Tuesday, September 9, 2014

RCS Creates Fake Foreclosure Sale Date in North Carolina

Creating a Fake Foreclosure Sale Date to Avoid Loss Mitigation?

As an attorney who represents many homeowners in mortgage relief, mortgage dispute, and foreclosure cases, I have seen some illogical and bizarre actions by many of the loan servicers. In fact, many of the loan servicers are large financial institutions that you and I both know by name. The most recent case involves Residential Credit Solutions (RCS) and a borrower in North Carolina attempting to obtain a mortgage modification.

To be fair, RCS did actually offer the client a modification offer; however, the modification offer increased the monthly mortgage payment. Generally, borrowers applying for a mortgage modification cannot afford their current payment and apply with the hopes of reducing their payments to something they can afford. Thus, the lackluster offer from RCS forced our client to go down another path, a deed-in-lieu of foreclosure.

DFake Stampespite receiving a complete loss mitigation application, RCS refused to consider our client’s request for loss mitigation due to a company policy that does not allow any file to be reviewed for a short sale or deed-in-lieu within 60 days of a foreclosure sale date. Not only did RCS create a rule that was in direct violation of federal guidelines, but it also created a fake sale date - there was no foreclosure sale date scheduled! We even sent RCS a certified copy of the court file as evidence that there was no foreclosure sale date, but RCS ignored that actual proof, instead stating that it could only go by “the note in our system.” Yet in contradiction to “going by notes in its system,” RCS took the liberty of notifying our client of the non-existent sale date, despite the cease and desist on file in its system.

At the second foreclosure hearing, the Clerk of Court ordered another continuance, partly due to the RCS actions / inactions above. That Order specifically stated that there was no foreclosure sale date scheduled, yet RCS still refused to consider loss mitigation, stating that there was a foreclosure date scheduled.

It gets even worse… After jumping through hoops and filing multiple complaints with federal and state agencies, RCS finally removed the incorrect sale date from its system. However, an agent at RCS informed us that it still could not review our client’s file for loss mitigation because there was a chance that there could be a foreclosure sale scheduled within the next 60 days since there was a foreclosure hearing in the next two weeks.

At the third foreclosure hearing after a detailed explanation of the situation, another Motion to Continue was granted by the Clerk of Court. The signed Order specifically stated that there was no foreclosure sale date scheduled. Finally, after five months of going back and forth with RCS, we received a letter informing us that our client’s file was being reviewed for a deed-in-lieu and requested specific documentation. Stay posted for more fun, games, and violations of law and rule by RCS.