Why Are Republicans So Obsessed with Backdoor Cramdown?

Adam Levitin | Foreclosure Fraud Settlement: The Empire Strikes Back (or Why Are Republicans So Obsessed with Backdoor Cramdown?)

Posted by Foreclosure Fraud on March 10, 2011 · 7 Comments

I don’t know what these people are complaining about. The 27 page “term sheet” is mostly made up of existing laws that the servicers are asked to adhere to with no “or else” clauses.

As for the monetary penalties, 20 or 30 billion is NOTHING compared to the TRILLIONS that they stole. How bout we apply the money to fund an army of legal aid attorneys to defend the “deadbeats” against these predators. If they have the legal ability to foreclose, and did everything THE WAY IT SHOULD HAVE BEEN DONE IN THE FIRST PLACE, then there shouldn’t be a problem getting the house repossessed, right?

But that may be to much to ask since they have already polluted our courts beyond belief…

Foreclosure Fraud Settlement: The Empire Strikes Back (or Why Are Republicans So Obsessed with Backdoor Cramdown?)

posted by Adam Levitin

It’s not surprising to see the banks and their supporters on the Hill pushing back on the proposed Foreclosure Fraud settlement term sheet. (See here and here and here).  There seem to be three major lines coming out of the banks:

(1) It’s “backdoor cramdown,” and the agencies shouldn’t be pursuing a policy rejected by Congress.

Thus, House Republicans wrote to Treasury Secretary Geithner that “The settlement agreement not only legislates new standards and practices for the servicing industry, it also resuscitates programs and policies [namely bankruptcy cramdown] that have not worked or that Congress has explicitly rejected.”  These House Republicans want to know:  ”What specific legal authority grants federal and state regulators and agencies the power to require mortgage principal reductions when the House and Senate have voted down such proposals?”  .  Similarly a coterie of bank-friendly pundits chimed in calling this sub rosa cramdown.

(2) CFPB has no business being involved given that it doesn’t have a director.

This has to be read between the lines as a thinly veiled Elizabeth Warren witch hunt.  At least one commentator was upfront about that in the American Banker.

(3) The settlement could negatively affect the safety and soundness of the banks.

Let me address all of these points.  There’s a lot of willful confusion about this term sheet and what it is.

Check out his response here…

House Republican Letter below…

33 Responses

  1. Anonymous:

    Thanks for the note. Just look at how smart and driven some of the people on the blog have become – it is wonderful and what we have needed. I just hope time is on our side.

    I really do wish that those who are inclined to fight for their homes and those who are unable to fight for theirs, do something that they currently have control of – to choose who they want to do business with and make that decision count.

    What is the one thing that we have at our immediate disposal that when collectively, it would make an impact?. Perhaps I am wrong, but I don’t think so.

    What happened to the organization that is going to coordinate an action that will have some teeth in it? We need that organization now, with the platform that can make a difference and for those who are attempting to hang on to their homes, this site needs to lay it out there for those who simply do not have the means to hire an attorney or let us find an attorney who will send that homeowner a template for preparation for court.. This can be done while we are getting ready to make what ever IMPACT we think our gameplan will bear.

    So much of what I have herad here is the same stuff over and over – someone needs to condense it down and make it available to any homeowner that is going for it – keeping his home.

    One thing the banks need to understand is that we know they actually need us more than we need them – but we have failed to properly execute a plan that will put them on notice – our way or no way. You won’t use our money while you carry out your victimization of the very people who make your bank possible. Time for a Power IMpact Day now let’s get with it and decide on the plan that can prove that we can back up what we say.

    I do believe there are those on Wall Street betting to see if the victims of this horrific fraud on the people will actually come up with something to force the banks to answer our claims through proper compensation. Can you beat that?, The banks do not think that we ever will come up with the right plan, they are not worried. All they have to do is wait it out because in reality, without question, the Congress, the regulatory that report to the Congress, the Administration, Attorneys Generals,- and others – they have their table set and we the people are not invited.

