Tim Carter writes:

Subject: AURORA LOAN SERVICES IS BREAKING THE LAW!

If you are a struggling borrower, and you are with Aurora Loan Services, they will not help you, I lived in my home for 17 years and had a perfect track record, until the economy crashed, which impacted everyone, They did nothing to help me at all, they are suppose to do everything that they can to help, that is stated in President Obama's Federal Plan, I fall right on that line. If you are getting a loan modification, do not listen to them calling telling you to modify through them, I made that mistake, they do not want you to go to a attorney, they tell you that you have to pay an attorney, and you have to pay them, it is a trick, I work in the Real Estate Industry, and they are referred to as THE UNDER BELLY OF THE MORTGAGE INDUSTRY. DO NOT TRUST THEM, you can get more evidence from Rip Off.com, just type in Aurora Loan Services and just take a look at all the people they have screwed nationwide. These are the type of companies that gives America a bad name, these people have no heart or compassion, They foreclosed on my house, I have 3 kids, 12, 10, 3, do you think they understand , the only question they have is how come they won't help us daddy, President Obama said they would help us! They would rather loss money than make money, no wonder when the economy crashed they where the first one's with there hands out asking for taxpayers to help them, but guess what, they will not help you! Everyone who reads this, SPREAD THE WORD! AURORA LOAN SERVICES DO NOT FOLLOW THE RULES! GET A ATTORNEY!

Susan Gregory writes:

Subject: Aurora Loan Modification

I am sorry to hear of your difficulties with Aurora, however I have heard from several homeowners who successfully modified their loans with Aurora. I do not know your particular circumstances, but perhaps you did not qualify for the federal program. There are strict guidelines that must be met. That is why it is critical to learn the formula, fine tune your application and then submit it. You do not need an attorney to do this for you.

Tim Carter writes:

Subject: Aurora LOAN SERVICES IS BREAKING THE LAW!

Hello Susan, Thank you for replying, I am working with about 189 different people nationwide who have had the same problem, we are putting together a class action lawsuit against Aruora, I am going to post more comments from these other people, I would have had no problems if I had went to a Attorney.

Brian Brookman writes:

Subject: Another victim of Aurora loans

I was laid off in January. I have been trying for 6 months to get Aurora loans to modify my loan. They continue to reject my applications. They said I can not afford a discount on my payment- so they kept it at the full amount. Well, I can no longer make their payment at all. They would not even put one payment to the end of the loan. So, I am filing for bankruptcy... They are crooks!

Tim Carter writes:

Subject: Aurora Loan contributed to downfall of Lehman

Aurora Loan contributed to downfall of Lehman

An analysis of what contributed to the downfall of Lehman Brothers leads to Colorado.

Aurora Loan Services, a subsidiary of the Wall Street firm, became one of the largest players in "Alternative A" mortgages, which include loans approved without proof of a borrower's income.

Exposure to that troubled sector was a factor that drove the 158-year-old investment bank into bankruptcy this week.

"It was clear this eroded the stability of the company," said Byron Koste, director of the University of Colorado Real Estate Center.

Homeowners with subprime loans - made to borrowers with poor credit histories - and those with Alt-A loans have defaulted in record numbers, creating a crisis for businesses that specialize in those mortgages.

That kind of lending allowed many people to buy houses they couldn't afford.

The loans are pooled and packaged into bonds called mortgage- backed securities. But Aurora Loan Services was forced to stop originating those loans several months ago because "the investor base stopped buying" as the market dried up, said Peter Lansing, head of Denver-based mortgage banker Universal Lending.

Aurora Loan significantly scaled back its business earlier this year, cutting roughly 1,300 jobs, or half its work force. Lehman said it would consolidate those Colorado operations in Littleton and close centers in California, Florida and New Jersey.

Company officials have declined to comment, and it remains unclear what will happen to the Littleton office or the remaining employees.

Lansing said he receives at least one resume a week from former Aurora Loan Services employees in search of a job.

"They were a huge employer in the Colorado mortgage industry and were doing business across the whole country," he said.

Aurora Loan Services has filed several lawsuits in U.S. District Court in Denver over the past year and a half, claiming that companies from which it purchased mortgage loans breached the terms of their contracts.

