Well, it looks like Matt Weidner has had enough and has written one of the better breakdowns of the entire Fraudclosuregate crisis I have read to date…
The piece below hits about every aspect of the crisis in a manner that is understandable to all.
It is long, but well worth the read…
FraudclosureGate – First Thing We Do, Kill All The Foreclosure Defense Lawyers (Then Throw The Deadbeats Into The Streets)
Has your client made his mortgage payment counselor? That’s all I’m concerned with. If he hasn’t made his mortgage payment then I’m going to grant this Plaintiff summary judgment and the home will be sold.
That’s the attitude of a great many judges in courtrooms across this state and probably the country. The problem with this very simplistic view of the current foreclosure crisis is it completely ignores the much larger social, economic and legal aspects of the crisis and this, combined with ignoring long standing rules of procedure, evidence and case law, has created a dangerous environment where the very parties that created this crisis are being rewarded improperly (yet again) while normal everyday Americans are paying the price for their reckless and criminal behavior (yet again). The failure of courts to consider the more important questions like whether the plaintiff claiming the right to be paid actually has that right has fostered an environment where hundreds of millions of dollars and the title to potentially hundreds of thousands of properties has been transferred to unidentified entities, some of whom may not be entitled to that money or the title to the property. Most importantly, our entire civil court system has been seriously undermined because the rule of law has been suspended in courtrooms all across this state (and presumably the entire country) in the mad rush to conclude foreclosure cases.
Most Foreclosure Defendants Have Not Paid Their Mortgage
T he truth is most borrowers in foreclosure have not paid their mortgages. That’s the easy part of the discussion. The more complex issues are the fact that most of these borrowers never had the ability to make these payments either in the short run and certainly not in the long run. Also, most borrowers in foreclosure could have and would have begun making some payment to the lender had they only been allowed to and if our national economy had not deteriorated such that they are legitimately unable to make their full mortgage payment. Very few homeowners just decided they weren’t going to make their payments. Instead, most became unable to make their payments, some were told not to make payments (in order to qualify for modifications) and others made payments but those payments were returned by lenders who will accept only 100% of what’s owed….and nothing less. Finally and most importantly, it is not at all clear or certain that the Plaintiffs demanding foreclosure even have the legal right to make those demands and they may not even own the mortgages, a fact that was most recently admitted before a Congressional panel two weeks ago as part of the examination of the failed HAMP program.
Most Foreclosure Defendants Never Had a Prayer of Ever Paying Their Mortgage
Now it is true that many borrowers took out loans that were greater than they could afford and it is true they took benefits from these loans, but are these millions of Americans guilty of gaming the system or where they merely pawns in a much larger economic scheme created by a handful of individuals within the powerful banking and financial services industries, a scheme that was expresslyconsented to by elected and appointed government officials from the local level right up to the White House and everywhere in between? Clearly it was the latter. The Subprime Boom of the last decade was not a crafty populist scheme by millions of homeowners who got together to fleece the mighty banking and mortgage service industries. The Subprime Boom was the national economic policy that was designed by the Wizards of Wall Street and aggressively advocated by our local, state and especially federal governments. After the tech bust, we had no new economic output so the only way to fund our national economy was through the creation of a credit-derived, consumer-spending economy. Paying for all our national economic prosperity with a big fat American Distress credit card was a whole lot easier than actually going out and digging ditches or building national parks like the Works Progress Administration so we were all…and I mean all of us…more than willing to “get to work” (spending). It was after all our duty as Americans to go out and spend, spend, spend….we did after all have a consumer based goods and services national economy to support.
It is also an undeniable truth that most of the defendants currently in foreclosure were financially illiterate at the time they took out the loans and these financial illiterates were preyed upon by mortgage brokers and agents of the banks that were far more sophisticated and had far more to gain by selling the loan (especially in the short run) than did the homeowner. The borrower dupes were aggressively solicited by far more sophisticated and overtly aggressive broker salespersons who said and did whatever it took to get that borrower to sign. Whatever objection a homeowner might make to the taking out the loan was met with an aggressive and insistent sales job from the broker, “Don’t worry, we’re going to refinance you right out of this adjustable rate before it adjusts.” Most importantly from a current perspective, most of today’s foreclosure defendants never borrowed one dime from the Plaintiff demanding foreclosure and evidence these plaintiffs introduce to support their demand for payment from the defendant is questionable at best and potentially outright fraudulent. Our courts have focused far too much attention on the defendant (have you paid your mortgage) and not nearly enough attention to an even more important question to the plaintiff (are you really entitled to collect this mortgage)?
Now why in God’s name would any company loan any amount of money when they knew the borrower had no way of ever repaying that mortgage?
