US Bank Getting Less Cooperative on Short Sales

COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary

EDITOR’S NOTE: SMALL WONDER. US Bank doesn’t own the obligation, note or mortgage. How could they approve a short sale without it being a scam? Lawyers Beware! If you have short-sales or modifications that your clients think are done, you better think again. You might be a moving target for malpractice claims or discipline. Any satisfaction issued by a disinterested party out of the chain of title is a wild deed.

You should take corrective action by getting acknowledgments from clients that they were told and proceeded anyway or file quiet title actions using the documents that were used. If someone comes in to challenge then you have slander of title and fraud to claim.

In the meantime, without going into names, here is a sample letter that is going out from one office, much like others I have seen:

“We will no longer be able to negotiate short sales for conventional mortgages or 2nd mortgages with US Bank as the lender.  The only US Bank serviced mortgages we will work with must be FHA or MHFA mortgages.  The way to find out if it is conventional, FHA or MHFA is that it is stated on the mortgage signed by the seller, or the seller can call US Bank and find out.

US Bank has become continually less cooperative in the short sale processes.  The time frame has moved upwards of six months for potential approval.  They do not have the staff to deal with these.  They are uncooperative at best and simply unreasonable and unknowledgeable at the worst.  We have developed sources in management for escalation.  Yet, when we use those sources, the files still go ignored in most cases.

In the event that we are able to get a short sale through the US Bank system, the approvals commonly require a large cash contribution or promissory note from the seller.  When that is on the first mortgage, the seller then is better off, in most cases, to allow the property to go through foreclosure and therefore chooses to not close.

Again, if the seller’s mortgage with US Bank is FHA or MHFA, we can work with the file due to the US Bank contacts we have that work with those specific investor mortgages.  If the seller’s US Bank first mortgage is conventional, or any US Bank 2nd mortgages, we must refuse the file.

Please make sure you do not have a seller call for consultation in those cases so they will not be disappointed we cannot take the appointment.   As the Realtor, you can either take the listing and work with US Bank yourself if an offer is received.  Or, as many agents have decided, you may want to not take the listing at all based on the small percentage chance it will ever close.”

21 Responses

  1. Jan van Eck,

    Thank you for your post. Servicers continue to service for debt buyers – and not the trust – as stated in court.

    In some cases, such as Ocwen (and you are 100% correct – they are a debt buyer) — they are the servicer for THEMSELVES — the current owner of the now unsecured default debt.

    And, yet the government agencies may falsely state that they have “No Jurisdiction” to investigate the fraud and violation of federal law. FTC — may say that they need more complaints to investigate — but by the time they finally get around to it — your home as been fraudulently sold in foreclosure.

    So — if one cannot get discovery in court — and one cannot get help from government agencies — where does one go????

    Thanks again— great post. Time to rally.

  2. US Bank is notorious for representing to the Court that it (1) possesses the original Note when it does not (note held by servicer); (2) has an Assignment from the previous Holder when the assignment is manufactured by the hand of the servicer “Scott Anderson” of Ocwen; except that it is not even Anderson’s signature; (3) proffers assignments notarized by Priscilla Langlois and others when that is demonstrably not her signature; claims that the Note is in the trust when the Assignment is dated five months after the trust closed; claims by affidavit that it has “personal knowledge” of event that took place between others, which is utterly impossible.

    Watch out for US Bank. Nothing the proffer in Court is remotely true. In reality, the suits brought in the name of US Bank are just cover for bottom-feeder debt buyers, including Ocwen (which is a debt buyer but does not admit to it to the Court). This outfit has zero compunction about defrauding the Court.

  3. By the way – Wilbur Ross is the same person who purchased “distressed” coal mines — and did not fix safety flaws. Some time ago, coal miners were killed likely because cost-cutting was placed above safety.

  4. neidermeyer and Ian

    Option one is owned by Wilbur Ross – distressed debt buyer. As a condition of the sale, H&R Block changed Option One’s name to Sand Canyon. Assume that the name change was to keep liability off Wilbur for a certain amount of time. When a corporation dissolves, they are allowed to keep the corporation listed as “active” on state corporate register for three years. But, in these three years the entity cannot conduct business – they can only “wind down” and defend themselves against law suits. It does not change the fact that Wilbur Ross CURRENTLY owns the Option One mortgage servicing business – and likely the whole mortgage loan rights — since non-performing loans are purchased by servicer when servicing advancing ceases.

    Wilbur Ross also purchased AHMSI — and the two entities (Option One and AHMSI) are likely organized together by Wilbur Ross. Some reports state Option One purchased AHMSI – but this is not accurate. Wilbur purchased both Option One and AHMSI. So, the creditor – on whose balance sheet the non-performing loan lies is Wilbur Ross & Co — and not Option One not AHMSI and not ANY Trust that Option One and AHMSI claims to be servicer for.

