Any Surprise?? Fannie Mae enters the mortgage scam business, hires Strategic Recovery Group for bogu

eddward

LoanSafe Member
I went through a foreclosure this spring in Pa. (a recourse state). Had 2 separate lawyers tell me that it was very unlikely that Bank America would persue a defficiency judgement. 6 months later I get a phone call from Strategic Recovery Group stating that they had been hired by FNMA to collect on a judgement against me for the foreclosure.

I responded within the proper time period that there is no judgement against me in that matter, and would like to see the documentation that they legally represent FNMA, and a copy of the judgement. ( FORECLOSURES ARE PUBLIC RECORD, SO ANYONE COULD CALL YOU UP AND TRY TO GET YOU TO PAY THEM,,,, BEWARE!!)

It took them many weeks, but they finally produced:

A letter from FNMA acknowledging their collection arrangement, and the original balance on the loan, (not the balance at the time of foreclosure) and the present balance (with no supporting calculations or facts)

A copy of the original note

A copy of the Sheriffs Deed, and the transfer tax statement of value

And a letter from them outlining general terms and events, and " the total outstanding mortgage debt at the time of foreclosure was $xxxxx. The real property subsequently sold [email protected]@@@@. The remaining "deficiency balance" which was left unpaid in the foreclosure sale, in the amount of $##### is due in full

I drove to the courthouse today to see who the property was subsequently sold to, and guess what? It was still titled with FNMA. The dollar amount that is allegedly was sold for was the estimated fair market value from the the realty transfer tax statement of value.

There was no judgment against me at the courthouse either. SRG (I'm sure it was just an accident) fudged the word "deficiency judgement" against me from the "default judgement" given to Bank America at the foreclosure hearing to re-posess and sell the property at sheriffs sale.

It's a really sad day in America when our goverment gives billions of bailout $$$$ to quasi federal agencies who then attempt to pull shady deals like this.

Borrowers Beware
 

OverandDone

LoanSafe Member
Were they trying to collect the full amount of the loan or a portion of it? Did you get a full bid at your sheriff sale?
 

eddward

LoanSafe Member
Were they trying to collect the full amount of the loan or a portion of it? Did you get a full bid at your sheriff sale?
Bank did not get the full amount at sale, I guess I did not write the post clearly enough, they are trying to collect an amount made up from ficticious or erroneous figures that they have no legal right to collect without first getting a deficiency judgement from a court. They are purposely trying to scam me and who knows how many other persons
 

kiera

LoanSafe Member
Hmmm...I, too, have been getting letters from Strategic Recovery Group after a Fannie Mae Foreclosure. However, there is no mention of judgment of any kind in the letter; simply a deficiency. The first letter was a "generous" offer to settle for $7000 of our total $29,000 defiency. Today, I got one where the settlement is a not-so-generous $10,000. I can only assume the next one will be even less generous. If I had money, I would have been paying my mortgage and never would have had to foreclose...ugh.
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Hmmm...I, too, have been getting letters from Strategic Recovery Group after a Fannie Mae Foreclosure. However, there is no mention of judgment of any kind in the letter; simply a deficiency. The first letter was a "generous" offer to settle for $7000 of our total $29,000 defiency. Today, I got one where the settlement is a not-so-generous $10,000. I can only assume the next one will be even less generous. If I had money, I would have been paying my mortgage and never would have had to foreclose...ugh.
Kiera, is this a sold out junior lien they are attempting to collect on?
 

eddward

LoanSafe Member
Suggest you first check if your state is s "recourse" state. If so, try to find out what the statute of limitations is. Fannie needs to go to a judge with a new request for a judgement, for which you will be served with a whole new round of paperwork, and giving you the chance to respond. If this has not happened, and limit has expired, they have no further recourse, and action against you (me) is illegal.

In my case they did not use the word judgememt in their written demand, it was verbal from first contact.

They are using the word "deficiency" wrongly, and probably intentionally. Yes there was a deficiency between the amount you paid and what was owed, but they likely don't have a deficiency judgement allowing them to garnish wages/seize other assets.

If a few more people post this same problem I will see if there might be an ambulance chaser that would start a class action suit
 

eddward

LoanSafe Member
Also, would not send them any money without checking with lawyer first. The one that closed the property for you in the first place might give you a 10 minute opinion for free
 

OverandDone

LoanSafe Member
This happened to me several weeks ago. I got a letter with a small "deficiency". And when I phoned them they said they represent FM. They offered to settle it for a few hundred dollars. Now this seemed odd because I had received a full price bid at my sheriff sale the previous year. When I asked about it they said it represented the final fees that were added to the total after the sale took place which seemed even stranger to me. Since it was a very small amount and I really wanted to put this all behind me I paid it. I am not sure if I should have paid it but I did. I still have a small second floating around out there and at first I thought that was what this was for but it wasn't. It was for the first loan.
 