Well, the reality is simple. In the fast paced world of subprime mortgage closings in 2000-2007, the subprime lenders were closing loans just as fast as they could get borrowers to put their signature on the bottom line and the individual brokers and the companies were paid in full plus commission for those loans literally before the ink was even dry on the paper. The subprime lenders (all of which are now bankrupt) couldn’t care less if this borrower had the ability to repay and in some cases, they didn’t care whether the information on the loan application was true or correct…they were being paid to close loans. And the “shittier” (to borrow Wall Street parlance) the loans were, the more they got paid. That’s right, the subprime lenders and Wall Street were making more on loans that had no chance of performing than they were paid on loans with good borrowers that would pay. It seems so counter intuitive, why would anyone pay more for a “bad” loan or one that had less chance of paying in the long run than a “good” loan with a stable, credit worthy borrower? Because the big money in the high stakes game of Wall Street Finance was not in the individual loans themselves, but it packaging pools of loans into trusts which (theoretically) held loans totaling $10-$12 million dollars (I say theoretically because most of these loans never actually made it into these trusts), then selling the rights to collect the mortgage payments coming into these trusts, for which the Wall Street Wizards collected huge commissions. Next, and even more significantly, the Wall Street Wizards made even more money from betting that these trusts would not perform over even the short term.
The Investors in Mortgage Trusts Were Either Ignorant or Lied to Or Both
After the homeowner’s loan was closed it was pooled together and sold or “placed” (theoretically) into one (or more) trusts. The right to collect the mortgage payments that went into the trust was sold to large institutional investors. (I say theoretically because we know that in most cases the loans never actually made it into these trusts and there is growing evidence that individual loans were sold into more than one trust but more on that later.) Believe it or not, many of the Fat Cat investors who bought the billions of dollars in “tranches” or streams of payments in these trusts had no idea just how “shitty” the loans in the trusts they were purchasing were because the rating agencies that would (theoretically) grade the loans in these trusts stopped actually reviewing or grading the loans and merely relied on the Wall Street Wizards that packaged the loans to tell them just how high quality the loans were. (Honest Moody/Fitch/S&P these are all Grade AAA loans with perfect credit borrowers!) Fitch, Standard and Poors, Moodys. These were the ratings firms that the world relied upon to grade and value these pools, but these companies stopped actually critically reviewing the pools of loans early on as each company competed to make commissions by offering their ratings. They weren’t getting paid to actually make accurate ratings, they were only getting paid based on the volume of the ratings made. In addition to the passive, volume-based incentives for inaccurate ratings, much of the modeling and assumptions they relied upon to come up with their ratings were just flat out inaccurate. i.e., a recent immigrant with no credit history could have a near perfect credit score that would qualify them for a huge loan despite the fact that he had virtually no income. (a so-called thin file credit score) The thin file credit score borrower phenomena is part of the explaination why housekeepers, minorities and other borrowers with zero financial histories represent a disproportionate population of those in foreclosure. But most of those rather important details were unknown to the Fat Cat investors who bought the streams of payments because they relied on the flawed or fraudulent ratings and they failed to do their own due diligence.
Close the Loans and Con The Investors
So let’s put all this together. Beginning really in 2002 and really ramping up with intensity through 2006, thousands of subprime lenders and brokers were carpet bombing the entire United States with offers to give loans to every single person in the United States that had a pulse. You remember the television and radio commercials. You remember the stacks of direct mail solicitations. You remember the telephone cold calls. I worked with many of these brokers and companies and I watched the borrower criteria steadily decline from first (sort of) examining the borrower’s credit, employment and financial history to quickly ending up where the lenders quite literally didn’t even look at credit scores, employment or financial histories. One week a salesbroker would come in with their minimum loan criteria that would say the borrower could have a 700 beacon score and no bankruptcy then two weeks later the same broker would show up to announce the new program which was no documents, no minimum credit score…just submit the application…we’ll get it closed. In a very short period of time, the subprime lenders went from reckless and irresponsible due diligence on the loans they were willing to take to no due diligence at all. Forget about the borrower making false statements on the loan application, they needn’t make any statements at all in order to qualify for whatever loan they wished. The subprime lenders existed for one purpose and one purpose only…scour all of America and close as many billions in dollars in loans as they could, as quickly as possible. Ignore all questions about whether the loans would ever be repaid….that was some other sucker’s problems that would ultimately end up holding the bag.
