Az AG Takes Aim at Secret Settlements with Homeowners

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Editor’s Comment: I’ve been telling people for years that the same banks that use ridicule and derision to characterize the arguments of homeowners who defend their homes — then turnaround and enter into settlements that are sealed with confidentiality (as usual they don’t call them that, they instead use the term “non-disparagement clauses” —- but only after there is a real risk that the Bank will need to show the actual transactions through which they claim to have the right to foreclose. Those transactions do not exist. And it is has taken a long time for anyone, much less a majority of people in the justice system, to realize that fact.

Most people who heard me say that thought that I was exaggerating or even making it up. So now it is somewhat comforting to have it recognized by an attorney general and to have him inquire. The promise of confidentiality has teeth. breach it, and the Bank says they own your property and you have waived all defenses.

Now the Arizona Attorney General is taking the position that these sealed settlements represent areas of inquiry that should be open for his continuing investigation into the misbehavior of the banks (a euphemism for criminal acts). He’s probably right, although the chilling effect on those settlements is bound to cause a stir.

It is challenging to quantify, but it would appear that such settlements from all the major players number in the tens of thousands now. The point being made by the Az Attorney general, I think, is that if the there was no case there should have been no foreclosure and everyone should be given the same treatment.

From my sources, who must remain anonymous for obvious reasons, the settlements generally look like this: 40%-75% correction of principal on the loan, forgiveness of all missed payments including taxes, payment of attorney fees and sometimes payment of damages. The new loan, which is adjusted on the unrecorded note is set at 2-3% interest with 30-40 year amortization.

While this is irresistible to many homeowners who are weary from fighting the bank, it still leaves them with a title problem down the road when they seek to sell or refinance — because the very reason the Bank is settling is the same reason why they have no actual authority to settle or satisfy the mortgage once it is deemed paid in full. Thus it is important in those settlements to get a court order quieting title at the time of settlement because if you wait, the players may vanish into oblivion.

Worse yet, the AG could take the position that the settlement was collusion to continue corrupting the title registry in each of the counties of the state.

SEE FULL STORY ON HOUSING WIRE

as the nation focuses on the proposed foreclosure settlement, Arizona’s attorney general takes aim at the mortgage modification practices of Bank of America. Bloomberg Businessweek reports the bank negotiated at least 12 secret settlements with borrowers that include nondispargement clauses. Arizona AG Thomas Horne asked a judge to block the nondisparagement clauses. Bank attorneys deny the settlements have hindered the AG’s probe. The AG investigation is part of a 2010 lawsuit against the bank, and a court hearing is set for Feb. 1.

56 Responses

  1. @EVOL

    I hope that your state came up as pne of the lucky few: Nevada, California, Arizona, New York, Massachusets, maybe Michigan, maybe Florida. I am going to build a post that will give links to the current state of the states–current or past and abandoned investigations by State AGs aka wonna be Governors–then Senators.

    Today’s WSJ also bore extensive coverage that also indicated that these were the worst hit states. Interestingly the lead story was about an individual Claudio Fernandez, who had to give up two rental properties he had acquired as a middle class guy—lots of such. At cost of $50k. Not usually the type depicted—but he will get relief in the form of lowered interest rates under the newest “announced” Obama program. Sufficient numbers of foreclosures using predatory practices– relying upon the lasting effects on credit stability of broker-inflated housing prices—in these states makes it a political issue. Something the press cares about. From WSJ readers’ perspective–this is the sort of thing that might gnaw at them as housing prices are driven down–except that many landlords enjoy increased prices themselves outside the aflicted areas. On the other hand a middle class non-professional landlord becomes anchored to underwater rental units.

    Further, I think it is of importance to post a mailing list of federal committees and chairmen of investigation subcommittees with a framework letter that expresses the types of origination and collection agency bad behavior.

    Simialr at the state level–some large cities are also invilved due to declining tax base and maintenace-security issues a la Cleveland. MORE ?

    The several new Task Forces. Question is how many staff. A lot. I hope that there is a sizable chunk of their settlement to hire staff–but I fear the quality. There are supposedly hundreds of investigators , attornies and forensic accountants burning up the bankruptcy estate’s and taxpayer dollars crawling over MF GLobals theft of $1.2 billion–and concluding that the money just “evaporated” –while at the same time noting its held in offshore operations that cannot be forced to give it back. It is scary–if they follow widely in a downturn they will push millions more into the street of downsized 50 somethings.

    They need simplied and somewhat uniform information to properly evaluate your claims and compare them to others to establish evidence of a pattern of illicit conduct. You are not pleading a case demanding standing, these are by information and belief and the victims may be others. Eg investors.

    was it predatory loan origination
    was it abuse of legal process–documentation
    was it abuse of legal process–interference with attorney
    was it Abuse of Obama-offered programs by “collection agencies”
    was it abuse of sale process that diminished the ultimate price paid by a related party buyer
    has there any federal [FDIC a la BankUnited], FHA/HUD or other insurance claim issue raised or observed

  2. @EVOL in re govt investigations

    I dont want to beat a dead horse but Im sitting here reading about the biggest actual ongoing investigation by the US govt in recent times as set out in the Wall Street Journal Front page today January 30, 2012.

