MORE IMPROPER PROCEDURES IN FORECLOSURE SALES

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EDITOR’S NOTE: The problem is far larger than the one presented here, but this one is helpful to highlight some of the bad procedures used. The BIG PROBLEM is the CREDIT BID which is invalid because it wasn’t submitted by a creditor. The bid is invalid if it isn’t in compliance with statutes requiring submission of bids at auction. The fact that it wasn’t published correctly is yet another reason why the sale is invalid.

Florida foreclosure bargains in doubt

A foreclosed home is seen in Washington
A foreclosure sign is seen in front of a house on 16th Street NW in Washington on August 22, 2010. More than 2.3 million homes have fallen into foreclosure since the recession began in later 2007, according to RealtyTrac Inc. Economists expect the number of foreclosures to grow into 2011. UPI/Kevin Dietsch | Enlarge Enlarge

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WEST PALM BEACH, Fla., Dec. 10 (UPI) — Some Florida homes sold at foreclosure this week have gone for as little as $200, but the bargain-basement prices may not stick, lawyers say.

Cases resulting from the collapse of the David J. Stern law firm went to auction with no bank representation, bids or proper public notice, The Palm Beach Post reported.

Some of the properties sold for more than $240,000 at their peak.

Stern’s firm, branded a “foreclosure mill” for its volume of cases, lost most of its business following allegations of misconduct. Fannie Mae and Freddie Mac cut ties with it in November.

Some of the auction sales were made without the required public advertisement, and the Palm Beach County court will not certify a sale without proof the auction was advertised once a week for two consecutive weeks in advance.

“All these sales that have taken place will have to go back into the system,” said investor Don Cameron, who realized the problem after buying three properties at auction, only to find out they were not properly advertised. “It’s going to be a complete bottleneck again.”

7 Responses

  1. Here is my horror story and I know I am not alone. I am the wife of a servicemember, Army to be exact. I am a school teacher. We have a family. We have had problems with GMAC for 10 years as our mortgage was sold and re-sold. We hired a law firm from out of state. We live in Harnett County NC a very conservative county about 70 miles from the nations banking capital.

    Our lawyer filed a complaint and unfortunately was not familiar with local rules and did not include a motion to stay any further proceedings in my foreclosure until the case could be heard in open court. The opposing counsel from one of the two foreclosure mills in NC, ignored the complaint and moved forward with the proceedings which ultimately resulted in a writ of possesion. In Harnett County NC you do not have be served other than by US Mail. I received my notice to vacate 3pm on a Friday with the lock out date the following Wednesday. Oh my husband he is deployed, again.

    The lawyer prepared an emergency Order of Protection to stay the writ of possesion based on the Servicemembers Civil Relief Act. I took it to the court house since again my attorney is out of state. As it would turn out the Superior Court that was in session was criminal superior court. I bravely approached the clerk and asked to be added on so that I could go before the judge. She advised that it was criminal superior session and that civil matters would not be heard until the following week and that the judges calendar clerk was in another county that day but she would get the file and put it in the court room.

    I entered the empty courtroom, the judge was preparing to swear in some local politicians that had recently won in local elections. The court room was empty. I give you verbatim ” Baliff who is that woman?” ” Find out why she is here” judge again ” Are you the one with the civil matter?” me “yes sir I am” judge “dont say another word, I will not hear any civil matters in this court” me “sir, I have a simple order that I would ask you to review” “baliff please help this lady to find the door”.

    Shocked is not the word for what I felt. This is an emergency order you are the only Superior court judge in the county, I vote and I pay taxes and you throw me out of your courtroom. Shame on you.

    The Attorneys (my attorneys) have a local representative drive down from three hours away. He sits through jury selection for another case and than asks the all too important “may I approach your honor?” at which point he is also shot down and told in not uncertain terms “if that is for that lady yesterday, I told her and I am telling you I will not address civil matters in my court room-goodbye !”

    My lawyer begged and pleaded with opposing counsel to buy me less than a month to vacate before the sheriffs deputies show up and lock me and my kids out. In exchange they had to agree to withdraw the complaint. I had no where to go, I have kids, dogs, a life. Moving costs money, money that I have thrown at this problem in bagfulls. I went to JAG they wrote letters to the court (most JAG lawyers are not admitted into the state bar). They did what they could. I have copies of orders, pulled down the entire SCRA and it is meaningless if you have a judge that will not even look at it.

