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“The only conclusion I can reach is that the contempt held for consumers, taxpayers and homeowners is a disease affecting every facet of our society and is eating away at our prospects for any recovery. There is no amount of money that can buy our way out of this mess. The answer is in the property. It must be returned to the rightful owner — the homeowners and then deals should be worked out to provide investors with some recovery, the balance of which would come from the investment banks. Only then can our society, our economy return to normal business cycles undisturbed by false distractions created by the mega Banks.” Neil Garfield,




EDITOR’S COMMENT: Banks are selectively abandoning homes they “acquired” through foreclosure. The story is simple. They foreclose, they get title, the homeowner has either lost in court (probably because of fraudulent documents and representations) and now the house is abandoned, not maintained, the association dues are not being paid, the insurance and taxes are also unpaid. So now the tax collectors are foreclosing their tax liens for unpaid property taxes.

Think about it. More than 80% of the homes that were foreclosed involve homeowners who wanted modifications that were either rejected or where the bank foreclosed on them before the modification could be properly considered. The ONLY relevant business reason for rejection is that the home was worth more in foreclosure than in modification. And yet here it is obvious that the value is zero in foreclosure. Did the bank or servicer actually act in the best interests of the investor or itself, by taking all the fees it could by foreclosing and deducting it from the rest of the revenue stream and proceeds from foreclosures?

This phenomenon corroborates the basic premise that this blog was built upon: the Banks don’t own the property, they have no financial interest in it, and they will only retain certain properties on which they can make still more money, without regard to their duties as agent of the investor/lenders. They are not creditors, so their credit bid at auction was a fraud. They are not holders under the UCC, so their right to foreclose was non-existent. And the result of entities foreclosing on properties in which they have no right or interest is to create a title and title insurance nightmare. The true creditors, the investor/lenders have the only claim and they have abandoned that claim in favor of going after the investment banks that lied to them about what they were buying.

None of the those foreclosures should have happened and they should all be reversed if they fit into the fact pattern described here. The foreclosure crisis is therefore a fiction that has been made real by the way we reacted to the false claims of the banks who have maintained their power and dominance by virtue of false reporting of their assets which makes them appear larger and more solvent than they really are.

The consequence is millions of displaced homeowners. If this had happened because of a tsunami hitting the shores of America we would have all banded together and helped out the people whose homes were destroyed. But because of the dominance of the Banks and control of the narrative, they are getting away with this disaster. See the following link that is about the best report I have seen on this subject.


The only conclusion I can reach is that the contempt held for consumers, taxpayers and homeowners is a disease affecting every facet of our society and is eating away at our prospects for any recovery. There is no amount of money that can buy our way out of this mess. The answer is in the property. It must be returned to the rightful owner — the homeowners and then deals should be worked out to provide investors with some recovery, the balance of which would come from the investment banks. Only then can our society, our economy return to normal business cycles undisturbed by false distractions created by the mega Banks.

Even Banks Aren’t Safe from Foreclosure

A long list of properties may be sold in a tax sale as Monroe’s tax collector works to collect back taxes and interest

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Residential and commercial properties and slivers of un-buildable land have gone years without the property taxes being paid and Tax Collector Manny Cambra says the town can no longer wait for the lost revenue. A lengthy list of properties and owners includes HUD and Duetsche Bank.

“Both HUD and Duetsche Bank foreclosed on people and didn’t want to pay the taxes, so I’ll foreclose on them,” Cambra said.

When Cambra called the federal Department of Housing & Urban Development, he said nobody there knew who was supposed to deal with the town tax bill.

Cambra said all of the property owners on the list had received notices of their delinquent tax bills numerous times. Most have been delinquent for years 2008, 2009 and 2010. Bills that continue to go unpaid will be sold at what’s called a tax sale in March.

A tax sale allows a tax collector to sell properties in an auction to collect taxes owed. The town may not place a bid itself, but if there are no bids for a property, the town may assume ownership.

On Monday night, the Town Council voted unanimously to give First Selectman Steve Vavrek or a designee the authority to take ownership of property that is not bid on at the tax sale.

After a tax sale, the owners still have six months to pay back taxes and interest in an effort to keep their property. The state allows a municipality to charge 18 percent interest for every year that taxes go unpaid.

When the town owns a property it may sell it to collect taxes owed or it could turn possibly it over to the new Monroe Land Trust & Tree Conservancy.

Cambra said a property at 24 Cheryl is large enough for the town to use for passive or active open space.

A, R & C

Cambra used a letter to classify each property on the list. “A” stands for abandoned. In most cases these are slivers of property bought as long as 50 years ago. Some of these owners have died and the heirs had to be located.

