Bank Fraud Investigations
Like I have stated many times over. There are many layers to the banking crunch, one of them being MERS -This was all over the news earlier this year mostly in the New York Times.
Democrat Eric Schneiderman sued Bank of America, J.P. Morgan Chase, Wells Fargo, over their use of the Mortgage Electronic Registration Systems, or MERS, claiming the banks submitted court documents containing false and misleading information that appeared to provide the authority for foreclosures when there was none.
Right now if you suspect that your loan was in some way fraudulent, and I am not talking Til or REspa Violations, you can request it to be transferred to the Bank’s internal Fraud investigation departments.
It is a little known fact that most banks have been beefing up their legal and expanding their Fraud Investigation departments to do investigations and audits of pump and dump communities, construction loan value boosting (ie refinancing again and again because the project was not completed), failure to disclose material facts in attempt to defraud, broker trend loans with higher APR’s for higher commissions on stated loans, (Even through the banks themselves approached brokers to sell these loans). These are referred to in legal terms as unconscionable acts. Hard to prove, hard to disprove. But bottom line, if you are fighting for your home and the banks know it, they have to follow more stringent protocol in foreclosing on your home these days.
You can use the credit dispute form, for Fair debt collection practice on the mortgage by challenging and requesting complete printouts of interest, charges, fees, ect, Then outline the exact unconscionable act and request your file be moved to the Fraud Investigation Department for review. You are going for reasonable doubt here guys.
It’s crude, but it works as a stalling technique if you cannot afford a lawyer or you need time to save the funds for a lawyer. Bottom line is a settlement or restructure as the goal of this, especially if you are trying to cram down the value on an investment or 2nd home. If you were in a pump and dump community where there was an actual FBI investigation, the banks need to drop the home to fair market value and restructure.
Right now this can best be done under a Chapter 11 or 13 Bankruptcy restructure effectively. But there is rumor that some of the larger banks are rolling our internal cram downs on loans for Owner Occupants in these situations on a case by case basis. It is still in the works, so don’t expect soon. But this is what us advocates are fighting for.