The Fed Is (Finally) Talking About Toxic Titles

Thank You Deontos: This is the elephant in the living room. Once addressed it will be the largest title problem the country has ever seen. There is no continuity in the chain of title. There can’t be any such continuity.

The phrase “toxic title” is a good one. Use it even in your correspondence.  

The reason Banks can walk away is that they don’t really own it anyway, even if they received a certificate of title from a foreclosure sale. These banks are merely picking the low hanging fruit and taking property where they can get away with it. This situation is fraught with city and state actions against the financial institutions for abandoning their responsibilities as owners. Lack of maintenance and failure to pay taxes are easily explained by the fact that the “Bank” never advanced one penny for the loan. They have no intention of going from zero investment to an investment of tens of thousands of dollars per house.

The Fed Is (Finally) Talking About Toxic Titles
By Mary Kane 12/10/09 9:04 AM

It looks like the problem of banks walking away from distressed properties is finally getting some serious attention. Federal Reserve Board Governor Elizabeth Duke tackled the subject in a recent speech, Housing Wire reports. She detailed a disturbing trend TWI has been following since January 2008: Banks abandoning properties in severely troubled markets even before completing the foreclosure process, leaving the cities stuck with “toxic titles” and trashed vacant homes.

“In the most devastated neighborhoods, some lenders do not even complete the foreclosure process or record the outcome of foreclosure sales because the cost of foreclosing exceeds the value of the property,” Duke said.

These “toxic titles,” she added, have placed a large number of properties in legal limbo.

Complete article:

12 Responses

  1. Email Shows GOP Deal w/ Banks To Screw Homeowners

  2. Upon futher investigation it seems that the Bank of New York Mellon is successor trustee for JP Morgan Chase as trustee for certificates holders of bear stearns asset backed securties,Inc. Asset backed certificates series2003-2,c/o EMC Mortgage corp it’s successors and assigns , all it’s rights, title interest in and to a certain mortgage, together with the note executed by……… to MERS acting solely as a nominee for RBMG. witnessed and signed by the famous scribble looking like a big U. By one and I believe I’ve seen that name on here before LIQUENDA ALLOTEY as VP !!!!! of MERS. He is also a forclosure specialist for fidility. HMMMM. Let’s see according to the Prospectus of the 2003-2 series we have some major fraud going on. Securities exchange commission needs to start a formal federal investigation. ALOT of BIG companies in volved in this. Can you Believe this anyone wanting to Bust all these people need to contact me. Criminal , fraud, Federal Agency I have it all. Any comments ????

    Let’s talk toxic!!!

  3. Please read. Mortage Notes are worthless (not my opinion) FDIC not protecting the public. Here goes long story, I have the note stamped fully paid and satisfied properly endorsed with the signature stamp of the VP of RBMG dated March 18,2002 along with a letter from RBMG stating that the loan is paid in full. RBMG was aquired by NETBANK, The FDIC shut down NETbank September 28,2007.ROD office will not satisfy the mortgage because they say they don’t make copies of the note, only the mortgage go to RBMG for satisfaction of lien. AS stated RBMG/Netbank are in fdic receivership.Now according to the FDIC as long as the loan was paid off prior to the receivership and that the failed corporation is in receivership they can satisfy the lien. proof of payment to include such things as a copy of the “PAID” note, cancelled check , HUd -1 or anything else that would indicate payment in full. I sent the paid note, a letter stating that the loan is paid in full, and a copy of the envelope stamped lien release on the outside. The FDIC refuses to issue the lien release saying the paid in full NOTE is not PROOF that the mortgage has been satisfied!!! The letter is not proof of payment. This is where it get’s even better the FDIC said they went to a public website that shows their has been an assignment from RBMG/MERS to the Bank of New York Mellon on March 19th 2009. RBMG IS DEFUNT has been since the take over by the FDIC in 2007. Mers said the MIN # has been deactivated since 2002 and that the servicer is The FDIC as receiver for NETBANK/ RMBG. I ask 3 supervisors at the FDIC for a formal investigation, I have reported to this to the inspector generals office, the office of omsbudman.I will not stop till I get answers. Media outlets, senators my state attorney general as there is some questionable activity surrounding this. SO forget produce the note cause I can and nobody cares. It is funny that these so-called mortgage companies can sell a non- existent NOTE to in vestors, Take your home by Forclosure on a Lost note / non existent note. But when I have the real thing original in ink paid in full it is not worth the paper it is written on, FDIC, Mers, Morgtage compaines are all crooked!!!