At one time, Cambra said it was common for people living in the city to pay about $20 to buy a tiny piece of land in a country town like Monroe for a relative.

In most of these situations, Cambra said he will try to sell the un-buildable property to an adjacent property owner.

Cambra said he will handle these properties himself. But a lawyer will be hired to handle the “R”s, residential, and “C”s, commercial properties on the list.

“Two years ago, I got rid of half of the abandoned property,” Cambra said, adding he handled 16 abandoned properties and the town handled 10. “I’m clearing the books.”

In the cases of residential and commercial properties, Cambra said, “99.9 percent of the time the banks will pay off the taxes and start foreclosure proceedings.”

“I definitely don’t want to see anything go to auction,” he said. “Most of the ‘A’s will.”

Some avoided being on the list, including three businesses who paid off their taxes and interest. Among them was the owner of the former Stevenson Lumber property.

“UBS is the primary mortgager for Stevenson Lumber,” Cambra said. “They paid about a quarter-of-a-million dollars last week — One big and two small parcels, about 42 acres.”

12 Responses

  1. @Linda,

    Really mind boggling, right?

    We’ve read depositions of MERS’ officers stating that MERS doesn’t have employees, an address or even any money. If MERS has no address, no employees, no offices, I wondered: “Then, who does?” That caught my attention. I started searching and found out that MERS was, indeed, just an acronym but… there had to be someone servicing that computer system, updating it, entering data, etc. That’s when I learned that EVERY member had access to that program and was supposed to update from wherever it operated. A litle like M.L.S. for realtors: they update inta that system whenever a new house goes up for sale. They actually pay a yearly membership fee.

    Apparently, Mers members pay a fee to Merscorp to have the right to access the Mers system. Still, and even though there are thousands of members (I posted a link not too long ago on the complete Mers members list), I still don’t know what Merscopr does, who owns it, it it has any capital to go after, if it is a public corporation and if it is solvent.

    We saw that a few states file against MERS. I don’t remember which one filed EXCLUSIVELY against Mers, without including Merscorp. That bugged me. Still does.

    Was that an “appeasing” exercize in futility? Is there money to be had from filing against Mers?

  2. @enraged,

    Cool, thanks for the web site.

    I did not think of that regarding MERS paying. I guess it would have to be the banks that are members of the darn thing…that set up the system. Don’t know if Merscorp itself has money.

    Jeez. What a scheme.

  3. And by the way, I am so adamant that stopping feeding DC would actually resolve the problem that I’ve started to look into it. Guess what? I’m not the only one. Apparently, there exist quite a few ways to NOT pay taxes, as per site below. I intend to look into it more thoroughly. I’ll report on what I find.

  4. @Linda,

    Here is the thing: from what I understand, MERS itself has no money since it is only a computer program. Which is why I have been asking to no end who pays for MERS defense costs when states such as Ohio, Texas, Mass. Delaware file those lawsuits. I can’t find out where Merscorp, Inc. get its money but I suspect that all the members have to fork up something for the costs of defending MERS and Merscorp.

    Does anyone know what is written in the Mers members contracts? Has anyone seen one of those? Does anyone know if Merscorp has any capital to go after?

    Are all those lawsuits being filed in a vacuum? For “appeasement” of the disgruntled 99%?


  5. My first thought w/o even reading the entire article, is this:

    Why don’t counties go after MERS ! Billions in lost revenues.

    Counties are not going to get any monies at all if these properties sit empty and the neighborhoods no longer exist. Just absurd!

    Looks like I’m not alone in this thinking.

  6. If it weren’t so difficult to grasp and hadn’t been made so difficult to fix, it would almost seem comical.

    Banks took money from investors, screwed up intentionally, got in trouble, got bailed out (our money). Investors not paid back by banks. They’ve paid twice: with their pension plan and their taxes… given to banks, who screwed them over in the first place.

    Banks then, and despite the bail out, decided to go after the houses and kick us out. They got tax money to facilitate the foreclosures. They had a choice to get a little tax money by voluntarily suscribing to HAMP or make a lot more by foreclosing. Not a difficult choice to make when you don’t give a hoot about anything but money, right? So, homeowners paid again (tax money) AND lost their houses. Investors paid again too, since tax money was used to kick us out. Investors paid three times so far.

    Banks got the houses and decided that upkeeping wasn’t their thing. They didn’t want the house: they wanted the money from the house! Costs too much money to keep houses. They stopped paying the real estate taxes. States now have to go after their (our) money by spending it hiring attorneys in order to get a legal lien on the vacant house. The house still sits vacant. Homeowners paid twice. If they’re unlucky and lost their 401K investment, they paid three times.

