Appraisal Fraud: The Real Deal exposed in Declining Market


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For assistance with presenting a case for wrongful foreclosure, please call 520-405-1688, customer service, who will put you in touch with an attorney in the states of Florida, California, Ohio, and Nevada. (NOTE: Chapter 11 may be easier than you think).

Editor’s Comments and Analysis: There is little doubt that but for the rapid increase in housing prices, many buyers would have done nothing. The pressure was on to get on the train before it left the station. You might be stuck in the position of never being able to afford a home.

What buyers (and investors didn’t know was that the appraisals were faked. In 2005 8,000 appraisers signed a petition to Congress to intervene because they were under pressure to allow for super charged values in their appraisals that would not withstand the test of time. They warned that the results would be catastrophic. Of course, Congress and the Bush administration did nothing despite 8,000 upstanding appraisers concerned about whether they could ever work again under the intimidation of the banks.

For reasons that defy logic, both pro se litigants and attorneys have steered clear of this claim, apparently under the mistaken impression that because the borrower paid for the appraisal, they owned it and their reliance on it was their own problem. In fact, the story goes, the borrower liked seeing the high appraisals. It made them feel good about the “deal” they were getting. None of that is a proper defense against appraisal fraud against the originator and all those who pretend to take title to the loan all the way up to the top of the pyramid where the loans are claimed to be authentic (which they are not) and where the REMIC trusts allow intermediaries to use their names in foreclosure action claiming the REMIC owns the loan (which they do not).

The Truth in Lending Act, and most statutes restricting deceptive lending refer to verification of the value of the property being the lender’s responsibility. The industry standard Appraisal Independence Requirement (AIR) states that the order must be placed by the lender, that just because you paid for it doesn’t mean it is your or you can use it for any other purpose, and that ownership of the appraisal report is with the lender not the person who eventually paid for it (the borrower).

Reliance on those appraisals by the Buyer is a natural, reasonable and intended consequence which the banks laid out in front of the buyer. The typical appraisal came in $20,000+ higher than the refi or sale of the property making everyone feel warm and cuddly at the time. The appraiser reluctantly in most cases complied with demands from the bank and after being showed the number required to close the deal, complied or face never working again.

As many homeowners found out, the appraisals were not based upon fair market value by an independent examiner who believed that the price would hold and was therefore a fair estimate of the range of value of the property. In many cases, people found out days or weeks after they closed the deal that homes in their neighborhood were being sold for far less than the deal they just made with the bank, leaving them underwater in a fraction of time usually allocated to evaluate the accuracy of the appraisal.

The manipulation of the appraisers led to manipulation of the appraisals which led to large scale manipulation of whole regional markets, hiding the fact that the appraisals were inflated by comparison to other similarly inflated appraisals on nearby equivalent property. Developers of planned communities were raising prices monthly as much as 10%-20%, to support the appearance of a rapidly rising market. Wall Street knew that the prices were far out of line because the most reliable indicator of general market prices — the Case Schiller Index — clearly showed that at no point since the index began in the 1880’s was their such a variance between housing prices and the ability (median wages) to pay for them.

The reason for the inflation of “value” was simple — Wall Street was running out of people to sell on taking loans so they inflated the value of the homes in order for them to move more money around and continue selling bogus mortgage bonds. Had they not done so, the crash would have come around 2004-2006 rather than in 2007-2008-2009. Investors would have stopped the gush of money into mortgage bonds and the PONZI scheme would have collapsed then instead of a little later.

So you have “lenders” right along sellers, selling the borrower on the value of the property to complete the deal. Buyers and people refinancing their homes don’t know what appraisers and banks know about verifying values. So they reasonably rely upon representations from the “lender” as to the value of the property. Of course the lender isn’t really the lender and the value isn’t as stated.

This is one of the reasons the REMICs didn’t show up on the notes and mortgages. Wall Street inserted “bankruptcy remote” vehicles to sit as surrogates or nominees of the real lenders who were advancing money in order to insulate the investor lenders from potential liability and to insulate the banks from potential liability.

The homeowner is entitled to receive just compensation for a false appraisal and false representations that the appraisal has been verified by the lender. Neither representations contained in the appraisal nor the representations of verification by the “bank” lender were true. Had the borrower known this, and especially had the borrower known that the lender had an interest in only closing the loan without any risk of loss, the borrower would have an opportunity to ask questions about who he was really dealing with and then make a choice as to which lender he really wanted to do business with. This is fundamental guarantee of the Truth in Lending Act — to give the borrower enough information that they can make an informed choice of one deal over another.

To the extent that the borrower was injured by the failure to disclose the reality of the situation, the borrower should be able to receive the financial damage caused by the misrepresentation. tot he extent that the act was intentional by the “lender” and all the participants up the faked securitization chain, they should also be liable for punitive or exemplary damages under both common law, and state and Federal Statutes.

Below is an article written by Dione Spiteri who founded US Appraisal Group ten years ago “on the principle that everyone deserves to have a positive appraisal experience and to increase confidence in the appraisal management experience overall.” I suspect she might be an excellent referral source for expert appraisers to look at those appraisals from 2001-present and give their opinions as to whether industry standards were followed and if not, why not.

Following are top tips consumers should know about appraisals:

  1. The person ordering the appraisal, not the person paying for the appraisal, owns the appraisal report.
  2. Research sales in the market area and consult with local realtors. Feel free to give the information to the appraiser and understand that the appraiser will always consider the data, but may use different data in the report if it is deemed to be more relevant or recent.
  3. Understand that appraisers cannot communicate values, fees, or discuss the appraisal with you at any time when the order was placed by your lender.
  4. Understand that if there are foreclosures and short sales in your market area, your home may compete with them for buyers in an open market, and they can affect the value of your home.
  5. Don’t expect the appraiser to give the exact same amount of dollar value to improvements in your home as what you spent on them.
  6. Do expect the appraiser to have competence in your market area and access to local MLS data.
  7. Do understand that a professional appraisal is a supportable opinion of value. It is not the feelings of the appraiser but rather a supportable prediction of what your home would sell for if offered on the marketplace for a reasonable amount of time.
  8. The inspection portion of a real estate appraisal is just one small portion of the appraisal process. Substantial work must be done before the appraiser inspects the property to research market information and neighborhood trends. Once the inspection is complete, the appraiser may spend hours analyzing the data to produce a credible report.
  9. Educate yourself on the components that determine value in your property. Homes tend to be an extension of personal tastes, but the appraiser’s responsibility is to determine which of those tastes translate into a higher market value for your property.