  2. ANONYMOUS- I am quickly realizing the difference between loan #s and acct.#s on mortgage loans. Today I discovered that BOA files Trust pool reports under Banc of America, not Bank of America. If this isn’t an underhanded,devious,criminally provoked means of obscuring the truth, I don’t know what is. There was an email in Anonymous’ BOA force-placed insurance fraud leak this morning detailing loan numbers ‘which will be changed’ so that BOA’s Rembrandt servicing platform will not download certain items for servicer reports to investors. Just what you and I have discussed here at length. I will do some digging, making minor changes to bank and trust names to see who else is following along this fraudulent path.

  3. Joyce Louise

    Really like your ideas.

  4. The purpose of my suggestion is to help the feds and the attorney generals resolve the problem by allowing the homeowners to deal directly with the banks themselves.

    The purpose is not to incite any hostile environment as that is not the way we believe a resolution can be worked out.

    The banks need to let us submit our plan for resolving the issue.

  5. Can there be such a thing as Homeowner Impact day? Making a difference so that we control our money and not the let the bank do it for us.

    Gatherings are important, but what if every person that is against what the banks have done and stood for over the past years decided to:

    Open up an account at one of the community credit unions or banks, say for example August 1, 2011

    Seniors and medicaid people who have direct deposits would not have to be included even though they may feel they would like to.

    If the banks have not dealt with the organization for the Homeowners or through its agent to come up with good faith and fair dealing for a plan that offers compensation for such wrongdoing to them and this economy, then those persons that are able to set up an account would indeed start making all deposits beginning August 1 to the New Good Bank and cease making deposits to the Bad Old Bank –

    This might be comparable to the Bank One buyout of Bank of the Southwest in Houston, Texas wherein we separated the good loans from the bad loans.

    In this case, we might separate our deposits from the bad bank to the good bank. Got it.

  6. To defend your home and campaign for reform:

    Meet at the Home Defenders League (ACCE) at 10 am on Wednesday morning, March 16, 2011.
    3655 S. Grand Avenue (near 37th Street), Suite 250
    Los Angeles, CA

    213 863-4548 x 210
    or 559 978-6747

    We will have a short meeting there and drivers will take us down town to a major bank.

    We are getting good results and the banks are paying attention to us. There will be a press conference and some local politicians are behind the movement toward a moratorium.
    Any questions, write to me at thelariat@att.net

    Hope to see you there !!

  7. The Republicans are kinky they like it in the backdoor. Just go to their conventions the Shemale and Transexual Prostitutes make a lot of money.

  8. March 13th, 2011 by MyBankTracker.com

    Activist Group Threatens Bank of America with Wikileaks Documents that Proves Fraud

    Do you like this story?

    inShare5
    Though only a threat, Bank of America (NYSE:BAC) is probably preparing to go into damage control this weekend as activist collective Anonymous plans to release documents on Monday, which claim fraud was committed by Bank of America employees.

    The threat of documents pointing to corruption by Bank of America have been stirring since Wikileaks founder Julian Assange claimed to have a 5GB hard drive that was once owned by an executive member of the bank back in December 2010. Since then Julian Assange has been hit with a number of his own issues and the Bank of America story went dead.

    Well it seems rumors have returned, with a member of the activist team who goes by the Twitter handle OperationLeakS, posted an internal email from the formerly Bank of America-own Balboa Insurance Company late Friday night. After review, the email released does not seem to carry any incriminating content, and instead acts as a teaser to prove they actually had documents.

     

    OperationLeakS is also claiming these documents come from a disgruntled employee that shared emails and documents that prove “fraud” was committed by Bank of America. A representative from Gawker Media attempted to gain an interview, but was denied. They did learn that the documents could disclose conversations between GMAC and BofA on the topic of mixing loan numbers to not match it’s documents so they could foreclose on Americans.

    While these claims, is just that – claims. Rumor of documents could be true, as Gawker did speak with an insider close to the matter, who told them he believes the leak is real. They were quoted in saying “From what I know and have been told, it’s legit,” and “Should be a round of emails, then some files, possible some more emails to follow that.”

    This is not the first time activists have made claims that where merely a scare tactic. Bank in December 2010, reports where released that MasterCard credit card numbers were leaked and shared over Twitter, but MasterCard, quickly responded that the security breach were false.