A Breakdown in The Contract From the Outset
Most importantly for purposes of many of today’s foreclosure cases is the fact that there was a systemic and profound breakdown between those who originated the loans, those who packaged the loans into the trusts, those who service the loans and those who are entitled to payments from the trusts based on all the payments going into the trusts. The responsibilities of each of the aforementioned parties are clearly defined by what is typically a 300+ page document called a Pooling and Servicing Agreement. These documents are contracts and most of them contain very specific requirements that each of the parties were supposed to comply with. Of particular importance in today’s foreclosure cases are those provisions which required the originators of the loans to actually transfer those loans into the trust. Often there are requirements that the original so called “wet ink” note be physically transferred along with other requirements such as endorsing that note, either in blank or specifically to the trust that claimed ownership of the note. There is also typically language that would have required that the mortgage be assigned into the trust and that assignment of mortgage be recorded, along with shifty language to the effect that the assignment need not be recorded, “unless law or custom dictate otherwise”. The bottom line is that in far too many cases, these important contractual requirements were never complied with by the parties from the outset….and here lies one of the very big problems that plague foreclosure cases today. Had the big shots complied with their own contracts…the ones they drafted, the ones they are empowered to enforce, the contracts that were drafted to protect all their interests, pesky defense lawyers like me would have a whole lot less to argue about today. The bottom line is that in far too many cases, the originators, the aggregators and the servicers failed to properly transfer the loans into the trusts when they were formed in the boom years. Next, the servicers have failed to fulfill their servicing obligations from the beginning and at every step of the way.
The foreclosure mill investigations, the robo signer press, the document mill controversies, these are all related to the fact that the parties to the mortgage trust agreements failed to fulfill their basic contractual agreements from the beginning. If they had simply transferred the loans they claim they own when they were supposed to, they would not have to work to fabricate the ownership and transfer years after the fact. The haphazard, frenetic, questionable and potentially fraudulent nature of all the post filing endorsing and assigning leads to real questions about whether the loans that purport to be held by any particular trust actually are owned or held by that trust. Which brings us back to the question…does this Plaintiff own this loan they’re foreclosing on? Do they really have the right to demand payment from this defendant? And if they really do and if they really are the party that owns this mortgage and is entitled to collect, why did the documents evidencing this alleged right not exist until long after the foreclosure case itself was filed? In the vast majority of foreclosure cases the plaintiff is many steps removed from the original lender. In reality, today’s plaintiffs are more often than not nothing more than (at best) a servicer or straw party for the ultimate owner or investor. (All the more significant when we consider that great effort is being made to conceal the fact that that the federal government is the real party in interest in the majority of today’s foreclosures). The initial sin was the problems with documentation, ownership and transfer at the inception of the loan. With that as the start, in the years since the Subprime Boom Years, we have so obscured and confuddled the real, honest ownership of these mortgages and the post filing attempts to document ownership claims seems like sloppy guesswork based on hunches or supposition. In all my years of defending foreclosures, I’ve rarely had clear, straightforward and intelligible answers to ownership and chain of custody questions answered to my satisfaction and in far too many cases, the alleged ownership and interest in these loans changes even after the foreclosure case is filed with Plaintiffs claiming all sorts of reasons for the alleged change in ownership. What boggles my mind is the number of times judges allow these post-filing substitution of party interest to occur without every questioning why this has occurred or really pushing for some proof that a change in interest has occurred. We’re talking about millions of dollars here and the right to collect that money or take title to the property is tossed around like an irrelevant after thought. This is not an afterthought….it is exactly as important as the question of whether the defendant has paid his mortgage.
A BORROWER HAS A DUTY TO PAY HIS MORTGAGE, BUT HE ALSO HAS A RIGHT TO KNOW WHO IS LEGALLY ENTITLED TO COLLECT IT
Who Shall We Blame (Punish) For Today’s Foreclosure Crisis?
To find out, check out the rest of the post over at Matt’s blog here…
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Don’t you just love the smell of bacon first thing in the morning? Banging on my door at 8:30 sharp, a little over an hour ago, was a deputy sheriff. A little over a month ago my second house in two years was foreclosed and went to auction (OCT. 5, 2010). I’m surprised it took them this long to shove their stinkiing disposessory papers under my door.
I’d been offered the CASH FOR KEYS option the day after my auction (the pay off for me had been 53K but it went at auction back to the bank for 38K). A surprise visit from a local Herndon Real Estate agent shed no new light on my situation since nothing had yet been cleared up regarding who in the name of God, etc., was in possession of my note, and why had they refused countless times throughout the preceding year to allow me to qualify or not qualify for the loan mod program they had offered me this time last year and jacked me around with through four separate foreclosure scares (always mysteriously escaping just in the nick of time,until this last OCT date).
My story is hardly new. There are many complexities with my case, since there were two properties involved. Plus, in a separate case but nonetheless almost as important to me, my mother’s house which was also foreclosed on in 2008 (which remains empty, still scattered with some of our belongings we haven’t had a chance to move or dispose of – plus we still have the key to the place).
The papers from the sheriff’s office state that I have 7 days to vacate or file suit/answer. I’ve read countless hours’ worth of research about what to do at this point but considering the state of affairs at the moment due to all the new developments I’m wondering if there is something I should do – specifically – that would benefit my situation.