See the full article here

124 Responses

  1. Don’t confuse “laws” with codes and statutes, which are “legal”. Don’t believe that you are protected by the constitution, because as a slave YOU are not a party to it. If you choose to free yourself from your strawman you must “declare” personal sovereignty by filing legal notice.The devil requires consent, even though he gets it by trickery and deceit, when he cons your mother into signing your birth certificate which works exactly the way the title to your car works. There is no U.S. Treasury, there hasn’t been one since the Independent Treasury Act of 1920. When you pay you taxes like a good slave, make your check payable to the private owners of the Fed Reserve, because that’s who gets it.

  2. There is too much B.S. in the linked Appraisal article of Dione Spiteri.
    The bottom-line is that appraisal is a type of fraudulent racket to serve the purpose of institutionally criminal lenders & brokers.

    The report lumps the whole country into one legal-entity regarding laws applied to appraisals, but its different in every state. For instance, In California as far as I can remember, the one who pays for the appraisal report is its true owner, not the broker, or lender who ordered it.

  3. I see it coming with the destruction of the Second Amendment ….. next the FEDSTERS will be coming for the currency and the property in a big way….and forcing the FEDSTER DEBT on us in the form of the microchip. Max Keiser said they are planning a manufactured fake financial collapse in April. These are really evil bastards.

  4. Piers the foreigner railing on our guns again…Obama abusing his power again and Congress is allowing it again……he is planning on unveiling unconstitutional and therefore illegal Universal Gun Laws surrounded by children tomorrow…..Universal Criminal and Mental health checks are on Obamas agenda…The medias spinning communism packaged up like something good for the country and no one is buying it.

  5. You trolls are really weak. The best trolls I have encountered were at the local level but they were not all that bright either. I shocked and awed the hell out of the locals. It was needed. Now I am happy to say, they all sound like me. As for moi having time for citizen blogging…I make the time. As for me…working for the banks….? That’s a real hoot… Better trolls please….

  6. I don’t know when this all went to shit, but it was a great idea in the beginning. too bad. you blew it, neil.

  7. that’s the last straw, maher. i’m going to “unfriend” you

  8. @ Tolle, YUP.

  9. maher, why would you instigate the moron? i know your disdain for the site is alive and well, but really?

    christine, dimentia has already set in. some people who have NO LIFE can find importance in themselves by agitating others. The person says nothing but says it often. pray for her.

  10. E.ToLLe,

    You’re wasting your time. Despite the increasingly derogatory comments i read about Livinglies and Garfield, he still allows it while whining that banks are paying shills to trash his website.

    Somewhere, this state of affairs serves his designs. Let it be. And as far as Robot goes, no one can purposely insult that many people without reaping what she sowed. She will piss off the wrong person. It will come back to bite her. Very, very hard. I have no doubt.

    Last point: name one person who has ever come back here to announce that following Garfield’s advice had helped him/her keep the house or win against the bank. The battle is not fought on internet. It’s fought in the trenches. It’s won in court. By those who take action and remain focused.

  11. E Tolle….. Anyone who needs help can find it here. I will not be deterred from my mission to expose these crooks & tyrants. If you were as smart as you think you are, you would have come up with a better strategy by now. It’s the same one every time, try and shoot the messenger. It has become obvious and redundant. If your going to be a troll, you should try harder, and use real arguments …you sound like playground bullies… are a really obvious bunch of disinfo agents and a dead give away everytime.

  12. Now we have the king of Asperger syndrome, a.k.a masterservicer, who I’ve tersely called out for many years now as Dr. Bronner, much like the peppermint soap wizard…. nothing he says makes any sense, now aligning with the queen of dis-ease, stripes/ivent. Singly, they waste much precious time as the crimes continue unabated, averting people from the latest strategies in foreclosure tactics and defenses.

    Even if they’re simply dumb posters, they aid the enemy, in their driving off of intelligent posters here on LL.

    Combined, they are forces to be reckoned in their own minds. Let them self-congratulate as often as need be. Pity the borrower in need of some real assistance or factual knowledge on foreclosure defense.

    These self appointed experts are dooming so many homeowners to their demise. If in fact you’re the type to jump on to the defense that these two push forth, go for it. Just remember, lemmings appreciate life until they see the cliff walls rising inexplicably at a rapid rate. That’s exactly what the pro se following these tactics will see.

    Remember, it’s not the fall that kills you, it’s the sudden stop at the end. But also remember that it’s the same way in court. Learn where the jagged edges are.

  13. Here it comes ….CNBC reporting Obama will announce universal background checks on guns…..universal healthcare, blah…blah…blah…Screw them…

  14. I am determined MS….

  15. If you have nothing better to do than count my comments Christine, that is sad and a bit disturbing. You may need to seek medical attention or up your dose. You too E Tolle…

    Politicians on Kudlow …Charlie Rangel and David Scweiker ….arguing the 14th Amendment & the DEBT CEILING AKA….THE FEDSTERS DEBT FRAUD………Kudlow told them the 14th Amendment has nothing to do with the DEBT (fraud)….LMAO….He blamed THE HOUSE OF “REPRESENTIVES” (CROOKS)….

  16. Stripes – Don’t ever, never, ever let the attacks stop you …got it

  17. Discovery is a big part of fraudclosure Christine. BTW..I am only in service to God and country. E Tolle….you can’t stop a train and I reject all evil.

  18. Out of 106 posts, 63 are from the service imbecile. It’s 60 percent!!! It is getting worse by the day!!!

    Garfield, it you don’t stop that insanity that contributes absolutely nothing toward helping homeowners and serves only to inflame, the only possible conclusion has to be that you like to see what is happening to your blog.

    In case you don’t realize it, it reflects on your own credibility.

  19. Bite me stripes/ivent.

  20. There is only one moron…the moronic blocker. Why would you block info, that’s the question. It doesn’t matter what you tyrants do, all the info is posted. All people have to do is type it in.

  21. The links are being blocked

    If only there was a way to block the moronic linker.

  22. The links are being blocked…..Google search the links or who are the kenites….?

  23. There’s more……

  24. If the link is blocked google it.

  25. Here is an interesting article explaing how we got here entitled: RISE OF THE KENITES

  26. By the way, Obama is set to announce more tyranny tomorrow….the attempted destruction of our gun rights. He also plans on spiriting in more rights for illegal aliens. If you know the truth you know these orders are coming from a foreign dictator.

  27. In the video, Pastor Jim Hoogenboom lays it all out well.. He said the Red Chinese are drilling off our coasts and the Rothschild Group have an oil pipeline running through Israel coming from Iran. Iran is Zionist Israel’s fake enemy. The real WW III will be brought on when the Israelites realize they have been sold out to the dollar and oil. The pastor names who these groups and people are who sold out the people for money & oil. He said there will be food shortages and water shortages over the quest for this group to control us. He said George Soros is buying up all the water rights around the country… He said all of the political leaders here and around the globe are sell outs to this group and the Bushes are members of this clique. Here are the names that comprise the Synagogue of Satan….the Zionists, the Jesuits, the Kenites, the Rothschild Group and their ultimate goal says the Pastor is a global totalitarian talmudic state. It is not Jewish, it is talmudic….evil written by men.

