Yves Smith: BANKS HAVE INSTITUTIONALIZED STEALING HOMES

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THEY WANT YOUR HOUSE!!!

“The banks don’t care whether you made your payments or not. They want your house. They don’t care if someone else made your payments. They want your house. They don’t care if you qualify for modification. They want your house. They don’t want the money from a short-sale.  They want your house. They don’t want the money from a workout in an out of court settlement. They want your house. They don’t want the money from mediation. They want your house. They don’t care if you paid cash for your house. They want your house. They don’t care if you never missed a payment in your life. They want your house. This is the same thing as writing a check for the purchase of a TV and the bank claiming the TV is theirs. But the Courts don’t care. They want to give away your house.” — NEIL GARFIELD

EDITOR’S NOTE: SMITH IS RIGHT WHEN HE REFERS TO AN ORGY OF STEALING. THE SCALE IS UNPRECEDENTED. In the name of a doctrine that does not actually exist Judges are using “Did you make your payments?” (see Mandleman Matters) to deliver a free house to bank and non-bank institutions as though there was no question about the end result, so why delay it?.

The principle is very simple. If you stop making payments on your car, that doesn’t allow ME to repossess it. Yet that is what the courts are doing. You might have one of many reasons for not making a payment, not the least of which is NO PAYMENT IS DUE.

HERE SMITH PRESENTS PEOPLE WHO DID MAKE THEIR PAYMENTS AND WERE STILL THE VICTIMS OF FORECLOSURE.

The banks don’t care whether you made your payments or not. They want your house. They don’t care if someone else made your payments. They want your house. They don’t care if you qualify for modification. They want your house. They don’t want the money from a short-sale.  They want your house. They don’t want the money from a workout in an out of court settlement. They want your house. They don’t want the money from mediation. They want your house. They don’t care if you paid cash for your house. They want your house. They don’t care if you never missed a payment in your life. They want your house. This is the same thing as writing a check for the purchase of a TV and the bank claiming the TV is theirs. But the Courts don’t care. They want to give away your house.

The reason is simple: if they get money they are obligated to report it to investors and pay it to them. If they get the house, they can bury what is left of the value of the house is absurd, illegal and fraudulent charges until the value of the house tot he investor/lender is zero.

How Chase Ruined Lives of People Who Paid Off Their Mortgages

Matt Taibbi, in giving a well deserved thrashing to the banking industry’s Tokyo Rose, aka New York Fed director Kathryn Wylde, said:

[S]tealing is pretty much the worst thing that a bank can do — and these banks just finished the longest and most orgiastic campaign of stealing in the history of money.

Once you read the allegations in the cases included in this post, I strongly suspect you will agree that the “ruining lives” in the headline is not an exaggeration. And as important, these two cases, with very similar fact sets, also suggest that these abuses are not mere “mistakes”. These are clearly well established practices that Chase can’t be bothered to clean up, since cleaning them up costs money and letting them continue is more profitable.

Both cases took place in Alabama. In both cases, the borrowers had made every mortgage payment on time. One was a couple with three children, the Barnetts. The second is a widow, Besty Barlow, but her husband was still alive when this ugly saga started.

In both cases, the house burned down, The borrowers both had homeowners’ insurance. In the case of the Barnetts, they promptly notified Chase, their servicer, and made one mortgage payment post the fire. Both the homeowners and the insurer, State Farm, called Chase to get a ten day payoff amount. They were told not to make the next payment, since it would be included in the payoff amount. State Farm sent as check as instructed, asked that the mortgage be paid off, and Chase cashed the check.

But Chase did not pay off the mortgage. It put the funds in a suspense account The Barnetts found out the mortgage had not been paid off on their own, and called Chase to get the matter corrected. Chase then proceeded to harass the Barnetts for payment, calling at home and at work. Chase then ‘fessed up that they had the money, and asked the wife, April, to send a fax instructing them to make the payoff. They didn’t, called to pressure her again, and claimed they never got the fax. April repeated the process as instructed a second time (to a different number).

Chase continued to call demanding payment and then sent a letter stating that Fannie had refused the payoff due to “past due” amounts. Chase wanted an additional $8000, which consisted of fees that were not warranted and were due solely to the failure to pay off the mortgage with the money they had.

Around this time, April, who was over four months pregnant, miscarried, and she believes the miscarriage was as a result of the stress created by Chase. And this is far from the end of the mess: the “foreclosure” was reported to the credit bureaus, which meant the Barnetts, who have three children, which has thrown a big wrench into their efforts to get back on a normal footing (more ugly details in the filing).

