FDIC Proposal? Pay Borrowers $20,000 To Walk Away

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EDITOR’S NOTE: At this point I have absolutely no corroboration of this story. Normally I would not print it for that reason. BUT I am starting to get scattered reports of some very similar settlement structures involving as much as $50,000 for the homeowner to step away. I did a little thinking about it and it actually makes some sense from the banks’ point of view.

As more and more revelations come spewing forth from the court system regarding fabricated, forged document and perjured testimony the momentum for homeowners to contest foreclosures is picking up. Right now the situation is still solidly with the banks with around 96% of homeowners meekly walking away from their home, not realizing that the “lender” was paid and that the “bank” or “trustee” that is after them is getting a free house.

The figure of 4% of contested foreclosures is double what it was just 18 months ago at 2%. If it starts rolling, we could be at 8% or 16% or more. Paying the borrower to get out eliminates one more potential decision that goes on the books against the banks. From the banks’ point of view the payment of even $50,000 is spread out over many (hundreds?) more homes that might otherwise be contested.

When you do the math, you can see that the numbers closely match the cost of “cash for keys”. In fact, it could cut the cost of cash for keys if it has the desired effect of suppressing adversary proceedings with the usual claims of fraud, appraisal fraud, forgery and fabrication of documents. And it eliminates the potentially huge liability out there for appraisal fraud, slander of title, and identity theft by the securitizers.

As for the rest of the article about how unfair it is to everyone else, the writer is missing the point completely. These were deals that were closed by way of deception. If the investor-lenders knew the truth, they would never have advanced the funds. If the homeowners knew the truth they would never have put up their house (remember 50% of these deals were refi’s) much less signed any papers.

While the number of lies told at closing is astonishingly large, the main one was that the property was worth more than the loan and that this had been confirmed through standard underwriting procedure by a real lender acting as a lender at risk. This was not true and so the victim of this fraud has an absolute right to be put back in the position he/she was in before they were defrauded.

The writer below is arguing against the rule of law and inserting some distorted sense of morality that is not applied in other types of transactions where the same thing happened. Think about it — why else would the offer be made to walk away? It isn’t a gift, so the banks must believe they are getting something of value out of that payment. What is it that they are paying for? The answer is obviously that they don’t want defend actions for fraud. Otherwise they would just clean up the paperwork and go ahead with foreclosures that would be mainly clerical procedures.

FDIC Proposal: Pay Borrowers $20,000 To Walk Away

In its attempt to save the housing industry, government regulators have come out with one dumb bailout after another. The FDIC may have topped them all however in their recent proposal to pay borrowers up to $20,000 to walk away. [Thanks L!]

The five biggest US mortgage servicers were told this week at a private meeting with regulators to consider paying delinquent borrowers up to $21,000 each as part of a broader settlement of the foreclosure crisis.
People who attended the meeting, chaired by the Federal Deposit Insurance Corporation on Monday, said the industry-wide “cash for keys” program would involve the biggest servicers, led by Bank of America, paying borrowers as an incentive to leave their homes.

Banks would pay borrowers who are more than 90 days behind on mortgage payments up to $1,000 to seek independent financial advice and up to $20,000 in cash as a “fresh start” payment towards living costs in a new home. They would have to vacate their properties quickly and leave them in good condition.

23% of all mortgage holders are now underwater.  What motivation would any of them have to continue paying their mortgage if they could be paid $20,000 in cash if they quit paying their mortgage for several months and walked away?

If the FDIC is looking to punish lenders, this certainly ought to do it.  It would also punish the rest of us:

[T]he write-offs would reward the most financially irresponsible borrowers, while punishing responsibility. If you were thrifty, and made a big downpayment, you will not be eligible for a write-off, since your mortgage will still be smaller than your house is worth, even if your house declined in value. But if you saved little money, and took out a no-downpayment loan, your loan may be bigger than the value of your house even if the value of your house didn’t fall much. Even a small fall in value would leave you “underwater” on your loan, and thus eligible for a bailout under the proposed settlement, to reduce the size of your mortgage to less than your home value.

