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Our Only Hope: Reverse the Foreclosures

EDITOR’S COMMENT: YOU are the answer to the problem. It is only be nudging more and more Judges to apply the law that the illusion of securitization of fictitious mortgage loans can be stopped. If you haven’t noticed, neither the executive branch nor the legislative branch at Federal or State levels are willing to acknowledge the obvious: bogus mortgage bonds, fueling bogus loans and bogus foreclosures are the root of our economic problem. You’ll notice that nobody is presenting an argument that the mortgages are valid and enforceable, that the creditors are real, and that the foreclosures are the legal and proper way out of this mess. No, thier argument is that the sky will fall if we don’t prop up the lies of Wall Street. And THAT makes us look like fools and thieves around the world.

80 million transactions were based on false premises, false representations, and fictitious documents in an industry that for hundreds of years has set the standard for proper documentation and procedure. They strayed from normal and proper procedure, avoided compliance with law because there was more money in moral hazard than there was in doing business according tot he rules. It isn’t the borrowers who didn’t follow the rules it was the pretender lenders who defrauded investor lenders out of their money to drain every ounce of wealth out of the the country and into foreign bank accounts, which they are “repatriating” slowly to show steadily increasing profits that are in actuality declaring the receipt of stolen money from years ago.

The sky won’t fall if BOA, Citi, Chase and wells Fargo fall. Reversing the mortgages will take remove an impossible burden on the citizens of this country whether they have an underwater house, a foreclosed house or not. To the contrary, the stimulus effect of clearing tile and restoring wealth to the middle class is beyond anything further the government can do in its effort to prop up banks that have grown so big and crossed so many state and national borders that they are immune from regulation.

It will end the reign of terror and despair that has resulted in weakening our economy, our pension benefits and our ability to spend money in an economy that was once driven by consumer spending to the tune of 70% of GDP. It is ONLY through application of existing law, truth and fairness that this spending can resume, that businesses will start-up, that small business will again resume their place as the primary employer and reduce unemployment, raising median income sufficient to correct our current economic condition.

There is no hope or any good prospects for recovery in continuing the lies of Wall Street. Financial institutions must resume their position as the vendor of financing, not the engine of the economy or the controller of government decisions.

Builders of New Homes Seeing No Sign of Recovery


RICHMOND, Ill. — In this distant Chicago suburb, a builder has finally found a way to persuade people to buy a new house: he throws in a car.

Kim Meier’s spring promotion, which includes a $17,000 credit at a nearby General Motors dealer, has produced seven sales since the beginning of March, a veritable windfall of business for a builder who sold only 20 houses last year. “We needed to do something dramatic,” said Mr. Meier. “The market’s been soft.”

That is one way of putting it. The recession hurt a lot of industries, but it knocked the residential construction market to the mat and has kept it there, even as the broader economy has started to fitfully recover.

Sales of new single-family homes in February were down more than 80 percent from the 2005 peak, far exceeding the 28 percent drop in existing home sales. New single-family sales are now lower than at any point since the data was first collected in 1963, when the nation had 120 million fewer residents.

Builders and analysts say a long-term shift in behavior seems to be under way. Instead of wanting the biggest and the newest, even if it requires a long commute, buyers now demand something smaller, cheaper and, thanks to $4-a-gallon gas, as close to their jobs as possible. That often means buying a home out of foreclosure from a bank.

Four out of 10 sales of existing homes are foreclosures or otherwise distressed properties. Builders like Mr. Meier who specialize in putting up entire neighborhoods on a city’s outskirts — Richmond is some 50 miles northwest of downtown Chicago — cannot compete despite chopping prices.

Chicago was not an epicenter of the housing boom with the sort of overbuilding found in Arizona or Florida, but new-home sales in the metro area are down 90 percent. There are about 65 sales a week for a region of 10 million people.

Several factors have combined to make the Chicago market so weak. There were more subprime loans here, which meant more defaults, which in turn left more distressed homes for buyers to choose from.

