MADE ALL YOUR PAYMENTS? CITI WILL STILL FORECLOSE

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HOW TITLE IS BEING CORRUPTED BY CITI AND OTHER MAJOR BANKS

EDITOR’S COMMENT: It’s a game to them and life to the rest of us. They have power and they are using it regardless of law, ethics, morality or simple common sense. This homeowner made her payments on time, but as soon as Citi entered the picture, they were headed for foreclosure. Why? Because they want the property. Citi and others are looking to become the largest property owners in the nation without spending a dime on loans.

This is not a mistake where the right hand doesn’t know what the left hand is doing. The Banks are in the foreclosure business — regardless of their right to foreclose and regardless of who takes the loss. A close examination of the securitization chain here will show that Citi never bought the loan, never put a dime in the deal and has no loss from anything resembling a loan receivable account.

Citi is getting paid in every way conceivable —including from the borrower and still taking the house on December 2. They claimed huge losses for which the Federal Reserve window and TARP was opened up to them paying them 100 cents on the dollar. They downgraded the pools and received AIG or AMBAC money,  proceeds from credit default swaps and other credit enhancements. Just how many times does this obligation need to be paid in full before we stop the foreclosures?

And here is the real bulletin. When the dust clears after litigation, this lady is going to be entitled to restoration of possession and title to her home. When she gets it, title will be cleared of all other transactions that were recorded and she will probably be awarded damages, maybe treble damages as well. And some investor buying cheap homes is going to have a total loss, with no home and a claim against Citi that will be contested because of disclaimers in the closing paperwork with the investor. When the investor turns to the title insurance carrier it will be the same story.

As investors realize the high risk they are taking, they will recede from the market or work out conditional deals where they don’t take title and get the right to rent the property. These conditional deals are springing up all over the country as savvy people, understanding the securitization and title mess, pick up easy money renting property that doesn’t belong to them based upon deals with the homeowner who gets a payment equivalent to cash for keys. Some deals allow the homeowner to get back the house if the investor wins in litigation against the bank.

Check with an attorney licensed in the jurisdiction in which your property is located before taking any action based upon information on this blog.

Whistleblower: Despite payments, a foreclosure threat

  • Article by: RANDY FURST , Star Tribune

A banker says Nancy Gosselin made the mortgage payments on her St. Louis Park house, but CitiMortgage seems determined to foreclose.

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CitiMortgage is planning to auction Nancy Gosselin’s house at a sheriff’s sale next month, based on its claim that she missed a payment in 2009. The Minnesota attorney general’s office has intervened, but says it can’t get a straight answer from the lender.

Nancy Gosselin cannot understand why CitiMortgage is about to foreclose on her St. Louis Park house. Neither can her local banker or the Minnesota attorney general.

At the heart of the dispute is a single monthly payment of $584 that CitiMorgage says she failed to make more than two years ago, according to the attorney general’s office. Gosselin says she made all her payments. A loan officer at Bremer Bank agrees. The attorney general’s office, which says it can’t get a straight answer from CitiMortgage, has urged the mortgage giant to stop the foreclosure and work out a deal.

But the fallout from the alleged missed payment has been a series of cascading late fees and penalties and refused payments that has culminated in CitiMortgage’s threat to auction Gosselin’s home at a sheriff’s sale Dec. 2

“I did nothing wrong. This is very frustrating,” said Gosselin, standing on the sidewalk last week in front of her house on Xenwood Avenue S.

Gosselin gave CitiMortgage permission to discuss her case with Whistleblower. But Mark Rodgers, director of Citi public affairs in New York, declined to do so “due to privacy considerations.”

“Generally, if an account is in the foreclosure process, we cannot accept less than the full amount needed to bring the account current, unless a work-out plan is developed,” he said. “We encourage customers in such situations to get in touch with us directly to see what options may be available to them.”

She tried. For nearly two years she repeatedly wrote CitiMortgage memos arguing that the company was mistaken in its late fees. CitiMortgage never budged.

Stephan O’Connor, a loan officer at Bremer Bank, reviewed Gosselin’s records and disputed CitiMortgage’s claims, writing that Gosselin “has provided all of the proof that her payments were made and made on time.”