    Expectations are that the documents will be released on Anonleaks.ch, where activist group Anonymous has been busy.  Last month, they posted thousands of internal emails from Security Company HBGary CEO Aaron Barr, which highlighted a plot to attack Wikileaks and eventually lead to his resignation.

    MyBankTracker.com will be sure provide any updates on this story as they break.

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  9. usedkarguy!!!!!

    agreed. Deed in lieu, you walk away movement, short sales, etc, any program coming from Gov is BS. Stay as long as one can and if you don’t understand any of this, so what, stay as long as you can ,,,,,,,

    AND MAKE THEM EVICT YOU with cash. It’s survival time, save your money while living rent free. It’s an undiscovered gift, accept it.

  10. It’s all coming out, the thruth. It can’t be repressed it’s s universal
    law thst cannot be argued.
    Monday tomorrow wikileak day !

  11. Where and when is the protest in Los Angeles Linda? Would like to be there.

    Watch the first 7 minutes. They know exactly whats been going on.

  12. I forgot about the short re-fi. There are many options banks can use to rework these loans. But they make more money doing other things, like foreclosing and making claims on insurance. They don’t make enough money doing normal things. As this site has pointed out, they legally don’t have a right to modify, to re-fi, to foreclose, to sell, to evict, or to do anything else with our properties…if they don’t hold the paper !!

    Their main objective is to get the homes out of our hands so they can re-securitize them into the scheme. Our life cycle has ended and we are a bunch of dead wood for them. They want to pull the plug so they can get new patients and milk the policies all over again. They are using us until something better comes along…they are investing our payments into foreign markets and waiting for the payoffs. You’ll see. Then they might cut their losses, but only if they have to. But by then they will be so rich it won’t matter. Then they can start up again as some other new and improved entity and we will forget all about them.

    Banks really need to cut their “losses” and just let go of the properties. They are not ready yet. It’s all a big stall. All their losses really are, are their “profits” from these schemes that they are hiding offshore. Do you think these are honest profits? Are they paying taxes on them? Do you think the economy will really collapse? If so, their egos will go down with it. They use that argument to scare us.

    Heaven forbid a citizen wants to move anything more than 10k, we are interrogated by “Homeland Security”…an instant criminal…a terrorist…a money launderer…to be made a spectacle of and locked up.

    What the heck??

  13. As a Homeowner…I know the battle will be fireced…some of us may be forced to give up our homes because its the easty way out.but I agree…soon everything will come out and it will stink…CAN anyone devise a plan for people who never had the chance to defend themeselves to speak up and help whoever is fighting for the homeowners…past and present and future…who got screwed by the banks….

  14. kickboxer,

    It is not about the “lending” issue — not that this is not an issue — it is about far more than that.

    We need to move beyond “lending”/”funding” issue. Need to look at “mods” – before you refinanced.

  15. That’s a good point. The tables have turned. We have to show the public that the banks are the ones who are getting our properties for free…and they have routinely abused our courts to do it. In fact, they have flipped our homes multitudinous times to where they have made as much as 90 million on an average home. If we all had our homes free and clear, they would not be able to do that.

    If the banks could readily produce our documents, there would be nothing to hide! It’s that simple.

    Yet, most of us are still faithfully making our payments for fear of them taking the home away and ruining our credit, legal hassles, embarrassment, and so on.

    They really need to be knocked off their ivory towers and back down to the reality of doing ethical business. So they are not going to make as much money as before. Who cares. Jeez. How much money does it take to live, anyway?

    We just want a clear conscience in knowing that the party to whom we are paying is the true party in standing.

  16. And, if after fighting, the banks do get my house for free, I will move on. I will live underground and never put my trust in ANY man made institution again. They will not break my spirit but they will never have my trust again either.

  17. So, do we let the banks get a free house? In essence, that is what is happening. The banks/brokers are getting real property for FREE. Don’t you get it? The entities who are “recovering” the properties were brokers who never lent us a dime. They did not suffer a loss from our defaults yet they are being treated as if they are entitled to the collateral.

    Don’t give me a free house. Just give me the contact information to the true creditor so that I may negotiate a reasonable solution directly with them. I want to see ledgers showing proof of ownership and see how much of the obligation is left.