  28. The video is blocked. I will try and find another link to that video and post it. I believe the info in that video is very important.

  29. You can ask the court to invoke its civil criminal jurisdiction based on the facts presented. You have all the rights of a harmed party. They won’t go to prison out of it, but that is your legal right.

    Apparently Obama is drill baby drilling off our coasts and selling our oil to the foreigners & we have thousands of years worth of oil but are being forced to buy foreign oil. Apparently Cuba is drilling off the coast of Florida. The old double cross.. I am going to try and post the you tube video explaining all of this. It is kind of lengthy but worth the watch. It talks about the Synagogue of Satan and religion but religion plays a big role in this so you may learn a lot. If the link doesn’t work…search google for the title ……
    The Synagogue of S A T A N …….just like that with the spaces between those letters.

  30. Yes, they are stripes…where are the prosecutions? All I’m saying is we need a new approach, ’cause the criminal prosecutions are non-existent.

  31. These cases are criminal and the courts need to be told that. If you call that ranting, so be it. It needs to be done properly, but it needs to be done.

  32. Its the failure of the plaintiff to invoke the courts subject matter jurisdiction poppy…..period…end of story. They have no legal standing. You can chase rabbits all you want. I have already been down those rabbit holes, they are never ending.

  33. I know who you think you are Christine, but you are not getting way with telling anyone what to say or do. There are Americans who do get it, and we are not hiring attorney’s, not filing Bk so the banks can extinguish their fraud and we are not leaving OUR PROPERTIES…..Get it…? Got it? Good…!

  34. You are not hearing me stripes…so be it. The rants get nothing and will not be heard in the court. For me, I am in this to beat them at their own game.

    Understanding how the system is separated and what legal challenges can be made to the behavior, is tantamount to gaining ground. Just because we see…does not give us a valid, avoidance of the contract, no matter what DC is engaging in. That is a separate issue.

    Contract law and UCC violations is smack where the cases are. Even if someone produces a blue-ink note, it means nothing in the scheme of things. How were the notes handled, what is their designation, how where they sold and to whom, how were they assigned, by whom, where is their authority granted from, where is the consideration and how much, how did you bind the contract for the three parties, etc…all relevant and unsustainable if plead properly.

    Tidbit: The use of Without prejudice UCC 1-207 in connection with my signature indicates that I have reserved my Common Law right NOT TO BE COMPELLED TO PERFORM under any contract I did not enter into, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY. And furthermore, I do not accept the liability associated with the compelled benefit of any UN-REVEALED CONTRACT OR COMMERCIAL AGREEMENT. If you do not exercise this benefit rendered by your government, you will be obligated, under an implied agreement to obey every Statute, ordinance and regulation passed by Government, at all levels—Federal, State and Local.

  35. What is the jurisdiction these debt collectors are invoking in foreclosure….? There isn’t one available to them. They are swindling people.

  36. Same info over and over. Get a frickin’ attorney. And if you can’t, take your chance, file for bankruptcy, move out and move on if it didn’t work. It seems more and more obvious that pro se will be swallowed alive. And pro se who have nothing to contribute but waste all their time (and ours) on lunacy and irrelevant conspiracies are hindering serious people’s progress. Mental illness is no excuse.

    And Neil, if you don’t clean up this site at a time when people need REAL information, you are part of the problem. Someone like stripes/ivent has no business hindering everyone’s work. There are sites more appropriate for her kind of insanity. Jesse Ventura may have some use for her but homeowners really in the fight don’t want to hear or read constant bitching about everything that move or doesn’t even move.

    FORECLOSURE CRISIS WARNING! (Especially Pro-Se And Unprepresented Parties)

    Posted by: Matthew D. Weidner, Esq. | on January 14, 2013

    Over the last several years, the pace of foreclosure cases has ground to a halt. To a certain extent this was due to the action and advocacy of attorneys and to pro se parties who filed pleadings and did what they could do to slow down the pace…..


    An undisclosed side impact of the government collusion with the banks in their various settlements with the banks that own and control the government is that there is a renewed push to pursue cases and throw Americans out into the street. A most dramatic example of this is seen (of course) here in Florida where a portion of the 49 State Attorney General settlement money…you know the money that was supposed to be used to “help” consumers, is being given to courts and will be used to speed the progression of cases.

    Already, we’re seeing increased filings of new foreclosure cases, and those cases that have been languishing are now moving forward with renewed intensity.



  37. I read about this poppy. However, the truth is, we are protected from foreign corps and other states infringing upon our rights under the U.S. Constitution as Natural Born U.S. CITIZENS, we are sovereigns. There is no way these entities can invoke the courts subject matter jurisdiction to collect an unsecured debt.. This is an act of war and make no mistake, they want to win and they want us to believe we have no legal rights. This is simply not true, this is extortion. Even under admiralty jurisdiction, there is no such thing as an invalid contract that can be enforced for anything of value or equity.

  38. THE CRISIS THAT KEEPS GIVING …..OR TAKING? is the question Rick Santelli is posing on CNBC…..Guest says ZIRP allows banks to gamble with our wealth offshore and the reason Madoffs ponzi failed was because of zero interest rate “loans”…..the same thing the FED is doing with our money….borrowing it at zero interest…pocketing what they are borrowing at zero interest. STEALING.. No doubt the Foreign Corp are doing nothing but stealing. Madoff was a pawn in the big picture…..Why would he have been given zero interest rate loans? That’s the stuff you don’t hear about. The bank told him here is a bunch of money, interest free, go sell investments. Complete b.s.

  39. stripes

    This information is coming from a seasoned, legal expert, on how to use the law to fight in COURT, not my opinion. I can tell you reading this guys opinions and significant legal expertise…I can see where he is winning. The law is broken down into 3 segments, equity, common (remedy and recourse) and Admiralty law. There is no such thing as Statutory jurisdictions, under the law, in and of itself. He says we have the Federal United States and the Continental United States. Where we the people are not “not citizens” unless we live in the jurisdiction of Washington DC, we are domiciled in various sovereign states, protected by the Constitution of those states, from any direct rules of Congress (jurisdiction of DC only). Congress has control over a given territory and we are not part of that territory.

    In essence, we are non-residence aliens. The only way you can be compelled to perform under the Constitution in the Continental U.S. is by contract.

    Jurisdiction, stripes…and further, the DOT is governed by state law, while the note is governed by Federal Law, UCC codes, where they must be separated for purposes of “enforcement” and “validity”…my piece.

  40. And there Are books written in the 80,s re what stripes vents about, it hasnt changed but it did get worse . We are here and now and there are laws. Thats all we have and we gotta make it stick in the forum we have the peoples court. Otherwise all attorneys will be singing for their supper at some point.

