Consumer complaint received 2019-05-21
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: Onity Group Inc. (SC)

Attempt at Chronological Order of Events in XXXX ( XXXX ) XXXX XXXX Foreclosure : 1 ) Approximately XXXX XX/XX/2013, was notified by Certified Mail from Law Firm, XXXX and XXXX in XXXX, SC that foreclosure proceedings would begin in Master In Equity ( MIE ) Courtroom on XX/XX/2013 at XXXX XXXX in the XXXX County South Carolina Courthouse to set a sale date for Foreclosure on our home at XXXX XXXX XXXX., XXXX XXXX, SC XXXX. 

2 ) Contacted XXXX XXXX at XXXX XXXX XXXX firm on approximately XXXX XX/XX/2013 to assist me with ascertaining assistance on getting foreclosure proceedings stopped. 

3 ) Sunday, XXXX XX/XX/2013, received Securitization Audit from XXXX to take with me to court on Monday, XXXX XX/XX/2013. 

4 ) Monday, XXXX XX/XX/2013, spent the early morning hours on phone with XXXX XXXX going over how to present audit findings to the Judge and what to say. 

5 ) Monday, XXXX XX/XX/2013 went to court and met opposing attorney from XXXX and XXXX XXXX XXXX. Mr. XXXX XXXX, representing XXXX XXXX 10 minutes before the court time was to begin. He went over papers to insure that I was who I said I was and also informed me that their purpose for being there that day was to set a sell date for my house and he told me the date BEFORE we even went into the courtroom to hear the case before the Judge. 

6 ) Upon opening statement of Attorney for XXXX XXXX I interjected with the fact that I had never seen any of the documents he was presenting to the Judge and he immediately told me, in front of the Judge, to give him my e-mail address and he would e-mail me the documents over after he left court that day. 

7 ) The Judge asked me if I had any questions or would like to address the court. I immediately asked him if I could approach and give him a copy of the Securitization AudiXXXX and he refused to allow me to bring it or show it to him. The opposing attorney wanted a copy of it and I provided it for him on the spot with a copy I had already prepared for him. 

8 ) I stated exactly and verbatim of what I was schooled to say to the Judge and he simply set there, listened and then asked if there was anything else that I wanted to say. He would not look at the Audit and would not even consider anything I said was plausible whatsoever. Upon saying there was nothing else, he immediately looked to Attorney XXXX and asked him what date they wanted to have the sale and he told them XX/XX/XXXX or XX/XX/XXXX, Im not exactly sure but it was one or the other of these two dates. I was so overwhelmed that at that point it became irrelevant of the exact date I suppose. 

9 ) I called and told XXXX about the reaction of the Judge and he was appalled and overwhelmed as was the Auditor that did the Audit as well. He told me to contact you to prepare a Temporary Restraining Order and an Ex-Parte Motion to get an immediate audience with the Judge again to go over the inaccuracy of the claim being made that XXXX XXXXk had jurisdiction or the legal right to foreclose on my property. 

10 ) He suggested I go get every document that had been filed with the XXXX County Clerk of Court and Register of Deeds and we did so. 

11 ) On Wednesday, XXXX XX/XX/2013, in addition to what XXXX said about ascertaining the documents from the Court and Register of Deeds, he asked me if I had received the e-mail from the attorney with the documents he had promised me in court in front of the Judge. I told him I had not received them yet and he suggested that I call the attorneys office, XXXX XXXX, at XXXX and XXXX to ask where my copies of all the documents provided to the Judge were, as I had not received them yet. I called them and was told by the lady that handled the requests for Attorney XXXX that I would have to send her an e-mail to their status section to get those copies. I did send the request to her at the address she gave me, XXXX. 

12 ) Again, on Thursday, XXXX XX/XX/2013 I spoke with XXXX and he asked me if I had gotten the e-mail from the attorney yet and I told him no. He suggested to call them again. I did call them again and was told that I needed to send an e-mail again to the XXXX e-mail address she gave me. I sent it again and confirmed that it was received. He told me to call them every hour until I got satisfaction. 

13 ) I called her again on Thursday, XXXX XX/XX/2013 approximately an hour later to ask if the request had been sent out to me. She put me on hold and came back to tell me that they could not send them out to me until it had been filed with the court. When I asked when that would be she said it would probably be sometime the following week. I told her that was ridiculous and it would be too late to question the validity of the documents before my sale date arrived. 

