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EDITOR’S ANALYSIS: The occupiers have the right target. Shining a light on the auctions will not only reveal deficiencies and illegalities — it will reveal the essential vulnerability of the entire securitization scam.It is at the auction when they can no longer play shell games and where they have committed themselves as to the identity of the creditor, the amount due and their own status in the transaction. The deed issued from a foreclosure sale names a specific party and that cannot be redone — but it can be overturned.
Each “bid” must either be in cash or it can be a ” credit bid.” The credit bid can’t be by just anyone claiming to be a creditor. The credit bid must come from THE secured creditor on the loan for the house and cannot exceed the amount due from the borrower. AND it must be the same “creditor” that foreclosed. If they don’t fulfill the criteria, then the sale is a sham and MUST be overturned by the Court. In all cases reviewed by our team the bid was submitted as a credit bid and in nearly all cases the bid was submitted by a party who (a) wasn’t a creditor or (b) wasn’t the same party who foreclosed or both.
The bid process is pretty clear-cut. If you bid, and you win the auction you are required to pay in cash unless it is a bona fide credit bid. If they want to bid more than the debt they alleged is owed they must do it in cash. If they bid less than the amount they claim as due, then they have admitted that the property is worth less than the loan and they are asserting a value based upon current data. Thus once the credit bid is made, you may have very clear cut grounds for stating that the foreclosure was wrongful.
If the homeowner submitted a modification offer that was turned down, then you can use that against the bidder if certain conditions are met. If the modification offer was worth substantially more than the bid, which is unusually the case, then you can attack the so-called creditor for failing to consider the modification offer. This argument is getting increasing traction around the country. As far as I can tell these lawsuits are settled promptly and confidentially, thus far. We will see what happens as the numbers increase. But Judges like settlements and modifications. The HAMP requires “consideration” but does not require acceptance. By presenting a prima facie case from their own actions, you force them to come up with a reasonable business purpose for taking less money at the auction than they could have received from the homeowner.

Once you are in court, you should start discovery early as to their status as a creditor and as to the loan status. If behind the scenes payments reduced the balance due to the creditors (investors) you catch them flat-footed — but I have never seen a case that didn’t settle on highly favorable terms to the borrower where the borrower prevailed in getting an order requiring the so-called creditor to respond to discovery that even got close to these points.

Occupy LA protesters now battling foreclosure auctions – Los Angeles Times


16 Responses

  1. Enraged that is what I meant thank you for clarifying.

  2. @ A man,

    During the S & L, there were (obviously) laws to put bankers in jail. As far as I know, the statute of fraud doesn’t care who committed it. I don’t see what gives criminal immunity to bankers convicted of crimes and. as far as I know, fraud is a crime, fraud upon the court is a crime.

    Do we have to understand that, were a banker to commit any kind of a crime, there is no law to jail him? That he could, actually, take a gun and shoot someone and not be held accountable?

    The laws are on the books. No one wants to apply them. That’s my take on it.

  3. Another thing Anonymous if you are correct we actually live in a Totalitarian State. Pick whatever you like Fascist or Communist. or both.

    I hope you all had a happy Holidays.


  4. Enraged this is why President Obama is the Captain of the Ship and is ultimately responsible. On Sixty Minutes I think he said there were no current laws to put the banksters in jail.

    I also disagree with Anonymous that there is no alternative to President Obama. Even if the other candidate(s) are the same at least we voted this guy out.


  5. @Geanette,

    According to William Black, 10,000 people were investigated during the S&L scandal. Over 1,000 went to jail (although, for some, it became a hell of a political platform… Opportunists exist everywhere).

    We are in year 6 of the greatest manmade scandal ever visited on the US. So far, nothing has been done to stop it. Foreclosures are still going on with fraudulent paperwork, banks are still giving executives obscene bonuses, our government keeps on giving bank execs high power, high visibility positions and OWS doesn’t seem to falter.

