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EDITOR’S COMMENT: It always seems like you need firepower — wealth or political clout to simply get justice. The foreclosure was wrong, the figures were wrong and the policy was wrong. Law enforcement has an obligation to step in and assist those people who cannot get reasonable responses from their lender. Those in armed forces fight for those who cannot fight. Those in law enforcement should answer the same call.


In a last-minute move, Citi- Mortgage called off the foreclosure sale of a St. Louis Park house whose owner battled to stay in her home with the support of the Minnesota attorney general.

Nancy Gosselin was scheduled to lose her house in a sheriff’s auction scheduled for Tuesday, even though an investigation by the attorney general determined that at most, she had missed one payment of $584 more than two years ago.

After Gosselin was featured in a Whistleblower column on Nov. 13, CitiMortgage postponed the foreclosure for a month. Then, this week, Gosselin got the good news.

“It was canceled,” Mark Rodgers, director of Citi public affairs, said in an e-mail to the Star Tribune on Thursday. “This matter has been resolved.”

A receptionist at Sela Roofing, Gosselin refinanced her house with Bremer Bank for a $84,100, 20-year mortgage in 2005. Then the mortgage was sold to CitiMortgage.

Gosselin said she never missed any payments, and a loan officer at Bremer Bank agreed. Yet CitiMortgage began assessing monthly late fees on the Xenwood Avenue house, which she repeatedly contested, and last spring the company refused to accept Gosselin’s monthly payments and took action to sell the house at foreclosure.

In rescinding the foreclosure, CitiMortgage agreed to drop more than $700 in late fees and charges, Gosselin said. In return, she made eight back payments.

Gosselin said she was relieved to know her house will not be sold.

“It feels really great,” she said on Thursday. “This is the house I grew up in. … I love my home.”

In a letter to William Gosiger of the attorney general’s office, Susie Birmes of CitiMortgage’s Executive Response Unit said it was waiving the late fees, reinstating the loan and canceling the foreclosure. But she said it was not waiving “foreclosure costs and attorney fees in the amount of $2,140.11,” which “can be paid at any time during the life of the loan and will be required to pay … in full, upon payoff.”

Gosselin remains furious about those charges and says she will not pay them. “CitiMortgage can pay their legal fees out of their bailout money,” she said. Her Bremer Bank loan officer, Stephan O’Connor, said she should not have to pay them, because she was not at fault.

“If they are pursuing those [attorney fees], we will continue to go to bat for the homeowner to see whether the fees can be waived or reduced,” said Ben Wogsland, a spokesman for Minnesota Attorney General Lori Swanson. “It’s good that Ms. Gosselin will be able to stay in her home, that the sheriff sale has been called off and the loan has been reinstated.”

Nick Slade, a Minneapolis attorney who works on foreclosure cases, said it takes an enormous amount of time, energy and resources on the part of numerous people to get something done for a homeowner fighting foreclosure.

“It’s only when you bring in the level of firepower that happened in this case that they pull it out of the nightmare bin in the regular process and give it to somebody and really truly handle it in a way that makes sense,” Slade said.

Randy Furst • 612-673-4224


33 Responses

  1. Do not know but the comment to ANONYMOUS and BSE should say Pat1 not Pat


    Fraud upon the Bankruptcy court is another option I plan to use. I appreciate all your words of wisdom I am so glad you decide to stay involved.

    I have an attorney with a heart. He stands alone in a sea of scum bag lawyers for the banks at the court house daily!

    He fights on and gets little victories once in a while, but this is a non-judical state with very few victories. The judge in my Summary Judgement case actually said “Why does the homeowner care who is foreclosing they were discharged of any responsibility in Bankruptcy.” He forgets this is my home and I have lived here almost 7 years and have so much more in this to loose. Down Payment, 4 years of payments plus our life we have created here.

