60 Minutes: Banks Walking Away From Homes They Foreclosed — Why Can’t You?

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CLEVELAND DEMOLISHES 1,000 FORECLOSED HOMES, 20,000 MORE SCHEDULED

Rokakis: “Very often a bank will take a property to the point of foreclosure, but won’t go to the sheriff’s sale, ’cause they don’t want that property. They don’t want the responsibility of the $8-$10,000 bill that comes with tearing this house down.”

Former County Treasurer Jim Rokakis says some banks have turned their backs on a blight they created.

Rokakis: “In a normal real estate market people are out looking for loans. In the perverse real estate market we created in this country, you know during the period 2000-2006 this wasn’t people looking for money, this was money looking for people. And that’s why so many of those loans were made without down payments and without verification of income. And I might also add, phony appraisals.”

WATCH THE SEGMENT ON CBS.COM

EDITOR’S COMMENT: Rokakis as County Treasurer was left to handle a problem that his city didn’t create, promote or want. The Banks were hell-bent to foreclose these homes and neighborhoods just like it across the country. NO, they couldn’t write down principal because that would create too big a loss. So they elected to take ZERO.

  • In many if not most cases the homeowners struggled to meet the payments even though those payments were based upon a principal balance that was too high to begin with — thanks to fraudulent appraisals, as Rokakis points out.
  • In many if not most cases, those same homeowners spent their last dollar of savings on a home that would ultimately be demolished because the Bank didn’t want it — the Bank just wanted to foreclose so that they could report a total loss to investors and thus avoid accounting for the money in the securitization scheme (see the movie, The Producers).
  • In many if not most cases, the homeowner was trapped by the “moral imperative” of maintaining payments on a home to a Bank that didn’t own the loan and a Bank that would itself fail to make payments, perform basic maintenance and security, and keep the utilities going. So it’s OK if the Bank walks away leaving entire neighborhoods destroyed but its “immoral” if a homeowner walks out of a bad deal that the Banks knew was a bad deal from the start and were counting on to fail. Too Anxious to Fail applies to these banks more than too big.
  • In many, if not most cases, the homeowner sought help and would have accepted a lower payment on a lower amount of principal to correct the distortion the Banks created when they gave the loans. Neighborhoods would have been saved, housing values would have leveled off, and investors would have mitigated their losses instead of having a complete loss — a loss the Banks created by false ratings and false appraisals.
  • In many if not most cases, the money from insurance, credit default swaps and other credit enhancements had already paid down or paid off the mortgage but that information was and remains withheld from the homeowner. 

So there you have it. Entire neighborhoods with tens of millions of dollars of home value reduced to rubble, with NO money going to investors, and in fact, with fees offsetting the money that was due them — fees that were generated by banks and servicers pursuing a  business model that was completely contrary to the interests of any of the real parties in interest. THE MIDDLEMEN HIJACKED THE FINANCIAL SYSTEM AND WE STILL HAVE NOT GRASPED THAT FACT.

If anything corroborates the widespread criticism that the Banks and servicers were acting against the interest of investors and homeowners, this is it. These are cold calculating decisions as to which homes would be kept and which ones abandoned. We already wrote here about the number of tax collectors that are now foreclosing tax liens on homes that were foreclosed by the banks and servicers.

Abandonment comes in many forms. Our politicians are abandoning us — those who are fighting it out day by day to stay alive and put food on the table — when they don’t step in and put an end to this madness. If the Banks choose to abandon the homes after they have reduced the value themselves, then they should be held accountable for each and every time they committed an illegal act in doing so. 

CLEVELAND TREASURER: THIS WAS A CASE OF “MONEY CHASING PEOPLE”

(CBS News)

Across America, recession-fueled foreclosures and plummeting home values have left countless properties abandoned and vulnerable to looting. As Scott Pelley reports, the problem has gotten so bad in Cleveland, Ohio, that county officials have demolished more than 1,000 homes this year – and plan to demolish 20,000 more – rather than let the blight spread and render nearby homes worthless.


The following is a partial script of “There Goes The Neighborhood” which aired on Dec. 18, 2011. Scott Pelley is the correspondent. Robert Anderson and Daniel Ruetenik, producers. See the full script or watch the segment by clicking the links above.

Chances are the home you’re in isn’t worth what it used to be. You may not have indulged in the real estate bubble with its liar’s loans and Wall Street greed, but you were stuck with the bill. Home values have dropped so far, so fast, that nearly 25 percent of mortgage holders today owe more than their house is worth.

