THROWING THE DART AND MISSING THE MARK
Two myths the media must stop pronouncing are as follows:
1. The myth that the majority of homeowners that enter modifications under HAMP or any other program are falling out of the modification; in other words, are not completing the modifications. This is a false statement.
2. The myth that the Banks/Lenders were not paid 100% for these defaulted loans.
The first myth has been pervasive for over a year and it not true. Ask any attorney that does loan modification. What is happening is that the borrower finally – after 8 months or more – gets a trial period loan modification from the Lender. Why this takes so long is beyond comprehension. Nevertheless, The trial period modification amounts to something like 31% of the total income of the Borrower. The monthly mortgage is reasonable and the Borrower enters the agreement.
Several events quickly transpire after that. First and foremost, the Lender is getting paid from the U.S. Government (read Tax Payers) anywhere from $1000 to $2500 for that modification. So a Borrower you gets a payment of $1200 under the HAMP program enters the agreements and pays. At the same time the Bank is getting another $1000 to $2500 from the Government. In sum, the Bank is actually receiving between $2200 to $3700 for that same loan. What happens when the Bank no longer receives the Government money – all of a sudden the Borrower, who has paid in accordance with the agreement, no longer qualifies for the modification.
The trial period was designed to prove that the Borrower could and would pay the agreed upon sum. After the three months the trial period modification was suppose to turn into a permanent modification. What happened in the majority of cases is either the Bank simply informs the Borrower that he/she no longer qualifies or the Bank jacks the monthly payment up to the original monthly mortgage payments. Following this action the Bank wrongly reports that the Borrower fell out of the modification. What really happened is that the Bank forced the Borrower out of the modification by refusing to make the modification a permanent modification. In short, it is the Banks fraudulent activity that forced the Borrower out of the modification as it is the Banks fraudulent activity (by way of securitization) that has caused the foreclosure crisis.
Another scenario may happen. The Borrower pays on the modification for many months beyond the three months. The Lender continues to tell the Borrower to pay the modification amount because the permanent loan modification papers “are in the mail”. This goes on for many, many months while the Borrower is faithfully paying the Bank. Then one day the Borrower receives in the mail a Letter saying that the Borrower does not qualify for the modification amount and now owes all the money that has been deferred before and during the modification period. Obviously, the Borrower does not have the thousands of dollars the Bank is demanding, which the Bank knows. Bank now wrongfully reports that the Borrower fell out of the modification.
The next possible scenario that may happen is that the Bank gets a final summary judgment from the court and the Borrowers house goes up for sale. Once the court enters the final summary judgment, the Bank no longer has to deal with those pesky Borrowers paying on the modification; thus, the Bank sends a letter saying that the Borrower no longer qualifies for the modification, which the Borrower has faithfully been paying, and – oh, by the way – your house is our house in four months, which is generally when the court sells the Borrowers home online.
This last scenario happens because the Bank’s attorney continues prosecuting the foreclosure despite the Borrower entering into a modification agreement with the Bank. Why? – because the Bank does not tell the Bank’s Attorney to halt prosecuting the case. The Bank also does not tell the Borrower that the Bank will continue prosecuting the foreclosure throughout the loan modification period.
This is the absolute favorite tactic of the Bank. The Bank keeps the Borrower talking (and distracted) while the Bank’s attorneys continue through the courts getting first a default against the Borrower for not answering the Complaint and then a final summary judgment with a sale date. Many of my clients have actually been told by the Bank not to get an attorney because the Borrower is talking to the Bank. This tactic works because ordinary people do not keep track of their phone calls and conversations with the Bank and the Bank representative refuse to put anything in writing, which can be used against them in a court of law. So, when moving to vacate the default, an attorney, like myself, has no hard evidence of what the clients conversations are with the Bank.
What I, as a mortgage defense attorney must do, must do is file a motion to abate or dismiss the complaint when the modification agreement has been entered or the modification negotiations are ongoing. Otherwise, the Bank’s Attorney will continue to prosecute the foreclosure to the detriment of the Borrower. Few Borrowers know this fact and, thus, fall once again into the Fraudster Banks’ Victim column.
To conclude: It is the Fraudster Banks, and their Attorneys (who know what is the Fraudster Banks are doing), who force the majority of Borrowers out of modifications which are favorable to the Borrower, but not the Banks.
This brings us to the next question. The Banks have been paid for these bad loans. The Banks have been paid for these loans through Credit Default Swaps, which works like an insurance policy. Or, the Banks have been paid for these loans through Mortgage Insurance, paid for by the Borrower or by the excess funds collected by the Securitized Trusts. Or the Banks have been paid through the Government Bail Out.
