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ARE FORGED DOCUMENTS A PROBLEM WITH THE BANKS, TOO?
by Sharon Rondeau
(Jul. 3, 2011) — Editor’s Note: The following letter was written by a Tennessee resident who is questioning the terms of a home loan whose payments were boosted to $4,000/month, rendering the homeowner unable to pay. She has reported that the mortgage company which has advanced foreclosure proceedings against her does not have a verifiable address and is not the originator of the loan. The Post & Email asked the resident if she requested a copy of the promissory note she signed when she took out the mortgage, and her response is as follows:
They may have sent the deed of trust, which is like the promissory note, but there is nothing there in the packet I have asked for thus far. See the letter I sent initially to the attorney attached (below). Then, of course, I started banging on Congressman Phil Roe’s door and they delve in to the person to who makes congressional inquiries, and they the company knee-jerk a letter back to his office, ccd to me?…and his office sends that packet to me too…we are going through that packet soon and it had better be identical to what they sent me…it is all very strange.
Take, for instance, the detailed payment history from the loan’s inception which I have requested, the payment history displaying credits and application to principal and interest throughout the life of the loan, the transfer paperwork from one servicing company to the next, etc…ad nauseum….so again, how can one prove that I am not a simple ten dollars away from payoff?
Why give me a song and dance that “we are not the originators of the loan?” And why did the lending company close their doors within a short period of time, after I closed on this deal, and even more importantly, should one company not research all paperwork if one company buys someone’s loan?
There is a lady in CT I have been talking with for quite some time…same types of problems with MGC Mortgage…checks not being cashed, not posting, no one answers phone, etc. She and her husband drove to TX to check out the address of the place listed on the envelope, where payments were going…..empty parking lot. I have not paid since that time, as I too had similar problems….plus on mine (mine shows predatory loan which has much worse terms) as my payment was boosted to over 4K per month. She in CT is current on her mortgage and was getting the runaround like me, too. I am not current, as who is going to pay an empty parking lot and over 4K a month in Sevier County, TN? I then had an attorney file suit here a year or two ago which was ultimately dismissed in federal court with prejudice due to a timing issue. Though that complaint is dead, which was an unconscionable adhesive contract, another complaint I may file alleging fraud or anything else I can think of, is not. I may lose, but I will hold my ground in what I wish to see, even if I have to file my own suit and then obtain an attorney.
Now according to this paperwork, the original loan was 243K. The lawyer says I have paid almost 200K in 7.5 years, but based upon what they have sent, only 1,500 dollars has been touched in principal, and totally with the balloon, etc., it will be nearly 800K+ I have paid at the end, and I am telling you the property is not worth over 150K, if that.
They give the excuse that they were not the originators of the loan, so they cannot send the pay history which has been paid for the first several years, though my tax returns show it, as interest is tax deductible.
Am I not entitled to see all paperwork? Are they not governed by federal law? I believe they are.
May 12, 2011
Shapiro and Kirsh, LLP
Attn: Fair Debt Attorney
555 Perkins Road Extended
Memphis, TN, 38117
Re: 3753 Thomas Cross Road, Sevierville, TN, 37876
Dovenmuehle Mortgage, Inc, #XXXXXX6779
S&K # 11-015449
To Whom It May Concern,
I am writing this letter of correspondence to inform you that I still have not received documentation requested relating to this matter, which was discussed weeks ago by telephone conversation, despite written requests made upon on my behalf sent to your office by certified mail, by local attorney Mr. Rolfe Straussfogel.
I am in receipt of your letter dated April 14, 2011, sent by your office signifying amounts to bring the loan current and an itemization of fees involved with your office. This is not what I am or was looking for. I will address this again, further on in this letter.
Again, what I have received thus far from your office is not what was initially requested per the telephone conversation between Ms. Megan Hanna in your office firm and Mr. Shiva Davey, whom had my written consent to speak with you about this matter several weeks ago, before you all even received correspondence from my attorney. The consent for that telephone conversation was hand written and faxed to your office at the instruction of Ms. Hanna. A copy of that which was faxed to your firm signifying my permissive consent for you all to speak with this gentleman, Mr. Davey, is enclosed.
I am again making this request to you in writing, which further expands what Mr. Straussfogel conveyed in his letter to you dated Feb 24, 2011 signifying that a number of things appear to be very out of order in relation to this loan.
I have repeatedly asked for this information from various mortgage-servicing entities to no avail.
I now feel, after further consideration of this matter, since I am the note holder on the property, it would be prudent and sensible for me to ask for this information of you myself, which I am aware that I am legally entitled to see, before determining the next course of action which I will take on this matter. I can request information myself without incurring the additional expense of an attorney, which seems most logical.
Please be advised, that this is not a refusal to pay, but notice sent pursuant to the Fair Debt Collection Practice Act, 15 USC 1692g Sec 809(B) that verification and itemized validation of this debt is vehemently requested for many reasons. This is not simply a request for verification or proof of my mailing address, but the detailed validation itself to the above named Title and Section. I respectfully request that your office provide me with information proving the debt as was discussed early on in telephone conversations with your firm, notably a lengthy conversation between Ms. Hanna and Mr. Davey, of which there are very detailed notes.
Please provide me with the following in writing:
1) What the money you say I owe is for, as I have paid in excess of $165,000.00 of which I have detailed records of all transactions and I wish to know how this money was applied to the loan, as I was told this money went only to interest, which would mean there is no equity build up on the property over the course of several years. This results in a most unfair prohibitive matter, preventing me from seeking any sort of refinance. The interest of this loan substantially and grossly exceeds the principal.
2) Explain and show me in writing how you calculated what you say I owe and what records were used to substantiate these amounts?
3) Provide me with copies of any original documents that show I agreed to pay what you say I owe with blue ink, wet signature.
