All 50 States Start Inquiry Into Foreclosures

October 13, 2010
By REUTERS

State attorneys general in all 50 states started a joint investigation into the mortgage industry on Wednesday, a move some experts fear will cause uncertainty and threaten the recovery of the housing market.

The officials are investigating accusations that some banks used shoddy paperwork to evict borrowers from their homes during a foreclosure crisis that is one of the most visible wounds of the economic downturn.

“We are in the fourth year of a housing and economic crisis that was brought on by lax practices of the mortgage lending industry,” the Minnesota attorney general, Lori Swanson, said in a statement. “The latest allegations of corner-cutting and slipshod paperwork are troubling, but perhaps not surprising.”

The attorneys general will be looking at the practice by banks and companies that collect monthly mortgage payments by using “robo-signers” — people who sign hundreds of affidavits a day.

The use of robo-signers “may constitute a deceptive act and/or an unfair practice or otherwise violate state laws,” the attorneys general said, because the signers did not properly review the documents.

The paperwork controversy has refocused attention on the foreclosure crisis weeks before the Nov. 2 congressional election in which Democrats are predicted to suffer major losses because of voter unhappiness over President Obama’s economic policies.

JPMorgan Chase said Wednesday that it had identified some issues in its review of foreclosure affidavits but was “pretty comfortable” that its decisions to foreclose had been proper.

JPMorgan, which posted higher-than-expected profits on Wednesday, has halted foreclosures in the 23 states where the actions need a judge’s permission. Bank of America, the largest mortgage servicer, and GMAC Mortgage, which is part of Ally Financial, have suspended foreclosures nationwide.

19 Responses

  1. Here in Virginia we have had no luck at all getting the Attroney General to take action against Hsbc. We are litterally helpless in this State because the laws protect the Banks and not the consumers. You can forclose with out the note or Assignment and it is hard to contest it. If anyone can help I would appreciate it.

  2. if u live in ohio forget the law & if u live in lorain county ohio & ur female, there is no law, its the good ole boys yet….& a criminal has more rights than a woman…almost makes me wish i was an an african american bi-lingual lesbian disabled veteran with a porto-riccan surname, i could have saved my college fund, gotten a gov job, not get laid off…and not have to listen to atty’s tell me …”who cares if the bank forged the docs…..i’ll only charge u 4500.00 to to file bankruptcy”…..or have to deal with the prejudicial attitude towards pro se filings…..what good is an education when there are no jobs…..

    empty houses mean empty dreams….not a chance of recovery and more of homeless living on the streets…..i feel certain that may want to keep the republicans in their homes….they may have to look at us…..the gov wanted to get rid of middle class & they r doing it…..quite effectively……& to those of u that have …the food chain always moves up….. 😉

  3. Will they just go after the big banks? Or will they help everyone who has gotten a bad deal? I hope Tennessee does something to help.

  4. Maher. Call me back brotha. J

  5. FORECLOSURE FRAUD BY MERS AND ATTORNEYS – FORGET IT!
    By: Maher Soliman

    Your property was foreclosed on by the FDIC under a subrogation claim. The beneficary is an economic claim and not a benefical claim. You think stopping foreclosure mills for 24 hours s or notory fraud can merit aginst that fat argument for damages after being awarded a home?

    The property belongs to a receiver until time of sale. Therein the transfer deed shows in proper accordance where the grantee is the beneficiary.

    Therefore no condition precedent is verifiable to bring a foreclosure. The FDIC is hidden from sight as a receiver thanks to MERS. This is not a FDIC scheme but lawyer debt collector fraud. Robo doc signers and foreclosure mills are contract FDIC lawyers.

    The powers at be use MERS to stand for the receiver brought in by the FDIC to recover assets. The Department of Treasury is hidden behind the FDIC , so I guess they all are hiding behind MERS.

    And remeber to consider TARP addressing toxicity only as worthless stock. TARP makes no mention of loans. Lawyers and MERS are none the less immune from state level prosecution.

    These foreclosures fail under a power provided by the state and granted by the title holder to the beneficiary to bring a sale.

    The title to the subject property sits “disturbed” from time of funding under USAP guidelines.

    If the deed is set for sale it is defect and where the deed is defect the sale must fail.

    We are now being asked to include for clients and attorneys testimoeny to press criminal violation under UUSAP that can stick in a limited jurisdiction. USAP will get the attention the top CEO and directors of the bank. Then you will hear them say “RAJA” “We have no interest in your home…it wasn’t us”.Calculate the formula for yourself and it will blow you away!

    It’s a joke where the fact is every foreclosure again is missing a condition precedent. MERS is another name for break in lender interest in title and satisfying the condition precedent cause of action.

    One with any knowledge of the trust and trustees role administering managing a trust’s assets that their job description is solely limited to general ledger accounting for stock shares.

    Open and notorious is the fact Obama charged the stock certificates to zero.

    There are further valid affirmative defenses brought for Sar Box and SEC arguments against a clandestine subrogation claims effort conducted under shared loss risk bank consolidations.