Barnett v. Chase Home Loan Servicing

The Barlow case is just as ugly. Here, Chase refused to give a payoff amount, both to the adjustor and later to the Barlow’s counsel. Chase instructed the Barlows not to make a June 2010 payment and next month started harassing the Barlows, calling as many as six times a day. They continued to makes these calls even when told to stop, which is a violation of the Fair Debt Collection Practices Act. The Barlows finally got a payoff amount, the insurer sent a check for more than the amount due, and Chase rejected the payment (both via check and via the online payment system). When they finally accepted the payment, they put it in a suspense account and continued their demands for payment and threats to foreclose. A local law firm initiated foreclosure proceedings, which included running an ad in the local papers, which was humiliating. Chase reported the foreclosure to credit bureaus, which led banks to close nearly all of Mrs. Barlow’s credit cards. Mr. Barlow died of a heart attack. Even though the widow retained counsel and the local law firm said the foreclosure had been cancelled, the debt collectors continued to call Mrs. Barlow about her mortgage even though Chase knew she was represented by counsel. And to add insult to injury, Chase has force-place insurance of $2,317 on her vacant lot and wants to be paid for it too.

Barlow v. Chase Home Finance

In Alabama, wrongful foreclosure, by statute, is treble damages. Recent cases have awarded much bigger multiples. Both cases allege grounds for damages in addition to wrongful foreclosures. Alabama also recognizes emotional distress as a cause for damages when a home is at stake.

These are not “mistakes”. This conduct can only be described as evil.

Chase was given multiple opportunities to correct the error and couldn’t be bothered. And the fact that this happened in two cases in a relative short time proximity (one house burned down in May 2010, the other in June) and in both cases, the funds were put in suspense account, suggests that this is policy (houses burning down and insurers making payoffs are hardly extraordinary events).

In other words, this is the banking version of exploding Pintos. Ford did not fix the defect in its fuel tank design because they figured it would cost less to pay out the damages on claims for death and dismemberment than fix the design flaw. Similarly, Chase evidently figures it can bulldoze people, extract more fees from them by engaging in conduct that is unquestionably against the law (see the cases for details), and maybe once in a while it gets caught and has to write a big check.

It is also revealing that the only time Chase has bowed and scraped before authority and moved quickly to clean up its act in the mortgage servicing arena is in the case of wrongful military foreclosures. The banking lobby apparently has not made serious inroads into the military-industrial complex.

Where, pray tell, is the OCC? Clearly, that’s a rhetorical question, since the OCC seems to regard regulation as unwarranted interference with the banks’ right to loot. But the persistent and willful nature of Chase’s misconduct reveals that the OCC is effectively a criminal co-conspirator of the banks. The OCC is responsible for operational supervision, and the failure to see and correct this (at best) gross incompetence is prima facie evidence of a “see no evil” policy.

Topics: Banana republic, Banking industry, Credit markets, Legal, Real estate, Risk and risk management

Email This Post Email This Post Posted by Yves Smith at 1:44 am

41 Responses

  1. This wreaks of what Bank of America does to the loans it claims to own or service. The “suspense account” is a term I have heard far too many times with BofA. They held 18 of our house payments, while under a so called Loan Modification, with them all the while reporting us delinquent to credit reporting agencies. They cancelled a Loan Modification Agreement out from underneath us after receiving an entire year’s worth of payments, without notification to us. We received so many harassing calls (6-8 per day, 7 days per week), sometimes they would leave messages left by an automated voice system, even when they were paid a full monthly amount and on time. They continued to do this even after we hired legal counsel in March of this year. To date, I have 780 telephone collection calls that I can PROVE from BofA between March 2011 and current date. Every single one of these harassing phone calls went directly to my cellular telephone, and I kept a written phone log to coincide with my cellular telephone bills. Good luck talking your way outta this one, BofA!!

    BofA has tried, since 2009, to foreclose on our home 3 times. And our house DIDNT burn down, it’s still standing.

    I won’t even go into the fraudulent Assignment of Mortgage that was filed on our home AFTER foreclosure proceedings were well under way in 2009. (just a hint…the AOM was filed 8 days after we had already received written notification from both foreclosure attorney and BofA). And on that one, MERS was involved.

    The point is they don’t care whether the house is there on the property or not. They want money. They want homes. This is a land grab, pure and simple folks. If they can’t have the house and the land, they’ll gladly take the land and your money. They will break the law time and time again because there is not a government organization that cares to stop them.

    Do I think that these servicer abuses are too coincidental, I mean come on, Chase and BofA doing the exact same things to clients, it’s too coincidental, right??? Nope, they’re exactly alike!!! Makes me wonder if these big banks aren’t taking their cues from an authority higher than themselves! It seems to me, imho, that every single big bank is given a script to follow, to hand down to the masses, to delude, deceive, and swindle the American Homeowner out of everything.

  2. […] Yves Smith: BANKS HAVE INSTITUTIONALIZED STEALING HOMES MOST POPULAR ARTICLES CLICK HERE AND RESERVE SEATING NOW AT HAWAII WORKSHOP OCTOBER 14 GET COMBO TITLE AND SECURITIZATION ANALYSIS – CLICK HERE THEY WANT YOUR HOUSE!!! “The banks don’t care whether you made your payments or not. They want your house. They don’t care if someone else made your payments. They want your house. […] […]

  3. Seamans Eckert helped defend the theft of La Mar Gunns house now they are camped out on my journal page. I can’t wait to put a lens on those creeps.

