Don’t get Grinched by opportunistic Servicers

 The servicer convinced the couple that a  “deed in lieu of foreclosure” would provide a fast solution. This option allowed the homeowners to give the servicer a deed to the home, saving them the expense and time of going through the foreclosure process.   In this case, the borrowers were asked to release any claim for a deficiency in return for $3,000 through a “cash for keys” offer to defray the cost of moving.

The couple proceeded to move out by the deadline agreed to. They left the property clean and in good repair, so all that was left to do was to receive the payment of $3,000. To cover the cost of the move, the couple spent their Christmas money they had allocated for gifts, thinking they would receive the funds by Christmas promised from their mortgage servicer. Days turned into weeks, and still no check from the servicer.

The husband called the servicer daily and the servicer promised that the check  was being processed.   Christmas has now come and gone, and the family missed out on any gift giving or the ability to celebrate the holiday with family. Even though they have legal recourse to recover the $3,000, no amount of money can replace the Christmas that was sabotaged by the servicer’s Grinch-like behavior.

Just like verbal HAMP modifications and other promises servicers make to homeowners, you can’t rely on a word they say and many servicers prevent homeowners from recording the call (threatening wiretap charges if you record the call- although they can announce they will record your conversation: see your state’s recording laws).  Before you move out, accept a cash-for-keys arrangement or negotiate any other arrangement- GET EVERYTHING IN WRITING.  Remember:  Servicers don’t want to modify a loan, they don’t want the home, they want the foreclosure and to deplete the homeowner of all cash resources so they don’t have the funds to fight back.


5 Responses

  1. Reblogged this on California freelance paralegal and commented:
    If you are located in California or another state that requires the consent of all parties to the telephone conversation I suggest telling the servicer that you will not discuss anything over the phone unless they explicitly agree that you will be recording the conversation. If they do not agree hang up and send them a letter by certified mail, return receipt requested putting them on notice that in the future you will not accept any calls from them unless they agree that you have the right to record the call.


  2. Ian. I know you have been pounding for a long time. And, it is thanks to you, and Neil, and all others, who keep pounding, that we stay at all alive. Even if we lose, we still want the truth. Nothing worse than losing with the truth untold. I won’t give up. I only want the truth. Willing to lose all for the truth for all. Rule of law is gone. But, one has to ask why. Why is the rule of law gone? What happened that made it that way? I know of many on the streets. I really hoped that Trump would undo what Obama had done. That did not happen. Always, in the past, the truth was eventually told. Let’s hope it does not take decades. Will work best I can to make sure it is told. At the very least I want dignity restored. The truth. Dignity. .


  3. ANON- nice to hear you still pounding the truth. I gave up on my rental. Fraudulent from
    The get go. Had an atty (local) who understood nothing about securitized loans. I was embarrassed for him. He stalled the serviced for 6-8 months.
    I have 1 son in a private college, 2 other sons in the best boarding schools in the US. Great academic and athletic scholarships/financial aid ( no loans) but we still have to pay. Can’t afford a knowledgeable atty. would like to reverse the foreclosure. All courthouse docs fraudulent. And I’ve had 10 years to document it all. -sigh- still have my house, but the whole thing sucks. The rule of law is meaningless lately. Doesn’t bode well for the US as a nation.


  4. Modifications and promises with WHO? Courts tell you servicer is a just a servicer. Trustee is just a trustee. THEN WITH WHO?? Servicer agreed to payment to this couple, but WHO authorized and rescinded it? Can someone here explain Massive Sale of MSRs from Ocwen to New Residential (NR) ? 10 billion in Unpaid principal balances transferred. Ocwen remains subservicer – so no REPSA violation if borrowers not informed of the transfer. However, Ocwen can only act on behalf of New Residential. Are payments going to NR? OR NOT? And, then why not? Ocwen’s MSR holdings drastically gone. .

    Been around with this for a long time. Neil — you have been an advocate for all for a long time. There was no out for these people. Interest rates increased, home values plummeted, and people were left to fight the fraud on their own -on fraudulent loans to begin with. There was no outside help. Only you and a few attorneys across the county. Some pro se astute enough to pursue on own, but still left holding the bag after, sometimes, a decade of standing up to it. How do you fight a decade and still lose? Story after story, and little discussed by media – despite the large scale. Settlements were executed, and broken. Nothing for the people. And, those who should care – simply did not and don’t care today. They would rather the silence. Can’t fix a system if public/Congress/media does not know what really happened. – or knows and silences. Will never fix.

    Happy New Year to all — Hope a better one. Just want the truth. I want the truth known to all. Very hard. But, with Neil’s help – we will get there. His mission.


  5. Reblogged this on Deadly Clear and commented:
    Here is a map where the majority of states allow you to record phone calls with only one party (you) knowing that the call is recorded.

    It’s much easier to write your follow-up letter if you have a recorded conversation to work from – and most attorneys advise to write the servicer a follow up letter, especially when a recording might not be admissible in court. Keep all your correspondence, including statements organized. If you are unorganized in everything else in your life, make your mortgage loan your priority in organization. The correspondence you keep, may save your home.


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