Fraud and foreclosure
Posted on September 15, 2008
Filed Under Foreclosures | 1 Comment
When someone purchases a home and gets a home loan, they may have believed that they were getting a good loan with reasonable terms.Unfortunately, many became victims of predatory mortgage practices and things got very bad, very fast.Companies that service mortgages get hired by investment banks to gather payments keep track of fees and proceed with foreclosure if the need arises.However, the main job of the mortgage company is to get as much profit out of the loan as possible.This has lead to corruption and fraud.
There are some instances where a crooked mortgage servicing company will add on unnecessary fee, put forced insurance on the home before the homeowner misses a payment and lose payments.If a homeowner does get behind on their mortgage, the mortgage company will tack on the fees and make changes to the mortgage agreement that do not make sense.If the homeowner has financial problems, the acceleration of the junk fees will ensure that the homeowner will have to pay thousands of dollars more than what is typical in order to stop foreclosure.
Junk fees before and during foreclosure is an indication of mortgage fraud.An owner of a home owner may make their payments on time but it will be marked down as late so interest and late fees will be added on.If this continues, the owner of the home will seem to be behind even if all of the payments were made on the due date or before the due date.
Unfortunately, you really get nothing if you try and argue with the mortgage company.The mortgage company will not want to reveal that the unethical behavior that you are dealing with is just the way they do business.The fraudulent mortgage companies do not want to go to court and stand accused of stealing people’s homes to make a profit.The unethical company will deny what they have done, stonewall or threaten the homeowner. They will do this because they do not want to have to answer for the fraudulent charges.
The homeowner may not get any significant help from the court system because judges typically favor the mortgage company because they have been led to believe that the owner of the home is not current with their payments.The truly scandalous part of all of this is that the mortgage company will add thousands of dollars in fees but will not act in any way until the owner of the home has missed a payment.If a homeowner does get behind on their house payments for a number of months the thousands of dollars in junk fees and interest quickly add up and makes it extremely expensive to get back on track or even to qualify for foreclosure assistance.
An additional unfair thing about this process is that the mortgage company has many more financial resources than the foreclosure victim.The mortgage company can also hire savvy lawyers that will do whatever they can to defend the claims of junk fees and fraud.
The best thing for a homeowner to do to defend themselves against corrupt mortgage companies is to make sure all fees are explicitly explained in order to verify what the fees really are, what these fees are for, and most of all, are they legal.
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