Strange but true…bank AND attorney fraud.   No surprise either that AHMSI is named!

It’s bizarre but, it turns out, Wall Street cut corners when it created those mortgage-backed investments that triggered the financial collapse. Now that banks want to evict people, they’re unwinding these exotic investments to find, that often, the legal documents behind the mortgages aren’t there. Caught in a jam of their own making, some companies appear to be resorting to forgery and phony paperwork to throw people – down on their luck – out of their homes.

Names such as:
Akerman Senterfitt & Eidson, P.A. , American Home Mortgage Servicing, Docx, LLC, Florida Default Law Group, Law Offices of David Stern, Law Offices of Marshall Watson, Lender Processing Services, Inc., Shapiro & Fishman Law Firm

Action Date: April 4, 2011
Location: West Palm Beach, FL

On April 3, 2011, CBS’ 60 MINUTES aired a segment showing massive fraud by banks and mortgage-backed trusts in foreclosures. The segment focused on one particular document mill, Docx, LLC, owned by Lender Processing Services, Inc., a company that works for over 51 banks. One former employee confessed to forging 4,000 documents each day.

What mortgage servicing companies used the Docx forged documents in hundreds of thousands of cases?

The major mortgage servicer involved was American Home Mortgage Servicing, Inc. in Coppell, TX. Other mortgage servicers that used forged documents from LPS include Saxon Mortgage Services in Fort Worth, TX and Select Portfolio Servicing in Salt Lake city, Utah.

What bank/trustees most often used the Docx forged documents in foreclosures?

Deutsche Bank National Trust Company, U.S. Bank, Wells Fargo, Citibank and Bank of America were the top five users of these forged documents, but other banks were also involved.

American Home Mortgage Servicing, Inc. knew about the forgeries, but never disclosed to courts or homeowners their widespread use of forged documents.

In thousands of cases across the country, Deutsche Bank National Trust Company continues to push these documents upon the courts as proof that they own mortgages and have the right to foreclose, despite overwhelming evidence and even admissions of forgeries.

These servicing companies and bank need to begin the process of admissions, disclosures and reparations.

What law firms pushed and continue to push these fraudulent documents upon Courts and homeowners?

In Florida, the firms that used these documents and continue to use these documents are: Law Offices of David Stern; Florida Default Law Group; Law Offices of Marshall Watson; Shapiro & Fishman Law Firm and Akerman, Senterfitt & Eidson, P.A. Lawyers who used and continue to use these Docx forgeries in court should, at a minimum, lose the right to practice law.

The government focus must be on protecting the rights of homeowners and shareholders and the court system and holding the banks and securities companies accountable.

60 Minutes – Lender Fraud

The following is the list of mortgage servicers (lenders) that have been initially targeted by Texas Attorney General Greg Abbot’s office for possible foreclosure fraud.

If your loan is in a foreclosure status or you have been wrongfully foreclosed within the last four years please seek assistance immediately.

- The Bank Slayer

AHMSI is near the top of our personal list of mortgage servicers (the “mortgage” company that collects the payment) that routinely “loses” payments, “misapplies” property tax payments, and forecloses after collecting multiple payments under what homeowners thought was a forbearance or loan modification.

Finally, Texas Attorney General Greg Abbott’s office has caught on to these thieves.

Trying to resolve a problem mortgage?  Is the bank breathing down your nneck or threatening foreclosure?

Read our testimonials.  Ask for references.  Then act!!!

Crooks like AHMSI roll over when hammered by negotiators and/or attorneys who know how to deal with predatory servicers.

If your mortgage company is AHMSI call us ASAP and find out what kind kind of success we’ve had with these yahoos.

– The Bank Slayer

Texas AG Charges Servicer With Violating Debt Collection Laws

Tuesday, August 31, 2010

Texas Attorney General Greg Abbott has charged Coppell, TX-based American Home Mortgage Servicing Inc., the nation’s largest independent subprime servicer, with allegedly “using illegal debt collection tactics and improperly misleading struggling homeowners.”

According to a statement released by his office, AHMS collections agents used “aggressive and unlawful tactics to collect payments from Texas homeowners who had difficulty meeting their payment obligations.” State investigators claim the defendant also failed to credit homeowners who properly submitted their payments on time.

The enforcement action charges AHMS with multiple violations of the Texas Debt Collection Act and the Texas Deceptive Trade Practices Act. The state is also seeking civil penalties of up to $20,000 per violation of the DTP.

Philippa Brown, a spokesperson for American Home Mortgage, said the company does not comment on pending litigation.

AHMSI is owned by the New York-based private equity firm WL Ross & Co., which did not return a phone call for comment by deadline today.

Continuing the “Toxic Title” issue

The second nasty title cloud appears when homeowners have modified their loan or taken the dreaded “HomeSaver Advance” which was rampant the last few years.

Let’s examine the result of a typical HomeSaver Advanced deal.  Imagine falling several payments behind and now you owe the bank $8,000 in past due payments.  We know most of these payments are mainly interest with a tad of principle tossed in (in the early stages of the loan).  So now you have roughly $7,999 in past due interest.  The bank rolls out the HomeSaver Advance.  You sign on the dotted line, mail it back and “POOF” you are now current again.   What happened?  You just agreed to take the past due payments and convert it all to principle and add it to your loan balance.  It will now show up a second or third lien on your home which will need to be paid off when selling or refinancing the home.  This can quickly erode equity.

What about loan mod?  Ok, let’s see…you borrower the money for the purchase from AmeriQuest, made payments to Countrywide, refinanced with Chase and now make payments to AHMSI.   You fall behind and want a loan modification.  AHMSI rolls out the red carpet for a HAMP loan modification.  You sign away and make your trial payments.  You decide you can’t make the payments and you need to sell.  You get an offer and are ready to go to closing…but wait the Deed of Trust recorded on your home has one of the three previous banks and not AHMSI.   Tack on a new “loan modification agreement” signed by you and recorded by AHMSI saying you agree you owe a huge amount and that it is all owed to AHMSI.

Can you see where this is going?  Did AHMSI deliver to you a copy of the assignment of your Note from your previous lender?  Did Chase release the refinance Note?  These situations can be deal killers for selling the home.

-       The Bank Slayer