    A Federal Judge in a mediation on a FDCPA case gave me my options as he saw them. I decided not to settle and to move forward with trial. He cautioned me based on what he knew about the attorney representing me in our wrongful foreclosure suit we would loose our Motion for Summary Judgement. He just was letting me know they are not buying anything my brave attorney is saying in this state.

    He was comes unlawful detainer suit. This is my lives work now I will fight it is not about this house I have another house to go to it is the principle! They are stealing our homes.

    I did settle just before the trail and the two settlement and sanctions I got in my cases has help fund my fight and I plan to appeal my case and move on to the Supreme Court if that is what it takes.

    If not me who?

    Keep Fighting

  3. Pat1 — is right (except never contemplate suicide). Right about BK — it is another chance. And, Pat1 — you may be able to reopen your BK — remember – fraud upon the court — no SOL. Not easy, but never give up.

    Have been involved with all of this before any of you even knew something is very wrong. NEVER GIVE UP.

  4. I have the best attorney in AZ …She fights with heart..But we have gotten no where. Now in BK court and still fighting and still fighting against Wells Fargo, US Bank and their scum bag attornies.

  5. I sincerely hope that Nancy Gosselins doesn’t let her guard down. How many times have homeowners been told it has been taken care of and down the road they get into even more trouble? Even with the help of people who have clout, trouble is just around the corner. I wouldn’t trust the bank or any of their partners in crime for anything. Their words mean nothing.

    Happy New Year to all….

  6. BSE,

    I wish I had the opportunity to do BK now instead of when it happend to me in 2008. You have a chance I did not have back then. Object to the Motion for Releif of Stay and take it and run with it we know so much more today.

    BK is not as bad as one may think it is not easy but it is a piece of cake compared to the fight you have already been through. It gives you a fighting chance.So many say give up move on with your life start over it is not worth the stress and emotional pain.

    Yes we could do that in fact over the last three years I have come to that thought of I am done and even sucide has come to mind. Yes it makes me sad to thnk that is where I was a year ago this time but I picked my self up turned myself into a doctor for help with depression and continue to fight. As I always say my children are watching.

    You see if we do not fight this fraud who will?

  7. Enraged,

    Have never seen a servicer record ownership of servicing rights. If they did, this would be an easy win in court. At one time, some servicers could act in dual capacity as servicer and originator. But, in this case, the mortgage origination business has likely long been sold to someone else.

    You know, no mortgage originator was ever going to let your mortgage go out of their own hands. Do you really think that mortgage/note owners were ever going to let someone else take the loan by a refinance??? No — they were not stupid. Whoever was your original mortgagee when you purchased your home, is likely the same entity that “refinanced” your loan along the way. It may not look the same on record because this would have been concealed, but it is most likely the same. That is, until that mortgagee disposes of collection rights upon actual or fabricated default.

    You have to know who retained mortgages and who sold them — and to whom. You have to know who acquired who. And, you have to know that Freddie/Fannie were only investors. A sale of loan receivables to Freddie/Fannie did not change the mortgagee. F/F are not lenders.

    You have to start at the very beginning. .

  8. 2012…the year we “occupy” our county recorders’ offices—“the scene of the crimes”…

  9. @Usedkarguy

    “Can a servicer record a “mortgage” for ownership of “servicing rights?”

    Answer: Yes. They can try anything they want, including filing in violation of all existing laws. It’s up to you to prove they are wrong and to call them on it.

    The real question is: Does any law allow them to do it?

    Answer: probably not. Whatever they allege, they will have to support it by quoting some law. It’s up to you to prove that they wrongly use it to enrich themselves and/or defraud you. That is when you counterclaim for extensive damages.

  10. […] Filed under: bubble, CDO, CORRUPTION, currency, Eviction, foreclosure, GTC | Honor, Investor, Mortgage, securities fraud Tagged: bankruptcy, borrower, countrywide, disclosure, foreclosure, foreclosure defense, foreclosure offense, foreclosures, fraud, LOAN MODIFICATION, modification, quiet title, rescission, RESPA, securitization, TILA audit, trustee, WEISBAND Livinglies’s Weblog […]

  11. happy new year everyone

    be strong and courageous

  12. This is all a lie. Living lies.

  13. with the funding check from Deutsche for the Wells Fargo mortgage and HSBC filing the foreclosure, it’s a veritable Bermuda Triangle.