    “Nearly three months after MF Global [run by Jon Corzine ex Goldman CEO and GOVERNOR of NJ and SENATOR ]—-collapsed, officials hunting for $1.2 billion in missing customer money increasingly believe that much of it might never be recovered…”

    Now this is pretty much unchanged from day 2 of that fiasco. The missing customer mone was illegally transferred from the customers’ brokerage accounts–like your 401K or IRA accounts EVOL et al….then shipped to London and lost in offshore trading as best I can infer from weeks of article review here and in Europe. But the NEW comments that are out today take the cake,

    “As the sprawing probe that includes regulators, criminal and congressional investigators, and court-appointed trustees grinds on, the findings so far suggest that a ‘significant amount’ of the money could have ‘VAPORIZED’ as a result of chaotic trading at MF Global during the week before the the company’s Oct 31 bankruptcy filing, said a person close to the investigation”

    Now that is the 1st time that I ever heard of money–client money–like our IRA money–being stolen and then simply “vaporizing”. Of course you cant find money that has “vaporized”. There are a few clues–while the money was being “vaporized” Corzine was shopping for castles on the Riviera. Literally–unabashadly–unashamedly–fearlessly.

    all the kings horses and all the kings men cant find “vaporized” money.

    It is hard to suggest with a straight face that there exists a stable retirement investment system if your pension money can be stolen and become “vaporized” –by a high profile financier——former Governor and former Senator———-its bad enough when they seize your house with thin claim of right—but now this amounts to an open season on your pension monies. Why? Aside from the obvious “vaporized” comment—-CORZINE has not been charged, detained, has a complete memory lapse—–and no doubt they still call him SIR and MR GOVERNOR.

  3. http://stopforeclosurefraud.com/2012/01/27/breaking-obama-administration-and-banks-near-deal-on-mortgage-fraud-legal-liability/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+ForeclosureFraudByDinsfla+%28FORECLOSURE+FRAUD+%7C+by+DinSFLA%29

    This seems to be the extent to which the AGs have focused on issues–attending meetings–getting headlines—going to skim the pot for internal budget money because the have none–because they abandon escheats to collection agencies routinely.

  4. @EVOL
    No I dont work for a bank. I am a retired person who has done some work involving federal investigation methodology over in recent years

    . Every day last week every news-article reported the list–rather a handful of states that are making noises–Im sure you have seen them. NY–MASS–CAL–ARIZ–NEV–FLA—————THERE HAD BEEN a couple lawsuits filed in OHIO that got the former AGs hedlines but never went anywhere. Having said the foregoing—NEV is the only one that has actually charged anyone–to my knowledge. It is very hard to see through the smoke in an election year——–AGs love headlines –but seem very slow to act–if at all.

    Your federal consumer protection agency is now run by one of those Ohio AGs—I hope that he does more at the Fed level than he ACTUALLY did in Ohio–but Im not holding my breath.

    The reason that I tiered the list–was to try to separate the wheat from the chaff———–Ie really the term “list” to my knowledge is a misnomer–only Nevada has actually done prosecution-style investigations resulting in charges–unfortunately the unexpected suspicious death of their star witness put a stick in their spokes.

    If I have failed to include or properly classify any state AG–I apologize to them in advance–and hope some others might add to this explanation.

  5. @ DCB

    You say the list is “fairly well publicized”, but guess what?

    I DON’T HAVE IT, OR I WOULDN’T BE ASKING FOR IT!!! 😎

    If it’s so well publicized, I assume that means you have the list, but you just won’t give it to ME?!?!

    You do realize, that you just told me that the list I can’t find is easy to obtain, and you go into great detail opining on the sequence I should follow once I have the list, but you won’t give me the list so I can follow the sequence you suggest?

    HMMMMMM….you don’t work for a BANK, do you? 😉

    BTW, that does not address MERS, either.

  6. @evoldog
    The list is fairly publicized. The question is how many states have obtained guilty pleas?

    Next how/who has been indicted?

    Next officially announced investigations–usually involving subpoenas to look at target’s or 3rd party records.

    Next would be investigations that are in a preliminary stage of reviewing conduct based on records of events and documents accumulated through private civil litigation–something to which Federal Reserve report alluded—enforcement of law by private civil action.
    Call this an “open file” -lowest level of investigation–maybe resources looking at it maybe not. Prosecuters are elected officials. They are motivated by voters which are motivated by press. Press has the open files too. The role is for the info to go to enforcement types,[your AG, cc: legislative types–such as chairmen of investigatory committees——–then press—so letter to your AG, one page summary, cc LOCAL Prosecuter, STATE AND FED Committee chairs on investgative committees [im not sure that there always will be a committee of this type a state level–they may be adhoc–but above all keep giving the press help—press-writers like to come up with scoops—tangible and NEW—thats he word that appeals to them–thing is they like to gather up info confirm—the press is your salvation.

    If you want to force the state AG to “open a file” and take official notice, then join them as a defendant in your case under the state escheat statute and then count the dollars they give the collection agencies out of the state’s pocket–through abandoned escheats in defiance of statute. This is both the economic and legal result of the worst collection agency avoidance of normal filing processes and procedures–robo-signing being one example. Disconnects between collection agency and trust records is another–if the two are out of synch–its indicative that the collection agency is merely “using” a bank name–and not accountable to the trustee. Standing issue etc. who and how many does the lawyer represent?

    Count the states that file motions to dismiss w/o investigation and give that to the press.

