• Report: #143113

Complaint Review: Midland Mortgage, Midfirst Bank

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  • Submitted: Tue, May 17, 2005
  • Updated: Thu, September 15, 2005

  • Reported By:Hot Springs Arkansas
Midland Mortgage, Midfirst Bank
999 NW Grand Blvd Ste 100, Oklahoma City, Oklahoma U.S.A.
  • Phone: 405-426-1400
  • Web:
  • Category: Banks

Midland Mortgage, Midfirst Bank BIGTIME ripoff pay attention you are being ripped off too Oklahoma City Oklahoma

*Consumer Comment: Midland Mort. is a SERVICER

*Consumer Comment: Midland Mort. is a SERVICER

*Consumer Comment: Midland Mort. is a SERVICER

*Consumer Comment: Midland Mort. is a SERVICER

*UPDATE EX-employee responds: FHA and VA

*Consumer Suggestion: My loan is in Texas!

*Consumer Comment: Midland Mortgage complaint

*Author of original report: Midland Mortgage yes, they're the same ones

*Consumer Comment: My mortgage was bought by MIdland Is this the same company.

*Author of original report: RE: not so, Janet in Arkansas, the "servicer" is bound by ACT 554

*Consumer Suggestion: Have you read your mortgage document?

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I don't even know where to begin this is such a convoluted story and takes so many twists and turns.

Let's just say that about 3 years ago as I began to really read about banking and money and the Federal Reserve, something really began to stink with the mortgage industry... at least it was worth investigating, right? I mean, let's face it: your money is one of the things we are ALL interested in!

We were falling behind in our payments because well, as you know people get into trouble. We overextend ourselves and before you know it, you are digging yourself in even deeper.

We consolidated some debt and got a 2nd mortgage (bigtime mistake!) and then we had 2 MORTGAGES!! Boy oh boy was I sorry I ever did that. But that's another story. THIS story is about Midland.

I did some digging and guess what I came up with? I found out the bank is involved in fraud. BIG SURPRISE, huh? It's true, and it probably true for you too if you have a mortgage, with Midland or any other 'lending institution'. It's all a trick.

They TRICK you into thinking you got a loan. It's all in the bookkeeping entries. Most CPA's don't even know this. AND bank auditors, bank presidents, judges, lawyers and sheriff's all stand to gain when the bank forecloses on you. Let me give you my case just as an example.

Let's say that the "servicing" rights to your 'loan' are sold.

Midland is a "servicer" according to the Securities and Exchange Commission. One of the offices is in Little Rock and I had emailed a guy there a few nights ago and he called me back on Monday (yesterday). I asked him what 'servicers' do. He said they collect mortgage payments. Now I suspected that they only collect them, but SEND them somewhere else.

Have you ever seen your PROMISSORY note since the day you signed it? I'll bet not. I saw mine because the lawyers showed it to me. VERY RARE sight. Guess what? It was stamped with two rubber stamps that said, "PAY TO THE ORDER OF" and there was another bank's name there. And ANOTHER stamp the very same wording to yet ANOTHER bank. Very curious!

Anyway, as it turns out, this is what I believe has happened. Midland is JUST the servicer. They collect payments and IN TURN send them to the ACTUAL owner of the promissory note. This particular bank has no equitable interest, meaning, they have put no money in your house and have NO ASSOCIATED loss, if you 'default'. Now here's where it gets interesting.

Midland Mortgage decided to foreclose on us. And they did so OVER A YEAR AGO. They did NOT HAVE LEGAL STANDING TO DO SO, because they are a mere 'servicer' of the mortgage. They have no equitable interest (no risk of loss).

What am I doing about it? I'm going to challenge them on it. I have a lawyer (yeah, I held my nose and hired one) but it turns out he knows less than I know, so I'm more or less leading him by the hand on this.

Oh yeah, one other thing: if your bank forecloses on you, GO TO THE 'SALE'!! If they don't have the ORIGINAL NOTE, they can't foreclose and you can sue them over it. NO NOTE: NO SALE.

Check out McCay V. Capital Resources, Arkansas Supreme Court, 1997. If I'm lying, I'm dying. Stay tuned... this story ain't over yet...

Queen
Hot Springs, Arkansas
U.S.A.

