Where There’s Smoke, There’s Fire. A New Fact Pattern Is Developing.
I’m beginning to see a disturbing trend in a number of cases that I am investigating. Internal accounting data on my client’s loans, which is being reported by the master servicers for the securitized trusts, is telling the investors that the loan/debt has received a “principal reduction modification,” when in fact the client has never been offered any modification, nor has the client consented to any modification.
The dates of which the loans were allegedly modified seems to occur shortly before a “default” is declared by the servicer of the trust. This can’t be good. At this time, I can only guess as to what might be going on behind the “Wizard’s Curtain.”
Hypothetically, if the debt balance owed to the investors is $200,000, and the servicer tells the investors it has granted a principal reduction of $50,000 on the debt, could it be that the servicers are collecting and pocketing the $50,000 from the eventual sale or liquidation proceeds for that portion of the debt they still claim is owed by the unsuspecting borrower? This may be a whole new fraud pattern folks! This is why you need to obtain a securitization and chain of title analysis.
Bill Paatalo – Private Investigator – BP Investigative Agency bill.bpia@gmail.com
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I am always happy to find you have a new article posted. Isn’t there just always some new twist!