  7. @ Trespass Unwanted

    Thanks for that, and it gives what I need for Texas, but ideally, if ANYONE can provide a comprehensive list of ALL of all the state AG’s that are pursuing investigations and/or actually filing charges (preferably those that are actually filing charges) and what the charges are I’d greatly appreciate it:

    **********I’d like a list of all the state AGs taking action.***********

    With that info, I can look up my state’s version of the same laws, and if we have pretty much the same laws on our books, I can point-blank ask my state’s AG why he is not prosecuting crimes his counterparts with the same laws, have found to be actionable in their states. If he has no good (legal) answer, I will file a writ of mandamus seeking to compel him to investigate/prosecute. While he does have some discretion, it is not absolute, and I believe application for the writ will force a trial on the issues and determine whether or not he is required to act, and if he is, to compel him to do so.

    If a crime is being or has been committed against the state, it’s his JOB to prosecute, and IMHO, especially something of this nature that is on such a massive scale – I don’t see how he could claim it wasn’t worth going after, or that it did not rise to the level of protecting the public interest.

    Obviously, if it works in my state, it likely would in other states. Even if an agreement is made by the AG prior to filing a writ of mandamus, application for a writ of prohibition may serve the same purpose in reversing an such agreement and again, forcing a trial on the issues to determine if the AG should be compelled to investigate/prosecute.

    So, if there is a list of the AG’s that are doing so, I’d love to have it.

    Same thing with any officials (here it’s the superior court clerk in each county) who are going after MERS for the filing fees – I may similarly be able to compel the clerks in our state to do so, possibly w/me as co-plaintiff, as a taxpayer.

    In the MERS vein, I’m also interested in any class action suits that may have been brought by taxpayers and/or public officials.

    So, what I need is:

    1. A list of all state AGs that are investigating and/or prosecuting,
    2. A list of state officials that are going after MERS;
    3. A list of class actions filed by officials/taxpayers in each state.
    4. And/or a list of taxpayer class actions brought against MERS in each state.

  8. It is an international problem–same players caused irish and greek problems as us—–and same players are profiting by buying up the wrackage on the cheap–think BankUnited

    “For example Ireland’s loosely regulated banks borrowed heavily and loaned out money freely for speculative real estate projects. When the real estate market collapsed and the loans were not paid back, the Irish government had to step in to guarantee the bank’s bonds — and quickly went broke. Ireland had a very low debt level of only 25 percent of annual economic output in 2007. As bank losses moved to the government’s balance sheet, by 2011 debt hit 106 percent of annual GDP. The country remains on EU-IMF life support.” http://www.democratandchronicle.com/usatoday/article/38446403?odyssey=obinsite

  9. 60% of Multi-State Settlement Money turned down by Kamala Harris—now let’s see if she sticks to it since Schneiderman has caved already by last Friday nite!! Just 3 days after the State of the Union Speech by Obama

    http://www.scribd.com/doc/79758097/HAS-BIONDI-OF-FLORIDA-SOLD-OUT-HER-PEOPLE-California-AG-Harris-Turned-Down-a-Guaranteed-60-of-the-monies-in-the-multi-state-foreclosure-settleme

  10. @jg,

    If you listen to Mandelam’s interviews, several attorneys have already said that, as a routing, they inform plaintiff’s attorneys that, should they persist with their fraudulent and unsubstantiated actions, they would file for sanctions and go all the way to disbarrement. Marc Dann (or was it Matt Weifner? I keep mixing them) mentioned getting dismissals that way.

    We’ll see that more and more and we need to make sure to tell our own attorneys that’s what we want. A win and sanctions, even of we must invest and file for them after the win. Better money we’ll ever invest.

  11. When will the decision come down, ANONYMOUS?

  12. Focus on NJ Supreme Court case decision — about to come down. Most important. Federal law preempts state law when conflict exists. Need to see what NJ does. TILA Amendment — will it preempt NJ Fair Foreclosure Act — as it should — or will NJ Supreme Court ignore the TILA in entirety? If so, when will the next step to US Supreme Court happen?.

  13. @joann et al – I just finished reading that FL SC decision. Everyone wants to watch this case and better yet, borrow its arguments at the trial court level. (pacer, pacer, pacer). If they were good enough to get BONY worried enough to dismiss, they must be pretty good and the same bull being attempted in that case is 99% the same bull in our cases. Those arguments could be a gift horse and we shouldn’t let them go if there’s time to make them in our own cases.
    Bony filed f/c action against Pimo. Pimo said eat a rock. Eventually, Pimo filed a mtn for sanctions against BONY for the filing of a false assignment. (yeehaw! Bring those EH singers back in for another round of ‘oh happy days’ – and if you’re having a bad hair day, it may lift you up – it IS happy) BONY filed a voluntary dismissal of its action. (gee, imagine that) Pimo said NO way, Jose.
    5 mos later, shock, BONY was back after Pimo and his hearth.

    For one thing, there is no ‘adjudication on the merits’ when an action
    is voluntarity dismissed (that’s why they are able to come back at
    Pino five mos. later, but really the argument can be ‘were you lying then or are you lying now, BONY? because BONY will have
    “re-grouped”) No AOTM, no res judicata (basically the thing decided can’t be re-litigated). BONY knows this and that’s the second reason for the voluntary dismissal. The biggest of course was to dodge the sanctions it apparently had coming for fraud on the court.
    Under the auspicies of another question (and it’s not insignificant) the court, whether it’s the SC or the one it’s handed back down to, will be ruling on a very important issue which boils down to “Can a party avoid the consequences of fraud on the court by voluntarily dismissing its action?”
    P. 3 has the actual question certified to be “one of great public importance”.
    The take-away right now for me is that it appears the lower court,some court, any court in this country is recognizing FRAUD on the court and it’s being called what it is, so hallejulah and pass the ammo. Really.

