LPS POUNDED BY LAW SUITS AS WEAK LINK IN THE BANK SECURITIZATION SCAM

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WRONGFUL FORECLOSURE WAS THE RULE NOT THE EXCEPTION

“Plaintiffs and consumers have paid the ultimate price through bankruptcies, evictions and foreclosures that were predicated upon false, forged, fraudulent and/or inaccurate documents,” the lawsuit charges.

“Keep your eye on the MONEY. That will tell you everything. Not one cent was ever given by the parties who received documents purporting to give them rights over your loan. The documents — nearly all of them — are patent lies. Those lies are intended to deceive the public, the regulators, the investors, the courts and the homeowners into believing that the foreclosures are real. The foreclosures were not, for the most part, real in that their purpose was never to mitigate damages — it was to make money for intermediaries who never had a dime in the deal.” Neil Garfield, livinglies.me

EDITOR’S NOTE: This is why homeowners need the COMBO analysis whether it is from us (see above) or anyone else. The burden of proof SHOULD be on the forecloser but until Judges realize that error, they are looking for the homeowner to come into court loaded with data that can be introduced as evidence and which clearly define issues of fact that are triable by the court and that trigger the right to discovery.

The very presence of LPS and other  document fabrication factories like it provides instant corroboration of the homeowners’ allegations that the mortgages, and the foreclosures were rotten to the core. The notes are improper, the liens probably didn’t attach to the land, the closing documents were essentially vehicles to deliver the signature of borrowers to end the money chase that Wall Street started. As has been repeatedly asserted across the country this was not a case of people chasing money. It was a case of money chasing people. That signature of the borrower was worth more than the borrower ever knew and more than they realize even now.

Think about it. For hundreds of years lenders have been dotting their i’s and crossing their t’s creating near perfect documentary trails in hundreds of millions, perhaps billions of transactions. Suddenly they need to create layers upon layers of plausible deniability with document fabricators, substitute trustees (what was wrong with the old one?) and all sorts of excuses about why they don’t need to prove their case. Here is the truth: THEY HAVE NO CASE.

They were not the lender,the creditor or the assignee at any time. The documents refer to transactions (transfers) that never took place. The origination documents (note, mortgage, deed of trust etc.) refer to transactions that never took place because the actual lender/creditor was not disclosed — instead they put a straw-man on the note and another straw-man on the mortgage.

Keep your eye on the MONEY. That will tell you everything. Not one cent was ever given by the parties who received documents purporting to give them rights over your loan. The documents — nearly all of them — are patent lies. Those lies are intended to deceive the public, the regulators, the investors, the courts and the homeowners into believing that that the foreclosures are real. The foreclosures were not, for the most part, real in that their purpose was never to mitigate damages — it was to make money for intermediaries who never had a dime in the deal.

DON’T GET LULLED BY THE HOLIDAY MORATORIUM ON FORECLOSURES AND EVICTIONS. THEY WILL START AGAIN WITH A VENGEANCE IN JANUARY. THE BANKS MUST COMPLETE AS MANY FORECLOSURES AS POSSIBLE BEFORE THE PUBLIC, GOVERNMENT AND REGULATORS REALIZE, ONCE AND FOR ALL, THAT PRACTICALLY NONE OF THE FORECLOSURES WERE REAL, LEGAL OR AUTHORIZED.

Nevada homeowners file class-action lawsuit over foreclosure robosignings

SEE FULL ARTICLE ON VEGASINC.COM

by Steve Green

Lender Processing Services Inc., the company targeted by Nevada’s attorney general in a foreclosure robosigning investigation, has been hit with a class-action lawsuit filed by Las Vegas and Henderson homeowners.

Jacksonville, Fla.-based LPS, one of the nation’s largest foreclosure processors, has insisted its robosigning problems in Nevada involved mere paperwork issues, have been addressed and did not involve wrongful foreclosures.

But Tuesday’s homeowner lawsuit said LPS’s use of “forged, fraudulent and/or erroneous” foreclosure documents tainted the foreclosure process to the point where LPS and banks it worked with “did not have authority to foreclose or to continue with the foreclosure process.”

The suit filed in Clark County District Court in Las Vegas alleges violations of Nevada’s Deceptive Trade Practices Act, seeks to block pending foreclosures involving allegedly forged LPS documents and seeks unspecified damages for completed foreclosures.