  18. Patrick/Pat

    Homeowners are NEVER going to give up — even if they lose their home, most are committed to exposing the fraud. The fraud is massive — coming in many shapes and forms. Authorities are aware – and do not know how to handle. And, much of the fraud — you likely know nothing about.

    This is not about a free house. Holding homeowners to a debt (it is not – and never was a mortgage) that far exceeds the asset – by fraud – is just unconscionable.

    Proposals rejected by Congress will have to be revisited as the fraud evidence mounts. There will be no choice — all cannot be concealed forever.

    TO ALL — usedkarguy is correct — all must pay attention to his #8. A national coalition MUST be organized that allows us to speak before Senate and House Banking and Financial Committees.

    The Patricks/Pats – do not want us to speak. But, what can be told — would even shock them.

    Those that know me from posting here — know that I have emphasized a national voice for a long time. Once asked The A Man – to organize- but, he did not feel that he could. Someone should take that step. It is imperative that we have a platform.

  19. OH YEAH, #8) The REPUBLICANS on Senate and House Banking and Financial Committees NEED TO HEAR FROM US. NOW!

  20. Happy 3 year anniversary to all you “deadbeats” who are still in your house (and my condolences to those of you who fought and lost). A couple of issues……

    1) Giving “deed in lieu” allows the bank to just take your house. You give it up for a soon-to-be broken promise of “allowing you time to re-group”. Probably 90 to 120 days and you’re OUT.
    I refused a request for “deed in lieu” back in August of 07. I’m still in my house.

    2) I agree that for some, taking the loss and walking away and chalking it up to experience is an option. However, after being screwed by banks, government, and the judiciary multiple times before, I opted to stand and fight.
    Didn’t know what I was fighting in the beginning; just knew that I got screwed somehow and I was going to find out how and why.
    3) As I realized that the judges, the courts in general, and the AG, CoC, DOJ, WDFI, FBI, and the ASPCA had no interest in protecting the homeowner, I chose to persist with complaints AGAINST the judiciary and the plaintiff’s counsel.
    4) Now that the foreclosure case has been withdrawn pending an ILLEGAL modification, I will respond in kind with another civil action, but also A DETAILED CRIMINAL COMPLAINT FILED AT THE LOCAL LEVEL. Supply proof of wire fraud and common law fraud, and the authorities MUST pursue the case. We’ll find out.
    I think I’m saying “DON’T GIVE UP THE FIGHT!”
    5) Mr. Pulatie, the fraud was rampant. There are borrowers with very LEGITIMATE defenses to a foreclosure preceded with predatory or criminal lending practices. I don’t think my broker was doing ME a favor by filing a fraudulent 1003, as SHE was the one with the $7000 commission slip a the end of the day
    6) Homeowners have no place on the national stage. Our story is one that, when presented, is subject to the old “blame the borrower” spin every time. Only PMSNBC comes close to the issue of the banks chicanery, but nobody is watching PMSNBC.
    WE HAVE TO START MAKING THE NEWS OURSELVES.
    7) I was reading the Kenosha News this morning, and it seems that 13 members of committee boards and commissions are resigning from their posts instead of submitting their FINANCIAL DISCLOSURES (statements of economic interests) as required by law. Now, do you still wonder who is collecting the real property taken via fraudulent foreclosure?
    8) The tipping point has been reached. Now is the time to push this thing RIGHT ONTO THE FRONT PAGE.

    How many of you can get to Madison, Wisconsin on Friday? Anybody? Buehler?

    all the news cameras are still there. Let US make some news……..

    Sign up now. Wisconsin Law page right on this blog. LET’S GO!

  21. Pat,

    Thank you for your civil and insightful response. I agree, this is an uphill battle. I see your points. Residential or commercial, the same laws apply, though. My resources are low to nil. As time goes on, however, I see these problems are not just about my little home, They are about my country, our way of life, and the legacy for my children. The issues go beyond the almighty dollar.

    If we don’t stay in the fight in some form or fashion, we concede to whatever the banks and politicians throw at us. We must not allow banks to continue to grow and become their own governments, so to speak, so that they own the laws and everyone must answer to them in one way or another. I believe this is the very form of what you are describing in what you have termed your “conservative SC judges,” BUT that does not make their rulings legal or right. Many of these judges are set in their ways, they have MBS pension plans and whatnot, but they will either have to get with the program and honor our laws or step down.