    Joann’s link to the decision is below.

  14. @joann- got it. thanks. I filed it under “FL SC won’t settle wants
    adjudication”. I wish I could fast forward and see the ultimate ruling because to me, it will say who the members of that court are and want to be.

  15. I can not find my $ 2.00 donation :

    http://www.opensecrets.org/orgs/list.php?order=A

  16. BOOM! FLA 2ND DCA REQUIRES BANKS TO FOLLOW THE RULES (AGAIN)!

    January 27th, 2012 | Author: Matthew D. Weidner, Esq.

    aw.com/blog/2012/01/boom-fla-2nd-dca-requires-banks-to-follow-the-rules-again/

    So here’s the deal…let’s call it like one of the oldest principles of American law:

    YOU CANNOT SUE SOMEONE UNTIL YOU HAVE THE RIGHT TO SUE!

    WHOA! Stop the presses on that one! That’s the whole deal. That’s kind of a fundamental, but that’s a concept that’s been just totally ignored by the banksters in their rush to kick and beat up Americans. (Remember, the people that bailed them out.)

    So anywhoo, Florida’s Second District Court of Appeals has consistently played by one set of rules….it’s called the Rule of Law…this just means that the court does not apply one set of rules and law to foreclosure cases, ignoring hundreds of years of substantive law because “it’s just foreclosure”. No, Florida’s Second District Court of Appeals once again tells us, we’re all equal under the law we apply in this court….

    CONGRATULATIONS JACKIE MACK!

    A cause of action must be complete before a party files a lawsuit. See
    Trawick, Fla. Prac. and Proc., § 14:8 (2010 ed.); see also § 95.031(1), Fla. Stat. (2009).
    Thus, even if U.S. Bank had properly amended its complaint to travel on the original
    note endorsed in blank, it would have needed to prove the endorsement in blank was
    effectuated before the lawsuit was filed.
    feltus
    http://mattweidnerlaw.com/blog/wp-content/uploads/2012/01/feltus.pdf

  17. You are so right Niel. We would accept the mod if they would guarantee clear title and they wont.

    I just lost my UD in CA Superior Court pcu20110515 because the judge refused to implement ccp 764-010 based on ccp 85 and 86 sections for bad lien, he denied my move to strike limited case filing and refused to entertain quiet title because we did not tender the amount owed (denied my tender with the BK7). We will get you a copy of the order when we receive it if you like.

    Thinking of making an offer to buy the house from the usurpers at market but we are sure they will not deal since we will require a quiet title at sale.

  18. I understand people taking a deal like this.
    Another short term fix.
    Then you may as well emigrate to Nigeria
    or any other banana republic of your choice.
    The true financial correction has still not arrived.
    10% times whichever multiplier you care to choose.
    Unemployment at 50%.
    Property down another 50%
    Stagflation or hyperinflation,neither a nice choice..
    Rioting in the streets.
    Maybe the Mayans were’nt so stupid , there
    timing maybe a year premature.

  19. johngault, on January 27, 2012 at 9:53 pm said:

    @joann – if you find a link to that FL case, I’d sure like it. thanks

    Pino v. The Bank of New York, No. SC11-697

    http://www.floridasupremecourt.org/decisions/2011/sc11-697.pdf

    I posted a link to livinglies (search on Pino) on the same case and a link to Weidner but you can’t post more than one or two links it seems.

  20. @ Enraged, I’d be happy to help you BOLD, but I just wrote the code and yet you can’t see it. So how can I show you other than in email if it won’t show up here?

    I can even teach you to make words look FAST \ like race cars.

  21. investigators jobs were given to attorneys

    if you are an subject matter expert [SME]—then you do the investigation—–yes i do scan—-i do fill in blank spots–probe for gaps—-intuiter——i was trained as a scientist—-scan facts—theory then test against all facts—its a method of approach—it is necessary where you see brief glimses of concealed conduct

    when talking about financial fraud–someties it is helpful to have experience in observing fraud in motion on a large scale—admittedly this recent stuff takes the cake—-but there have been many fraud schemes of all sorts going on for my whole life—when i was engaged in investigative analysis–using machines to search it out —i learned some added skills –not necessary to be an atty to be sure but it helped identify frauds ancillar to the core stuff you are looking at–like your little insurance deal–core logic

  22. @E.Toile,

    I’ll have to save that post and study it now, won’t it?

    Thanks. I want to bold so baaaaaaad and not capitalize!

  23. @ Enraged, aren’t you’re bold enough as is? 🙂

    If you don’t get the html explained below, post your email and I’ll explain it privately. I can’t post it as html here ‘cause it won’t show up…..

    http://en.support.wordpress.com/code/#html-tags

  24. @DCB,

    I know how you feel. Believe me, I know!

    We get over it and keep fighting or we don’t and we get crushed.

    One of my biggest pet peeves has been that investigators jobs were given to attorneys. Investigators knew what to look for, where to look for it and how to get answers. Remember Perry Mason relying on Paul? There was a reason for that.

    It’s been changed. We need to adjust and move on. But we also need to educate. Doesn’t matter if we are Perry Mason or Paul. Team work requires we put it all in the open and people use it and prevail or don’t use it and lose. Their choice.