And with unemployment so high, so long, many face foreclosure. If you thought your home value couldn’t drop any more, have a look up and down the block. You might say, “There goes the neighborhood.” The new threat from the great recession is the sudden surge in the number of abandoned houses. Vacant homes have become so ruinous to some neighborhoods that one city, Cleveland, decided it had to find a solution.

Perfectly good homes, worth 75, 100 thousand dollars or more a couple of years ago, are being ripped to splinters in Cleveland, Cuyahoga County, Ohio. Here, the great recession left one fifth of all houses vacant. The owners walked away because they couldn’t or wouldn’t keep paying on a mortgage debt that can be twice the value of the home. Cleveland waited four years for home values to recover and now they’ve decided to face facts and bury the dead.

Why destroy them? Jim Rokakis, a former county treasurer, showed us.

Jim Rokakis: We’re looking at a neighborhood that has almost as many vacant houses awaiting demolition as there are houses with people living in them. We have one here. One here. One here. One there.

Rokakis is leading the effort to tear down thousands of abandoned homes because they’re rotting their neighborhoods from the inside out. It often starts, he told us, when a vacant house becomes an open house to thieves.

Scott Pelley: It’s a nice house from the roof to about here. And then down here it’s been ripped to pieces. What’s goin’ on?

Rokakis: Well this is typical because this is as high as they could reach without using ladders. They ripped off the aluminum siding, which you’ll see on most of these houses. The aluminum and the vinyl siding comes off. It’s getting’ about a buck a pound.

Pelley: Essentially foreclosure scavengers have been through here?

Rokakis: The thieves have gone high tech. They know when evictions are occurring ’cause they’re posted online. And they will follow the sheriff. They’re usually there that afternoon or that evening.

Rokakis: So, in here, what you’re gonna see, well. I guess they took everything including the proverbial kitchen sink, right? The sink is gone. The plumbing is gone in this house. All the copper. Anything metal that had value is gone. The furnace is gone.

Pelley: The light fixture–

Rokakis: Light fixture came out–

Pelley: Is gone. How often is this happening in Cleveland?

Rokakis: This happens every day. And the foreclosure crisis creates this spiral, because as a result of this people are now more likely to leave neighborhoods like this. And as they leave, the scavengers come in and do the same thing to the house next door or across the street.

To make the house next door, worth more instead of less, vacant land created by demolition is often given to the neighbors, and sometimes turned into fields or gardens.

28 Responses

  1. “I am thinking the “lender” in that case still has the power of sale but is choosing not to exercise it”

    yes precisely—until the escheat is perfected. there are myriad ways in which an intangible –or even real interst can become “abanfdoned” —–i ran into a couple real estate situations where people died w/o known heirs and neighbors simply started paying taxes [sound familiar] and simply treated the realty as controlled but could not wipe out the state escheat—or heirs later found–thats the problem with defective title—–it will not even mature in 21 years because it mut be notorious and exclusive adverse possession—like using an easement openly and continuously in face of a no trespass sign

    “equity abhors a forfeiture” except to the state

    but yes the note may be abandoned for reasons you noted—or simply lost track of——all these supposedly lost notes and discovered accounts are a good source of revenue to states that they neglect–even while they cut pensions and services

  2. DCB,
    No, the notes were in fact assigned and the ‘intent’ of the assignor to designate its assignment, any and all current and future payments due “Pay to the Order of [Blank] Without Recourse”, as is evidenced by the assignors express endorsment for the maker to be liable to no one, whereas if the obligation was to survive and be transferred to an assignee then it would have shown this much when the notes were endorsed. If the Trusts or the States or any other party was ever intended to be the bearer of any benefit from those notes, the assignments would have bore their names as the assignees.

    But by attempting to directly and indirectly claim and collect on payments no longer owed or outstanding from the People on top of the percentages of Federal and State Taxes levied against us and extracted by force, the Sates have exposed themselves to being guilty of excessive Taxation exceeding not only Usurious limits but also the limits of Racketeering.

    The Governments of Federal and the States have breached the point spoken of in the Declaration of Independence

    “That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it”

    and its insatiable greed shall not cease until it is abolished.

  3. DCB
    Thanks DCB for explaining “abandoned asset”. .Now I understand this.

    Still stuck on something though and not just “free house” for homeowner. (No house is free – down payment, points, fees, interest principal, title escrow, property taxes, insurance, maintenance, improvement usually many times the value of the home over decades for long time owners paid out to the bank and related parties).

