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EDITOR’S NOTE: We are going to see a lot more of this, considering recent developments. Attorneys ought to sharpen their pens and get ready to do battle. This may be more profitable to attorneys than personal injury.

Wrong foreclosures will cost 16 lenders

1 comment by Derek Kravitz – Apr. 14, 2011 12:00 AM
Associated Press

WASHINGTON – The federal government on Wednesday ordered 16 of the nation’s largest mortgage lenders and servicers to reimburse homeowners who were improperly foreclosed on.

Government regulators also directed the financial firms to hire auditors to determine how many homeowners could have avoided foreclosure in 2009 and 2010.

Citibank, JPMorgan Chase, and Wells Fargo, the nation’s four largest banks, were among the financial firms cited in the joint report by the Federal Reserve, Office of Thrift Supervision and Office of the Comptroller of the Currency.

The Fed said that it believes financial penalties are “appropriate” and that it plans to levy fines in the future. All three regulators said they will review the foreclosure audits. Under the agreements reached, the lenders and servicers have 45 days to hire an auditor and will “remediate all financial injury to borrowers caused by any errors, misrepresentations or other deficiencies.” There is no minimum or maximum dollar amount identified.In the four years since the housing bust, about 5 million homes have been foreclosed on. About 2.4 million primary mortgages were in foreclosure at the end of last year. An additional 2 million were 90 days or more past due, putting them at serious risk of foreclosure.Critics, including Democratic lawmakers in Congress, say the order is too lenient on the lenders. House Democrats introduced legislation Wednesday that would require lenders to perform a series of steps, including an appeals process, before starting foreclosures.”I want to know what abuses (the government agencies) identified, which banks committed them and how their proposed consent agreement is going to fix these problems,” said Rep. Elijah Cummings, D-Md., ranking member of the House Government and Oversight Committee. “Based on what I have read … I am not encouraged at all.”Sen. Tim Johnson, D-S.D., chairman of the Senate Banking Committee, said the agreements struck were a “step toward addressing the improper and fraudulent practices to which many of the country’s largest mortgage servicers have admitted.”The other lenders and service providers cited by the agencies include: Ally Financial Inc., Aurora Bank, EverBank, HSBC, MetLife Bank, OneWest Bank, PNC, Sovereign Bank, SunTrust Banks, U.S. Bank, Lender Processing Services and Merscorp.Citigroup said in a statement that it had “self-identified” needed changes in 2009 and that it has helped more than 1.1 million homeowners avoid foreclosure.”We are committed to working with our regulators to further strengthen our programs in these areas and meeting these new requirements,” the company said.Ally Financial, formerly known as GMAC, said it had not found “any instance where a homeowner was foreclosed upon without being in significant default.”Without specifically identifying instances of bad foreclosures, the government agencies noted in the report that the “deficiencies in foreclosure processing observed among these major servicers may have widespread consequences for the housing market and borrowers.”John Taylor, chief executive of the National Community Reinvestment Coalition, a consumer-housing watchdog, said the action is a year too late.It does little to help those who are just now wrestling with a foreclosure and those who have already been displaced, he said. Rather than swiftly seizing people’s homes, the banks should have done a better job helping to lower people’s mortgage payments, he said.”This should have happened a long time ago,” he said. “There are so many people who, if they had received a meaningful modification, could have stayed in their homes.”

22 Responses

  1. if you can get afford an attorney, get one now, rather than wait for the theives to forclose on you. I have been paing my morgage pursuant to the permanant modification signed off by Bank of America, I month later, i got a notice of default. This week I got an eviction notice left on my door step. today I got an attorney. Pray that I prevail, if I do, I will share it, as to help others. It is no longer about being right, it is more about greed and obtaining wealth as the expense of innocent law abiding citizens. We are in a shamefule world.

  2. […] View the original article here LikeBe the first to like this post. […]

  3. Richard, in bk court you have to first file a “request for default” with the clerk. I take it you have an adversary proceeding? OR is this a motion which has not been answered?
    I am not an attorney. Nothing I ever say, write or send is intended as legal advice!
    You will find this info in the Fed Rules of Bk Procedure.

  4. Richard S: The other side will just file some bs mtn that the failure to answer was inadvertant or that it wasnt’ served by you properly. They sometimes don’t answer on purpose to mess with you. Be prepared – when they do that, it’s to make you smell victory only to lose it. This hurts! The judge will go along with them on the former unless you can “demonstrate prejudice” to you as a result of the failure to answer. I’d get on researching prejudice. Another angle is to demonstrate that you should get a default because the other side cannot hope to prevail. This is not legal advice – it’s just what I’d do and I am not an attorney.