  25. “Old fashioned and overwhelmed “———–you would not believe me if i were able to tell you how much im overwhelmed–my sense and sensibilities———forget about $$$$—they are shredding the 1st and 4th amendments

    simply stating facts in court filings is now alleged to be disparagement—think about that very carefully as our lesson for the day—–i

    keep thinking there will be a line drawn—but no—-i appear to be a test case—a ginea pig—everything that happens to me has been and will be used on thousands—i wish it were paranoia-im ahead of the curve–i turned up the robo-signing in september 2009–the press held it back until election–voters cant remember more than 2-3 weeks–they like stuff fresh–so that works against you

    its fairly easy if you have background in investigation to do it—but the extraordinary extent to which they will go is inconceivable to me–every time i see a filing –i am surprised at the over-reaching

  26. Boy that just rattles my cage. You insensitive asswipe. The largest global fraud scheme breaking wide open, right in front of our eyes. Had to happpen soon or later. No meaningful investigation, not even any investagative reporting, except 60 min. and a few others. And right in time for a presidential election. There is no amount of money that can replace what we have lost. Marriages, kids, peace of mind,
    smeared as “Deadbeats”, per AG Pam Bondi, just a long long list of abuses suffered by the VICTIMS of this CRIME(S) in some cases, their health and even their lives, money, it has intwined with our insurance policies and hundreds of years of land records. I could go on but I think you get the picture. If you don’t then maybe someone could draw one for you. How about that for disparaging talk? Now wonder the rest of the world hates us. Michele, this is the first time in my adult life that I am ashamed to be an American. Bought and sold. We now are absolutely sure who runs this country. Want me to draw you another picture asswipe?

  27. DCB,

    You’re really cute, for a retired lawyer trying to hip it up on deregulated regulation. You don’t thoroughly read, you draw conclusions before you’re done but, I swear, you’re really endearing. Old fashioned and overwhelmed but awfully cute! Isn’t that awful to have learned and practiced ethics and realize that they flew off the window years ago and you never saw it happen?

    I lived through it as they were flying off the window. I learnede cynicism. Not a great place to be.

    You’ve read other posts. So, you know by now that

    1) I’ve never worked for a title agency;
    2) I learned everything I know about calculating damages from AIG;
    3) I got screwed like everyone here. Rather than wait to be foreclosed on, I figured I would go on the attack and use what I know;
    4) Going on the attack means serious homework beforehand and questioning everything. I’ve asked a slew of questions here and never got answers. It’s ok. I can do my own legwork;
    5) I’ll be damned if my work serves no one else. I’ll share ’til everyone who wants to has been properly compensated;
    6) I won’t shove it down anyone’s throat.

    There are things I still don’t know. As soon as I learn, I’ll let everyone on it. Such as… CoreLogic. That one really irks me.

  28. @joann – if you find a link to that FL case, I’d sure like it. thanks

  29. They never stopped giving me work. Isn’t that something? And that, to show people that it is absolutely not true that, if you sue a client, it will cost you a lot more in the long run–i do not know who you are referring to——i do not see everything in these strings

  30. Florida Supreme Court refused to dismiss this case even though the parties settled and requested dismissal.

    Pino v. The Bank of New York, No. SC11-697

    “It cannot be questioned that our well-established precedent authorizes this Court to exercise its discretion to deny the requested dismissal of a review proceeding, even where both parties to the action agree to the dismissal in light of an agreed-upon settlement. The question certified to us by the Fourth District Court of Appeal in this case transcends the individual parties to this action because it has the potential to impact the mortgage foreclosure crisis throughout this state and is one on which Florida’s trial courts and litigants need guidance. The legal issue also has implications beyond mortgage foreclosure actions. Because we agree with the Fourth District that this issue is indeed one of great public importance and in need of resolution by this Court, we deny the parties’ request to dismiss this proceeding.”

  31. @enraged
    I thought you had stated you were working for them—i thought earlier you stated you worked for insurer—i was thinking title insurance—but so many sort of names on here–hard to keep track —maybe more than one enraged for all i know

    whatever–its really beside the point–i was just trying to put your comments in context–no offese intended

  32. @E. Toile,

    You bet! And while everything was whirling around me, people were making and losing money hand over fist, I’m still the unemployed drunk.

    Did you hear, President Obama? We have a serious problem of underclass ignorance in this country! Can you make it one of your priorities as well? We’ve been paying taxes for… ever, to resolve it. The “no child left behind” thing was a failure. Got any idea? No? I got plenty. Want to hear them?

    In the meantime, E. Toile, how do you bold on this site? Took me a while to figure out the smily face (on my own, thank you for your help!) How do you BOLD???

  33. @DCB,

    “You worked for the title company? Right?”

    You really crack me up. Where did you get that from?
    A true lawyer. You don’t read anything, you “scan through” and then, you draw conclusions. Erroneous, at best.

    Where on earth did you read that I ever worked for a title company?

    Am I wasting my time here?

  34. http://www.scribd.com/doc/79644173/Understanding-the-Securitization-of-Subprime-Mortgage

    anonymous – found this on a disk today and uploaded it just for you.

  35. How can the bank and debt collectors, whom have proven they were illegally foreclosing, left the state and had no authority to do business here, claim to authority to transfer the loans to someone else? Outrageous! They did not have authority nor standing so they have on authority nor standing to transfer either.