    Deed of Trust and Note say pay “lender” and if you don’t pay “lender” – “lender” gets the house. Who has the power of sale? That’s the entity who has the right to the benefit of the payments. So abandonment as you explain it so well by the “lender” who has the power of sale is not the same as a paid in full status. I am thinking the “lender” in that case still has the power of sale but is choosing not to exercise it. Maybe he gets paid by default insurance and other and he takes a tax write-off. He now could care less where the payments are going (they aren’t being made anymore anyway and the home is underwater and he really doesn’t want the inventory and hassle and expense of foreclosure either) so if some debt collector or servicer is pocketing any new payments made or grabbing the house he really doesn’t care. He looks the other way – but maybe he hasn’t signed off on anything and most importantly he hasn’t sold or transferred anything “For Value Received” or made an assignment of secured beneficial interest.

    When the servicer collector goes to foreclose he still has to do it in the name of the guy with the “power of sale” and pulls it off with post-dated assignment to that guy even though that guy is not going to get the house anymore and may not even be aware of the foreclosure brought in his name and his rep doesn’t even appear in court of if non judicial it’s automatic and doesn’t much matter whose name is on anything. That isn’t anything agreed to in writing by the borrower (anyone can take the house if the “lender” doesn’t want it) but maybe all concerned think that is ok. (The robo signed fraud assignment against mbs SEC, IRS, trust law, trust agreements and and state statutes by party with no secured interest – not – but setting that aside)…..

    The question comes up – what if borrower brings it current and keeps paying a party with no power of sale and the value of the home goes up and now and the net present value looks better to the guy with the power of sale? Now the borrower owes the secured “real creditor” all over again if he chooses to exercise his power of sale. Payments made unjustly to the wrong party don’t calculate against the amount due.

    As to trusts that did not receive any actual ownership. It means the sponsor and or depositor retained the asset on their books for whatever purpose, nefarious or otherwise. But the “irrevocable” supposedly “true” sales were made “without recourse” to the trust even though the trust never received ownership of the actual collateral asset. How does the Sponsor or Depositor now claim ownership of the asset and the power of sale and say he is the true creditor and was since origination? Does the trust now surrender the homeowner payments to the Depositor? Who pays the back taxes to the IRS? So now this goes to the state by escheat? Who gets the homeowners payments? Who had the power of sale since origination and who has it now?

    Then there is this. If the trust can show ownership, first how much is owed “lender” after all the insurance payments, defaulted debt sales, toxic debt transfers, stripped empty tranches, defunct trusts ect. That amount minus all the payments made by the maker might not even be a default to the “lender” and the lender isn’t even declaring the default. If Aunt Tilly pays the mortgage for awhile and the nephew still defaults, Aunt Tilly doesn’t get the house. Her payments still reduced the amount due though.

    Seems like a “free house” either ends up in the hands of the state by escheat as you say, or in the hands of the interloper collector with no power of sale who uses the name of the one who does have power of sale in order to foreclose, or someone purchases the mortgage for pennies (not a true sale for value as per UCC ect). Seems to me the short end of the stick went to the homeowner who had the most skin in the game, delinquent payments included. What if they could purchase their own defaulted debt for pennies on the dollar? What if they were deemed the original “debtor seller” (as in “lender” on deed was a straw man) and got their share of the profits on the trading and sale of their note plus the insurance and credit default swaps ect?

  4. @JOAN
    ” It’s either a secured obligation or there is no obligation.

    I realize no one wants to go there – it would mean ultimately that everyone could just stop paying, trusts would abandon their secured interest on the default and then the homeowners get the home free and clear and the debt wiped out too. So the sham continues”

    In my humble and uncertain opinion, if an originator and or subsequent purchaser of a note fails to properly place the homeowners promissory note into a specified trust, the receivable should remain on the balance sheet of the last holder of the note before the failed attempt to place it into a trust—so you would have an issue as to standing –commonly for the subprime originators they are bankrupt “burn companies” –ie set up to do criminal actions then burn out before they can be held acctountable–ie “run with the money” . So you may have a receivable on the bankrupt burn company books if they were kept properly that were not pledged [conveyed] to either a trust or pledged to a lender as collateral backing short term debt. The notes may even have been doubled up as both. That is a very real prospect where the loan schedules for a purported trust were not filed with SEC nor the Sec State UCC. The “burn company” originator that did not list the loans was left with opportunity to claim proceeds from the Lehmans etc on sale of defective MBS, while at the same time pledging those homeowner notes as collateral with a bank. Now there is a clear opportunity for 2 note claimants to arise. EG AHMSI 4th quarter 2004 Annual Report with its Qualified Auditor’s opinion [YEAH tell me again nobody knew this crap was happening Mr Greenspan/BS]—and its got to be untangled by the bankruptcy court–or rather the creditors committee which itself has no real interest in unscrambling the mess because it simply points to breaches of ethics, due diligence on the part of themselves–or worse—see shareholder suits. {I can understand why the creditors committee wants to sweep this under the rug– but the SEC and AG?}