    Foreclosure is a vital means and method of liquidation under a secretive TARP repyament plan or Fed structured platform. It’s the perfect machine to revalue non liquid assets from mark to marketability under a less than Fed’s length distance. This causes us to back off MERS an view that the substituted trustee arguments and rogue attorneys is press gibbereish. and a sucker play. It’s our attorneys not there’s that promulgate the wrong judicial focus.

    As for the end of teh mess, It’s almost here if you cannot see further down the road. Back off foreclosures for 45 days and then step aside counsel for the inevitable preemptive strike. Preemeption is due from the Whitehouse sometime on late December. Its right around the calender years end for terminating the NOL givern to investors who charge to a loss certifcate worth nohting. The right to judicial process will be removed from a foreclosure claim upon completion of the two years needed to clean the majority of this $650 Billion mess up.

    But, now we find out it was less than $65 billion which is the amount of the REMIC TRS and banks ownership of the trusts outstanding capitalization at time of announcing the Lehman Bros crisis.

    So look not at the foreclosure police or substituted FDIC claims adjusters for staying in a home and upon the government paying off the loan a second time.

    THERE IS NO SUCH A THING AS A 100% CREDIT BID – WAKE UP! The credit is the missing link to the GL at sale time with tax payer dollars.’

    Consider the notion when the home is fixed before a bid ever occoours at a mark of 20%, over and over again. Now consider that with a denied right for a borrower to satisfaction as called for in teh note. FRAUD ! Theres the breach in the contract caused by the FDIC contract litigators.

    What I do find most amusing but how the missing link to subprime pooling and servicing may be now legitimate. FNMA, FLMC, GNMA and now MERS can lawfully bring a foreclosure.

    With MERS we now have GAAP out of the way and right to further discourage SEC enforcement of the real fraud that escapes every pleading iv read.

    My bet for client going to court is citing fraud at sale under a mark to marketability feat pulled off at the borrowers expense. The feat is an impossible act of economic contrition.

    M.Soliman
    Witness to Counsel
    Tel. 213-880-6288
    Mail to:expert.witness@live.com

  6. My two boys, age 8 and 9, can come up with better excuses than these lame, greedy banksters.

    http://www.nytimes.com/2010/10/14/business/14mortgage.html?_r=1&hp

  7. well, thi is my first post, but i have been reading for about 2 years , is about time i post something here i apreciate everything neil is doing by exposing the national fraud going on but by him exposing and talking openly about this and spreading the information the Gov knew all along what was happening , but they were saying “lets see how far they get and how much of this they can figure out, we are in deep s!!T anyways ” now by the whole contry knowing about this problem ,the gov will roll out with option B .
    do you guys think for a sec that the gov wich has arraived and the crime scene now , and is contenplating all options will go ahead and give free houses to everyone that had a faulty and fraudolent mortgage, NOT A CHANCE! ,for you readers let me save you the suspense, the goverment will do everything in their power to ……
    1- not to allow banks to take losses so big that will land them back in 2008 levels , that is why the bailout was given to the bank in the first place.
    2-they need to correct the title problem some how and trust me they will not jump on our side of the fence for that one , so dont hold your breath.
    3-we all want to solve this mess and if while solving this mess we land a “free” house so be it, but by doing it in mass proportions the goverment knows that the concequeces could be of “sh!t raining from the sky BIBLICAL proportion kind of thing .

    By bringing attention to ourselves we gave the right to the gov to step in and decide for us what needs to be done, but the GOV have several options but the question is this , wich the GOV will save , The banks wallstreet (wich they fear ,respect and are in bed with ) how to bring all the fraud to light and do the “right thing” but at the same time avoid taht the financial system doesnt freak out ,I SIRIOUSLY DOUBT THAT ANYTHING COMING FROM THEM (THE GOV) IN LIGHT OF THIS MASSIVE FRAUD TO CORRECT THIS PROBLEM WILL BENEFIT US (the homeowners & lawyers representing them )

    !!!!MY OPINION IS THAT WE NEVER HAD A CHANCE , AND THEY WILL LET US KNOW PRETTY SOON .

    BUT PLEASE LET ME BE WRONG!!!!!!!!!!!!!

  8. The banksters crossed the Politicians.
    It is over.

    Plus everybody is broke everybody accept a few people at the Foreclosure auctions that are gonna get screwed by the banks.

    Have’nt you heard they are giving REO’s back now to the people who have been evicted.

    In Florida you can not buy an REO anymore.

