President Obama plays the game like a Republican - GOP howls in protest

[Riot]

Originally Posted by wiphan

Can you explain to me how this massive consumer fraud works? and how a foreclosed consumer is affected by these fees?

Go read the thread, here:
http://www.derbytrail.com/forums/showthread.php?t=45056

[wiphan]

Originally Posted by Riot

Go read the thread, here:
http://www.derbytrail.com/forums/showthread.php?t=45056

What I want to know is how a foreclosed customer (who doesn't pay or they wouldn't be in foreclosure) is paying these so called fees? A bankrupt customer is either restructuring their loan terms (ch 13) and thus the bank is losing thousands of dollars or they are reaffirming on the debt (ch7). In the bankruptcy cases I guess I could see where the consumer could possibly be charged extra fees, but not in a foreclosure.

[Riot]

Originally Posted by wiphan

What I want to know is how a foreclosed customer (who doesn't pay or they wouldn't be in foreclosure) is paying these so called fees?

Go to the aforementioned thread.
Click on the link to the original source.
Read the words in the original link that comes after, "Here’s how the double-dipping scam can be pulled off."

[wiphan]

Originally Posted by Riot

Go to the aforementioned thread.
Click on the link to the original source.
Read the words in the original link that comes after, "Here’s how the double-dipping scam can be pulled off."

What that says is the banks are charging them double for their escrow account, once as part of their payment and once as a shortgage. Since the escrow account is in all reality the customers own $ how is the bank making out on this? If the home is sold or the loan is paid in full the customer gets their escrow money back. When the taxes are due the bank pays the taxes with the $. Same with the Home owners insurance. If a ch 13 bankrupt customer falls behind on their payments wouldn't their escrow account also fall behind thus creating a shortage in the escrow? What am I missing?

[Riot]

Originally Posted by wiphan

What that says is the banks are charging them double for their escrow account, once as part of their payment and once as a shortgage. Since the escrow account is in all reality the customers own $ how is the bank making out on this?

The consumers are declaring Chapter 13 bankruptcy. The bank has charged them double for escrow fees, thus the bank is demanding double the amount they are due (in escrow fees) in the bankruptcy proceeding. The banks are (allegedly) making a false claim of monies due, in excess of the truth, above what the homeowner really owes the bank. The bank says, "Homeowner owes us 5 months back payments, plus the new escrow fee" - except the escrow fees are already included in the "5 months back payments" and the "new escrow fee" is fraud.

Federal investigators are looking into allegations that banks have wrongly pocketed tens of millions of dollars from troubled homeowners by double-billing for mortgage escrow fees, The Post has learned.

Exactly how much in phony profits the banks may have pocketed from this alleged practice is not known, but an analysis by The Post of bankruptcy cases in 2011 shows it could range higher than $150 million for just the new cases filed this year.

The problem has gotten so out of hand that lawyers and accountants at the New York City office of US Trustee — charged with protecting the integrity of US bankruptcy courts — are poring over local Chapter 13 bankruptcy cases for evidence of wrongdoing.

Wells Fargo CEO John Stumpf may be feeling the heat as the federal government’s US Trustee program, which investigates fraud in bankruptcy courts, has asked lawyers for information on Wells Fargo and other banks double-billing in foreclosure cases.

The federal investigators were tipped to the alleged practice by metro area bankruptcy lawyers. Cases specifically involved Wells Fargo and GMAC Mortgage, but lawyers say most banks had double-dipped.

[wiphan]

Originally Posted by Riot

The consumers are declaring Chapter 13 bankruptcy. The bank has charged them double for escrow fees, thus the bank is demanding double the amount they are due (in escrow fees) in the bankruptcy proceeding. The banks are (allegedly) making a false claim of monies due, in excess of the truth, above what the homeowner really owes the bank. The bank says, "Homeowner owes us 5 months back payments, plus the new escrow fee" - except the escrow fees are already included in the "5 months back payments" and the "new escrow fee" is fraud.

Again you are missing the point. There are no "fees" to escrow. These so called fees are $ used to pay taxes and insurance. If the customer renegotiates or recalculates their payments (ie. Ch13) then of course their escrow account is going to be messed up. This is the customers $ and used like a forced savings account to pay taxes and insurance. Instead of posting articles actually stop and think about it

BTW- Banks tend to lean more democratic than republican. Do you see what bank stocks are doing today after the appointment? Possible huge government mortgage refinance program coming to a theater near you?

[Riot]

Originally Posted by wiphan

Again you are missing the point. There are no "fees" to escrow. These so called fees are $ used to pay taxes and insurance. If the customer renegotiates or recalculates their payments (ie. Ch13) then of course their escrow account is going to be messed up. This is the customers $ and used like a forced savings account to pay taxes and insurance. Instead of posting articles actually stop and think about it

Again you are missing the point. This is not addressing what happens AFTER the Chapter 13. This is not addressing any monies in the escrow accounts, or owed to the escrow accounts in unpaid monthly fees contained in the monthly mortgage payment. It is an extra fee the bank is dumping on the client's account RIGHT BEFORE the Chapter 13, before the homeowner gets in court, in addition to the funds already in or owed to escrow in the monthly payment.

I suppose you could always call the Federal Bank Trustees investigating this to explain how they are wrong. And call the reporter and tell her that she shouldn't have written the article. And the bankruptcy court attorneys who have reported it to the Feds for investigation.

[bigrun]

Originally Posted by Riot

The consumers are declaring Chapter 13 bankruptcy. The bank has charged them double for escrow fees, thus the bank is demanding double the amount they are due (in escrow fees) in the bankruptcy proceeding. The banks are (allegedly) making a false claim of monies due, in excess of the truth, above what the homeowner really owes the bank. The bank says, "Homeowner owes us 5 months back payments, plus the new escrow fee" - except the escrow fees are already included in the "5 months back payments" and the "new escrow fee" is fraud.

Did you catch Stewart last nite...Hilarious...watch the bit with John Oliver giving Stewart lessons on the Constitution....


Commission: Impossible - Consumer Financial Protection Bureau Chief Appointment

http://www.thedailyshow.com/watch/th...xrs=share_copy