    Sooo it appears that generally the creditors committees simply ask the bk ct to abandon the notes to the collection of the purported trusts—rather than fall into a residual pool of unstated unsecured assets in the bankrupt estate. Except with no trust or no loan schedule to a trust that includes this note-asset, the servicer picks up the opportunity to capture this asset which fell between the cracks and claim the foreclosure value in default—sort of theft—but more like an abandoned asset.

    Now under state law abandoned notes do not accrue to the benefit of the maker [homeowner] ——-no matter how much gnashing of teeth or waivers in civil action occur—–the abandoned asset escheats to the state. I was even looking at a list of sheriff sales yesterday and noticed an estate of a deceased person without heir whose trustee had named the state as the escheat party for proceeds of a real estate sale out of the estate. This is what should be happening across the country—-no moral hazard here—-the notes which cannot be traced must escheat to the states. The states obtain the mortgage security interest which would follow the note where that happens –or the claim against the maker —but in any event the failure to document does not result in a windfall to the maker of the note–or the moral hazard thing kicks in. The state should either sell the real estate at auction [as my referenced estate did above] and keep the proceeds for the state general fund—–or contribute the asset to some local organization to rent/sell etc to the homeowner–thereby keeping a clean transferable title. fothe one in a million homeowner which gets a default judgement out of a court because the servicer cant prove standing–that person has a problem ahead when that property is sold etc—so the people who think theres a free house here somewhere just smply do not understand the law of escheat.

  5. “Why Can’t You?”

    In answering your question Neil, I believe I speak for many of People when I say:

    Because we have nowhere else to go….

    Police, Mayors and other public officials keep telling the millions of Americans at every Occupy Movement around the country to “Go Home!”.

    But, as you should kindly notice and they remember that, that is where we came from or more correctly that is where we were ORDERED out from and are not allowed to return to, leaving us with the only option to live as Refugees in our own homeland EXACTLY as the Palestinians do.

    So please remember that, while the number of your options may be decreasing rapidly, the number that the rest of us have can more or less be counted on one hand.

    Count your blessings while they still remain

  6. “If there is no lawful financial or paper trail to the “servicer” once the trust has signed off on the mort, the trust is paid in full isn’t it?”

    This is what is bothering me. If someone stole your car and created a new title—–there would be no trail and the original owner hasnt signed off——-the question really is whether the servicer has actual authority to do this–ie sign off for the trust—and what if you get the trusts records and find out they have not signed off at all–what then?

    your house is gone and the loan is still on your credit rept

  7. @DCB
    “the trustee bank has abandoned the homes to the servicer”

    DCB and everyone (is johngualt around?)…

    Suspect this is true for every single mortgage that has received a NOD. ??? Wonder how long the servicer pays the trust for “volunteer” delinquent payments… Does it typically stop automatically stop once the NOD is filed?

    Really wondering about the chain of title, beneficiary status – ie state statutes, holder in due course – ie ucc 3 and 9 ect. when this (abandonment by the trust) is the case and undisclosed. How to make the case to compel the discovery of this…

    Suspect that when “servicer” (and deed of trust robo signer trustee posing as CEO of the “servicer” who is posing as the beneficiary) makes an ADOT to the trust in order to foreclose it’s not only a sham because it can’t be done after the fact for so many psa and other reasons meaning trust never received ownership of the asset in the asset backed.in the first place..

    …….and setting aside actual funding issues like strawmen originators and credit and debit book entries ect. and anonymous – “security investors not creditors” issues…

    ….the financial and paper trail is supposed to reflect that the trust is the beneficiary (certificates say so and sales are irrevocable and without recourse ect) and that’s how a judge can be made to look at it)….
    .
    ….it’s also a sham because the trust no longer has anything to do with the mort. If there is no lawful financial or paper trail to the “servicer” once the trust has signed off on the mort, the trust is paid in full isn’t it? There is no debt to anyone else. Can’t have an unsecured debt once the secured debt is discharged or charged off or signed off and not just in bankruptcy either. The party with the right to enforce the sale (trusts have this through their trustee) is the only party with the right to payment. See Veal, Pasillas, Leyva. That’s the contract on the deed and the note. That’s all the homeowner ever signed. So if “lender” (replaced by trust who PURCHASED the mort) no longer has right to enforce (if they ever had it) or gave up the right and no one else has acquired it in a true sale PURCHASED for value (as per ucc), first there can be no foreclosure and second no one has a right to the payments anymore either. I just don’t get the “unsecured” debt deal Neil, anonymous and everyone else seems to say still exists. No way, not in the “secured” agreement and there is no other agreement. Can’t seperate the note from the mort by definition. It’s either a secured obligation or there is no obligation.

