Majestic Mortgage and Mortgage Fraud

Mortgage fraud has become very common and every day we get to see headlines screaming out details of fraudulent activities in the mortgage industry. There are many companies who have extracted money from people. Many have also become homeless in the process.

Majestic Mortgage and mortgage fraud

A similar incident took place a year back when a couple had to lose their home and by the time they had discovered that they were homeless, the miscreants couldn’t be traced. A company calling themselves Majestic Mortgage claimed to help people and get them out of the foreclosure mess. An old couple had taken out mortgage from a company known as Litton Loan Services. Representatives of Majestic Mortgage assured the old couple that they would be buying the house from Litton Loan Services directly. By doing so, the monthly payments would go down to approximately USD$650 to USD$750. The couple could continue paying this amount for the next 2 years. It would not only help to repair their credit but after a period of 2 years, if they so desire, they could opt for refinancing.

The crux of the matter was that the couple had to sign a quitclaim deed. And it was also made clear that during the deal if it was necessary Majestic Mortgage could alter the terms of the contract. They showed their true color when the contract was modified at least 5 times, each time giving a new excuse to do so. However, throughout they didn’t change the title of the house and let it be in the name of the original owner. Meanwhile, the couple had been making payments to Majestic Mortgage (USD$1000 per month).

On receiving a notice from Litton Loan Services after few months, the couple discovered that the monthly installments they had been paying Majestic Mortgage went into their pockets. To the couple’s utter dismay, it was found that their house was in the list of houses facing foreclosure. The Majestic Mortgage people meanwhile brought in a property appraiser and started repair work in the house. However, the house couldn’t be saved and was preyed upon by the Majestic people.