From Across the Pond | U.S. Mortgage Crisis: Where Does The Homeowner Stand?

U.S. Mortgage Crisis: Where Does The Homeowner Stand?

Over the past several years, the real estate industry in the United States has undergone a near collapse. House prices have been reduced so far by 25% nationwide due to the bursting of real estate bubble. The only vibrant part of the real estate market in the present economic recovery is the millions of foreclosed homes being sold to bargain hunters.

Some smaller States, the Dakotas, Nebraska, Alaska, have managed to avoid a big downturn in prices and hope to continue to do so. The big States most affected by the real estate disaster though, California, Michigan, Nevada, Florida, have lost more than one-half on home values in many major cities.

There is one aspect of the home mortgage disaster that no State will be able to avoid though. This involves the mismanagement and fraud relating to mortgage loans that largely occurred after the loan closed and was recorded in the local courthouse as a lien on the property along with the new deed of ownership. This unlawful activity affects in some substantial way the validity of the great majority of mortgages issued over the past 20-years throughout the country, whether the loan payments are current or delinquent.

The History

The Wall Street investment banks, beginning in the late 1980s, initiated and bought millions of home mortgage loans to be repackaged as Mortgage Backed Securities (MBS) and sold to investors across the country and the world. In order to have their investment offerings certified as safe by the investment ratings agencies, the Wall Street banks used almost exclusively Fannie Mae/Freddie Mac qualified mortgages on the assumption such loans have already undergone a serious scrutiny under federal regulations. In reality though the two quasi-government agencies did little to oversee the quality of the of the mortgage loans they were certifying, buying and selling.

The MBS marketing effort worked. The ratings agencies, paid huge fees solely by the investment banks, certified the Wall Street MBS offerings as mostly prime-grade investments. Congress, Fannie Mae and the Security and Exchange Commission greatly encouraged the MBS trade. Now, millions upon millions of these same mortgage loans are delinquent, some for longer than two years. Millions upon millions more American households still paying their mortgage have a property that is worth far less now than the mortgage loan balance.

It has been discovered that most of the loans in the Wall Street MBS packages and those held by Fannie Mae/Freddie Mac, in fact, did not meet federal regulatory standards, not even close. Just about every player in the real estate industry had a large hand in this fraud: mortgage lenders, banks, sellers, buyers, brokers, appraisers, lawyers, middlemen, federal and state agencies, Congress and last five Presidents. The result is a home foreclosure rate that is unheard of already and looking likely to accelerate.

But the same Wall Street banks that bought off the ratings agencies and the government in order to cheat their customers and got away with it could not stop themselves from also committing massive tax evasion and the blatant violation of state laws across the nation with almost all of their MBS offerings. This is the fraud that might place the majority of US home ownership titles into serious question.

Continue reading here…

The article goes on to discuss The Problems, Robo-Foreclosures: Only the Veil, REMICS, Securitization and Tax Evasion, State Recordation Fees/MERS and More Tax Evasion, The Present Posture, What Options are Available to the Homeowner?, Is Some Measure of Justice Possible?


23 Responses to “From Across the Pond | U.S. Mortgage Crisis: Where Does The Homeowner Stand?”
  1. l vent says:

    @losing my home in florida: Look at the assignment and look for a prior doc#, Does it match any other doc#? In mine it is attached or secured to nada, no prior doc# means bogus assignment, unsecured mortgage. The mortgage never existed. My recorder’s office confirmed this to be true. That is the securitization, the prior doc#. Did you find your pay-off letter yet from the second banker? Make sure you have your original pin#,(sneaky,sneaky) it tis on your deed. Good Luck.

    • l vent says:

      Look for a release of mortgage, it should be recorded not long after Orig. See what the prior doc# matches. It should match the orig. mortgage. Any lien below that release is cured by that release such as a mechanic’s lien,etc. There should be a for and in consideration for the indebtedness secured by the mortgage, letter because the second bank sold you your unsecured mortgage for a nominal fee as well as cured all liens with this payment and now therefore it is YOUR collateral, Thank God. KNOW ALL MEN BY THESE PRESENTS,….

    • losing my home in florida says:


      • l vent says:

        Sounds like your county recording is a bit different than mine. We go by grantor/grantee index. Not sure what Consideration means. Do you have your land title records? In my county and state you search for your recordings by PIN#. The PIN# is your Property Index Number, or your property tax ID#. It is on your property tax bill. Sometimes they issued a new pin# under our noses to cover-up the fact that our homes are paid for. The original pin# is on your deed for sure. You have to get to the origination of your loan in order to find out the truth (release of mortgage, pay-off of all liens). Sometimes they cleverly hid the origination via a new pin#. (sneaky, sneaky) Good Luck.

      • l vent says:

        You can copies of any of your doc’s at your county recorder’s office for a small fee. You can also get those notarized there. In my county we can print them off of the internet, but you can’t notarize them that way.

