Is what my mortgage company did to me considered a fraudulant lending practice?
My house was still in my name at the time of my divorce when I allowed my ex and children to remain in the home. My ex-wife allowed the house to go into foreclosure because she was buying a new home and wanted to save money towards her down payment.
I was able to get the house out of foreclosure after fighting with the bank for nine months using the new HAMP program from the government. Everything was going fine, until they sent me the second set of documents to sign after completing the trial payment period of three months when every single payment was made on time. The problem was that the second set of documents still contained my ex-wife;s name and needed to be removed from the deed. So they told me to just do a quitclaim deed to fix the problem.
The problem seemed simple enough to fix, and I followed their instructions to the letter. They said she only had to fill it out and have it motorized and sent back to them. I asked if it had to be filed with the courthouse, and they said no just motorized. I then asked if it could be faxed and they said no they had to have the original. So I had her do everything they instructed and mailed them the original.
They claimed to have not received it and have a chance to look at it for over three weeks after it was mailed. Then they said it wasn’t acceptable because it had to be filed with the courthouse. They also went on to tell me that I should have faxed it and it would have only taken a couple of days! I advised them that they told me it couldn’t be faxed and that it did not have to be filed with the courthouse first!
They said “Oh well the person you spoke with got that wrong and now the problem is that you have gone past the time limit to receive the second set of documents and now your house is back in foreclosure because you failed ot abide by the HAMP agreement!
My mortgage was originally held with GMAC Mortgage and they were wonderful! They sold the loan to Midland Mortgage and this bank is only in the foreclosure business, they do not want payments to be made which is obvious with the other customer stories found online about them! I just believe that with them admit-tingly giving me false information and waiting so long to tell me it was wrong can be neither coincidental or legal!
I wholeheartedly believe that this was done intentionally to be able to get my house back into foreclosure! So it comes down to the question of whether this would fall under the protections against fraudulent lending practices? I am desperate to save my house and any information will be greatly appreciated and helpful!
Thank you for the helpful information. To answer your question about how it got back in foreclosure….first of all the documents were received according to their records three days after they were mailed. It took them three weeks to respond to them, even though I called to check in it at least three times a week and they kept telling me they were “in review”. As for the payments being on time, that was after I refinanced the house through the government HAMP program. A payment has never been late let alone missed.
This started after a rep from the bank came to look at the house and saw all of the improvements I had done that my ex had let go for a long time. They were working well with me until they realized the house could easily sell for more than the remainder of the loan balance. That’s what makes me suspicious that none of this was an accident. They seem to want the house back so they can sell it and get their money back immediately.
They have admitted that th