Texas Credit Repair » Texas Credit Repair

Protect Yourself: Demand Your Mortgage Note and Service Agreement

admin — Wed, 13 Oct 2010 15:11:09 +0000

As the mortgage and foreclosure mess heats up across the nation, many large banks, under pressure from the Attorneys General in states like Texas and Delaware, are halting the foreclosure process. The reason for this freeze is that banks are unable to determine who actually owns a specific mortgage note. This resulted from the fact that many banks, starting from the original mortgage lending company, transferred the notes, via electronic means, to other lenders and banks, which eventually securitized the loans into what are known as Mortgage Backed Securities (MBS). The MBS were then diced, sliced and repackaged, and then resold to other financial institutions as investment vehicles.

The problem, of course, is that nowadays, no one knows exactly who owns what or who is responsible for paying who.

Today, millions of Americans have stopped paying their mortgage notes. Up until recently, many were already well within the foreclosure process, while others who were 90 days or so past due on payments were lining up during the delinquency process. According to a recent quarterly report from JP Morgan Chase, the average foreclosure process takes approximately 14 months, meaning that if you stop paying your loan today, you’d probably be able to remain in your home for upwards of one year before the foreclosure process was completed.

In many cases, however, foreclosures have reportedly been processed in error. In one widely reported instance, a homeowner was actually foreclosed on by two different banks who claimed ownership of the mortgage note! In many other cases, homeowners returned after a hard day of work only to find the locks on their doors changed and all of their belongings gone – and they had never missed a payment!

Errors are rampant in the mortgage market of today. To avoid becoming another mistaken foreclosure victim, we urge Texans, as well as all Americans, to take steps today to ensure that the bank which claims to own your mortgage note, as well as the mortgage service company collecting your monthly mortgage payments, are doing so under full legal authority.

Failing to do so may lead to credit problems down the road. Can you imagine having a foreclosure on your credit report, even though you made timely payments?

What You Should Do

Several web site have popped up that promise to generate a form letter that you can send to the mortgage/service company to verify the legitimacy of the mortgage note. While these web sites have good intentions, the letters which they generate are often lacking the necessary legal requests, and fall short of providing specific details of how to initiate the process with proper personal documentation of the process.

The following sample letter, provided by Foreclosure Detonator will ensure that you are requesting the proper information when contacting your lender.

This is a sample letter that acts as a Demand for your Mortgage Note and Service Agreement from the company that collects your monthly payments. It may need to be modified for your specific needs.

This letter will do several things which are very important to the initiation process:

Requests that the mortgage company provide you a copy of the mortgage note, for which they should have immediate access if they are the rightful owner/collector of payment on the mortgage
Requests that the mortgage company – if they are not the owner of the note but only service the monthly payments – provides a copy of the service agreement from the original note holder giving them the right to collect monthly payments on the note
Gives the mortgage company 30 days to respond – failure to do so will have legal ramifications for them
Requires that the mortgage company responds in writing, so a paper record(s) exists

The following letter should be sent to the bank to which you make your regular monthly mortgage payments.

Demand for your Mortgage Note and Service Agreement [SAMPLE LETTER]

To whom it may concern: I own the property at the address listed above, and your bank services my mortgage.

Over the last several weeks there have been many stories documenting the problem that banks are foreclosing on homes without proof that they own the loan. I have learned that in many cases, banks like yours do not even know who owns the loans you service. Employees at several leading banks have admitted to rubber stamping tens of thousands of foreclosures every month, without even checking to make sure that the bank had a legal right to proceed with foreclosure. In some cases, banks allegedly falsified mortgage documents to cover up their mistakes. There have been reports of two banks trying to foreclose on the same home, banks foreclosing on homeowners who were current on their payments, and even of a bank foreclosing on a home where the homeowner had never taken out a mortgage to begin with. This is not merely a “technical problem”–it is the difference between having a warm bed at night and being out on the street.

As a homeowner and a customer of your bank, I am horrified. I had always believed that it I played by the rules, I would be protected, but now I know that banks like yours think the rules don’t apply to them.

To protect myself and my family, I need to know who owns my mortgage. Within thirty days, I would like to know the name, address, and phone number of the bank or investor that owns my mortgage. Furthermore, in light of the recent allegations of foreclosure fraud, I demand to see the original mortgage note proving ownership over my home loan. I would like to see copies of all endorsements and assignments of my mortgage note and where and when the assingment(s) _if any – were recorded. I also ask that you provide me with evidence of your firm being contractually retained to service my loan.

If you fail to provide the information I am legally entitled to, I will be forced to consider all options available to me to ensure that my family and my home are protected.

I ask that I receive my response in writing.

Thank you for your attention to this matter.

Important Note to Readers: As with all correspondence dealing with personal credit, loans, and credit collections, this letter should be sent using U.S. Postal Service Certified Mail With Return Receipt service. This will date stamp the letter at the time it was received, giving you a specific date from which to start the 30 day countdown. Failure to utilize CMRR service from the USPS may lead to problems later on if the bank denies having received your letter.