(Eligible doesn’t mean you will necessarily get a bailout; the settlement requires banks and mortgage services to satisfy numerical “quotas” of how many mortgages to write down, not to write down the vast majority of such mortgages. The banks actually have perverse incentives under the settlement to give such help to the people who least need it, according to sources cited in a Washington Post story.) Banks say the proposed settlement would discriminate against people who “paid on time and honored their obligations,” that it raises “serious moral hazard issues,” and “could retard the recovery by encouraging borrowers to default.” The settlement will also increase borrowing costs in the future for home buyers, since banks will have to hedge against the risk of future loan write-offs by charging higher interest rates (much as credit card companies raised interest rates and fees after Congress passed a law limiting penalties for irresponsible credit card holders).  So credit will become more expensive for those of us who are responsible in paying our creditors regularly.

Why is this plan even on the table?

The Department of Justice; state attorneys-general; banking regulators, including the FDIC; the Treasury; and the new Consumer Financial Protection Bureau are among the agencies trying to come to a settlement with the industry. A combined penalty of about $20 billion has been discussed, with one idea to use the money to write down the outstanding debt of struggling homeowners.

However, prospects for a single “mega settlement” have worsened because officials disagree on the level of penalty and whether money raised in fines should be used for a principal writedown. The banking regulators, who do not agree among themselves, are nonetheless keen to come to an agreement quickly.

The “mega settlement” may be an attempt for a simple solution, but the situation for every borrower is different, and needs to be treated as such.  There is no “one size fits all” solution to mortgage fraud when it’s not always clear in each instance who was defrauding whom, or even if fraud occurred.  Here’s hoping this “walking away for fun and profit” proposal dies on the table.

54 Responses

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  2. Neil,

    Information you share confirmed by Sheila Bair Chair of FDIC on 60 Minutes last night.

    Did you notice how uncomfortable Sheila Blair is/was making her official public statement on behalf of FDIC?

    Sheila Bair, Chair of the FDIC
    (Federal Deposit Insurance Corporation)
    “It was just a matter of cutting corners.”

    Consumers Attention:
    Do not stop run to a ‘Foreclosue Defense Attorney’ for the Plaintiff ‘Trustee’ may be without standing. The ‘Trustee’ filed documents on behalf of the SELLER as per silent agreements invoked when consumer becomes late during a default event.

    Find the originating agreements in 1990’s and you’ll find the private members of the financial exchanges (New York Stock Exchange) (American Stock Exchange) (Chicago Stock Exchange) …

    The ‘Trustee’ files documents created and prepared by the SERVICER, who has rights as SERVICER.

    For example, Wells Fargo Home Mortgage (a private brand label0 orders foreclosure transactions processed in the name of and by whom including DOCX and LPS whose jobs are to correct/change/sign documents.

    The robo-law mills sent the instructions to file compalint do file falsified documents. Like they file the complaint in court without the Assignment.

    Do the Robo-law firms send the Assignments to DOCX and LPS to be ‘corrected’?

    SERVICER does not have ‘folder’ of documents sent with the ‘Assignment’ to DOCX and LPS. Who has that folder? The Settlement Agent? Sub-Servicers? Underwriters?

    Fact of the matter that attorney’s in the states employed by the law firm robo-credit debt collection foreclosue mills file on behalf of SERVICER the documents filing falsifed documents with the local county courts.

    Wells Fargo’s John Stumpf publically stated Wells Fargo’s foreclouses are different that their own employees pull the documents to be foreclosed.

    Wells Fargo & CO/MN uses private brand label ‘Wells Fargo Bank NA’ and falsely uses term “LENDER” when they discuss mortgage loans for review during a closing.

    As SELLER of the discounted loans they are only acting as SERVICER during the ‘retail closing!.