Besides the Nevada attorney general’s lawsuit filed against LPS last week alleging widespread fraud in its foreclosure paperwork operations, criminal charges have been filed in Las Vegas against two LPS officers and four notaries in what state prosecutors call a scheme in which thousands of foreclosure documents were tainted by forged signatures and bogus notarizations.

Also named as defendants in Tuesday’s class-action lawsuit were lenders and foreclosure trustees that work with LPS. They are Bank of America, its subsidiary ReconTrust Co.; IndyMac Mortgage Services, a division of OneWest Bank; and Regional Service Corp., which acts as a foreclosure trustee.

Tuesdays lawsuit was filed by five homeowners and is proposed as a class action representing “countless” more plaintiffs, likely thousands. Four of the named homeowners face foreclosure and the fifth has been foreclosed on, the suit says.

The proposed class of plaintiffs is defined as borrowers in Nevada who received foreclosure documents, called notices of default, “that were improperly executed by LPS, its predecessors or its subsidiaries.”

Tuesday’s lawsuit seeks a court declaration that LPS and its codefendants violated Nevada’s law governing foreclosure proceedings “in that they proceeded with the foreclosure process despite relying upon forged and falsified notices of default.”

“Plaintiffs and consumers have paid the ultimate price through bankruptcies, evictions and foreclosures that were predicated upon false, forged, fraudulent and/or inaccurate documents,” the lawsuit charges.

The suit also seeks a declaration that the notices of default issued by LPS “are null and void” and asks for an injunction blocking LPS and the codefendants from proceeding with the allegedly tainted foreclosures.

“Plaintiffs’ properties face foreclosure as a result of defendants violations of NRS 107.080 (the foreclosure law),” the suit says.

The suit also seeks unspecified actual and punitive damages and attorney’s fees. It was filed by attorneys at the Las Vegas law firm Callister & Associates LLC.

An LPS spokesman said the company had no immediate comment on Tuesday’s lawsuit but reiterated its earlier statement: “LPS acknowledges the signing procedures on some of these documents were flawed; however, the company also believes these documents were properly authorized and their recording did not result in a wrongful foreclosure.”

 

23 Responses

  1. I’m so lost and so confused after roughly 5 yrs of fighting. The Judge I feel did not leave me any option. The law was ignored and not held up in my case. They allowed a foreclosure suit well knowing I had a Civil Suit, me as Plaintiff in the same Court. They ignored standing, documentation, 9 separate sets of HUD 1 Settlement Statements, all with varying accounting and ALL with a Photoshopped signature for me and in some cases my husband. They forged his name on Mortgage. They lied and falsified so many docs. The foreclosure was not served but falsified. Complete with Notary. They said they served my husband. I supplied a letter from the Dr with whom my husband had an appointment at the exact time of their “serving” . The Judge said it did not matter, I discovered it on my own. Never mind the attempt at Fraud. I have their documents showing they used 2 different Social Security Numbers on me.
    Foreclosing party switched to new name same lawyers as soon as the Judge ruled on the foreclosure. Which he sent on for completion to the state striking my answer he said I did not object to the validity. A complete lie, as was all he stated. I hired a lawyer, fees of about 18 or 20 thousand more and he did not have it vacated but put on hold and answer not stricken. Waiting until I finish my Civil case, a year and a half later. And all the stress and money associated with the wasted 18 months. Then I had to pay him becasue the parties in Civil suit got on the band wagon and motioned to dismiss based on my striken record it sounds so corrupt. Wrong.

    I have now in Court given in, but not yet signed the agreement, it is full of disagreeable stipulations. They are now saying Deed in lieu of foreclosure. It was agreed to be a Settlement, in my words, settling for not going through with trial because they will pay me money to move on. However, if deed in lieu of foreclosure is going to be a scar on my credit this changes things. They are expected to clean up my credit completely of their damage done.

    The Judge said he would not hear consumer fraud claim. My attorney said because my debt out weighed my damages. That is not how I understand Consumer Law. …and my evidence My Mortgage Ledger shows several Book Entry Clearings. Is it appropriate to remove the full balance due on my account $460000 and then the next day remove it pay it out to someone else? It seems like money laundering. Some unseen entity or individual identified only by 3 numbers, and “new” or “old”

    The way it looks I will not be able to get a loan on a small house, even with a big deposit. I will pay more to live now than before. Rent has skyrocketed.

    I am considering any options to push my way back to the Court or a higher court. I have exhausted any avenue I now have. My lawyer did not know anything about Securities and Judge admitted he knew nothing. They all agree after all, I had 4 years of “free rent” Yeah that’s why I’m in this. It was spent with my head in the toilet drowning.