This report was posted on Ripoff Report on 05/17/2005 05:56 PM and is a permanent record located here: http://www.ripoffreport.com/r/Midland-Mortgage-Midfirst-Bank/Oklahoma-City-Oklahoma-73118/Midland-Mortgage-Midfirst-Bank-BIGTIME-ripoff-pay-attention-you-are-being-ripped-off-too-143113. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
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Updates & Rebuttals

#1 Consumer Comment

Midland Mort. is a SERVICER

AUTHOR: Queen - (U.S.A.)

The fact that Midland Mort. OR Midfirst Bank has no offices in Arkansas is NOT the issue. Midland Mortgage is a SERVICER....NOT THE LENDER OR OWNER OF THE NOTE.
Check out Cambridge Mort. V. Freddie Mac (1988). The BK court upheld Freddie Mac's contention that the notes Cambridge was servicing was NOT 'property of the estate'. Cambridge had gone into Chap. 11 reorg. and was claiming the notes they were servicing was THEIRS. The bk court agreed with Freddie Mac. The SERVICER has NO EQUITABLE INTEREST... meaning, they aren't "injured" if someone doesn't pay their mort. note. Further, at least in Arkansas, this means MIDLAND MORTGAGE CANNOT LAWFULLY FORECLOSE, since they have no equitable interest. They are committing FRAUD if they do. The lawyers doing Midland's dirty work for them were trembling at my court hearing on 8-15. They were very afraid I was going to pull a rabbit out of my hat.

Secondly: My mort. was a FEDERALLY RELATED MORTGAGE. Look up Title 12, Banks and Banking. If yours is a Federally related mortgage (see the definitions in Title 12 as well) then if the OWNER OF THE NOTE (possibly Fannie Mae as in my case or other GSE, government sponsored enterprise) must tell the SERVICER to foreclose and the servicer must GET AN ORDER FROM THE SEC. OF HUD TO FORECLOSE, OR BE APPOINTED A FORECLOSURE COMMISSIONER. End of story. They can't foreclose without it. BUT, they most always do anyway. You are screwed if you don't catch them at their fraud.

Thirdly, I had made FOIA/PA requests of HUD in Washington, SEC in Little Rock, Washington, D.C. and other places around the nation. Nobody had any documents responsive to my request. In other words, none of these folks knew of any 'order to foreclose' and nothing about 'midland being appointed a foreclosure commissioner'. Then the lawyer testified at the trial that that part of Title 12 had been repealed. What a liar. They were doing everything they could to cover their butts.

DO YOUR RESEARCH. It's the only way you will catch them red handed. And hopefully you'll catch them before they do you in.
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#2 Consumer Comment

Midland Mort. is a SERVICER

AUTHOR: Queen - (U.S.A.)

The fact that Midland Mort. OR Midfirst Bank has no offices in Arkansas is NOT the issue. Midland Mortgage is a SERVICER....NOT THE LENDER OR OWNER OF THE NOTE.
Check out Cambridge Mort. V. Freddie Mac (1988). The BK court upheld Freddie Mac's contention that the notes Cambridge was servicing was NOT 'property of the estate'. Cambridge had gone into Chap. 11 reorg. and was claiming the notes they were servicing was THEIRS. The bk court agreed with Freddie Mac. The SERVICER has NO EQUITABLE INTEREST... meaning, they aren't "injured" if someone doesn't pay their mort. note. Further, at least in Arkansas, this means MIDLAND MORTGAGE CANNOT LAWFULLY FORECLOSE, since they have no equitable interest. They are committing FRAUD if they do. The lawyers doing Midland's dirty work for them were trembling at my court hearing on 8-15. They were very afraid I was going to pull a rabbit out of my hat.

Secondly: My mort. was a FEDERALLY RELATED MORTGAGE. Look up Title 12, Banks and Banking. If yours is a Federally related mortgage (see the definitions in Title 12 as well) then if the OWNER OF THE NOTE (possibly Fannie Mae as in my case or other GSE, government sponsored enterprise) must tell the SERVICER to foreclose and the servicer must GET AN ORDER FROM THE SEC. OF HUD TO FORECLOSE, OR BE APPOINTED A FORECLOSURE COMMISSIONER. End of story. They can't foreclose without it. BUT, they most always do anyway. You are screwed if you don't catch them at their fraud.

Thirdly, I had made FOIA/PA requests of HUD in Washington, SEC in Little Rock, Washington, D.C. and other places around the nation. Nobody had any documents responsive to my request. In other words, none of these folks knew of any 'order to foreclose' and nothing about 'midland being appointed a foreclosure commissioner'. Then the lawyer testified at the trial that that part of Title 12 had been repealed. What a liar. They were doing everything they could to cover their butts.