    The foreclosue falsified documents filed by SERVICER ‘Wells Fargo Home Mortgage’ on behalf of Wells Fargo Bank NA is on behalf of the SELLER who acted as Depositor, who acts as SERVICER who engages the TRUSTEE to foreclosue allowing the SERVICER to buy back the bad debt and get the house.

    Why does the TRUSTEE act in collusion for they do not seem to place the loans into the trusts and do not have the documents showing the owner.

    The private members are co-conspirators in the ponzi scheme. All were able to launder currency out of the nation one mortgage at a time.

    The collusion, conspiracy and collaboration to coverup deceptive acts of the SELLER (who as a wholesale seller of discounted loans did sell and sold the discounted loans deceptively acting as SERVICER took consumer property by deception).

    SERVICERS are not the owners of the loans and yet have ‘custody’ of the documents. Would the reason the TRUSTEE goes before the court and is without the documents is so the goverment can’t find fault with either party – the evidence of the fraud, theft, allowing third party to take possession of property in larcenous manner?

    Owning a ‘loan#” is not ownership of the property for the transactions of the BUYER were with intent to launder currecny and so when will the goverment figure out their employees in the FBI, Financial Crimes, need to just read the public documents and they too can get up to speed with who harmed and how the nation has been harmed.

    Who is the party who is owed the debt?

    One must ask why the BUYER of the LOAN during origiantion does not come forth! Why?

    I’ve read the agreements have you?

    The Ponzi schemes are layered.

    Stay on Point like the brilliant Judge in Alabama who ordered the Plaintiff (TRUSTEE) did not have Standing and ORDERED the Trustee to never every file for foreclosue again the loan never placed in the trust.

    The TRUSTEE violating NY Law Trust Rules does not have standing to come before the court to claim the property.

    Why should the American consumers bear one more dollar of the fraud as suggested by FDIC Chair?

    Consumers you do know that a goverment settlement you pay for the costs through taxes.

    FDIC chair pushes for bank fund to settle foreclosure disputes

    The Hill (blog) – Peter Schroeder – ‎Apr 3, 2011‎
    A top banking regulator believes banks may need to kick billions of dollars into a fund that would pay homeowners to settle ownership disputes that emerge during foreclosure proceedings over documentation …

    http://www.huffingtonpost.com/2011/04/04/mortgage-foreclosure-crisis_n_844330.html

    Foreclosure fraud fighters, and Lynn Szymoniak – thank you for leading the way, and please continue working with 60 minutes

    http://www.zerohedge.com/…/60-minutes-foreclosure-fraud-featured-sunday-60-minutes

    60 Minutes link:

    http://www.cbs.com/primetime/60_minutes/

    Episode 4/3/11
    http://www.cbs.com/primetime/60_minutes/video/?pid=EASm0xf__2FkqCeVCR_dOKaim25TarYx&vs=homepage&play=true

  3. BSE,
    YOU ARE RIGHT! In 2009 Obama met with that Harvard professor and the cop that arrested him. I think they called it a “beer summit” … WE should be able to invite ourselves over and have a ‘come to jesus meeting’ between Obama, Bill Black and anybody else that wants to be there (!?!).
    We can even bring the beer!

  4. BSE

    There are certain states that started the free-for-all fraudulent foreclosures — AZ — CA — FL.

    People have to get more involved beyond their individual case.

  5. The new settlement in force from any bank will allow you to live in the home with out payment up to the date of the Trustee Sale. The Banks also require for you to sign a non disclosure statement. Basically this is a 90 day trade for rent and provides a legal means
    to steal the house. Not to mention it is a waiver for you waive any investigation regarding the accountability of all payments stolen after the investment pool and trust were dissolved. These bastards belong in jail !

  6. It is time a few bankers (C.E.O.) and the attornys who represent them go to jail.

    Enough is Enough !

    Be a Patriot – “STOP your Mortgage Payment”

  7. The A Man – Thiis the best posting ever !

    “New Proposal Reducing the CEO’s salaries to $20K with no bonuses. It is cheaper than keeping them in Jail.”