Furthermore, there was a reason why the Banks converted many of these Notes into electronic copies and destroyed the original Notes. That made it easy to sell the same Note multiple times. Instead of transferring the Original “wet ink” Notes, electronic copies of the Notes on DVDs were transferred, multiple times. After all who is to say what is the “original” electronic copy is. Is it the one Trust One bought or is it the one the Trust 2 bought? Or maybe it is the one that Lehman Brothers bought from Indymac Bank, FSB? It’s the same Note just a different DVD.
The Fraudster Banks want the Media to throw the dart at the Borrowers but that misses the Mark. The Borrowers – read, the American people – are the last link in a Ponzi scheme that started with the Banks (read securitization) and ends with the Fraudster Banks manipulation of the system and the ignorance of the common, ordinary American Citizen.
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I’ve been sitting on the sidelines as a Renter since 2004, when I recognized a huge unsustainable bubble in real estate was occurring.
I make $160k per year, my wife makes $72k per year, so we have the means to afford a nice $1.0-1.5 million dollar home.
The problem is that all the people who got liar NINJA, interest only, or worse, option mortgage loans from 2002-2006, and never made 1/3 of the $232k my wife and I have on our 1040 return, lied their way into homes they never should be living in to begin with.
In the process, they bid up $400k condos in Santa Monica/Manhattan Beach, CA to a ridiculous price of $1 million. They bid up $1.0-1.5 million homes to $2.0-$3.0 million, simply because they were allowed to participate in the bidding process by allowing them to lie that they had my $232k income, when in reality they only had and have a $70k income.
I’m just waiting for all these pretenders to get foreclosed on, and the currently inflated $2.0-$3.0 million dollar homes to return to the $1.0-$1.5 million range, where they belong.
This will only happen once all these liar loan home debtors get foreclosed on. The banks and the government, and the attorneys who wish to get a cut of the $ as well, are “extending and pretending” and preventing homes from returning to their true value, and my wife and I from purchasing the home we rightly belong in.
Currently there’s someone SQUATTING in our future home rent-free and mortgage-free, dancing around and pretending that they can afford to live there, all the while standing unproductively on 30 hour lines at NACA conventions, or hiring attorneys with money they should be saving for their future as renters.
They simply can’t and never could pay for the homes they bought, because they make $70k per year, not the $232k per year that my wife and I do.
It does not matter what happens in the ‘background’ regarding insurance, CDS, or other ‘guarantees’. Thats for BANKS. You did not buy any insurance that stated they will pay your debts, if you do not. GET OUT OF THE HO– USE YOU SCUMBAG!
FINALLY, rental agencies in Florida have had ENOUGH of the dead beat home ‘loaners’ if you didn’t pay your mortgage, your not RENTING! Unless its a SLUM!
GO LIVE WHERE YOU BELONG, RIGHT NEXT TO THE WELFARE AND SECTION 8 RECIPIENTS!
I hope these banks lawyers attach the future pay of all these ‘geniuses’ .
1: YOU NEVER SHOULD HAVE BOUGHT A HO– USE YOU COULD NOT AFFORD
2: YOU NEVER SHOULD HAVE STAYED AFTER YOU STOPPED PAYING
3: THE TERM – pay me now, or pay me later – you might now be familiar with it. BUT YOUR GOING TO BE!
Hey Will, get a grip. Are you one of these banksters? Sounds like it. Either that of you are an idiot. It DOES matter what happens in the “background”. Conspiracy is like that. This is criminal and felony fraud here, pal. I think the House of Rep should open hearings and the attorney general(s) of each state should start to file criminal charges.
The banks may have thought this was their own ‘private’ game of darts…but when the darts began to bounce off the target, the borrowers picked up the darts , aimed for the center bullseye and scored. Games over now. It’s time to slice and dice this whole ploy scheme…from beginning till now…cause this is not the end. This is just the start… of what has devastated the entire United States and the world with the ponzi method of greed. To brag about making multi millions per year knowing that millions fell into their trap of doomed mortgages and used the promissory notes to sucker investors with lies and false ratings… was and is a crime that will shake the world if it hasn’t already started to shake. Fraud was reported to the Justice Dept. in 2004 by the FBI…nothing was done. So this had to be known with many others involved in any way with the financial industry. That includes many in areas to deep to mention. This whole ‘ponzi issue’ is disgusting to the point of nausea.