  41. Deborah…..I believe exposing it takes power away from it and I will not give power to it by toning it down. That is what they want.

  42. That is why we should not do business with this fraudulently induced foreign corp. That is why the FED hijacked the Treasury. That is why many of the attorney’s are screwing people over. They are working for the Foreign Corp. All of these bailouts are criminal extortion by the foreign Corp. They are stealing our wealth and they don’t give a damn about us. That is why the country is crumbling. They are pocketing all of our wealth and destroying us. This is all about our robbery and destruction.

  43. Stripes its was a comparison i made – re read
    I dont want to bash u or others to
    Just tone it down thats all. As for me getting it. Hell you bet i do but i believe my power lies in what i choose I CHOOSE to give power to.

  44. Obama is like the GSEs…..public & private but he, like all dual identity entities and politicians are a fraud by those deceptions. Like Michael Chertoff and Rahm Emanuel have dual citizenships….Israeli and U.S……they are in reality frauds.

  45. There is no such thing as Constitutional Rights for the Government Corp poppy…..They fraudulently induced us to do business with them. They are IMPOSTERS; fictitious payees…..BSE…..GRAMM & CLINTON work for the Foreign Govt…..the foreign Corp hijacked the Government and the TREASURY without our knowledge or consent. Corpus Jurist Secundum is not the rule of law in our Constitutional Republic. They can display their gold fringed flag in our courtrooms all they want ….THEY ARE A GIANT FRAUD……

  46. Obama is working for the CORPORATION OF THE United States of America……not the Constitutional Republic of the united states of America. Obama has NO LEGAL RIGHTS under the U.S. CONSTITUTION and either do the attorneys or any other politician working for the GOVERNMENT CORP. That is the deception and that is criminal. That’s why our 2nd Amendment is the LINE IN THE SAND so to speak. Obama has no legal right to upend or relinquish our Constitutional Rights. Either do this fraudulent Congress or Senate….these lawmakers are working for the FOREIGN CORP….THE ROMAN SENATE…..

  47. I can’t believe you said there is no such thing as Constitutional Rights poppy. That is a dangerously deceptive statement. You are talking about the CORPORATION OF THE United States of America they are UNCONSTITUTIONAL & ILLEGAL by their deception. WE THE PEOPLE never consented to do business with a foreign owned and operated Government. THAT IS WHY THE FEDSTERS CHANGED POSITIONS AND HIJACKED THE U.S. TREASURY….THEY ARE A GIANT FRAUD & A NULLITY BY THEIR DECEPTION….ABOLISH THE FED…DON’T DO BUSINESS WITH THESE FRAUDS & SWINDLERS…..The BAR is working for the FOREIGN U.S. CORP…..

  48. Thank you Phil Gramm and Bill Clinton- “You rotten ass son of a bitches !” We have to INCLUDE the OTHERs “Senators and the House” who voted to remove Glass Steagall

    Reuters) – Joseph Keller doesn’t expect he’ll live to see the end of 2013. He blames the house at 190 Avondale Avenue.

    Five years ago, Keller, 10 months behind on his mortgage payments, received notice of a foreclosure judgment from JP Morgan Chase. In a few weeks, the bank said, his three-story house with gray vinyl siding in Columbus, Ohio, would be put up for auction at a sheriff’s sale.

    The 58-year-old former social worker and his wife, Jennifer, packed up their home of 13 years and moved in with their daughter. Joseph thought he would never have anything to do with the house again. And for about a year, he didn’t.

    Then it started to stalk him.

    First, in 2010, the county sued Keller because the house, already picked clean by scavengers, was in a shambles, its hanging gutters and collapsed garage in violation of local housing code. Then the tax collector started sending Keller notices about mounting back taxes, sewer fees and bills for weed and waste removal. And last year, Chase’s debt collector began pressing Keller to pay his mortgage, which had swollen, with penalties and fees, from $62,100.27 to $84,194.69.

    The worst news came last January, when the Social Security Administration rejected Keller’s application for disability benefits; the “asset” on Avondale Avenue rendered him ineligible. Keller’s medical problems include advanced liver disease, hepatitis C and inactive tuberculosis. Without disability coverage, he can’t get the liver transplant he needs to stay alive.

    “I can’t make it end,” says Keller. “This house, I can’t get out.”

    Keller continues to bear responsibility for the house because on December 23, 2008 – about two months after he received Chase’s notice of sale – the bank filed to dismiss the foreclosure judgment and the order of sale. Chase said it sent Keller a copy of its court filing on December 9, 2008. Keller says he never received any notification. Either way, his name remained on the property title.


    The Kellers are caught up in a little-known horror of the U.S. housing bust: the zombie title. Six years in, thousands of homeowners are finding themselves legally liable for houses they didn’t know they still owned after banks decided it wasn’t worth their while to complete foreclosures on them. With impunity, banks have been walking away from foreclosures much the way some homeowners walked away from their mortgages when the housing market first crashed.

    “The banks are just deciding not to foreclose, even though the homeowners never caught up with their payments,” says Daren Blomquist, vice president at RealtyTrac, a real-estate information company in Irvine, California.

    Since 2006, 10 million homes have fallen into foreclosure, according to RealtyTrac, a number that in earlier, more stable times would have taken nearly two decades to reach. Of those foreclosures, more than 2 million have never come out. Some may be occupied by owners who have been living gratis. Others have been caught up in what is now known as the robo-signing scandal, when banks spun out reams of fraudulent documents to foreclose quickly on as many homeowners as they could.

    And then there are cases like the Kellers, in which homeowners moved out after receiving notice of a foreclosure sale, thinking they were leaving the house in bank hands. No national databases track zombie titles. But dozens of housing court judges, code enforcement officials, lawyers and other professionals involved in foreclosures across the country tell Reuters that these titles number in the many thousands, and that the problem is worsening.

    “There are thousands of foreclosures in limbo, just hanging out there, just sitting, with nothing being done,” says Cleveland Housing Court Judge Raymond Pianka, whose pending court cases tied to derelict properties have doubled in the past two years, to 1,000. He says the surge is due largely to homes vacated by people who fled before an imminent foreclosure sale, only to learn later that they remain legally responsible for their house.

    When people move out after receiving a notice of a planned foreclosure sale and the bank then cancels, municipalities are left to deal with the mess. Some spend public funds on securing, cleaning and stabilizing houses that generate no tax revenue. Others let the houses rot. In at least three states in recent months, houses abandoned by owners and banks alike have exploded because the gas was never shut off.


    Unsuspecting homeowners have had their wages garnished, their credit destroyed and their tax refunds seized. They’ve opened their mail to find bills for back taxes, graffiti-scrubbing services, demolition crews, trash removal, gutter repair, exterior cleaning and lawn clipping. At their front doors they’ve encountered bailiffs brandishing summonses to appear in court.