    NEVER AGAIN

  8. It is time to unleash Bill Black. Enough is enough !

  9. ANONYMOUS

    Yep. NO hope for Arizona. Judges may see a break in the title chain. But they do not rule unless it favors the bank. The fleecing continues in AZ. No matter how upside down you may be . You will soon be forced to the streets. Seems some Senator preferrs to build a fence on the Mexican border and would rather see familes who pay state and federal taxes be displaced into a school districts opotite of the town. No matter these are not his worries becuase it is not his family and he will reap the benefits not matter. It is all free money to him and the others on capital hill. .The hell with the peasants who they robbed. AZ and DC have become lawless.

  10. Mike H,

    Think you mean “secured” for FHE.

    BSE

    McCain??

  11. He is part of the Keating Five and well connected with a foreclosure mill by name of T&B.

  12. Interesting. The federal homestead exemption in
    bankruptcy equals about $20,000 for unsecured debts.
    Most MERS mortgages are legally unsecured because the Note got separated from the mortgage,
    therefore the judgments should be unsecured and eligible for the State or Federal HX exemption in
    Ch 7 if owner occupied.

  13. how about we start a “cash for Congressman” program? oh that’s right, too late. the bankster already beat us to that idea.

    “If you cannot afford an elected official, one will be appointed for you”

    -SGW

  14. That’s what I’m talking about BlaqRubi!!! I’m sooo TIRED of TALKING!!!! ACTIONS SPEAK LOUDER THAN WORDS!!! Correction: We NEED to get ORGANIZED like the Floridian, Egyptian and Libyian people!!!! STAND FOR NOTHING, FALL FOR ANYTHING!!!

  15. WHAT NERVE!! $20,000 to WALK AWAY? I am so pissed off I can’t even type!!

  16. SIX years for me! RIDICULOUS! CLEAR and BLATANT FRAUD. Look, I don’t believe these people “don’t have a clue” they know EXACTLY what they are doing. The banks have infested our government like ANTS infest your kitchen after a rain storm. We can write and blog and BITCH all we want. We NEED to get ORGANIZED like the Floroida people. We need to GET SERIOUS about sending a message that we mean business! Now the Month of May, don’t pay your mortgage is a GOOD start. We need to FAX , Call, TWEET and Facebook, Our representatives ALL ON THE SAME day with the SAME MESSASGE. We need to CONTACT the DOJ on the same day with the SAME message! I have filed complaints with the Department of Corporations, the Depart of Insurance, the Dept of Real Estate. I have filed complaints against JUDGES. I have been in litigation for almost 6 years for a home that I paid $149,000 for. Wanna know how much GreenTree attempted to EXTORT 2,000,000.00. That is NO typo. We need to make a plan and make it happen. AND there is a TAX BREAK for monies RECEIVED as the result of REAL ESTATE Fraud. I will find the Form No. and Post it. I want QUIET TITLE, MONETARY COMPENSATION for 6 years of litigation, Punies, and some extra money to take my son to Disneyland in PARIS. Bastids. I am shocked and disappointed that President Obama is NOT stepping up to the plate, and apparently playing DUMB to the blantant fraud perpetrated upon the people by the slimy ass banks. Anybody who wants to get SERIOUS and organize something email me at blaqrubi@yahoo.com. Let’s get SERIOUS. I’m TIRED OF BITCHIN….

  17. He is part of the Keating Five and well connected with a foreclosure by name of T&B.

  18. CONGATULATIONS LOUISE!

    Well done! I couldn’t be happier for you!

  19. Yes, but I am going to sue for 20 Million….

  20. BSE

    Do not keep us in suspense!!!!

  21. Confirmed Whistle blower report: US Senators calling both State and Federal judge to press on with foreclosures. it is an immediate continuation. .
    Guess which fence builder is urging and forcing the issue ?