    Have a great day Neil.
    C

    http://mortgagemovies.blogspot.com/2011/08/kingcast-tells-eckert-seamans.html

    WEDNESDAY, AUGUST 31, 2011

    KingCast/Mortgage Movies tell Eckert, Seamans foreclosure mill: “Are you defending against La Mar Gunn? Why do you like my journal so much? Clean up your act or you’re next.”

    I see you watching and I’m watching you watching me. Are you watching me watching you watching me? Well whatever the case, that Canon 60D makes one hell of a video. Stay tuned and one day you may see yourselves in KingCast-Mortgage Movies Vision. I’m starting my background review of you, and Judge Jurden was less than pleased at your baseless allegations against another duly-licensed member of the bar. In other words you got spanked.

    As I show below the fold you’ve got about seventy (70) entries since 26 August, some of which show you looking for yourselves on my journal… well how about that, turns out Margaret England — on the sham foreclosure of financial planner Lamar Gunn — is or was an Eckert, Seamans Attorney…. now I see we’re getting somewhere, ahem. And I will of course advise you not to threaten to have me arrested when I come knocking like those idiots at Phelan, Hallinan & Schmieg. And keep coming back you might learn something…. The Nashua Police Department is learning that the Canon 60D makes a good, crisp 1080p movie as I force them to investigate forgery and wire fraud, that much is certain:

    http://mortgagemovies.blogspot.com/2011/08/nashua-police-chief-don-conley-forced.html

  4. Anonymous:

    Wonderful wonderful post – it sure helps when one really knows the ropes and how they are tied.

  5. usedkarguy,

    Good posts. But, when is government going to stand up for the real victims — the homeowners??? Investors?? You cannot expect to earn a legitimate return on FRAUD!!! Due Diligence??? Did any “investors” do?? You betcha they did — they knew exactly what they were doing — it was the security investors that “bought” the fraud — for extra yield percentage on RECEIVABLE pass-through.

    Sorry — security investors — you cannot earn high risk-return yield on fraud. You read the prospectus??? Didn’t you??? You read the “PSA” — didn’t you??? You banked on fraud and predatory lending — didn’t you??? To fuel your “security investments” — didn’t you??? You were largely bailed out — weren’t you??? And you are still crying that you want the usury rates??? Aren’t you???

    And, security investors, government included, you are still holding victim borrowers accountable for usury rates and fraud. Aren’t you???
    When all case law points to negation of your claims by Due Diligence — that you did — but will not admit to??? Didn’t you – do Due Diligence???

    And, security investors, are you getting foreclosure proceeds??? Impossible. No current cash pass-through —which is required for securities. Isn’t it???

    Contracts — not securities — is what we are dealing with. Isn’t it???
    Contracts that are being concealed by deregulation??? Aren’t they???

    Victims — being put on the street — no government help. We are still living in America — aren’t we???

    NOT as I see it —

  6. File this one under “THEY THOUGHT THEY WOULD GET AWAY EASY” (Story from DSNews)

    The FDIC filed a petition with the courts late Monday contesting the $8.5 billion settlement proposal put forth by Bank of America in June, which is intended to cover claims from institutional investors related to mortgage bonds issued by Countrywide years before the subprime lender was acquired by BofA.

    The FDIC submitted a Notice of Intention to Appear and Object to the New York federal court overseeing the settlement case. The federal agency described itself as a “Potentially Interested Person,” noting that it has been the receiver of several failed banks that held certificates issued by the trusts covered under the proposed settlement.
    According to court documents, the FDIC is objecting to the proposal because it has not been provided enough informa-
    tion to evaluate the settlement. With Monday’s filing, the FDIC said the agency has secured its right to seek and participate in discovery and to move to intervene in the settlement proceedings.
    Bank of America’s settlement proposal was struck with Bank of New York Mellon, serving as trustee of the 530 affected securitization trusts. But negotiations involved just 22 out of hundreds of investors, according to complaints from parties not involved in the settlement talks.
    Opposition to the $8.5 billion plan has been growing. Delaware’s attorney general has requested permission from the courts to intervene in the settlement review. New York’s attorney general is soliciting information from some of the investors about their participation in the negotiations with BofA. And a handful of investors are petitioning the court to remove their names from any agreement.
    A long list of institutional investors also signed on to the objection filed by the FDIC, including six of the Federal Home Loan Banks, a host of life insurance companies, and several city and county employee retirement systems.
    The federal case (11-cv-5988) resides with the U.S. District Court in Manhattan.
    Bank of America did not immediately return requests for comment.

