Posted on 06/06/2010 6:42:28 AM PDT by Chunga85
(St. George, UT) June 5, 2010 – A court order issued by Fifth District Court Judge James L. Shumate May 22, 2010 in St. George, Utah has stopped all foreclosure proceedings in the State of Utah by Bank of America Corporation, ; Recontrust Company, N.A; Home Loans Serving, LP; Bank of America, FSB;
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The attorney’s for Bank of America promptly filed to move the case to federal court to avoid having to deal with the Judge who is not unaccustomed to high profile cases and has a history of watching out for the “little people” and citizen’s rights.
(Excerpt) Read more at kcsg.com ...
This should not be a big deal. In fact, this is how commercial real estate transactions were typically done in the days before regular banks started getting heavily involved in this type of financing.
So, government changing the rules after the borrower has long since signed the papers and then later defaulted is fair to the lender?
Don’t get me wrong - I have no love for lenders who broke laws (particularly the fair lending laws) to write loans. ON the other hand - a large chunk of the high-risk mortgages were written under pressure from the same governments that now are changing the rules.
How hard SHOULD this all be? A prospective borrower comes in wanting a loan (car, boat, or even home) - apply. If the bank believes you are a reasonable risk, they loan you the money with clear costs, penalties, and their protection in case you default spelled out. You sign the loan (agree to abide or don’t sign the loan.. .hello). YOu then choose to not make payments, or your situation becomes such that you cannot make the payment. The bank then exercises their rights as spelled out in the agreement that you signed.
While I know that not all lenders are that clear or moral, a lot of borrowers were not any more moral or honest.
If the secondary mkt is a govt controlled mkt it will diminish the opportunity for people to get into commercial real estate. If you go with unconventional financing it's only good in the short term, eventually you have to go to a bank to refinance. If the bank can't sell your non conforming loan they won't give you the loan.
I don't know how long the Utah law has been on the books. The issue isn't default but whether the BoA needs to be registered and have a physical office in the state so individuals can meet face to face on their default. The bank can make any decision it wants on whether to foreclose or not. The contract is still valid.
This was an example of BOA attempting to change the terms of the contract after purchasing the loan. My friend also went through the situation that has become all too common, where he couldn't talk to anyone who was authorized to do anything but take the payment. This is a common tactic of large corporations. They charge late fees, up the interest, file negative credit reports and refuse to talk to you. I intervened for a relative who was phone slammed by Alltel. They said they had a recording of her agreeing to the transfer of service. I told them to produce it and they couldn't. I told them we were challenging the bill. They said it had to be in writing. After that, they denied they ever received the letter. They refused to sign for a certified letter. I finally sent a letter to the state attorney general outlining the situation and sent a copy to them. Never heard from them again. Buncha crooks, and many of the mortgage lenders weren't any better.
I've known too many people in the mortgage business and too many crooks in the mortgage business. I've bought three houses in my life and walked away from one at closing because the lenders and mortgage companies charge so many fees at closing. At one, at closing, they tried to slip in a 1% loan origination fee. Just a little $800 fee they hadn't mentioned before. I told them I had never agreed to a loan origination fee in any of the preparation paperwork and wasn't paying it. They told me if I wanted the house I was going to pay it. I declined. They told me I'd have to pay all the other fees if I wanted to walk from the signing. It got a little testy after that, but I didn't sign, didn't pay the fees, and told them if my credit rating took a hit they'd be in court, as none of the loan application documents stated there would be a loan origination fee.
Know why BOA caters to illegals? Cause they're easier to screw.
Can THEY Prove Up A Note if asked?
Kudos to Judge Shumate
Taxpayers bailed them out...WHO Authorized It?
Not the Taxpayers!!!
YEAH!!!
Whomever Owns The Note, if it still exists in it’s true form, has to PROVE IT UP, UCC 3-501.
How about Strategic FRAUD by Wall Street?
Just a thought.
THEY are criminals!!! Pure & Simple
It’s about time someone tied THEIR Dirty hands!!!
Yes, but that’s exactly how commercial real estate was financed for a long time — before traditional banks and S&Ls were permitted to get involved in it. With all of the bailouts that have taken place in the banking industry over the last few decades (the S&L crisis of the 80s, the ongoing banking crisis, etc.), I’d make the case that the secondary market is government-controlled already.
I agree with your logic. If I make a loan and the loan is secured with property and then I sell the loan to some some else then I have been Paid for that loan. If the “person” who bought the loan fails to update the deed, there are SOL.
I certainly wouldn't rule that out....
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