  22. The greed and the need to deprive others unable to share is symptom of living in a reality of never having enough it is the power and control that they must have which drives them
    these are flaws of humankind I think we all have such flaws to greater or lesser degree. But how much can you eat. 20k is just plain silly to even consider for a nano second rember why we are in this position they are outta control controlling no boundaries our laws and courts arnt holding them back don’t sell your soul for 20k or even
    50k all
    if us need to be restored to a ” better than position” demand it they used you they hurt you and will do it all over in s heartbeat unless we get those boundaries back. Just because it’s Been their standard practice doesn’t mean the populous should accept it because for one thing it never conformed to standards of practice. Over to you Liz

  23. I have some good news here in South Carolina. I have been in FC for 3 years and 4 months. I went to a final hearing on my FC action yesterday, and the Judge said he would dismiss the FC if opposing counsel could not prove they own the loan. He asked opp. counsel: “Do you have an assignment from the original lender American Brokers Conduit to American Home Mortgage Servicing that was recorded at the Reg. of Deeds Office? She said NO! He told her she had 21 days to bring proof, or he would dismiss the FC action.

    I have a Quiet Title action going as well. This admission will directly impact the QT all to my benefit. This is fabulous! Everybody who reads this blog: Please do not give in to them. Sue them!
    Burmese8@yahoo.com

  24. Aloha All,

    I have a copy of a letter that was written to one of my clients offering them 25,000 to walk away from the lawsuit. This is true stuff and such a slap in the borrowers/plaintiffs face!!

    Get your forensic loan analysis & securitization combo from LuminaQ

    Mahalo,

    Lori Enriquez
    Sr Loan Auditor
    LuminaQ

  25. Yea with the new mortgage regulations http://www.cnbc.com/id/42322120, that 20K after taxes wont be able to secure a good apartment in NY. They can take the 20k and shove it……

  26. FKA, I’m with you…$20,000 even $50,000 is not cool.
    In the scheme of things and it was a scheme played on us, they are calling it a ‘settlement’ look at it like this.

    Right now, the home is yours with a free and clear title, all actions by the pretenders is pure theft.

    Yet this homeowner, regardless of status of right side up or upside down, is willing to “settle” (used loosely) and walk away from the home for $20,000 or even $50,000.

    Unless you live in Detroit in one of those decrepit neighborhoods, then you have one brain cell between your ears and aren’t even using it if you accept that ‘settlement’.

    This is the one time we get ownership of what is already ours and we will ‘sell our soul’ for money not worth the paper it’s printed on.

    All of this is my opinion, and I know nothing, so my opinion is not worth anything, and I don’t give legal advice because I don’t know legal things.

    I paid more than that in my life energy for that worthless paper to pay for access and ownership of my shelter. There is ‘triple’ damages for what I’ve been through.

    Light and Love,
    Trespass Unwanted, alive, allodial, corporeal, life, live born, born alive, free, freeman, in jure proprio, whole blood, in jure divino

  27. How much does a lobbyist cost? If everyone reading this gave $10. would that get us anywhere?
    Why don’t we buy the judges back?

  28. make it happen,

    agreed.

    they were hoping us dumb Americans would just walk away or run or not question. They were not counting on a few in the beginning saying, what’s going on here? And the few turned into more, and more. HaHa. The majority of people are white hats while the few black hats make trouble. It always is.

    We were set-up. The white sox scandal all over again.

    Well, I think the banks and pretenders ought to turn in the keys and walk away. Otherwise they might just find a mob on their doorsteps and then they are really fooked.

  29. The mere sentiment that some borrowers were “irresponsible” and others weren’t makes my blood boil. What CRITICS fail to realize is the majority of borrowers saw the opportunity to buy a home as an investment, just as investors were making an investment when they provided funds for mortgages. If borrowers didn’t intend to make investments in their home, they would’ve continued renting. Borrower’s with securitized loans made payments to GOD KNOWS WHO for YEARS before they went into default (if they were ever in default in the first place), borrowers paid taxes, insurance, maintenance, improvements etc. with the false belief that they were making INVESTMENTS in something they intended to some day OWN. What is so irresponsible about that? Is it that hard to fathom that every homeowner accused of being of default, is not actually in default? Is it hard to believe, at the end of the day, that most of the CRITICS are in the same boat as the “irresponsible” borrowers? I challenge the CRITICS to request their “lender” produce their original documents; to investigate their loans for TILA and RESPA violations etc. Then I challenge the CRITICS to search their title as far back as the previous owner….did YOU find that the previous owner could challenge YOUR title??? PLEASE STOP POINTING FINGERS AND FIND A SOLUTION!! WE’RE ALL IN THIS TOGETHER!!!