  36. RECONTRUST HAS WITHDRAWN FROM WASHINGTON STATE, DUE TO IT UNLAWFULLY FORECLOSED ON THOUSANDS OF HOMES AND HAS WA STATE AG COMPLAINT AGAINST THEM. OBJECT TO ANY TRANSFERS of authority to represent.“The program began receiving referrals to mediation on July 22nd. There were a number of substantial delays for the initial mediations, due to (1) lack of effective beneficiary contacts, (2) issues about DRC mediation agreements, and (3) Recon Trust withdrawal from the State of Washington. In many situations, the 45 day time line had to be “restarted” in order to accommodate these issues. As a result, we have only begun to see significant numbers of “Certified” results from our mediations in the last month or so – not enough to be statistically valid.

    Jesse Jones at King 5 has done several reports recently…although the stats weren’t necessarily correctly represented. We have just migrated to a new database and are working towards the reporting required by the legislature, which will be in session next week.”

    .

  37. problem was she watered the drinks so heavily that they did not meet the UCC sales standatd for marketable merchandise.

  38. @ENRAGED
    You worked for the title company? Right?

    It rreally doesnt matter unilateral or bilateral—you are hardly out searching for the servicer to speek ill of you—–its the freedom to speak to press–to internet sites like this—silence impairs comparing of notes–it affects your 1st amendment and 4th amendment rights to prepare a case –due process–investigate

    As to lawsuits–normal companies want to avoid lawsuits –do cost beneft analyses.

    Over about 3 decades I have seen other instances of unusually aggressive behavior. Usually the worst is bigco pounding on some private person that “gets in the way” or that catches bigco in a bad act.

    However, and it goes to criminal behavior–which i have observed all too often in different contexts—-the WORST CRIMINALS are the most brazen. I have seen instances where outright crooks engaged in extortion —tax evasion etc——get bad press and sue the newspaper–keep pushing on the suit right up till the trial wherein they are found guilty.

    it takes brass to be a real crook–think of the various mafia figures—they get wrapped up in their own aggrandized self-image—and /or buy time which is money–spending a cheap currency–bravado.

  39. The laws of economics for the drinker and banks

    Helga is the proprietor of a bar.

    She realizes that virtually all of her customers are unemployed alcoholics and, as such, can no longer afford to patronize her bar.
    To solve this problem, she comes up with a new marketing plan that allows her customers to drink now, but pay later.

    Helga keeps track of the drinks consumed on a ledger (thereby granting the customers’ loans). Word gets around about Helga’s “drink now, pay later” marketing strategy and, as a result, increasing numbers of customers flood into Helga’s bar.

    Soon she has the largest sales volume for any bar in town.

    By providing her customers freedom from immediate payment demands, Helga gets no resistance when, at regular intervals, she substantially increases her prices for wine and beer, the most consumed beverages. Consequently, Helga’s gross sales volume increases massively.

    A young and dynamic vice-president at the local bank recognizes that these customer debts constitute valuable future assets and increases Helga’s borrowing limit. He sees no reason for any undue concern, since

    he has the debts of the unemployed alcoholics as collateral!!!

    At the bank’s corporate headquarters, expert traders figure a way to make huge commissions, and transform these customer loans into DRINKBONDS.These “securities” then are bundled and traded on international securities markets.

    Naive investors don’t really understand that the securities being sold to them as “AA” “Secured Bonds” really are debts of unemployed alcoholics.

    Nevertheless, the bond prices continuously climb!!!, and the securities soon become

    the hottest-selling items for some of the nation’s leading brokerage houses.

    One day, even though the bond prices still are climbing, a risk manager at the original local bank decides that the time has come to demand payment on the debts incurred by the drinkers at Helga’s bar.

    He so informs Helga.

    Helga then demands payment from her alcoholic patrons, but being unemployed alcoholics they cannot pay back their drinking debts.
    Since Helga cannot fulfil her loan obligations she is forced into
    bankruptcy.

    The bar closes and Helga’s 11 employees lose their jobs.
    Overnight, DRINKBOND prices drop by 90%. The collapsed bond asset value destroys the bank’s liquidity and prevents it from issuing new loans, thus freezing credit and economic activity in the community.

    The suppliers of Helga’s bar had granted her generous payment extensions and had invested their firms’ pension funds in the BOND securities. They find they are now faced with having to write off her bad debt and with losing over 90% of the presumed value of the bonds.

    Her wine supplier also claims bankruptcy.

    closing the doors on a family business that had endured for three generations, her beer supplier is taken over by a competitor, who immediately closes the local plant and lays off 150 workers.

    Fortunately though, the bank, the brokerage houses and their
    respective executives are saved.

    and bailed out by a multibillion dollar no-strings attached cash infusion from the government.

    The funds required for this bailout are obtained by new taxes levied on employed, middle-class, non-drinkers who have never been in Helga’s bar.

    Now do you understand?

    http://reszatonline.wordpress.com/2012/01/25/the-laws-of-economics-for-the-drinker-and-banks/

  40. @evoldog1234
    https://www.oag.state.tx.us/oagNews/release.php?id=3500
    Read the letter, It names all the business, contract, constitution, trust laws, statutes, provisions, codes, etc..that were violated and also included the statement of fraud if they used a substitute trustee to do the foreclosure.

    Opinion
    ——————————————————————————–
    The settlement any settlement unless it’s full value plus damages, would not be equitable.

    The banks have the homes and the homeowners are homeless.