Most of the construction here was done by private builders. Unlike the national firms, they did not have the resources to survive a prolonged downturn. “Some of the private builders just evaporated, and some said the hell with it,” said Tracy Cross, a consultant who tracks the local market. Only a few remain, including Mr. Meier’s KLM Builders.

Construction of new single-family homes usually surges after a recession because of lower rates and pent-up demand. But the Census Bureau said this week that while multi-unit construction had picked up strongly in the last year, single-family home construction fell 21 percent to an annual rate of 422,000. One consequence of the anemic pace: more than 1.4 million residential construction jobs have been lost in the last five years.

Robert Barycki is one of a handful of buyers keeping the market from drying up completely. He’s 30, a partner in a hardware store, and currently living with his parents. He was drawn by the new-car offer to the biggest of KLM’s four active developments, called Sunset Ridge Estates.

“My money was in the bank, collecting very little interest, so I thought I might as well take a little gamble,” said Mr. Barycki, who is paying $182,000 for a three-bedroom. “Eventually, home-owning will come back.”

Eventually, no doubt. But in the meantime, sentiment might still be souring. Executives at Equity LifeStyle Properties, a Chicago firm that sells properties in resort communities, said this week they were seeing “a psychological change”: potential customers wanted to preserve their capital rather than risk it in real estate.

Bill McBride, who runs the popular financial blog Calculated Risk, said this might be the moment when people decisively started to turn on home ownership. “I’m starting to feel the hate,” he wrote.

In such an atmosphere, every new home built and sold represents a victory. One of the few segments of the market that has shown signs of life is urban townhomes. Lennar, a national builder, has one of these developments under way in the upscale community of Arlington Heights, about 20 miles from downtown Chicago.

Then Pulte, another national builder, started construction on its own townhouse community a few miles away, even as it was recording a 2010 third-quarter loss of a billion dollars. In the meantime, Lennar cut its prices by another 10 percent, but sales in the fourth quarter barely budged.

Lennar says its sales have picked up and it is drawing customers from people who looked at Pulte’s project and passed. Pulte says the same thing about Lennar.

“It’s brutal out there,” said Mr. Cross, the consultant. “You have to put on your boxing gloves.”

Some victories may be brief. Builders say buyers have been acting ahead of a small rise in mortgage insurance premiums from the Federal Housing Administration, which backs many purchases. That mini-rush to lock in a deal might lift March sales figures for new homes, which are due out Monday, analysts say.

Mr. Meier, who has been building in this stretch near the Wisconsin border for 25 years, hopes the car promotion will put a floor under his market. In flush times, he would sell about 100 houses a year to a diverse group of buyers, from empty nesters to commuters.

Richmond bills itself as a “Village of Yesteryear,” which has come true in another way as house prices roll back to the mid-1990s. But some KLM buyers look for more, choosing to skip the car and put the $17,000 into the house instead.

That is what Wayne and Doris Powrozek, who are paying $193,000 for a three-bedroom, did. “If it’s free, it’s for me,” said Mr. Powrozek, who recently retired from AT&T.

The Powrozeks bought because they were worried prices were going up. Mr. Meier says he thinks they must — the cost of raw materials is rising. But with the price of existing homes continuing to fall, and the prospect of more foreclosures, he could again price himself out of the market.

Like nearly all those in real estate, Mr. Meier is determinedly optimistic. “Everybody wants in at the top, no one wants in at the bottom,” he said. “People are paralyzed by their fear.”

Last year, KLM told buyers it would match the government’s $8,000 tax credit. The car promotion more than doubles that. If the market still does not turn around, what could be their next promotion?

“Buy one, get one free,” his wife, Sally, suggested. They had a good laugh over that.

17 Responses

  1. Commerce equals welfare of the nation.

    Congress controls commerce in all matters. Congress prevents enforcement of law. Did Congress in good faith create the ‘federal administrative agencies’ ? Yes, Congress created the bills, acts, limited powers and supervisory authority of some policies and procedures.