Gosselin, a receptionist at Sela Roofing, spent her childhood in the house. It became hers, after her mother’s death, when she bought out her sister’s interest. She’s lived there for more than 20 years.

In 2005, she refinanced the house with an $84,100, 20-year mortgage from Bremer Bank, which then sold the mortgage to CitiMortgage. In 2009, she filed for bankruptcy, facing an assortment of debts, but continued making mortgage payments.

After the alleged missed payment in 2009, the company began piling on late fees, penalties and attorney fees that have swelled to more than $2,500. The firm has refused to accept Gosselin’s past six mortgage payments, so it says she now owes more than $6,000.

On Thursday, William Gosiger, who works in Attorney General Lori Swanson’s consumer services division, wrote a letter to CitiMortgage that “this office does not believe that Ms. Gosselin’s home should be foreclosed upon due to a problem that resulted from one allegedly missed mortgage payment.”

“We have dealt with nine different staffers at CitiMortgage and the right hand doesn’t seem to know what the left hand is doing,” said Ben Wogsland, an attorney general’s spokesman. “We have sent five or six letters to CitiMortgage. We have had only one substantive written response. This is consistent with a lot of consumers’ complaints about mortgage lenders being unresponsive.”

Whistleblower asked two local lawyers with expertise on foreclosure to review Gosselin’s records.

Nick Slade, a Minneapolis attorney, said it appears that after she filed for bankruptcy, CitiMortgage shifted her payments to a different department, which would explain why her checks were recorded by the company weeks after she sent them.

“Even though she thought she was making a full month’s payment, the late fees were paid first [by CitiMortgage] and she became further and further in arrears,” he said. “The whole thing just started snowballing. … It really shows how broken the mortgage system is.”

Jane Holzer, an attorney with the nonprofit Foreclosure Relief Law Project in St. Paul, said: “It looks like she made all her payments. She may have a dispute with CitiMortgage about whether she owes late fees. But late fees shouldn’t triple or quadruple what she owes. … It shouldn’t justify a foreclosure.”

Randy Furst • 612-673-4224

22 Responses

  1. @anonymous

    I thought a person has something like three days to rescind a loan from the bank.

    ,but a Title policy is good for the whole time you own that property(without refinancing)So if it is discovered a dozen years down the line the Title Company messed up in the search and you are not the owner of the property the Title company returns their fee AND the Bank Loan and finance charges and interest and you leave.

    Have you then lived in that property for free all those dozen years or do you owe rent to the true owner?

    or if there is a Statute of Limitations what has the title company sold you that Title Policys say is good for as long as you own the property.?

  2. @enraged and anonymous

    Andrew Carnegie said something to the effect “the greatest accomplishments come after everyone says it can’t be done.”

    No matter how they knock the OCCUPY kids down, no one will be able to put the worms back in the can. And I hope we don’t stop till each of us gets what we think is justice for us.

  3. @Anonymous,

    You’re right, I was thinking rescission of the entire loan. I would suspect that this could give rise to a negligence and or a breach of contract actions and those SOLs run much longer in most states than the regular Tila/Respa ones.

    Do you think that we would be entitled to the actual title search? After all, we paid for that damn insurance. We bought their representation. The actual research is waht we purchased…

    Whaddya think?

    Lately, I really wnt to go after everything and everyone in sight…

  4. @anonymous

    Far better that rescission is for the amount of the loan interest and finance charges, and not just the title fee but still the property owner is paying dearly, in decorating, furniture, moving ,installing computers, tv’s phone etc etc etc and more importantly being ousted from your surroundings and the emotional stress of losing the place you called home.

    Even if Statute of Limitations would normally exist when there is fraud upon the court In the U.S., where an officer of the court(lawyers,judges,referees) is found to have fraudulently presented facts to court so that the court is impaired in the impartial performance of its legal task, the act, known as “fraud upon the court”, is a crime deemed so severe and fundamentally opposed to the operation of justice that it is not subject to any statute of limitation., so there might still situations where Judges, referees, attorneys etc lied to the court and could be set aside. , if the courts followed the law.

    I myself would not setttle for rescission.
    to small a price for the Title attorneys to pay for their greed and fraud.

  5. marilyn lane,

    It is not rescission of the Title Insurance Policy fee — it is rescission of the loan itself — return of all interest and finance charges. But, likely out of time by SOL for rescission. Technicalities. Also — do not know SOL for fraud and breach of contract in MO — but, also — likely out of time.