    I am so afraid one of the banks that claimed ownership who is not included will come back to expect payment. Can the Judge say this will not happen and it be true? Can others overlooked by this Pretender lender, with obvious breaks in Assignment trail who had a doc saying he, they a junk bond dealer had an assignment one year before admitting it. In the reply to my opposition to Judgement he then claimed he did not own it. In fact the Mortgage company told me in writing that someone else via their subsidiary owns it as a deal or arrangement they had with them for some unknown circumstance.
    There is an endless line of evidence they ignored and fraud they committed. They would not ALLOW me to speak of the other case, but the Chancery Judge knew well that it was ongoing. How can Judges make up the law as they go? What am I missing.

    I can tell you, if you still have time… get Neil on your side. Any advice I am grateful. Good luck to all and Happy Happier New Year.

  2. Van Ecks–your stuff sounds very useful but really foreign and complex–I wish you could simplify it for the neophyte readers.

  3. YES, AND IF YOU WANT TO “PAY OFF” YOUR FORMER INDYMAC “LOAN”—YOU HAVE TO MAKE THE CHECK OUT TO “ONE WEST BANK, F.S.B.”…A THIRD PARTY DEBT COLLECTOR.

    CRIMINALS…ALL OF THEM.

  4. John Van eck:

    IndyMac has already created the pipeline to wash the assets witht eh help of the FDIC and the OCC. Take a look at the OCC docs for IMB Holdco and see where the assets end up after being cleaned through the conservator bank, IndyMac Federal Bank,FSB. IndyMac Venture LLC,is an empty shell and truly has no authority over the loans. All the loans sit on MERS under the conservator bank and never were transferred when the FDIC became the receiver bank for the assets of the failed thrift. This is because they are still collecting on the default insurance from several of the monolines.

    All of the portfolio loans at the failed thrift have been washed and their final destination is a Trust established by the owners of IMB Holdco.

    The Silo structure between the FDIC and the Purchasers is the absolute largest scam pulled on the American People since Kennedy being shot. Doesn’t anyone in America care that the group that purchased the interest in the assets are the same folks that provided the leverage, shorted the pools and the bank holding companies into insolvency, and than purchased the assets fro pennies on the dollar through programs set up by the FDIC and the federal reserve corporation.

    Let’s face it, until these two private entities are fully exposed to the public for the true meaning of their existence: insure private bank losses and than socialize under-funded capital requirments – we are all doomed. 2012- the year of the international currency. You gotta love the term ‘Special Draw Rights”.

  5. Wall St has taken over the world thru securitization:

    Anything with a cash flow, anything………they have to get over the hurdle of land records of recording,,,,,,,,,hence MERS,,,,,,,,,,an experiment……….that met opposition…………but they are fighting for it…………big time——-

    shttp://books.google.com/books?id=Vy00CVy5SS8C&pg=PA138&lpg=PA138&dq=are+electric+bills+securitized&source=bl&ots=69CdrxtkSx&sig=8g4hXyUZkdJon6PQ_CbnnJm4uTg&hl=en&sa=X&ei=1fbzTqPrC5DKiAKosoWyDg&ved=0CDYQ6AEwATgK#v=onepage&q=are%20electric%20bills%20securitized&f=false

    http://www.power-eng.com/news/2011/12/1568193087/governor-signs-securitization-bill-into-law-occ-thanks-legislative-leaders-for-consumer-protections.html

    http://www.ctnewsjunkie.com/ctnj.php/archives/entry/lawmakers_continue_to_distance_themselves_from_securitization

    —————————

    Anything with a cash flow can be securitized———–

    your electric bills……….your taxes, your dog tax every year………..

    it all goes back to Wall St who created the Federal Reserve System of Banks,,,,,,,,and thus all Central Banks——–

  6. @enraged——-

    do you realize the big banks and the central banks and the federal reserve have unlimited power to create money and fight to keep their system in place, and thus,,,,,,,,,,,,they have a big advantage as they can pay people, those people being congress and AG’s and public media…………

    We can only win by personal sacrifice and we will not get paid…….the white hats,,,,,,,,,,,that is the sacrifice………..but in the long run,,,,,,,,,,,,,if we do not use their debt instruments,,,,,,,,why they will fold,,,,,,,,,,,, or collapse……….

  7. @hman

    I agree with the burden of proof lies with the plantiff but how does that apply to non-judicial states when a the homeowner has to sue to stop foreclosure. Doesn’t that automatically but the burden of proff on the homeowner?

