Posted on 10/05/2010 3:51:19 PM PDT by tobyhill
Pressure is mounting on U.S. banks to halt more foreclosures amid widespread allegations that loan servicers failed to verify legal documents in what could be hundreds of thousands of cases.
Members of Congress from California wrote to the heads of the Justice Department, the Federal Reserve, and the Comptroller of the Currency on Tuesday, requesting that they investigate the foreclosure processes of banks under their purview for "possible violations of law or regulations."
(Excerpt) Read more at money.cnn.com ...
“Show me the example where foreclosing on a house broke the law?”
There are tens of thousands of examples. JPMorganChase admitted their employees did not read the 56,000 foreclosure packages they processed. Those documents were submitted as legal evidence where they attested to having knowledge of the case and avowed to their accuracy.
Then there’s the mortgages where the banks cannot find the original paperwork because it was destroyed, but they claim it was lost.
Then there are the foreclosures which were done on homes the banks didn’t hold a mortgage on.
“No one is defending them but what they are doing for a couple mistakes”
yes you are. They broke the law and should be subject to RICO laws.
Those ‘deadbeats’ are now largely people who have become unemployed because of the economy. The economy is in this state because the govt (BO) wanted to slow it down, and the banks committed massive fraud.
Why are you defending these big banks who are largely run by socialists?
“Just because he signed off on 10,000 of these foreclosure doesn’t mean they were bad foreclosures.”
It means the bank committed a crime and the law was not followed.
Why do you think its ok for banks to break the law?
Don’t people think by now after we bailed out the banks that would stop the bankers from being greedy and not coming forward with phony foreclosure documents which have been forged.That in itself is FRAUD and all the bankers want their cake and eat it to just like the federal no reserve who has no reserves and has NO money but what they create from nothing.Americans are being robbed and played for fools daily by bankers and the greedy “us” government who got the country in this mess to BEGIN with.The American people sure aren’t the us governments girlfriend but they sure are the governments cash cow and slave.
How again is this the bank's fault?
The other 2 cases have yet to be judicated.
“If the Servicer wasn’t the banks themselves then I don’t blame the bank and the banks are not designed to protect everyone from bad middlemen. “
The servicer works for the bank. The banks are most certainly legally liable for everything the servicer does related to the mortgage being serviced.
“How again is this the bank’s fault?”
Because the contractor was working for the bank.
Sure but what percentage are problematic? This is laying the groundwork for another bailout. In the name of saving the borrowers, we will actually be......
BAILING OUT THE BANKS AGAIN!!!! This is like Obama beating up on Goldman—misdicrection—what a sham.
Then prosecute the perpetrator of the crime but there’s no need to reward people that deserve the foreclosure.
The quicker the banks can get the people out of the homes they couldn’t afford the quicker the economy will recover.
If there are no foreclosures then people don’t have to pay their mortgages.
Then the courts will rectify the situation and believe me, the people will walk away in pretty good shape.
It isn't a major problem because property recording is pretty strong, and I think it should stay that way.
I don't believe that people should ever get a free house because of a paperwork error, but I also believe the paperwork should be correct. The most likely outcome IMHO will be that for these MBS securities that have a pool of mortages, due diligence will be required to convince the courts just who it is that the money is owed to, and it will both cost time ( a couple of years) and money (a couple of percent) to perform that due diligence.
That will further drive down the value of the mortgage backed securities, since most of them are under water. In the meantime, the home won't get much maintenance, further impairing its value. It's a real mess.
In every state there are required notifications that go out to the homeowners of the bank’s foreclosure intent and then there’s remedies the homeowners can go through to make sure that their rights were observed.
All foreclosures should be on the correct property and the laws should be followed.
If forclosures are halted it will be the end of the American city. No one will pay property taxes if they aren’t paying their mortgages.
I bet in my county, 25% of the people would decide to stop making their house payments, spend the money on something else. Lorain County, Ohio.
Sounds like they have a cause of action but I’m not for rewarding the hundred’s of thousands of deadbeats for a mistake or two.
Neither am I. I don't think a permanent foreclosure halt would be even remotely justifiable. But, whether there is one, or there isn't, this is a big dollar issue.
Some of the commentary (check out Karl Denninger's posts at Market Ticker) discusses the record keeping problems. When a mortgage goes through multiple sales on its way to a pool, it's important to keep track of who really owns it. There are some other cases (not many, I know, but some) of multiple people claiming ownership of the original secured note. That's not good, either.
If you have a situation where someone can show up at court for a foreclosure order and get it without real proof of ownership, you are going to get a different sort of parasite looking to confiscate property--mark my words. This needs to be worked out... and I think it will be. Unfortunately, it will take time, and time is money. By the way, didn't the FED buy a trillion or so of these securities last year?
“Then prosecute the perpetrator of the crime but there’s no need to reward people that deserve the foreclosure.”
Sure, but is it any bank that you will allow to foreclose? Or should you limit foreclosure to the bank that owns the title? Many times the banks cannot prove they have a legal right to foreclose, which is why they are forging the documents.
I just want to see the example where the wrong house was foreclosed on?
Just because he signed off on 10,000 of these foreclosure doesn’t mean they were bad foreclosures.
Fake but accurate? Do you think perjury should be punished?
We agree. So here are a few real proposals that could be done if we had the will. Halt all foreclosures and let people pay what they can afford. Jail the lenders and legislators who got us ALL into this mess. Zeroize all debts so people can rebuild their credit. Cut taxes so people have money to spend and reignite the economy. Stop government spending by giving to the states all those things the Constitution says the federal government cannot do. Finally, issue a gold-based currency that can control inflation.
No Mortgage, Still Foreclosed? Bank of America Sued for Seizing Wrong Homes
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