    How many more ways are there to spend our money? Everyday that goes by, I’m paying my house even though I don’t actually SEND a payment to anyone. I’m paying by sending a check to my attorney who, in turn, pays taxes that… our government can give to banks. I’m paying by paying taxes that government… gives to banks.

    Do you see why, any way we look at it, we all pay over and over for the damn house? Does it make you want to simply stop paying any taxes as a matter of principle, since they are so mismanaged?

    What is the worth that could happen if we did? No more police, no more firefighters, no more military, no more enforcement agencies, no more prisons, no more power for government to use OUR money agains us. And since rich people don’t pay taxes or very little and I don’t see banks all of a sudden deciding to support those agencies after having for so long refused to pay their fare share, the whole thing crumbles. Plus, even if the 1% did, indeed all of a sudden decide to support those agencies, whatever they would fork up isn’t enough to make up for the loss of revenues from the 99% who no longer pay. That takes care, right there and then, of any global power, world order and what not. We may be back to growing our potatoes, sewing our clothes, riding our bikes and walking for a while. We may even lose many, many people to famine and harsh weather in the shuffle but it sure as heck would set the basis on which to rebuild… a livable way of life.

    If we all decided to stop paying taxes to anyone today, I think it would catch a few people’s attention extremely fast… And I more and more think that’s the way to go. Stop feeding the frenzy and it will stop.

  7. Hey Neil, I have 3 comments waiting for moderator approval, can you approve them?

  8. Hey Neil, I have two comments waiting for moderator approval, can you approve them?

  9. Millie, the short answer is, credit restructuring first requires a default on the debtor. Until this law is changed, homeowners will continue to get screwed.

    I advocate justifiable debt restructure and have written about it here…

  10. Quote from article “Think about it. More than 80% of the homes that were foreclosed involve homeowners who wanted modifications that were either rejected or where the bank foreclosed on them before the modification could be properly considered”…..

    I think this is a federal hobbs act violation, extortion under the color of right, by our own white house. Homeowners were forced to default before they could even apply for HAMP. This in essence was a form of entrapment and the money to fund HAMP was taxpayer money.

    Using taxpayer money to entrap people into defaulting on their mortgages just so they could APPLY for HAMP seems unethical and illegal to me because once the default occurs, the homeowner has automatically lost some of their credit rating value no matter what happens next.

    So, government funds (aka taxpayer money), was used under the color of right to extort from homeowners.

    Ya think Eric Holder will file charges against the white house, ha ha.
    Ya think the republicans will be outraged at how the homeowner was treated by HAMP, ha ha.

    Hillary Clinton was the most qualified presidential candidate in 2008 to handle the home foreclosure issue, and she still is today, and that is why she is being blockaded by wall street and Obama’s ego in 2012.

    You should consider voting Hillary Clinton for any poll that comes out asking who you want to see run for the democratic party in 2012.

    Such as this one.

  11. Neil, I received a letter from my loan servicer following an investigation by the US Dept of the Treasury. The servicer said that at “the time I applied for a HAMP modification, the ‘securitization’ that owned my loan was not a HAMP participant”, therefore I “did not qualify for a HAMP loan modification”. If this is accurate and not just another excuse from a loan servicer, and if it is also true that most mortgage loans are securitized, and if most Trusts purporting to own loans are not HAMP participants (only lending institutions can modify loans, and only lending institutions can be HAMP participants), then no wonder there are so few loan modifications. Nice of the loan servicer to have disclosed this to me regarding the Trust at the very beginning of my attempted loan mod before they strung me along for 90 days of “holding my payments” during the modification application approval process to create a “False Default” on my small heloc on my previously 100% unencumbered home! Needless to say, I did not qualify for a loan mod, and the servicer moved forward very swiftly to foreclose non-judicially (I’m in CA) as they saw this as an opportunity to pick some “low hanging fruit”, and a chance to rob me of my home and all of my equity! Now, which one of us was trying to get a “free house”? And still, many mis-informed people say it is us homeowners that do!

    Inability or reluctance to modify securitized mortgage loans may be one reason why not many people are getting permanent loan modifications. The Treasury says they will contact me when they finish their investigation and gather info to answer my questions on public policy for TARP, MHA and HAMP.

  12. Welcome to the world of MERS if all fee’s would have been paid to the auditors office like joe blow citizen has to do most of this would not be neccesary to go through.But because the banks owned MERS they got around all those fees so local gov. got nothing to build up revenue with.I’m not saying we still wouldn’t be in bad shape in some areas but we would be in better shape than we are right now.This is such a travesty of justice.

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