    In some cities, people with zombie titles can be sentenced to probation – with the threat of jail if they don’t bring their houses into compliance.

    “These people have become like indentured serfs, with all of the responsibilities for the properties but none of the rights,” says retired Cleveland-Marshall College of Law Professor Kermit Lind.

    Banks used to almost always follow through with foreclosures, either repossessing a house outright — known in industry parlance as REO, for real estate owned — or putting it up for auction at a sheriff’s sale. The bank sent a letter notifying the homeowner of an impending foreclosure sale, the homeowner moved out, the house was sold, and the bank applied the proceeds toward the unpaid portion of the original mortgage.

    That has changed since the housing crash. Financial institutions have realized that following through on sales of decaying houses in markets swamped with foreclosures may not yield anything close to what is owed on them.

    By walking away, banks can at least reap the insurance, tax and accounting benefits from documenting the loss — without having to take on any of the costs and responsibilities of ownership, according to a 2010 Federal Reserve paper. A walk-away also enables them to “sell the unpaid debt to debt collectors, sometimes noting to the court that the loan has been charged off,” according to a Case Western Reserve University study released in 2011.

    No regulations require that banks let homeowners know when they change their minds about a foreclosure. So they rarely do, according to housing court judges, homeowners’ lawyers and academics who study foreclosure problems. “The banks do not answer inquiries, they do not answer phone calls, they do not answer letters,” says Judge Patrick Carney of the Buffalo, New York, Housing Court. His zombie-title caseload has swollen in the past few years to well into the hundreds. “The whole situation is surreal,” he says.


    Marlon Sheafe, a 55-year-old who drove trucks for Sara Lee Corp for 25 years, was sentenced to probation in May. The citation from the Cleveland Housing Court says that if he doesn’t fix the problems with the investment property he bought in 2005, the grandfather of three, who suffers from advanced cancer, will go to jail in May 2014.

    Ocwen Financial Corp, the servicer of Sheafe’s mortgage, foreclosed on the house in 2008, when Sheafe was hospitalized with congestive heart failure and later lost his job, forcing him into default. That was the last he heard about the house until a year and a half ago, when he received a summons to appear in Cleveland Housing Court for code infractions on the property: cracked steps, shredded siding, weeds as tall as the doors. There was also a $300 lawn-mowing bill.

    A few weeks later, Sheafe appeared at the drab, brown-paneled chambers of the Cleveland Housing Court, packed, as it is every Tuesday and Thursday lately, with other people in his situation. Sheafe expected his appearance that day would clear up what he thought was a big mistake. Instead he left with the order to get the house up to code.

    Sheafe started visiting the tall, crooked house every week. Looters had stripped the place bare. The “dope boys” had left their sneakers on the porch and their empty cans of sausages strewn around inside. Sheafe repaired the steps and spray-painted patches of the exterior where the vinyl siding had been ripped off. He returned every week to check on the house and mow the lawn.

    While Sheafe worked on the house, Judge Pianka worked on the mortgage servicer, subpoenaing Ocwen to appear in court. In February, Ocwen released its lien on the house, which Sheafe hoped would enable him to donate it to the local land bank – one of many set up by local governments in recent years to manage abandoned properties.

    But Sheafe still can’t shake free of the house. The county sold his tax lien to a debt collector, which is now suing Sheafe for foreclosure. He also faces $4,185 for code violations, $185 for court costs and up to $10,000 if the city is forced to tear down the house.

    “There’s no end to this,” Sheafe says. “I can’t win.”

    Asked to comment, Ocwen issued a statement saying: “It is Ocwen’s policy not to disclose details about specific customers. In this case, Ocwen has attempted to work with the borrower over a four-year period. Ocwen offered to settle the account with the borrower but never received a response to the offer.”

    Sheafe says he couldn’t afford the amount Ocwen proposed in its settlement offer.

    The Consumer Financial Protection Bureau, the federal agency established in the wake of the financial crisis to guard against predatory lending and other abuses, declined to comment for this article.

    Joe Smith is the monitor of the National Mortgage Settlement, the agreement struck a year ago between major banks and state attorneys general to, in part, address foreclosure abuses. In a statement responding to a request for comment, he said: “To my knowledge, the servicers’ behavior in the situation… is not covered by any standards in the Settlement.” He added: “However, it does sound like there are problems with this type of treatment. I recommend the borrowers contact their state’s attorney general and remember that the Settlement does not preclude borrowers from taking their own legal action.”

    Patrick Madigan, Iowa’s assistant attorney general, was instrumental in crafting the National Mortgage Settlement. He said that he thought the consent decree would attempt to address the issue of foreclosure limbo, but that in the end, the language in the order was ambiguous. “It’s a very difficult situation,” Madigan said.


    Banks say that because they are not the legal owners of these homes, they aren’t required to maintain them, pay taxes on them, or take any legal responsibility for them. Homeowners legally own their properties until the day of sale. And it’s not until that day, the banks point out, that a homeowner’s name vanishes from the title.

    David Volker found that out the hard way. When the housing market crashed, so did Volker’s contractor business, and he was unable to keep up with payments on his barn-like two-story house in Buffalo, New York. His mortgage servicer, HSBC, foreclosed on the home in 2009. A few months later, while he was staying with his girlfriend, he stopped by the house to find an HSBC padlock on the doorknob and bank stickers plastered across the door.

    Shattered glass covered his front steps. When he crawled through a broken window, he found the place trashed – by whom, he doesn’t know. Even the toilets were gone. Hearing nothing more from the bank, he figured the house was no longer his.

    The place continued to decay. Gutters tore loose from the eaves. The yard turned into a dump for balding tires. Volker’s neighbors started complaining to the Buffalo Housing Court, which eventually tracked down Volker at the rental where the 49-year-old was living and ordered him to appear in court. That’s when Judge Carney told him that he was still the owner.

    “I was stunned,” Volker says. “I never for a moment thought I still owned this house.”

    Volker worked with a realtor to try to get HSBC to take several short-sale offers – deals under which the bank would allow Volker to sell the house for less than the amount owed on it – but he says HSBC turned them down. Since then, he’s been asking the bank to agree to a deed in lieu, whereby he would give the house back to the bank. So far, he hasn’t been able to make that happen. He has $1,000 in water and trash bills and faces up to $30,000 in demolition fees if the city decides his house is a safety hazard and must be torn down.

    HSBC declined to comment on Volker’s case, citing privacy concerns. In a statement, the bank said it “has a strong commitment to home preservation and regards foreclosure as a last resort, only after alternatives have been exhausted and the borrower is seriously delinquent.”

    Cases against zombie-title holders are rising due to everything from sewer bills to tilting chimneys, and they are clogging the courts. In Milwaukee, Wisconsin, about 900 cases in the foreclosure process involve zombie titles. In South Bend, Indiana, the number is 1,275, up from 600 in 2006. In Memphis, Tennessee, cases have doubled in the past two years to 1,500.

