WSJ: WITH ROBO-SIGNED DOCUMENTS OFF THE TABLE, FORECLOSURES GRIND TO A HALT IN NEVADA

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NEVADA LEADS THE WAY IN CLEARING TITLE

“This is not at all about preventing foreclosures. It is about helping end users,” says Tisha Black Chernine, a real-estate lawyer in Las Vegas who was part of a working group that helped draft the bill.

In order to truly heal housing markets, “we need to make sure foreclosures are done properly,” she said. “People taking title pursuant to a bad foreclosure run the risk of having no title at all.”

Nevada Foreclosure Filings Law: It’s Felony Now

Associated Press
New default notices were way down last month in Las Vegas, above, and Reno.

Foreclosure filings in Nevada plunged in October during the first month of a new state law stiffening foreclosure-processing requirements.

Slightly more than 600 default notices were filed against homeowners through Oct. 25 in the state’s two most-populous counties, Las Vegas’s Clark County and Reno’s Washoe County. That was down from 5,360 in September, or an 88% drop, according to data tracked by ForeclosureRadar.com, a real-estate website that tracks such filings. Default notices represent the first step in processing foreclosures.

Nevada’s state Assembly passed a measure that took effect on Oct. 1 designed to crack down on “robo-signing,” where bank employees signed off on huge numbers of legal filings while falsely claiming to have personally reviewed each case. Banks suspended their foreclosure filings one year ago and have gradually restarted them after those and other improper foreclosure-processing practices surfaced.

Among other steps, the Nevada law makes it a felony—and threatens to hold individuals criminally liable—for making false representations concerning real estate title. Individuals are also subject to civil penalties of $5,000 for each violation.

Foreclosures have slowed sharply over the past year in many states where banks are required to foreclose on homeowners through courts. But slowdowns haven’t yet been as pronounced in non-judicial states such as Nevada, where foreclosures are conducted by an administrative process.

To foreclose on homeowners in Nevada and most other non-judicial states, banks hire a “trustee” that notifies borrowers that they are in default and then carries out the foreclosure sale in accordance with state law if the borrower doesn’t become current on the debt.

The Nevada law makes an important technical change to those rules by forbidding trustees from handling foreclosures if the trustee is a subsidiary of foreclosing bank. That change appears to strike a blow for Bank of America Corp., which uses a wholly owned subsidiary, ReconTrust, as its trustee for foreclosures in Nevada and other western states. ReconTrust wasn’t involved in filing any default notices in Nevada during the month of October, according to the ForeclosureRadar data. A Bank of America spokesman declined to comment.

Real estate agents and housing investors say the law could have unintended consequences if it hinders the ability of the housing market to clear. In hard-hit housing markets like Las Vegas, foreclosures have been among the fastest-selling properties. They accounted for around half of all home sales there during the third quarter, according to SalesTraq, a local real-estate firm.

“It leaves this shadow,” says Sean O’Toole, president of ForeclosureRadar. “If you’re a buyer, and you don’t know when or how that market’s going to clear, it’s not going to leave you a lot of confidence in investing in that area.”

But advocates of the bill say the measure will put the real-estate market on sound footing by ensuring that title defects don’t later lead judges to invalidate foreclosures—a step that has already happened in Michigan and Massachusetts.

“This is not at all about preventing foreclosures. It is about helping end users,” says Tisha Black Chernine, a real-estate lawyer in Las Vegas who was part of a working group that helped draft the bill.

In order to truly heal housing markets, “we need to make sure foreclosures are done properly,” she said. “People taking title pursuant to a bad foreclosure run the risk of having no title at all.”

The foreclosure slowdown in Nevada comes amid signs that banks are begin to ramp up foreclosures across many other parts of the country. The rate at which banks started new foreclosures increased to the highest level this summer since banks were forced to sharply decelerate the process one year ago, according to a report released Monday by Fitch Ratings.

Banks initiated foreclosures on around 10% of all mortgages that hadn’t made any payments in more than two months, double the historical lows from one year ago. That is still below the average 14% rate for the past decade. The Fitch Ratings analysis looked at loans that were bundled and sold as mortgage-backed securities without any government guarantees.