    The tension between the Legislature and the Executive Branch does not exist that is suppose to exist.

    Congress is suppose to protect the welfare of the nation. And in the event, the laws are broken, the President of the Untied States, under Article II of the US Constitution, Commander in Chief, is to do what he under oath promised to enforce laws and protect the welfare of the nation!

    Where is Eric Holder?

    Sadly, I know for a fact that Congressman Frelinghuysen – Republican, State of New Jersey, knew that the Office of the Comptroller of the Currency supervises SERVICERS and would not be able to help with the fraudulent acts I reported to NJ DOBI who was not allowed to help with the fraudulent acts because of the label affixed to the transactions ‘Wells Fargo Bank NA’.

    Wells Fargo Bank NA is a private brand label. A congressional inquiry #854370 and other tickets won’t be related for the OCC has a non-relational database. For 16 months, I used the OCC On-line Customer Service to place complaints alike a real Help Desk. The complaints were ignored, closed, cut and pasted if they thought the issues relevant. At the end of the day, the tickets were closed and nothing was accomplished the fraud hidden.

    Congressman Scott Garrett wants to be a big important man regarding finance and is making up the stupidest legislation for the US Goverment ot buy more bad debt. Congressman Scott Garrett refused to meet with me.

    I have lots more evidence than I can post because of the pending litigation. However know this we hold the power to make sure these people don’t get reelected.

    We need you Neil to get on Sixty Minutes, and which commercial tv station is not owned by the banks?

    Congress gave themselves total power to prevent disclosure.

  2. Stupid people sign stupid contracts every day. Why would a homeowner sign a mortgage knowing they won’t have title in the end?

  3. L. Fitzgerald ,

    The biggest problem is that we are weak and are allowing ourselves to be picked off one by one ,, I certainly don’t have the financial power by myself to make a difference … we are making our own preparations as best we can and then we go into court ALONE … You are correct that the answer is in overwhelming numbers where we cannot be ignored with a single coherant argument ,, if we get a few thousand QT’s at once in Florida we’re going to get noticed.

    I have a family member that to my eye looks to have a title chain problem (bought home through a builders vertically integrated operation that is known to have defective chains of title and TILA problems) they are current but just barely… I also have a friend whose income has dropped 50%+ in the last 5 years with a BofA / MERS loan that has nothing recorded locally (and is definately securitized) and when he has the money for a title audit it should be VERY interesting ,, I’m guessing that there’s a 95%+ chance he’ll want to file QT when he has the full story ..

    Now would be the time to organize ,, set up a cookbook for people to follow when doing preliminary research.. Also as far as Florida is concerned getting a ballot initiative for a State Constitutional Ammendment is VERY do-able and now is the right time ,, Nov. 2012 is right around the corner … something ensuring a right to discovery or requiring full disclosure would be fabulous..

    I can help with the last item… I would like to take that project on … I just need a lawyer to draft the ammendment in a way that it will stand and cannot be easily bypassed.

  4. Ann

    Yes. But, too little too late. Lives have been destroyed — but the upper tier income wealth holders — remain intact.

    Mistakes made from the onset of financial crisis. Mr Henry Paulson, Mr. Timothy Geithner, and Mr. Ben Bernanke — what were you thinking when you allowed the American people victims to go down and suffer more — while profiting up the coffers of the top perpetrators??? Investors included.

    Band-aid approach will not correct the serious destruction of the American economy. And, history will eventually divulge the gross mistakes.

    These guys needed to walk in the shoes of the victim homeowners. Never did they even come close to walking in homeowner victim shoes.

