WAPO | Behind the foreclosure crisis, big banks’ reign of error

Just another story of another “deadbeat.”

Behind the foreclosure crisis, big banks’ reign of error

The problem in the nation’s housing market now isn’t subprime lending. It’s subpar lenders.

Last fall, my wife and I refinanced our mortgage with Citibank. Sixty days later, we received a “cancellation notice” from our homeowners insurance company “for non-payment of premium.”

Turns out Citibank, which had been collecting hundreds of dollars a month from us to pay the insurer, hadn’t made the payments. It was, I later learned, one of the usual tricks mortgage servicers use to squeeze more cash out of their customers. About a month later, I learned of another trick: Citibank informed us that it was increasing our monthly payment by nearly $300.

Along the way, a simple refi became a months-long odyssey: rates misquoted, interest charged on a phantom account, legal documents issued in wrong names, a mortgage officer who disappeared for days at a time (first it was his birthday, then his laptop was in the shop), a bounced check from Citibank’s own title company, and the freezing of our bank accounts.

For me, this amounts to no more than the hassle of arguing with Citibank to fix its “mistakes.” But consumer advocates tell me these are typical of the screw-ups by the big banks that service home mortgages. And these errors – accidental or otherwise – are driving large numbers of people into default and foreclosure when it otherwise would not have happened.

Check out the rest here…



16 Responses to “WAPO | Behind the foreclosure crisis, big banks’ reign of error”
  1. Vale says:

    Where is the great Obama? He has the power to stop this shit, after all he took control of GM, bailed out AIG, and several banks along with Freddie and Fannie. Email or call the WH and ask why nothing is being done. You do realize the FED does not want anyone owning property and these administrations through the years have designated millions of acres as government property. We are getting screwed on purpose.

  2. l vent says:

    This is the only result that can come when IMPOSTERS posing as AMERICAN BANKS who are really MULTINATIONAL FOREIGN BANKS are allowed to come into AMERICA and pose as good guys. Then, they used Americans to perp their ORIGINATION FRAUD crimes of financial terrorism. Then they took some CEO Treasonist pimps like Jamie Dimond and used them to create wealth up on Wall Street in the Ponzi Scheme of WILD SPECULATION and then after creating this vast pool of wealth created off of thin air,(Just like Enron did) using FRAUDULENTLY INDUCED MORTGAGES, and created a giant housing bubble they knew would burst when they INTENTIONALLY crashed the market to rob, rape and pillage the masses and also blame all of us for too much spending, buying houses we could not afford and so on. If the GREEDY BASTARDS NEVER CRASHED THE MARKET INTENTIONALLY none of this would have ever happened. We were all just doing fine paying our fraudulently induced mortgages until the whores had to have more. We must DEMAND A NATIONWIDE MORATORIUM ON ALL FRAUDCLOSURES or else we will REF– USE TO PAY THOSE HYPER-INFLATED PROPERTY TAXES THAT DO NOT JUSTIFY WHAT THESE HO– USES ARE NOW WORTH WHICH IS SHIT after the CROOKS ROBBED THE EQUITY OUT OF OUR HOMES AND NOW THEY WANT TO STEAL WHAT IS LEFT.

  3. Right now, more than 500 people are making lots of noise outside the Office of the Comptroller of the Currency – the worst bank regulator that you never heard of. They are demanding that the OCC stop throwing homeowners under the bus in the their tireless efforts to protect the big banks.

    Join the crowd by calling OCC Chief John Walsh right now at 202-874-5000. Tell him, “We need the OCC to take its responsibility seriously and hold banks accountable for fixing the foreclosure mess.” And be sure to follow the day’s events on Twitter at #makewallstpay

    Over the past weeks, it has emerged that this little-known bank regulator is working hard to weaken any settlement that the Attorneys General and other bank regulator reach with the big banks on their fraudulent foreclosure practices.

    Yes, that’s right. The biggest threat to a strong settlement actually comes from the very regulator who is supposed to be protecting us from the bank’s abusive behavior. But this isn’t anything new for the OCC. For years, they’ve turned a blind eye to the worst financial abuses on Wall Street.

    We have to tell them, “Stop!” Call OCC Chief John Walsh right now at 202-874-5000.

    Together, we can make sure this a “settlement that fits the crime.”

    Thank you,

  4. Bust them! says:



  5. Pamela says:

    I vent I couldn’t agree with you more and BTW I watched the video you recommended and again I agree with you.Keep up the good work more people are starting to see the light and just perhaps ther could be light at the very dark end of this misbegotten tunnel that seems to be all of our lives.It is very interesting that a bank caught fire on a sunday and no fire alarms were working.Imagine that.Could this be signaling the start of a new era.We can only hope .

