New York Presses Banks on Foreclosures

It is gratifying to see state officials taking a proactive stance. As comptroller, Mr. Liu should consider the details, however. The fact remains that modifications are largely a sham. The only lender of record is the usually the originating lender. The parties charged with modification have little or nothing to say or do about modifications.

What is necessary is for Mr. Liu and other officials to study this issue and perhaps read the Big Short by Lewis. Until they realize that this can never be as simple as they want it to be, and that the mortgage mess is a train wreck still in process, it will be impossible to have meaningful modifications of mortgage in which the investors are protected to the maximum possible extent and the homeowners are protected as well. Principal reduction is only a bad thing from the prospective of the intermediaries who actually have been receiving all the money but actually have no financial interest in these mortgages.

From the prospective of those who actually have money at risk that was advanced for the funding of loans principal reduction is the answer for them as well as the borrowers. It is only when the investors step in directly and settle these mortgages that they will get anywhere near what is needed to mitigate their losses. Leaving it to the intermediaries who cheated them in the first place, is only allowing the the diversion of funds and the distracting misapplication of funds and documents to the detriment of the investor-lenders.

July 13, 2010

New York Presses Banks on Foreclosures


Hoping to succeed where Washington has largely failed, New York City’s comptroller, John C. Liu, and six large unions plan to begin a campaign on Wednesday to press the biggest banks to do more to prevent foreclosures in the New York area.

Mr. Liu said the group would send Citigroup, JPMorgan Chase, Bank of America and Wells Fargo, among others, a letter that criticizes them for dragging their feet on modifying mortgages that are underwater or delinquent, and that urges them to do “everything possible” to avert foreclosures.

Depending on the response the coalition members get, they might move pension funds and bank deposits to other institutions, according to union officials.

“The federal programs in place just aren’t having a desired effect,” Mr. Liu said in an interview on Tuesday. “People are losing their homes. It continues to be a drag on our regional economy.”

In the letter, a copy of which was provided in advance to The New York Times, Mr. Liu and the presidents of six of New York’s most powerful unions will ask the banks to immediately name a high-level official to handle appeals of borrowers who are denied mortgage loan modifications.

Their letter criticizes the banks for “unanswered phone calls, delays in the modification process and multiple requests for homeowners to resend paperwork already submitted.”

“Banks like you can do more,” the comptroller and union presidents write.

The coalition will officially announce the effort a news conference on Wednesday. The unions involved are the United Federation of Teachers, the 1199 health care workers union, the Transport Workers Union, the District Council 37 municipal employees union, the New York Hotel and Motel Trades Council, and Local 32BJ of the service employees union.

The group said that 265,000 mortgages in New York State — 13 percent of all mortgages in the state — are past due or already in the foreclosure process.

The officials ask the banks what efforts they have undertaken to respond promptly to customers’ requests about modifying mortgages and to suspend foreclosures while evaluating a borrower’s eligibility for loan modification.

Michael Mulgrew, president of the United Federation of Teachers, said hundreds of teachers and teachers aides faced foreclosure. “We’re trying to help people who are doing the right thing,” he said. “It seems that the banks are not really doing a lot on this. They’re not trying to negotiate in many instances.”

The letter asks the banks to respond by Sept. 1, with some of the signers suggesting there will be a second letter that demands the banks take specific steps.

Federal officials, from President Obama on down, have tried various techniques to persuade banks to make more loan modifications and take other steps to reduce foreclosures. But so far, those steps appear to have done little to stem the foreclosure flood.

Mr. Liu said that “it’s premature to talk about sticks,” like moving city funds out of banks that are deemed unresponsive.

But Mr. Mulgrew said he had alerted the trustees of his union’s pension fund to the situation, raising the possibility that they might take some action. Union officials say pension funds are hurt by foreclosures because they weaken the economy and hurt bank profits, helping to drive down bank share prices.

Richard Simon, a Bank of America spokesman, said his bank had led the industry in addressing the foreclosure crisis. In an e-mail message, he said, “Bank of America is committed to helping our customers remain in their homes, as demonstrated by 650,000 modifications we have completed since January 2008, including about 160,000 so far this year.”