Not to make slight of the difficulty of finding a true believer Attorney, for the most part borrowers have been either 1. In denial; 2. Walking away; 3. Believing that talking to the lender about a modification actually solves the problem; 4. Are ignorant of the problem and what to do. Only a very small percentage fights and without fighting a borrower will get nothing.
Bloggers and a faithful few attorneys have kept this fight going. Then one or two reporters began blogging and writing articles. And the momentum IN THE PUBLIC slowly changed.
What is needed is more than 5 percent of the people lawyering up. My goal is 30% fighting. This changes the dynamics. Many, many more borrowers need to get attorneys and fight.
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I agree that the fraud started with the loan origination. Has anyone looked into the secondary fall out ie: exorbitant property tax rates from all the artificially inflated home prices? ( so wallstreet could be fed more mortgages). I know a lot of people were managing their mortgages but then in some case their taxes quadrupled and were more than their mortgage payments! This pushed many over the edge and into default.
It was not the tax rates that went up it was the house values that went up. Now that house values have declined so have the property taxes. Cities and counties – now use to the extra money- are struggling. Citizens are also used to the extra services provided by the cities due to the extra taxes raised due to the higher home values. The extra jobs and services are also gone.
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My daughter is facing a judicial foreclosure in Florida. We discovered that the Original lender, JP MORGAN CHASE BANK, N.A., obtained a “Loan Note Guarantee” from the United States Department of Agriculture, Rural Development, Rural Housing Service less than one month after she signed the original “note.”
A different company, Chase Home Finance, LLC, is now suing my daughter.
The Loan Note Guarantee says: “Lender will be responsible for servicing the entire loan and Lender will remain mortgagee and/or secured party of record.”
We contacted the “Rural Housing Service” in early July 2010, but they would not give us any information. They told us to go to the bank!
My daughter contacted her Congressman, Thomas Rooney, in early July, asking him to confirm the status of the Loan Note Guarantee. To date, his office has not been able to get an answer from the Rural Housing Service.
We think the original lender has been paid off.
Does anyone know how we could confirm the status of that Guarantee?
Thank you.
Most, if not all, of these loans were paid off by insurance, government guarantees, credit default swaps, and just by selling and re-selling loans. But the judges routinely refuse to allow mortgage defense attorneys, like myself, to get at the evidence. I believe that judges are doing this by stepping outside their jobs as impartial judges. Judges feel that the borrower owes the money and cannot fathom that the plaintiff suing would not be the owner. But with the invention of the Rocket Docket judges no longer cared about anything except getting rid of the cases- evidence, due process, judicial impartiality – was discarded for expediency. This will have far reaching effects.
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Tell you daughter to get a lawyer NOW. Fight. Investigate. Sue.
Question is, how many times were the monies moved………….sold……….resold………..and sold again. Failure or default doesn’t matter. This business model goes on to infinity with only two express stops along the way. Prison for the guilty………and the other final stop………..FINANCIAL COLLAPSE.
This is how they are trying to steal my home, but with a twist. The original lender writes a letter to the borrower that is not the servicer anymore, and that my new servicer is servicer B. But lender A wrote the letter on the closing and put the transfer back to the day before the closing. So if the servicer A does not have the power or control of the documents a day before the closing, how can they transfer documents that were not even signed yet. How can lender A transfer to servicer B if in fact they backed up the date the day before? If this was not fraud on the investor and borrower I don’t know what legal system they are using. I even have three different TIL disclosures thousands apart in the interests and purchase amounts.