The uptick is a sign that banks and other mortgage companies “are playing catch-up on actions that have been delayed over the past year,” said Diane Pendley, managing director at Fitch Ratings.

9 Responses

  1. It seem that the Bank’s duty is to put the homeowner further and further behind. Then one’s FICO score suffers. One can bid a discounted amount at the Sheriff’s sale but the homeowner can’t borrow. You try to pay the servicer just returns the check and the banks just pushes one further behind. NEVER Borrow against your home especially when you paid cash for it.
    Stan
    Wisconsin
    WHERE THE *ell IS THE SPELLCHECK?

  2. It seem that the Bank’s duty is to puch the homeowner further anf further behind. Then one’s FICO score suffers. One can bid a discounted amount at the Sheriff’s sale but the homeowner can’t borrow. You try to pay and the banks just puishes one further behind. NEVER Borrwo against you home especially when you paid cash for it.
    Stan
    Wisconsin

  3. Speaking of Aurora Loan Services, it uses what I see as a chop-shop law firm in Vegas (AZ, too) called McCarthy & Holthus. The first but sometimes second thing ALS does is have an employee of ALS, M & H, or Quality Loan Services execute a sub of the dot trustee to QLS in the name of MERS. An employee of ALS, often Theodore Schultz, executes a self-assignment of the dot to ALS again in the name of the ever-handy MERS. A principal and founding partner of M & H
    is the corporate secretary of QLS, the now alleged substituted trustee, but I have yet to see this corporate ‘entanglement” disclosed to any court in litigation by way of a ‘certificate of interested parties’ or even a corporate ownership statement which would be applicable, also, if M & H’s principal’s corp officer status is indicative of an ownership interest.

    ALS was a wholesale lender and underwrote and funded a zillion loans originated by its correspondents and brokers. The funds likely came from Lehman Brothers, either Lehman Bank of Lehman Bros. Holdings, Inc. The loans, included those originated by ALS’ own retail outlets, went thru ALS to Lehman Bank (nka Aurora Bk) to Lehman Bros.Holdings, Inc., now in Chapter 11 in the largest bk in history. LBHI allegedly securitized theses loans, with ALS retaining the servicing (big bucks).
    If the notes made it up to LBHI by way of endorsements and delivery to LBHI (very dubious) but not into the trusts, I would think the notes are property of LBHI’s bk estate, in which case the bk trustee would be the
    appropriate party to foreclose.
    Because ALS underwrote and even table-funded these loans, ALS would get the closed loan file from its originating source. This gave them if not the original note, a COPY of the note, which imo has been used as errant evidence of ALS’ right to enforce, (who can tell a copy of an original from a copy of a copy submitted to a court?) altho the loans were sold to trusts. The only endorsement on an original or copy at that point would be the end from the correspondent or the broker. The endorsements on notes I have seen when banksters have been compelled to fork them over look like stamps, including signatures, and there is never any evidence of when those stamps or signatures or what not were executed. Wholesale lenders who become the servicers have been using their file copies of these notes to take homes. Only when forced, do endorsements magically appear.
    In addition to their own retail outlets, B of A, WF, CW, etc. all used brokers and correspondents to generate loans, in addition to their own retail outlets. They all have copy packages of loans they underwrote and or funded. None of them SHOULD have the original notes, not if they needed endorsments and were to then be held by custodians for the trusts. It’s just too easy to pull the copy of the note from the origination file and mess with it. If they have the original notes, it likely means the endorsements in the chain were not done, put off for another day in the rush to create more paper to sell to investors in securitization.

    It also cracks me up to see this gang, particularly ALS, claim they are immune from TILA and RESPA claims as servicers when they know damn well the loan programs used were theirs and they underwrote the loans themselves. Their failure to make this disclosure is fraudulent concealment.

    This whole mess with self-dealing, hiding behind MERS, is collusive if not the definition of RICO offenses. ALS, for instance, admitted in In re Abbott that “they” want the notes endorsed in blank for enforcement only, with the bearer having no and acquiring no interest by way of the blank endorsement. It’s a litigation tool and is wrong. “Tony’ has made some jurisdictional arguments here which I’ve missed, but assuming I get the idea anyway, he is correct, because jurisidiction is a threshold issue. Only those who have suffered an actual grievance may enter a court and invoke its jurisdiction. It’s pretty messed that they don’t have to prove their grievance; we have to try to prove they didn’t suffer one.
    But it may at least be useful to know why these bankster/ servicers have copies of the notes with the original endorsement.