    I realize no one wants to go there – it would mean ultimately that everyone could just stop paying, trusts would abandon their secured interest on the default and then the homeowners get the home free and clear and the debt wiped out too. So the sham continues.

    Maybe it’s time for American homeowners to do just that. If “servicer” (never a “lender” and never a “purchaser”) is exposed as thief and knocked out of the equation ongoing… which may still happen…trusts have no reason, ability or even desire to foreclose. It would be interesting if the big investor groups who are suing – fired the servicers and just started modifying the hell out of what they are supposed to already own (accept 2% instead of nothing). Mods by anyone else (not a beneficairy)are a sham and a way to rewrite the fraud paper.

  8. @DCB

    If you’re right (and I hope you’re not), whoever is capable of pulling that one deserves a bullett…

  9. The real big bank execs admit that the servicers are running loose —that the trustee bank has abandoned the homes to the servicer in expectation that the swrvicer will locate a friendly buyer to pay just enough to setoff the fees incurred——once a default occurs the investors get nothing–period end of story—the pensioners get nothing–why because the state ags let the servicers run amock—-the fed investigations should perhaps look at contributions and put the bugs on the state ags offices–or maybe thats why justice is soooo quiet right now–maybe break the corruption cases in october huh?

  10. “CLEVELAND TREASURER: THIS WAS A CASE OF “MONEY CHASING PEOPLE”

    Maybe since we have a debt based monetary system—–

    “CLEVELAND TREASURER: THIS WAS A CASE OF “debt influenced” MONEY CHASING PEOPLE”

  11. I am laughing my ass off—————–

    OMG———–no kidding Cleveland Treasurer———really, really, you must be kidding………….it can’t be true…………..money chasing people,,,,,,,,,,,,,really,,,,,,,,,,,,,but money is debt, taken out loans, using the credit card, oh those plastic demons,,,,,,,,created only 40 years ago…………

    money chasing people———really. I think you mean to say debt chasing people or maybe getting people into debt is the game………

    “CLEVELAND TREASURER: THIS WAS A CASE OF “MONEY CHASING PEOPLE”

  12. “CLEVELAND TREASURER: THIS WAS A CASE OF “MONEY CHASING PEOPLE”

    ——————–

    Or maybe you could it was a case of money trapping people into DEBT.

  13. MONEY is not a product or service. Money is the exchange for a product or service.

    These people on Wall St and the big banks and central banks have corrupted the concept of money to be a product, or and calling it financial engineering or financial products,,,,,,,,,,,,there are no financial products,,,,,,,,,,it is all financial manipulation or money schemes or accounting schemes.

  14. Hey Cleveland Treasurer———-

    you said this—-

    “CLEVELAND TREASURER: THIS WAS A CASE OF “MONEY CHASING PEOPLE”

    —————-

    I am glad you finally had a realization about the truth……………

    Question is??????????/

    When will others about the whole SYSTEM of MONEY.

  15. “CLEVELAND TREASURER: THIS WAS A CASE OF “MONEY CHASING PEOPLE”
    ———————————-

    the whole money system is based on money chasing people one way or the other. It is the banking system of the US Government taken over by the Federal Reserve System of banks in 1913 passed by a convinced Congress, when in fact the Congress, the Government should be in charge, and not private or public companies exchanged on the stock exchange for shares. It is all based on leverage. And who wins in the leverage, why the private or public banks……….controlled by a few. And thus we have taxes……..OMG.

    On anther note,

    If a bank issued credit or debt, and the debt is no longer collectoiable, and the bank as a private company or public company then writes off the debt for tax purposes, why on earth is it now sold for pennies on the dollar to a debt collector? The debt was written off, right? Why is it now legal to assign written off debt to somebody, who pays pennies on the dollar, and attempts to collect the full amount? Confusing ain’t it? Why so confusing? Doesn’t make sense.

