The mortgage is still owed, but there’s going to be a problem figuring out who actually holds the mortgage, and they would be the ones bringing the foreclosure. You have a trust that has been getting payments from borrowers for years that it has no right to receive. So you might see borrowers suing the trusts saying give me my money back, you’re stealing my money.
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“Quite the can of worms. Anyone who says that the banks will fix all this in a few months is seriously delusional.”
Here we go folks…
Almost there so keep pushing…
Major network explains Foreclosuregate…
Foreclosure Fraud: It’s Worse Than You Think
CNBC Real Estate Reporter
There has been plenty of pontificating over the ramifications of foreclosure freezes on troubled borrowers, foreclosure buyers and the larger housing market, not to mention lawsuits, investor losses and bank write downs. There has been precious little talk of what the real legal issues are behind the robosigning scandal. Yes, you can’t/shouldn’t sign documents you never read, but that’s just the tip of the iceberg. The real issue is ownership of these loans and who has the right to foreclose. By the way, despite various comments from the Obama administration, foreclosures are governed by state law. There is no real federal jurisdiction.A source of mine pointed me to a recent conference call Citigroup [C 4.24 
0.06 (+1.44%) 
] had with investors/clients. It featured Adam Levitin, a Georgetown University Law professor who specializes in, among many other financial regulatory issues, mortgage finance. Levitin says the documentation problems involved in the mortgage mess have the potential “to cloud title on not just foreclosed mortgages but on performing mortgages.”
The issues are securitization, modernization and a whole lot of cut corners. Real estate law requires real paper transfer of documents and titles, and a lot of the system went electronic without much regard to that persnickety rule. Mortgages and property titles are transferred several times in the process of a home purchase from originators to securitization sponsors to depositors to trusts. Trustees hold the note (which is the IOU on the mortgage), the mortgage (the security that says the house is collateral) and the assignment of the note and security instrument.
The issue is in that final stage getting to the trust. The law demands that when the papers get moved around they are “wet ink,” that is, real signatures on real paper. But Prof. Levin tells me that’s not the worst of it. Affidavits assigned to the notes and security instruments are supposed to be endorsed over to the trust at the time of sale, but in many foreclosure scenarios the affidavits have been backdated illegally.So with the chain of documentation now in question, and trustee ownership in question, here is one legal scenario, according to Prof. Levitin:
Now get over and read the rest here…
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I paid $135,000 toward the purchase of my home and the bank took that money and added it to the listed price of the home rather than deducting it as I was told. The listed price was 245,000. The bank took my $122,000 payment and added it to the $245,000, which created a false sale price of $367,000. This is right on the first line of the HUD1. No one believes me when I tell my story — But its true. My earnest money deposit of $5,000 was stolen as well and is not recorded anywhere on the transaction. I have a copy of the check and receipts that substantiate my payments and claim. My research show that this is financial fraud, but no one will pick up this horrible story and I have been fighting the bank for years. The misstatement of my money is ‘on the face’ of the loan documents as having been paid. You may say I need an attorney – Yes, I do and one who will not sell me down the river on the eighteenth hole of the Quail Hollow Country Club – Been that route. I know I have a case. I understand a great deal about consumer protection law – self-taught. I am still in my house – have written letters to the AG of my state and his brother — will not answer me. The banking commission say that they do not regulate Chase Bank. So I started writing a chain of complaint letters to my representatives telling my story in detail. They have contacted the U.S. Treasury Department – nothing has happened in the way of getting a resolve. In the meantime, the trustee resigned and another one has signed on to the case — Imagine that! I was told today by Michael Gerrit that Diane Olick may be interested in this story — I hope she picks up this email and send me a message. This one is a doozy and the big bad bank is ‘banking’ that I will remain in the shadows because they have typically scared off a lot of people who were at first willing to help. I hope to hear from you or someone who can truly help me. Thank you so much – God Bless
This issue affects me personally. Lost job 12/06. Hung on as long as possible. But when push came to shove, missed a few payments.
Tried repeatedly to rework the loan with BAC, not knowing the loan had been securitized. BAC wouldn’t redo the loan in a way that worked. In the meantime, to remain eligible to rework the loan, I had to not make the payments. Yes, induced to not make the payments.
BAC started foreclosure May 2010. June 2010, notice of default cancelled. June 2010 Note and Trust Deed assigned to Bank of New York Mellon as trustee for a loan pool by MERS. New NOD, foreclosure sale scheduled for late October. Oh, NOD says monthly payments in the amount of $0.00 is reason for NOD. Sloppy.
Assignor for MERS also signed docs for BAC Home Loan Servicing recorded the same day. Yep, Robosignor. Concurrent signator for the loan servicer, which signed the substitution of trustee for the trustee of the security pool, the trustee of the security pool, and for MERS. All in one service.
In Utah, MERS has been deemed to hold authority to assign notes and trust deeds.
So, the June 2010 assignment of the note to the security pool, which was time barred as of May 1, 2007, was three years late. The tax REMIC status was blown up on a $465 million securitization pool by that late June 2010 assignment.
Since MERS won several local lawsuits by arguing it had authority to assign the notes and trust deeds, it is estopped from now saying the assignment was a nullity.
Oh, and since the transfer was not made timely, the note and trust deed are unregistered securities under local state law since the note and trust deed were not transferred per the registration statement. One of the remedies for unregistered securities is that the note and trust deed are unenforceable by parties who should have known of the facts by which the security is not legal. That would include all of the parties to the securitization, including MERS, Countrywide/BAC, and the BONY trustee for the pool.
I sued to get dec relief to merely cure the defective NOD and resume paying. Since I am having to go to all this trouble, might as well assert all of the theories and see if something sticks to the wall.
Silly BAC. All I wanted to do was roll the late payments into the principal and resume payments.
The Mortgage is not owed and I’m suing the trust (because the trust is who brought the foreclosure action on me )for the return of the money I paid to the despositor yep my cancelled checks went to the despositor , the underwriter of the securities, which is the famous BEAR STEARNS…explain that.
Pretty good coverage, but it is still missing the fact that the banks violated a number of laws and committed fraud during the loan origination process.
This criminal conduct is why most people suddenly found that their mortgage payment was significantly higher than they anticipated, and it lead to defaults which the banksters anticipated.
As long as the economy didn’t tank and real estate values kept going up, the banks were making a killing at the expense of their victims.
When their criminals acts did finally take down the economy, the banksters just called in more favors and ripped off the taxpayers.
I wonder why the regulators and prosecutors just looked the other way while the banksters went on their crime spree and stole the homes and life savings of millions of Americans, don’t you?
Could it be the same reason why Congress gave hundreds of billions to the banksters while letting millions of Americans who were victims of their crimes get thrown out into the streets?
Even though we are supposed to send complaints like this to special bank regulators, some of the boys in blue know who committed the crimes and who is on the take, but there is not much we can do with our hands tied behind our backs.
How do you like that for justice?
By the way, get ready for the new call for saving the banks from all of those poor people who bought homes that they couldn’t afford.
FINALLY we are making some progress!!!! I have been screaming about this for over TWO years!!!
Keep up the good work everyone…we are ALMOST THERE!!!