    Because things are changing in this country! The tide is turning. People are waking up from the nightmare that is history (James Joyce). It has taken a long time, but the movement is gaining ground. Thanks to people like Niel Garfield who believe in doing the right thing and educating the public, momentum is picking up. I see changes all over the place. More court wins, more people organizing…people gradually hearing the truth.

    One thing we can do is link to the various organizations that are forming across the country.
    One I know of is PICO National Network. Class-actions are forming at a swift rate. I see that money is the big hold up for those of us who wish to litigate and attorneys don’t tend to take cases on contingency. But, I think that time is coming and things are changing on a daily basis. The pendulum is swinging on the side of justice. Persevere!

    I would advise everyone to get their loans audited so they can see the evidence for themselves. Perhaps that will give them the impetus to forge ahead when they see the fraud in black and white…then their confusion will vanish and the answers will become clear.

    Okay, I probably sound Pollyanna-ish right now. The bank is trying to evict us as we speak. At times, I feel as if my life is on hold. I don’t sleep well. I have nightmares about the bank agents breaking into my home and violating my privacy because they have climbed our fences and tried to break our locks. Mindless vultures. Hkcon is right. We put a lot of money into our homes. I put in well over the value of the home plus improvements.

    I am joining forces in downtown Los Angeles next week and we are campaigning against fraud. There will be press coverage. I’ve never done anything like this in my life. I could be arrested. I don’t know. But I’m tired of being used and abused. The anger I feel toward the perpetrators is giving me the strength to stand up for what is right no matter what the personal cost. I will NOT give up. Banks are hammering out deals every day with people that squawk. They don’t want anymore bad publicity.

    We have to squawk. Squawk or Walk.

    Like Neil said, we don’t realize right now that most of us already own our properties and even if we leave, we will get them back down the road or get the compensation. It’s not all about compensation, though. If you are going to walk away, just do it, but don’t agree to it in writing. Whatever you decide to do, do not betray your own conscience.

    But hey, if you don’t feel this way, that’s okay. Dust yourself off and start over. I think we can still do that in this country ??

    I know they are doing it in Baghdad.

  22. Pat, your suggestion that a global solution of simply putting all of the houses back to the banks is utter nonsense. You seem to be missing the point that these mortgages are all fraudulent….fraud-lent…and there is no solution possible that does not deal with this simple fact.

    To argue that the judges won’t listen so you shouldn’t go the legal route implies a hand wringing and walk away approach. This is not how societies function or survive. That way of thinking has never worked….it allowed for the silence when Jews were being removed, when slaves were being traded, when Christians were tossed to lions. One MUST take a stand against these issues, or all is lost.

    Understand, we don’t need new laws. We as a society simply HAVE to fight and make damned sure that the laws that we already have are enforced and adhered to. Otherwise there is no hope for society.

    And the free house argument is too funny. Tell that to the banker buying a home on the courthouse step with a credit bid, the same banker who has no rights to that house whatsoever. Free houses? You betcha’.

    The bankers know that game exceedingly well. They’ve been winning with their lies and deceipt. That’s changing, and there are many of us here that will not stop until it does, and until we see the offenders placed in small rooms with built in furniture.

  23. Linda:

    Good job.

  24. I have been going on for a year now about all the talk that the people do rather than putting through any real action. Talk Talk Talk – NOW IS THE TIME.

    Both the government and the Republicans need to take a bac seat. Neither performed to prevent the mess in the first place and they should not have an opportunity to solely express how they believe this settlement should be handled.

    Again, where are the people’s ideas – The AG’s will not come up with a satisfactory settlement and we let it happen.

    I have my own plan and have decided to submit it to both – Geither and John Cornyn’s office. It will be buried along with others I am sure because it has no force and effect coming from one non profit agency who will no longer qualify for it after the plan is posted because it then gets into the political arena which we cannot do.

    So, that is fine. But I will get my two cents in even if no one else will read it.

  25. Hi Charlie:

    I am not Patrick and do not work for any one connected with any kind of lending and financial services. So you are mistaken when you think I am a party to the financial sector that caused the mess.