After the bankruptcy filing, British bank Barclays agreed to a $1.75 billion deal to purchase Lehman Brothers' core U.S. business.

Tim Carter writes:

Subject: Aurora Loan Services - How Lehman Brothers Rips Off Homeowners

Not a day goes by when you don't hear of another Accredited Home Lenders Holding Co. (LEND) or New Century Financial Corporation (REIT) (NEWC) blowup. You know the mortgage industry is having a tough time when they resort to questionable billing practices to make money. I learned this first hand with Auroral Loan Services (aka Lehman Brothers LEH). Aurora Loan Services stopped sending me mortgage statements electronically last year and I wasn't receiving statements by mail either. However, due to the convenience of auto pay, I was comfortably paying my bills every month automatically. Then, out of the blue, I got a call from them. I unexpectedly found that the tax rate on my home went up. Not a big problem, only a few hundred bucks right? Wrong.

Because of this little change in taxes, Aurora Loan Services took my payment and held it "in suspense." Let me translate that for you. They held my payment and basically sat on it for 2 months - collecting interest on it - instead of paying down my principal and interest. Not only did they get the interest on my money, they also charged me 2 late fees (because they hadn't "received the payment")! Is this outrageous or what?

Being a techie, I checked Google for Auroral Loan Services hoping to get to their website. Instead I found a link to a RipoffReport on Aurora Loan Services. When I clicked through, I saw 85 consumer complaints filed against Aurora Loan Services on RipoffReport.com for the same thing that happened to me all related to "dishonest billing practices"!

So, what did they do with my money? And how are they getting away with it? After they "discovered" that they had been sitting on my money for 2 months, Aurora applied my payment entirely to paying down the principal on my mortgage. And guess what that means? It means they didn't apply the payment to the regular payment of interest + principal. That meant I would have to make an extra payment because the payment hadn't been made!

Not a problem right? Wrong. What happens if I don't do it? Late fees start kicking in! It's a snowball effect and it all started when they forgot that I had paid!

Why does Aurora Loan Services force homeowners to accelerate payments? Simple. All mortgage lenders today want to get paid faster because they see risk in the mortgage market. Unlike Accredit Home Lending and New Century Financial, they want to get paid sooner rather than later on their loans - and everyone knows that a dollar today is worth more than a dollar tomorrow.

What is the financial impact of applying my mortgage payment entirely to principal? Easy. On every mortgage payment, there is a principal payment and a interest payment. In the early years of a mortgage, most of the payment is applied to interest rather than principal. That means if you say owed someone $1000 per month, $300 of that would go to principal and $700 would go to interest. Since most of the money is going to interest, the lender isn't getting paid back their principal in the early years. It's only in the later years that this turns the other way around.

So what happened here? Auroral Loan Services applied my payment for my mortgage entirely to the principal. Basically the lender was asking me to accelerate my payment of my mortgage back to them - without rewriting the contract. Instead of paying say $300 to principal and $700 to interest, they were trying to take the entire amount of $1000 for principal. Accelerating the principal payment gets the lender paid quicker than the term of the loan that was agreed upon and they were attempting to change the term of the loan.

Serious fraud? Doing this to home owners one at a time is the reason why they've been able to get away with this dishonest practice. It's completely wrong. If you go to the bank to borrow money, you sign a contract and that contract stipulates everything from the interest, term, and payment amount. Changing it after the ink is dry is akin to tearing up the contract and rewriting it.

If you are a financial type, you know why Aurora Loan Services is doing this. Mortgage servicing companies serve thousands or tens of thousands of home loans and mortgages. Getting an extra payment from each loan would reduce the duration of their loan portfolio quite dramatically. (Duration = riskiness). An extra payment here or there isn't much, but on the scale they are doing it, I'd say many consumers are being squeezed. This constitutes a real serious fraud in the mortgage lending industry that is being perpetrated by one of the largest lenders in America. Aurora may sound like a small name, but they are owned by Lehman Brothers. It's understandable why Lehman doesn't use their own name to operate this business. After all, what kind of public company would want their name to be listed on Ripoff Report.com?