Posted on 10/13/2010 9:30:33 PM PDT by Ernest_at_the_Beach
"Robo-signing," as the National Association of Attorneys General puts it, occurred when document signings by people in mortgage providing agencies contained procedural defects, such as signing outside of the presence of a notary public or signing without having the knowledge of the facts asserted in the documents.
The investigation occurs as the housing market, already walking the tight rope, is hit by a wave of judicial actions that led to Ally's GMAC
( GJM - news - people ) extending its investigation of foreclosure procedures to all 50 states. GMAC is freezing repossessions in 23 states where court supervision is required, in tandem with JPMorgan Chase ( JPM -
news - people ). Bank of America ( BAC - news -
people ) had decided to freeze all its foreclosures on October 8, while on October 6, Wells Fargoaccepted to pay about $24 million to eight states to mitigate foreclosure problems because of "allegations of deceptive marketing practices at their home loan unit" according to Reuters.
(Excerpt) Read more at forbes.com ...
JPMorgan expands review of foreclosures to 41 states, doubles number of cases to 115,000
Let me guess, this crisis must be solved by government intervention subsidized by tax payers. Rahm isn't the only one who sees a crisis and seeks to make a cure which is worse than the disease.
Why do I see bipartisan support for a “remedy”
Because many people in foreclosure also vote.
In many cases, absolutely.
Haven't you been following this? They make payments, , but in many cases the ownership has changed hands so many times there is no telling who the correct recipiant of the mortgage should be.
It has gotten pretty bad.
How 2 civilian sleuths brought foreclosure problems to light
So, too big to fail now includes too big to obey the law?
Looks like they did things a little sloppy.
Oh yes indeed the 'tax payers' will be on the hook for this scam long term. But how can lenders foreclose on mortgages they cannot demonstrate legally exist?
Fortunately I am not buying a mortgage, but I got to tell you that I would be quite discomforted if I had a mortgage and found out that legally there was NO clear title/deed to be found, but yet I was obligated to pay that monthly mortgage payment.... I sure could not sell the property if there was no paperwork anywhere to demonstrate my ownership.
Yep... the same thing happened in the 1990s with the mortgage portfolios of the failed S&Ls. After the Resolution Trust Corporation got their hands on the loan documents, quite a few borrowers had payments that didn't post to the loan balance sheets. The problem only got worse as RTC spread the mortgages around to third party purchasers (like GE Capital Asset Management, IIRC).
Foreclosures in some states often couldn't go forward because of missing assignments and promissory note endorsements. Sounds like the current mess is the same scenario - on steroids.
that is a different issue.
If liens on property are not recorded correctly it could trickle to the tax base.
remember to forclose you must establish you are the proper party plaintiff. The burden is on the plaintiff. no proof then no suit.
The banks have been forging and lawyers have been lying to the courts.
this is beyond sloppy. This is outright fraud.
rembmer MERS has no employees but somehow they record all documents and avoid paying all document stamps. (like the rest of us have to pay)
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.