  4. Well, what are people waiting to demand that all other states adopt that same law? We just saw that when people don’t want to lose their bargaining power, they meet, organize petitions, go door-to-door to obtain a maximum of signatures, record them with the state and have a referendum over it. Why can’t that approach be used, state by state, to influence policies?

    Obviously, since real estates laws vary from state to state, effecting changes has to come from within, rather than cry that “Government” isn’t acting…!

  5. http://livinglies.wordpress.com/2011/11/09/wsj-with-robo-signed-documents-off-the-table-foreclosures-grind-to-a-halt-in-nevada/

    http://www.health-boundaries-bite.com/HAMP-Letters.html

    MERS
    TITLE EXCHANGE (purpose provides RELS agents nationwide to issue Title Commitment Letter)
    MERS as GRANTEE for life of loan allows ‘RELS’ agents, brokers, dealers, distributors to ‘good title’ which the ‘commercial clients’ under contractural arrangements proceed under ‘Reliance of Good Title’ in all transactions.

    WFHM c/o RELS (servicer mark) 2004 forward….
    NATIONWIDE:
    TITLE COMMITMENTS ISSUED BY ANY ‘RELS’
    Agents, Brokers, Dealers Distributors
    FIRST BEFORE ANY APPRAISAL IS DONE.
    HOW?
    TITLE AGENT C/O SETTLEMENT AGENTS REVIEWS
    GRANTEE OF LOAN IN THE COMPUTER DISPLAY FOR ‘TITLE’
    AS LONG AS ‘GRANTEE’ FOR LIFE OF LOAN ‘MERS’ OR CURRENT BENEFICIARY, THEY ISSUE GOOD TITLE
    TITLE EXCHANGE
    (purpose provides RELS agents nationwide to issue Title Commitment Letter)
    MERS as GRANTEE for life of loan allows ‘RELS’ agents, brokers, dealers, distributors to ‘good title’ which the ‘commercial clients’ under contractural arrangements proceed under ‘Reliance of Good Title’ in all transactions.

    http://en.wikipedia.org/wiki/Qualified_intermediary

    http://www.1031exchangemadesimple.com/intermediary.html

    http://apiexchange.com/index_main.php?id=8&idz=141

    WHAT IS A QUALIFIED INTERMEDIARY? (#89)
    “UNDERSTANDING THE ROLE OF A Q.I.”
    In most circumstances, the use of a “Qualified Intermediary” is required to successfully complete an IRC Section 1031 tax deferred exchange. Treasury Regulation §1031.1031(k)-1(g)(4)(iii) refers to the entity that facilitates an exchange as a “Qualified Intermediary” (sometimes referred to as an accommodator or facilitator), which it defines as follows:

    A Qualified Intermediary (QI) is a person who:

    1. Is not the taxpayer or a disqualified person;

    2. Enters into a written agreement with the taxpayer (the Exchange Agreement) under which the QI:

    Acquires the relinquished property from the taxpayer;

    Transfers the relinquished property;

    Acquires the replacement property;

    Transfers the replacement property to the taxpayer.

    3. The Exchange Agreement must expressly limit the taxpayer’s rights to receive, pledge, borrow, or otherwise obtain benefits of money or other property held by the QI. (See Treasury Regulations §1031.1031(k)-1(g)(4)(i).)

    The use of an experienced QI can significantly reduce the complexity of an exchange by assuring the proper execution of required documentation. The QI industry is not regulated nationally. Consequently, the careful selection of the QI is essential to ensure the highest levels of expertise and security of funds.