MATT! I know you’re a busy guy and aren’t wearing a cape, but when I read your blog I knew you were the kind of attorney I would most want on my team if I had a Fairy Godmother. IF YOU HEAR ME, HELP! What do I do? Should I try to get legal aid in GA to assist me? Should I pro se it, since my best friend works in her dad’s attorney’s office (he’s no help personally so don’t even suggest it; he’s on a cruise and trust me, he’s not who I need) and she’s highly capable (although strapped for time like everybody). I’m in no position to hire anyone, naturally, but I’m a journalist working on stories and a book chronicling this experience and I need an attorney who wants to be the superman character.
Of can I be Superman? I’m cool with that. But I need a cape. Can you toss me one? You obviously have the experience and have clocked in the hours related to this particular crisis in particular to be able to enlighten me as to how to proceed. If you can, will you? This probably isn’t the best place to contact you. This is like a letter to Santa Claus.
But that’s the thing, see. I believe in Santa Claus. You gotta believe in miracles to survive this kind of debacle.
If not you, Matt, then you got any Georgia buddies who owe you favors or like to collect favors owed by Georgia girls with a bone to pick and a story to tell? Tell them I’ll make em a star!
Charge!
Robin Postell
robinpostell@gmail.com
Matt,
You have nutshelled what so many have been taking a stab at – with increasing success, but let’s face it, the subject matter is hardly the stuff of easy reading or even a semi-hot page-turner. Nobody wants to hear anything about this shit. It is the skunk of conversational banter. People become transfixed, their eyes cross and they fidget. You know they are thinking you are a conspiracy theorist spending too much time online in desperation. If you aren’t the one being foreclosed on everyone else (even your mother, priest) think you are a whack-job until every TV screen they see is screaming it at them over and over.
There are voices gaining volume, messages growing clearer with each telling and retelling, and a sense of a unified front gaining substance and purpose. A year ago when I began searching for answers of my own, there were significantly less cogent sources and sites than there are now – and the tempo, conviction and adroitness of new posts each day is evidence that change is occuring. As jaded as our country’s collective psyche seemed to have become in the last near-decade, I was beginning to grow disenchanted with what Americans were capable, willing or, maybe, I considered, able, to do anymore. Chaos unleashed upon them, the numbness blanketing the masses left me with a sense of dread I’ve never known before on that kind of shared humanitarian level. Everyone around me where sheep bleating fluffily on their way to the slaughterhouse – and I was one of them, goddammit.
The empathy of Americans, even as they have been perceived globally as naive, spoiled, egocentric, has been a trademark of their collective spirit. Hunter S. Thompson believed the wave had crested at the end of the 60s and that Nixon had heralded in a new ruling class of jackals that had emptied whatever strength and cohesion in reserve we might have had left.
Mentor though he was, my generation included me. Accepting that the buck had stopped with his mark left solidly and deeply while my own remained too shallow an imprint yet to be fulfilling wasn’t pleasant. In the last two years I have lost my primary residence to foreclosure and am now battling the foreclosure of my second property – which was auctioned off October 5 (of course to a mortgage company which has been out of business for almost a full year, Taylor, Bean & Whitaker), I have renewed resolve and have refused to leave. Though no official eviction notice has been delivered I am living on conjecture and deduction that eventually they will come to get me and toss me and all my shit onto the street.
Or maybe they won’t. We shall see.
The connectivity being created by people taking second looks, asking questions, trusting their instincts instead of the bullshit they’re being told, searching for verification of truths otherwise blacked out by this legion of liars and cons, reading more than the first sentence (or headline) or blog entries, following commentaries and links, having voices, ideas and convictions, is the reason why my own hovering shroud has lifted. Finally, validation.
My instincts haven’t been snuffed out by the mass assault upon us. You give me hope, as I’m sure you do others. Your blog was graciously long and off the top of your thoughts instead of plumbed out of your stores of collected knowledge dulled down by your daily grind interpreting law to financial illiterates and legally-challenged parties who can afford to pay for it.
Sharing that kind of knowledge outside the walls of an office or courthouse is what I was starving for when I first began trying to untangle this mess.
You nailed it. Thanks for taking the time to break it down like that – to distill from the legalese quagmires of the seemingly infinite sources and references all of us joining this campaign are having to acquaint ourselves with without much introduction or trite banter. More attorneys getting their hands dirty enough to pound out that much information and still do so concisely will be one of the greatest gifts available for hungry minds looking for edification.
ROBIN POSTELL
i SOMEHOW MISSED AN IMPORTANT WORD IN MY PREVIOUS COMMENT. RECOVERYLESS RECOVERY SAID THAT WE THE HOMEOWNERS ARE THE CRIMINALS HERE.