    If you write off bad debt, why do you get to sell it and the buyer of written off debt gets to collect the full amount? why? And sue you if you don’t pay? Seems like quite the windfall for a junk debt buyer – pay 1 cent of the dollar and collect 100% – what did the debt buyer have at risk? Are they really a junk debt buyer, junk debt, yah right, quite the windfall. What did the debt buyer loan or did it issue credit based on it’s balance sheet? Is the junk debt buyer out any real money, or is a numbers game of collection? Were is the morals or justice of it all?

    Unbelievable. It is going to take time to handle this non-sense since everything has been corrupted by the virus of the banks.

  16. “CLEVELAND TREASURER: THIS WAS A CASE OF “MONEY CHASING PEOPLE”

    ——————–

    as stated above in the main article posting……….

    ————–

    yes Carrie,,,,,,,,,,debt collectors——–

    —————–

    We have a debt based monetary system. Read up on it. do a google search…..

    Thus,,,,,,,,,,,

    IT IS ALWAYS the case of “Money Chasing People”,,,,,,as all money is based on debt or loans or credit………..

    Jeepers.

    Endless commercials for getting a Chase Sapphire credit card,,,,,,,,,endless commercials on the radio for mortgages………

    But what happens when the people stop using credit cards, or taking out loans? Why the system comes to a halt……….banks say Houston we got a problem. The media keeps saying loans are not being made by the banks. Is this true? Or is it people are tired of being in debt?

    People balance sheets:

    1. Debt = 20k, cash = 20k.
    2. debt = 100k, cash = 20k
    3. debt = 300k, cash = 20k
    4. debt = 20k, cash = 300k

    Why can’t we have
    debt = 0, cash = 300k. ???????????

    The debt part is the private or public banks part, their cut of it all, add in compound interest,,,,,,,,debt never goes away………..time payments, go ahead and give away your future production=your income to debt payments.

    It’s the system. Debt based monetary system. All central banks in every country using one. Don’t want to use a central bank, why war is created under hidden guises.

    Stay away from the big banks.They create inflation, and deflation to trap you and me. Also enter in Wall Street.

    The Government should be the bank, the issuer of credit and thus money. That ends the corruption in getting money out of politics and our representatives. The power of simplicity.

  17. Yeah—guess what—the “investor” talk is a total LIE. There is NO INVESTOR that they “talk” to. They are DEBT COLLECTORS playing a game of LIES.

  18. You can’t walk away because they (pretender-lender, aka loan servicer) will not let you. They will come up with every excuse in the book:

    *You need to stop paying your mortgage in order to receive assistance
    *You need to re-fax your trial mod application – we never received it
    *Please send the info again, we never received it (umpteen times more)
    *Your offer to pay is not accepted by the “investor”
    *Your short-sale contract is not accepted by the “investor”

    … basically, its a one way trip on the Titanic. They caused a lot of the mess by playing games with people, telling them to stop paying, losing mod apps again and again, failure to review & approve bona-fide arms length transactions that would put a borrower in a position of obtaining a PROPER EXIT.

    Instead they supposedly sell the debt to a third party collector for pennies on the dollar, when all they had to do was work the deals they had in hand. They’re screwing the AMERICAN PEOPLE (aka loan servicers) because they can.

    What a shame, a person can choose their neighborhood, their home, their home builder, their lender and their realtor but they can’t choose the appraiser and they can’t choose who will end up servicing their loan.

    AND THERE’S THE RUB!

