NJ Court Considers Statewide Foreclosure Suspension Jan 19

COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary

EDITOR’S COMMENT: As concern mounts that the entire title infrastructure has been put at risk by shoddy practices in lending, recording, transferring and foreclosing mortgages, a New Jersey Judge has set a hearing to consider suspension of ALL foreclosures by the megabanks pending further investigation. What was once considered “fringe” analysis is now mainstream as courts all the way up to State Supreme Court take a closer look at securitization.

It’s not difficult to imagine how challenging it has been for Judges and their law clerks. Millions of foreclosures already “completed” (and perhaps waiting to be undone), millions more in the pipeline, and still millions more likely. What was once perceived as just another foreclosure has become a battleground for wielding political power. The banks are running out of time and out of arguments as to why the recording statutes and all the basic tenets of property law should be put on hold while they take away the homes of people who committed no act other than putting their signature on a pile of documents that even Alan Greenspan has admitted he didn’t understand in the context of securitization.

I believe the law is very clear and has been clear for hundreds of years. The pretender lenders made up their own rules and didn’t even obey those. Their actions violated existing statutory law, their own securitization structure, and any inference of fair play or equity. Their hubris in not only lying to get an undeserved bailout and now needing another one, while at the same time asserting the obligations are still due from the borrowers goes beyond the bounds of any ethical or moral standards.

What they seek is no less than a change in the law and to have it applied retroactively. This change would put all real property transactions in a state of uncertainty. Instead of molding their methods to the requirements of an orderly society they seek to mold the law to their past conduct. The likelihood of their success is minimal. But they have already had a maximum effect on the lives of tens of millions of Americans whose lives and prospects have been turned upside down.

TRUST — both the use of the word as in “trustee” and the actual confidence that banks would act with caution to protect the deposits of their customers and to provide the needed capital for innovation, business start-ups and business expansion (the engine of jobs in America) —- has been misused and abused by institutions who violated their charter and all applicable laws in a financial coup d’etat whose effects will be rippling through the rest of our lives, the lives of our children and grandchildren.

The net effect of what the pretenders seek to accomplish is to make America an unsafe place to do business. Instead of being the venue that governs international trade and domestic commerce, businesses and people will be required to revert to an extreme version of caveat emptor. So far from being the shining light on the hill, we have become the scoundrel of the world economy. We have everything to lose and nothing to gain from giving the pretenders what they want.

They may not care about the collateral damage they have caused in their financial holocaust. We don’t care about the collateral benefit that results from beating them back into their cages.

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JPMorgan, GMAC Urge New Jersey Court Not to Suspend Home Foreclosures

By David McLaughlin – Jan 6, 2011 1:30 PM MT Thu Jan 06 20:30:56 GMT 2011

Bank of America Corp., JPMorgan Chase & Co. and other U.S. banks told a New Jersey court that defects in their processes for seizing homes in the state can be remedied without halting foreclosures.

The banks have taken steps to improve their procedures, making a suspension unnecessary, they said in documents filed yesterday in state court in Trenton, New Jersey, and made public today. The filings came in response to a proposal to freeze foreclosures in the state by six U.S. banks while their procedures are reviewed.

The banks’ practices came under scrutiny after bank employees signed court documents in foreclosure cases without reviewing their accuracy, according to court papers.

“Bank of America fully appreciates the court’s concerns and looks forward to working with the court to address them,” the Charlotte, North Carolina-based company said. “The court should not take the steps outlined in the order because they are unnecessary and will cause a wholesale delay in administering foreclosure cases that is not in the public interest.”

Judge Mary Jacobson scheduled a Jan. 19 hearing to consider suspending uncontested foreclosure cases and foreclosure sales by the banks: Ally Financial Inc., Bank of America, JP Morgan, Wells Fargo & Co., Citigroup Inc. and OneWest Bank, according to a Dec. 20 order.

Jacobson said in the order that the move “is necessary to protect the integrity of the judicial foreclosure process in New Jersey and to assure the public that the process going forward will be reliable.”

The case is In the Matter of Residential Mortgage Foreclosure Pleading and Document Irregularities Superior Court of New Jersey, Chancery Division-General Equity Part, No. F- 59553-10, Mercer County (Trenton)

To contact the reporter on this story: David McLaughlin in New York at dmclaughlin9@bloomberg.net.

12 Responses

  1. I live in NJ and U.S. bank transferred loan servicers during a modificaiton, the new servicer Ocwen took the house back and now U.S. Bank is on the deed, due to the sheriff sale, on April 28, 2011 I was allowed to vacate the sheriff sale……….but the Judge would not vacate the default judgement for foreclosure………3 days after the order….Ocwen sent someone to come to the house and remove all of property………..my deceased mother’s items children’s toys etc……they refuse to return phone calls……I NEED SOME HELP….according to my credit report….another mortgage company says I owe more money that what Ocwen claims and through an investigation…they claim they dont know who U.S. Bank is but I owe them the money…HELP!