  7. A Speculator Takes Blame for the Mortgage Mess

    By Leonard Goodman Aug 9, 2011 7:00 PM CT

    In July, following a monthlong trial, a federal jury in Chicago convicted my client, Calvin Townsend, of four counts of bank and mortgage fraud. Later this year, he will probably be sentenced to federal prison.
    Townsend is one of many minor players paying a heavy price for their roles in the mortgage meltdown, while the major figures avoid any responsibility.
    Townsend is a 52-year-old black man from the South Side of Chicago. He had been a train conductor and a part-time real-estate agent until 2005, when he attended a seminar on how to use other people’s good credit to invest in property with no money down.
    During the next two years, Townsend used such “nominee purchasers” to buy 21 homes. Eager-to-please mortgage lenders provided 100 percent financing for the loans, which were then repackaged by Wall Street investment banks and sold to investors.
    About a week after each home purchase, Townsend would enter into a written contract with the nominee buyer in which he agreed to make all the mortgage payments and to pay the buyer a flat fee of about $15,000. In return, Townsend got the right to re-sell the property and realize the anticipated gains from the then-rising housing market.
    Townsend was true to his word, using the large commissions he earned as the agent on these sales to make 210 mortgage payments on his properties. But in 2007, after the housing market collapsed and none of the properties would sell, his money ran out, and all of his loans went into default. He lost everything, including his own house, and moved his wife and two children into a Comfort Inn.
    In 2008, the U.S. government indicted Townsend, together with 20 others on the bottom rung of the mortgage mess, for fraud. Townsend pleaded not guilty and was tried along with a loan officer he had worked with; the girlfriend of the man who ran the how-to-get- rich-in-real-estate seminars; and three nominee purchasers who had bought properties for the seminar leader. All of the defendants were indigent and qualified for court-appointed counsel. I was picked to represent Townsend and, at the conclusion of the case, I will be paid $125 an hour by the U.S. taxpayers.

    Accusations of Fraud

    During the trial, the prosecutors argued that Townsend had defrauded the mortgage lenders — including Countrywide Bank, Fremont Investment & Loan and Washington Mutual Bank — by failing to disclose his arrangements with the nominee buyers. Executives from these lenders testified about their strict underwriting policies on mortgage loans.
    On cross-examination, I tried to point out that the lenders, banking on short-term profits, had encouraged people such as Townsend to bring them more and more loans, regardless of the borrowers’ ability to repay, and then sold their bad loans to Wall Street. These very lenders had been advertising “liar loans” with “no income verification required.” In a rare unscripted moment, one nominee buyer (who was a cooperating government witness), said the lending banks “just feel your pulse and see if your heart is beating and give you a loan.”
    I tried to convince the judge that the jury needed to know the truth about the lenders in order to determine whether Townsend had had any intent to defraud and whether he had made any material misrepresentations. But the judge accepted the federal prosecutors’ argument that the sins of the lenders were “irrelevant,” and that if such evidence were introduced at trial, there would be a risk of “jury nullification” — that is, the jury might be tempted to acquit the defendants because others not on trial were more culpable. No evidence or argument about the corrupt practices of the lenders was allowed.
    It was not technically illegal for Townsend to make his financial arrangements with the buyers after their purchases. Nor did he have any obligation to disclose them on the federal Housing and Urban Development closing statement, which requires disclosure only of payments made at the time of closing. Nevertheless, the prosecutor asked the jury in summation about Townsend’s arrangements with the buyers, “Don’t you think the lenders would have wanted to know?”
    In all likelihood, the true answer is no.
    Townsend and the other defendants were convicted on all counts, and each one accepted the jury’s verdict quietly.
    On the way out of the courthouse, the former loan officer lamented that she had stayed out of trouble all her 45 years and now faced a lengthy prison sentence merely for doing what the bankers had wanted.
    Three days after the verdict, I received a letter from a distraught juror, who said she had held out for Townsend longer than the others, indicating that she knew the lenders’ loan practices had been predatory. “It is small consolation, I know, but I will tell you that my conscience is not clear.”
    In the 1980s, Operation Greylord exposed rampant corruption and bribery in Chicago’s state criminal courts. One side effect of this corruption was that criminal defendants who didn’t pay bribes were given maximum prison time so that the corrupt judges could appear to be tough on crime. A similar thing is happening now in the cleanup of the mortgage mess. The politically powerless are getting clobbered to make it appear that the government is serious about cracking down on fraud.
    It’s easy for prosecutors to win convictions by going after the little guys. But this strategy does nothing to punish those most responsible for bad mortgages; nor will it deter future incidents of fraud.
    (Leonard Goodman is a criminal defense lawyer in Chicago. The opinions expressed are his own.)
    To contact the writer of this article: Leonard Goodman at lcgoodman@rcn.com.
    To contact the editor responsible for this article: Mary Duenwald at mduenwald@bloomberg.net.

    The little fish will fry, the big fish will fly. A travesty, to be sure!

  8. Aug. 29 (Bloomberg) — Royal Bank of Scotland Group Plc, Britain’s biggest government-owned lender, received requests for documents from U.S. and European Union regulators investigating whether the London Interbank Offered Rate was manipulated.

    The European Commission, the U.S. Commodity Futures Trading Commission and Department of Justice sought “documents and communications related to the process and procedures for setting Libor,” Edinburgh-based RBS said in a regulatory filing Aug. 26.