Correction: Not ALL of you. Just MOST of you.
the banksters are the criminals when you pay everything they ask for and they continue to foreclose on people. they are sneaky, snakes praying on the innocenty!! they need to die!!!
I just want to express my disappointment with every single mortgage defense attorney /bankruptcy/real estate attorney that I have tried to seek legal advice from. Do they think I am dumb or are they dumb to all of the MBS fraud in the system. i DOUBT THIS IS THE CASE. THEY KNOW THEY CANNOT PRESENT A CRIMINAL CASE IN A CIVIL COURTHO– USE SO WHY TRY AND CONVINCE ME THAT I DO NOT STAND A CHANCE. They are all trying to tell me that there are no free houses and there is no foreclosure fraud that robo-signing is not fraud. Do they really think that we do not know that the foreclosure fraud is just trying to cover up the massive securites fraud in the whole MORTGAGE INDUSTRY. WALL STREET INCLUDED. I guess they are leaving me no choice but to hire a CRIMINAL ATTORNEY AND SUE TO GET MY PROPERTY RIGHTS BACK.
The fraud in the system that you so vehemently complain about can be broken down into TWO main stages;
Stage 1 occurred when finance companies ‘dumbed down’ their own lending requirements in order to qualify and approve loans for any deadbeat who could basically fog a mirror. MILLIONS of deadbeats took advantage of the opportunity to gratefully dig themselves into a financial grave by biting off WAAAAAaaaaaaay more than they could ever hope to chew.
I notice NOT ONE ‘homeowner’ seems to have any gripes about THAT.
Stage 2 is ocurring now that these same deadbeats inevitably hit the proverbial financial wall and can no longer continue making the payments that they foisted upon themselves voluntarily. So the banks are once agian using their bag of tricks (aka Robosigners, etc) to recoup their properties. And BTW, an important aspect of the robosigner debacle that has been sorely ignored thus far is that in order to HAVE a robosigner involved in your loan YOU HAVE TO HAVE DEFAULTED ALREADY.
So what’s the deal? Fraud was FINE when it worked to YOUR advantage (or THOUGHT it would) yet NOW you’ve all suddenly sprouted MORALS & ETHICS.
Please.
CNBC IS REPORTING ON THEIR WEBSITE AT THE STRATEGY SESSION; MORTGAGE LOAN POOLS; LATEST THING LOOMING OVER THE BIG BANKS-THE CARNAGE OF WALL STREET MORTGAGE FRENZY-BANKS MAY FACE $97 BILLION LOSS FROM MORTGAGE BANKS. GO AND CHECK IT OUT, AND AGAIN, GOD BLESS AMERICA!!!!!
CNN IS REPORTING THAT THE S&P IS PUTTING BACK SOME OF THEY PEOPLE’S 401 K MONEY THAT THEY STOLE. KEEP RAMPING UP THE PRESSURE EVERYONE IT TIS STARTING TO HAVE RESULTS. LOOKS LIKE MAYBE THE POWERS THAT BE ARE STARTING TO GET IT. THE AMERICAN PEOPLE KNOW THEY WERE ROBBED AND PILLAGED BY A CORRUPT AND BROKEN SYSTEM FROM THE VERY TOP TO THE BOTTOM!!! THE WHOLE COUNTRY IS FULL OF BOGUS DEBT DUE TO A FALSELY HYPERINFLATED MARKET. THE PEOPLE WANT THEIR MONEY BACK. GOD BLESS AMERICA!!!!!!!!
HI EVERYONE!!!! BEEN DOING A BIT OF FISHING LATELEYAND CAME ACROSS THIS VERY INTERESTING DAILY BRIEFING FROM AMERICAN BANKER ENTITLED; ‘MORTGAGES FORECLOSURE MESS THREATENS TO HIT SECURITIZATION TRUSTEES’ AND STATES; THE FORECLOSURE DOCUMENT DEBACLE, A HUGE EMBARRASEMENT AND LIABILITY FOR MORTGAGE SERVICERS, COULD SOON ENSNARE THE BANKS THAT ACT AS TRUSTEES FOR THE SECURITIZATION. WELL WELL, LOOKEY HERE. IS SOMEONE ABOUT TO FESS UP ABOUT ALL OF THE RAPANT MBS FRAUD? dEBBIkAT POSTED AN INTERESTING COMMENT ON THIS WEBSITE AS WELL. iT SEEMS http://www.worldnews.wordpress.com wrote and article stating that THE WHOLE SECURITIZATION PROCESS MIGHT NOT EVEN BE LEGAL. GOD BLESS AMERICA!!!!!!!