  2. Eugene Villarreal,

    The land of the Sopranos — and NJ housewives!!

  3. I’m from New Jersey, Neil, and as frankielee says ” you’re the man.” As you know by now, New jersey is stepping out of the STONE AGE and is trying to enforce the rules that have been in existence since the dinosaurs stepped on the banker’s poop. In New Jersey with 95% uncontested foreclosures, The judges and courts have allowed Robo-Signers to submit Certifications, instead of Affidavits, with false non-attorney statements of facts. In court, Chase Home Finance, LLC, waves a Mortgage and Note claiming that they own them while FreddieMac claims them also and the judge ignores that material fact. Now, Chase wants the Supreme Court Justice to allow them to submit (substitute) new 3-page CERTIFICATIONS that do not address the true owners/ holders of the Mortgage and/or Note. The Courts and judges are more concerned with Robo-signing than STANDING. Only Judge Todd in Atlantic County, New Jersey has written an opinion stating that securitization needs to be addressed in the courts in order to reveal STANDING. Whenever I get an opportunity, I direct homeowners, like myself, to check out your securitization packages on your websites. I believe they are very necessary to aid defendant’s attorney to get them up to speed on securitizations of loans. If only the judges could get up to speed that would be a blessing.

  4. […] This post was mentioned on Twitter by Teri Sherwood. Teri Sherwood said: NJ Court Considers Statewide Foreclosure Suspension Jan 19: http://t.co/oKRBKHW #Fraud […]

  5. Neil, I’ve been coming to your site every morning for two years. Two years ago I thought that I was reading the thoughts of a madman. A year and a half ago, I thought you were starting to make sense. A year ago I realized that you actually did know what you were talking about.

    Now, two years later, I realize that you are a freakin’ genius, and it’s taken me way too long to figure that out. No single person has lit the lamps and shown the way as clearly as you. When tons-o-others were yelling produce the note, you sat back quietly, reminding all of us each and every day not to fall into the cracks.

    Your daily musings have given me an education that I wouldn’t have been able to aquire anywhere else.

    I wish you a long life, perfect health, and everything else that you deserve for giving so much to so many, without asking anything in return.

    Thanks for everything. You’re the man!

  6. This post looks better than it is. The banks are still saying they will suspend the foreclosures to check their documents and fix them. More fraud, notary fraud and fraudulent documents. The foreclosures need to be suspended, and the homeowner given back their house with an appraisal of its present worth, which is considerably lower than it was only six months ago. The economy will not come back until the fraudclosure mess is cleaned up. Since nobody wants to cooperate (lenders, investors), make them cooperate. How many houses are sitting vacant or for sale? Who wants to buy houses with clouded titles? Let the government bail out the banks again and give the houses back to the homeowners. http://www.challengingforeclosure.com
    Sirak@challengingforeclosure.com

  7. they are getting organized and have a plan of action, so what else is new?

  8. You know that Bank of America is feeling pressured when they roll out O’Melveny & Myers to counter. This gigantic shop has 1,000 lawyers on deck to defend corporations from their folly and keep the State prosecutors at bay. Some TWELVE (12) attorneys signed on the the Response to Order, including the firms Graham Curtin and McGuire Woods. The amount of cash that BAC is throwing at this Order is astonishing: even before Hearing, the tab is headed towards one million.

  9. WHIP is right — where are the AGs???

    Much more happening than is publicly told — if walls could talk.

  10. This is what drives me crazy with JUDGES! Jacobson is Dead Right! There is nothing to consider except the Judge stoking the PEN.

    If this happens, maybe FLORIDA JUDGES will get off their lazy azzes, and do the same thing.

  11. It will take a 1000 years to sort out the Bank Fraud committed in all 50 states public records, and another 1000 years of litigation.

    Where are the AG’s on this?????? They must be hiding under their Political Desk!

  12. Well Said. When the fraud was committed the title companies had the last opportunity to bring it to the fore. Rather than do that, they simply asked the servicers or foreclosure attorneys for the paperwork, recorded it and it was a done deal. Now they want to back out of paying any claims – I don’t think so. My understanding they have no liability if the property was foreclosed – goes to motive of a sort.

    At any rate, all of the players had their chance to disrupt and stop this victimization of the homeowners so now it our chance. Hopefully, this Judge will see it that way – but the title companies must take responsibility for properly and legally issuing title. they worked in tandem with the servicers and foreclosure attorneys. That is the way I see it. I have been there and as an examiner, they knew better. But they were taking in the bucks and were not going to do anything that might do just that. Some title company in California tried his best to bring this to the attention of the nation and no one paid any attention to him with respect to the broken chain of title work being done.

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