DO YOUR RESEARCH. It's the only way you will catch them red handed. And hopefully you'll catch them before they do you in.
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#3 Consumer Comment

Midland Mort. is a SERVICER

AUTHOR: Queen - (U.S.A.)

The fact that Midland Mort. OR Midfirst Bank has no offices in Arkansas is NOT the issue. Midland Mortgage is a SERVICER....NOT THE LENDER OR OWNER OF THE NOTE.
Check out Cambridge Mort. V. Freddie Mac (1988). The BK court upheld Freddie Mac's contention that the notes Cambridge was servicing was NOT 'property of the estate'. Cambridge had gone into Chap. 11 reorg. and was claiming the notes they were servicing was THEIRS. The bk court agreed with Freddie Mac. The SERVICER has NO EQUITABLE INTEREST... meaning, they aren't "injured" if someone doesn't pay their mort. note. Further, at least in Arkansas, this means MIDLAND MORTGAGE CANNOT LAWFULLY FORECLOSE, since they have no equitable interest. They are committing FRAUD if they do. The lawyers doing Midland's dirty work for them were trembling at my court hearing on 8-15. They were very afraid I was going to pull a rabbit out of my hat.

Secondly: My mort. was a FEDERALLY RELATED MORTGAGE. Look up Title 12, Banks and Banking. If yours is a Federally related mortgage (see the definitions in Title 12 as well) then if the OWNER OF THE NOTE (possibly Fannie Mae as in my case or other GSE, government sponsored enterprise) must tell the SERVICER to foreclose and the servicer must GET AN ORDER FROM THE SEC. OF HUD TO FORECLOSE, OR BE APPOINTED A FORECLOSURE COMMISSIONER. End of story. They can't foreclose without it. BUT, they most always do anyway. You are screwed if you don't catch them at their fraud.

Thirdly, I had made FOIA/PA requests of HUD in Washington, SEC in Little Rock, Washington, D.C. and other places around the nation. Nobody had any documents responsive to my request. In other words, none of these folks knew of any 'order to foreclose' and nothing about 'midland being appointed a foreclosure commissioner'. Then the lawyer testified at the trial that that part of Title 12 had been repealed. What a liar. They were doing everything they could to cover their butts.

DO YOUR RESEARCH. It's the only way you will catch them red handed. And hopefully you'll catch them before they do you in.
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#4 Consumer Comment

Midland Mort. is a SERVICER

AUTHOR: Queen - (U.S.A.)

The fact that Midland Mort. OR Midfirst Bank has no offices in Arkansas is NOT the issue. Midland Mortgage is a SERVICER....NOT THE LENDER OR OWNER OF THE NOTE.
Check out Cambridge Mort. V. Freddie Mac (1988). The BK court upheld Freddie Mac's contention that the notes Cambridge was servicing was NOT 'property of the estate'. Cambridge had gone into Chap. 11 reorg. and was claiming the notes they were servicing was THEIRS. The bk court agreed with Freddie Mac. The SERVICER has NO EQUITABLE INTEREST... meaning, they aren't "injured" if someone doesn't pay their mort. note. Further, at least in Arkansas, this means MIDLAND MORTGAGE CANNOT LAWFULLY FORECLOSE, since they have no equitable interest. They are committing FRAUD if they do. The lawyers doing Midland's dirty work for them were trembling at my court hearing on 8-15. They were very afraid I was going to pull a rabbit out of my hat.

Secondly: My mort. was a FEDERALLY RELATED MORTGAGE. Look up Title 12, Banks and Banking. If yours is a Federally related mortgage (see the definitions in Title 12 as well) then if the OWNER OF THE NOTE (possibly Fannie Mae as in my case or other GSE, government sponsored enterprise) must tell the SERVICER to foreclose and the servicer must GET AN ORDER FROM THE SEC. OF HUD TO FORECLOSE, OR BE APPOINTED A FORECLOSURE COMMISSIONER. End of story. They can't foreclose without it. BUT, they most always do anyway. You are screwed if you don't catch them at their fraud.

Thirdly, I had made FOIA/PA requests of HUD in Washington, SEC in Little Rock, Washington, D.C. and other places around the nation. Nobody had any documents responsive to my request. In other words, none of these folks knew of any 'order to foreclose' and nothing about 'midland being appointed a foreclosure commissioner'. Then the lawyer testified at the trial that that part of Title 12 had been repealed. What a liar. They were doing everything they could to cover their butts.