    In Cleveland, 15 percent of foreclosures between 2005 and 2009 stalled out in foreclosure limbo, more than a third of them involving homeowners who had fled foreclosure notices, according to the Case Western Reserve study.


    State tax authorities are getting into the game, too. When IndyMac foreclosed on Richard Chavarry’s house in Victorville, California, in 2008, he had already relocated to Los Angeles to escape the 80-mile commute to his job. The renters he had initially relied on to help him keep up payments on the Victorville house were long gone, too. But he had no idea that IndyMac canceled the sale in October 2009. “They never notified me,” Chavarry said.

    Nearly two years passed before Chavarry started getting citations in the mail for code violations from the city of Victorville. In February, the California Tax Board seized his $631 tax refund to pay the city back for the costs of scrubbing graffiti, removing tumbleweeds and boarding up the windows of Chavarry’s house.

    In March, Chavarry filed a deed in lieu to try to get IndyMac, now owned by OneWest Bank, to take back the house. The bank rejected it. Chavarry still owes the county $5,731 in back taxes and fees for housing-code violations.

    IndyMac declined to comment.

    Once a bank walks away from a foreclosure, the real rot begins. Living rooms turn into meth labs. Falling shingles menace passers-by. Squatters’ cooking fires turn into infernos. The latest iteration of the trend: gas explosions.

    Electric companies usually shut off the juice when homeowners tell the utility they are moving. But natural-gas companies usually don’t. In recent months, abandoned homes have exploded in Chicago, Cleveland and Bridgeport, Connecticut. In all cases, foreclosed homeowners had moved out. With no one home to smell the gas, it went undetected – until the houses blew.

    “We are seeing more and more close calls,” says Mark McDonald, a former natural gas public safety worker who now runs the New England Gas Workers Association. “These houses are a formula for disaster.”

    Cities are struggling to find ways to cope with growing numbers of blighted properties. Miami, Detroit and Las Vegas have created registries intended to force banks to take more responsibility for vacant houses.

    The Mortgage Bankers Association has opposed these measures. Placing “unreasonable” and “onerous” requests upon servicers will only hurt the already ailing mortgage-lending business, the association says on its website.

    The association did not respond to repeated requests for comment.

    Registry advocates say the banking industry’s opposition has helped water down some of those actions, such as a recently enacted Georgia law that requires banks to register vacant properties only after a foreclosure has been completed.

    A vacant-property ordinance in Los Angeles requires banks to register a house as soon as they file a default notice. Failure to do so could result in a $1,000-a-day fee. However, “it’s not being enforced,” says Los Angeles Assistant City Attorney Tina Hess. “Part of the problem in L.A. is the building and safety departments have been cut so severely they don’t have the inspection staff to monitor these properties.”


    In Columbus, Ohio, Joseph Keller recently paid a visit to the empty house on Avondale Avenue. In the living room, the floor was littered with dirty diapers, pill bottles, condoms, sooty mattresses and soda cans. In the kitchen, squatters had hung pink curtains.

    “They tore it to hell and back,” Keller said, kicking at a dirty mattress. “We never would have left the home if we weren’t told to get out.”

    The Kellers live in their daughter’s dining room, where their queen-size bed leaves little room to maneuver. Joseph can’t sit, stand or sleep for more than 15 minutes at a time. He can’t take pain medication because of his diseased liver. Every few months, he makes a trip to the emergency room, where doctors drain his abdomen of excess fluid.

    Last May, Chase’s debt collector, Professional Recovery Services, sent Keller a letter: “At this time,” it said, “we are able to offer you a settlement of $25,258.41 on this account to be paid within 15 days.” He lacks that kind of money, as well as the $11,759.08 he owes to the county in back taxes.

    Professional Recovery Services declined to comment.

    At a hearing in early December, a Social Security administrative judge told the Kellers that he would review their appeal of the original denial of benefits, a process that he said could take two months. Joseph Keller responded that he might not be around that long. Earlier this month, the judge sent the case back to the local office after it determined that the house was virtually worthless. Keller still has no benefits.

    A Social Security Administration spokesperson declined to comment on the case.

    “He’s dying,” says Keller’s daughter, Barbara. “He needs his name off this house.”

    (Editing by John Blanton)

  49. Poppy…Your LEGAL rights are THE U.S. CONSTITUTION…..and you are protected under the U.S. CONSTITUTION if you are a Natural Born U.S. CITIZEN. I invoked all of the rights afforded me as a Natural Born U.S. citizen as well as my Natural Law rights. The Bill of Rights is an addendum that gives extra protection to WE THE PEOPLE. The united states is a Constitutional Republic. Don’t let these crooks fool you. That is why OBAMAS birth certificate was such an issue. If he is not Natural Born than his Presidency and all of his actions are illegal. The U.S. CONSTITUTION is the SUPREME LAW of the Land and it’s protections are only granted to Natural Born U.S. CITIZENS. That is why these traitor politicians want to destroy it and give rights to illegal aliens who have no legal rights here. They are trying to scam us out of our legal rights and let the foreigners take over without ever firing a shot.

  50. Poppy
    Good post !

  51. ATTORNEY — one who transfers or assigns, within the bar, another’s rights and property acting on behalf of the ruling crown (government)

    State officers have no constitutional authority to practice law as lawyers, barristers, advocates, or solicitors. Americans should begin formally charging these false lawyers with unlawfully practicing the profession of law since their BAR union licenses only give them the privilege to be Attorneys and Squires over asset transfers.

  52. Did you know there is no such thing as “Constitutional Rights”? The Constitution does not give you any rights. Your Rights are given to you by God, your Birthright, your Inheritance, Sovereign, and cannot be restricted or taken from you.

    What the Constitution does in the first ten Articles of Amendment, known as the “BILL OF RIGHTS”, is RESTRICT GOVERNMENTS, both Federal and State, from interfering in the Right of Sovereign Natural People to exercise their Inherent Rights freely.

    Learn what your Sovereign Inherent Rights are and how to exercise these Rights in order to demand them in a courtroom and protect yourself.

    Increasingly, people find themselves divested of their rights in court, entrapped through ignorance and fear in snares created by “Our Enemy, the STATE” to create fines, seize private property, children, inheritances and freedom. People are finding that their attorneys, often paid huge sums of money, do not aggressively defend them, but actively work for the system as “officers of the court”.

    Knowing the real nature of the court and what is happening against you is half the battle in preventing the state from abusing you and your family. Learn why you do not want anybody to “represent” you, how you give up your Sovereignty when you allow anyone to represent you. Learn to tell the public servants in black robes that you do not allow them to violate your Rights and abuse you. Learn to tell the court that you do not voluntarily comply with an unconstitutional Statutory Corporate Administrative process and that you are not a “commodity” to “sustain” a “funding resource stream” for the STATE.

