Supporting, Informing & Connecting People in Foreclosure

Servicer fraud...is this one typical or extraordinary? It's DEFINITELY fraud!

I own a three-family house in Bronx, NY which is currently in the foreclosure process. I am represented by retained counsel but can use any aid or assistance from specialist sources who are watching here since my able attorney is NOT specially trained in this type of foreclosure defense (few are) but is very capable, amenable and interested.

I believe I was initially a victim of the Escrow Scam (my loan was taken over by servicer Residential Credit Solutions, Inc., hereinafter RCS, when BankUnited FSB, the original lender, went bust in May 2009 (forced into receivership by FDIC, reorganized by investors into "BankUnited" - without the FSB - so they could use the same trademarks etc as the original; after about eight months they upped my FIXED RATE loan $500 per month citing "escrow shortage". I tried for a HAMP modification and was refused after several attempts due to my self-employed status and their "uneasiness about the sustainability" of my business). Since November 1 I refused to pay with the extra money; On July 1, they filed for foreclosure.

The attorney is the infamous Steven J. Baum, PC, of Amherst, NY who is second only to David Stern of Florida for the number of class-action suits and fraud investigations in the annals of dirtbag forclosure mills.

On July 20, they recorded an assignment of mortgage that was purported to have been notarized and signed in Tarrant County, TX (home of RCS). I see three items of interest when reviewing the assignment: 1) It was signed by Jeffrey Gideon, as "Vice President" of MERS, Inc., who also happens to be listed as a Vice President...of RCS; 2) MERS purports to assign the mortgage to RCS which is suing me under its own name; 3) the entity MERS claims to represent as nominee is BankUnited FSB, which is a failed bank (forced into receivership May 21, 2009 by FDIC) which could not have, on June 24, 2010, owned a paper clip let alone a mortgage and/or note.

Does ANYONE here have issue with my argument that a) an assignment from one entity to another where the same person represents both sides (Gideon as VP of both companies but only announced on the record as being a VP of MERS when it's apparent that his SALARY is paid by the assignee not the assignor) at the VERY LEAST needs clear indication that it's not an arms-length transaction; b) very likely no real $$$ changed hands between the two aforementioned parties making it very likely that RCS's claim to plaintiff-hood is fraudulent (PLEASE don't insult my intelligence by telling me that this is an innocent error; by the way, Baum's company stamp is on the recorded copy of the "assignment"); c) BankUnited FSB was very likely paid in full for this mortgage - and thus not eligible to assign a mortgage even if it DID still exist - in the EXTREMELY unlikely event that they still even owned the mortgage when they were dissolved - a year plus four months after I signed the mortgage but more likely about fifteen minutes after the ink on the (likely lost) original note was dry; c) I might be a good candidate for the free-house lottery.

A historical note for you older New Yorkers: the Judge assigned to this case, Justice Geoffrey Wright, is the son of the late, great New York Supreme Court Justice Bruce Wright (not-so-affectionately named "Turn 'Em Loose Bruce" by the prosecutors and cops who didn't like a judge who dealt honestly with questions of bail for poor defendants).

Wish me luck and I'll take any and all advice from anyone. I FEEL that I have the issues in hand but please please feel free to chime in and let me know what/if I'm missing.

Tags: baum, new, york

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Permalink Reply by KT on August 27, 2010 at 11:46am

Excellent post...
This seems to be the story of hundreds of others, mine included, change the names of the banks and fraudulent VP signers and it's a sure fit...
GOOD LUCK with your fight, hope the Hamlet can be of some help!

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Permalink Reply by Jay Gould on August 27, 2010 at 12:38pm

Thought maybe I'd post the "assignment"...in case its description isn't, er, descriptive enough...I have a settlement conference scheduled for Sept. 24; unless something comes back in discovery (fat chance they're answering it but it's been served...) I'm predicting a lawyer and client (NOT me) in a world of hurt, trying to settle but some obstinate fool (maybe not) namely ME insisting that they prove they own something or could EVER own it before I agree to settle anything. The fraud as concerns Mr. Gideon is SO transparent...just do a Google search on his name and his LinkedIn ID shows him as a VP of RCS!!!