Following Up After 30 Days

Because a bank claims to be the rightful servicer of the mortgage loan, they must respond within 30 days. Failure to do so may have legal ramifications for them.

If the bank is unable to, for whatever reason, provide the necessary documentation proving that they are the rightful owner of the loan, you’ll need to contact an attorney for further action.

Though you may not end up “getting a free house,” you may very well be able to delay loan payments until the bank is able to sort out the paperwork – if ever. As mentioned above, the current foreclosure process takes in excess of one year to complete, suggesting that, if nothing else, you may be able to obtain interest-free deferred payments until the bank is able to provide you with the necessary paperwork.

Important Note to Readers: Do not stop paying your mortgage loan just because the bank has not responded or failed to respond with the appropriate documentation.

The remainder of this process will need to be handled through the proper legal channels and will require an attorney. If you need assistance with this, please contact us and we can put you in touch with an attorney who can help. Though you may need to retain an attorney with a payment, if the bank has failed to meet their obligations, the payment to the attorney should offset your monthly mortgage payment. You may also be able to recover this payment via your lawsuit against the bank or mortgage company.

Whether you have failed to make mortgage payments, or are current on your monthly payments, taking a few minutes to generate a letter to the banking institution will ensure that your home does not get foreclosed on in error, or by the wrong institution. Taking steps to verify the legitimacy of your mortgage service company and bank can help to avoid significant headaches down the road.

Click here for more Tips for Texans

The sample letter has been provided by Foreclosure Detonator

Protect Your Identity and Good Credit

admin — Wed, 07 Apr 2010 19:37:58 +0000

When you have good credit or are working to build a credit profile the last thing you need is for thieves to gain access to your personal credit information. By doing so, they have the ability to take out loans in your name, clean your bank account or worse.

There are a variety of third-party services that promise to monitor your personal profile, but none stand out more than Life Lock.

With services starting at under $10 per month, Life Lock secures your identity online and off. And to be sure they are able to deliver on their promise, they have a $1 Million Total Service Guarantee.

About Life Lock:

LifeLock helps protect your identity – even if your information falls into the wrong hands. We provide you early notification of identity threats, search the web for the illegal selling of your information, help cancel and replace the contents of your lost or stolen wallet, verify change of address requests and much, much more.

Now, with the added power of our enhanced LifeLock Command Center™ protection suite, LifeLock can also help you know where your identity information is and where it’s been.

Read on to find out how LifeLock Command Center™ services can give you peace of mind through detection, protection and remediation. Then click ‘Enroll Now’ at the bottom of the page to help protect your identity today.

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Your Rights In Texas – Credit Reporting and Collections Laws

admin — Thu, 01 Apr 2010 20:07:37 +0000

As a Texas resident you can enjoy the rights afforded to you under Texas Law. Whether you are dealing with a credit collection or national credit reporting agency, if you live in Texas, you have unparalleled protections.

What is the difference between federal collections and reporting law compared to Texas laws?

The federal laws that protect consumers from unscrupulous debt collectors or mistakes on your credit report are outlined in the Fair Debt Collection Practices Act. While the protections have made it much harder for debt collectors to abuse debtors, they still fall short.

Under Texas law, namely the Texas Finance Code and the Texas Business & Commerce Code, debt collectors and credit reporting agencies are held to much stricter standards.

What types of protections do I have from debt collectors as a Texas resident?

There are a variety of guidelines that debt collectors must meet in order to collect an outstanding debt in Texas. These include, but are not limited to:

A debt collection company attempting to collect debt in Texas must be bonded and licensed to do so. Failure to maintain an active surety bond is grounds for an immediate cessation of collections and reporting to major credit bureaus.
A debt collector must validate a debt within 30 calendar days when requested to do so.
The debt collection agency must provide, among other things, specific information about the debt including proof that the debt has been legally transferred to them by the original creditor, the original balance, the date of original default, and the date of debt transfer.
Additionally, the debt collection agency must provide proof that you are, in fact, the debtor in question.
A collection company must prove, with a contract signed by the debtor, that they have the authority to collect fees, interest or expenses above the original balance
A debt collection company cannot, under any circumstances, engage in threats, coercion, harassment, abuse, unfair, unconscionable means, fraud, deception or misleading representations to collect debt. Texas law outlines over forty (40) credit collection agency actions that are against the law.
A debt collection company that is unable to meet any provisions of the debt validation process within 30 days is legally obligated to permanently cease collections and remove the derogatory listing from your personal credit profile with national credit reporting bureaus.
A third party collection agency that violates any provision of Texas Finance Code is subject to criminal penalties through the Texas Attorney General, as well as civil penalties that include monetary awards to the victim.

What can I do to start taking advantage of my rights as a Texas resident?

Option 1: Learn Texas laws, namely the relevant provisions of Texas Finance Code and Texas Business & Commerce Code, and begin contacting your original creditors, third-party debt collectors or credit reporting agencies about problems you may be experiencing.