“What boggles my mind is the number of times judges allow these post-filing substitution of party interest to occur without every questioning why this has occurred or really pushing for some proof that a change in interest has occurred. ”
When you consider that how many billions of dollars in fees paid by banks to courts and attorneys and additionally consider that all this money has been stolen from Investors, Borrowers and Guarantors – you would realize why Judges like Jane Boyle in Dallas would side with Wells Fargo rather than the borrower who had never missed a payment. And if you knew that Wells Fargo attorneys were the husband of Judge Barbara Lynn, the judge that Boyle started as clerk for, then it becomes even more clear. Add to it the fact that all the judges’ spouses or relatives in one form or another are on banks payrolls, then it becomes crystal clear.
Just look at judge Vance in New Orleans federal court, whose husband Patrick Vance works for Wells Fargo as a foreclosure and bankruptcy attorney, or ….
what the lenders, mortgage brokers, real estate agents, title agents, and insurance companies do not want to have you and the courts realize is that they did thrive in lying to you.
Loan officers set up call centers where the fake employment and or refefences were verified.
the lenders knew that and their response was to lower their standards to zero.
in an industry where lies, misrepresentation rule what would you expect?
real estate agents will provide investment advice with a license they procured after they finish a thirty day course. most loan officers had no licensing requirements. In florida and in most states many loan officers were convicted felons,
but their bosses and their firms, and their banking and financing enablers are even more criminal.
It is amazing that after 7,000,000 fraudclosures, and 14,000,000 more to come, very few regulators, judges and even the FBI, have just taken the position that all of us are as guilty as the worst felon out there and our crime was to have a dream and to have signed on for a bogus mortgage. our crime was to believe in the misfepresentation, the lies, the concealment, our crime is that we as victims and as they have successfully put out there, we did it to ourselves and we deserve what we are getting.
it is like the judge ruling on a rape case where they have been given DNA evidence showing that you were raped and that the party who did it has been identified, but since you wanted to wear a short skirt for work, you brought it on yourself. you see the premeditation, the fact that the loan apps were manipulated by the loan officers,the processors and the underwriters do not mean a thing. the fact that even if you had indeed lied, every loan package had a set of tax forms which they could have had run by the IRS and your tax transcripts could have been contrasted to the application.
they just did not want to do that. they all wanted to get paid and the banksters needed your signature to provide the stream of payments to the investors to whom they had pre sold worthless bonds.
they kept the notes outside the trusts to over pledge them. And they very successfully have been able to have judges ignore the promissory notes in favor of the deed of trust to rule you owe someone. i am always curious when i see cases with different versions of the note, or when two banks, or two different law firms are foreclosing on the same home and on the same loan at the same time. or when a servicer like EMC is foreclosing on their own name after they transfer their servicing rights to a predatory servicer like MARIX, that is why they need to forge and lie on the affidavits. when they do check their accounting and they trace back your loan, the las assigntment goes back to tge settlemnt day, and thr originl lender was paid in full.
they have to recreate the whole file and give it some sort of legal footing.
the only alleged evidence they have is that you may have stopped paying to them at some point.
but they will never accept they have lied to you until today,,,,,,,……..
what the lenders, mortgage brokers, real estate agents, title agents, and insurance companies do not want to have you and the courts realize is that they did thrive in lying to you.
Loan officers set up call centers where the fake employment and or refefences were verified.
the lenders knew that and their response was to lower their standards to zero.
in an industry where lies, misrepresentation rule what would you expect?
real estate agents will provide investment advice with a license they procured after they finish a thirty day course. most loan officers had no licensing requirements. In florida and in most states many loan officers were convicted felons,
but their bosses and their firms, and their banking and financing enablers are even more criminal.
It is amazing that after 7,000,000 fraudclosures, and 14,000,000 more to come, very few regulators, judges and even the FBI, have just taken the position that all of us are as guilty as the worst felon out there and our crime was to have a dream and to have signed on for a bogus mortgage. our crime was to believe in the misfepresentation, the lies, the concealment, our crime is that we as victims and as they have successfully put out there, we did it to ourselves and we deserve what we are getting.
it is like the judge ruling on a rape case where they have been given DNA evidence showing that you were raped and that the party who did it has been identified, but since you wanted to wear a short skirt for work, you brought it on yourself. you see the premeditation, the fact that the loan apps were manipulated by the loan officers,the processors and the underwriters do not mean a thing. the fact that even if you had indeed lied, every loan package had a set of tax forms which they could have had run by the IRS and your tax transcripts could have been contrasted to the application.
they just did not want to do that. they all wanted to get paid and the banksters needed your signature to provide the stream of payments to the investors to whom they had pre sold worthless bonds.