    Regulators in the U.S., EU, U.K. and Japan are examining a possible breach of rules governing Libor, the rate of interest at which banks borrow funds from each other in the London market. Barclays Plc and HSBC Holdings Plc have said they received requests for information in the probes. UBS AG, Switzerland’s biggest bank, said last month it was granted conditional immunity from some agencies, including the Department of Justice.

    “RBS Group is cooperating with these investigations and is keeping relevant regulators informed,” the bank said. “It is not possible to estimate with any certainty what effect these investigations and any related developments may have on RBS.”

    Several class-action, or group, lawsuits have been filed in the U.S., alleging banks manipulated the rate and prices of U.S. dollar Libor-based derivatives, UBS said in July.

    Libor rates, a benchmark for more than $350 trillion of financial products worldwide, are based on data from banks reflecting how much it would cost them to borrow from each other for various periods of time in currencies including dollars, euros and yen. The rates are compiled daily by Thomson Reuters Corp. for the British Bankers’ Association.

    Finally they’re waking up to smell the coffee.

  9. MOST IMPORTANT: BULLETIN

    IF OBAMA REALLY DOES HAVE A PLAN THAT WILL CREATE JOBS IMMEDIATELY, THEN THE BANKS NEED TO BE READY TO MEET THE NEEDS OF THOSE UNEMPLOYED : BY providing realistic and fair default relief prevention until they get on their feet and secondly the banks need to be ready to put some of those newly employed in homes they can afford to buy – open the credit lines and do it now.

    IJUST BECAUSE HE MAY COME UP WITH A JOBS PROGRAM, DOES NOT MEAN THE CEO’S DO NOT HAVE TO BE REPLACED.

    WHAT A TERRIBLE SHAME THE PRESIDENT WILL NOT ANNOUNCE HIS PROGRAM BEFORE OF ALL THINGS “LABOR DAY”. DOESN’T HE REALIZE HOW MUCH IT WOULD DO FOR THOSE THAT HAVE BEEN SUFFERING AND THAT LABOR DAY WOULD BE A GOOD TIME TO CELEBRATE – OBVIOUSLY THIS PRESIDENT DOES NOT.

  10. If we get it right at the top, from those who greatly empathize with the people and their well being, then that empathy will reach down to the people. Replace the CEO’s and do it now.

    If anyone is good at writing Petitions – then they need to provide one that the people can sign and make known to the stockholders of the banks and the FEDs. The Feds part will be to “butt out” and now. Their negligence alone has been a critical and substantial contribution to the demise of the American people, their jobs and this economy, both nationally and globally.

  11. In my prior post, I was furious that everyone is still talking with no action by the people and I should have taken more time to be more explcit AND TO DO A BETTER JOB of writing it. I am one of those up all night people that has other work to perform, but I cannot get past the fact that the American people are not helping themselves. I told them where they could probably buy the new “nose leaders”. You know the one where the banks are selling so they can lead the people around by their noses. That is what they are doing folks. Day in and Day out they continue to take people’s homes and there is no one stopping it.

    Please step up.

    I meant to say The stockholders of the big banks NEED TO REPLACE THEIR CURRENT CEO’S. THIS IS CRITICAL AND THEY HAVE THE POWER TO DO SO. AND PERHAPS THOSE CEO’S NEED TO BE PUT OUT WITHOUT THEIR INCENTIVES, BONUSES, ETC AND LET THEM FIGHT IT IN COURT BY BRINGING IN DOCUMENTATION THAT SHOWS THEY PERFORMED AND WERE NOT ACTING IRRESPONSIBLY, TO KEEP WHAT THEY THINK IS THEIR’S JUST LIKE THEY ARE MAKING THE HOMEOWNERS FIGHT FOR WHAT IS RIGHT FULLY THEIRS.

    The people need to go on defense. I am not sure how replacing all of the CEO’s of these companies could harm the stockholders any more than what they are being harmed now.

  12. No need to hack in and tell anyone the truth because we all know the real truth and most assuredly the Feds know the real truth but have deserted the American people. To that end,,

    The stockholders of all of the banks and other financial entitites that played such a significant part in the demise of the American people need to be replaced immediately and replaced by some of the best CEO’s and top business people that they can find.

    Seven Good Strong Business people such as E-Bay’s, Starbucks, Huntsman Global, and others need to take over the reins and now. The CEO’s of the banks continue to harrass the American people through their wrongful actions and the Feds are doing nothing – so now it is time for the people to step up and remove their CEO’s of such companies as BOA, Wells FARGO, CHASE, FANNIE AND FREDDIE, ETC.

    There was a time when the banks and the feds could have done something and now all they have done is devastate this country and the job market with their “in your face” actions. EVen law enforcement will not make a move to stop what BOA and Chase have alledgedly been doing to the people.

