Foreclosure Fraud 101 – How (not) to Fraudclose on a Default When There is No Default in Order to Steal Money from the Government (FDIC)

Foreclosure Fraud 101 – Fraudclosing on a Default When There is No Default in Order to Steal Money from the Government (FDIC)

This little gem comes over from Mark Stopa…

Take a look at this Final Judgment, where a borrower prevailed over BB&T at trial. Yes, the bank was sleazier than the skuz on the bottom of my shoes, declaring this borrower in default when there was no default. But take a close look at WHY the bank did so. As the Final Judgment reflects, the bank was financially motivated to declare a default because it knew the government was going to pay the mortgage in the event of default.

As if that’s not disgusting enough, what makes it even worse was that BB&T did not even loan the money – a prior bank did. Yet as a result of a deal with the FDIC, BB&T was in the position of pocketing millions of dollars from our government merely by declaring this borrower in default. This should piss off everybody in America – a bank that didn’t loan money wrongly declares a default so it can collect millions from our government. Where is the outrage?

Don’t believe me? Don’t take my word for it – read the findings of Judge Levens in this Final Judgment.

From the judgment…

The evidence adduced at trial and considered by the court demonstrated that Plaintiff breached it duties of good faith and fair dealing in its contractual relationship with Defendants. The evidence also demonstrated that Plaintiff was motivated to behave in such as manner as a direct result of the PSA; that is, Plaintiff stood to profit by declaring a fraudulent default under the subject loan, collecting from the FDIC under the PSA for such default, and then enforcing the subject loan against Defendants, and retaining the property until such time as a real estate turnaround occurred in hopes to dispose of the property at the peak of the market. In fact, Mr. Bruni testified that Plaintiff may have already applied to the FDIC for a loss share payment on this loan. And Defendants’ expert, Jim Howard, explained that it was possible Plaintiff could have already applied for and received a payment from the FDIC on this loan, perhaps in an amount as high as $1,800,000.00. Notably, Plaintiff nowhere credited such potential payment from the FDIC against the amounts sought in the instant litigation; thereby giving the impression that Plaintiff might be “double dipping”, and possibly “triple dipping” if market conditions favorably change and the property likewise increases in value.

DISCUSSION

The evidence was clear that there was a long and unblemished record of good faith timely monthly payments by Defendants. The evidence is also clear that, both on legal and equitable grounds, a bona fide default never occurred, and the resulting loan acceleration and lawsuit were improvidently initiated by Plaintiff for purposes of trying to maximize collection simultaneously from the future sale of the property after favorable stabilization occurred. The evidence is clear that Plaintiff committed significant wrongdoing and breached the implied duty of good faith and fair dealing of a financial institution, such that the instant cause of action should be denied in its entirety.

Sounds like the plaintiff committed much more than “significant wrongdoing” but I guess when you’re the bank it isn’t a crime.

Now do you understand why there are so many “DEADBEATS” that do not pay their bills?

Copy of the judgment below…

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4closureFraud.org

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BB&T vs KRAZ Final Judgment

Comments
9 Responses to “Foreclosure Fraud 101 – How (not) to Fraudclose on a Default When There is No Default in Order to Steal Money from the Government (FDIC)”
  1. Bill Harmon says:

    I am so pissed at BB & T – No one wants to talk to me about my problem. This article about BB & T does not surprise me – no wonder the Bank won’t work out anything with me. Our own govenment gives them an incentive to take my house. BB & T is a sleeze Bank.

  2. Shirlie Eaton (Perry) says:

    BANKSTAS’ ALL OF THEM…..I HAVE PAID MY MORTGAGE FOR 25 YEARS, MY CHILDREN GREW UP HERE. I THOUGHT I WOULD BE SECURE IN OLD AGE W/ A HOME AT LEAST. NOW, I HAVE NO HOME, ALL OF MY LIFES BLOOD IS IN THIS PLACE CALLED “HOME”….I HAVE NOTHING TO LEAVE MY CHILDREN, INSTEAD THEY WILL PROBABLY END UP TAKING CARE OF ME. MY HEALTH HAS GONE DOWN THE DRAIN ALONG W/ MY HOME. I CAN’T BELIEVE THIS EVEN IS HAPPENING STILL. i LOST MY FIRST BORN AT 21 YEARS OLD. THE COUNTY I LIVE IN WERE SUED, AND THEY LIED TO AVOID PAYING FOR HIS DEATH…..YOU CAN’T TRUST ANYONE… mY TAXES DON’T REFLECT THE DECREASE IN VALUE….WHY IS THAT? i JUST DON’T GET IT. i’M STILL REELING OVER ALL OF THIS. WHAT IS BEHIND THE THEFT OF AMERICAN PEOPLE’S HOMES? DO WE OWE THE CHINESE….ARE THESE CHINESE BACKED MORTGAGE LOANS…..SOMETHING STINKS…..

  3. DolleyMadison says:

    OMG this is EXACTLY what is happening to me – they have been rolling me in and out of default for two years – racking up 25,000 in “fees” – yet never pull the trigger to foreclose…now I know why.

    • David Charles says:

      We need to come together in big numbers and demand that things change or else[easier said than done]and I am not saying violence or anything to that extreme but there are many many other ways to turn the screws on the powers that be.I think even something as basic as organizing a boycott on paying ones mortgage and getting enough people to join.My 2005 interest only,broker originated,fraud filled,void of signatures,inflated closing costs,fabricated,robo-signed,forged,scam underwritten by the master scumbags over at WELLS FARGO and even after finding this out and bringing it to there attention[hahaha thats funny because they already knew,even though I didnt]what do they do?They send me more robo-signed papers,even a fraudulent assignment.Point being I guess is there no ramifications,they have the blessing of the gov.That wasnt the point the point is coming together,IMO thats a very good thing with the occupy movement but so many folks just cant wrap there heads around it.

  4. The Ponzi Schemes will continue because there is nobody stopping them, the American people is doom, and they they wonder why nobody wants to buy a house anymore…..

  5. David Charles says:

    Wow,Wow,Wow.Who would of thunk it.Now it makes sense the conversation I had with a young lady who was a broker and is now working for a company that does private lending and handles multiple commercial properties and multi family property that are foreclosures for sale.She was saying how there company just partnered up with the fdic[who would pass that up?Maybe one with an ounce of honesty and insight as to the future of this country and its economy].So they get in with the fdic then they like the big banks fabricate,forge,and lie to get fund or insurance as they call it,then get paid again when they sell those properties and more than likely for a loss with a bit of accounting trickery[if thats even an issue].What a sad state of affairs ,now I see why everything is a scam,take what you can get mentality,do them before they do you.Even the CEO’s and the filthy rich must see that this way of conducting business is short lived and the outcome will bring pain and sadness to all.God help us all.

  6. To Tell The Truth says:

    Perhaps they are using tactics we are not aware of to scare of the judges and their families? Been done before.

  7. Mary says:

    Housing will never get better until they come clean and fix this unbelieveably huge mess they made! Are we ruled by the law or not! Our courts can’t even figure it out! This is so simple that it is ridiculous! They broke the law! DONE!

  8. Mary says:

    The main stream media try to manipulate us all with their delibrate misinformation tactics.

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