  30. I have a question. We know that the walk away money will be taxed because it would be considered income. The question I have is does agreeing to the blood money mean that the banks or collection agencies will not come after you for the deficiency if the house is sold for less? Seems like the homeowner still looses big time and the banks get a free house.

  31. The comment: “[T]he write-offs would reward the most financially irresponsible borrowers, while punishing responsibility” reminds me of a conversation I had with a county council member when I told him I wanted to educate the public about the differences in source water (the difference between surface & ground water); and he remarked, “but Ginny, if you do that then everybody will want good water.”

    This “financially irresponsible” remark is just as absurd. We now know that all mortgages written between 2003-2008 were likely part of the Ponzi scheme and that MERS loans likely leave a clouded title trail – so, yes – everybody deserves to have their loans re-written… Yes sir, everybody deserves good water!

  32. Leapfrog…”The arrogance of BAC and their counsel never ceases to amaze me. They are claiming they own my mortgage and they don’t have to prove it and its none of my business or the judge’s business or the trustee’s business”

    Um, YES it IS your business! You have a right to know exaclty WHO you are paying your money to each month! And they have to, by law, if you request the information, they are supposed to tell you EXACTLY who your lender is, who owns your mortgage, and anything else you demand from them. They should have that info handy, or know how to get it. And it shouldn’t take them any 30 days to cough up the proof, either.

  33. leapfrog…it’s funny you should mention foreclosure mills processing paperwork…
    We were told by BAC Home Loans Servicing that our loan went into foreclosure on 2/28/11, and that Sirote and Permutt were handling the foreclosure. I’ve been in constant contact with Sirote, and they don’t have the file yet…it’s been a month. We have received no formal letter from BAC stating our home is indeed in foreclosure, nor did they inform us that they were even reviewing the account for foreclosure. We got nothing in writing!

    The foreclosure mill doesn’t have the file, BAC is demanding full reinstatement of the loan, including foreclosure “fees” and foreclosure attorney fees, and the foreclosure attorneys haven’t even got the damn file!
    They’re not getting a red cent out of me, or my husband, until they can prove where they’ve posted my payments I’ve sent them (always paid over what they said to pay by at least $300-$500 for the past year to get caught up once they decided to just cancel our loan mod out from under us, after accepting payments on that loan mod for an entire year first).
    leapfrog…we may need to talk. email me please….dory@ohiostreet.com

  34. Yes, Dory, my docs are blank too and they never sent me signed copies and like you, I also have MERS involvement.

    My originator went BK and “somehow” the assets were distributed WITHOUT THE TRUSTEES permission. Do you think “somebody” might be in hot water for THAT?

  35. “I have seen the same game played by many others who lie with impunity,thinking they are smarter than everyone else, only to have things collapse at the end.”

    Ian, I FERVENTLY hope so!!!

  36. Here’s another little tidbit I was told, by the Title Company who did our closing on this house in 2007. It is “industry” standard to hand out blank, unsigned copies of closing documents to homeowners at the time of closing!!! Ok, now how corrupt is that?
    That leaves far too much wiggle room in the event your original loan documents, closing docs, ANY docs get lost, destroyed, or screwed up…they can simply go in and do a “copy/paste” job on the signature lines!

  37. Dory: I like your attitude! If more of us stood up for our rights, fraudclosuregate would snowball out of control and avalanche on these pretender-lenders. Then they’d probably go whining to the Treasury/Feds for another bailout.