4) Provide me with original copies of a detailed payment history and transactions of all payments received to date since the loans original inception, including monies paid at closing and to whom at closing, and a history of how all payments thus far have been applied with all mortgage services involved in this loan to date. Please show me too, where the payments have been applied and to whom, and when.
The numeric figures provided by your office simply do not make sense.
5) Please provide me a copy of the original title assignment recording associated with this mortgage.
6) Identify the original creditor in writing.
7) Identify and send me in writing any subsequent mortgage servicing companies involved and the transfer documentation from one servicing entity to another as well as an itemization of their individual collections and application/ credits to this account.
8) Please disclose information and copies on title assignments to third parties in relation to this account.
9) Please provide copies of correspondence by the mortgage servicing company, which sent this debt to you and retained you to collect, and proof that they rightfully have this loan for you to collect it from me. Be advised, I have never heard of Dovenmuehle Mortgage, Inc ever, nor have I talked with them nor have I ever received any sort of correspondence or letter from them or even a telephone call message from them. Further, I have never received any notice, statements, or request for payments of this account with Dovenmuehle Mortgage, Inc. I find this highly odd and irregular, as do many others familiar with this loan. The first time I ever heard of Dovenmuehle Mortgage, Inc. was from your office.
10) Your documentation sent to Mr. Straussfogel and to me states an owed total in excess of 311K. I am requesting to know how much of these monies are principal and how much is interest? Please provide that written itemization and answer.
11) How exactly did you determine the interest owed on the loan and what calculation and paperwork did you use to determine this? Please provide me with copies of this itemization and breakdown and the reflective documents supporting that figure.
12) How exactly did you determine the late fees owed and what calculation and paperwork did you use to determine this figure? Please provide me with copies of this documentation supporting that determination and the paperwork involved calculating such figures.
13) Please provide copies of the amortization schedule with the original loan paperwork.
Additionally, in your most recent letter sent on April 14, 2011, you state that an amount is due of $88,733.45 to halt the foreclosure process. How exactly did you calculate that figure and based upon what factors? Please provide me with the calculations used and the copies of the information used to determine this. Again, the numbers do not make sense.
Further, this same letter from your firm states that this amount is good through April 14, 2011. I do not understand. How can one write a letter on April 14, 2011 to be mailed to me or to counsel and state an amount they have determined, based upon variables unknown to me, and state that this amount is good through, only the day that the letter was initially written?
Please see enclosed copy of what I am referencing. Please provide me with a written explanation.
Again, kindly send me the information I am requesting. After I receive such information, during this validation period, I will need ample and reasonable time to investigate and research it, and compare it to my detailed records/ and documentation.
Should this information be withheld or if there is failure to respond to this request, or if action is taken that could be deemed detrimental to me or my family during this time, I will be forced to consult again with my legal counsel as well as another specialized attorney whom Mr. Rolfe Straussfogel has recently referred me to, as he signified to you in his letter, for handling and resolution of this particular matter. I very well may utilize this lawyer due to his unique specialization in all realms of mortgages and real estate law, including foreclosure defense. He may make a formal entry on this matter should that be needed.
It does not take rocket science to see that there is much amiss. This has been a true and total nightmare for my family, over a long period of time, due to poor or nil communications, brutal abusive and unfair practices, etc., which have become most commonplace in the housing meltdown and especially true in this situation. However I do have the resolve to see this matter to its final resolution.
As Mr. Straussfogel also mentioned in his letter to you in February, the attorney associated with this matter locally, Mr. Jerry Kerley, the attorney handling this particular loans closing, has been indicted on mortgage fraud in Sevier County, with matters pending before the court. True too, the mortgage brokers, who supposedly found, secured, and negotiated this particular loan, have also packed and left town, shortly after this matter went to closing. There are witnesses to substantiate these facts.
There is just too much wrong and now this has been sent to your firm, by a company that I do not even know, have never heard of and have never communicated or spoken with telephonically, by mail, or electronically? This is too strange coupled with all the other oddities I have experienced with this loan.
Disclosure of all listed and requested above is most pertinent.
This information obtained will be used for purposes stated above. Again, I know I am legally entitled to this information.
Please reply to this request at your earliest and best opportunity.
I appreciate your time and attention.
Cc: Mr. Robert Cooper, Tennessee Attorney General and Reporter.
PO Box 20207, Nashville, Tennessee, 37202-0207
Housing and Urban Development (HUD), Office of Inspector General, Hotline, GFI
451 7th Street, SW
Washington, DC, 20410
Editor’s Note: According to a recent report by CBS News, some banks attempting to foreclose on homeowners for non-payment of their mortgages do not actually own the mortgage. CBS reported in April that some banks possess forged documents or no documentation at all on homes on which they are foreclosing. One bank stated that it had lost a customer’s paperwork and then “found” it a year later.
A report from a Massachusetts newspaper states that the rate of foreclosures is slowing because “lenders took longer in dealing with distressed properties.” Two years ago, according to a website specializing in foreclosure information, the national rate had spiked by more than 50% during the previous year.
Other problems contributing to the mortgage crisis have been “robo-signing” and banks foreclosing on the wrong properties.
Several months ago, CNN reported that the national foreclosure rate had decreased, but that certain factors appeared to be slowing the rate at which banks were moving against delinquent homeowners. A May 12, 2011 CNBC report appears to support that claim.
Update, July 6, 2011: The Tennessee resident who wrote the letter above has informed The Post & Email that a federally-indicted attorney suspected of mortgage fraud was the bank’s attorney at the closing on her mortgage approximately eight years ago. Atty. Jerry Kerley and a suspected accomplice, Jeffrey Whaley, are accused of carrying out a mortgage fraud scheme “involving a ‘straw borrower'” totaling $6,000,000.