Jeffrey L. Shurtliff

LoanSafe Member
If FANNIE mae owns the property that means the bank bought the house at the sale. Generally when that happens it is for the full amount of the loan. If they say a judgment has been entered against you then they must have summoned you to court to sue. This is the only way they can get a judgment. Pursuant to the law you have the right to answer a suit or if you don't you default. I would fight these people and defend yourself. See a lawyer.
 

TomEason

LoanSafe Guide
kiera

Thanks for your posts.

As you know, your former 2nd is now a virtually worthless SOJL.

Personally, I'd never consider settling with a SOJL. While it's possible that a recourse SOJL could sue you, the good news is that heretofore lawsuits by recourse SOJLs have been rare in any state.
 

kiera

LoanSafe Member
Tom, I never had a second mortgage, per my previous post.

Jeffrey, we were never summoned to court. (Although I'm not sure your post was directed at me.) Immediately after our foreclosure, we started getting these letters from Strategic, a collection agency, for our deficiency. I have never responded to them or answered their phone calls.
 

pellenga

LoanSafe Member
I'm from Michigan, which is also a recourse state and has the "Full Bid Credit Rule". Our home sold for full bid in November which was $135K, the principal balance on the home was $117K. We talked to a lawyer and she said we didn't have anything to worry about since the home received full bid at the Sheriff sale.

A week ago, we also get a letter from Strategic Recovery Group stating they are collecting $53K on behalf of FM. The letter states,

"The proceeds from the foreclosure sale that occurred did not satisfy the entire amount owed and, therefore a deficiency balance remains due. If you notify us in writing within thirty (30) days of your receipt of this notice, we will obtain a verification of the debt or a copy of the judgment against you and mail you a copy of such verification of judgment."

I gave a copy of the letter to my lawyer. She responded back to them requesting detail on the deficiency. She also commented that this is a really odd letter and just doesn't add up since we have a full credit bid.
 

eddward

LoanSafe Member
Remember that these foreclosures becomes public record, and therefore easy pickings for scammers. My lawyer said that it is not even that hard to fake an authorization letter from fannie mae. There is some funny business going on here, and if there are a few more cases, maybe the thread can be moved up to "tell us your strategic recovery story". I've had 2 separate attorneys tell me that the bank (in this case fannie mae) cannot chase money after the sheriffs sale UNLESS they initiate a separate action to do so. If this happens you will get a whole new round of legal notifications etc. In Pa., they only have 6 months to do so.
 

eddward

LoanSafe Member
I am not a lawyer, but from the experience and my lawyers advice, you fall behind for whatever reason, the lender has the right to his money or the property. This is done through a foreclosure and all the legal paperwork and official notifications. The end result is the sheriffs sale or auction where people can bid on the property as well as the bank (if bids do not reach the amount owed in the DEFAULT judgement the bank will almost always bid higher so as to at lease recover the property). (The DEFAULT judgement issued by the court prior to the sale only establishes the amount you officially owe them, usually through the date of the sheriffs sale) (This does not establish the value of the home whether more or less than owed)

If the property is in reality worth less than the amount established in the default judgment and sale, the lender can then come after you (in recourse states) for whatever they feel is the remainder. I was told by 3 lawyers that this almost never happens. If it does, this would be a separate action, requiring re-filing with the court, official notifications, and must be done within a legally prescribed time period (in Pa., it's 6 months), and you would have the opportunity to examine and contest any amounts the lender claims are due. This action is seeking the court to give them a DEFFICIENCY JUDGEMENT. In my case, and in some of the others here, it appears that Fannie Mae has worked out a deal to collect the DEFFICIENCY amount based on the DEFAULT amount, which is totally in error, and I'm wondering/suggesting possibly a well thought out scam.

Blessings
 
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pellenga

LoanSafe Member
Update - So after my lawyer responded to Strategic Recovery Group asking for a break down of charges they finally send another letter. This one completely ignores my lawyers request and offers to settle the $52K debt for $18K. Unbelievable!
 

Jeffrey L. Shurtliff

LoanSafe Member
Update - So after my lawyer responded to Strategic Recovery Group asking for a break down of charges they finally send another letter. This one completely ignores my lawyers request and offers to settle the $52K debt for $18K. Unbelievable!
I currently consult with people to empower them to defend themselves against this problem. This is a junk debt buyer and they take people to court and ask the court for a judgment and usually get it as most cannot afford a lawyer. Currently I have one client that I have supported with legal documents using a rule of the court where the junk debt collector fails to state a claim for relief to be granted. The suit was filed against them over a year ago and I have shown them with supporting court documents how to stop them. Now the court wants to dismiss if the plaintiff does not request a hearing. The Plaintiff was granted a hearing and I have prepared a submit for decision for the Defendant's Motion to Dismiss. Technically a Motion was put before the court by the defendant and must be ruled on. I am supplying and training the defendant to go to the hearing and present evidence that the Plaintiff has no license to collect. This is a bombshell and will blow these crooks along with their crooked lawyers out of the water. I call myself Pro Docs.
 
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