  14. didn’t think so, ANON. Happy New Year, my friend. And thanks as always for your continued input.

  15. usedkarguy,

    And, BK trustee, never mind any trustee, is not the creditor. You are entitled to know your creditor – by law. If any trustee acts, they must identify on WHOSE BEHALF they are acting.

    You are entitled to know your creditor by law.

  16. usedkarguy,


  17. can a servicer record a “mortgage” for ownership of “servicing rights”?

  18. Speaking of bankruptcy, here’s part of the letter to the trial attorney that happened to be sitting in on our hearing……..
    Office of The United States Trustee

    It is our position that the Trustee is in a position to order a Subpoena Duces Tecum and a Subpoena Ad Testificandum for Ms. Joan Mills, Pursuant to the Federal Rules of Bankruptcy Procedure 2004, to get the truth behind the disposition of Debtors’ loan, note, mortgage, and subsequent trailing assignments of mortgage and the promissory note. It is our belief that the U.S. Trustee is a party in interest for the purposes of Rule 2004 because Congress gave the US Trustee statutory standing to participate in cases in 11 U.S.C. Office of The United States Trustee §307. Section 307 confers broad standing on the U.S. Trustee to “raise [,]…appear and be heard on any issue in any case or proceeding arising under the Bankruptcy Code. Even before § 307 existed, the Fourth Circuit ruled tha the US Trustee is a party in interest when the US Trustee is carrying out the public interest to prevent an abuse of the bankruptcy process. A-1 Trash Pickup v. United States Trustee (In re: A-1 Trash Pickup), 802 F.2d 774 (4th Cir. 1986). Other courts have also held that a U.S.Trustee is a “party in interest” that may raise and appear and be heard on any issue in bankruptcy cases, relying on the statutory language of §307. In re South Beach Sec. Inc., 606 F.3d 366, 371 (7th Cir. 2010)(stating that “anyone who has a legally protected interest that could be affected by a bankruptcy proceeding is entitled to assert that interest with respect to any issue to which it pertains” and the U.S. Trustee has a statutory interest in making sure that bankruptcy law is not abused); see also In re United Artists Theater Co., 315 F.3d 217,225 (3d Cir. 2003) (explaining that U.S. Trustees are officer of the Department of Justice who protect public interest by aiding bankruptcy judges in monitoring certain aspects of bankruptcy proceedings, which, together with §307, gave them standing to challenge any claim in a proceeding.


  19. BSE,

    Long time here — you have a chance in BK. Make sure you have a good attorney. BK can disclose the fraud. And, fraud upon the court. You have another chance.

  20. Not enough here. So Citi dropped the foreclosure. The question is, how did this come about in the first place?? How did this even happen?? And, who the heck is Citi servicing for???

    CitiMortgage is a servicer. Who is Citi servicing for?? Servicers are not the creditor. Servicers cannot negotiate anything without divulging the creditor. Citi is not the creditor. Bogus reinstatement. Who is really reinstating anything??? Borrower victims will take anything to stay in there homes. AG calls this a win??? No win here, victim remains a victim.

    Go back to the drawing board AG. You have not completed your job.

    New Year, my friends. New direction. Give up the old ideas — have gotten you no where.

    Servicers are not the creditor, and neither are security investors, neither are trustees to security investors, and neither are REMICs or any other receivable pass-through. THIS must be your focus.

    Start changing your direction. Start focusing where you should focus. Need to move on. Four years of nothing, since the financial crisis onset. NOTHING.

    TIME FOR CHANGE. No more rambling — LISTEN – rethink what you think you know. Focus on what is already the law. LISTEN.