Attachments:

Assignment filing.pdf, 142 KB

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Permalink Reply by KT on August 27, 2010 at 1:00pm

Have you search his name with other banks as well, my fraudulent VP signer is found signing for 5 different banks and MERS with different titles fron assistant sec. to VP...all on the same day!
Post your assignment info on the iso page here, get the word out, maybe others will have the same signers and/or more info on them!

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Permalink Reply by AlbanyNYHome on January 27, 2011 at 11:54am

what is the latest on this? MERS assigned my mortgage to RCS too....not the Note...

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Permalink Reply by N. Ana Garner on September 30, 2011 at 12:34pm

Hi, I'm a NM foreclosure defense attorney. I am posting another assignment from this same fraudster. Happily for us, what you have run across, i.e. assignments (which are plaintiff's "proof" of standing) are fraudulently created by the attorneys' offices, and signed and usually notarized by employees of the assignee, in this case, RCS). Just because it is an industry wide practice, doesn't make it legal. (Like, what, if you have enough criminals doing it, it's OK?) The conspiracy and fraud runs deep and wide. Thanks to people like you, we are sharing information that will help others. See my post, which may help you as well. Feel free to use this in your court case to show the judge the fraud. If you are lucky to have a smart courageous judge, you may get the case dismissed with prejudice. Ana Garner, NM. Garnerlaw@yahoo.com

Attachments:

NM Assignment of mtg Gideon.pdf, 37 KB

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Permalink Reply by Phred Maldonaldo on October 1, 2011 at 10:51am

I am not an attorney so the following should not in any way be construed as valid legal advice.

The first question I have is whether MERS is designated on your Deed of Trust as Trustee.

The next question is do the terms of the receivership with the FDIC assign both the beneficiary interest (note) and the security interest (dot) to FDIC?

The third question is did RCS provide a statement of escrow shortages at your request? Likely they added force placed insurance and canceled your HO insurance, without your authorization. You need to have a written explanation of the jump in escrow charges - taxes, property mortgage insurance, property insurance are the primary reasons.

Having the same party sign assignments is only borderline fraud in judges' eyes. The holder in due course of the beneficiary interest of the note also holds the security interest and can substitute the Trustee to themselves at any time. That is the basis of the FDIC question. The question is whether you have a copy of the note with a corresponding endorsement, or recording of assignment.

The one element you did not nail down is where is the note now? The note is the only place you will find the endorsement chain, which I believe is necessary in NY (but not in all state) without relying on the 'endorsement in blank' / physical possession games MERS plays.

You also made no mention of what the name of the MBS trust was for your loan. That is a likely place to find your Note.

So you seem to have a lot of homework to do. Fraud on assignments seems to be a losing proposition for homeowners here in CA, but I believe it is more a legal possibility in NY.

If I were an attorney I would attack the escrow charges first to show no default occurred. If MERS is not on your Deed of Trust that would be an option to explore, but expect $7 -$15k legal fees to pursue it. You may have a broken chain of beneficiary interest, but you have to confirm the succession in interest of the original lender doesn't bite you. And almost every assignment anomaly can be corrected legally and eventually another default declared, which is why the judges turn a blind eye to 'assignment fraud'.

There are very, very few 'free' houses. There is a lot of leverage available, though, depending on what your capabilities and goals are.

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Permalink Reply by Ga girl on October 1, 2011 at 4:40pm

you need to look up the FDIC receviership agreement, find out what it says regarding mortgages placed in MERS. You need to see if there is a POA filed in Texas for gideon to sign as VP of MERS. the Biggest thing you need to do is find the trust your mortgage was placed in and read the Pooling and service agreement. If you are in New York, You have a chance. Pass this on to your attorney. Good Luck to you and your family.