Posted on 04/05/2011 7:53:31 AM PDT by Chunga85
We've told you before about how big banks cut corners on paperwork over the last few years in order to speed struggling homeowners into foreclosure. And a "60 Minutes" report that aired last night offers fresh anecdotal reporting on just how irresponsible--and potentially fraudulent--the banks' practices were. Meanwhile, compelling video of a grandmother being evicted from her home by a SWAT team last week suggests the banks aren't slowing down their rush to foreclosure and eviction.
Banks profit by processing a vast number of homes into foreclosure as quickly as possible. But as "60 Minutes" details, many of the mortgages at issue were bundled and sold from one Wall Street investor to another during the housing boom, with scant attention paid among financial players to the actual underlying ownership documents. And as the foreclosures unwind in a slew of court proceedings nationwide, many banks have produced dubiously rendered legal documents that seek to shore up the ownership paperwork long after the original mortgage transactions were on the books. In some cases, financial institutions paid contract companies who employed an army of "robo-signers"—office workers who forged signatures on mortgage documents that were then used to initiate foreclosures.
(Excerpt) Read more at news.yahoo.com ...
butbutbutbutbut I thought Obama saved the world! /s
Can anyone explain how this is possible? How do you sell an asset for less than you paid for it and make money?
Is this really true? I have heard stories from LV NV about banks refusing to negotiate the home loan (markdown), foreclosing, and then putting the house on the market for almost nothing, bringing down the other house values (some they may own the loans to, fostering more forclosures for nothing.) On the surface it seems they are killing themselves. Are the loans insured or something?
Cut corners? Potentially fraudulent? They had document mills filled with high school grads forging bank officer signatures for $10 an hour on thousands of documents a day. Nothing “potential” about it.
Mike
Tell granny to pay her bills next time. It looks like she could easily cut back on the food budget and put the money to mortgage payments. I don’t care if Mickey Mouse signed the docs, no pay, no house.
“Banks profit by processing a vast number of homes into foreclosure as quickly as possible.
Can anyone explain how this is possible? How do you sell an asset for less than you paid for it and make money?”
Taxpayers!
The robo signers, their employers and the bankers that contracted with them should all be in jail. Especially those who were already in court and went out and forged documents. They were too stupid to back date the forged docs.
It is out and out fraud. The fact that they own the property is irrevelent. The law is the law and fraud is fraud.
the key tool banks use is the lost not reestablishment. However, under the law ONLY THE ONE WHO LAST HAD the real estate promisory note can recreate it. title can not pass.
then again the “blame the deadbeat” crowd will do what senile old judges do, ignore the law and take the house despite insufficient documents because most people EVEN IF THEY HAVE JOBS do not have the financial resources for a full blown appeal.
PS: Judges should have to disclose which ones own bank stocks or real estate investment companies.
Don’t be a Richard...
Don’t pay your property taxes and you’ll find out who really owns your house.
It seems a little excessive to use the SWAT Team to get Grandma out of the house she doesn’t own due to her failure to pay her mortgage. That being said, since the banks have the paperwork all messed up, why can’t the house be sold and the proceeds be put in receivership until the paperwork is fixed? Clearly those that don’t pay should not be able to get a free ride on what will ultimately the backs of the tax payers and the paying neighbors. Tie the assets up and the banks will get their acts together. Those that don’t pay their mortgages are hurting everyone.
Actually, its the economy overall and the taxpayer in particular who benefits from quicker foreclosure. Even that crook Geithner and the Commies in the WH know that the longer this lingers, the less quickly the housing industry recovers.
But of course Yahoo and AP incessantly write the same provcateur nonsense that gets the lefty academics all jittery on their shoes: Big Banks are raping innocent children!
Ok, but only if you promise not to be such “a cat, especially a kitten.” (1)
Source: (1) dictionary.reference.com
I haven’t read the details about how that works for awhile.
But it is true. Banks get a better deal on foreclosing than they do by modifying the loan. It has to do with how the HAMP program was set up. It helps with HOW they do the accounting of the transaction. I think they get to write the loss off, saving them on their taxes. That is why all those TBTF banks WANTED to buy up the big subprime lenders.
They made out like bandits.
I don’t get it. I have a freind who was foreclosed upon just this week; his loan was 350k. He told me I could buy it for 90k from the bank. Somehow the bank made money on that?
They get to write off the loss, the $260K difference.
Hanging onto it is too expensive, up keep, taxes, the bank won’t do all that. BUT the difference in the loan and the sell price does help them with reducing their taxes. Think of it as a tax deduction. It is not the sell price that makes them their money. And then they can go after the borrower for the rest, depending on the state. In some cases it can’t be discharged in bankruptcy.
I hope your friend didn’t have a recourse loan.
har har...
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