Livinglies's Weblog

Although she is adding to the chorus of objections and revelations about fraudulent foreclosures, notably adding her voice to Marcy Kaptur of Ohio, it is unlikely that any such moratorium will occur in Arizona. The Banks are hell-bent on foreclosing as many homes as possible before the law catches up with them, after which they will probably settle for pennies on the dollar in class actions, politically motivated AG actions and regulatory actions.

I received the letter shown below which was was sent to Gov. Brewer from a homeowner in distress. Like most homeowners he assumes that he is behind in his mortgage payments. The truth is more complicated than that. His loan is probably not in default, not secured, not subject to foreclosure, and paid off.

My personal experience with the Arizona government is that it at best highly responsive to the desires of the financial services industry, and at worst completely corrupt. There are many people in the Arizona legislature and in the executive branch of government who have been aware in every detail of the scheme that is stealing homes from innocent homeowners, whose loans have been either completely paid off by mitigation payments to the creditors or have been nearly paid off — not to speak of those homeowners who are owed damages and treble damages for wrongful foreclosure.

These courageous politicians tried very hard about 18 months ago to stop the chaos and cure the state budget deficit by pursuing the enforcement of taxes that are due from MERS, investment bankers, their affiliates and subsidiaries.  For a while it looked like we were going to accomplish something. Suddenly everything went dark and I was persona non Grata as were the facts that the pretender lenders were committing fraud using the the non-judicial process and a court system that was ignorant of the changes in mortgages and foreclosures over the past 10 years.

Maybe Repr. John Boehner doesn’t hand out money on the floor of the house of Representatives anymore because now it is illegal. But the money is getting to where it needs to go just the same. The forces behind Boehner and all politicians from both sides of the aisle are very strong and very arrogant in their willingness to exercise powers that are illegal, immoral and an outrage to anyone concerned with the political health of our system of government.

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Dear Governor Brewer,

I am a distressed homeowner.  I am currently 32 months behind in my note payments.  I am still in my home but I am facing my third Trustee’s Sale late this month.

I appeal to you to give Arizonans a 90-day break from the calculation of all Foreclosure / Trustee’s Sale time periods.  Here is the reason.

I am still in my home because I have been holding my loan servicer’s and my trustee’s feet to the fire.  I have demanded that they strictly comply with statutory notice provisions and contractual requirements.  This has resulted in my securing two prior trustee’s sale cancellations.  However, I think I will be mowed over on this go-around in favor of the statutory provision that essentially absolves all statutory and contractual requirement errors and oversights.  That is statutes A.R.S. § 33-811(B) & (C) which essentially allow the presumption of contractual and statutory compliance once the gavel drops on the sale.

I’ve been watching carefully what is happening in other states.  It seems readily apparent that the foreclosing entities are partaking in a fraud of magnanimous proportions!  First we had the cancellations of select foreclosures by GMAC, then JPMorgan – Chase quickly followed by Bank of America and Marshall & Ilsley.  I did notice that those moratoriums were in states that foreclose judicially.  This is important because those are states where a foreclosing party is likely to have to show documents in a court of law.  Lenders have realized that their documents are insufficient and the exposure of further problems may result in sanctions and an accurate disclosure to the public of their fundamental abuse of power.  I surmise that no lender moratoriums were issued in trustee’s sale states because it is unlikely that a lender would ever have to present any documentation to exercise the power of sale against a distressed homeowner.  In fact, it is almost impossible for a distressed homeowner to get any validation from their loan servicer.

I doubt that it was the intent of the legislators of Arizona (1971) to adopt Title 33 Chapter 6.1 Deeds of Trust and deny the body politic ofArizona the right to defend themselves against a foreclosing party.  As it turns out, that is exactly what has happened.  A homeowner can’t even find sanctuary in court.  Why are Arizonan’s that are trying to defend themselves against egregious acts of lenders, not afforded, at a minimum, to have a judge support their request to compel the aggressors to prove they have standing and the authority to proceed?  It seems the body politic of Arizona is having homes stolen from them every day by multi-billion dollar foreign corporations.  Why are our elected officials and judges not watching out for us?

I believe I have probably helped at least 80 friends, associates and referrals review the documentation associated with their trustee’s sale process.  I have not seen one set of documentation that meets the “strict compliance” standard as ruled on by the Arizona Supreme Court.  I will boldly step up and state with a high degree of confidence that the Trustee’s Sale process has never been meet by a foreclosing party in the state of Arizona.

I beseech you to put a 90-day delay into the Trustee’s Sale process in Arizona immediately.  We do not need a moratorium; we need for everybody to have their Trustee’s Sale process delayed by 90 days.  If we put in a 90-day moratorium thousands of homes would foreclose right after the holidays.  The trustee’s would run down the clock on distressed homeowners while the moratorium was in place.  A 90-day delay would freeze the calculation of the 91 days necessary to wait after the Notice of Trustee’s Sale has been filed.  This would result in a true 90-day benefit for your constituents.

If you would like to assemble a few (random) distressed homeowners with their Trustee’s Sale documentation; I would be happy to show you the flaws in the trustee’s sale process being executed against each of them.

May your possibilities be unlimited and your opportunities bountiful.

Darrell Blomberg

Filed under: bubble, CDO, CORRUPTION, currency, Eviction, foreclosure, GTC | Honor, Investor, Mortgage, securities fraud | Tagged: Boehner, Giffords, Jan Brewer, moratorium, Trustee sale |