    That is really interesting about the signature thing – wonder what they are hiding? LPS/Doc-X can’t do their robo-signing anymore as the FBI is investigating (lol – I have little hope anything will be done THERE).

    Of course, I’m sure the bankster will just find another cut-rate foreclosure doc mill to process the fraudulant paperwork. Hopefully, our counsel and judges are sharper than that.

  38. They know they’re corrupt…I’ll give u an example of just how badly..
    we hired legal counsel out of birmingham, al to defend us in litigation against BAC Home Loans Servicing, Freddie Mac, ReconTrust, and MERS. BAC home loans servicing is REFUSING to speak to our legal counsel because the signatures that the attorney has for my hubby and myself DO NOT MATCH what BAC has on file from the loan origination documents? Holy Shit! How dumb do you gotta be to realize if the signatures do not match, you’re in deep trouble!
    We have demanded from BAC any and all copies of closing documents they have. They’re going to take “at least 30 days” to respond…yeah, sure, just enough time to find someone at that company who can forge signatures pretty well! It only took them one day to realize the signatures didn’t match what our attorney has for us….why now will it take 30 days to send us proof? BECAUSE THEY ARE HIDING SOMETHING BIG!
    Homeowners….please don’t cower down to these big banks, their servicers, your lender, or anyone else in the real estate/mortgage beat! Fight them! Crawl out of the mousehole, get your bearings, and sue them!!! You have the right, you have the fight!

  39. Dory: The arrogance of BAC and their counsel never ceases to amaze me. They are claiming they own my mortgage and they don’t have to prove it and its none of my business or the judge’s business or the trustee’s business. I sure do hope the latter two feel differently!

  40. Any form of payout on the horizon for homeowners, SMACKS of damage control by the bank. Lawsuits keep surfacing daily from institutional investors to the small homeowner. Banks already know what lies ahead in the wake of potential liabilities. The cost of defending lawsuits by the banks is staggering and the banks are well aware of this having miscalculated the real numbers and the determination of a cat backed into a corner (Homeowner). If title or any other issues regarding securitization of your mortgage were not corrupted, THERE WOULD BE NO OFFER! DON”T GIVE IN! You are a domestic soldier fighting on American soil and the terrorist is the bank.

  41. leapfrog…..let them whine about “unjust enrichment” to the courts. They are the ones that are being brought up on unjust enrichment charges. Just look up the legal term and you can see that they’re barking up the wrong tree.
    BAC is simply a servicer, and there arent any laws protecting servicers from being hauled into court on TILA violations, RESPA violations, RICO charges, etc. That’s what is really chapping their asses.
    Personally, I think the “lenders” on these loans should turn around and penalize the SERVICERS that they HIRE to do this to people…they’re creating their own misery here. And they’re looking to the regulators to help pull them outta the hot seat? Yeah, I’M SO SURE. The problem shouldn’t have ever gotten this gargantuan in the first place, if they hadn’t been so damned greedy.

  42. That is $20K no bonuses or Stock options or any other options.

    And I am being extremely Generous

    NEVER AGAIN.

    A GOOD BANKSTER IS A JAILED BANKSTER

  43. New Proposal Reducing the CEO’s salaries to $20K with no bonuses. It is cheaper than keeping them in Jail.

    NEVER AGAIN

  44. I’m in a lawsuit against BAC too, Dory. If more and more of us fight this way, we can topple the liars and crooks and take them down. BAC is whining to the judge about “unjust enrichment.” What an utter load of bullshit. They would be the ones unjustly enriched, as they have NO CLAIM to my home, REFUSE to prove chain of title and have never contributed one cent to my property.

  45. ok..one last post and I will give it a rest already.
    I’m willing to bet that there will be some sort of contingency clause along with the $20,000.00. They’ll probably want or demand that John Q. Homeowner NOT sue them in a court of law after receiving the $20,000.00.
    It wouldn’t surprise me one bit.