    The only new thing is… Iran. This damn country is preparing the field to go and strike Iran. It became more than obvious yesterday when I listened to the news. I said it a while back: history has demonstrated over and over again that the best way to fix a country’s economy is by throwing it into wars… And that’s exactly what has been done here… jeez, since the S&L! Actually, no. Since the great depression. Maybe even before. Either way, we’re heading for war. Civil, international, maybe both. I’m starting to wonder if it’s not intentionally created to reduce the world population…

    Oh well! Let’s not go there. Otherwise, we might as well take a fling and get ourselves out of this manmade misery.

  6. This corporate culture where profit greed, risk taking and cost cutting is above human consideration must be stopped!! What diseased minds created such a culture, one is rich, but no matter how much money one has it just isn’t enough..just keep pushing for more and more even if it means the destruction of life as we know it!! Well we say enough, even if the 99% have to fight fire with fire!!

    God, the pressure and hardship taken of the individual and family would have been a horrendous relief if only the banks showed some compassion and worked with the consumer. The banks would have lost nothing!! yet, they decided to go down such a cruel and heartless road refusing to help humankind!

    Now, we are going to nail their asses to the wall!! We will not stop…the big 4 (and perhaps a few others ) must be broken up and some of those top executives must go to jail…after all, Martha Stewart did!

  7. […] the original post here: OCCUPYERS TARGET THE AUCTIONS by BOA « Livinglies's Weblog Comments […]

  8. Thanks…will research a contest period in my state(still litigating so not being specific). I plan to go to the sale and bear witness. I am currently receiving new letters from my “servicer”( in wrong state) threatening Foreclosure because I have violated the Terms of my mortgage. It’s anybodies gain at this point…note allegedly endorsed in blank(this has not been produced so IDK),anyone with a 50$ MERS stamp can try…and prolly succeed as the Judge won’t read anything or require ANY evidence.
    There is still a chance that they will allow a stay of the sale pending appeal…my lawyer was going to hand it off to someone he could actually speak with…whatever…have a place to go!

  9. FKA ,

    I don’t know what state you’re in but in Florida there is a contest/complaint period after the sale ,, I believe it’s 10 business days .. The clerk issues a “clerks title” after the contest period ends with no complaints. I’d get ready and have multiple arguments ready to file .. it’s VERY common to substitute the plaintiff at the last minute… If they had the wrong plaintiff party all through the suit how can they “fix it” at the last minute?

  10. Thanks Carie…the problem lies with a Judge that refuses to read anything OR apply state law. After 18 months he issued only a 3 page ruling!! One page for Title,one page for the 1 paragraph of facts(determined w/o evidence),and a page for signatures!!! We have been fighting hard and they are “showing me” by hurrying up with the sale. We are Appealing…it “should” be reversed for MANY reasons…ultimately making the foreclosure MORE wrongful.

  11. Abby,
    That video with Mr. Raja is powerful stuff! THANK YOU!!This is what all of this site has been saying. It exposes how money is made with borrowers signatures. I also find the fraud in that because the signature creates the money, the borrower is an undisclosed investor in the trust!

    Everyone on this site should watch that video!! Go thru it and understand what they are saying. THIS IS HUGE!!!


  12. […] Follow this link: OCCUPYERS TARGET THE AUCTIONS by BOA […]

  13. How can the “owner” be the “trustee” of a closed, empty, and non-existent securitized trust?

    This is what the so-called “judges” are letting the criminal home stealers get away with…they ignore the homeowner and side with the bullsh**…

  14. @FKA
    email me—I may be able to help you: cariemac9@aol.com

  15. I will find out soon enough who will make the credit bid…they are selling my house on 1/19…unless the Appeals court approves the stay pending Appeal. The starting bid is nearly HALF what we offered via HAMP mod that was wrongfully denied. The Judge did NOT even require them to “produce the note” in 18 months of litigation. No evidence at ALL was required for an order to sell my house without my consent. Sigh…



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