    My husband, he is still deployed until February 2011 was supposed to be home in November but was extended yet again.

    My attorneys screwed up and I was punished. The clerks at court all asked why I did not find a local attorney – the answer is quite simple there is not one attorney in the good ole boy network in Harnett County NC that practices consumer law. They are most all conservative and fully believe if the lender says you owe money than you must!

    I know that eventually this mess will end for homeowners, but for us we lost. I was diligent, I documented every thing, but ultimately it really comes down to how consumer friendly your court system is. I am certain that living in NC with all the big banks calling Charlotte home does not help.
    I was told by an attorney here in NC that the Federal District Court Circuit is very conservative and fighting my case there could really screw things up for other homeowners if I lose. “Really?” Hello am I the only one in this state that understands to win you must fight!

    Shame on that judge and shame on the opposing attorney and the foreclosing attorney for continuing with their efforts even after they were made aware that my husband and his property were protected by the SCRA. The Servicemembers Civil Relief Act does no good if no one enforces it. The real kicker these folks make their money off the military presence in thier town. The judge and the opposing counsel would consider themselves God fearing, flag waving Americans! I guess it is easy to wave that flag when it brings in money.

    Evidently in NC due process and justice means that the pretender lenders claim a debt, and move forward even if the accused debtor is 10,000 miles away on government orders.

    Oh I called my congressman 3x’s once got voicemail, no return call, once had to fill out a form so they could look into thaangs (sic) and the last time I was told “these things take time”. My time is up!

    I wrote this because I wanted to record what is happening in small town USA where no one is really looking!

    Thank you for your blog, it inspires me, and thank you for making me feel less alone! Good tydings to alll of you and happy holidays!

  2. Deborah, I know how you feel, I delt with this LPS also, but got them canned by the local police. They are the ones working with those fraudulent forclouser mill atty’s that buy old or incorrect information of the system. Kick him in the A–.

  3. i am arguing this, tell me what its called when REO remax escalibe guy leaves a note on the front door telling you to pack and move out and that deutsche bank sent him or then he said indymac then he said one west then he said LPS sent him. if i told him to jump off a cliff would he? this particular REO “specialist” used to be an insider, he worked for a bank, these people know no shame they will embezzle people right out of their own homes by the way ARIZONA

  4. As I have said previously, forclosuregate is bad for everyone, even the people who are presently paying their mortgage. Everyone is impacted by vacant houses, the state government, the county government, the neighborhood where the houses breed crime and fires. Everyone loses here except the corrupt CEOs at the top of the pretender/lender banks. http://www.challengingforeclosure.com Sirak@challengingforeclosure.com

  5. I could use representation on a case (Orlando FLORIDA) where a non-creditor (bought the loan after default) used the “credit bid” at an auction to outbid me ,, there was also the little matter that they rescinded a $11,000,000.00 bid which in any “English Rules” auction means YOU are cancelling your contract with the auctioneer and you are barred from further bidding…

    MATT WEIDNER ,, help!!

    brian_tracy AT cfl.rr.com

  6. I think the FORECLOSURE sign should come off , because it will not do any good for the neighbour.
    Does anyone know the Sign restriction in Florida.

  7. What we see here in Nevada all the time is all of the above, plus the “Assignment of Deed of Trust” leading up to the sale, and in many cases, is not even recorded until the “Trustee’s Deed Upon Sale” is recorded, which is usually several days AFTER the sale. This means that the so-called “creditor” who made the coveted “credit bid” (otherwise known as getting the house for free) is also unlawfully listed as the “foreclosing beneficiary” at the time of the sale. It’s unlawful because (1) the “Assignment” is void since it always includes verbiage to the effect that the beneficial interest in the Deed of Trust is assigned “together with the Note….” and the assignor has NO INTEREST in the Note; and (2) it is recorded AFTER the sale, meaning that even if it were a valid assignment of both the Deed of Trust and the Note, it wasn’t part of the public record until after the sale. Therefore, at the time of the sale, the so-called “foreclosing beneficiary” was not the beneficiary, not the creditor, not the holder or owner of the Note….basically, not anything special other than the partner of the corrupt Trustee who rigged the bidding to give the free house to the preferred party.

    If you or I did this, we would get free room and board at Club Fed.

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