I still think us poor scamartists borrowers should lose our homes. We are doing so much damage to the country arent we??? But these Judges are letting these fraud artists have their say, even if the fraud started with the Real Estate agents on up the line to add their own little fraud to the problem. Mine was a Radon problem that was not disclosed until I signed the documents, and the RE drew up more new agreement frauds. Who twisted my arm to do this fraud??? Then there is the appraisor, when he did not disclose the Radon problem or the fact of Radon. He should have told me about this, but what the Hell, I only paid his fee of $350. And get this, I did not get the report. He sent the receipt and report to the Lender, that I never received until 3 years later when I sent a Qualified written request for it. And by the way I never got any disclosures until three years later and some still not received. But I guess I was trying to screw the lender out of money??? Oh I did not tell you all about the insurance fraud they pulled 1-1/2 years into the loan, the said I did not send them proof of insurance on the home. Hmmmmmmmmm the insurance was in escrow as is the Taxes, but they put their insurance in place at more then six times the selling price, and $2500 a month for a $51000 home. To top it off my insurance was $20 a month before the let it lapse, so they can charge over $200 a month for the insurance. Oh I’m am such a bad bad man. Oh I forgot……. The written request documents I asked for were changed from what I signed, and my signature was forged and the date of close was August 2, 2007 but I actually signed on August 5, 2007, which was on a Sunday, and there was no Notary, but the documents they sent me has a Notary, which is from a county 40 miles away, whom I never ever saw nor knew about. The only people who were present was Myself and the RE agent who by the was signed as just Agent and no name or who the agent was from. Damn I’m giving away all my dasterdly deeds of deception. I am one bad bad man. Now the servicer, one of many, comes to a remodifacation, when I could not afford the payments they raised after I closed, so after months of waiting for HAMP and trying other programs, they make me an offer the is way better then what HAMP will give me, by the specialist word from Nationstar. I signed the agreement and requested the disclosures and account of the fees and lawyers fees, but non came. The agreement was for $551 per month after two monthly payments, I was getting notices of partial payments and late fees, and other fees for different things like inspections and such by the second month of remodifacation I got mad and decided to stop making any more payments, and demanded documents to be given to me, but got nothing. Then the servicer was trying to foreclose and sent a foreclosure mill lawyer to take over, until I answered the court that I plan to defend, so the lawyers back out and put in the manager of trust on the complaint, but then they just stopped the court complaint and now stands at a stale mate. for several months, as I keep sending the demand of rescission, that they say I can’t have because it is exempt for residential first mortgages as a money mortgage, but I write back that UCC rules state that fraud and deception are grounds for rescission and even gives six years max for statute of limitation. So we will see since I gave them another 20 days to resind this loan, after denying me 120 days ago..
The banks need to fess up here. The foreclosure problem is just a fraud trying to cover up their other fraud they are trying to cover up, which most likely began in the origination of the loans.
The banks will “fess up” when their CEO’s are facing criminal fraud charges, federal ones at that. Someone has to pay and it’s either that or start tossing some of them from tall buildings.
yes when you sell a car(loan) for cash $(security pays originator full loan amount) your supposed to sign over the pink slip to new owner (security), well if you failed to sign over the pink slip then who own`s the car?????????????? not the originator or the security! cause PSA says you only have a certain amount of time to get the pink slips to us
Every American should read and act on this article. Again, where would we be without those of you with more knowledge and experience sharing it directly with us.
Many thanks.
joyfultreeladyu
Back in the early nineties I had 9 properties, 15 rental units and about a half million in equity. I’d bought the places “in boards” and done whole house rehabs on them all. I’d made a deal with a Bank for present financing with their assurances of future financing back when I had only 5. I bought the next 4 (Credit Cards), did the rehabs (CC again), had tenants in place, went to the Bank for the refi’s, they stonewalled me. I lost it all. But it didn’t stop there. They took another $100,000 and put me into Bankruptcy. But it didn’t stop there. for the next 12 years they posted on my Credit report that I was late on payments on 5 of those houses and when I’d object with the Credit Bureau’s they’d just change the amount I supposedly owed. They burnt me and they burnt me good. I say all of this because at that time, I was stonewalled. I tried to talk to the Bank, they wouldn’t talk to me. I’d done nothing wrong, my numbers were great. I even hired an Atty to talk to them for me, they stonewalled him too. Different times, different scenarios. Nowadays, I was getting monthly phone calls about making my payments BEFORE my payments were even due! And once I quit making payments… They tried to drive me nuts! Now I’m just an old country boy, but their actions nowadays reminds me of a young male dog who won’t quit humpin my leg. And I’m sure I’m not alone, so, what do ya do with a dog that won’t quit humpin your leg? You kick him off to the side and if he comes back, ya kick him a little harder. If still he won’t quit you imprison him and then, if he turns into to much of a pain in the butt… you euthanize him. For some reason, I don’t know why, but I se the similarity here. It’s time the Courts did some kicking dog butt. As a taxpayer who’s already given Wall Street and the Bankers an unfathomable amount of money, I don’t necessarily want to spend more on housing the lot of them in prisons. Sometimes the simplest answers are the most profound.
And as PS to all you robo-signers…. you’re being set up as scapegoats! Time to grab any evidence you can get your hands on and RUN to the Legal Industry with it. The longer this goes on, the longer your jail sentence is gonna be.
Amen. Hard prison for these banksters. Start with the CEO’s and work downward. Criminal fraud, racketeering, the list goes on and on. Federal level.
Help for Homeownes or Bank Bailout?
(Permission to re-publish with Proper Attribution and Credit)
In writing, directly from HUD, it is stated that in order to get assistance, the homeowner must be at least 3 months late on their mortgage. How many people know what that means? Yes, look here my great warrior attorney friends, they did put it in writing.
