BLOOMBERG: Foreclosure Filings Plunge as Bank Delays Mask ‘True Face’ of U.S. Crisis

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CONTESTED FORECLOSURES HAVING HUGE EFFECT

Foreclosure filings have fallen for eight straight months on a year-over-year basis as banks rework their documentation procedures following claims they improperly repossessed homes. Weak demand from buyers is making it difficult for lenders to sell the properties that they already have on their books, known as real estate owned, or REOs, according to RealtyTrac.

EDITOR’S NOTE: Think about it. Why and how could recorded documents be “reworked”? The answer is only if we let them. And the readers of this blog and tens of thousands of other people, with the help of hundreds of lawyers who have found a living in defending foreclosures, are getting increasing attention. Strategic defaults are increasing steadily — people staying but not paying and simply waiting to see what happens and willing to fight with the bank if something does happen.

THERE IS NOTHING TO BE REWORKED. EVERY HOME THAT WAS FORECLOSED OR WAS THE SUBJECT OF A SATISFACTION OF CONVEYANCE OF MORTGAGE HAS A TITLE DEFECT. THINK I’M WRONG? ASK THE TITLE CARRIERS. THEY KNOW IT AND THEY INTEND TO DENY COVERAGE. WILL THEY GET AWAY WITH IT?

It’s not the economy that will come crashing down if the transactions are seen under the rule of law as invalid and unenforceable — what will come crashing down is debt that never should have existed in the first instance and which does not exist as a matter of law and fact.

  • It turns out, contrary to the earliest lies, that the parties who brought foreclosures were wrong. They were pretenders who had no interest and no business related to the actual loans. MERS for example advertised its services under the promise that they would never assert a claim in law or equity against the title or the money in any of the mortgage loans. Yet they were repeatedly named as the lender or beneficiary or mortgagee. And they were repeatedly named as the party bringing a foreclosure action.
  • It turns out, contrary to later lies, that the paperwork wasn’t messed up, it was fabricated and forged. Go talk to Scott Anderson, robosigner extraordinaire, if he exists at all.
  • It turns out, contrary to the initial opinion of judges, that the evidence wasn’t there and that the Judges erred in allowing foreclosures to proceed on the assumption that the evidence existed. They just could not imagine that bank would show to foreclose on a mortgage that didn’t exist. They could not wrap their heads around the idea that the banks actually were not the lenders, were not creditors, and had no interest in the loan. Why would they do that? (ANSWER: SEE Free HOUSE)
  • It turns out, contrary to the clerk’s offices (some of whom won’t accept robosigned documents anymore) that the acceptance of the credit bid at the auction was a farce without the laughter. The auction was bad, the credit bid was from a non-creditor and the issuance of title was the equivalent of a wild deed.
  • It turns out, contrary to the title insurance policies and title registries around the country, that title insurance and chains of title have been defective for over 10 years placing clouds on title, probably incurable, resulting from more than 80 million transactions affecting most people who own a home whether they paid cash or financed or some combination of the two. Title is corrupted around the country and cannot be fixed. It can be cleared by quiet title but it can’t be fixed.
  • It turns out, contrary to everyone’s assumption in the early days of the crash, that the loans were defective, fraudulent instruments not entitled to any consideration. Anything recorded is essentially a wild deed. And title insurance isn’t going to help. They can and will deny coverage. I have this confirmed from the highest levels of the title insurance carriers.
  • It turns out, contrary to the spin of Wall Street that the foreclosures are a grand illusion which under law is as meaningless as recording a comic book in the title registry.
  • It turns out, contrary to the management reports and financial statements certified by auditing firms with the same enthusiasm as the AAA ratings of the bogus mortgage bonds, that the assets of the mega banks are not mega after all.
  • And it turns out, contrary to economists who are paid to lie to us, that the recession is real enough for people who don’t have a job, but actually an illusion made real by the unwillingness of our government to govern for the people.

