Welcome to the Mortgage Horror Blog.  The Mortgage Segment of the industry is the home of 99% of all of the problems in the field services industry. The field services industry offers some great opportunities in the commercial and insurance segments. The purpose of this blog is to identify the problems in the Mortgage Segment and to separate the problem-plagued Mortgage Segment from the better segments of the industry

Field Inspector Owes Bank of America $12,774,102.00


Dean Counce plead guilty to wire fraud after doctoring a few inspection reports that were submitted to Bank of America Field Services.

According to court documents, Dean lost two homes in Brooksville, Florida, a silver watch, a gold watch and a gold bracelet. The court also ordered restitution to Bank of America in the amount of $12,774,102.00.

He is 42 years old. He will be 50 after eight years in a federal prison in Virginia. The court has ordered Dean to pay $200 a month in restitution upon release from prison. It will take 5,322 years for Dean to pay the $12,774,102.00 restitution to Bank Of America.

Counce’s company was required to visit a property, complete a report, take photographs and send the information to the lender. Initially, Counce performed inspections himself. As his company grew, employees were hired to carry out the inspections. As the number of foreclosures skyrocketed, the employees were not able to keep up with the volume of inspection requests. Counce’s staff began fabricating reports.

According to investigators, Counce directed inspectors to visit the property and take more photographs than necessary. The photos were then used for subsequent reports. In other cases, Counce allegedly told workers to use information from public websites to fabricate reports for properties that were never inspected.

Employees estimated about 30 percent of the reports completed in 2007 and 2008 were fabricated. That percentage increased to 50 to 60 percent in 2009 when Counce won a new contract with Bank of America. Bank of America paid the company about $23.5 million over the course of five years.


HUD Master Key Codes Have Been Compromised … New Codes Are Coming … An Electronic Solution Is Needed

What would Adolf Hitler say about HUD changing the master key codes?

According to reports issued by the U.S. Justice Department, a real estate agent pleaded guilty to one count of conspiracy to steal government property. Sember Lynn Smathers, 49, has been accused of selling household appliances she illegally removed from vacant homes owned by the federal housing agency.

Court records, that have since been made public, indicate that Smathers stole approximately $13,678 worth of appliances from vacant homes. She used her position as a real estate agent to gain access to the listings of vacant homes in the Charlotte area that were owned by the U.S. Department of Housing and Urbane Development (HUD). Smathers used her HUD master key to enter each vacant home and steal whatever she could, including refrigerators, stoves, washers, dryers, clothes and lawn maintenance equipment.

Smathers then proceeded to elicit the goods over several Internet websites and through a business she established called “Cheap Stuff.”

So Your Bid On That HUD Property Preservation Task Was Too High … But, Did HUD Really Approve The Bid … Get Paid … & The Job Went To A Lower Bidder?

“So I submitted a high bid and HUD approved the bid.
Then the Mortgage Order Mill (MOM) shopped the task
around and hired another contractor to do the job.
The MOM was paid the higher price that I bid. If
they can’t find a lower bid, they will demand that I
lower the price if I want more work. They are
playing games with both me and HUD.”

SOFI has created a database for bids that you were told were not accepted by HUD. We will offer the information in this database to HUD. HUD can looked at the bids that they have approved and see if the approved bidder got the bid or if it was shopped around and provided to a lower bidder while the higher bid was submitted for HUD approval.

Email your unaccepted or reduced bids to richard@law.name Call 321-543-2809 if you want to chat.

Foreclosurepedia … Mitch Davidson Takes A Page Out Of The A2ZFS Patriot Act Demand

Subcontractor agrees and commits to not disparage, denigrate, defame, discredit, dishonor, injure, or otherwise communicate negatively about PE, directly or indirectly, while this Agreement is active and thereafter. This clause applies to both oral and written communications, including social media and other online type postings. […] The only exception for this section shall be if Subcontractor makes truthful statements about PE when compelled by court order, legal proceeding, or otherwise required by law.​ — Purdy Enterprise Disparagement Clause

Recycling Key Codes Is Not The Solution … Electronic Locks Or Lockboxes Are Needed To Control Access To HUD Properties

SOFI does not publish HUD master key codes and SOFI does not sell any locks, lockboxes or keys. SOFI respects that HUD needs to restrict and control all of their sensitive master key codes. They need to control and monitor access to their HUGE  pool of assets.

HUD handles the security of their HUGE pool or assets like you would expect at a rundown Motel 6 that still uses keys. HUD needs to move to ELECTRONIC … access controlled … locks or lockboxes. They need a new 2017 security plan. Recycling key codes will not work. HUD has no control over the security of HUD assets. HUD needs to get it right … and do it NOW!

Talk to some of the people at Walmart and even they will tell you that HUD security for pool assets is extremely out-of-date. If a Walmart customer says the system is not secure … it is not secure. Visit the Walmart in Vienna, Virginia … talk to customers …  and ask for some opinions on HUD security … a system of recycling Kwikset keys … a system where everyone is selling the HUD master keys online to anyone. HUD master keys are selling online for 99-cents.

Mr. Secretary … Think Big … Think NEW Electronic Locks or Lockboxes.

In your book “Think Big”, you talk about hope. You write … hope for all good things and be HONEST. Be honest Mr. Secretary. You know that HUD security is out of date. Be honest … change is needed. A leader makes new trails. Talk to the people on your staff who will provide logical and honest answers. Find the people you can trust. If you can not get logical and honest answers, then visit the Walmart in Vienna, Virginia this weekend. Get some opinions at Walmart on HUD security.

Electronic locks or lockboxes are needed NOW … be honest about it. Make the decision to go electronic. Protect HUD’s pool of assets.

Mr. Secretary … Think Big … President Trump selected you and he wants you to think big.

Think NEW electronic locks or lockboxes.

Secretary Carson … both of us grew up as very young adults watching Captain James T. Kirk … the Captain of the starship USS Enterprise-D. The television series stated at the end of 1966. At that time I was an Ensign … Naval Flight Officer … flying combat support missions off of the U.S. attack aircraft carrier USS Enterprise (CVN-65). When Captain Kirk wanted immediate action taken on the USS Enterprise-D, he always said “make it so”. Captain Kirk taught us both as young adults to make tough decisions and become leaders.

I served on the aircraft carrier USS Enterprise (CVN-65). I had to make tough decisions. I was awarded 13 Air Medals. Secretary Carson … your USS Enterprise is the USS HUD. I support you and I want you as the 17th HUD secretary to be the best secretary. You are the Captain of the ship. I only ask that you make great decisions like Captain Kirk did. He was a great leader. The USS HUD needs some damage control and some very needed repairs.

Homeowner Says MCS Property Preservation Crew Stole His Guns & Computer


A local homeowner says the door to his home was kicked in and his guns and computer were stolen, not by a simple burglar, but by people hired by his mortgage company. MCS hired a subcontractor, who hired a subcontractor, who hired a subcontractor, who, according to Carmody, illegally entered Randy’s place.

Some people in the industry say that Mortgage Contracting Services (MCS) may not survive a verdict again them in an ongoing class action suit for the misclassification of field service workers. Case law says that there is a very good chance that they will lose … big time.

Let me explain life to those that work in the mortgage segment of the industry. When there is beer in the refrigerator and a carton of cigarettes on the counter, the house is probably not abandoned. When there are guns and a computer in the house, it is probably not abandoned. Listen to this 911 call to police.