  21. I think we should take out full page ads “Vote for sale” – any candidate that knocks out this foreclosure mess can have our votes . . . let’s see – 6-10 million homeowners willing to give their vote to a candidate (nobody cares what party anymore it’s all the same) we merely give our vote to the candidate, including our own Prez if he ceases this mess – otherwise we won’t give anyone the votes and vote some neutral indie just to take away from the candidates . . . or better yet let’s name an independent individual who will get a vote and screw up both sides – that’s even better this way we guarantee that no one who doesn’t resolve this issue gets voted in . . . we should use or votes as bargaining tools – or political weapons . . . ??? Let’s find a name – Matt perhaps??? Someone – anyone but the candidates spending millions of dollars to run around and not only lie but do nothing or say nothing about the real issues – let’s make each one of our votes count for something – that’s the only thing we each have of real value to those who are in control… A full page ad . . . we each donate a buck or two and circulate it – like the old fashion “Wanted” ads – “WANTED – Candidate who will end foreclosure mess – the Reward = our Vote”

    Happy New Year all!!

  22. Remember the $5 debit card fee proposed and then rescinded?
    Verizon just caved to a protest via petition of 130,000 signatures and backed off of a proposal to charge customers for online bill pay–a completely automated service! Seems they need capital since that deal with AT&T disentigrated because of govt.intervention.

    This is proof that we have clout we we join forces.

    If we could lobby congress like the banks can, there wouldn’t be any foreclosure crisis, and we’d be enjoying our holiday in our homes with hardly any stress or worry. There’d be no FEMA concertina wire on the fences, no guillotines, & our constitutional rights would be intact. Unelected, evil interests wouldn’t be inciting political unrest or pushing Russia toward WW 3, relying on the safety of their underground bunkers while the masses fry in the radiation on the surface because of their meddling. What cowards.

    A “Friend of the court” network is a brilliant idea, since so many of us lack the financial resources to hire a lawyer. Even when you have money to hire one, it seems hard to find one you feel has the right experience, who’ll work for what you can afford to pay. If we network, we might all benefit within a jurisdiction from some brilliant attorney’s work. Perhaps Neil is working on something like this.

    We are the power. We will prevail.

    Just imagine how wonderful life will be! Peace and prosperity. Laws unheld, justice enforced. Liberty suffocating laws repealed, freedom to live as you choose, where you choose without surveilance or unreasonable searches. Freedom to speak your mind without fear. Freedom to travel over the roads you helped pay for without having to submit to a plethora of unjust laws, fines and restrictions. Access to healthcare! A quality education without lifelong debt to pay for it. The freedom to choose whether or not you wear a seatbelt! Not having to pay for trash pick up if you want to recycle stuff yourself. Not having to register your burglar alarm. Not having to register your car! Not being told what to do, how to do it, when to do it…it’s been so long since we were truly free in constitutional terms, that we’ve forgotten what it’s like. We fought for these freedoms before and won. We must fight for them again and win. I believe in us as a people; we’re resourceful and capable and dedicated to the cause of freedom! Can you taste it?

  23. BSE, did you actually sue them? If not, a lawsuit might be a good idea. See if you can find an attorney who will take monthly payments.

  24. If you loose -Just remember the servicer will try to sue you for attorney fees. AGs in AZ do not help. Federal Judges do not care about home owners deflated neighborhoods and upside down over $200 K. I fought for 3 years..Got nowhere. Now forced into BK. Now servicer says Deed of Trust secures attorney fees. Bull Shit ! Still in the fight !!!!They apply pressure so you walk away. If you are still in your house you are still screwed by the scam, Do not expect any apprecation for years and no equity to build. Mortgage Payments are all for nothing,
    The Banks and Government had the scam figured out back in 1999….

  25. @Dee and Colleen,

    There you go! That’s exactly what we all need to do: find out what is common among ourselves and help each others within the same jurisdictions. What works in OH or MA doesn’t necessarily work in GA or NY. The systems are way too different to be able to be everything for everyone.