Option 2: Contact an attorney. If you have been sued or are feel your rights are being violated we can help you locate an attorney in Texas that may be able to help.

Option 3: Take charge of your personal credit with the Big Tex Credit Repair Program. Let us guide you to the specific Texas laws applicable to your personal situation, show you how to implement a credit repair strategy, and walk you through the process, step-by-step. Click here to learn more.

Sample Credit Repair Letters

admin — Thu, 01 Apr 2010 19:06:50 +0000

We understand that navigating the credit industry is difficult, and credit collection companies do their very best to put barriers in your way.

That’s why we’ve developed the Big Tex Credit Repair Program, an easy, step-by-step guide to understanding the inner workings of the credit collection, credit reporting and credit repair industries.

Our sample letters will help you to turn the tables on unscrupulous debt collectors and derogatory listings on your personal credit profile by putting the power of the law in your hands.

This page of our web site is still under development, but we’re almost finished.

Check back soon!

If you’d like to be alerted, click here.

Credit Report Mistakes and Errors

admin — Thu, 01 Apr 2010 19:01:47 +0000

The credit reporting industry is extremely large, with the major reporting bureaus maintaining personal credit profiles on tens of millions of Americans. With large and complex systems come rampant errors, mistakes and inaccuracies.

Let us show you how to spot errors on your personal credit profile that may have a derogatory affect on your overall credit standing and credit score.

Then, we’ll show you what to do about and how to make simple errors work in your favor, and in some cases, even have the collection account completely removed!

This page of our web site is still under development, but we’re almost finished.

Check back soon!

If you’d like to be alerted, click here.

Powerful Techniques for Texans

admin — Thu, 01 Apr 2010 18:58:02 +0000

Whether you need to stop credit collection calls, dispute collection accounts or manage your personal credit profile, Big Tex Credit Repair can help.

Learn credit repair techniques that are so powerful, that many collection agencies would rather remove your alleged debt and cease collections than pursue further collection action.

This page of our web site is still under development, but we’re almost finished.

Check back soon!

If you’d like to be alerted, click here.

Texas Credit Repair: Step-by-Step

admin — Thu, 01 Apr 2010 18:54:03 +0000

We’ll show you how to repair and manage your credit, step-by-step, including the Texas laws you can cite when contacting credit collection agencies and credit bureaus, how to make initial contact, how to force collection agencies to comply with your requests, and what to do if they ignore you.

This page of our web site is still under development, but we’re almost finished.

Check back soon!

If you’d like to be alerted, click here.

Loans and Credit for Small Business

admin — Thu, 01 Apr 2010 18:07:27 +0000

Small business owners often have to agree to personal credit checks in order to obtain a bank account, business loans or even a merchant account.

In addition to repairing and maintaining your credit with the Big Tex Credit Repair Program, the following services can provide business owners with ways to obtain credit and essential business services.

We apologize for the inconvenience. This page will be available soon.

Build Your Personal Credit

admin — Thu, 01 Apr 2010 18:03:50 +0000

It’s never too late to start building your credit, even if you currently have derogatory accounts on your credit report or a low credit score.

If you have chosen to manage your personal credit with the Big Tex Credit Repair Program, or you’d simply like to get a head start on building your credit, then take a look at the credit loan offers below.

View All | Prepaid Cards | Secured Cards | Unsecured Cards | Apply for a Mortgage

We apologize for the inconvenience. This page will be available soon.

Credit Score and Monitoring Services

admin — Thu, 25 Mar 2010 01:23:24 +0000

If you have chosen to take charge of your personal credit, then staying on top of your credit score and monitoring your personal credit profile for regular changes is critical.

Whether you are working to repair and improve your credit score, or simply want to know if anyone is adding or modifying account information on your personal credit profile, then the following serves may help.

The following services are maintained by third parties, but are highly recommended for tracking credit scores, changes, improvements or problems with your personal profile at the three major credit bureaus.

True Credit is provided by one of the largest credit reporting agencies in the nation and offers a host of services for a low monthly price of $14.95.

You can try True Credit for free, with no risk, for 30 days to see if the services meet your need.

Benefits of True Credit:

Immediate access to all three credit scores from Trans Union, Experian, Equifax
Credit Score score calculations are made using Vantage Score, used by all three major credit reporting agencies
Immediate access to your credit reports
Regular, monthly credit report and credit score updates
Easy-to-ready credit reporting format to make your job of identifying errors and inaccuracies on any of your three major personal credit profiles.
Identity theft protection that emails you anytime there is a change to your credit profile
Personalized debt analysis and credit trending
Credit score analysis, recommendations and tips to help you improve
$25,000 Identity Protection Insurance

Free Credit Score at TrueCredit

Try continuous credit monitoring from Equifax Score Watch for $16.95 per month.

Continuous score monitoring and notification when a change in your FICO® score impacts the interest rate you are likely to receive
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Daily monitoring of your Equifax Credit Report with email notification of key changes (email / wireless alerts)
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If you would like to obtain a free copy of your credit report, with no scoring information or monitoring services, click here.