    Learn how to go into a court, exercise your Sovereignty, claim your Inherent Rights and make a Public Record of what has happened to you.

    Sui Juris [At law: Latin – su i u ris : “of one’s own right”] 1. One who has all the rights to which a freemen is entitled; one who is not under the power of another, as a slave, a minor, and the like. 2. To make a valid contract, a person must, in general, be sui juris. Every one of full age is presumed to be sui juris. — Bouviers Law Dictionary

    Sui Juris is a Process to access the Public Record and force the facts of your abuse to be heard. Learn to write your own motions and court documents, and confront any level of government with which you have come into conflict. Learn to demand your Constitutionally protected Inherent Rights in any legal situation, as well as confront unlawful government policies. Learn how to force public servants into accountability.

    A book, “Sui Juris,” has been written in layman’s terms, as simply as possible, reasonable and easily understood. Once you know your Rights the courts cannot deceptively manipulate you anymore.

    Sui Juris has forms to use, sample legal documents for a format to write your own legal paperwork, and relevant information to paint a clear, full picture of the nature of the fraud being openly conducted around you. Once you see it, you will be outraged ! And they will not be able to exploit you.

    Don’t know if this will aid anyone, but the stuff sure is interesting….

  53. If you say you are learning to know good everyday Deborah well, good for you. I know that both good and evil exist. That is why we are here. As far as the Illuminati, the freemasons and other secret sects, they are a large part of this conspiracy. You really can’t “get it” without knowing these things exist and how they play a role in this. The truth is not pretty but, it is the truth, and it is important. A lot of us were taught to have closed minds and that believing in things you cannot see is nonsense. That is unfortunately just how evil works. It is secretive, deceptive and it lies a lot. I also believe good will win.

  54. BTW Deborah, I don’t see one comment where I am flaming the word of God down anyone’s throat. I think you might be hearing your own conscience. The forces for good work in mysterious ways.

  55. I could not be happier the truth is too much for you trolls. It makes me feel I am contributing. Thankfully there are Americans left who give a darn about this country and freedom and are not willing to give up and hand you our house on a silver platter. I wish none of it were true, but unfortunately, it’s worse than it appears. I have only touched on a few parts of this monolithic conspiracy to steal our freedom. There is a lot more. I will keep you posted.

  56. Strilpes
    Its called too much, your too much
    There may well be a lot of truth in your posts
    But like those religious people that insist on Ramming the ” word of god” down your throat, ( and do think i dont love god i love god and im getting to know god better everyday) they have no right to piss people off. I think you should be allowed freedom of speech and i hate to see people being un kind to you but simply post less ive read uour stuff but i stopped reading weeks ago because its all the same. Folks need to know how to win these cases not fix the priblems of the globe
    We couldnt do that even if we tried. The things you talk about like the devil the illuminati ect
    They have amways been there to talk about but god always made sure they did not succeed, have faith be peaceful you are smart enough to know that most people do the complaining and do naff all about it whilst others do the fighting for them, its the way people are and you cant make those folks get iff their rusty dusty so that is that.

    And thats all i have to say. Be peaceful within and then there will be peace without.

  57. The only answer the politicians have for their crimes and the crimes of the Banks, the GSEs, Wall Street & the FEDSTERS in their fraudulently induced Democracy is take everything away from the people…..In our Constitutional Republic the only answer for WE THE PEOPLE is, take it back.

  58. The FEDSTERS secrets, lies, deception and criminal fraud are being exposed. You are right about one thing, it won’t be long until EVERYONE knows the truth about the psychopaths who are running around trying to destroy the country disguised as Corps, politicians, the Treas Secretary/head of the FED, the banks, Wall Street, the media, the judiciary & some in law enforcement …AKA… the jokers & the thief’s…

  59. And there, we have it all: delusion, delirium. incoherence, confusion, inability to interact and inability to function. It’s all there.

    It shouldn’t take too long anymore.

  60. Christine… the diagnosis for yourself and your mobster criminal crooks are going to need to use those when you fake memory loss in court….however, no one will believe you idiots.

  61. No one should ever let fear control them. Fear is a control mechanism of the malefactor ….. what we don’t know is what they use to terrorize us with. The only boogeyman is lack of knowledge. The FEDSTER CORP are a giant boogeyman trying to hide what they are planning. Know your enemy is evil….what it is planning is… get you to accept’s strategies ….secrets, lies, deception to defraud…and its ultimate goal….totalitarianism ….

  62. UKG,

    And here are the symptoms:

    “Symptoms can differ based on the disease. In general, organic brain syndromes cause:

    Long-term loss of brain function (dementia)
    Severe, short-term loss of brain function (delirium) [All of which are present in our subject]

    Outlook (Prognosis)

    See the specific disorder. Some disorders are short-term and treatable, but many are long-term or get worse over time.

    Possible Complications

    People with OBS often lose the ability to interact with others or function on their own.” [And it is already involving serious complications in our subject]

  63. Is that your evil cantation Christine ….? Well save it, because I DO NOT FEAR EVIL…&…..I have faith that good will win. You mistake alerting the people with spreading fear. I alert the people because I know that knowledge is power.

  64. UKG,

    It’s called organic dementia of the Alzheimer’s type.

  65. That’s right…..the RULE OF LAW SAYS…. Plaintiffs have to prove status at the onset of their fc complaint…and if they don’t IT’S CRIMINAL..& FELONIOUS….. foreclosure does not create standing. The PLAINTIFFS have to have POSSESSION BEFORE THEY FILE A LEGAL COMPLAINT…POSSESSION ISN’T CREATED BY FILING A FC…. DURING FC….OR AS A RESULT OF FC…..THEY ARE FELONS….

  66. Tea Party “activist” on Cavuto saying “it would be irresponsible of the politicians to default on their bills”…… Well la ti da….but it’s o.k. that the FEDSTERS owe U.S. TAXPAYERS GAZILLIONS and are in DEFAULT TO THE U.S. TREASURY…& HAVE BEEN ALLOWED TO HIJACK THE TREASURY AND HOLD OUR WEALTH HOSTAGE AND EXTORT $60.4 TRILLION DOLLARS FROM US OVER THE LAST 4 YEARS….? THE TEA PARTY ACTIVISTS ARE FEDSTER SCHILLS……Cavuto is a jerk too…he said “if I defaulted on my mortgage, I would lose my house…” Screw you Cavuto…you lying traitor.

  67. It will be won, one case at a time.

    Read the entire article by clicking on the link.