A Citigroup spokesman, Mark Rodgers, made similar comments. “In the first quarter of 2010, our various modification and extension programs helped many families stay in their homes in New York State, outnumbering those who were foreclosed by approximately 54 to 1,” he said in an e-mail message. “Nationally, from Jan. 1, 2007, through March 31, 2010, Citi has helped more than 900,000 homeowners avoid potential foreclosure.”

12 Responses

  1. I read:

    Michael Mulgrew, president of the United Federation of Teachers, said “It seems that the banks are not really doing a lot on this. They’re not trying to negotiate in many instances.”

    My friend. Please read FAS 140 and tthen understand it is hard to open up a closed end tax exempt fund .

    It is even harder to return assets from a pooled investment having tiered risk layered yields and live derivitives outstanding.

    …also remember what your told. For what you sold you cannot make bold, claim back nor modify.

    Now they can offer you a test or trial mod program where you first turn in your income and assets for verification. —Then after showing what you can spare without feeding the kids , you can pay them 4 to 8 “fool” payments for the right to have your home go to sale.

    Oh yes. Your payments helped them kill the time (CPR) indemnity needed to run down the prepayement term needed to maximize the insurance claim that pays your deleted home off free and clear. (more detail here later).

    Going to court next week so stay tuned.


    Testimony is not from an attorney. Only an attorney can afford you your rights and determine your damages.

  2. IndyMac Crack Dealers .
    By M.Soliman

    Now we do have claims of fraudulent lending practices brought against Banks in allegations of material breach, misjoinder unlawful estoppels and prayers injunctive and declaratory releif and even consideration of Sherman Act violations and antitrust. Now what? Indy Mac Officers being indicted!

    How shocking!

    I mean being sued, not Indicted . However, getting sued by a public Federal Agency is the alternative to a Grand Jury Indictment. The introduction to the forthcoming prep walk shall occour soon, that I am sure.

    DId the Chairman not pass away while eating a pizza at a football game?

    But I have asked over and over again the question. ”
    Why does the second or third largest ever bank failure maintain only 30 branches.” Where are the deposits? Where’s the beef? Where are the depositors….get it?
    I’m pulling away from the SEC and UCC (wait for the FTC they are formidable at getting huge settlements) and care little about the PSA and 10K for delisted corrupt registrations.

    My arguments focus on the following:

    -What does a depositor offer the Fed reserve would normally provide?
    -Why is derecognition to sole bargaining chip for stopping foreclosure?
    -Why are the FDIC and One West Bank Fest distancing themselves from this regulatory exempt bastard child?
    Why does the FDIC execute assignments for assets that Indy Mac Bank does not own?
    -Does a delisted SEC entity provide the culprits (Sorry Raja- love the word) TARP payback solutions in the form of a Treasury Guarantee for new securities offering?
    – Why is the Bank One West the fest so excited to show up to court to claim the rest of Indy Smack assets in foreclosure when they publicly denounced anything to do with Indy Mac Crack?
    Remember, a few years back in the Iran Contra Oli South Affair? If you’re going to step up the effort to control drug trafficking then intercept the drugs AFTER they are sold and take the CASH not narcotics .


  3. Before I forget.
    I was at the courthouse getting certified copies of documents, and happen to mention the Notice of Acceleration or Notice of Foreclosures that are in the courthouse.
    So I ask her does she give copies of that, because right now I can see it online on a web page, but when that month rolls around next year, it will be wiped out.

    She tells me..oh we have it indexed by name, and I can give you copy for $1 a page.

    I asked, “can I get a certified copy if I want one?”

    Get this..are you listening…okay…ready?

    She says, “Those aren’t really filed in our records, we just hold them for two years and then we destroy them.”

    I was shocked.

    So I tell a woman who is looking at a folder..”You know they only hold it for two years and then destroy them.”

    Mrs. Smartey Pants tells me

    You have a record of the foreclosure sale…its called a Trustee Deed.

    I told her, yes, but for discovery, you only have two years to show what was in that document.

    She looked at me as if it didn’t matter.

    Well for me it does.

    Mine was a ‘combination document’.


    Why does it matter?

    Things that happened in that one document that was a notice and not ‘really’ recorded, is key to what happened later that was recorded.

