American Banker | ‘Procedures Matter’ in Foreclosure; Do Outcomes Matter More?

‘Procedures Matter’ in Foreclosure; Do Outcomes Matter More?

Is it “just” a technicality if a mortgage servicer, foreclosing on a borrower who in all likelihood has defaulted, creates documents to prove the servicer’s client acquired the loan years ago?

Consider this (admittedly imperfect) analogy: is it just a technicality if a criminal wasn’t read his rights before being arrested? If we know such a person is guilty, it fair to say that such a person was “not harmed” by the police officer’s procedural misstep? Is it worse to violate his constitutional rights or let him back out on the street?

You can hear echoes of that age-old friction between due process and the messy, often infuriating results of honoring it, in reader reactions to American Banker’s recent story about servicers backdating paperwork to support foreclosures.

One reader, for example, took umbrage with a Bank of America spokeswoman’s comment that retroactive mortgage assignments are simply “procedural steps” to prove to a court that a trust has the right to foreclose on a borrower.

This commenter noted that Bank of America has, in at least one highly publicized instance, tried to foreclose on a home that had no mortgage at all, let alone one with B of A.

“Why should we assume that that they are correct when they allege that New Century wanted to assign a particular mortgage to Deutsche Bank as part of complex securitization deal executed 5 years ago?” this reader asked. “This is the danger of skipping those pesky ‘procedural steps’ long ago. I am sure they saved money by not carefully making and recording assignments at the time they were meant to occur. Unfortunately, it is not only the banks who are now paying for this. Homeowners with clouded titles are paying too. Procedures matter.”

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5 Responses to “American Banker | ‘Procedures Matter’ in Foreclosure; Do Outcomes Matter More?”
  1. Brenda says:

    I filed Bankruptcy after loosing my Job of 16 years. My home which I had lived in and for in hopes of building for myself and my family a future. I am asking for the proper party to turn my house over to……. I have worked hard for this house I have been honest in my dealings with others. I had never in my life dreamed that such deceptive business practices were going on behind my back and everyone profited but the Alleged Borrower. The banks want my Note, my House and they want it without being held accountable for the fraud not One Person in Jail.

    I started this In March 2010 Sending this my Letter Of Intent (this was before I discovered all the deceptive business practices.)

    To all parties concerned in the matter of security instruments subject during bankruptcy proceedings; case # pending.
    I am taking the time to request and obtain important information regarding the Mortage/Forclosure.

    Federal Circuit Courts have ruled that the only way to prove the perfection of any security [including original promissory note] is by actual possession of the security. Current or prior possession must be proved up.

    That a certain balance is due and owing on the note.

    It is the note holder’s duty and responsibility to validate the claims being made on the note and the amount owed.

    Foreclosure by State.

    The Lender Must prove Existence of the Original Note.

    To recover on a original promissory note, the plaintiff must prove:
    (1) the existence of the original note in question;
    (2) that the party sued signed the original note;
    (3) that the plaintiff is the owner or holder of the original note; and
    (4) that a certain balance is due and owing on the original note See In Re: SMS Financial LLC v. Abco Homes, Inc. No.98-50117 February 18, 1999 (5th Circuit Court of Appeals).

    Be it also known that normal actions in the matters of transfer and sale of property handled by any trustee within Arizona State are typically non-judicial, unless challenged, must be in compliance with MERS rule 8, if such a trustee or bearer or original note is registered lawfully with MERS and is utilizing their services. (Note:Refer to MERS )

    This action is to protect and insure against any future attempts made by the alleged existing account holders or unknown alleged parties; and their trustees, who may come forward with similar claims until the aforementioned request is either validated or pending validation to the extent of a resolution, failure to validate, of the current matter based on the merits of this case and authorities cited herein,

    Any and all parties involved or later becoming enjoined to this action have no lawful standing to proceed until said validation is either achieved; or an equitable resolution is obtained, for failure of validation, by all parties to this action past, present and future.

    I have attempted to close this and have my complaint answered. but instead and

    By my experience after being in Bankruptcy Court, Superior Court, and District Court all I have gotten is the run around. why would I have to file over 200 dockets to get the valid proof… I hope the Court start following the Law and Some of these people go to Jail for trying to sale my home using forged and frauded documents.

    • Brenda says:

      I have lived and paid for my home for 16 years. I believe it is the Banks that want everything for Free. What have they Invested? Except Lies! Lies are Hard and The Truth is Simple.

  2. Is it a technicality if the criminal bank committed economic disaster causing loss of income, business, and jobs that caused alleged defaults? And set us up for alleged defaults?

  3. Granicus says:

    How the hell does someone perfect title on their home after the secondary market has done their voodoo?
    Can clear title be achieved in Florida with a “Quiet Title Suit”? I have pondered this and after 30 years of working in the mortgage industry following the “Rule of Law” covering land recordation I haven’t got a clue. Has anyone come up with a comprehensive plan to fix this crap? Kicking the can won ‘t cut any longer.

  4. housemanrob says:

    …… atrocities……big joke for the banksters….life or death for many homeowners. Socially responsible leaders put a stop to it….sociopaths see the power advantages. Let’s start weeding them out……good vs evil… the eternal struggle, at hand, behold before us……the time has come!

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