  6. pamelag says:

    I VENT: thankyou,keep info flowing. as we see with the union busting issues the media lies. (they) are trying to pit people against each other like it is union wages fault that the states are outta $, nothing to do with the treasonous thieves stealin bribin lyin and taking HUGE PENSIONS, not a word about that, not a word about GMO modified food attacking the immune system and worse and Kraft thinks it is ok, congressmen saying consumers are too dumb to interpret GMO. LET US NOT CURSE THE DARKNESS, WE MUST LIGHT A CANDLE. NO MORE BANK ACCOUNTS*no modifications, if it is not in the BE$T INTERE$T for the bank,they WILL NOT modify or short sale, i think obama reward$ them $$ GOD BLESS AMERICA

  7. l vent says:

    Look people Rome could be starting to burn. Check out this link BofA caught fire in the heart of Downtown Chicago today. Firefighters are investigating why the fire alarm never went off. HUH! Here is the link. http://www.wgntv.com/search/chibrknews-firefighters-battle-loop-highrise-fire-20110306,0,5894790.story

  8. l vent says:

    After America saved the world from the tyrants, the poor, the tired, the sick, the huddled masses came here to escape the tyrants, Now those same tyrants are trying to turn America into a land of the poor, the tired, the sick, and the HOMELESS huddled masses. It is DIGRACEFUL. Why? because the tyrants want to destroy America. We The People cannot let this happen to our great nation. We and our ancestors have fought wars and worked too hard to build America so we and future generations can prosper HERE IN AMERICA. We did not build this nation to spread our wealth and knowledge around the world so we could be defeated by our own generosity. These tyrants have made the mistake of misinterperting our generosity as a weakness and have taken full advantange of us with the help of secret societies within our own country who have helped them infiltrate and corrupt our entire military, financial, corporate, political and judicial systems.

  9. jz says:

    Ivent – keep rolling!! Ignorance is their weapon and u r not ignorant.

  10. jz says:

    Citi is more sophisticated and much more connected than many Fed Banks – Second only to G Sachs – yes? 35 BILLION in bail out? Secured by Fannie? Citi bought ABN AMRO as ABN AMRO got thrown out of the United States
    circa 2006-07 ofr laundering 80 BILLION!!!!!

  11. l vent says:

    I will burn the mo fo down before I let a foreign multinational bankster STEAL MY HOME. OVER MY DEAD BODY. These IMPOSTERS need to be sent back to HELL where they came from. Hell is in Rome by the way I believe.

  12. l vent says:

    Let’s talk some real truth about who is behind the worldwide holocaust.. The banksters and our Government are complicate but at the top of the steaming pile of shit is none other than the U.N. who really are: http://aftermathnews.wordpress.com/2007/10/01/blackwater-knights-of-malta-in-iraq/

    • l vent says:

      Time to send our so called elected officials packing. They are treasonists. Imposters and Fraudsters posing as Americans. So are The Wall Street mafia and the Bankster mafia who have aided and abetted the revived Roman Dictatorship A/K/A the NEW WORLD ORDER. Screw these Imperialist bastards. They are a bunch of sick old facsist pedophile inbreds. Time for the American people to send the IMPOSTERS PACKING. THIS IS OUR COUNTRY. GOD BLESS AMERICA.

    • l vent says:

      These nasty Nazi bastards are behind EVERYTHING bad in the world for the last 130 years. They are the evil empire. They want America to look llke the bad guy and are using us as their — USEFULL IDIOTS for their war machine by creating unnecesary, useless, ongoing wars via lies and deception, and they are also using their economic terror machine via The Federal Reserve and Wall Street Also know as the NYSE/EURONEXT. They are using the lie that we are broke and they are forcing us into abject poverty in order to control the masses just like they did in Weimar Germany. They are FASCISTS NAZI’S hellbent on the destruction of nations including the UNITED STATES OF AMERICA. .

      • l vent says:

        Send the Manstream media packing too. Don’t watch or listen to any of them them. They are spreading NEW WORLD ORDER PROPAGANDA. Rupert Murdoch is a NAZI PROPAGANDAIST. FOX NEWS IS FAUX NEWS. THEY ARE A FRAUD as is all of the rest of them. We The People have done NOTHING WRONG. WE ARE THE VICTIMS OF THE ONGOING TERRORISM. Our media is aiding and abetting these terrorists. RT news is the one to watch.

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