    Asset Preservation, Inc. (API) provides Qualified Intermediary services in conformity with the Internal Revenue Code and Treasury Regulations. API:

    Coordinates with each taxpayer’s attorney and/or tax advisor, forwards exchange transaction documentation as needed so that the IRC §1031 rules and regulations are thoroughly understood;

    Prepares the necessary exchange documentation – Exchange Agreement, Assignment Agreement (s), Notice of Assignment (s), Qualified Exchange Account Form, Security of Funds Instrument and instructions to each Closing Officer and oversees each closing to assist in proper §1031 procedures;

    Facilitates the sale of the relinquished property and the purchase of the replacement property;

    Holds and protects exchange proceeds on behalf of the Exchanger until funds are needed to purchase the replacement property;

    Provides guidance, information and critical timelines throughout the entire exchange.

  6. DO YOU GET IT YET?

    ABOUT RELS? WHAT HAS RELS GOT TO DO WITH FORECLOSURE GATE? EVERYTHING!
    THIS WAS DONE TO EVERYONE!
    WHEN WE CLOSED 1ST TIME AND

    AGAIN DURING FORECLOSURE.

    INDENTURE TRUSTEE ‘WELLS FARGO BANK NA’ PURCHASES FROM INDENTURE TRUSTEE ‘DBTCO’ C/O OWNERS AGREEMENT

    THE OWNER AGREEMENT ‘CASH OF $XXX,XXX’ THE FULL VALUE FOR BOND HELD IN NAME OF ‘WILMINGTON TRUST CO’ -LEGAL TITLE.

    WILINGTON TRUST COMPANY ON HOOK FOR BOND AND REPAYMENT (AGREEMENT NON-DISCLOSED)

    WELLS FARGO BANK NA C/O QUALIFIED INTERMEDAIRY

    GETS CONSUMER AS ‘STRANGER’ TO SIGN A PROMISSORY NOTE.

    CONSUMER DOES NOT KNOW THEY ‘AGREE’ TO PAY FOR WILMINGTON TRUST COMPANY THE ‘BOND’

    WFHM DIV WELLS FARGO BANK NA C/O WFHM INSTITUTIONAL DES MOINES IOWA TRACK PAYMENTS MADE BY CONSUMER ON BEHALF OF WILINGTON TRUST COMPANY

    UNKNOWN TO CONSUMER,

    WILMINGTON TRUST COMPANY IN OWNERS AGREEMENT WITH STRUCTURED ASSET SECURITIES CORP FOR SOME UNDISCLOSED AGREEMENT.

    DEUTSCHE BANK TRUST CO WITH ‘CUSTODY’ OF MORTGAGE DOCUMENTS (APPRAISAL AND LOAN DOCUMENTS) PASSES ASSIGNMENT OF MORTGAGES TO AURORA LOAN SERVICES. ‘WFHM’ RETAIL BRAND LABEL USED TO COLLECT MONTHLY PAYMENTS FROM CONSUMER FOR SALE ‘AGREEMENT#’ LOAN#0152740569, ‘BORROWER SURNAME ALL CAPS’ ATTACHED TO MASTER BAILEE LETTER, TRANSMITTAL ‘AURORA LOAN SERVICES’ BECOMES ‘BENEFICIARY’ IN ‘EXCHANGE’ GRANTEE

    AND THE TITLE EXCHANGE AND THE ‘DTC’ NOMINEE (AURORA LOAN SERVICES CONDUIT) C/O ELECTORNIC REGISTRATION FILE PROCESSES TRANSACTIONS.

    WILMINGTON TRUST COMPANY C/O WELLS FARGO BANK NA INDENTURE TRUSTEE PASSES TO ‘AURORA LOAN SERVICES’ C/O MASTER BAILEE LETTER 60+ DAYS AFTER BORROWER CLOSING, MOVING INTO SEC /FWP/ FREE WRITING PROSPECTUS – AGREEMENT FOR LOANS PAYING REVENUE PROMISED TO REMIC.

    THE BOND IS NOT DUE IN A SPEARATE DEAL – WE DON’T KNOW DETAILS. OUR PAYMENTS WERE BEING PROCESSED BY ‘CLEARING HOUSE’ AND BALANCE SHEET HELD BY UNKNOWN THIRD PARTY. WHY? 1031 EXCHANGES, ETC.