  4. with all due respect..
    almost everything that will appear in ANY main stream media has an alt agenda.
    There will be no help published from a “complicit gov agency or associate ” or anyone else that had a hand in this…..,including 98% of the media outlets,its just bad for their bottom-line [profits]! So just consider why would they be “releasing any info”.its only lip service,… or back peddling .
    On 12-12-09 we just witnessed once again ; who controls the senate & the house.. its the banks,the fed,wall street.

  5. To John Anderson; judges are not all getting it right, only a small To John Anderson; judges are not all getting it right, only a small handful are…..Sadly we see many judges presiding over cases in which they own, but do not have professionally managed, stock accounts and or, were former law partners to firms who’s associates to cases in which they preside over so, yes, follow the money…..and checkout the judges financial disclosures as this is the tell tail of what is really going on….cronyism at its finest and best……Yes, there are good judges too, THANK GOD for the FEW!!!!!!

    It is disgusting what our legal system has been reduced to…..with Wall Street, Banks and Government all pandering to the courts favor in support of corruption and cronyism with their unbridled treason and extortion of its citizens wealth. Here in Maryland, we have a situation where knowingly fraudulent affidavits were used in foreclosures, i.e., the lawyers signature on the affidavits were forged…..or, the lawyer lent his signature out to staff,(the later being what I suspect truly happened), as the law firm is huge and does all of MD States Tax foreclosures……very, bad stuff…the good is that the tainted sales can be clearly set aside…… Marylanders, do not hold your breath, your appeals courts here too are intent on ensuring Marylanders are deprived of their due process rights and looks past their citizens constitutional rights, a grave travesty and sign of our times.
    Now, the courts and Judges have been made aware that over 8000 uncontested foreclosures were frauds upon the court and exacted from fraud and forgery……The JUDGES…….WHO DO NOT GET IT RIGHT, have yet to cancel all the cases Sua Sponte, or on their own!!!!

    These are very serious charges against the foreclosure mill lawyers ones to which, gratefully Neil has been blogging and been addressing these treasons and frauds upon the courts and public for some time now, thus Maryland Bar, legislators and regulatory agencies, must get their heads out of the ground and stop playing ostrich!!!!!!

    This case is going to be a pivotal case here in Maryland who’s judiciary has always taken an unprecedented and sympathetic view of the banksters…..Maryland’s recent changes to real property ann. code, albeit is a start to reform the draconian and out dated non-judicial process here in MD. The updated changes to the law, allows homeowners to do what they always had the power to do under revised code, but consumers have/had a right to file an exemption to the non-judicial foreclosure. The problem is, and continues to persist is that MD judiciary routinely denies homeowners petitions for exemption to the foreclosure. This petition to exemption to the sale is the WHAT….THAT was supposed to turn the case into a judiciary proceeding ……this does not happen in Maryland….citizens are mislead the hearings is only in rem and is against property…what is wrong with in rem abuse as it what is clearly happening here.

    The motion for exemption, in theory and by law, should have automatically converted the case to a Judicial foreclosure hearing and trial by jury. To the contrary, MD judiciaries, our elected officials, the judges, stubbornly deny, homeowners their constitutional rights to due process and right to defend their land against treason, fraud and financial crimes).

    Why Maryland judiciary feels it is always in the best interest to return the property to the bank, displace her citizen and render the citizen homeless, and then tout under equitable remedy the homeowner still owed the money WHEN, BY FACT AND LAW, THIS WAS NEVER ESTABLISHED, THE DEBT WAS NEVER VALIDATED AND VERIFICATION OF THE DEBT NEVER OCCURRED, THUS, RENDERING VOID JUDGMENTS AGAINST MD/HER CITIZENS……awful, awful, awful stuff that must stop.

