainer against us. I really didn't think they were going to go to that extent because-from what i understand-it is very expensive to file an unlawful detainer and our home/property has dropped in value tremendously over the last year or so. The initial loan was around 130,000.00 and the actual value at this point might be around 30,000.00
    the county did send us everything that guild filed from the get go and unfortunately i am not familiar enough with the docs to understand everything i am looking at. It really stinks when you are in a low income position and cannot afford a retainer/attorney. Obviously-the banks know this and that is why they were getting away with this crap for so long. Again, thanks so much for the info. I will pursue a complaint with the comptroller. Do you know of any governmental entities that can actually pursue the bank for damages and put money in our pocket?
  6. Jeffrey L. Shurtliff

    Jeffrey L. Shurtliff LoanSafe Member

    The "getting around the comp pay in underwriting". This is a fraud on the loan. However if you do challenge this you must do it in the state court to have a chance. What I would do is copy the email and write a detailed letter to their litigation department disputing the debt and attach the email to it. There is alot of stuff going around on truth and lending laws, but normally what I have seen in Federal court case law is it does not apply to residential loans. Don't quote me on that though. Because most ot the cases claiming it are shot down for failure to state a claim for relief to be granted.
  7. Peach14

    Peach14 LoanSafe Member

    Thanks for your reply. Unfortunately as with most things the government agencies can go after the banks but they aren't going to do anything for the "little guy". Even if they prove that these 17 banks had committed fraud when they sold the mortgages and mortgage backed securities to Fannie Mae and Freddie Mac, those two companies will get something to make up for the money they are out but it still won't address any individual loans. We won't see any remuneration for the fraud that was committed on us!
    Where is the justice for each of us? We are the ones who are suffering because of this fraud, yet we get no satisfaction other than to know the banks have been seen for what they are.
    We are going to file a complaint with the Attorney General's Office in California and as I said we have already tried to get some satisfation out of the OCC, but I don't hold out much hope.
    Just as an adendum we are on of the people who have been inundating our Congressional Reps. for the last 2 years. We get nice canned letters back, but no action! We are loyal Democrats who believe in the American system of government, but we are beginning to have our doubts! When we have such a grossly disproportionate distribution of wealth in this country where the top 2-3% of our population controls over 75% of the wealth they can call the shots in Washington. We really have no hope of getting any satisfaction on our fraud accusations. As a wise man once said, "You don't put in jail the guys who are writing the checks!"
    We will continue with our complaints to the various government agencies, and try to use our evidence when negotiating with the bank, because deep down in side we still hold our a tiny little bit of hope that somewhere out there is someone who CAN do something and WILL do something to stop these money-hungry jerks who are running and ruining our country.
  8. Jeffrey L. Shurtliff

    Jeffrey L. Shurtliff LoanSafe Member

    Your only help is through the state courts. No agency will step up to help you as all are not quite the same problems. A general rule has to be made as far as principal reduction with the mod. IF not all other rememdys are moot. Find a good cause of action and type up a suit for state court. Not in federal court they are corrupt.
  9. davephx

    davephx LoanSafe Member

    Nevada is asking for $12,000 for each NV homeowner defrauded, $10,000 fine on each etc., etc.

    But the bad news is it will be tied up in Court for many years with some settlement probably for far lesser amount.
  10. davephx

    davephx LoanSafe Member

    At least the Democrats are on our side vs Republicans totally against.

    But there isn't anything Congress folks can do since there is no way they can pass anything in Congress with the opposition of the R's since D's need 60 votes in the Senate and a majority in the House. They had to water down health care so it is such a mess just to get the 3 R's votes in the House to pass.

    One D Congresswomen (forget Maxine Walters? in CA or the vocal Michigan House person) demanded the banks provide Congress a phone number to work out problems after she told of so many HAMP documents were being sent in many times by her staff and lost. I think this was when Diamond(Chase) said to contact him directly with problems. Congressfolks demanded the banks submitted answers and contacts to help with problems. Of course they ignored all these requests at 4 very vocal Congressional Oversite hearings in 2009-2010.

    The banks simply ignore the livid upset D's congresspeople and the R's are equally upset that HAMP just gets in the way of the banks clearing out the deadbeats and let housing recovery with new responsible homeowners.

    Massive lawsuits make known in the media only hope to get shareholders upset enough to demand the boards change policies - ah stop the fraud. But most big shareholders are usually Republicans which side with the banks and the wealthy not the middle class.

    The only current hope is the consumer fraud suits but will be tied up in the courts for years.

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