    It is in these cases that the DOJ is obligated to step in — but just try and get to DOJ —- will send you here and there — with no resolution.

    Oh — and we are relying on 50 (scratch — 46) state settlement by DOJs with banks????????????

    And, this is NOT Citi- — in case above —- although there is Citi involvement – as they have the information ——- that did the foreclosure.

    Deregulation —- protection.

  6. @enraged

    Rescission of the Title Insurance Policy fee only amounts to pennies compared to how much the Title Insurance Companies are really costing a homeowner to lose when the Title Companies didn’t divulge the true quality of the defective titles people were buying.

    The Title companies knew how bad the foreclosure titles were, among others, but they just turned a blind eye toward it.

    A Title Companies obligation is to Search, Discover and Disclose.

    Most Title Agents search most often discover the defects but when it comes to disclosing , it depends on how much of a risk there is and how the Agent wants the title fee. Besides title companies are very good at mumble jumble written into their disclaimers.

    Who is it that records the fraudulent conveyences at the land registrys.
    Most often Title attorneys BUT Recording does not validate an invalid Deed., such as a Forged deed, faulty acknowledgement by the Notary, claims of heirs, claiments of title who have not been barred by foreclosure because of lack of Jurisdiction of the Court, etc etc.

    In my case Fidelity Title and Coronet Title coulldn’t win on the law so they bribed Judge Schlesinger of NYSC for her to perpertrate title fraud with them. That is not a loophole. It is downright criminal fraud.

  7. Can anyone here tell me how to get bankruptcy paperwork for a settlement of New century mortgage, CA in 2007 from the disposition/settlement of loans sold to Ellington of CT, approved by the bankruptcy court?

  8. Retraction about DCB

    I erroneously indicated that the Ohio license No. 0027582 did not exist. I was wrong and I apologize for it. When I googled it, the old 8/29/2010 post popped up and I saw that someone had raised the issue.

    It is true that I checked only the OBA but not the S.C.

    Once again, my apologies.

  9. @Marilyn,

    I’m sure there was a loophole somewhere that allowed it. We should be able to run them down by filing for rescission claims, right?

    I think it’s worth looking into… Inflict a maximum of damages to a maximum of players and run them out of town once and for all.

  10. @enraged

    All this fraud at the Banks, the Courts and the Land Records would
    not have been possible to have been accomplished had it not been for the shysters at Title Companies.

    William P Foley of Fidelity National Title former chair of LPS Docx
    had it so well organized between his network of attorneys , his duplicating machines and his forging pens , he never thought the country would figure the massive fraud out.

    We have.

    Time for him to lead the way to the lynching pad.

  11. Marilyn,

    Title companies are Oh! so involved that mine was founded by no other than… my lender!!! I started looking into The guy actually double-dipped from every end possible!

    For all of you, look up your title company’s directors, officers and founders and see if you find names that also belong to foreclosure mills and lenders. Possibly banks too…

  12. @foreclosureinfosearch

    your 8:56 posting is confusing

    When I see M.Soliman’s name on your post
    is he the one talking or are you talking to him?

    I want to know which one said Title companies are not involved ?

  13. To all,

    I checked Ohio license 0027582, (allegedly DCB’s)

    It doesn’t exist. DCB was called on it on August 29, 2010, on this same site.

    http://livinglies.wordpress.com/2010/08/09/attorney-referral-posting-south-florida-and-orlando-corridor/

  14. @m soliman

    Can you please write in full sentences and not market slang
    so that we all know what you are saying. Thank you

  15. Sorry abut spelling – but its been a long 48 hours ….peace
    and thanks

    M.Soliman – Title companys are not part of this deal and they offer a disclaimer on every deed pol or trustee’s deed I see. They wont even accept the governments indemification —-NO ENDORSEMENTS! Want to know why ?

  16. @Enraged, here’s another one:

    Big Banks Plead with Customers Not to Move Their Money

    Posted on November 9, 2011 by WashingtonsBlog

    Yes, The Big Banks DO Care If We Move Our Money

    650,000 customers moved $4.5 billion dollars out of the big banks and into smaller banks and credit unions in the last month.

    washingtonsblog.com/2011/11/big-banks-plead-with-customers-not-to-move-their-money.html

  17. EDITOR’S COMMENT: It’s a game to them and life to the rest of us. They have power and they are using it regardless of law, ethics, morality or simple common sense.