    PETITIONS TO ALL STOCKHOLDERS IF THAT IS POSSIBLE SHOULD GO IMMEDIATELY OUT TO THE PEOPLE OF THESE BANKS BEFORE IT IS TOO LATE. BOA ALONE SITS WITH 11.2 BILLION IN REPURCHASE FROM FRANNIE AND FREDDIE –

    WE NEED NEW BLOOD TO COME IN NOW, COORDINATE WITH THE MAJOR BANKS ON A PLAN TO RESOLVE THE FORECLOSURE INVENTORY AND WORK IN TANDEM TO GET THESE PROPERTIES BACK IN THE HANDS OF THE AMERICAN PEOPLE. TO ASSURE THAT THE BANKS FIND THE MONEY (RIGHT) AND START MAKING LOANS THAT WILL GET PEOPLE BACK IN THE HOMES. WE HAVE 14 MILLION PEOPLE OUT OF WORK – HOW MANY OF THESE PEOPLE DO NOT OWN HOMES AND HOW MANY DO. IF WE WORK WITH THE RIGHT KIND OF SUBSIDY PLAN, AND THE RIGHT TYPE OF LENDING PROGRAM, WE MAY JUST BE ABLE TO CUT A DEAL TO GET SOME OF THOSE UNEMPLOYED BACK IN HOMES THEY CAN AFFORD. WE HAVE SOME FORECASTING TO DO, BUT CUT OUT THE ECONOMIST WHO HAVE ALREADY RUINED THEIR REPUTATION IN FAVOR OF THE BANKS AND THE FEDS AND THE POLITICAL SECTORS – LET REAL MANAGERS COME IN AN ASSESS THE ISSUE OF HOW YOU CAN HELP THESE 14 MILLION PEOPLE WHO ARE OUT OF WORK.

    The first order of the day will be to collect no less than $20 B from the 13 banks so that we can subsidize the 60 + days default and to stop the foreclosures in waiting. In otherwords, stop the bleeding which these banks have caused. THERE IS A PLAN FRIENDS, WHERE ARE YOU AND WILL YOU SUPPORT PLANS THAT NEED TO BE SUBMITTED BY THE PEOPLE, NEW CEO’S OF THE BANKS. SURELY THERE MUST BE 10 OUTSTANDING CEO’S OUT THERE THAT CAN TAKE OFF TIME FROM THEIR CURRENT JOBS OR WHO HAVE RETIRED THAT CAN TAKE OVER THESE BANKS. THIS IS A BIG ORDER, BUT WE HAVE TO BEGIN NOW. WE HAVE ONE PLAN BEING SUBMITTED, NOW PEOPLE, SEND ANY IDEAS THAT YOU HAVE AND LET’S GET STARTED.

    We continue to talk about what the banks are doing, the blame game and how the mechanics of what they are doing is destroying us, but that can be handled secondary to replacing the CEO’s of in the financial sector because they: will stop the bleeding and they will stop the ongoign continuous victimization of the homeowners. Got it?

    I ASSUME THE STOCKHOLDERS ARE STILL IN PLACE AND CN MAKE DECISIONS. WHATEVER, IMMEDIATE REPLACEMENT OF THE CURRENT CEO’S NEEDS TO BE DONE.

  13. i wish the hacking group called anonymous would hack into the banks data and post the real truth!

  14. Thus the foreclosing lender often purchases the property from the trustee or referee for an amount equal to the principal amount outstanding under the loan, accrued and unpaid interest and the expenses of foreclosure.

    (Ans) Most every sale is conducted under the loss risk share program administered by the FDIC .

    Thereafter, the lender will assume the burden of ownership, including obtaining hazard insurance and making such repairs at its own expense as are necessary to render the property suitable for sale.

    (Ans) The home is an orphaned asset

    The lender will commonly obtain the services of a real estate broker and pay the broker’s commission in connection with the sale of the property. Depending upon market conditions, the ultimate proceeds of the sale of the property may not equal the lender’s investment in the property”.

    (Ans) There is no lender . Charged asset ! Debt collectors represent the assignee.

    We are falling way way be behind here folks

    MSoliman
    expert.wintess@live.com

  15. M.Soliman—What the HELL is your problem???

  16. Carrie

    Do you really communicate with a positing called ANONYMOUS. Okay ….good Job . Rolling Stone writer and Autonomous. OMG

  17. “The banks don’t care whether you made your payments or not. They want your house. They don’t care if someone else made your payments. They want your house. They don’t care if you qualify for modification. They want your house. They don’t want the money from a short-sale. They want your house. They don’t want the money from a workout in an out of court settlement. They want your house.

    They don’t want your house . They got it the Moment you registered it with MERS.

    If the loan performs they make off like a bandit. If the loan goes back to the so called bank – which it does not ,”Trustees possession” it is reserved at 60 % capital set aside

    lieN: Are you sane ?

  18. cubed2k—it’s cariemac9@gmail.com

  19. I need some Illinois discovery. For a friend.
    Anybody?

    usedkarguy@yahoo.com

  20. cubed2 wish you’d type what it says.

    Be careful friend in MD told that Wells Fargo Bank NA wanted only $10K to close and settle. It’s REO Broker c/o Glover Group and called it a sales contract.