    I find it interesting: money.cnn.com/2012/01/27/news/economy/mortgage_meltdown/index.htm?iid=HP_LN
    “”(quoted last line of the article)””
    The big banks aren’t as keen to sign off on a multi-state deal that doesn’t include immunity from mortgage servicing lawsuits from California and New York, said a source familiar with the deals.

    Why wouldn’t someone investigate a business that seeks immunity to settle a claim? Stating the obvious here.

    Someone who’s spent several 10;s of thousands of dollars on their home in principal payments, not counting interest, and county taxes, school taxes, municipal taxes, homeowners association dues (that they could not or didn’t opt out of when purchasing the home), and the upkeep of the home, and the improvements and landscaping and sweat equity, established friendships, established community relationships, peacefully enjoying their right to property – free from unlawful seizure – cannot be satisfied by a $2000 settlement and the one who stole the home gets to keep it and not only did they have what you paid into it, but also what someone else pays into it from all you did that kept the house in a state where it was of value to live in for you and of value for them to steal so they could create fresh paperwork purportedly indicating a new tenant and giving them landlord status.

    additional opinion,

    This fraud cannot be unwound and anyone who cashes the check may be able to hire an attorney and sue, but I doubt if they’ll get class action status after cashing a settlement check, and I doubt they have the funds for an attorney to dig through all that paperwork and go to court over the fraud. If that was the case, we’d have saved our homes before we were kicked out of them.

    The reason for forcing us into court was to get final judgment anyway.

    Some people. You can’t tell them anything. They hear what they hear by divine right they can ignore the obvious. Sure they e-mail Neil to hold their hand…Neil..oh Neil if I cash the check..can I still sue?
    Sure, don’t worry. You can sue. Cashing the check doesn’t mean you can’t sue. Sure you can sue if you cash the check.

    Now think past that check and figure out what it will take to sue, how much time you have, how much money you have, how long you can keep an attorney on staff by the hour to go after the bank and, seriously; are you guaranteed a win when you do?

    If you lose, it’s final judgment..but at least you cashed the check.

    If you don’t cash the check, and you are in the situation where you were the rightful owner, you have a Grant Deed on file with your name on it, they are selling your home with Special Warranty Deeds or whater, then there is no settlement, that home is still yours, that title is still clouded, and they need to give you your home back plus penalties without immunity since they operated with impunity.

    Trespass Unwanted, corporeal, life, free, in jure propio, jure divino

  41. CITIZENS RALLY IN TALLAHASSEE AGAINST FORECLOSURE FRAUD, FEBRUARY 16, 2012
    January 27th, 2012 | Author: Matthew D. Weidner, Esq.
    Mortgage Justice Group, ForeclosureHamlet and 4closurefraud join Awake the State, the Coalition of Occupy Foreclosure Working Groups movement, and other groups across the nation to rally at the capital in Tallahassee for the annual FORECLOSURE AWARENESS DAY RALLY on Feb. 16, 2012. The rally is to bring awareness about illegal foreclosures and to stop the Florida legislature from making Florida a non-judicial state, thus denying citizens “due process” in court.

    Several Florida legislature bills, particularly HB 213 and the amended PCB, sponsored by Kathleen Passidomo backed by The Bankers Association, are attempting to make Florida a non-judicial state which would preclude homeowners from defending a foreclosure in order to “fast track” the foreclosure process, denying Floridians their day in court..

    FREE buses, traveling up both coasts of Florida, will pick up participants along the way to the capital. Rep. Scott Randolph, Rep. Darren Soto, attorney activist Matt Weidner, citizen activist Lisa Epstein and other nationally known speakers will be presenting new vital information about the foreclosure situation. Participants will be meeting with members of the legislature to express their objections to the bills.

    While other states like Nevada, Delaware and Massachusettes have begun investigating and prosecuting foreclosure fraud, some in the Florida legislature seem intent on speeding up the process, leaving homeowners displaced and often homeless. Close to 25% of children in Florida are living in motels and cars. Those fighting against the proposed bills feel this number will increase.

    Homeowners are facing continued frustration by the lack of assistance from any branch of government, the legislature, or the judicial system. Even homeowners not in foreclosure are struggling to cope with its effects on property values, decreasing community/school property tax-based revenue, deteriorating communities, and prolonged damage to our economy.

    For information about the FORECLOSURE AWARENESS DAY RALLY and to make a reservation for the free bus to Tallahassee contact mortgagejustice1@yahoo.com or call Betsy at 941 351-0452

  42. Be careful what you wish for…if the tide is indeed turning and more of us will be able to nail these suckers; beating down the hidden terms of the settlements too quickly could cause a backlash and drive the mortgage monster back into it’s lair – if it fears it’s about to lose everything, it will cease settling silently.

    But it’s still good news – kinda like being in the ever-so-unenviable-position of having to figure out how to get around the tax liability on a million dollar lottery ticket win…8-)

    BTW…can anyone provide me a concise list of the states, inclusive of the charges that their AG’s are going after these guys, for the actionable criminal charges that are on the books in most all states?

    I have a legal theory I want to test in my state and am prepared to act on it now…this info would save me a lot of research time, as would the applicable criminal statutes they’re working off of – I can pull the correlative ones in my state to work with and go from there.

    ,evoL
    doG

  43. @DCB,

    It’s always dangerous to sign anything unilateral, period. But what I find remarkable is that, rather than agree to be bound by the non disclosure/non disparagement, they were willing to take the chance that I might be talking out of turn about the case.

    And you want to hear what’s even funnier?