  2. ian says:

    Most NOD are sent by the servicer, acting on behalf of blahblahbank as trustee for xyz2001-1 mortgage backed securities. You have been paying the servicer, who is supposed to pay the investors in the trust. However, you have no idea,except for a 1pg printout from the servicer, as to where your payments went, if they went anywhere at all. That is why you need to demand the servicer’s remittance ledger, to see where your payments went. Otherwise it is all unsubstantiated hearsay, inadmissable in court. Because the servicer is not your creditor. And under the 2009 Federal Reserve Board interim opinion(now law) the creditor is the person who can account for the loan on their balance sheet. But wait, a trust doesn’t have a balance sheet. It is a “pass through”. So- who is your creditor? Find that out and you will understand the extent of this fraud.

  3. losing my home in florida says:

    I understand what you mean about the loans being paid off. but whom do you prove this to and how?? i told my husband about all this he is just sitting back and waiting to see what comes to light. so how was wells fargo able to modify my loan last year if theyya re the servicer. if they do not own my not how do they change the amount of my loan???

    • l vent says:

      You got a loan mod? Have you gone to your County Recorder’s Office on line or in person to see what is recorded? I have seen some of the stunts Wells Fargo has pulled. They evicted my brother-in-law from his townhouse in the name of the Homeower’s ass. He was not even late on his mortgage just his HOA fees. They never even filed a foreclosure but have his townhouse up for sale on the MLS. I would go back and look at the Origination of your loan and see what that looks like and when and how Wells Fargo came to own the loan. Servicers are no more than a debt collector and I do not know how they could have given you a loan mod except a fraudulent one. You should have your Original stamped and recorded Warranty Deed. Everything goes back to that original blue ink note. Where is it? WF had to pay off the original note if they now own it. Yet you probably never signed a contract with WF. Look for a release of mortgage in your rec. not long after Orig. Ask your recorder for a copy of the pay-off letter it will be from a second bank, not your original lender. No doubt any and all liens recorded were paid off by the second bank, get those released liens from your recorder, too. Now you have the proof you do not owe them any money. What do they have to prove otherwise? KNOW ALL MEN BY THESE PRESENTS……

      • losing my home in florida says:

        hi i vent. they called it an in house mod. because i did not qualify for hamp. it was a take it or leave it loan. either sign the paperwork or go into fooreclosure (she even mentioned short sale what a crock of sh-t , yeah i put my 20% down , lost all my equity and i’m going to give my house away? whatare they thinking) they added a cool 10k to the back of my loan, i heard that 10k was the norm across the board that has to be investigated as fraud because they had 10 months. i continue to pay until all my money was gone. i would call up to ask what the hold up was , they kept losing my paper work. everytime i called it was missing. it was awful.
        i have the original ink deed, it is also recorded with the county. the only assignment with the county is wells fargo from my closing. all my paper work from closing is all blank., exept the deed. i will definite learn alot from this, if anyone ever closes on a house always demand the same paperwork as the bank. everything signed in duplicate. notice they did it for the deed and nothing else. i woned a house in S. florida MERS was paid off, also all paper work blank. i will find my original house from 1991 great western bank loan. i guess they never planned, or should say they expected all this to happen that is why it is all blank so they can forge the info. geez talked about being mad. have a good day have to go to work. so could pay a reasonable mortgage for my family.

      • l vent says:

        @losing my home in florida: They are all very deceptive in what they do. They have screwed millions of people and they still are. They are doing anything they can to cover-up for their ORIGINATION fraud. It is pretty much the same types of stories across the country. Denied Hamp, offered a fraudulently induced loan mod for a non-existant loan, or Forebearance payments ,Deed-in-lieu, cash for keys, short sale, All equally criminal acts of fraud, just sneakier and more devicive. They are giving people a few choices to help to aid and abed them and cover-up their past and ongoing criminal activity. Homeowner’s can re-establish a false mortgage debt SLAVERY BURDEN for say-ever or CREATE A NEW CLEAR CHAIN OF TITLE SO THEY CAN STEAL YOUR HOME EASIER. I kind of liked the post on this website week or so ago entitled: Homeowner’s Motto for 2011: MODIFY, BUT ALSO NULLIFY! Check it out:

      • losing my home in florida says:

        looking at records now. under consideration 0 is listed. and no other assignments after wells fargo. confused what his all means. how do we not get hijacked. this info has to go viral. everyone needs to know. foreclossures need to stop

  4. l vent says:

    About the assignment, who is telling you that you owe them any money? Make them prove to you that you owe them money. No doubt your deed has been recorded paid since origination and YOU were charged a nominal fee for it, then, the mortgage was never secured to your deed at origination and a second banker secretly came along and charged YOU a nominal fee for your unsecured mortgage and YOU DO NOT owe anyone any money. Ask the rec. office for the pay-off letter from a second bank. Know all men by these presents….

