My Foreclosure Story with Seterus IBM

It was an exhausting 6 months. I finally heard the news that I wanted to hear. My house was closing escrow. I would be the legal owner after all of the shenanigans from the previous homeowners and the neighbor. I couldn't wait to paint the house another color besides cotton candy pink. My daughter hated the foam green carpets and so did I. We could finally replace them. I love the three fireplaces and beamed ceilings. The bright white walls upstairs gave the loft a feeling of cleanliness and serenity. 
My children attended secondary school in this house. They returned from college to this house. My daughter returned to this house to give birth to my grandson. I returned from many cross country consulting jobs to this house. I loved to travel abroad, but always relieved to return to this house. 
Things changed when Countrywide sold the mortgage. My daughter had developed a chronic illness and I was traveling across country to train teachers under No Child Left Behind. I talked to Bank of America regularly and they informed me about their policies and admitted to errors made on my account. We finally straightened things out when Seterus bought the mortgage in November 2010. 
It was a nightmare from the start. Bank of America stopped accepting my automatic payments and Seterus didn't have a loan number for my account. No one seemed certain who owned my loan and I was scared to death. It took 2 months for the transfer to come through and I paid the back mortgage to catch up. I found it odd that I couldn't set up automatic payments because I used a Mac Book Pro instead of a PC. Why should that matter? 
I noticed that my mortgage payment kept changing which frightened me. When I called Seterus, they transferred me around the bank and insisted that my insurance payments and taxes had changed. When I looked at my policies and tax statements, I didn't see the changes. My daughter was ill and I needed to work. I traveled a lot and didn't want to miss a payment and return home and find that I was in default. I kept paying. 
I talked to the insurance company Travelers in 2011 because I received a notice indicating that my deductible had been changed. We discovered that I had 2 policies for the same property. One policy which I had initiated and one policy from my mortgage company. I cancelled one of the policies and called my insurance policy. 
Seterus assured me that they were not collecting for 2 polices. They seemed indignant. I kept paying. I needed to focus on earning money. I felt that it was something that I could straighten out later. During the Christmas season  of 2011, I went through all of my records and found the two policies. I called Seterus and Travelers and insisted on canceling. I wrote them both and set my deductible at the previous rate.  
Seturus ignored my letter as well as my calls. They insisted on sending Travelers the money for the 2 policies. After 3 letters throughout the year informing them of the error, I insisted on paying my own insurance and taxes. 
In December of 2012, I paid my insurance policy and my taxes and wrote Seterus and informed them of such. In January 2013 Seterus paid the policies 3 times out of an escrow account. The money was returned to them because the policy was paid. The property taxes was returned to them. Seterus acknowledged on the phone that the money  had been returned by they did not credit my account. 
I had never death with such unprofessional people. They would hang up the phone in my face and refuse to answer questions. They threatened to take my house if I didn't pay their demands. I continued paying my principal and interest payments monthly and enlisted the support of my Congressman. 
The legislative assistant at the Congressman's office called and they were just as vague with her. She kept asking if I had missed payments and didn't remember. I pulled up my bank statement and show her that each month that I had faithfully made my payments. After two months of working with her and calling them to be kept on the phone all day. She closed my case and referred me to the Consumer Protection Bureau. She felt that I needed to pay them or face losing my house even though I did not owe them the money in question. 
I continued to write asking for accurate statements. They kept sending me priority and certified mail indicating that they would add the money that I had already paid for property taxes and insurance to my mortgage and refinance at a higher interest rate. 
I finally got an administrator from the insurance company to review the case. They cancelled the extra policy from 2 years before and sent me a refund check. I sent Seturus the refund check and a letter explaining where the money was from. I filed with the Consumer Protection Agency. 
The Consumer Protection Agency accepted Seterus statement that they had paid the insurance policy twice and that it was my responsibility to get the refund and they were not going to collect on insurance any longer since the policy was paid. They indicated that they offered to refinance my loan. Consumer Protection Agency closed the account and I appealed. 
After the Consumer Protection Agency closed the account. Seterus sent me another letter stating that they didn't have proof on insurance and was going to charge me $1500 for another policy. They were charging me $10 a month for each statement of my payments that they produced and $15 dollars a month for driving by my house to see if I still lived in it.  
I continued to make my monthly payment of principal and interest, paid my mortgage insurance for the year as well as my properly taxes. After Consumer Protection closed the account again in February 2014,  Seterus sent me a bill demanding $2300 for the current property taxes and insurance which they stated had been paid by them on my behalf. I sent them $830 since I had a receipt which indicated that the property taxes had been paid out of my account as well as the insurance. Once they received my letter, they sent me a bill March 2014 demanding $4000 in back fees or they would foreclose April 15,2015. I sent them 2 payments of $1,089 for a total of $2178 and demanded to know what the $830 was used for as well as the additional monies. 