they kept the notes outside the trusts to over pledge them. And they very successfully have been able to have judges ignore the promissory notes in favor of the deed of trust to rule you owe someone. i am always curious when i see cases with different versions of the note, or when two banks, or two different law firms are foreclosing on the same home and on the same loan at the same time. or when a servicer like EMC is foreclosing on their own name after they transfer their servicing rights to a predatory servicer like MARIX, that is why they need to forge and lie on the affidavits. when they do check their accounting and they trace back your loan, the las assigntment goes back to tge settlemnt day, and thr originl lender was paid in full.
they have to recreate the whole file and give it some sort of legal footing.
the only alleged evidence they have is that you may have stopped paying to them at some point.
but they will never accept they have lied to you until today
Recoveryless recovery, I somehow believe that you know very well why banks are holding on to this inventory. Throughout the entire mortgage loan securitization process banks were nothing more than the interlopers that benefited from the scheme they created, they are still doing this through the servicing entities they created. Not a cent of the banks money was evey used to fund what were really all table funded loans. You will not find these loans in their balance sheets, and all the new flood of income the banks are experiencing, by foreclosing homes to which they have absolutely no ownership to, is being described as “non interest bearing assets” A typical 350,000.00 mortgage generated between 6 to 7 million dollars in this scheme, with every interloper being rewarded through their betting, cross betting, collaterizations, cross collaterizations, credit default swaps, insurance and bail outs, not to mention the many other intermediary financial monetary schemes that ocurred with this process. Now, if we take into consideration that not a cent of the profits generated by the Ponzi Scheme were ever applied as a setoff to the debt itself, then you get a clear picture of why this is called the largest Ponzi Scheme ever devised, a perfect pyramid scheme that left the borrowers, and some investors, out to dry. The reason why loans became available to any and everyone, is because all these schemers were looking for were people to fill in the slots of their special purpose vehicles, period, these vehicles were sold many times before you even signed for your mortgage!
What you guys did is a crime and our job is to make sure that you are held accounable for crimes against the people of these United States, wall street no longer produces wealth, it consumes it!
Amewricans United for Justice dot org
http://www.americansunitedforjustice.org
@Nelson J. Velardo; I had a verbal encounter with RECOVERYLESS RECOVERY yesterday. He suggested that WE THE HOMEOWNERS ARE DEADBEATS AND WE ARE THE REAL HERE. HE ALSO SAID THAT HE WOULD LIKE TO SEE ALL OF US THROWN OUT OF OUR HOMES INTO TRAFFIC AND BE RUN OVER FOR CREATING THIS FINANCIAL CRISIS. I DONT NOT KNOW WHO THIS GUY IS TRYING TO REPRESENT BUT I SAY WE ALL VOTE THIS PERSON OFF OF THE ISLAND OF 4CLOSUREFRAUD.ORG. HE IS A SICK INDIVIDUAL AND DEFINITELY WORKS FOR SOMEBODY THAT DOES NOT HAVE OUR BEST INTEREST AT HEART. HE IS SCOURILESS.
I SOMEHOW MISSED A VERY IMPORTANT WORD IN MY ABOVE POST. RECOVERYLESS RECOVERY SAID THAT; WE, THE HOMEOWNERS ARE THE CRIMINALS HERE!!!!!!!!
I agree ..
that recoverless recovery should be voted out
I am just guessing about what banksters might do with all of the houses that they have already fraudclosed on. I heard a little while back that the Chinese are coming over here and buying up alot of them for rental properties. Then there is the not very small matter of all of the missing 401K money and the other pension and retirement funds that have disappeared into thin air. Maybe the banks will have to give back alot of the fraudclosed on houses to the Government so that they can house the millions of soon to be retired people to live in because they will also be fraudclosed on when they can no longer afford to pay their mortgages any more because social security won’t be enough to pay their mortgages and if they are to young to collect SS and lose their jobs due to the crappy economy and nobody wants to hire them because they are too old, where will these people go?? And oh yeah, I forgot, what about the 2.5 plus million people already fraudclosed on and thrown out into the street that still can’t find jobs?? STOP THE FRAUDCLOSURES!!! THIS IS ALREADY A MONUMENTAL DISASTER!!!!!
The fact that the Chinese are buying the foreclosures in not just a story, My son was in Hong Kong last year and he told me that one of the biggest businesses in China is the “foreclosure tour.” He said that you go to one of the shops advertising foreclosure tours and look through books of foreclosed properties in the U.S. You then pick several houses you want to look at and arrange a tour of those houses.
our goverment has sold us out…traitors. other countries are buyiong the homes they have stolen from the american people. what else are they going to steal from us? our dignity, our integrity, our rule of law, its all gone. where are the people who have been put in the streets? the city have they hiddne out of sight some were? they dont even allow people to beg on the street corner, the police go and watch them like a common criminal and arrest them. the homeless must have been put somewhere out of sight , the tourist wont come to florida if the homeless and beggers are in clear view.