  9. angry and not taking it.
    it says on the dollar bill

    In God We Trust

    Not in government we trust

  10. hello every one, we go back to the same arguments and issues because they are all relevant.

    the battles are won in most part because one of the generals outmarts, outmoves, and foretells the oponents moves, analyses his weaknesses and focuses on how to exploit those weaknesses.

    we know they have faked, forged and fabricated documents, induced people into their definition of default to make people qualify for a loan mod that they knew you would be able to get. but now they can have your home for free. we know they are masters a bait and switch, they can afford big ticket law firms and bury you and your lawyer in endless paperwork and motions.

    we know they never provide a complete set of the accounting of your loan. we know that they have split legal fees, we know they cannot determine who owns the notes and mortgages.
    we know the did a whole bunch of ugly things.

    what we need to do is to exploit their weaknesses. they will end up pointing the finger against each other. sue them all. from the realtor who had in some states a fiduciary duty to their clients, in some other states this agency relationship is statuatory, the mortgage has a fiduciary duty to you. you hired them as a mortgage broker to get you the best deal possible,the title company also had a fiduciary duty and a statuory to give you the best title insurance product out there, the appraiser, the notary at the table(whom most of you never saw at the settlement since most docs were notarized days after you settled.

    Just get them all for conflict of interest, collusion, errors and ommissions.

    let us all make it financially impossible to do business. even if they are out of business they had e&o insurance at the time the screwed you.

    sue the foreclosure lawyers for gross neglicence. the trustee, once all these clown are on the docket they start to crumble.

    beware of class action law suits. you usually get pennies and no real releaf.

    actions to quiet title nationwide.

    not legal advice, not a sermon either, just a thought

  11. All 50 States Start Inquiry Into Foreclosures

    We have all this mortgage industry mess thanks to laws passed by congress when the mayority was REPUBLICAN !!!!!!
    Of course the mastermind was the great : GEORGE BUSH Junior !!!!!!!!!!!!
    Lets keep fighting for justice, and lets share to everybody any info regarding unfair judges

  12. October 13th, 2010

    BOMBSHELL- New Subpoenas Issued by Florida Attorney General to Lender Processing Services and Docx, LLC

    The developments continue to roll out. To those that wonder just how big this crisis is…look carefully at the subpoenas that have just been released. No one can yet comprehend just how deep this goes….

    http://mattweidnerlaw.com/blog/wp-content/uploads/2010/10/Subpoena-DT-to-Docx-L.L.C.pdf

  13. re; Attorney Generals
    BoB m posted..
    ….as a matter of fact the Attorney General here in MASS has done a tremendous job with predatory lending and in March this years, entered into a settlement with Bank of America/BAC home loans/ Countrywide for a 3.1 Billion in relief for violation of the HAMP guidelines.

    relief for who exactly ??

    this relief will be of NO BENEFIT to most of us affected ,in Mass or any other state.

  14. I know that JP Morgan was involved as a Trustee of the Novastar Mortgage Funding Trust Series 2006-3 as The Bank of New York as Successor Trustee as they
    Wrongfully Foreclosed on my property on April 25th 2008 with an assignment and transfer to Novastar Mortgage Inc. of c/o/ Saxon Mortgage Service Inc. Signed by one of the famous signer as VP for MERS and LPS out of Dakota, MN office and Laura Hescott another robo-signer with at least 10 titles for various companies and signs AVP Novastar MortgageInc by Saxon Mortgage Services Inc.Its Attorney-in-Fact.

  15. tony brown
    This is bullsh^t you’re right…this is bul.

    Fifty state attorney generals..
    this is bad for borrowers!!!..

    Fifty state attorney generals will settle out of court,fpr some bulshit amount that is meaningless to borrowers, and the Fifty state attorney generals actions will bar borrowers for bringing their own actions against the vermin.
    BofA after they acquired country wide inked deals with these Fifty state attorney generals to prevent the borrowers individual SURE TO FOLLOW lawsuits.
    OUR GOV CAN NOT BE TRUSTED.. BOTH STATE & FED GOV IS COMPLICIT .
    OUR GOV CAN NOT BE TRUSTED.. BOTH STATE & FED GOV IS COMPLICIT .
    OUR GOV CAN NOT BE TRUSTED.. BOTH STATE & FED GOV IS COMPLICIT .
    The alphabet soup of agencies is owned & run by these very criminals, look at the inaction & the actions that have gone on is meaningless to the middle-class situation. WE are not one of the group that is protected by the alphabet gang.

  16. This is bullsh^t If Jp stopped using MERS in 2007-08 then Why do I have an unlawful assignment filed at the ROD from MERS? Jp trying to cover there as^. With all the Robo signing and everything else that has come to Media attention.

  17. I am fighting a foreclosure in Maryland. This is exactly the ‘easiest’ reason for dismissal. Hsbc, (trustee for Merill Lynch Pass thru certificates No. XXX) who had their attorneys submit a fabricated allonge, (joke, a fill in the blanks form, with the blanks empty, and an Hsbc stamp in the margin of the page).

    Looking for attorney in Maryland to help with proceedings.

    Anyone??

  18. Yeah Diana! I saw one of their funny trustee assignments. They need to be audited !

  19. Are there any updates on Aurora Loan Services LLC in California? They use MERS and Cal Western Reconveyance and their foreclosure mill attorneys are in San Diego, CA

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