    —————————————–

    that’s right I’m sure. Your question to file a suit or complaint or whatever the stupid law court rules are………….

    If you file a suit, you must have a CAUSE of ACTION. What it is? What is your proof?

    We are fuk big time……………

    so be it————

    The ultimate is to never borrow again or use those plastic demons called credit cards……..then if we do not use those things, those plastic demons or signing notes saying promise to pay, why we win in the long run…………..it is called education which is purposely lacking or not easily found.

  8. http://www.huffingtonpost.com/2011/12/22/federal-prosecutors-mortgages_n_1164866.html?ref=business

    Federal Prosecutors Have Stayed On Sidelines In Mortgage Cases, Despite Wealth Of Evidence

    First Posted: 12/22/11 08:27 AM ET

    Four years after the banking system nearly collapsed from reckless mortgage lending, federal prosecutors have stayed on the sidelines, even as judges around the country are pointing fingers at possible wrongdoing.

    The federal government, as has been widely noted, has pressed few criminal cases against major lenders or senior executives for the events that led to the meltdown of 2007. Finding hard evidence has proved difficult, the Justice Department has said.

    The government also hasn’t brought any prosecutions for dubious foreclosure practices deployed since 2007 by big banks and other mortgage-servicing companies…

    …The most serious potential foreclosure violations involve falsified mortgage promissory notes, the documents homeowners sign vowing to repay mortgage loans. Courts uniformly have ruled that unless a creditor legally owns the promissory note, it has no legal right to foreclose. For each mortgage there is only one promissory note.

    Bankruptcy court records reviewed by Reuters show that at least a dozen radically different documents purporting to be the authentic promissory note have turned up in foreclosure cases involving six different properties in the federal bankruptcy court for the Southern District of New York.

    In one, Wells Fargo is battling to foreclose on the Bronx home of Tindala Mims, a single mother who works as an ambulance driver. In September 2010, Wells Fargo filed a promissory note bearing a signed stamp showing that the note belonged to defunct Washington Mutual Bank, not Wells Fargo. The judge threw out the case.

    In a second attempt, the court was given a different version of the note. But inspection showed physical alterations. A variety of marks on the original were missing or seemed obviously altered on the second. And the second version had a stamped endorsement, missing on the first, that appeared to give Wells Fargo the right to foreclose.

    The judge threw out the second attempt too. Wells Fargo is trying a third time. It declined to comment on the case.

    Linda Tirelli, Mims’ lawyer, in October sued Wells Fargo, alleging “fabrication of documents.”

    “It seems to me that Washington is deathly afraid of the banking industry,” Tirelli said. “If you’re talking about filing false documents and filing false notarizations, do you really think that the U.S. Attorney would find it too difficult to prosecute?”

  9. Hello Anonymous, I’ve seen it written here many times about refinances being fraudelent or in default. Maybe I’m slow but I don’t understand?

    Can you please elaborate on that if you have a second and how would you find out what really happened at the closing table if the lender is out of business?

  10. tnharry,

    You need to do some homework. If you are talking about a refinance, you need to find out exactly what really happened at THAT refinance. You need to find out the status of the loan BEFORE the refinance. In fact, only servicing rights to a (false) default debt were “transferred” by fraudulent refinance of a former GSE loan. None of the documents, and the refinance itself, were valid. And, that makes the foreclosure and DOT,and everything else, invalid. GSEs hold much undisclosed information.

    And, jumbo loans have similar problems.

    Happy Holidays to you, but may I suggest a different profession to you going forward into the New Year??? No more income to you upon eventual disclosure of mass fraud. Documents you rely upon — are bogus.

    The “people” will eventually win, and, that will put you out of business —- (foreclosure also to you???).

    Game will be over —going forward.

    TIME —– is our friend.

  11. @tnharry,

    What if Servicer ABC recorded (non-judicial state like CA, for example). Loan transferred to servicer DEF, without recording. Homeowner then records a new Grant or Warranty Deed.

    What does that do against servicer DEF? Can that in any way be used to stop a foreclosure initiated by DEF after homeowner recordation?

    Hypothetical question…

  12. The “foreclosure docs of record” are fraudulent. They state an SOT for a closed and empty trust. They state “trustee Deutsche” as beneficiary–which is a lie…because on other papers they sent me they state Deutsche has no beneficial interest in any of the “loans”…their paperwork contradicts itself.

    It’s all lies upon lies…upon lies. Grant Deed trumps DOT.