  19. @Ian, everything is unraveling, this is only a piece.
    Opinion.
    There is no one to continue to purchase these pools, so as the purchasers of the pools disappear the value of the asset disappears. To get it off their books, they go through a procedure, and when they back it off, then their prospectus or some filing has to show the backing off, and then there are the Real Estate Investment Trusts (REITs) that have to back off, and so there is an unraveling of this going on. Not just with mortgages oversold, but everything oversold, there are municipal bonds, and court bonds, and all kinds of stuff unraveling. What you see is layoffs and stolen homes, but it will unravel back in taxes, not just IRS taxes, because some sites say that money never went to the Corporate US anyway, they say it went to the IMF, but the taxes for normal everyday goods. Less money spent is less taxes collected, and so you back off on road repairs, and school repairs, and you back off on employee positions in the public that relies on these taxes, and the more you back off, the more people affected who have less money to spend, and the cycle continues.
    The only thing I can say, is this was built up high and wrong for a long time. You can’t just wipe it away, that’s too chaotic. But you do back it off. Notice people have unemployment checks that have stopped coming. If the gov’t doesn’t have any money how can it maintain all the employees and services, and social programs, and military and equipment and costs. So you see budgets are harder to draw up, and as all of this backs off, people who are being helped to pay rent or eat food will notice a lack/loss/decrease in what they can have, and thus some sign of unrest.
    Most don’t notice anything is wrong until it happens to them.
    We really, as an advanced species should know the hardship of another in a war torn country or an agricultural deprived country, but as long as we have cable, and our next meal, we haven’t noticed.
    What goes around comes around, and now we get to walk a mile in the shoes of many, and see the backing off of the ‘fake’ wealth that was created by all these instruments. There are some places that won’t even take the ‘elite’ credit cards, so they have to spend their own cash. Credit was always plentiful. They could life large around the world on credit. Now all that is backing off.
    It will get worse before it gets better, but this system was never supposed to be in place, and it was, and it’s our fault as an advanced species that it was created and based on scarcity and a lack of resources. There is an abundance of food this planet can produce, but those in charge have made us raze fields of their herbs and berries on a continual basis, so we could not eat of the food the planet creates naturally. They wanted the food to come from certain farms and locations. Well that control is going away.
    I remember looking at a public television show once, and a woman in another country had a bed and breakfast. Every morning she’s walk down the street in the countryside and pick fresh herbs and vegetables from the side of the road, bring it home, wash it up and feed her guests.
    You can’t see that here, because too much control has taken place to remove those abundances from our eyes.
    Even now, they have budgets to hire people to search you and to stop you from your travels, and to interfere with normal internet chat….some people are paid shills to go online and to dilute information so people can’t find the truth in all the distortion they are paid to put out there.
    Those times are coming to an end.
    The wheat and chaff will be separated.
    There will be those who get angry over the change, although it will appear abrupt for some, it’s welcomed by many, and it will get dark before it’s light.
    There will be those who lose the last bit of humanity they have left, and that new law, is in place knowing that not all of us will keep our humanity when something drastic happens. That new law will protect the meek. If you ain’t meek, well I guess you may find yourself worrying. The system is going to maintain balance.

    It’s so big, sometimes it doesn’t see the imbalance until it’s happened to a lot of people. There are 300+ million people walking around here. 5-10 million foreclosures was not an imbalance when there were 60+ million mortgages held by MERs alone; but the number has risen considerably and so you can see the shift in the awareness. The entire country did not go to hell in a hand basket on it’s own, someone must have taken it there. Who? That’s what’s going on now.

    It’s been game over. Now it’s time to put all the pieces back into the box. All the fake wealth from the game has to be returned. Those that thought they could use the fake wealth to buy precious metals to stay ahead of the game are finding out, that won’t work either. Check out the MF Global situation where the trustee is confiscating assets even if they have warehouse receipts for it.

    Patience is a virtue. If you are going to fight, at least not be the enemy. Feed their system what it need wants to see and let it clean itself up. It’s huge. Big things move slow, but they do move. We are endowed by our Creator with certain un-a-lien-able rights, including a right to property. You let the system know these rights from your Creator are violated, and they know a ‘trespass’ has been committed.
    They don’t know until you tell them/show them.
    It’s like being a huge body and a surface mole shows up. They don’t know it’s there until you show it to them. Upon examination they know if it’s a problem or not. But they are huge, you have to show them. That’s your job.
    Many sit back and wait for their ‘savior’ to come save them.
    The savior is you. If you’d connected with your trinity, you’d know you were the savior. Each of you, collectively are the savior, to wait for another is to place another God before you.

    Remember who you are.

    This system was created by us, for us, and it turned against us.
    We did not put in the provisions for protecting the people when it got out of hand and wanted to protect itself more than protect us.

    It was created on paper, through laws and codes, provisions, and ordinances.

    It will collapse by paper.

    Do not war with your brothers and sisters. They are life, they are free.

    Trespass Unwanted, corporeal, free, life, independent, state, jure divino (by divine right)

  20. They’re not “banks”…they are servicer/DEBT COLLECTORS.
    DEBT COLLECTORS ARE TEARING HOUSES DOWN WITH NO LEGAL RIGHTS TO THE PROPERTY.
    The foreclosure mills have recorded FRAUDULENT ILLEGAL DOCUMENTS in the Court of Records. Fraud on the court millions of times…they MUST BE STOPPED.
    We have to fight back by recording our own LEGAL documents in front of their illegal ones.
    This is what we have to figure out…study the Blacks Laws dictionary.