    By finding our own, we can really unite and become effective in that battle. And then, we can report here.

    Happy New Year.

  26. dee,
    glad to help. Being we’re in the same state, I bet we could help each other. Send me your email so we can see what we know cause I know people in the Houston area.Let me know.

  27. Hope everyone here has a safe and blessed New Years.Fight the good fight and never give up.

  28. @Dee,

    I’m happy that you’ve just found a precedent (did you see that it was ruled on on 12/22/11? That thing is going to be played on a case-by-case and state-by-state basis. Hence the need to individually keep informing ourselves all the time).

    I hope it really helps you prevail.

    Happy New Year and the best for 2012!!!

  29. @Enraged & Colleen

    Thank you for responding this case gives me the information I needed.
    I agree with you enraged if attorneys who are interested in helping homeowner’s would form some type network like fannie and freddie has that would be helpfully to us homeowner’s throughout the country.

  30. @Iwantmynpv,

    That’s what people need here: guidance on how to proceed, what works, what doesn’t. There are cases when it still will not work because the judges don’t :get it”, the attorneys don’t “get it”, the homeowners were too sloppy with their paperwork to accumulate decent documents (unfortunately, it happens a lot) or waited too long to act but, in the end and with regular coaching, we’ll get there.

    I keep advocating to stop paying all the mortages and close bank accounts with anyone having benefited from the bailouts and/or profitting from foreclosures. Again, that would be the fast and furious solution but… fear is something real, even though people don’t realize that their biggest one will not come to fruition while ignoring real solutions (even though they seem unconscionable for honest people)will cost them everything.

    We’ll get there. I have no doubt about it. One homeowner at a time.

  31. @enraged That is exactly what I have done to my Lender. Homeowners need to be taught that they can win. I am trying to get attorneys in NY to start taking monthly payments and even volunteer time to do the research to keep the fees reasonable.

    We don’t need to sue them to bankruptcy, we just need to pull our assets from every angle and than short them in oblivion. The FRC could not, or would not print fast enough and we replace them all with State Chartered banks. We go back to the newly converted bank holding companies and give them the decision – you want to eb an investment bank or commercial. if they choose commercial we do the same thing to them – if they choose investment we all notify companies and municipalities seeking capital that we will cease doing business with them, or buy their products if they use the Casino Banks to raise capital.

  32. I got into a similar problem with a different servicer 3 years ago: I missed one payment, was given an agreement to sign, in order to repay over the course of a year. That agreement clearly stated that it would take care of all late fees and the missed payment, so long as I never paid after a certain date. I complied but still was assessed additional late fees and charges. By the time I was done with that repayment plan, I still owed in excess of $4,000!!!

    To top it off, the servicer started “losing” subsequent payments and adding more fees. I ended up writing to the AG, BBB and moving hell. The AG didn’t do much. BBB was successful in getting the servicer to refund some of the late fees. In the end, I had to get an attorney to straighten it out. Come to realize, most of the money was placed in “suspense accounts” (read: pocketed by the servicer and never applied to my loan).

    Is this any wonder I ended up suing the servicer and I stopped paying altogether?

    We don’t have time to play games with servicers. I wouldn’t even advise anyone to waste it contacting anyone in the face of such bad faith. if you can find a good attorney where you live, work out a monthly/contingency fee agreement and invest the monthly mortgage payment into it rather than pay the servicer. Those guys don’t understand anything other than lawsuits. Until everyone has filed one, nothing will be done by our government.

    We may never see prosecutions but we can force banks into bankruptcy by systematically suing. Keep in mind that, while we may be able to retain defense attorneys for reasonable fees (I know: it’s still not common grand everywhere but progress is being made…), servicers pay anywhere between $500 to $1,200/hr for their attorneys. Doesn’t take long for them to “eat” the whole house in legal fees. Eventually, it becomes an economic decision for them: is it more financially sound to sue the homeowner or call the “debt” a loss?

    And we’ve already paid over and over anyway!

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