    Like many others nationwide I also a have a mess in my hands -although it is considered a commercial mortgage because it is a 22 unit apt. complex. Maybe the rules are different than residential mortgages. I am trying to learn that part.

    I have never flipped burgers for a living although I have done others things when I was in College and a graduate student as well.

    I would love nothing more than than to see a whole bunch of these people including mortgage brokers, Wall street guys and others in between go to jail.

    But to be able to do this we need many more judges, attorneys etc at the Federal and State level plus a lot of teeth for the regulatory agencies. This means monetary resources which means our tax dollars. Do you think the current political mood in the country will allow this?

    But sending people to jail still will not help me or anybody else recoup the money we have lost. In addition we will be supporting these crooks in jail with room and board as taxpayers.

    As a concerned citizen and tax payer I would like to see a lot of changes made. But with the present political mood and groups I doubt changes will be made.

    A $20 billion dollar settlement is a rounding error for the banks and even that is not likely to happen. They probably will get away with a lot less and perhaps a slap on the wrist and promised better behavior in the future

  26. Who wrote this article…give the money to attorneys for the deadbeats.

    Okay look at it this way.

    Attorneys for the origination contracts, attorneys for the PSA, attorneys as trustees for the trusts the mortgages should have gone into, attorneys for the CDOs, attorneys for the foreclosure, attorneys to defend the foreclosure, attorneys for the investors robbed by the fraud, attorneys to help the homeowners fight the fraud foreclosures, state attorneys (AG) to investigate, attorneys (for pretenders) to try to reach a settlement, attorneys for bankrupty, and now this One who wrote the article said legal aid attorneys for the deadbeats?

    Ask yourselves who is the real creditor, and from this chaos who benefited from the chaos and who benefits from the order out of chaos?

    Trespass Unwanted, alive, allodial, corporeal, life, live born, born alive, free, freeman, wholeblood, in jure proprio, in jure divino

  27. Linda:

    Your point is well taken. There is a great deal of truth in what you say. The fraud issue is obvious.

    But the point is how many home owners have the resources for a prolonged and costly fight with the lenders, unsympathetic courts and politicians beholden to real estate and banking lobbyists?

    The protracted legal battles could take years and cost thousands of dollars. I am not sure how many of us have the time and resources.

    My situation is a little different in that I have a small 22 unit commercial apt. complex in SC which has become a mess. How much can I expect a very conservative SC judge in Aiken or Columbia to be willing to look at the purely legal issues involved? I an afraid not much. Also can I afford let us say the $25K plus in legal costs that may be involved. I am afraid not.

    So the question is simple:

    1. I and many others have underwater mortgages and onerous terms that we cannot afford.

    2. The legal and other resource costs could be very high which many of us cannot afford.

    3. The courts around the country not just SC are largely interested in getting the problem over with. They largely want to ignore the legal issues. They have to get elected and need campaign funds.

    So in these circumstances if the laws are changed nationwide to allow Deed in lieu’s with no further recourse for the lenders and the 1099 imputed income is waived then the costs will be much less.

    I do agree to prevent a repeat of the mess the laws need to be changed. Also lenders must be forced to pay the due recording and other fees to the State, Federal and local authorities which by the way could solve the fiscal crisis at least at the State and local level.

    Thanks for your comment Linda
    pat balan

  28. FREE HOUSE????? Are you kidding???? most of these people have put far more money into these homes than the banks ever will or have. nobody is asking for a free home, quite the contrary, the bank is not even asking they are just taking free homes, AND THEY SET UP THE ENTIRE PROCESS, using us as dupes in there scheme. P. Pulatie, do you deny the criminal actions of the banks???if you do then please do something for me why don’t you, REFUND ALL THE MONEY YOU TOOK FROM HOMEOWNERS BEFORE YOU TURNED OVER THIS NEW LEAF. As one who paid you, and was told about all this fraud by you, and who subsequently lost all the paperwork that I gave to you as you never returned it, then I would think that your conscience would guide you. I have tried to keep quiet about this but your recent posts have made me rethink the idea and if I see you posting on here again I will seriously begin to think about suing you. And believe me, if I have learned anything in this going on 3 year process, it is how to make someone spend countless time and money defending themselves.