I contacted the HAMP program and Seterus has refused to talk with us. I have received a case number and pursuing an accurate accounting of all charges and a refinance with a lower interest rate. At this point Seterus needs to give an accurate accounting and show that they paid no funds in 2013 for 2014 taxes and insurance and the payment made for taxes and insurance in 2012 for 2013 is a lie as well. 
If this wasn't happening to me, I don't know that I would believe it. I feel like a domestic violence victim. Seterus is Seterus IBM. I understand from reviewing the literature that they have the highest fees and the highest foreclosure rate in the country. When the Treasury Department called Seterus IBM initially they stated they couldn't record the call, only Seterus. On a followup call, they indicated that only one person was allowed to discuss my case and that person was not available. They refused to answer questions as to why I was not considered for a HAMP modification due to poor credit when credit was not a factor. 
I am not sure where this case will end or even  how it will end but I need clarification as to the "interest' charges which Seterus IBM is alleging that I owe. I need to make sure that other homeowners don't have to endure this nightmare. 
Darleana McHenry Ed.D.

 


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  • commented 2016-08-26 23:33:16 -0700
    To Alias
    My mortgage originated with PHH. I got behind on payments and PHH brought a suit against me. At that time I only needed to pay 7,500.00 to reinstate. I was unavailable to handle legal matters at the time; so an attorney was hired to represent me in court and prevent a summary judgment if possible . This first hearing was in November of 2015. The summary judgment was not granted at that time and the matter was “tabled”. In the mean time I receive a letter from Seterus dated March 10th informing me of the transfer of service effective March 1st. Why would Seterus or anyone for that matter be willing to service a debt that already has been turned over to the courts?. That was my question then, and my gut feeling has been telling me why all along. My case has come back up for a status conference call a couple times since and thankfully the court has still denied the summary judgment. I have been getting back on financial track and my business is showing profit. I am also available to be active in this process with the courts. As it stands now I am 14,000.00 behind and my attorney has already received 8,000.00 and wants more. In response to Alias’ comment “Seterus bought a stolen car.” Not only stolen but it doesn’t run and is likely to be impounded. That is if Seterus is unwilling to consider an offer or allow a loan modification. Greg T.
  • commented 2016-08-09 22:30:49 -0700
    Hi Darlena,

    Send Seterus a letter requesting ALL the above information. They have a short time frame to respond with it. I am a previous employee and this is bad, bad, bad…and very common, unfortunately.
  • commented 2016-02-14 12:32:32 -0800
    Same problems here. They are not even posting amounts in the correct debit or credit. They just took $3669.00 from our escrow for what they say is unpaid, that is 26 months, no way. Has to be the their errors in posting. None of the care over numbers from year to year match. They have control of my home, where can I get some justice?
  • commented 2016-01-12 20:14:11 -0800
    I am currently dealing with Seterus. My father refinanced our family home which is held in trust back in 2009. The loan was sold to Chase and after Chase entered into a settlement with multiple states to forgive borrowers which fit a specifics criteria (my dad did) Seterus suddenly began servicing it and fraudulently reassigned the deed. My father, after being harassed and threats of losing his home, [and served with documents appearing to be (but were not) documents of trustee sale of our family property since 1976] hung himself in his closet where his body was undiscovered for days [i live across the country]. These people are ruthless and as I investigate I find the individuals at the top of the pyramid over there are also officers/executives/agents for banks like JP Morgan Chase, Wells Fargo and the Federal National Mortgage Association which is most likely why they are able to violate the law without consequences as there are conflicting government agencies that provide oversight and no doubt are having internal pissing matches while violate the law, commit fraud and profit enormously off it at both ends. It’s mind blowing that it’s happening and as hard as I am trying I have little hope they will be exposed and punished. It would take an insider with vast knowledge to become a whistle blower if any of us hope to see justice served.