    DURING FORECLOSURE, ASSIGNMENT PURCHASES LOAN CREATING LOAN FOR FULL VALUE AGAIN CLOSING WITH QUALIFIED INTERMEDIARY AND RELS DES MOINES IA AND PREMIER ASSET SERVICES WHO HOLD IN TRUST AS DISCUSSED IN 1031 EXCHANGES… UNTIL ‘GOOD TITLE SECURED AGAIN.’

    IS THIS NOT FRAUD BY CONCEALMENT?

    IN ADDITION, THE NOTICE OF DEFAULT NEVER SENT TO INVESTORS BY SERVICER INTENTIONAL TO KEEP CONTROL OF EXCHANGE.

    1-DAY 90 NO NOTICE GIVEN TO INVESTORS AND ‘WFHM’ TAKES OWNERSHIP THROUGH SECRET CLOSING AND EXCHANGE OVER NEXT 90 DAYS ‘FORECLOUSURE IMMINIENT “FCI’ AFFIXED TO DOCUMENTS PASSED FROM ‘WFHM INSTITUTIONAL OFFICE OF PRESIDENT – 708 – INDENTURE TRUSTEE EMPLOYEES’ PASS 91ST DAY FORWARD TO LOCAL ROBO-FIRM – A DEBT COLLECTOR AS SERVICER OF CURRENT DEFAULT DEBT ONLY, AND VENDOR AS ‘CLOSING & SETTLEMENT AGENT’ WHO WILL HANDLE MULTIPLE CLOSINGS IN WHICH THE LOCAL PAS REO AGENT AND RELS SETTLEMENT AGENT WILL GET GOOD TITLE.

    DAY 91 LOAN TURNED OVER TO LOCAL DEBT COLLECTOR THE NEW SERVICER OF THE DEFAULT DEBT, AND VENDOR ‘SETTLEMENT AGENT’ FOR RELS TITLE

    WHO IS HOLDING THE NEW NOTE? THE VALUE OF THE CERTIFICATE HOLDERS OPTIONS CONVERTED INTO ‘CASH’ BECOME PROCEEDS OF SALE?

    PURCHASE OF TITLE EXCHANGE – SHELF COMPANIES TRUSTEES EXCHANGE & INVESTORS

    SHERIFF SALE – OFFER OF $100.

    ‘PAS REO BROKER’ & SETTLEMENT AGENT CLOSING IN MD –

    WELLS FARGO BANK NA & RELS ALREADY CLOSED AT SHERIFF SALE.

    ADDITIONAL SALES TAKE PLACE MOVING HSBC FROM GRANTEE TO GRANTOR ETC

    ALT-A LOANS HAD TO MATCH AN ALTERNATIVE INVESTMENT!

    INDENTURE TRUSTEE ALREADY ‘CLOSED’ DBTCO FOR SASCO & INDENTURE TRUSTEE WELLS FARGO BANK NA FOR WILMINGTON TRUST CO.

    ONLY REASON I KNOW IS ‘MERS MEMBER RECORD’ ALS-WILMINGTON TRUST!

    THEY CLOSE FIRST! THEY CLOSE FIRST IN SECRET. THEY CLOSE FIRST

    RELS NATIONWIDE NETWORK ‘LOCAL’ , RELS VALUATION, RELS TITLE,
    WFHM INSTITUTIONAL (MINNEAPOLIS MN) & PREMIER ASSET SERVICES PAS AKA PASREO ‘CLOSING AGENT’

    LOCAL SETTLEMENT AGENT RELS TITLE

    CASH FROM CASHIER CHECK PAYMENT FOR CLOSING HAPPENED 2 DAYS BEFORE I CLOSED.

    THEY CLOSE IN SECRET BEFORE YOU — WHY?

    TO SELL YOU THE DEBT! TO YOU !

    THEY WERE SERVICER THE DAY I CLOSED! BASED UPON FACT – MIN SERVICER ID WFHM DIV WFBANK NA MINNEAPOLIS MN

    THEY WERE SOLD THE DEBT TO SERVICE ALREADY

    LOAN 0152740569 WHICH WAS ON THE CASHIER CHECK FROM SECRET CLOSING 6/5/2006

    SOLD THE PROMISSORY NOTE TO ME A STRANGER TO THE ‘BOND’ BEING FORWARD SOLD TO REMIC

    ITS THAT UCC STATMENT I SENT YOU THAT THE MAN ON LL STATED

    ANYBODY CAN PAY THE NOTE – A STRANGER –

    THAT IS WHAT WE ARE TO THE TRANSACTION!