I personally know, from my 18 years of mortgage and real estate experience and industry knowledge that a homeowner that thinks they are struggling with their mortgage usually has many other options to try before they stop paying their mortgage. Those other options usually are much better for them allowing them to rebuild their wealth quicker. They are certainly better for the overall housing market and economy as well.
When the government and banks lie to them about programs that are available to help, they do not even consider any other options. Why would they continue to force homeowners into default? It’s like they’re getting paid to do it. Really? Really!
Many homeowners can document and prove distress long before they are late on their mortgage. The fact that the policy specifially says they must be 3 months late before they can be helped is very telling. It allows the lender to issue a notice of default, tack on a variety of massively inflated fees and force inflated escrows. It also allows them to start the foreclosure process so after they use all the money from these kinds of programs to pay accumulated interest, inflated fees, forced inflated escrows and legal fees and whatever else they can get, they then proceed to final judgement for foreclosure.
At that point, of course the potential deficiency to the borrower is usually much higher than it was before they were helped. Also their credit is now ruined and it will take them much longer to rebuild their wealth. (I didn’t say they couldn’t rebuild their wealth, just that it will take longer, so hang in there if you are one of the many that fell forthis already)
This is the clearly documented and proven. So, before the public starts following their instructions again and starts to not pay their mortgages to get their “help” try to spread the word. It will hurt you if your neighbor does this so don’t think it doesn’t apply to you if you are currently not in distress. This continues the downward pressure on all our real estate values and hurts the overall economy so it does affect us all.
If you are facing a financial hardship, work with experienced and knowledgable professionals that can defend you. A real esate defence attorney is critical part of that team.
OBAMA ADMINISTRATION ANNOUNCES ADDITIONAL SUPPORT FOR TARGETED FORECLOSURE-PREVENTION PROGRAMS TO HELP HOMEOWNERS STRUGGLING WITH UNEMPLOYMENT
Link here: http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-176
Disclosures: Permission to re-publish with Proper Attribution and Credit. Please consider my opinions merely a guide and verify research and learn about these topics for yourself so you can protect yourself and your family. Document everything and remember to focus on common sense. If it doesn’t make sense, keep asking questions. I am not an attorney and none of my opinions should be considered legal advice. The opinions and views expressed in these articles are solely the Authors and are not necessarily shared by any brokerage firm and/or any other affiliated company.
Thank you for this article Carol. You actually get it, and have the courage to stand up and expose these fraudsters for what they are. Thieves!
Thank you for your continued hard work and dedication Carol. You are truly a leader in the Warrior Attorney league. We are not only explaining this over and over again. It is also clearly documented and proven that what you detail here in writing occurs systematically.
I’ve literally showed homeowners idependently verified documents and court records that prove this and they still continue to work with their lender because that is what the government and media tell them that they should do. This is blatant fraud. Every “help for homeowners” type government website or counseling service, the majority of Realtors and even some Attorneys tell distressed homeowners to work with their lender. Not to mention how the propaganda machine continues to paint reputable and experienced professionals as the bad guys and uses government reguations to limit the compensation for homeowner defenders. Thankfully true homeonwer defenders know that this is too important of a fight to be pushed out and many of us do a lot of volunteer work.
We need to keep repeating and documenting this over and over again. This is not our opinion. This is proven and documented. It is a level of insanity that I cannot comprehend. The reason that they get away with it is because it is so blatant. This is not hidden or covered up. Oh, and let’s not forget how many homeowners were not even delinquent on their mortgage before they were misled into this. It’s sheep to the slaughter.
They keep telling you “I’m not robbing you, I’m not robbing you, I’m not robbing you” Then they tell you and get their friends to you that you should show them your wallet. As they open your wallet right in front of you and take all of your money out, you’re relieved that you don’t have to worry about that money anymore. The manipulation and thievery is almost mystic. Really? Really!
good job to all..somehow it si necesary to get results. talking is cheap,appreciating others for the information is good. directing people where to get help is good but most government agencies do nothing they are not helping but to get their pay check..ask me !! Not even hiring a court officer (attorney) is helping in this kangaroo courts.
Blessing to all.
Ben with all rights reserved.
I tell all my clients to remember that the lenders, banks, their servicers and their attorneys are your enemy- out to take your. They are first, Liars. Second, they are liars. And third They are Damn liars.
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Don’t forget that they are criminals, too!!! Of course, so are the regulators, prosecutors and judges who aid and abet their crimes!