    To think I’d lose that information in two years, and to bring it into court, it’s hearsay, after two years is a ‘crying shame’.
    It was filed in may, and that would leave about 1 yr and 10 months before it disappears.

    That may explain why some people are ‘quote’ fighting ‘unquote’ for almost two years.

    Something in that document has to be destroyed for them to feel more powerful

    My suggestion, introduce it in your answer to a suit as an exhibit, so it’s on file in the court records for all eternity.

    Light and Love

  4. To respond to this post, the reason for the comment below is a deception, by Mr Liu (OMG I typo’d and put Mr. Lie. LOL):

    Mr. Liu said the group would send Citigroup, JPMorgan Chase, Bank of America and Wells Fargo, among others, a letter that criticizes them for dragging their feet on modifying mortgages that are underwater or delinquent, and that urges them to do “everything possible” to avert foreclosures.

    Those foreclosures are theft, the banks lost the titles and there are a bunch of trustees holding the title to our (we the people) homes and will only release it to the homeowner if the ‘beneficiary of record’ tells them the obligation is satisfied.

    With securitization that won’t happen.

    The trustee attorney will release it to the beneficiary who has both the Note and the Deed

    With securitization that won’t happen.

    So the bank can’t get the title and the homeowner can’t get the title and the bank can’t resell the home without the title, and the homeowner without the title is still the legal owner of the home, their title is just not released to them.

    Remember this.
    If it’s in the media, it’s there to get you to think the way ‘they’ want you to think…the agenda is for ‘them’ and not ‘you’.

    If we assume all trusts are void, and all beneficiaries abandoned their claim or split the note and deed to where they have no recourse for getting that title and ‘can’t’ ….’really can’t’….legally foreclose;

    Then it would make sense a modification is like the homeowner refinancing their house under a new Deed..again! and this time with even less rights than they had in the Deed they had before.

    Please people..we say people are sheeple, and people follow the masses, and all kinds of things, but I’m telling you…this article is meant to get you to think a certain way and do a certain thing, and when have they ‘ever’ given you useful information.

    We wake up when we do the ‘opposite’ of what they say.

    Consider this ‘opposite world’ and do something ‘different’.

    Sorry for popping that in there.
    I am a non-resident alien, I do not give legal advice, all rights are reserved and all communication is at arm’s length. All parties are operating in their own right such that no party is in a position of trustee and cestui que trust.

    Light and Love

  5. Had 10 days to respond but if I wanted a jury trial I had to pay a jury fee within 5 days…sorry for the misinformation, it was unintentional.

  6. I know nothing and if I think I know something I know nothing.
    I don’t give legal advice because I don’t know legal things.

    Got served with a forcible detainer.
    Only got 5 days to respond.
    Took two days off work and responded. My answer was 17 pages long. Whew! Total focus.
    Okay, okay, the first page and a half was ‘definitions’, and the last page was a comment or two and notarized.

    Do you know that if you want to notarize a document there are specific ways to notarize and based on how you do it, it means something to the state?

    Like I used the notary format that was for a
    For a natural person acting in his/her own right:
    They have notary formats for
    Ordinary Certificate of Acknowledgment
    For a natural person as principal acting by attorney-in-fact:
    For a partnership acting by one or more partners:
    For a corporation:
    For a public officer, trustee, executor, administrator, guardian, or other representative:
    Certificate for Proof by Witness
    Then there is the JURAT and the ones for VERIFICATIONS and OATH OR AFFIRMATIONS

    Okay, I digressed, sorry, but anyway, finally go the forcible detainer, ie. eviction notice.

    My heart beat fast for about 5 minutes, maybe less, and then it was time to get to work.

    Officer who delivered it was nice. Told me it was ‘time sensitive’.
    In bold on it, it said,
    If you don’t respond, a default judgment may be made against you.

    It was time to get to who’s suing me? The pretender lender? No.

    A Title company who said they were the ‘titleholder’ and they needed a remedy from the court to issue a ‘forcible detainer’ to help them get possession of ‘their property’ (emphasis added).

    Wow. All these months and it finally comes down to this.