  29. Pat and Patrick (interesting names), i see the banksters are relentless in trying to have people like you come into OUR blog and have s**it come out of your mouth, nice try, now go back to your boss and tell them it isn’t working, tell them also that we will go to the end with this. “free house”? that alone gives away not only your ignorance on the real subject matter but also how lame of job you both are doing for your “bosses”, you better off just going back to flip burgers or whatever, I’m certain your insight and incredible wisdom will be much appreciated there.

  30. Stick to the fraud in the origination. The sub-prime Option-Arm Stated Income Loans. What happen to the 4506T form?

    If I signed it, this would verify that the lender received my taxes to take out the loan. If I didn’t sign it or it is missing then this would ask why the lender didn’t verify the income.

    http://wiki.answers.com/Q/What_is_form_4506-T_and_when_is_it_used

    Calling borrowers liars, stupid borrowers, or they’re using the note defense to get a free house is not justice.

    Investigating every sub-prime loan during the fraud years for fraud would be justice but every state and federal agency is doing all they can being passive looking the other way in my opinion.

  31. Patrick and Pat…

    The banks do not own our homes. They have no right to take them. If they did own them, why would they have to buy them back in a credit bid ? (so-called auction)

    However, we the people, have the right to sue and the right to due process to uphold the laws of this nation. Would you deprive us of that right?

    It seems that you have not read this column long. No one is saying we “deserve the home for free.” We are seeking justice here and in some cases, damages, because banks have not responded and are not using taxpayer TARP funds to modify…and/or they are not even bothering to locate our original paperwork or tell us who owns the mortgage, if anyone, so that we can work something out with them. That leaves us, the homeowners, to do the legwork and get mortgage audits to find the truth for ourselves. We are tired of being lied to.

    There are laws for this sort of thing. We homeowners want to honor the laws. They come in the form of RESPA-TILA, Fair Debt Collection Practices Act, and many other laws to protect citizens from crimes and misdemeanors.

    Have you not seen the fraud in the mortgage paperwork? No assignments are recorded, there is robo-signing, and some notes have been converted into securities, some have been completely lost or destroyed. The title are defective and clouded. Banks must prove ownership now. This is not the fault of the homeowners. And not our fault they jacked up appraisals to make more loans to sell on Wall Street.

    Banks and their cohorts are evicting people from their homes as we speak and they have authority whatsoever to do so. They are ruining our economy. And you want to endorse that behavior by having us simply sign over our deeds to them without recourse??

    Ok, let’s all sign over our deeds to the banks. That will fix everything and make it really EASY for the banks, now. In fact, let’s all just put our heads in the sand and ignore all the criminal activity and pretend it never happened. Then everything can just go back to the way it was in fairyland and the banks can keep ripping us off. And, our country can keep spiraling down.

    I am a homeowner and taxpayer of 15 years. I did NOT sign up for this nonsense. It’s illegal and wrong. The entire system needs an overhaul.

    Please try to see the whole picture here of what is going on in this country and the world and not just the microcosmic house and “deadbeat homeowner.”

    Here is a good web site someone gave me yesterday: http://www.moveyourmoney.info

  32. Actually, that option does exist, except for the “recourse issues” in some states. But, that can be waived in the Deed in Lieu negotiations.

    But, that alternative is not what most of the people fighting foreclosures desire. They want to argue that the Note is void and that they deserve the home for free.

    Get real…..

  33. THERE IS A EASY WAY OUT FOR ALL WITH LESS COST.

    1. ANYONE WITH A UNDERWATER AND UNAFFORDABLE MORTGAGE SHOULD BE OFFERED A DEED IN LIEU OF FORECLOSURE. LENDER SHOULD TAKE THE PROPERTY BACK

    2. THERE SHOULD BE NO DEFICIENCY JUDGEMENT OR OTHER RECOURSE.

    3. THE IRS SHOULD WAIVE 1099 TAX CONSEQUENCES OF SUCH DEED IN LIEU

    THIS WILL ALLOW THE MESS TO BE LEANED UP AND EVERYONE TO MOVE ON WITH LIFE. COST WILL BE FAR LESS FOR ALL ESPECIALLY THE LENDERS AND THE GOVT. TAX PAYER

    PAT BALAN

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