  5. http://www.propublica.org/article/as-regulators-and-banks-review-foreclosures-well-be-watching/single

    As Regulators and Banks Review Foreclosures, We’ll Be Watching
    by Paul Kiel
    ProPublica, April 21, 2011, 10:19 a.m.
    51 CommentsRepublishE-mail
    Your e-mail Your name Friends’ e-mail(s) max 10, separated by commas Personal message Print
    A bank-owned sign stands outside of a foreclosed home on June 15, 2009. Regulators are launching an unprecedented plan to compensate victims of wrongful foreclosures in 2009 and 2010. (Photo by David McNew/Getty Images)
    The country’s bank regulators are launching an unprecedented plan to undo some of the damage done by mortgage servicers, compensating victims of shoddy or illegal foreclosure practices. Part of the plan involves a massive outreach effort to contact the potentially millions of borrowers affected.

    Exactly how this will unfold is, for now, unclear; if regulators hold true to form, the process figures not to be transparent. Homeowner advocates applaud the idea of the banks righting their wrongs but are skeptical the process will be thorough and fair. The regulators don’t “have a good track record at identifying or fixing servicer misbehavior,” said Diane Thompson of the National Consumer Law Center.

    The Banks Covered by the Consent Orders
    Bank of America: Federal Reserve, OCC

    Wells Fargo: Federal Reserve, OCC

    JPMorgan Chase: Federal Reserve, OCC

    Citi: Federal Reserve, OCC

    GMAC (aka Ally): Federal Reserve and FDIC

    OneWest (aka IndyMac): OTS

    HSBC: Federal Reserve, OCC

    U.S. Bank: Federal Reserve, OCC

    PNC: Federal Reserve, OCC

    Aurora: OTS

    SunTrust: Federal Reserve

    MetLife: Federal Reserve, OCC

    Sovereign Bank: OTS

    EverBank: OTS

    The State of the Government’s Loan Modification Program

    See the performance of all the mortgage servicers.

    Making Home Affordable.gov
    The administration’s web site for the foreclosure prevention program. Provides an FAQ, homeowner examples, and other tools to see whether you might qualify for the program.
    Foreclosure Avoidance Counselors
    A list of HUD-approved housing counseling agencies nationwide.
    FTC Tips for Mortgage Servicing Consumers
    Tips for homeowners from the Federal Trade Commission.
    Program Guidelines for Mortgage Servicers
    These “supplemental directives” lay out how mortgage servicers are supposed to conduct the program.
    Compensation for Mortgage Servicers
    This Treasury Department document lays out how mortgage servicers are compensated for completed modifications
    Calculated Risk
    A finance and economics blog that provides news and metrics on the state of the housing market.
    Did Your Bank Wrongfully Seek to Foreclose on You?Did you lose your home to foreclosure? Please share your experiences with ProPublica reporters.

    Are You in Mortgage Servicing?Have you worked for a servicer in a loan modification call center? We want to hear from you.
    ProPublica will be watching closely. We’d like to hear from current and former homeowners who wrongfully faced foreclosure in the last couple of years [1].

  6. New settlement for Lehman Brothers “customers” — 800 million paid by Chase (court approval awaiting).

    Who has benefited from the mortgage fraud fiasco??

    1) Nearly all “security investors” have been paid — or are in substantial settlements for any price lost by principal investment.

    2) New home buyers are getting great deals on homes – with great interest rates — and little money down.

    3) Banks have received huge bail-outs by government that prevented their “SHOULD HAVE BEEN” collapse.

    4) Distressed debt buyers are making huge profits on steeply discounted loans sold to them.

    Who is NOT benefiting all?? Who is NOT being helped??

    1) THE HOMEOWNER VICTIMS — who remain victims and, in addition, have been shut-off from a voice. That is, no valid modifications with principal correction, and no refinances “available.” Records remain altered, destroyed, fabricated, and — all in violation of the law. And, these victims continue to be treated with indignity in courts — despite violation of law that if properly adjudicated – would likely result in criminal prosecution.

    And, victims are supposed to be negotiating (if one considers that lucky) with undisclosed creditor in order to get any modification at all??? No.