    While the MD courts now allow the homeowners a right to defend against the foreclosure action, the new changes to MD real property code, forces the consumer as a condition of the being allowed their rights to due process and defend, in order to make the motion, the homeowner is tricked into confessing to owing of the debt or not owing the debt when, by fact and law, the courts are overreaching, going past Subject Matter Jurisdictional requirements set out in MD statutes and codified in law and MD real property ann. code 15-101 which requires the retroactive recordation of all instruments of Negotiation and their assignments with, documents same as does UCC. Why MD real property changes are not helping citizens hold on to their property when they have been defrauded as tragically the requirements of confessing to and unverified and validated debt, tricks a confession of the borrower that may well be unjust in almost all circumstances, especially when contract disputes arise.

    While MD heart was almost in the right place, this bad law making lends to unfettered abuses by the courts who then make findings on hearsay and forged documents before it has even been established that the courts have the requisite and necessary Subject Matter Jurisdiction, (to which we all know they lack due to the systematic frauds in the instruments).

    God Bless Gov. O’Malley, he has made significant changes to the 215 year foreclosure process here in MD however greater changes are needed to go further and deeper with greater regulatory oversight to MD broken judiciary system that unabashedly promotes and ensures her citizens are denied constitutional access and due process rights to defend their property and fend off corrupt business who continue to exact financial crimes against her/MD citizens.

    Local Marylanders, please contact us for the case and foreclosing lawyer as we will be happy to share these events and hope this is your foreclosing lawyer. We will be watching the outcomes closely and will be sharing the case with all, noting the first case ruling should be made later this month and involves Country -Wide, Bank of America and the other derelict, deadbeat banksters and their crony’s. God bless Neil and us all, Tim, 410-257-5283

    Dam Bryce, I have never heard it coined that way but, that is exactly what it is Bryce. Do you read naked capitalism blog and credit slip? Do, they both are very good as is counterpuch, George Washington, pro-se blog too, all three as saying just what you are saying, and what I have known for the past hell ridden 7 years, I just never thought it was this big! This is why the FTC, HUD, AG AND CONGRESS DID NOTHING WHEN I WROTE THEM….AND YES I DID…..DO NOT THINK I DID NOT…..

  6. A friend of mine got a call from United Guarantee Ins Co. who is an AIG subsidiary, saying that his 2nd mortgage had been charged off, they were then paid off because of an insurance contract(CDS) and now United Guarantee claims to be the Note holder.

    They even mailed him a document that said, “Assignment of Note” and in the language said “for value received from insurance proceeds exchange” Suntrust assigns the Note and Mortgage to United Guarantee Co. or something to the affect.

    I’ve never seen and Assignment of Note, I wonder if AIG is even aware if the UCC laws, where you must negotiate a Note by signing the reverse or attaching an Allonge.

    This is crazy, has AIG foreclosed on anyone yet? I don’t think they will as it will expose them for their ponzi scheme, but they will try to scam innocent homeowners for $$$

    They offered my friend a settlement, but he’s playing hardball. They haven’t recorded any assignment into the record. We’ll see.

  7. Never quite sure where to post things so….I’ll post it here.

    Article addresses Goldman – AIG relationship. Disgusting but interesting read.


  8. True enough, the actual property is just the icing on the cake. Payment from the CDS’s and insurance is what butters their bread.


  9. Bank names? IT would sure help foreclosure defeneses if we could show the banks names that are walking away from property and saying they don;t actually own them. for example XYZ bank walks from 20 homes in cleveland an in hot water with the city.

  10. They only foreclose to get the insurance or they wouldn’t do it at all. What’s the point? Too bad it took the government this long to even pay any attention now that everyone’s credit is shot, they’re living on the street and it never had to happen.

  11. Total Meltdown,
    I don’t think the banksters who if they don’t own at least lease, the federal government, who gave them the money, to explain how they were able to stay afloat after the economic emergency, that I heard the start signal for. I guess it was John McCain cancelling his campaign, that got my attention. Things were only a little bad before Bush started sending out stimalist checks, A bad signal that should have never been done and I But it did not really get bad till McCain had to
    It don’t matter, I guess we will be paying everybody in amero’s
    The banksters, who control the legislative and as far as I can see the executive branchs of our federal government are hell bent to bust this country.
    Ether through cap and trade, global warming hogwash, Government health care or some other black flag terrorist event.

    The GOOD NEWS is even though they have many politico’s in there pocket, not so many judges.

    The courts may be the only thing that can save our homes and our country.

  12. As if this will make a difference to a judge. How are they paid? Who is funding all the lawsuits that pay their salaries. Follow the money.

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