    Just heard Wilbur Ross in an interview the other day on CNBC — Anchor asked him about “Robo-signing”. Wilbur told them — that his servicers did not do any Robo-signing. Maybe not — BUT his servicers just outright LIE in court as to the current creditor and Trust/Trustee that the servicer claims to servicing for. Perjury and Fraud on the Court.

  5. 10 simple ways to fix all of these problems:

    1. Death to Wall Street
    2. Death to Wall Street
    3. Death to Wall Street
    4. Death to Wall Street
    5. Death to Wall Street
    6. Death to Wall Street
    7. Death to Wall Street
    8. Death to Wall Street
    9. Death to Wall Street
    10. Death to Wall Street

  6. Niedermier-Option One has morphed into Sand Canyon corporation, ostensibly to handle the lawsuits against Option One/H&R Block Mortgage,although I read a post somewhere that they (Sand Canyon) are purporting to be a lender/creditor. I don’t know if this helps, but at least you can be aware that things are not what they appear to be. Also, AHMS may have recently become defunct. I don’t even remember how I came by this information.

  7. ANONYMOUS .. ????

    Do we have any info on OptionOne / Wells / AHMSI selling into new non-performing entities ??

  8. THE A MAN

    Will sign when abstract states loan modifications must identify the current creditor on whose balance sheet the loan lies. NEED THAT ADDED

  9. PJ,

    Yep.

    THE A MAN

    Need those protests. Back to the sixties — when protests mattered.

  10. 20 in Chase Anti Foreclosure protesters arrested in Los angeles

    http://www.huffingtonpost.com/2010/12/16/chase-foreclosure-protest_n_797974.html

  11. Tell your attorney General Petition

    Please sign the petition

    http://www.tfaforms.com/186974

  12. 2 Anaymous.. so Moynihan the barker has become the sleeping dog at the feet of Blackrock, Pimco etal. hummm. The effects of QE2 on the taxpayers back!

  13. BRIAN DAVIES

    Great article. Familiar with Adam Levitan. One thing Mr. Levitan does not address is that servicers purchase non-performing loans from securitized trusts. And, what happens then? They structure them in separate trusts for non-performing loans. Of course, these separate trusts are not “securities” trusts because no current income is passed through. The non-performing loan remains on the servicer’s parent corporation balance sheet — with collection rights passed on to third entities.

    So, in many cases, the servicer is servicing for themselves — and for distressed debt investors— such as Blackrock — who invest in non-performing/scratch and dent/delinquent mortgage loans. And, by this process the mortgage loans are converted to default debt – UNSECURED — which is why they have to falsely name the trustee for some trust as the plaintiff in foreclosure cases. Naming trustee gives them clout – and covers up..

    It is a neat little process – and has been going on for a long time.

  14. PLEASE ADD ME TO YOUR EMAIL LIST.

  15. THE A MAN

    Insane — YES. And, hear today that BofA is negotiating for settlement with Blackrock (Distressed debt buyer) regarding investor fraud complaints and “PUTBACKS.” Blackrock has complained about the fraud in the mortgages for the “distressed debt” that they purchased. And, BofA will settle with them?? Of course!! They had a proprietary relationship with them — and, they own a good portion of them!. Cozy..

    They are negotiating with distressed debt investors — for a SETTLEMENT — which, by the way, means no admission of guilt of the fraud. And, — they are resuming foreclosures on the mortgage loans THEY are negotiating settlement for putbacks — aahhh — DUE TO FRAUD???

    WHAT IN BLAZES IS GOING ON HERE ??? Where are the AGs??? And we are paying them????

    Oh— and also heard that Wall Street bonuses are being paid in full — this, in an apparent attempt to restore Wall Street to what it was before. BEFORE WHAT??? The FRAUD???? And, commentator says — this is all occurring while the rest of America is just rying to survive!!!!

    Want to scream!!!!!!!!!!!!!!!!!!!!!!!!!1

  16. A MAN: because they Gvt. allows them to, I’m so irate to the fact the the pretenders are totally shameless, and the gvt it’s just siting out there looking at the whole thing take place and all they do is shrug their shoulders and say how “bad and illegal” is what they’re doing, and yet on top of not doing anything they hand over the keys AGAIN to the door that should’ve been closed to those thieves LONG AGO!!!!!. all the gvt. does it’s keep on feeding us loads of BS!!

  17. What is going on with the Attorney Generals. How come BofA has the guts to resume foreclosures in California?

    Insane?

  18. Crooked mortgage servicers (and they are all crooked) should be put out of business for fraud, extortion, misrepresentation, forged documents, creating fraudulent documents, notary fraud, and, fraud on the court and probably things I can’t even think of. Actually, they are all a division of the mega banks, and they work against the investors as well. http://www.challengingforeclosure.com Sirak@challengingforeclosure.com

  19. […] more from the original source: US Bank Getting Less Cooperative on Short Sales   Tags: foreclosure, gtc | honor, securities fraud Posted in: […]

  20. link for original article..?

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