  5. This is important we are finding that many banks have used the name of MARCIE METCALF on the assignment of the mortgage. Everhome Bank and FlagStar Bank the signatures do not match and under different Assistant Secretary and Vice President.

    If you have MARCIE METCALF on your assignment of mortgage page scan and email me a copy. This will help thousands of Americans. mike@nopowernoworries.com

  6. Jay Hayes
    also check out Max Garnder’s website. He also trains attorneys and if you go to his main page…he has a tab ‘find grads’ so you can find attorneys in your state…


  7. Failed banks?? What failed banks??? Someone bought most out. Whoever bought — already had an interest in them. Those still in receivership — likely never had your mortgage.

  8. Not an attorney and not available to answer questions suitable only for a licensed practioner. Call your state Bar and ask for a list of attorneys in your area. MSoliman


    Your fighting a wrongful foreclosure against a foe that wants you to keep on fighting foreclosures.Keep on talking and keep on singing the Foreclosure Blues. You are the culprit fighting a foreclosure that by the oppositions own mouth IS NOT A FORECLOSURE.

    I am speechless and ….(not here anyway LOL) do not know what to say – keep fighting that foreclosure I guess and let us know how your doing. These Beneficial clams are alleged awards issued by a receiver appointed by the FDIC and have been adjudicated prior to date of sale. In as much as an order to repossess title to trustor property exists under the FDIC appointment as conservator of a failed banks assets, the court may be precluded from hearing the matter.

    The judicial elements are reserved for a action and claim in court of law, not a foreclosure whereupon the issue’s and condition precedent from parties granting trust and security to one another are clearly breached. Debt Collector and not lenders introduce a completely wrongful and highly oppressive method of enforcing the courts powers and federal government powers of avoidance, and agency Repudiatory powers. A State or Federal agency “government” right of forfeiture subjects fee title holders to eminent domain or even seizure by pro tanto deserve formal hearing and settlement rights.

    A judicial process for which the powers of state have escaped the state authority or ability to manage a lawful recovery may loom for future claims against the subject title if not settled; if title is disturbed it is likely defect and upon declaring it defect the transfer of deed stifles further conveyance’s

    Herein is the alternative view for litigants approriate to a invalid transfer of title under void ab intio. But that is after the transfer to innocent parties.


    (I want my house, I want a Kit Kat Bar and I want my MTV!) Goodluck firends

  10. To an attorney who had me review the hearing attended:


    You had Deutsche bank on the ropes and let them off . You missed your shot in court at hearing.

    GAAP exceeds 2200 pages and you go to vcourt without reading the Vulkas report? You never read the Vulkas repsort or codified FAS 140 and or criteria setforth by FASB on contribution companies and capitalization? Do you know or argue RESPA Sec 8 where the accounting board forbid it.

    A Trust cannot represent to have in its possession the note and allege it was assigned by blank endorsement . To reclaim an assigned asset to capitalization for a trust sold to investors is a fraud.
    The asset would have to be repurchased and that would trigger a colossal tax liability and wave of
    Investor lawsuits. The lawyer cannot assign back the asset or represent he owns it.

    That is a breach of the accounting rules as the note is divested of its value . It’s an impossible feat exposing MERS , and a bigger picture into the Lender securities misuse of MERS.
    It’s the fraud I have spoken about (as I sold into MERS ) since 2002. According to GAAP rules
    it is embezzlement and unlawful.

    The counsel at hearing violated GAAP and reversed something with no general ledger to back it up.

    He should be indicted and yet he walks away with another home thanks to the brain power
    of the lawyers fighting for consumers.

    Seriously, lawyers know this, keep on guess and getting it wrong and believe that the States warning to stay out of these foreclosure defenses, if your winging it, will come back to haunt you .

    Hire an expert who knows, or go hire a tax securities expert or keep guessing. Or don’t do anything ,but save the shots against the professional parties that do know.

    This stuff is convoluted beyond your comprehension and woe to the litigant that goes to the court guessing.If your guessing – its not worth the aftermath . . .as one would exopect to see down the road. .


  11. I’m sueing in BK court, and so far winning, actually by default, because the bank hasn’t responded to my sueing them. I’m filing for default judgement, and luckily have a judge who happens to side with home owners and default judgements.

    Here’s to hoping it goes thru without a hitch. A few bumps ok, but so far so good.

  12. Jay Hayes,
    NOD are not recorded..they are ‘filed’. They sit there for a year or however long your courthouse allows and they are destroyed.

    The paperwork filed after that is what is recorded and looks legitimate.

    Once the NOD is destroyed, the only thing left is the recorded paperwork. They start recording prior to foreclosing, and keep on until the home is sold to someone else.