  46. What these people who are too close to this project fail to realize is this….where the Hell are all these former homeowners going to find alternate housing? Hello….their credit is RACKED because of being in default. $20,000 as a downpayment on ANYthing other than a cracker box just isnt gonna cut it. And with this so called “plan” is going to come more stringent credit requirements…just to try to buy another home they’re gonna have to cough up, argueably, at LEAST another $10,000 to $20,000 on top of their “shut up money” just to afford a downpayment on a NEW home, only to face more of the same crapola from the lenders/servicers/banks/brokers/realtors….it’s a never ending cycle with these institutions.
    It’s gotta end, and it needs to end with these big banks having their pocketbooks cleaned out, and the front doors to their establishments padlocked.

  47. Consider being $ 250 K upside down, and $ 170 K out of pocket which includes double payments over 5 yrs and property improvements plus a $ 30 K down payment. These dirty bastards belong in jail ! A mere $ 20,000 will just force me to continue the fight. Another slap in the face by the US government who continues to cover the crimes committed by their banker buddies. They can go to hell. Slavery does exist and is promoted by the US Government.

    NeVer AgaiN!

  48. FKA….for the regulators to expose their own fraud and collusion would imply that they have some sort of moral fiber…that’ ain’t gonna happen, EVER. It would mean lack of Americans trust on their behalf, and well, we can’t have that now can we???
    And I’m with you…what is 4 years of my life worth, notwithstanding the past 2 years of which we were told we were under a loan modification, and actually weren’t, but BAC took payments, cashed them, and held them in a “fees due” account for over 6 months at any given time, making us later and later on our payments, SCREWING up our credit in the process….how do I even BEGIN to put a price on ALL that?
    Oh, wait, I know….LAWSUIT!!!!!

  49. Obama quotes” To brush aside America’s responsibility as a leader and, more profoundly, our responsibilities to our fellow human beings under such circumstances would have been a betrayal of who we are”

    Seems this S.O.B continues the cover for his banker buddies while his fellow human beings in the USA are being continued to be fleeced and kicked out into the streets.

    What a two faced S,O,B.

  50. This is absolutely unbelievable. $20,000 to just give up fighting to keep your home, and walk away, so that the banks/lenders/servicers don’t get caught with their hands in the “fraud” cookie jar!
    Nope, sorry. It’s going to take more than $20,000 for me to shut up and not fight them!!! No amount of money is worth what these unethical people are getting away with doing to homeowners.
    Nevermind the fact that those of us who did purchase homes, through subprime lending, had to cough up a HEFTY downpayment (mine, for instance was $40,000) just to buy a home that was probably worth well less than what we were told.
    This is crap. No other words for it. It’s crap.

  51. Make the $50,000.00 tax free and I’ll consider it. I won’t walk for $20,000.00, especially if it is going to be considered taxable income.

    The month of May is the “DON’T PAY YOUR MERS MORTGAGE” month. That should help those who are struggling with the idea of strategically defaulting into making the decision to end their mortgage payments.

    Student loans too.

    Stop the insanity.

  52. Great post Neil- FKA great summary for all who are in the same boat- it seems as though all the regulatory agencies are playing the game of wack-a-mole, when one problem pops up,and they whack it down,two more problems pop up, and when they whack those two down, another one or two pop up, in an ever-increasing cacaphony of fraud. So it wouldn’t surprise me if what you heard,but have not yet corroborated, is true. I have seen the same game played by many others who lie with impunity,thinking they are smarter than everyone else, only to have things collapse at the end. Keep up the good work.

  53. Hmmm…What is 5 years of my life worth? Plus the 20% down,30k in upgrades,5 years of taxes and upkeep,3 years of emotional distress,mortgage fraud,servicer fraud,foreclosure fraud,a year of litigation costs so far,loss of income from bogus public lawsuit,credit destroyed…etc!!!
    Sue them!!! RICO, Fraud, Quiet Title, RESPA, TILA, Unclean Hands, Negligence, emotional distress…The regulators will not expose their own Fraud and collusion…

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