14 ) I still had not received the e-mail on Friday, XXXX XX/XX/2013 and called the Law Firm, XXXX and XXXX, again and asked specifically for Mr. XXXX XXXX. They refused to let me speak with him and I asked to speak with his Para-Legal. I spoke with XXXX in his office and explained my frustration with not getting these requested documents and he went on to confirm that they would not send the documents to me until they were filed with the courts, which again I told him was ridiculous and out of the question. 

15 ) I faxed all the documents that were received from the XXXX County Clerks office and the Register of Deeds to XXXX on Friday, XX/XX/2013. There were a total of 82 pages sent to him and he said he would review them and get back to me. 
SUMMARY AND CONCLUSION In preparation for this narrative summary, the auditor has thoroughly reviewed each document submitted for review. Above is the verified timeline that applies to this Loan. In addition, information from other sources has been researched and included as deemed appropriate. Although not expressly stated in the Client Intake Sheet, it is assumed that the purpose of the Borrowers engagement of this review is to determine whether the foreclosing party has legal standing to sell the property ; and, if not, whether information ascertained in conjunction with this audit might assist in either 1 ) further delay and/or 2 ) prevent outright the foreclosure of the property. 
It should be noted that the primary document for review in an audit is the Promissory Note. We have not been provided with a copy of the Note, particularly a Certified True and Correct Copy of the Original executed Note. It should be noted that the Borrowers have twice specifically requested a copy of the Note from XXXX and twice have received copies of the entire document set without a Note. No explanation has been provided as to whyXXXXXXXX can not produce a Note. 
We reviewed an Allonge to a Note, Executed by /stamp signature/ XXXX XXXX XXXX , Vice President. For XXXX XXXX XXXX XXXX, XXXX, Pay to the Order of [ blank ] Without Recourse XXXX XXXX XXXX XXXX, XXXX. 
We reviewed XXXX XXXX XXXX Investor Reporting System ; however XXXX XXXX does not show that is acting as a Trustee for a XXXX XXXX Mortgage Loan Asset-Backed Certificates, XXXX XXXX XXXX. The Trust Investor Reporting site lists all active securities whether they were publicly issued through the SEC or were private placements. The only We did find information that XXXX XXXX is the Trustee of a XXXX XXXX XXXX XXXX XXXX. We do not know who the Trustee ( legal owner ) of the XXXX, XXXX or the XXXX XXXX would be, if the Trusts still legally exist and have not been collapsed. 
It does appear from reviewing Federal Court records, that XXXX was the Trustee for the XXXX XXXX Mortgage Loan Asset-Backed Certificates, XXXX XXXX per XXXX v. XXXX US District Court - Texas Case XXXX. 
Based on the fact that we have not been presented with the Note or the opportunity to view the Note as required under the Uniform Commercial Code and the fact that the foreclosing party has not asserted that the Note has been lost providing a proper Lost Note Affidavit, we can not see that they have standing to foreclose. We do not see that we have a valid Note, Note Endorsement and no valid Assignment of the Mortgage. The unexecuted and unrecorded document provided does not list a valid or complete trust name. 
We do not believe that a correct, valid and existing trust has been identified, and are fairly certain that XXXX XXXX has no standing to foreclose on this property. 
If it is determined that the Note and Deed of Trust are held by different entities, the loan would be considered bifurcated*, and the security instrument would no longer have the validity to foreclose on the property. 

Bifurcation : In XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX, XXXX XXXX. XXXX XXXX XXXX ), the United States Supreme Court stated, The note and mortgage are inseparable ; the former as essential, the latter as an incident. An assignment of the note carries the mortgage with it, while assignment of the latter alone is a nullity. The obligation can exist with or without security but a security interest can not without the underlying existing obligation ... so if all you get is the mortgage and not the note, that's pretty much worthless, or you have a Note without collateral. 


Sincerely, XXXX XXXX Compliance & Audit Manager XXXX XXXX XXXX XXXX T : XXXX C : XXXX F : XXXX XXXX : XXXX W : XXXX M : XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, WY XXXX " Research is creating new knowledge. '' XXXX XXXX