    A STRANGER

    AMY HAS THE CASE OF THE CENTURY – SHE HAS ‘RELS’ ON DEED AND NOW CAN BRING THEM INTO COURT!!!!!!!

    CONCEALMENT
    The unlawful suppression of any fact or circumstance by one of the partys to a contract from the other, which in justice ought to be made known.

    Fraud occurs when one person substantially misrepresents or conceals a material fact peculiarly within his own knowledge, in consequence of which a delusion exists; or uses a device naturally calculated to lull the suspicions of a careful man sp as to induce him to forego inquiry into a matter upon which the other party has information, although such information be not exclusively within his reach. The party is not bound, however, to disclose patent defects.

    A distinction has been made between the concealment of latent defects in real and personal property. For example, the concealment by an agent that a nuisance existed in connexion with a house the owner had to hire, did not render the lease void. The rule with regard to personalty is different.

    In insurances where fairness is so essential to the contract, a concealment which is only the effect of accident, negligence, inadvertence or mistake, if material, is equally fatal to the contract as if it were intentional and fraudulent. The insured is required to disclose all the circumstances within his own knowledge only, which increase the risk. He is not, however, bound to disclose general circumstances which apply to all policies of a particular description, notwithstanding they may greatly increase the risk. Under this rule, it has been decided that a policy is void, which was obtained by the concealment by the assured of the fact that he had heard that a vessel like his was taken. And in a case where the assured had information of a violent storm about eleven hours after his vessel had sailed, and had stated only that ‘there had been blowing weather and severe storms on the coast after the vessel had sailed,’ but without any reference to the particular storm it was decided that this was a concealment which vitiated the policy.

    Fraudulent concealment avoids the contract.

    –b–

  7. One of the things that is being omitted from this conversation is the fact that many of the banks “will not” let you catch up. First of all; you need to be “in default” before they will even consider a modification. At that point your options are very limited with a poor credit score, so you have to deal with them, the BANK. You can easily send the paperwork for a modification 6 times and they lose it. So, this could go on for 6-12 months. At this point, very few people can catch-up. If they could pay, they would have. So now, after all that, the banks hold all the cards. Foreclosures should not be allowed, under these circumstances. No consideration has been made or rules followed to aid in a situation that they, the banks, have created. This situation has been one of creation, by the banks for the banks. A fifth grader can figure out the gain of a 5% interest loan over 30 years….2 1/2 times the principle. On the flip side, foreclosures benefit no one, except the seller, who has it insured, sold the paper and got a bailout from the people they have lied to and stolen their property. I am utterly amazed at how many folks still do not see this, for what it is. Is anyone out there still alive?

  8. MERS has a ‘good purpose for Freddie responsible for COLLAERAL.

    WFHM c/o RELS (servicer mark) 2004 forward….

    NATIONWIDE:
    TITLE COMMITMENTS ISSUED BY ANY ‘RELS’
    Agents, Brokers, Dealers Distributors
    FIRST BEFORE ANY APPRAISAL IS DONE.
    HOW?
    TITLE AGENT C/O SETTLEMENT AGENTS REVIEWS
    GRANTEE OF LOAN IN THE COMPUTER DISPLAY FOR ‘TITLE’
    AS LONG AS ‘GRANTEE’ FOR LIFE OF LOAN ‘MERS’ OR CURRENT BENEFICIARY, THEY ISSUE GOOD TITLE

    TITLE EXCHANGE
    (purpose provides RELS agents nationwide to issue Title Commitment Letter)

    MERS as GRANTEE for life of loan allows ‘RELS’ agents, brokers, dealers, distributors to ‘good title’ which the ‘commercial clients’ under contractural arrangements proceed under ‘Reliance of Good Title’ in all transactions.

  9. Can someone let me know what is the foreclosure status in Kentucky?

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