Foreclosure Filings Plunge as Bank Delays Mask ‘True Face’ of U.S. Crisis

By Dan Levy – Jun 15, 2011 9:00 PM MT
Foreclosures Plunge on Processing Delays

States where courts oversee foreclosures showed a 45 percent decrease in filings from a year earlier, while non-judicial states had a 25 percent decline and accounted for almost two-thirds of the national total, RealtyTrac said. Photographer by Justin Sullivan/Getty Images

Foreclosure filings in the U.S. tumbled last month to the lowest in almost four years as banks weighed down by an increasing inventory of seized homes delayed processing defaults, according to RealtyTrac Inc.

A total of 214,927 properties received default, auction or repossession notices in May, the fewest since November 2007, the Irvine, California-based data company said today in a statement. Filings dropped 33 percent from a year earlier and 2 percent from April. One in 605 households got a notice.

Foreclosure filings have fallen for eight straight months on a year-over-year basis as banks rework their documentation procedures following claims they improperly repossessed homes. Weak demand from buyers is making it difficult for lenders to sell the properties that they already have on their books, known as real estate owned, or REOs, according to RealtyTrac.

“Foreclosure processing delays continue to mask the true face of the foreclosure situation,” James J. Saccacio, RealtyTrac’s chief executive officer, said in the statement. “Even at a significantly lower level than a year ago, the new supply of REOs exceeds the amount being sold each month.”

Unemployment and falling home values are limiting property sales and have pushed about 28 percent of mortgage holders underwater on their loans, meaning they owe more than the home is worth, according to Zillow Inc. The U.S. jobless rate rose to 9.1 percent in May from 9 percent the previous month, the Labor Department reported June 3.

Eight-Year Low

Home prices slid 3.6 percent in the first quarter to the lowest level since 2003 in the S&P/Case-Shiller index of values in 20 U.S. cities. Confidence among builders in June was at the weakest in nine months, as executives expressed pessimism about the prospect of higher sales, the National Association of Home Builders/Wells Fargo sentiment index showed yesterday.

The inventory of distressed homes nationwide stands at 1.8 million, which would take about three years to sell at the current pace, Daren Blomquist, RealtyTrac’s communications manager, said in a telephone interview.

Default notices were filed on 58,797 U.S. properties last month, the lowest in more than four years and a 39 percent decline from a year earlier, according to RealtyTrac.

Auctions were scheduled for 89,251 properties, down 33 percent from May 2010. Lenders seized 66,879 homes, a 29 percent decrease from a year earlier.

States where courts oversee foreclosures showed a 45 percent decrease in filings from a year earlier, while non- judicial states had a 25 percent decline and accounted for almost two-thirds of the national total, RealtyTrac said.

Nevada, Arizona

Nevada had the highest rate of foreclosure filings per household for the 53rd straight month, with one in 103 getting a notice. Arizona had the second-highest rate at one in 210 and California was third at one in 259. Michigan, Utah, Georgia, Idaho, Florida, Illinois and Colorado also ranked in top 10.

Five states accounted for more than half of the U.S. filing total, led by California’s 51,906. Florida was second at 19,192 and Michigan third at 14,614. Arizona, Nevada, Illinois, Georgia, Texas, Ohio and Wisconsin rounded out the top 10.

RealtyTrac sells default data from more than 2,200 counties representing 90 percent of the U.S. population.

To contact the reporter on this story: Dan Levy in San Francisco at dlevy13@bloomberg.net

To contact the editor responsible for this story: Kara Wetzel at kwetzel@bloomberg.net

17 Responses

  1. CHASE UNDERFIRE!! THIS IS BRAND NEW FEDERAL LAWSUIT. HAS A GREAT CHART WITHIN COMPLAINT.

    http://www.scribd.com/doc/58316026/BIG-BIG-LAWSUIT-AGAINST-JP-MORGAN-SECURITIES-JPMAC-ET-AL-JUNE-2011

  2. […] BLOOMBERG: Foreclosure Filings Plunge as Bank Delays Mask ‘True Face’ of U.S. Crisis MOST POPULAR ARTICLES DISCOUNT FOR EARLY BIRD REGISTRATION RUNS OUT ON JUNE 22 CLICK HERE TO REGISTER FOR 2 DAY GARFIELD CONTINUUM CLE SEMINAR GET COMBO TITLE AND SECURITIZATION ANALYSIS – CLICK HERE CONTESTED FORECLOSURES HAVING HUGE EFFECT Foreclosure filings have fallen for eight straight months on a year-over-year basis as banks rework their documentation […] […]

