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 ...
I like that idea. Null and Void all contracts and reenter them reading “pay only what you can afford”.
While you are dispelling all these myths for us maybe you can shed some light on this.
Oh...and one more. We need your expert opinion.
Karl Denninger does that on a regular basis, in excruciating detail.
Unless you want to try making the case that fraud, forgery and perjury are not "breaking the law".
Good Greif tobyhill.
The jig is up.
Maybe mortage banker gerbils can still find a real job.
Hope springs eternal.
If the bank officers violated the law then prosecute but to shut down the system only prolongs the inevitable and actually rewards the current deadbeats.
Right,the deadbeats that can’t even find the note holder of a loan who tried to pay and no one would allow them to pay.That’s not a deadbeat dude.This is what happened because the loans were being flipped so fast thanks to your buds on WALLY STREET.Homeowners were robbed by lawyers,bankers and wall/crook street.Where can you call to find a note when your socalled note holder won’t even let you speak to them nor pay?Another FR member trying to make sense of a crime that really happened in America and now banks are forging foreclosure notes while taxpayers bailed the bankers out and the bankers have really gotten the last laugh.Who’s the real DEADBEAT?People are clueless how banks are scamming people in America.FEE PLEASE CLUELESS/AIRHEAD!Are you and others that dumb that you would allow bankers to do this in America?I think so.
“Mistakes happen”?
When they happen in the tens-of-thousands, they’re not “mistakes” - they’re a pattern of criminal behavior.
Story right here on FR:
Bank Forecloses on Wrong House [BoA keeps being "Stuck on Stupid"]
“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.”
The banks have failed to give notice in many cases, attested to the judge they did, and then kicked the people out.
The banks are breaking the law, they have proven themselves to be corrupt time after time and yet you still give them the benefit of the doubt.
There was a case here in Florida where the lawyer was putting the homes in his name. The banks never read the documents so he got away with it for a long time.
Rectify the situation?
The way they rectified the GM bankruptcy, which robbed the senior bondholders, who should have been Number 1 in line for the company assets, to pay-off the UAW?
I don't believe you.
I wish they would wait until we buy our house. We have our eyes on a nice place for 800k which is affordable if we don’t pay it.
Love this Obama fella.
One the Mill attorney's thugs actually stole some of this man's property and was charged with Larceny Grand Theft which I'm sure you'll dismiss as an oversight.
Much to my delight the firm that put the brakes on the GMAC foreclosure machine (ICE Legal) has taken his case Pro Bono.
Now I am PISSED – Disabled Vet Evicted, Home Trashed Out, Property Stolen By Jack Booted Thugs
Here is a link with a few more cases. Several people have shared stories in the comment section — some are behind in payments, but several claim to be current.
http://finance.fortune.cnn.com/2010/09/23/bofas-unfunny-foreclosure-tricks/
> Show me the example where foreclosing on a house broke the law?
It’s more complicated than that. Denninger has been talking about it for some time (e.g. http://market-ticker.org/akcs-www?post=168266). I’ll give it my best try at an explanation.
It goes something like this: fly-by-night loan originators falsified documents to make borrowers seem creditworthy. These loans, rather than being kept by the originator, were sold and bundled into mortgage-backed securities (MBS’s). These securities were labeled AAA, but in fact were in many cases, based on fraudulent loans.
When the housing market blew, the investor was left holding the bag. Except for one thing...if the investor could show that the bundler of the mortgages (some of the big investment houses and banks) were committing the fraud by knowingly reselling bad (fraudulently originated) mortgages as AAA, then the bundler and originator would be libel for the loss (not the investor).
Some big money investors have recently requested documents through legal channels to establish the bone fides of the originated loans. Now here is where the conspiracy begins.
It is alleged (though not proven) that a bunch of the fraudulent documents have been destroyed and/or forged anew to cover up evidence of malfeasance.
However, in order to foreclose a property, it is these exact documents which must be presented to the court in order to establish ownership of the loan. For “whatever reason” (wink-wink-nudge-nudge), these documents are either missing or demonstrably invalid (forged?).
It thus seems that, in attempting to possibly cover up evidence of wrongdoing, the paper trail that establishes legal ownership of the mortgage is, in many cases, missing or invalid. And that is the cause of the halt on many of these foreclosures.
If you could manage to sue your alleged lender and get your hands on the Pooling and Servicing Agreement defined by the trust(s) your mortgage obligation landed in you would be pleased to learn that any amount received via credit default swaps, over-collateralization, and third party payments over and above the amount agreed to on the contract you signed at closing is due and payable to the borrower.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.