  • commented 2016-01-05 07:19:15 -0800
    Our nightmare began the day we sign for the house in 2002 . GMC did the bait and switch and we were paying 400 dollar PMI. The very next year , I called a different bank and was approved for a point interest cheaper and no PMI. Yay , you would think. They immediately sold the loan back to MERS. Then we were transferred to CITI as loan servicer. Nightmare got worse. Citi was not applying our on time payments at all. My husband suffered a heart attack and the same year he lost one of his jobs. I applied for a loan modification. All the time never being late on our payments . The people at Citi told us we had to be late , to qualify and to miss 1 month. Then I had to make a period of adjusted temporarily payments of 700 while the Hamp loan was being processed. After them losing documents , etc we finally got our hamp approved. Night mare really began. We were due to make the first payment in May 2005. It also said to pay escrow upfront to lower the payments on chart which was 693. Which we didn’t notice they had attatched 10, ooo to equity of home. Which made our lower interest into a higher payment. Regardless, we signed and did it we sent to checks on April 17 . One for the rent of 693. the other for 2400 clearly marked escrow only. . The checks were for the start of May 2005 remod.
    the very first month , the put the payments on additional escrow , additional principal and charged us a 300 dollar late fee. It rolled ball from there. To the point of we put it our home in chapter 13 to protect it , while I contacted several attorneys. I even contacted legal aid, and attorney generals office. They were so involved suing class actions against these banks nobody would help us . In 2o14 , we decided we were fighting over a mortgage that was going to outlive us. We were fighting for a house that needed roof repair. It was too much to deal .. we walked a way. They can have our home .. It will now cost them a new roof, a new front porch , and not so good neighbor hood. I think OBAMA had a good plan , but these bailouts etc were never regulated. The banks became bigger thieves. Attorneys did not even understand the remodificaitons . the legal bindings of them etc. There were no repruccisons of Mers scandal. MERS were a bunch of stockholders that didn’t even have an office or real people .. Probally do not even know where the actual note is . But we don’t care , they can have it .. GOD BLESS THEM
  • commented 2015-08-31 13:01:30 -0700
    Please I have tried my best with this company. What is the address to send correspondance and the attention name. I have send letters to the address in Beaverton, Or. They will not give me a name to send correspondance to.
  • commented 2015-08-31 12:55:26 -0700
    Please we are experiencing the same thing. How are we going to all band together and get them out of business. Please I need help I am about to loose everything even though I make paymenys. What can we do?
  • commented 2015-03-30 14:29:50 -0700
    before you pay them off ,,,,,, consider this.
    learn what a conditional offer to pay is.
    craft your offer, put conditions in it, they will default on the offer if you craft it correctly and your default provisions kick in. example
    .
    “due to the large amount of money involved,,,,,, I need to be certain the payoff funds are being made the party entitled to receive them ,,,blah blah blah,,”" look up the state code for “offer -acceptance, discharge of debt” "refusal of offer to pay debt is discharged to the extent of the offer to pay…. " etc .
    then recraft it, then recraft it again. do not make it 20 pages,,, make a request for full summary of account per the state equivalent of ucc ,,, I think its 2-910 but don’t quote me on that…
    send it certified mail, with notary mailing services, we should be doing this with any one,,, ANYONE making a claim against us!
  • commented 2015-03-30 14:23:23 -0700
    Its all fraud, all of it from inceptions. ask them "where the money came from that you were allegedly loaned? "
    seterus bot a stolen car so to speak, and they have no standing in the matter to bring suit from any alleged "owner’ “holder” etc. seterus knows this or should have known it.
    there has been no loss on their part, they have no standing, no standing no cause for complaint.
    the company directors men/women, without title, stripped of any masks are fully liable to you as they are now causing YOU harm. look up the banking regs, do that homework now not when they serve papers for a foreclosure complaint. go listen to the talk calls regarding these institutions and how to deal with them . you can find it!
    no phone calls, all written correspondence only, all certified mailing with third party affidavit of mailing services. stop waiting for them to pounce on you, that is their business model. they do not want your loan they want your house and the mortgage insurance. create defensive paper trail. do it courteously, politely and in good honor. learn what an affidavit is and does, put teeth in it by including default provisions, it could then be used as admissible evidence of fact and could be used in court if necessary.
  • commented 2015-02-25 20:24:39 -0800
    have the same thing going on with them right now, mystery escrow they paid taxes and insurance, hit me for $3,000.00 then jacked or payment up. we have had this account in dispute for a year almost the whole time they have been servicing our loan for Fannie Mae.
    now I get a notice from a layers office and a letter from seterus saying that my loan has gone to their foreclosure dept , they sent my mortgage payment back to me,,, really. jokes on them I sent them a certified ck for $16,125.00 which is more than half of what I have left owed on the note.
    I have several calls to make and will be collecting similar complaints to show cause with agencies I contact to have them investigated for unethical practices and fraud.
    I will be taking a home equity line to pay off the note and tell seterus were to go
  • followed this page 2015-01-14 11:47:52 -0800
  • published this page in Share Your Story 2014-04-12 17:54:23 -0700