My Fellow Americans,
There you have it in a nut shell. Now it is up to you, if you really want to be the real owner of your home, you better find out who really owns your note. Otherwise, when you finish paying your mortgage, you are going to be up for a big surprise. I don’t think anyone in the right mind would let go of this information and do their due diligence now. Well, but then again maybe not. I had sent hundreds of emails for the whole year letting people know about MERS and to my disbelief I did not get one email back or even one call.
We had been brain washed by the government and the banks to believe they are the good guys and we should be calling them for help. Look where we are now today. Three years later and we still have not get a dime from the government to help with the financial crisis. How many billions the banks got, GM, and all their agencies created to covert up the whole mess. Do you really think the government and the banks did not know this was going to happen from 1997 to 2007?
Maybe we should go back in history and replay all their hearings and commercials.
How little we knew then and what we know now. Did you ever heard about MBS, CDS, PSA, CDO, Securitization, MERS, Derivatives, and Wall St? Did I left anybody out. Uhmmm,,, Let’s see Oh! Mr. Ponzi Scheme Maddox. How many years and how many billions was he able to make and get away with until the SEC decided that was enough and do something about it?
Well, now how many people do they need to put out of their homes with the Fraud of faking everything on the chain to cover up all their wrong doing just because they screwed up when they destroyed the paper work and did not transfer the notes to the Trust and breached all the contracts with the PSA, and the rules and regulations of the SEC not only to scam the homeowners but the investors, and at the same time, the Government, because the banks got away not paying taxes on all the notes that were not transferred and registered as assignments to the new note holders.
What is worse now, the banks hired the biggest law firms to represent them and lie to the court Judges showing not respect for the law, the government, and the people in this country.
We now understand what took place then and what is happening now, but what is next, what are we going to do about it, are going to wait for the government to do something. Every time I talk to people, they said something is got to happen. The government got to do something. Well, I have news for you, my friend. The government is too busy trying to save their own skin because they know they are in it with the banksters and Wall St. They are too busy getting re-elected to continue the cover up as long as they can, wishing the people will never find out, or they are so lazy and stupid to do anything. This is why we heard the Feds releasing $600 billion dollars next day after the election to keep people’s mouth shut and keep their spending spree, specially now that the holidays are coming in a couple of weeks.
Our president is traveling all over Asia and Europe to build a good relationship with the world so Americans have jobs in the future. Do you really think Americans are going to work in India, Asia, and Europe in the next decade or is it the other way around? Do you know how many visas the U.S. grants to India alone every year?
And you thought the Mexicans are the ones who are taking your jobs. Have you seen anyone from Mexico with a nice shirt, a nice pair of slacks, and a lot top on his shoulder going to work every day for the biggest software companies in America?
Why Americans are not learning computer science, graphic designer, IT techs, math and programing?
If you decided to wait for the government to do something, then all the economics, the best litigator lawyers, and the best professors at the greatest Universities, the legislators, the regulators, and the Judges are all wrong.
If this happens, we will wake up one day working for the government and the banks will own all our homes. God Bless You and God Bless America.
@B St Laurent: BRAVO!!!!!!
Q. Has your client made his mortgage payment counselor? (from the Judge)
A. (Don’t answer this question directly). The answer is: The bank has been paid in full your Honor.
Your Honor, I did not make my mortgasge payment when I found out I didn’t know who was the right company to receive it. I requested a notorized statement stating they had my original note and never got it. So far, I’ve paid 4 different companies.
I do not want to finish paying the remainder of my 30 year mortgage and not receive the original note marked paid in full.
I have a check book right here and will write the amount owed to whoever you tell me to. If the company you order me to pay turns out to be the wrong company, I want you to know I’ll be suing that company and YOU!
Now, who do I owe?
(defendant) Your Honor, I admit that I fraudulently requested that $650K loan on my $10 per hour salary in the hopes that the house I was buying would quickly double in price within 2 weeks so I could extract all the equity and buy myself a new car and jetskis without so much as breaking a sweat.
(judge) I find you GUILTY! Bailiff, please take this POS out back to the alleyway and shoot him in the back of the neck twice.
NEXT CASE!
Can someone please remove the completely abominable post just above by Recoveryless Recovery?
Thank you.
It will be nice to know what will happen if the banks are going to have all the homes?
Employee benefit?
They DO! No need to wonder either, just take a quick gander at what’s going on all around us right now; banks are hiding their massive inventories of housing in a desperate attempt to avoid flooding the RE market with MILLIONS of empty condos and homes whoch would rapidly drive-down property prices to bargain-basement levels. WHERE THEY SHOULD BE!
HIDDEN? lmao All you have to do is go into any community and LOOK!!! Homes sitting empty in clear view. Some areas have whole blocks of homes sitting empty with grass high as you and who knows what lies inside.
What lies beneath?? SECURITIES FRAUD!!!!