    So I formulate a response, and then sleep on it. I reformulate a response the next day, hardly getting any rest, and slept on it.
    Each night I’d as my ‘higher self’ (yes there is one, hope I don’t infringe on your right not_to_know) but I asked my ‘higher self’ what do I say to make sure the judge realizes in my answer that fraud was involved.

    So I’m looking at the thing, and I know the first thing you do is correct the titles they give you.

    When someone sues you they call you a Defendant. Are you?
    I mean the legal definition is of A person defending or denying; the party against whom relief or recovery is sought in an action or suit…

    Defend – to prohibit or forbid. To deny, etc..

    So you see the label if accepted says they called you a Defendant and now you if you are defending, as in the Defendant definition, you are prohibiting, forbiding, denying, a party who is seeking relief or recovery in an action or suit.

    Do you think you have a running chance if that’s the ‘first’ thing you are doing, before you get into court?

    If a judge knows that the definition, how are they going to treat YOU?

    If you hire an attorney, it’s a 50/50 chance that he can succeed in prohibiting, forbidding, or denying a party who is seeking a relief or recover in an action or suit.

    If you are served an ‘forcible detainer’ and you have 5 or 10 days to ‘prohibit, forbit, or deny the other side relief’ how strong do you think your case can be to create it within 10 days.

    Correct that title. You Define yourself…you give yourself a name, you can call yourself a ‘real man’ or a ‘real woman’ or you can define yourself as a ‘christian’ or a ‘loving person’, who cares. They created the definition of Defendant and use it from their dictionary, you create a name for yourself and give them the definition in your answer.

    I do not know legal things so i do not give legal advice.

    Needless to say, you can’t give anyone ‘ideas’ or ‘opinions’ about something unless you have seen it or had some exposure to it.

    By the nature of the internet, there are people who work for these industries that troll these websites and put out bad information.

    I forgive you, but I’d like tell you that we are all creators.
    So if you are a disinformation agent, so to speak, then you have blocked someone’s understanding of something that they needed help with and relied on your answer to help them.

    As Creators..and yes we are…hope i don’t infringe on anyone with that info, but we create our environment, so disinformation agents will find that people they trust will lie to them, and they relied on that information to help them or make them feel safe.

    So your job may lie to you and lay you off, when you thought’ you’d keep a job, or your significant other will lie to you and you’ll find out the relationship isn’t a true or solid as you thought, or your insurance agent will lie to you and not settle a claim properly, or any number of lies that you depended on to be true and they weren’t and you feel you were harmed.

    So be careful what you create.
    Having gone through the process, except the very, very end, since I’ve only responded I don’t know what will happen.

    There are many sections to the complaint. The ‘understanding’ is to respond to each one point for point or whatever.

    Yeah. Okay.

    Well lets just say, there’s the Complaint, and then the Jurisdiction, and then some Certificate of Service, and then some last area.
    Hey, after writing a response for two days, I don’t want to look at it again.

    In the first part, I answered, and corrected myself from being called a Defendant. Stated that was my legal title they are holding.

    The second part about jurisdiction…that’s a complicated part.
    Lets just say, it contained my longest answer.
    Part of it said the court did not have jurisdiction because the Plaintiff was suing the wrong party, and part of it said, a
    Fraud foreclosure sale is void ab initio which means a contract is null from the beginning if it seriously offends law or public policy in contrast to a contract which is merely voidable….

    Had to know when to use fraud and fraudulent…each means something different and so I had to makes sure I used the right word in the right places.

    The third part, certificate of service.

    Yeah, I put a thing or two, can’t remember

    That last one, I said,
    The Plaintiff is suing the wrong party.
    The Plaintiff states they are holding the legal title to my real property
    That is still my legal title, I’d like the return of my property.

    We shall see.

    To early to say anything…but I must say, in the movie The Matrix, agents for the other side were ‘everywhere’ and ‘everyone’, so lets hope we have more ‘information’ agents answering this blog than ‘disinformation’ agents.

    A disinformation agent is very good at gaining trust and being considered a go-to person for answers. They are great people persons.

    I’m not through this stage of the process, but I do know that the illusion was great when I saw the lawsuit, and I had to sleep use two days sleep to see through it.