  21. cubed 2 – send to seniorauthor@yahoo.com Thanks

  22. carie,

    how do I send to you?

  23. @neil Garfield

    and all those involved here.

    I’d like to send you a copy of the latest modification letter sent to me by my servicer.

    You will be amazed at what they sent me. They sent me a contract that is quite unbelievable.

    Please provide address or how to send to you. You have my email address.

    cubed2k

  24. So—what do the courts say when someone says: “PROVE IT…Show me the LEDGER and the balance sheet that the mortgage loan lies on.”???

    What do the courts say to that???

  25. Neil

    Love your opening paragraph — right on.

    But, “banks” have likely long disposed of their “claimed” rights — or, are in process of doing so. So- who else can we add to the list as to “Want Your House???”””

  26. In mid 2010 I knew that I was going to be in big financial trouble. So I started to read whatever I could regarding my state laws and foreclosure in a non-judicial state. Well, the day came when that notice of default was tacked to our door with a red push pin. I noticed right away that the notice of default did not follow the law. Contacted an attorney and he said, “if you think that any of these trustees doing foreclosures follow the law, you are badly mistaken. They will get away with it and sorry to say they will continue to get away with it. The courts are not on your side and the foreclosing trustee will win no matter how right you are. You are behind on your payments and the judge will see it as that and nothing else .Don’t even bother suing because the bank wants your house and the judge will oblidge the bank.”

    Unfortunately, other attorneys I talked to said basically the same thing. I tried to do the right thing and called the trustee on their crap. I can still hear the trustee laughing at me. They want more than you house, the also want any self-respect you may still have for yourself. They are out to destroy you as well at take your house.

    They got the house and it was sold clouded title and all. Just to be spitefull I started to talking to my old neighbors, some of whom I still keep in touch with, about how my foreclosure was fraud from the beginning and the “new owners” don’t own the house. The “new owners” heard what I said from the neighbors and they are, well lets put it this way, scared sh$tless that we may file a lawsuit, We shall see, we shall see.

  27. Jeff, The court rules over evidence. Did the evidence disprove the falsified documents? And that is why you believe the judges stay inside 4 corners of contract and ignore evidence disputing the falsified documents. What then is ‘everyone’ doing wrong? To have big “L” affixed to foreheads?

  28. It IS Just like the Ford exploding car Policy! WE had a “Suspense” account too!!! And I remember another article or forum post re: a fraudclosure case in which a “Suspense” account had been set up by Chase. (was either on This blog a year or two ago, or it was on a WAMU foreclosure victims forum) In our case, Chase could NOT account for the over 4 months payments they said we needed to pay them for a loan mod, and then, 3 more monthly payments After the loan mod. Two years later, after requesting over and over again for an accounting, someone at Chase finally told me that the money went into a “suspense” account” for Chase “to do with as they saw fit- whether it be to use for additional “fees” for processing the loan mod or whatever else they chose to use it for”!!!!!!!!!!!!! The CHASE employee’s words!!!!!

  29. Alan Krueger, Labor Economist, Nominated To Become Obama Economic Adviser, Signaling Shift

    http://www.huffingtonpost.com/2011/08/29/alan-krueger-obama-adviser-labor-jobs_n_940264.html

    from link:

    “In another widely cited work, the 2007 book What Makes a Terrorist, Krueger argued that poverty and lack of education play a relatively small role in the emergence of terrorism in a given society. Rather, he said, it’s the absence or suppression of civil liberties that seems to reliably produce the most terrorists.”

    from wikipedia:

    “Common civil liberties include the rights of people, freedom of religion, and freedom of speech, and additionally, the right to due process, to a trial, to own property, and to privacy.”

    Wow…looks like the Wall Street/Banksters (with government collusion), are creating “homegrown” terrorists…

  30. Matt Taibbi is ALMOST there…

    We need to give him ALL the information…ANONYMOUS???

    http://www.rollingstone.com/politics/blogs/taibblog/obama-goes-all-out-for-dirty-banker-deal-20110824

  31. CHASE=HITLER

  32. Carie:

    I started printing my case stories several years ago and the people have done nothing yet. YOu have been active for the past six or nine months and I am glad you have been. But a lot of us have taken a real beating trying to help people with bystanders looking on I am sorry to say. It is going to take a very strong person to unify everyone – Just ask Anonymous. He has been aware for a long long time as have others have.

    So, there you go. I am embarrassed of how these people have been treated, but how the bystanders stood by and did nothing becasue it did not directly affect them.

    We had and still do some very good people who have tried, believe me..

  33. As long as there is no prosecution of these crooks, this krap will keep going on. Our laws are down the tubes.

  34. If there is someone, who knows of an individual or institution.That really wants to open this thing wide.Let me know.Been chasing my tail for 2 yrs.
    I have a key piece of info.that fits quite well in to this puzzle.All over USA.

  35. Hey Neil, Smith is a she….a very smart she.

  36. @seniorauthor

    Of COURSE they are doing it to other homeowners…millions…most people TOO EMBARRASSED to talk about it…they are made to believe it is THEIR FAULT.