    Problem is that many that are stepping forward to help victims — want a piece of the action. Fine for those that can pay. But, for all those that cannot — and continue to lose their homes under fraud — we need a voice. I have witnessed a few that are taking great steps to speak out loud and clear for those who have been denied that right. Many thanks to them.

    We will not win the battle with individual focus. There is time for that later. For now, we are missing the boat.

  7. George Gingo Esq. an elite Foreclosure Defense attorney in Florida and California just publish a book about Foreclosure Defense Litigation Handbook for Californians. It’s about time !! Check it out.


    If you have ever contemplated the prospect of fighting your own court battle, you know the feeling of panic that quickly strikes, knocking all of the confidence right out of you. After the butterflies in your stomach have subsided and your heart has stopped racing, you ask yourself: How will I ever be able to handle court procedure, rules and protocol, let alone argue my case? Well stop worrying because, if you have the courage to fight to save your home, we will show you, point by point, how to do it. Here is the Litigation Handbook you’ve been praying for. Includes: · Tips on Court Procedure · “Show Me the Note” Defenses · California Unlawful Detainer Defenses · Bankruptcy Mortgage Note Challenge FORMS AND INSTRUCTIONS WITH SAMPLE MOTIONS AND OTHER COURT DOCUMENTS INCLUDED


    To View the Table of Contents, Appendices, Conclusion of the Book, and to learn more about the Authors, go to


    The Book is Now Available at Amazon



  8. All the Government Judges Attorney Generals have to do is follow the written existing Law.

    Without Laws they are reducing all of us to live like Animals.

  9. Jan Van Eck,
    Your statements makes much sense and I agree with you 100%.
    Our house was sold in Florida to flip flop investors for $79,000 when the judgment was for $140,000 from JP Morgan Chase. We offered to pay in full with an approved Reverse Mortgage (our house had plenty of equity and was not under water), but were denied.

    Recently, our house was sold by the investors,to a third party for $185,000, who gave no down payment with Mutual Michigan Bank (?). . . . . . and the best part was that the new buyers got a “Special Warranty Title” , which means that the title covers only from the date the investors purchased the property in the Court till the date the third party bought our house.
    To add to the confusion, the Certificate of Sale given by the Court shows property was sold by Bank of New York Mellon and the Certificate of Title was issued by JP Morgan Chase Bank.
    I think we have a very good reason and opportunity to file a Quiet Title, which is what we are working on.

  10. Although unstated, there remains one reason that a “new home” makes sense to purchase: the foreclosed inventory typically has title defects that are going to come back to haunt any buyer there. Worse, the hapless buyer that takes out Title Insurance is betting that the Title Company does not go bust, leaving him with a defective title and no money remedy.

    Another reason that savvy buyers are staying out of the market is that local taxes will continue to rise, as compensatory payments to towns from cash-strapped State Governments evaporate. Finally, you can expect that the republican right will remove the mortgage interest deduction from the tax code, in effect shifting taxes to ordinary folks and away from the very rich, for whom the deduction is meaningless.

    Finally, you have the situation of “condominiums,” especially where the fragile elderly have little cushion. As units are abandoned, the Condo Boards will increase assessments onto the dwindling remainder, and as maintenance costs greatly increase as elements such as roofs and balconies need replacement, the charges will collapse many condo buildings. So those units are unmarketable, except to the naive, and those buyers will default in turn soon enough. The overall market picture remains dismal.

  11. http://stopforeclosurefraud.com/2010/03/20/choosing-an-attorney-who-understands/

    Questions to Ask Attorney Before Retaining:

    • How long has the attorney been practicing foreclosure defense?

    • What are his/her strategies and tactics in that defense?

    • How many foreclosure cases has the attorney defended?

    • How many foreclosure cases has the attorney gotten dismissed?

    • How many foreclosure cases has the attorney appealed?

    • What are the names, case #s, court docket #s of those cases?