    It’s a nasty process, because once they file the Appointment, they are unilaterally saying you assigned them as a Trustee, and your signature is no where on the document. That’s the second fraud document but the first permanent recorded document.

    The Deed has your signature, you were there, there was some agreement. When they steal your home, it’s all one sided, all that paperwork is attorneys and foreclosure mills, and even the title company is involved in all of this, allowing transfer of title, knowing they aren’t dealing with the right parties.

    You must read…read prior posts, and comments. You have to catch up to speed.

    Most wait until their number is called and then they go looking. They didn’t care when it was someone else. Please be responsible for the knowledge you know about this situation.

    If you’d started early, you’d know as much as we know about whether you have ‘standing’ in this situation to state a claim for relief.

    I wish you well.

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

  13. brian davies

    This is an opinion, I know nothing and if I think I know something, I know nothing. I do not give legal advice because I don’t know legal things. I do not consent to be compelled to perform the obligations of any undisclosed contract, I’ve been entered into unknowingly, unwillingly, and unintentionally.

    For once in your life, you have all the answers to the questions you’ve asked.

    You determine whether you were wrongfully foreclosed on.

    Many of us know whether we have or have not, based on our knowledge of the transaction that occurred.

    Many of us know whether our Deeds or Mortgages allowed for the situations that occurred that forced us into court and removed us from our homes.

    If you were forced from your home on a Deed or Mortgage by someone not named on your Deed or your Mortgage; how much were you damaged by their theft of your home? It interfered with job performance, it interfered with your interaction with your wife/husband, kids, family and friends; you had to abruptly move; you had to pay deposits; your kids lost their sense of security; they saw stress in their family; their grades suffered; they had to leave their friends; a man with a gun came to your home; he had permission in a unilateral contract with a signature only from a judge (who was not a party to the contract for the mortgage) to put his hands on you, your family, and your possessions.

    A man should feel safe in his own home and should not be threatened by hired hands over controversies that should not exist.

    A man can remain in the private and not be pulled into the public over controversies that are bold faced lies with fraudulent documents that prove it’s a bold faced lie.

    How much did you lose in attorney’s fees? How much time out of your life was lost, dealing with a controversy that should never have existed?

    What is it worth to you, that they altered your life?
    For once in your life, you decide what happened to you and your family and how you will be made whole.

    What does it take such that when the two of you leave that table or sign that final document you can walk away and never look back on this nightmare?

    My home was supposed to be inherited by my daughters. Now a family is living there. I planted a historical tree in the back yard and watched it grow from three feet to full grown. I had an affinity with the trees and the neighbors. I had chosen the location to experience my life.

    I don’t want to preach, but the founding fathers would turn over in their grave knowing that they said ‘all men are created equal’, and some men are waiting on another man / any man to be their leader and tell them what to do.

    For once in your life, you get to govern yourself
    accordingly and tell that business the value of the harm that was caused to you mentally, physically, financially, emotionally, job performance, public image (seen as a deadbeat to neighbors), stolen title, stolen home, etc.

    People who have bought a ‘steal of a deal of a home’ in this mess, knowing homes were stolen from other people, should be prepared to get their eviction notices telling them to vacate the premises, especially for homeowners who did not abandon their properties. Why else would someone be so eager to get your home? For the same reasons you were happily living there for 10 to 20 years!

    For once in your life, you don’t need anyone to ‘negotiate’ what you felt and the level of harm you experienced from unsecured creditors by their debt collectors.

    They monetized the value of your home when you bought it and when they ‘stole it and conveyed’ it to someone else. They made money throughout the entire process.

    I hope that helps you decide some of the answers to your questions.

    As for MERS…if you look at the Cease and Desist order, the real ‘people’ behind that business had to sign it. Go read it. Click the link and right under the title is a link to the actual document (A lot of us don’t read legal documents) I had to learn to read to them and court documents to understand what’s going on with the ‘laws of the land’. I was private until they pulled me into the public.

    I don’t belong in the public, and I don’t belong in their courts. I didn’t create the controversy.

    Read the MERS Cease and Desist Order..it’s signed by the Board of Directors of MERS and I’m not looking at it right now to to see who signed for MERSCORP, but I can tell you, real ‘names’ of real ‘people’ are signed on that order.

    None of that hiding behing the ‘name of the building’ saying they aren’t responsible for the activity of a fiction.

    If you’d read it, you’d see, there is ‘accountability’, not some attorney representing some unknown client of brick and mortar.

    It really is ‘Game Over’. The unraveling has occurred.

    You must be ready for this new world, the world without the controls that squeeze you to death and lock you into slavery, and steal your wealth.