    MSoliman – Its not the banks . . . .your still not recognizing the elements for recivery under a banking system insured by the tax payers.

    This homeowner made her payments on time, but as soon as Citi entered the picture, they were headed for foreclosure. Why?

    MSoliman – Due to the fact the loan does not exist, the asset was charged off and the consumer is mistaken for the sponsors right to be reeimbursed by deleinqunet homeowners they have made good on in a investent go bad – this is a mistaken idenity.

    Because they want the property. Citi and others are looking to become the largest property owners in the nation without spending a dime on loans.

    MSoliman – Because their methods and means of liquidating properties is based on the orginal mark to market value of the contribution into the investment scheme.

    This is not a mistake where the right hand doesn’t know what the left hand is doing.

    M.Soliman – where title is up fr grabs – which i have said all along . ..may the best man win . Gibson Dunn write a great piece on the FDIC and Loss risk or reprudiatory paower and said you can win. You just need an airtight complaint that fires on all six…

    The Banks are in the foreclosure business — regardless of their right to foreclose and regardless of who takes the loss. A close examination of the securitization chain here will show that Citi never bought the loan, never put a dime in the deal and has no loss from anything resembling a loan receivable account.

    M.Soliman – That may be true (?) but who is the depositor and you do knonw there is a hairscut involved. Even at a 2% clip your argument fails.

    Citi is getting paid in every way conceivable —including from the borrower and still taking the house on December 2. They claimed huge losses for which the Federal Reserve window and TARP was opened up to them paying them 100 cents on the dollar.

    MSoliman – Its not Citibank but Citi-bad bank . Seriously! These Bad Banks hold calims against lost interests. A lender holds an interest not a claim.

    They downgraded the pools and received AIG or AMBAC money, proceeds from credit default swaps and other credit enhancements. Just how many times does this obligation need to be paid in full before we stop the foreclosures?

    M.Soliman – You know the answer to your questions – What , why …Ok ? They must reconcile their position that is off balance sheet and from earlier mark to market contributions .They are in effect doing so under a REPO or reverse merger of blocks of capital ….get off this one loan at a time deal.

    And here is the real bulletin. When the dust clears after litigation, this lady is going to be entitled to restoration of possession and title to her home. When she gets it, title will be cleared of all other transactions that were recorded and she will probably be awarded damages, maybe treble damages as well.

    M.Soliman – Perhaps…but after being in court over 100 times I can tell you …these are not arms length investors.

    And some investor buying cheap homes is going to have a total loss, with no home and a claim against Citi that will be contested because of disclaimers in the closing paperwork with the investor. When the investor turns to the title insurance carrier it will be the same story.

    M.Soliman – Title copanys are not part of this deal and they offer a disclaimer on every deed pol or tristees deed i see. They wont even accept the givernemtns indenminfication —-want to know why ?

    As investors realize the high risk they are taking, they will recede from the market or work out conditional deals where they don’t take title and get the right to rent the property.

    M.Soliman – The next round —the next round of investors will.

    These conditional deals are springing up all over the country as savvy people, Some deals allow the homeowner to get back the house if the investor wins in litigation against the bank.

    M.Soliman – NOW YOU GOT IT . THINK ABOUT WHY THAT IS …THANK YOU

    M.Soliman
    expert.witness@live.com

    **Please let this go! In an effort to be repsectful and professional to one another . If this can help anyone – then plese let it go ….

  18. From the article:
    …it appears that after she filed for bankruptcy, CitiMortgage shifted her payments to a different department, which would explain why her checks were recorded by the company weeks after she sent them.

    “Even though she thought she was making a full month’s payment, the late fees were paid first [by CitiMortgage] and she became further and further in arrears,” he said. “The whole thing just started snowballing. … It really shows how broken the mortgage system is.”

    So this article failed in it’s attempted deception.

    The woman apparently missed a payment because they applied late fees first and then mortgage. So one month she sent a mortgage payment and the entire payment went to late fees and thus no mortgage payment and thus the clock started ticking for foreclosure.