    • Is the attorney a litigator? (“litigation” is filing motions, taking depositions, subpoenas and appearing in court for hearings and trial)

    • Besides filing an answer or a motion for extension of time, what will the attorney do to defend the case?

    • Does the attorney have a court reporter at every hearing in order to preserve issues in your case for appeal?

    • Is the attorney willing to fight it all the way and not settle for a loan mod?

    • Is the attorney familiar with all the hot topics of MERS, assignment fraud, signature fraud, HIDC (ownership to foreclose), securitization issues, etc.?

    • Has the attorney ever been disciplined or suspended from the bar?

    • Does the attorney offer bankruptcy as an integrated service?

    • How do they charge? Hourly? One big retainer, pay as they bill? Small retainer, pay as they bill? Small retainer and set monthly payments? If paying initial retainer and a set monthly payment, how does that monthly payment transfere into actual billable hours? If billable hours do not use up monthly retainer, will there be a credit to future billing? (e.g. $1000 payment but that month billable was only $500, will the $500 carry over?

    • Based on how they bill, will they charge for any copying, emails, phone conversations, etc. This is standard but with those that do a monthly set payment, they often will not charge for the incidentals.

    • Will they provide you a copy of all pleadings, complaints, actions, filings, responses, etc. regarding your case?

    Then go to the Court house and look at the attorney cases and observe him at Hearings. Case files are public info.

    Recommended Reading and Resource Books

    . Represent Yourself in Court by Paul Bergman Att.

    . 23 Legal Defenses to Foreclosure by Troy Doucet

    • Foreclosures by National Consumer Law Center

    • Truth in Lending by National Consumer Law Center

    • The Cost of Credit by National Consumer Law Center

    • Consumer Law Pleadings by National Consumer Law Center

    • 23 Legal Defenses to Foreclosure by Troy Doucet

    • Structured Finance & Collateralized Debt Obligations by Janet M. Tavakoli

    • Legal Research: How to Find & Understand the Law by Stephen Elias & Susan Levinkind

    • Business Law by Robert W. Emerson, J.D.

    • Civil Procedure: A Contemporary Approach by A. Benjamin Spencer

    • Behind The Black Robes: Failed Justice by Barbara C. Johnson

    • Stop Foreclosure Now by Lloyd Sega

    • Mortgage Wars by Iris Martin

    • Creature from Jekyll Island by G. Edward Griffin

    • Modern Money Mechanics by Federal Reserve Bank of Chicago


  12. 04/18/11 at 03:55 AM
    Calif. Civ. Code § 2943(5) (b)(1) mandates that within 21 days request, the beneficiary or its agent will deliver a true, correct, and complete copy of the Note.

    By getting a copy you can at least check it for an endorsement! If the endorsement appears to be an allonge you can then bring that up as a problem (UCC states note page has to be filled up before an allonge is used).

    This is just one of several things you can use.

    Remember Calif. foreclosure laws are Calif. Civ. Code 2020 to 2955..NOT JUST 2924 — don’t let your opposition say that 2924 is “comprehensive” …ALL of the foreclosure statues together are comprehensive.

  13. Sue them often and daily. We have a chance through the court systems. I see that it is slowly changing, and the homeowner is starting to win. It will still take a long time, especially in certain states, mostly nonjudicial. Keep going, there is always appellate court. Burmese8@yahoo.com

  14. I just saw AG Eric Holder win an award on a TV show. It was the Trumpet Awards, as follows:

    The Trumpet Awards were created in 1993 to honor African-American achievement in diverse fields such as law, religion, politics, public service, sports, entertainment and aiding and abetting a corrupt banking cartel in carrying out the largest transfer of wealth in the history of mankind.

    Gee, I wonder which category he won?

  15. Should this be the moment for all of us file a Quiet Title?
    Let us all inundate the courts with Quiet Titles and see what happens. We are already working on it, in Florida.

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