DO YOUR RESEARCH. It's the only way you will catch them red handed. And hopefully you'll catch them before they do you in.
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#5 UPDATE EX-employee responds

FHA and VA

AUTHOR: H - (U.S.A.)

V, It is true Midland services MOSTLY VA and FHA loans, but they do have a number of conventional loans as well.
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#6 Consumer Suggestion

My loan is in Texas!

AUTHOR: V. - (U.S.A.)

I was told by Midland Consumer service rep that they only handle VA and FHA Loans. These offices are located in OKC, OK but they service mortgages all over the country!
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#7 Consumer Comment

Midland Mortgage complaint

AUTHOR: Ray - (U.S.A.)

I was just reading some of these complaints and you mentioned that there was an office for Midland mortgage in Arkansas? They are based in Oklahoma City and actually have no offices in Arkansas. They have a sister company called Mid-First bank, but even Midfirst does not have any locations in Arkansas. I don't work for midland and I am not affiliated with them in any way. I just live in Oklahoma and know they are just a local business in Oklahoma. Just wanted you to know. Thanks

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#8 Author of original report

Midland Mortgage yes, they're the same ones

AUTHOR: Queen - (U.S.A.)

You better get yourself a very smart attorney who is schooled well in real estate law, or know it yourself.

You MUST be notified in writing that a different company will be 'servicing' your "loan" (that too is a misnomer). They MUST comply with that or they can be fined, bigtime.

Go to www.msfraud.org and check out how they screw people over on the 'servicing' issue.
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#9 Consumer Comment

My mortgage was bought by MIdland Is this the same company.

AUTHOR: Gabrielle - (U.S.A.)

My mortgage has been bought by Midland Mortgage Oklahoma City, Oklahoma. Is this the same company. Not one piece of paper from them even to introduce who they were and that my mortgage was being bought by them. The only thing I know is that my payment was to be made to them. Can you give me an idea what kind of lawyer I should be looking for? Thanks for your input on Midland
because at this point we were told they are going to foreclose and we ended with bankruptcy to save a little face, if you can understand.
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#10 Author of original report

RE: not so, Janet in Arkansas, the "servicer" is bound by ACT 554

AUTHOR: Queen - (U.S.A.)

I respectfully disagree with Janet on this. I DO agree with her that it is a 'common' practice. Janet are you an employee of Midland? You should know that the 'servicer' must be licensed with the SEC. And in Arkansas, the "servicer" is bound by ACT 554 of the 2003 Arkansas Legislature. And as such they must abide by all the rules and regs.

According to Cambridge Mortg. V. Freddie Mac (1988) the "servicer" has no equitable interest in the notes OR SUBJECT PROPERTY. The FEDERAL Bankruptcy court decided on behalf of Freddie Mac, because they OWNED the notes the Cambridge was 'servicing'.

This is something I have just found out.

Midland/MERS is going to meet up with a pretty powerful argument that THEY HAVE NO EQUITABLE INTEREST in the note, because THEY ARE NOT THE OWNER. Period. End of discussion.

Whatever court this comes up before will have to decide if the FED. Bankruptcy Court was RIGHT or not.

They must prove:
a.) They OWN the note
b.) They OWNED IT at the time of foreclosure
b.) They have 'equitable interest'.
c.) The SEC does not have jurisdiction over them.
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#11 Consumer Suggestion

Have you read your mortgage document?

AUTHOR: Julie - (U.S.A.)

A standard mortgage contains the following clause:
"Sale of Note, Change of Loan Servicer" which allows the sale of the note/mortgage to another entity complete without regard to the borrower's opinion or knowledge.

It is common practice and is completely allowable for the servicer to foreclose on the loan. The servicer is paid a fee and acts as an agent for the "holder/owner" of the note/mortgage. The note/mortgage you signed when you bought the property gives them express permission to transfer the loan.

It does not matter who services the loan, if you are behind, you are behind, and they can foreclose. Trying to find a loophole like this will give you more time, but the sale would not be reversed based on your claims.

Mortgage companies almost never profit from foreclosure. On average, Midland loses $3000 for each foreclosure they complete. That is completely not worth it.

In addition, if they foreclose and a third party buys the home at foreclosure sale, they are barred by state/federal laws from keeping the proceeds. So after their loss if offset in the foreclosure, they would be required to give the borrower the remaining proceeds.

As a servicer, Midland does indeed have legal standing to foreclose according to the terms and conditions of your mortgage.
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