  21. […] Continue Reading: 60 Minutes: Banks Walking Away From Homes They Foreclosed — Why Can’t You? […]

  22. @Jeff,

    It’s not that kind of walking away. Banks keep foreclosing at a record pace but once they have kicked the homeowner out, they simply abandon the properties, don’t maintain it and don’t pay taxes.

    OCC came up with guidelines to assure that empty/vacant properties were not simply abandoned. Depending on whether the bank is the servicer, the owner or the trustee, a series of duties and obligations have been spelled out, including for maintenance and payment of the taxes. As I said earlier, since the bulk of the obligations rest with the “Owner” and since banks have systematically refused to live up to their duties after seizing the properties, I expect them to start the endless finger-pointing game. They will allege to be the “owner” when it is about foreclosure but they will deny ownership as soon as the house is vacated.

    It would make a lot of sense to start compiling statistics about how many abandoned properties each major servicers is responsible for and has failed to maintain. Then, the numbers can be used to argue before a judge that, as the occupant, you have always maintained the property and paid the taxes and that allowing the foreclosure would seriously hurt everyone, especially given the fact that Wells (or BofA, or Chase) has already 982,000 properties all across the states, rotting away… That too is a great argument, in the presence of a lack of standing issue: if the bqnk doesn’t own the house, we know for a fact it won’t maintain it. Force them to prove their standing.

    http://www.scribd.com/doc/75943102/OCC-GUIDANCE-TO-BANK-CEOs

  23. “Banks Walking Away From Homes They Foreclosed”

    This isn’t happening in California, that’s for sure. Even though prices are in the tanker, they still go after them with a vengeance.

  24. You know I am from Cleveland and went to Case Western for law… this just rips my heart out. My City was doing okay in the 90’s and it is now a complete wasteland. Meanwhile I take some solace in the fact that Phelan Hallinan & Schmieg got the butts handed to them on a proposed gag order in the Giles class action case:

    http://mortgagemovies.blogspot.com/2011/12/nj-district-court-judge-jerome-b.html

    ********

    And I just told BoA to go to hell, let’s see how this comes out:

    19 December 2011

    Re: Loan Modification at XXXXXX
    Reservation Code MXXXXXXX

    Dear ________:

    In response to a recent mailing and direct phone call from a Bank of America staffer last week I submitted the attached letter (pasted below) in seeking a loan modification from Bank of America. In the alternative of course you could consider it a refinance with a $2K cap on closing costs.

    I am certain that Bank of America could find a way to make this happen for me if the Bank so desires, but more likely I believe it will endlessly stall the process as per custom as noted by the Propublica investigation and many, many others.

    http://www.propublica.org/article/homeowners-say-banks-not-following-rules-for-loan-modifications/single

    I can assure you that I am not here to waste your time nor will I tolerate the bank wasting any of mine. The bank can either come to the table with me to resolve this issue in the first week of January or I will buy out the second mortgage, broker it out and move along to another bank post haste. If we go that route I am going to demand to see the original wet ink note and mortgage and there may even be a lawsuit to quiet title. I will certainly see to it that none of my friends or associates ever do business with Bank of America again.

    As you can see I have tried to be flexible with you. Do not by any means mistake my kindness for weakness. I look forward to your prompt response.

    Sincerely,
    __________________

  25. Ian…,

    If I recall, my loan covers not only the house but the land itself. Nothing disappears by tearing down the houses: the clouds on the property title still remain. That’s why it is so heart-wrenching to watch that documentary: tearing down the houses does nothing to clear up titles. It does nothing to extinguish liens. It only removes the symptoms from the visual field.

    Everything banks did is cruel, gratuitous, uncalled for and… criminal!

  26. This must stop now!

    This story needs to be played to be told and the 60 Minutes segment watched by every homeowner in America so we can unite. Like Neil says this shows the real facts.

    Post this to Facebook, Send the story to family, send this story to your AG, your delegates everyone you can think of.

    This is the War of The HomeOwner and we are watching history change right before our eyes.

    What are you doing to change it?

  27. Rokakis didn’t put the blame where it belongs, though, and that irked me. He mentioned “Some of the fault rested with the banks”.

    He doesn’t get it! He seems to think that all of this happened… just because. It happened in a vacuum, out of the blue. Banks only had “some” of the responsibility.

    P.M.O!!!

  28. Neil, you forgot the most important end result of this home demolition procedure. If 20,000 homes are torn down, then 20,000 securitized “loans” disappear. And if each “loan” is in 5-10 different pools, then what? Plus HELOCS, home equity lines,etc. Can anyone else here explain the ripple effect of what this does?

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