  13. @carie – that doesn’t work. anything new filed is still subject to the DOT and the foreclosure docs of record. older generally beats newer in the recording of documents.

  14. @Carie,

    I will answer your question with an question…

    Why do you think banks have been pushing republicans judicial states tes to become non-judicial? I recently read that somewhere and I thought: “Son of a gun! They’ll go all the way before collapsing!”

    In non-judicial states, you’re really stuck: as a plaintiff, if you sue, you’re held to a heavy burden of proof unless you can document serious statutory violations (Tila, Respa, Fdcpa). If you file for BK, you have to document your inability to pay in a chapter 7, many states will not allow you to keep the house if you can’t pay the monthly mortgage and many states still don’t want to hear the “unsecured debt” argument. And since foreclosures are not decided in court, you don’t have much of a chance of presenting your side of the story either.

    The only good point in most non-judicial states is that, once you’re foreclosed on, you don’t owe antyhing anymore. They can’t come after you for the difference. Still, it thoroughly sucks! Heads they win. Tails, you lose!

  15. Yes, how DO we put the “burden of proof” on the criminal forecloser?

    How about recording a new Grant or Warranty Deed—in front of their illegal fraudulent docs?

  16. I only hope LPS gets smacked hard on this one. It’s due.

  17. @hman,

    It does. Hence the need for you to do your homework and choose your strategy very carefully.

  18. I agree with the burden of proof lies with the plantiff but how does that apply to non-judicial states when a the homeowner has to sue to stop foreclosure. Doesn’t that automatically but the burden of proff on the homeowner?

  19. @Neil,

    How can the combo title and securitization help anyone who has Freddie or Fannie table funded loans? In other words, you have a 3rd party originator who is one of Countrywides conduits. Countrywide then tables the loan and gets Fannie Mac backing, but Fannie Mae at the same time then hires a big trustee bank which sponsors a sale to investors in the market. How can the combo title + Securitization help in this instance??

    Thanks,
    James

  20. I tend to agree with tnharry: the burden of proof rests with the plaintiff (thank God! Otherwise, can you imagine the chaos? Anyone could allege anything absolutely untrue and ludicrous and people would spend their lives trying to disprove something that doesn’t exist in the first place) The defendant’s job is to disprove everything the plaintiff alleges by using the plaintiff’s own records if necessary and by forcing disclosure and performing a top-notch discovery.

    The problem for LPS and the co-defendants is that… they will have an increasingly hard time disproving anything, especially in view of the mountain of documents, depositions, documentaries, news etc. having surfaced during this past year.

    And… I don’t think any of the defendants will really want to see that case go before a jury, should it be granted class-action status… which isn’t yet the case since it was just filed. It’s taken a long time but it seems to be closing in on banks and servicers, slowly but surely.

  21. “EDITOR’S NOTE: This is why homeowners need the COMBO analysis whether it is from us (see above) or anyone else. The burden of proof SHOULD be on the forecloser but until Judges realize that error, they are looking for the homeowner to come into court loaded with data that can be introduced as evidence and which clearly define issues of fact that are triable by the court and that trigger the right to discovery.”

    WRONG, WRONG, WRONG – the burden of proof is always on the Plaintiff in a case. Sure, the emotional and popular view is to pile on the evil bank, but that doesn’t mean you ignore the realities of the jurisprudence system. Making blanket, factually inaccurate statements to sell your combo analysis products is just wrong Neil.

  22. Inevitably, the undercapitalized defendants in these and other class action suits will fold, themselves going into the bankruptcy Courts for liquidation. You can anticipate that the assets will be stripped out before Filing, with enough time interval so that there will be no claw-back of assets. The attorneys for the Plaintiffs recognize this and are casting a wider net, including as defendants other entities that (maybe) have more assets. I predict LPS and IndyMac will fold, their assets (and not the liabilities) shovelled off to a non-arms-length purchaser in a Sec. 363 bulk asset sale. And that is why criminal prosecutions of the Officers and Managers of these outfits are the Final Solution.

  23. @Carie

    “Also named as defendants in Tuesday’s class-action lawsuit were lenders and foreclosure trustees that work with LPS. They are Bank of America, its subsidiary ReconTrust Co.; IndyMac Mortgage Services, a division of OneWest Bank; and Regional Service Corp., which acts as a foreclosure trustee”.

    I believe some of those players are yours… I realize it is Nevada but things have a way of snowballing and given the association between Masto and Harris, it can only augur xetremely well.

    Merry Christmas and Happy New Year!

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