  3. Abby in CA it thank you for your info. It is amazing that somehow Bank of America is involved?

  4. Florida—at this point it would seem that the judges just don’t care…or care to know…lovely, eh?

  5. I’ve seen recently that trust pools had no mortgages. Then I read something about mortgages that were paidoff but continued to be used in investment trusts. And the lastest has uncovered that many mortgages may be complete works of fiction since no money ever changed hands?

    I’ve wondered this question myself about the ‘satisfaction of mortgage’ that is robo-signed. If that document is forged, shouldn’t the burden fall on the originator to prove-up evidence they actually did purchase the debt? And shouldn’t a burden also fall on the selling bank to prove they actually satisfied the debt since they are the party whose name was used on the face of the forged satisfaction?

    I read a court allowed “Linda Green” to re-issue a correction for a robo-signed satisfaction despite the obvious fruad. I can understand how this could be allowed, but wouldn’t it be powerful grounds to challenge the validity of the sale and satisfaction to begin with?

    It seems reasonable to assume that the need to falsly create a satisfaction of mortgage was to coverup one of two things:
    a) no money changed hands between the old and new lenders, or b) money changed hands but was not used to satisfy the mortgage to avoid a paper trail that would reveal earlier fraud on investments by the original lender.

    I want to challenge this, but I haven’t seen an example where the lender has to reveal their funding source or prove that a debt was ever satisfied. Their are wire-transfer numbers on my documents, couldn’t they be tracked back? Or will judges continue to overlook these questions?

  6. Have the attorneys, the judges and this government had such a short memory that they have all forgotten the 650 page “Wall Street and the Financial Crisis; Anatomy of a Financial Collapse” A Senate report verified the banks to be the criminals that have caused the loss of income to millions of us. I t is not a matter of a free house. Most of us are willing to pay our bills. It is a matter of being betrayed and violated and loss of our incomes due to greed. We are not accepting the loss of our homes over greed and the crimes of these criminal banksters and their paid off politician and partial judges to the banksters, ignoring the law, to a paid off bought judicial system.. Shouldn’t our cases include compensation for the crimes against us that have caused income loss? Are the judges not accountable for a speedy trial with due process?

  7. http://www.huffingtonpost.com/2011/06/17/foreclosures-netroots-obama_n_879613.html?ir=Business

    from this linked article:

    “There were one million foreclosures in 2010. That pace has slowed somewhat in 2011, as banks are challenged in court, often on the validity of the paperwork deployed to evict borrowers.”

    “When an audience member asked the panel whether greed or incompetence was behind the myriad ongoing abuses in the financial system, Rep. Brad Miller (D-N.C.) answered, “Yes.””

    But, alas, the article goes on to talk about “principle reduction” and “loan mods”…no one comes right out and says the “loans” are “fakes”…just too damn overwhelming for Obama, I guess…

  8. The A Man
    Wonder who turned Karen Tappert in? You know Karen had quite a following of desperate homeowners.

    I know she was once arrested in Oregon in a hi speed police chase and they stopped her by throwing down those tire puncture strips. That is posted on the internet.

    If you search the internet you can find her radio blog interviews where she
    purports to be able to solve your foreclosure problems ($2500 or more to her)…but in the same radio blog she mentions something about ‘oh don’t
    do that…it is mail fraud….etc.’.

    Then she moved to Nevada when things got too hot in Oregon…I don’t mean weather wise. There she became a notary &, allegedly she purported to start a title company and she was signing documents as multiple people and getting people to sign their property over to her. All allegedly of course.

    Can you guess A Man? At least the Nevada AG listened.