    • l vent says:

      The above comment is for @losing my home in florida. I don’t know how it got up here.

      • losing my home in florida says:

        i vet, thanks i have wells fargo telling me to pay them yet they sold my my mortgage to an investor whom remains anonymous or the assignment would be with the county. how and when will this all be provenat we have a when we cant even get the 2 major tampa bay news papers to admit that we have a problem in this country. how many families have to go homeless while this is being uncovered. what can we do to get soem one to look ito this. i do not like being in limbo waiting for a mortgage mod. thanks

  5. l vent says:

    NO RECORDING OF NOTES should be considered a federal crime in itself. By not recording or assigning a note and using it as a Security Instrument to CONVEY PROPERTY RIGHTS OF OWNERSHIP which it is clearly NOT and clearly states that ON THE NOTE. That is Securities Fraud as well as DECEPTIVE PRACTICES which should be causing indictments to be dropped on these criminals by the thousands under the RICO ACT. MERS is another SHAM that was also used as a FAKE SECURITY INSTRUMENT that they FALSELY CONVEYED PROPERTY WITH. IF A NOTE WAS TO BE — USED AS A CONVEYANCE OF OUR PROPERTY IT SHOULD HAVE BEEN RECORDED AND SECURED AS SUCH TO PROTECT OUR PROPERTY RIGHTS . The NOTE is a PROMISE TO PAY a lender, and was NEVER INTENDED TO BE — USED AS A SECURITY INSTRUMENT TO CONVEY OUR PROPERTY RIGHTS. The note CLEARLY STATES IT IS AN UNIFORM INSTRUMENT, NOT A UNIFORM SECURITY INSTRUMENT that may legally be used to CONVEY PROPERTY RIGHTS. It also CLEARLY STATES that the NOTE IS A PROMISE TO PAY, THE ORIGINAL LENDER AND NO ONE ELSE.

  6. Hell NO - No More Bailouts says:

    The article state that “When fraud is used in an initial legal foreclosure proceeding, a second chance to foreclose is forfeited by law in most States.”

    Is this true in CA?

  7. leapfrog says:

    Excellent article! Loved it.

  8. Equity Free says:

    This pretty much covers the crises from the cradle to the grave . Many here are at the front of the line .
    I intend to distribute . Enough of their actions are unveiled , to get this line stretched from coast to coast .

  9. l vent says:

    There has NOT been a lien recorded against my deed in 19 years. My County recorder’s office told me that because of this, my house is paid for. I can live in it, sell it or I can do whatever I want with it. I would like to thank my original lender for selling me my home for a nominal fee and a second banker for selling me my mortgage for a nominal fee, though the mortgage was NEVER RECORDED AS A LIEN AT ORIGINATION. MY MORTGAGE WAS FRAUDULENTLY INDUCED AT ORIGINATION. GOD BLESS AMERICA..

    • losing my home in florida says:

      hi i vent i am very intrested in you opinion about assignments of mortgage not recorded with county. munie is not either. hernando county florida. the last assignment was wells fargo 5 years ago. my loan was sold is backed by fannie mae (some folks on foreclosure hamlet says fannie mae owns my loan? i think they own the right to pay out if i default????just a nurse sorry) i was told last year by wells fargo that my mortgage is owned by an investor. should that investors assignment be recorded with my county????? please let me know i will get an email when u respond thanks please are you foreclosure hamlet .com you can teach us alll alot

      • l vent says:

        There are strict laws about recordation in every state. All County Recorder’s offices are not as kind as mine was though I had to do the research and connect the dots myself and then they let me know that yes indeed, the banks screwed up when they never secured a debt to the deed at Origination and my house is paid for. In another County, I was trying to help a friend in foreclosure and they were not as warm though they did tell me that the banks screwed up alot and are required by law to record properly but she also told me everthing is Obama’s fault because he did not FORCE the banks to give loan mods. She was feeling us out to see what we knew which was obvious and no, I do not agree it is Obama’s fault. A loan mod would have been more fraudulent inducement by the banks. Our homes are paid for. From what I have seen in numerous and I mean numerous cases (every case I have ever seen) is our homes are paid for and have been since the ORIGINATION of the loan. The way I see it is there is ALOT of unsecured mortgage debt floating around America and Fannie/Freddie BACKS just about all of it. The deed is the conveyance and it is conveyed to us only as paid (our collateral). The only thing I see conveyed to Fannie is a PAID OFF MORTGAGE paid off by us for a nominal fee since Origination. Looks like Fannie/Freddie are going to have alot of peeved off investors.

      • l vent says:

        P.S. Or as 4closure fraud calls them “sack of shit loans.”

Leave a Reply