    The title company has a Special Warranty Deed, and it was given to them by the pretender lender. The pretender lender has the Trustee Deed and chose not to sue while holding it. To me, it would have made sense for the pretender lender, except sites like Neil’s have them hiding because I could say they weren’t the lender. Of course that’s what I’d been saying the entire process but their attorneys operate with impunity.
    So they added one more layer to the Onion and hid behind it and created a Special Warranty Deed (represented by the same law firm that perpetrated the fraud) and was going to let “that” title holder do the eviction.
    I was expecting an ‘unlawful detainer’ and got a ‘forcible detainer’.
    My response was full of the word dispossession.

    I suggest everyone realize that in our world we were given a free public education, and taking from the comment by commenter BSE, in this blog, when you get something for free, it’s really not as good as you think. Our free education and our kids free education was a waste of time. That’s why they act out..they know their brain is being washed down…ie brainwashed.

    Everyone, the best thing you can own in your home, even better than that big screen t.v. is a Legal Dictionary. You need one!

    Save up your beer money and get will need it. How you speak to them, determines what they can and can’t do to you.
    Because what you say can get you in trouble, and we have learned the wrong meaning for the words we use and our normal way of talking is getting us in trouble because they know what it really means.

    Some will hear and not understand, some will hear and understand for a while and forget, and some will understand.

    Light and Love,

  7. Sure would have been nice if when the HAMP program was enacted that the “lender” (originator) would have been required to disclose the true lender and the supporting documentation so that homeowners could know they were negotiating with someone capable of making a decision … Instead we all got a program designed to protect the GS crowd.

  8. We can all relate to this story. Read below:

    The kids filed back into class Monday morning. They were very excited. Their weekend assignment was to sell something, then give a talk on productive salesmanship.

    Little Sally led off: “I sold girl scout cookies and I made $30,” she said proudly, “My sales approach was to appeal to the customer’s civil spirit and I credit that approach for my obvious success.”

    “Very good,” said the teacher.

    Little Jenny was next:

    “I sold magazines,” she said, “I made $45 and I explained to everyone that magazines would keep them up on current events.”

    “Very good, Jenny,” said the teacher..

    Eventually, it was Little Johnny’s turn.

    The teacher held her breath …

    Little Johnny walked to the front of the classroom and dumped a box full of cash on the teacher’s desk. “$2,467,” he said.

    “$2,467!” cried the teacher, “What in the world were you selling?”

    “Toothbrushes,” said Little Johnny.

    “Toothbrushes!” echoed the teacher, “How could you possibly sell enough tooth brushes to make that much money?”

    “I found the busiest corner in town,” said Little Johnny, “I set up a Dip & Chip stand and gave everybody who walked by a free sample.”

    They all said the same thing, “Hey, this tastes like dog $hit!”

    Then I would say, it is dog $hit. Wanna buy a toothbrush?”

    “I used the governmental approach of giving you something $hitty for free, and then making you pay to get the taste out of your mouth.”

    Exactly what the government promoted…Free money with $hit terms that went into default..Now we are standing in our neighborhoods surrounded by foreclosures and we have to pay to get the $hit out our yards.


  9. The Banks, this Government and Wall Street are now forcing the forclosures. Be a patriot, Stop Payment and squat your home !

  10. The International Bank Activities Reform Commission is charging Wells Fargo, partly owned by Warren Buffet and the Gates Foundation with fraud in their global involvement with the mortgage morass which continues impacting the global economy.
    In a complaint filed with the European Monetary Commission and the World Court in the Hague, Gabor S.Acs. one of the founders of IBARC stated, “Wells should get a Wells Notice from the United States Securities and Exchange Commission soon if they are on top of this investigation at the Justice Department.”
    The complaint alleges that Wells Fargo, their Directors, Officers and Major Institutional Stockholders including Goldman Sachs knew or should have known that billions of dollars in first and second mortgages originated, packaged and sold as securities by Wells Fargo contained false financial information provided by real estate brokers. And mortgage brokers making it impossible for the borrowers to pay back the loans or to be qualified to even make the monthly payments without refinancing over and over during a 30 year period that falsely inflated the cost of housing in the United States and the world over as a result, causing serious economic damage to hundreds of millions of humans around the world.

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