    They never stopped giving me work. Isn’t that something? And that, to show people that it is absolutely not true that, if you sue a client, it will cost you a lot more in the long run. Naw.

    In this country, suing is a national hobby! I think you’re expected to sue. Shows character and strength. Shows that you mean business. This country doesn’t like wusses. People who don’t fight are considered wusses who deserve what they got. To me, who didn’t grow up here, it’s mind boggling…

  44. My wife and I are currently engaged in litigation against BofA and CapOne, among others. At a court ordered settlement hearing, not only did their counsel fail to make any offers to achieve settlement, BofA’s counsel told us that should we “go public” in any way, her client “would be willing to dump in a couple hundred thousand more dollars” into the defense of the case. This after they removed us to federal court, and have done all they can to obfuscate, delay and bankrupt us in this case. It seems it’s OK to make threats if you’re a bank.

  45. @TH
    “AG doesn’t get to bully its way into those matters merely by virtue of position of authority.”

    I that not why we have AGs–to balance the weights?? God had to side with David to confront Goliath–was that unfair?

  46. @ENRAGED
    “non disparagement clauses “———–generally its safest to agree to not make up falsehoods–it is extremely dangerous to do an unlimited non-disparagement–you go to a cocktail party–drink a couple and say something vaguely critcal–you are in trouble–these days its difficult not to have the topic open up–the only safe thing with a true non-disparagement is to cut yourself off from this stuff and find a new avocation

    i think routine non-disparagemen clauses are per se against public policy—only in special cases–because they are traps and they will have stalkers on the internet watching you

  47. @usedkarguy,

    I don’t agree. If you wrote it as it is presented and written, I think there is a difference: if you recall, in the previous programs, the incentive was given to the servicers. In what you say today, the incentive is given to the “investors”. I think it is a big difference.

    Question though is… how will they find who the “investors” are…?

  48. @DCB,

    Funny that you would clarify it. A couple of years ago, I sued (pro se) a public agency for failure to pay me for my work. Of course, my tax dollars served to hire the biggest and most expensive law firm but that’s another topic.

    In any event, after the court denied their motion to dismiss, followed by a motion for summary judgment also denied, we were “strongly advised” by the judge to mediate. We settled amicably (I, for 3 times the amount they owed me) and the attorney presented me with a release denying any and all wrongdoing on the part of the agency and containing a unilateral non disclosure/non disparagement clause. I flat out refused to sign it unless they expressly agreed in writing, in that same release, to abide by the same rules. The attorney was livid and tried everything in the book to force me to sign the release as is, including threaten me to file some complaint with the court against me for failure to ratify a settlement I had willfully entered into. I held firm for two hours and… would you believe it? Rather than agree to my “unreasonable” demands, they finally redrafted the release and erased any and all mention of non disclosure/non disparagement.clause. Case closed.

    In all those cases, the non disclosure and non disparagement clauses are always unilateral. Why? Because people believe that they have to agree to them and cannot contest them. I’ve decided that, in order for me to sign any such clause, they better make it worth my while. My silence comes with a price.

  49. i continue to be amazed by the unmitigated gall of the editor of this site and in this case the AZ atty general. what right do you have to insert yourself into and potentially undo a settlement that was entered into voluntarily and knowingly by private parties? it’s quite frankly none of your damn business…

    part of the consideration for the settlement WAS the confidentiality and disparagement clauses. that’s what the defendant(s) paid for. the AG doesn’t get to bully its way into those matters merely by virtue of position of authority.

  50. Yeah but when you accept , they got your new signature to play with …. again and again.. No way.

  51. Just got this from DS News:

    Administration Announces Changes to HAMP
    The Obama administration has announced changes to its flagship foreclosure prevention initiative – the Home Affordable Modification Program (HAMP). Among the changes, borrowers who are struggling because of debt beyond their mortgage will be eligible for a secondary evaluation with more flexible debt-to-income criteria, and eligibility will be extended to investor-owned homes that are used as rental properties. The administration is also giving principal reductions a bigger role within the program, tripling incentives for investors that agree to write down an underwater borrower’s principal balance and offering these same incentives to the nation’s two biggest mortgage investors – Fannie Mae and Freddie Mac.

    MOTS (more of the same)

  52. “I’ve been telling people for years that the same banks that use ridicule and derision to characterize the arguments of homeowners who defend their homes — then turnaround and enter into settlements that are sealed with confidentiality (as usual they don’t call them that, they instead use the term “non-disparagement clauses””

    try both–two different things—confidentiality “i wont release the contents of this document”——-non-disparagement—-“i wont say anything about you that you dont like”—to be diferentiated from saying things thatr are not true–never sign a non-disparagement without substantial consideration—its a vital loss of 1st amendment rights–both of speaker and potential listeners–news–

  53. […] Link: Az AG Takes Aim at Secret Settlements with Homeowners […]

  54. Sir
    I thinkg the AG is right. If the title are still corrupt, he has the perfect right to investigate. If the AG makes alot of noise Obama will just create another Washington position for him to head.
    Stan
    Racine, WI

  55. 40%-75% correction of principal on the loan, forgiveness of all missed payments including taxes, payment of attorney fees and sometimes payment of damages. The new loan, which is adjusted on the unrecorded note is set at 2-3% interest with 30-40 year amortization…

    Hating the banks as much as anyone here and knowing what they did and caused to happen, i would be lying if i didnt say i would probably still accept this (to put it behind, makes the future much more secure and also not having to continue fighting the corruption that you have no control over)

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