  9. FBI INFORMS FAMILY THEY BOUGHT STOLEN HOUSE AFTER PAYING MORTGAGE FOR A YEAR.

    http://stopforeclosurefraud.com/2011/06/17/fbi-informs-family-they-bought-stolen-house-after-paying-mortgage-for-a-year/

  10. True Face of the ‘American’ Crisis is American’s are not doing anything!

  11. They will be protected by statute of limitations of fraud I suppose for how can we bring suit against them if we can’t bring suit against the ‘unnamed party at the closing table? The unnamed party to paid for the “mortgage note’ taking possession and reselling servicing rights again during refinance? With copies of the checks no one is doing anything.

  12. Those in the know write title polices for Title Corporations who are SPV’s of Financial Holding Corporations under Federal Reserve System (agents, deales, brokers, distributors wholesale and retail) indeed process all of the policies and many claims, as patriots start posting!

    As patriots IN GOD WE TRUST share ‘annomyously!

    Reveal the ‘truth’ for knowledge is power to save the economy and everybody wins able to protect the nation.

  13. tnharry if you purchase a car or motorcycle that has been stolen of course unknowingly Forged Pink Slip etc…

    You are out of luck. The rightful owner can claim it and will get it back. without paying you a dime.

    Yes Carie the Foreigners are being sold the “Brooklyn Bridge”.

    References to “selling the Brooklyn Bridge” abound in American culture, sometimes as examples of rural gullibility but more often in connection with an idea that strains credulity. For example, “If you believe that, I’ve got a bridge to sell you.”[citation needed] George C. Parker and William McCloundy are two early 20th-century con-men who had (allegedly) successfully perpetrated this scam on unwitting tourists.[49] The 1949 Bugs Bunny cartoon Bowery Bugs is a joking reference to Bugs “selling” a story of the Brooklyn Bridge to a naive tourist.

    NEVER AGAIN

  14. Wonder how to go on offense?

    Why re Consumers not brining to court the real ‘Lender’ listed on the ‘mortgage’ which is recorded at the County Recorder/Clerk?who holds copy of ‘funding’ “procurement of cash’ for ‘Mortgage Loan Note’ in which ‘Seller’ Lehman Brothers Holdings, SPV ‘SASCO’ as despositer sells back servicing rights Wells Fargo Bank NA ordered by WFHM.
    What causes of action of wrongs including ‘misrepresentations and warranties’ in civil court?

    Under Agreements, Lehman Brothers (Securities) faciliated convering cash deposits into securities as stock. My loan clearly listed on ‘strawman Deutsche Bank’s funding payable to settlement agent’ identifies the loan# used to collect debt related to ‘mortgage note’.

    What parts are unlawful business acts? The ‘Intent’ of the ‘real’ Owner ‘Lehman Brothers Holding’ not at the closing table is indeed recognized in public domain to be owner of the Mortgage Loan Note having paid for same and having sold back servicing rights to Wells Fargo Bank.

    IF one were to bring to court ‘Deustche Bank’ for funding the transaction could the ‘civil complaint’ unravel the intent of all the parties harmed in a joinder in similar manner?

    The S3 Form and S3/A Form ‘intent’ of Agency of ‘check – transfers’ between seller and purchaser are in agreement paid ‘X’ for their participation.

    What could each consumer as individual and in each state join together? to bring in front of court Deutsche Bank the known ‘straw man’ between Mortgage Note Owner, real LENDER to Lehman Brothers? who paid the Mortgage Note prior to consumer signing retail ‘mortgage note agreement.

    Intent of all transactions to take cash into SPV of Lehman, convert cash into securities as stock, withold disclosure they paid for the ‘mortgage note’ and were not at the closing table, the transactions insured prior to consumer taking mortgage and the loan# on the document connects consumer, lender, mortgage note owner, servicer.

  15. This idea Neil keeps stating that title insurance won’t cover REO properties may be localized to AZ. I’m seeing it everyday myself in the southeast that REO properties are being insured without exceptions in the policy for the FC sale. And even if title insurance isn’t good, these buyers are almost certainly bona-fide purchasers and protected that way.

  16. So all the “foreigners” who are snatching up foreclosures….with supposed title insurance…what will happen when the illegally evicted homeowner figures out the scam???

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