    The embarrassment needs to turn into ANGER AND COURAGE.

    When everyone knows the TRUTH—they will find the RESOLVE.

    WE MUST BE PERSISTENT AND CONSISTENT WITH GETTING THE TRUTH, THE WHOLE TRUTH, AND NOTHING BUT THE TRUTH—OUT IN THE PUBLIC—GET IT TO GO VIRAL!!!

  37. This appears to be some what of a common practive among servicers. In 2009, one of my clients who had come to Houston to live temporarily after the Katrina hurricane lost her home in the storm and sent a check for $60,000 to pay it off, which of course the servicer did not do. They advised her that she still had a $19,000 escrow deficit but could never explain or even interpret their own payment history so the charges could not be validated.. All that we did was ask that they back up the charges and then they would be paid. It took us about a year and a half to get them to attempt to explain themselves.

    This borrower was a Katrina survivor and came to Houston while she was awaiting the insurance claim to be processed and cleanup after the storm. While here she was taking kidney dialysis three times a week and had been put on the kidney transplant list as she was very ill. She had contacted the various non profit agencies for help in assuring that her loan was paid in full so she could obtain the release. None of the agencies, Legal Aid, Houston Urban League, Controller for the State of Louisiana and the NAACP, were able to force Washington Mutual to explain what all of the extra charges were for and they did try. The NAACP referred her to us and when she did, she was desperately ill. She called about 11:30 at night tired and worn out and said she could no longer handle the harrassing calls from Washington Mutual and if we could not help her, she would not continue to fight them.

    We always answer the phone, no matter what and after listening to all that she had been through, I told her to go to bed, get a good night’s sleep and forget about Washington Mutual, that we would take it from there and I assured her she would receive no more harrassing calls and that if what she told me was true, we would get her account straightened out. Washington Mutual was in the process of foreclosing on her even though she sent the $60,000 and they put it in suspense.

    She was 65, her mother was 82 and came to Houston after the storm, but did not ask for any assistance while staying here. She used to tell me, the people in Houston have been so good to everyone and just look at how some of us have treated them. They did not want anything from Houston and lived off of their social security while she took the treatments and had looked forward to the day when they could return to rebuild their home in Louisiana.

    Well, I was finally able to get the release issued and the thousands of dollars worth of charges that were not valid removed and I called to tell her on a Wednesday night. She was not well that night, but I knew she was happy to hear it was all coming to an end.

    The next Saturday I received a call from the family that the police had found our emails about her plight in their investigation and Lois had been murdered and her mother also. Although it appeared that it was her son that did it who also lived in Houston and had his home here, had she not been here, she would have been safe. She and her mother went home in coffins, not exactly the way she planned it.

    WE talked quite often and would laugh about the lies that Washington Mutual kept telling us as they never did one thing they said they were going to do. But one thing she told me as she knew I was going after the OCC the whole time I was fighting it out with Washington Mutual. ” Don’t let the OCC get away with it.” “Their non performance and promoting this kind of treatment against homeowners is such a terrible thing especially since they were supposed to be over seeing these lenders”. “And she said it again, whatever you do, don’t let the OCC get away with it”. They most surely are doing this to other homeowners. That was the last time I talked to my good friend. Neil’s posting confirms it. Thank you Neil from both me and my good friend Lois.

  38. Re-posting ANONYMOUS…it’s all about the mortgage databases…everything that happened and is happening after the initial fraud, can only be fraud…upon fraud…upon fraud…upon fraud…evil upon evil…upon evil…upon evil…the greedy bastards are a modern day Hitler—the genocide continues unabated…

    “Bank that purchased the “collection rights” — to fake “mortgage” — has long disposed of those collection rights before foreclosure action takes place.
    The question is — how did the bank get the fraudulent “collection rights” to begin with — and how did they subsequently dispose of the fraudulent collection rights??? And, that includes the entire path of the fake securitization chain — including Depositor – trustee — and servicer. SERVICER. SERVICER TO WHO???
    Open up those mortgage data bases.
    Massive fraud upon the courts. Whether courts are compliant or not —
    And, let’s open up the insurance records.”

  39. Opinion:
    Legally and lawfully you should not pay who you do not owe. So judges will get theirs for moving against the Creator. There’s a whole book in the bible written about them.

    By their position, they are as a God casting judgment on their equals. But they are blinded by the definitions of person, and are following a law that was created after Divine Law.

    Thou shalt not steal, even if you wear a black robe and sit a bench and occupy the office of a judge.

    Light and Love,
    Trespass Unwanted, life, allodial, corporeal (real body, you can touch, has hands and feet; not a corporate body you can’t touch), jure divino (by divine right), in jure proprio (in One’s own right)

    Opinions are placed out there in the universe and will not be protected nor defended. It just is.

  40. “But the Courts don’t care. They want to give away your house.”

    From going to the state, district & BK courts and watching what has transpired in the last 2 years I would have to agree 100% with this.

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