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More Bank Deception: Court Finds WAMU and Chase Committed Fraud in Foreclosure Case

By
Services for Real Estate Pros

    In the Fourth Judicial Circuit Court in Duval County Florida in a court case of JP Mortgage Chase Bank versus two homeowners willing to defend their position, the court found JP Mortgage Chase, Washington Mutual Bank and their attorneys guilty of presenting false assignments of mortgage so they could foreclose on the property (Case No: 16-2008-CA-3989, Division CV-D).   The courts found clear and convincing evidence that WAMU, Chase and their attorneys committed fraud in the Court.  Caught with their pants down after the defendants discovered that WAMU presented themselves as holders of the note and mortgage rather than just servicers, the bank's attorneys pleaded the case of "oops" and stated that they made "clerical errors" when presenting this false information.  

   The court also knew when WAMU and their attorney submitted the Assignment of Mortgage to the Court, the assignment did not accurately depict the property party of interest legally able to foreclose. The bank's attorneys itself had prepared a false assignment of mortgage naming the original note holder as assignor and Fannie Mae as assignee as support for the foreclosure judgment.   But it was WAMU/Chase that was the foreclosing entity who were only servicers, not the note holder.  Public record deemed that only Fannie Mae was the only party of interest able to foreclose, not the servicer WAMU/Chase.  WAMU and JP Mortgage Chase had no standing to pursue the foreclosure action.   The Court found "clear and convincing evidence" that these acts committed by Washington Mutual, Chase, and their attorneys amounted to a "knowing deception intended to prevent the defendants from discovery essential to defending the claim" and therefore fraud.

   The case was Dismissed with Prejudice for fraud on the court.  The defendant was able to amend the motion to recover their attorney's fees and costs, but Chase, WAMU and their attorneys got off scott free.  So although the homeowners won the case, there were no punitive fines or the like against Chase or WAMU in their deception, lies and illegal proceedings they committed.  

   So if these banks take the liberty of foreclosing on mortgages as merely servicers, when it has no legal ground for such an action, who knows how many homes have been foreclosed upon illegally.  It's time to start delving into the details of your mortgage, whether you are in distress or not.  This fraud is much more pervasive than most of the public is aware of.  A title search of your property in the county recorder's office should have on record who your true note holder is (unless it is in MERS).  If your note has been sold there must be an Assignment recorded for that entity to have legal standing to foreclose on the house, or be entitled to mortgage payments.

Stella Barbour
NoVa Brokers LLC - Vienna, VA
Principal Broker, Serving Virginia and Maryland

I am so sick of mortgage fraud.  These mortgage companies get away with so much stuff.  It just has to stop.

Sep 30, 2010 03:30 AM
Anonymous
Miriam

I've lived in my home for over 20 years.  Won my home in my divorce in 2005.   Refinanced my home to make it affordable for me and my son (just turned 14).   In July 29, 2010 when I called to verify my property tax and interest, I was told that my home was sold.   I never rec'd any documents showing that it was going to be sold, much less any other problems.   I had made my 3 month trial payments, then continued to make payments and even made my July Payment.  

When CHASE said they sold my home, I asked "Why?"....  they had no response, until they started transfering me to everyone within CHASE (modification agents, customer care, REO agent, loss mitigation agent and even managers).  They all of a sudden started throwing things out such as, I wasn't in modification (i was), I had missed a payment (i had not), I had a check returned (i had not), I didn't turn in all my paperwork for modification (which I did and have copies), then finally the best one yet was "we don't know and there is nothing we can do at this point, but we suggest you get an attorney"...  CHASE actually told me to get an attorney.

After pulling documents from CHASE Branch and asking for documents from the main CHASE Corp.  I rec'd some documents that show that CHASE made an error in posting my mortgage payments.   Yet when I tried to speak with CHASE no one would listen to me and apparently they could see what I had in my hands.   All CHASE would tell me is that there was nothing they could do since the property had already been sold.  Then they would add, we suggest you get an attorney if you want to try to get your house back.

However, as of today (OCT. 20, 2010) I've rec'd eviction notices, and 3 day to move out notices and now even the county court house has served me papers to move out.  I filed with the county courthouse my reply to CHASE/Fannie Mae and am waiting for a court date.  No attorney seems to want to help me so I will be fighting for myself, my son and our home that we apparently now have lost due to CHASE Error.   I've had to find a place to move into that I don't care for, that is way too small because I can't afford a place that compares to the size of our home that we lost.  I'm paying way too much in a mortage payment and it isn't home.  I've had to rent a storage place, rent a UHall truck, buy packing boxes and such to move my items, missed time from work to do all the above and still keep running to CHASE Branch Office, County Recorders Office to get documentations, Court House (many times over), Pay Courthouse to file a Reply to CHASE.  Dear Lord so much and still more every day.   So add Stress to the mess....    Being a single parent is hard enough, trying to find a new place on my salary is worse, trying to move is harder, fighting with ex' that now wants full custody due to me not having a home for me and my son is over the top.   HELP>.......

 

Oct 20, 2010 07:16 AM
#2
Anonymous
Jane

Mu daughter and her husband filed suit 15 months ago against Chase because Chase actually posted the payments late even though the payments were made electronically from Chase to Chase and the documents showed that the money was in the mortgage loan account.  It destroyed their credit, their business, etc.  We have several witnesses who will testify that Chase treated them with the same disdain and disregard as they treated you.  Feel free to contact us.  I realize that this is of little help, but it's all we can do.  My heart breaks for you and your son!

Jane

Jan 24, 2011 11:09 AM
#3