    Three months of that and they initiate the take down.

    No lawyer can fix that.
    No AG can interfere with that.

    Seems we will start getting clouded information as we get closer to our remedy. This woman’s situation is not like ours. Yes, she’s in foreclosure, but not all foreclosures are fraud foreclosures these days.

    The bankruptcy should have saved her home.

    Why was she still making payments in bankruptcy or after it was over?

    Is this another one of those, “””before the ink is dry on the bankruptcy””” the one who bankrupted their self re-inserted their self into a new relationship with a creditor and restarted the obligation that was already discharged in the bankruptcy?

    If so, that explains why the payments could have been moved to another department while she was in bankruptcy.

    I’ve told this story before on this site a year or so ago. It’s hearsay and I’m not repeating it as I heard it.

    Someone was in bankruptcy and at court, all the creditors were outside the courtroom, and the judge ordered the settlement of the accounts in the bankruptcy and the bankrupt One left the courtroom.
    As ‘he’ was leaving, different “”former”” creditors tried to get his attention. Mr. So and So….Mr. So and So…and he kept walking past them and then one said, “Mr So and So, what about your obligations to my client to pay this debt!” And the bankrupt One stopped and looked back because he thought the debt was discharged in the bankruptcy and here this guy says he still owes. So he said, “I’ll see what I can do.”

    Just like that!!! In front of all those witnesses, he re-obligated himself to a debt that really was discharged in the bankruptcy.

    He had a clean slate for maybe seconds or maybe minutes and was back to being a debtor.

    People do things and sign things and have no idea what they are doing or signing and then when they get into trouble, they want to look outside their self for the solution.

    We are part of the problem, but we can fix this.

    WE can no longer put the foreclosures of 2011 in with the foreclosures of 2009 and 2010 and maybe even 2008.

    These are different foreclosures.

    No one can convey what they don’t have, and in the 2008-2010 foreclosures, they didn’t have the power nor standing to foreclose.

    After two years with this lady, we don’t know if she did any modification or what agreements or arguments she’s made in two years.

    I Love her, I wish her well, but her fight is not the same.

    There is something we aren’t being told.

    Trespass Unwanted, living State, corporeal, free, allodial, jure divino, in jure proprio.

  19. Enraged the next step is to boycott businesses that do buisness with the Big banksters.

    NEVER AGAIN

  20. Fidelity National Title, Coronet Title, Old Republic Title and others are also on a mission to hide the fraudulent foreclosures they knowing insured for their clients in order to get out of liability to indemnify

    Noticed how Fidelity Title changed its proceedure with Bank of America on foreclosed property as soon as they could no longer hide the foreclosure fraud going on between the Banks and the Courts and the forged deeds that were issued from this conspiracy.

    The title companys are still working hard covering up all the fraudulent conveyances their attorneys recorded in the land registrys.

  21. Justice is coming. It’s going to be sweet to us and… swift to them! They won’t admit it but they’re hurting. Keep leaving them anf moving your money out.

    http://www.alternet.org/story/153058/10_stories_of_people_moving_their_money%2C_despite_banks%27_efforts_to_stop_them?akid=7846.318294.WIZZpY&rd=1&t=15

  22. Add Aurora Loan Services to that list because while we were making our payments, Aurora seized our homes. Many of us were never late, until we were induced to go late with a phony promise of a fixed interest rate. Aurora is on a mission – to seize as many homes as possible, as quickly as possible. I’ve started a national advocacy group so I can warn homeowners, show them how to fight or how to negotiate, inform them as to what to anticipate, arm them with information, inform our politicians, attempt to change state laws to further protect the consumer, refer homeowners to knowledgeable attorneys, talk to the media, and to try to bring some justice for those wrongfully foreclosed on. This is criminal and needs to be stopped. Where are our representatives that we, the people, elected to represent us and stand up for us. All Washington has done is talk talk talk. The Consent Orders signed by lenders/services – a joke. Have you seen what they intend to pay us for their illegal foreclosures? It’s an insult! Do they think we’re stupid? Wake up America and stand up for your rights because the majority of our representatives certainly are NOT. Look at how the judges are ruling in CA. Don’t expect to find any help in the Courts. You can contact me at jallayne@hotmail or http://www.stopaurorafraud.com.

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