Lisa’s Foreclosure Battles & Opinions

I am starting a mortgage audit business specializing in California and I wanted to share some information with your readers.

Though most TILA attorneys will use federal law as it supercedes state law in almost all cases, that is not necessarily the case for loans serviced by mortgage servicers. These companies must be licensed by the state in which they are to enforce the law or foreclosure.

Here’s a sample letter I’ve sent out for a client:

To: the California State Attorney General’s Office     
To: the California Department of Corporations
To: the California Department of Real Estate
To: the California Department of Financial Institutions
RE: Illegal foreclosure of California homes

Dear Personnel,

I am writing to make you aware of an egregious misrepresentation of a company that is authorized or licensed to do business in the state of California.

The mortgage servicing company, Private Lender Services, Inc., which is based out of Anaheim Hills, CA, is foreclosing on homes in the California area even though the loans are in violation of the HOEPA and California’s Covered Loan laws. Private Lender Services, Inc. is not a bank; it is a mortgage servicing company that specializes in securitized mortgages owned by trusts, private lenders and such.

I believe that this company, which is also enforcing loans that violate the federal Truth in Lending Act as well as the California Covered Loan law, has illegally foreclosed on many homes without lawfully being able to do so. I believe that this company should be prevented from being licensed in this state and should probably be prosecuted for foreclosures and illegal debt collection practices.

I am one of the homeowners caught in Private Lender Services’ web. I had rescinded my loan as per the federal TIL Act and the HOEPA and California’s Covered loan law within the 3 year period by that law. I sent a copy of the mortgage audit I had obtained. As of this writing, the company has failed to respond to my letters and have continued, illegally to foreclose on my home.

The mortgage audit not only searched for federal violations only; it also sought out any state laws. I conducted a search and found that Private Lender Services is licensed by the Department of Real Estate to practice in the state of California.

I am writing this letter to call to your attention that, (a) there is a company that is illegally foreclosing on California homes and (b) they might not be the only one.

I believe that the bankruptcy trustees and their attorneys should first check to see if a creditor is licensed to collect the debt and also to check for HOEPA violations and violations of the California Covered Loan law. There are only 2 triggers for each—and 3 collectively. I cannot see how it would be in anyone’s interest to enforce an illegal loan—except for the company breaking the law, that is.

Your prompt attention to this highly important and timely matter cannot be emphasized enough. Please act quickly to curb these terrible crimes against struggling homeowners.

Sincerely,

Lisa