    You must be ready to ‘truly be free’ and to govern yourself, be your own leader, and look out for others.

    This unraveled because they had no right to do what they did, but they had no ‘people’ to report the felony that was being committed.

    The ‘People’ have returned. We cannot be presumed to be ‘Persons’ any more.

    This was a tragedy…a pure tragedy. People lost their lives, people committed suicide, people who were deathly sick; died before they were supposed to, kids have been emotionally scarred by being thrown from their safety nests, they are scarred from losing friends and teachers and familiar places as if there was an instant death with no funeral.

    These corporate managers and owners who were ultimately behind all of this got big bonuses for a good job well done.

    Negotiate for yourself for what you need to make you whole. You negotiated when you purchased the house?

    Some say if you ‘need’ an attorney to speak for you, you are considered a ‘dummy’. I don’t know where they get their information or understanding. The possible logic is a ‘dummy’ has no brain and can’t speak.

    We can speak. We are the People. The People are the State. The Government is the Government of the People.

    Still trying to get my eviction case from the court. Was told the file was huge and it would take 10 days to give it to me. I told the clerk, I had no idea it would take 10 days to give me a copy, I just figured they didn’t call me but had printed it out.

    Oh well. If the judge had read the information, I would not have been evicted. I had everything right there to ‘see’, no tricks, not opinions. All statements of fact had an exhibit to go with it. Just so happened, it was part of my answer, but almost not admitted as evidence.

    I sure hope that family that bought my stolen home does not get too cozy and will just pack up their stuff and get out. It was not for sale. I never abandoned it. I was forced out by judge’s order to a man with a gun.

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

  14. Jay–look at this link right here on LL. Neil has a list of attorneys. You have to screen them yourself. See the Calif. section. I know one on the list has been deceased for over a year. When I went to meet with him…long before his demise….he had not done any trial work!! so you must screen them.

    You can also search for Tim McCandless ESQ–he has his own blog and has offices in socal and norcal.

    I think that Walter Hackett, Esq. also is in socal.

    You might also want to contact some bankruptcy attorneys.

    Remember to screen them well. I am only mentioning some names here as others have used these attorneys.


  15. What about Capital One and B of A????

  16. YAYA ,

    Old News with Onewest ,, they make MORE MONEY with a short sale due to an agreement with the FDIC ,,, watch this http://www.youtube.com/watch?v=_UNkQGyk5uA


  18. If they are taking your home in a nonjudicial state, sue the bastards. The tide is beginning to turn in favor of the homeowners. Don’t give up or sit on your hands. You must be proactive by suing them. Some people sue them inside bankruptcy court. Bankruptcy court protects the homeowner. Take a look. Burmese8@yahoo.com

  19. Hi I have a question. I had a short sale with Onewest last year.
    My CPA that I had to hire to do my taxes due to the 1099-c, asked for a breakdown from OneWest as to the amount on the 1099-c.
    Onewest sent me by mail, a print out of the fees for last year. In their printout, they sent me, it says foreclosure and they show a credit for the entire mortgage amount.
    So the house was sold for half this amount., because they would not modify my loan, and they may have made it look like foreclosure.
    Why? For reimbursement from Freddymac?
    I would like some reimbursement too.

  20. What does this agreement do for borrowers that have not been foreclosed yet…but threatened to foreclose…being stuck in short sales process for 2 years or stuck in the “black hole” of loan servicing with lie after lie and lost docs after lost docs?

  21. Correction

    A Notice of Default was recorded against my property ..yesterday…

    MER’s is listed as the beneficiary

    BNC Mortgage recorded a deed back in 2002,
    Wells Fargo is listed on the NOD, and Ocwen is listed as the servicer!

    Far as I can tell nothing else was recorded at the county recorders office except the Deed form BNC back in 2002

    Im in So California.. any advice?

    I sent them a QWR Qualified Written Request letter via certified mail which they received April 11, 2011

    They filed the Notice of Default at the county recorders office
    on April 12. 2011

    Is their any thing I can do to fight?

    When should I expect the documents I requested in the QWR?



  22. A Notice of Default was recorded against my property ..yesterday…

    MER’s is listed as the beneficiary

    BNC Mortgage recorded a deed back in 2002,
    Wells Fargo is listed on the NOD, and Ocwen is listed as the servicer!

    Far as I can tell nothing else was recorded at the county recorders office except the Notice of Default in 2002

    Im in So California.. any advice?

    I sent them a QWR Qualified Written Request letter via certified mail which they received April 11, 2011

    They filed the Notice of Default at the county recorders office
    on April 12. 2011

    Is their any thing I can do to fight?

    When should I expect the documents I requested in the QWR?



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