    Breaking: Massachusetts SJC Issues Another Important Foreclosure Ruling In HSBC Bank v. Matt

    by Rich Vetstein on January 14, 2013 · 2 Comments and 3 Reactions

    in Foreclosure,Massachusetts Real Estate Law,Mortgage Crisis,Mortgages

    ForeclosureLegal Standing For Mortgage Lender/Servicer Must Be Established To Start Foreclosure

    Today the Massachusetts Supreme Judicial Court has issued what I believe to be another very important ruling involving foreclosures in the case of HSBC Bank v. Matt (embedded below). This case is the latest piece in the trilogy of recent landmark foreclosure opinions, starting with U.S. Bank v. Ibanez then Eaton v. Fannie Mae — which has now come full circle from very limited judicial oversight of foreclosures to a much stricter legal environment for lenders.

    In my opinion, the net effect of the HSBC v. Matt ruling is to make Massachusetts somewhat closer to a judicial foreclosure state than a non-judicial foreclosure state, as the ruling requires a foreclosing lender or mortgage servicer to submit actual evidence of legal standing to foreclose when they start a Soldier’s and Sailor’s Act proceeding, a requirement that has never existed under Massachusetts law. This new requirement could prove to be potentially problematic to mortgages which are held in complex mortgage backed securitized trusts. However, a portion of the Court’s ruling — that only military members can raise a challenge — could turn out to blunt its impact. In the short-term, the Land Court will have to determine what evidence and documentation is legally sufficient for lenders to establish proper legal standing to foreclose.

  68. It is not my problem, it’s yours…..and it might be hard for you to spell it but not for me…….I AM A FREEDOM LOVING…COMMIE HATING ……CONSTITUTIONAL REPUBLIC LOVING……U.S. PATRIOT…..

    BTW….I avoid the tollway…it’s another rip off….I avoid putting money in these politicians corrupt pockets as much as I can.

  69. Unfortunately, there is a lot more than appraisal fraud to worry about….ALL AMERICANS WILL RECEIVE A MICROCHIP IMPLANT BY 2013 PER OBAMACARE…….it sure sounds like the ultimate evil is among us….

  70. stripes, I don’t know what your problem is, but I’ll bet it’s hard to spell. Why don’t you go play on the tollway?

  71. Foreclosure is another big swindle by the same FEDSTER crooks who set us up to fail and robbed us. Millions of Americans have no idea how badly they got screwed over. That is what really infuriates me. The media laughs and chuckles and lies through their teeth covering up the balance sheet insolvency of the banks and the hijacking of the Treasury, it is evil and criminal. These politicians and their minions & cohorts are criminals. Lying through their teeth arrogantly walking around like they own this country, dictating to us how we should live our lives all while robbing us. Obama telling Congress, give me the power to raise the debt ceiling…. How much of our wealth and freedom are we going to let them steal…? That is the real question. Are we going to wait until we are all jobless, broke and they come for our property and guns and microchip us with Obamacare before we stop allowing this massive fraud to continue…..? Then it will be too late. The commies will have won. Let me just say has anyone noticed how evil Obama sounds and looks this second term…? Just like a mad dictator more and more each day. He wants to use an Executive Order to take our guns and raise the debt ceiling with or without Congresses approval. If that’s not a dictator what is…? He has abused his power more than any President in history and we keep going along with it.

  72. @ mservicer

    I believe all of these foreclosure actions have no merit. The notes are satisfied. Do you have the “ability” to tell me where one would find these satisfactions and how they would be identified?

    FYI: I am 100% they are here. I Have looked in many states and found “thousands” of satisfactions one minute after the other from Alaska to Texas…there is NO possibility this is random/accidental.

    I just found a company, it will remain anonymous for now, that after filing bankruptcy in Delaware, moved DOT’s and notes through a city in Alaska…by the thousands. Offline ID:, if you prefer.

  73. ….and seizing their overseas bankster accounts.

  74. Don’t get excited about the OCC order against CHASE….Their protection racket is at it again. They are calling this fraud DEFICIENCIES and giving them time to hide their fraud. The U.S. MARSHALLS should be arresting these crooks and sending in private auditors to audit their cooked books.

  75. UKG,

    It didn’t turn out exactly great for Glazer, though. Those are part of my allegations as well.

  76. You wish you weren’t a paid robot slave Christine…I on the other hand, am free to expose all of you. It is my God given right and my Constitutional right as a Natural Born U.S. citizen to be free to do that…GOD BLESS AMERICA…..!

  77. Christine: re Glazer–good catch. we’re arguing that right now. pertinent, to be sure…..

  78. As far as I am concerned, the politicians, the media, the bank regulators, the SEC, the FED…Bernanke & Geithner, his successor, the Banks, Wall Street and the top levels of Law Enforcement and the Judiciary have a right to remain silent because this country is a crime scene and they should start hiring attorneys because they are going to need them.

  79. “…or don’t talk.”

    My point exactly. Why doesn’t Robot learn to shut up? The creature might actually come to enjoy it. And I know we would…

  80. As if Kudlow doesn’t know these commie crooks have hijacked the free markets…TELL THE TRUTH…or don’t talk.

  81. Tell the PRESIDENT OF COMMIELAND…THEIR MEDIA….THE CONGRESS & SENATE OF WEIMAR GERMANY …AKA THE FED to shove their debt where the sun don’t shine.

  82. I compare these politicians and most of the media to communist hardliners disguised as Nazis. They are not Americans and their facade is now paper thin. They keep telling us what is good for us and good for the country while they are robbing and destroying us. Kudlow said the American people don’t want to default….What American people are those…? The stupid sheep who don’t know it is the FED that is in default to US…..and these criminals have hijacked the Treasury…the Presidency, the Congress and the Senate. SCREW YOU KUDLOW…you are a Nazi Commie to for NOT TELLING THE TRUTH…..You say free market capitalism is the best path to prosperity while YOU DECEIVE & LIE ….. you are a first class lying a**hole.

  83. Their criminal fraud is difficult to decipher but, it is not rocket science…When you get it….you really get it. Then stealing becomes a chore for them and costly. These attorney’s they hired are just debt collectors who wear nice clothes. They are not there to defend their fraudulent claims, they are there to steal.

  84. I see it, but what are the options other than the judicial system, Ha,Ha, Ha what a joke!

  85. I agree poppy there is a lot of fraud here and everyones case is a little bit different but, not much. I have yet to see a valid legal assignment, lost note attachment or an affadavit swearing to the authenticity of a damned thing. They can’t prove jack shit and the unindorsed notes…….those are CRIMINAL….they cashed those notes. Those allonges are fraud attached to unindorsed cashed notes. I am speaking as a pro se but I have done my research. No legal assignments recorded ever…? Come on now……there is no legal fix for that…..that’s criminal. A lost note attachment would not even do them any good if they were never in possession of the docs they fraudulently induced you to sign. Fraudclosure is a scam and it’s criminal.

  86. Why else would they want our guns….? These crooks are slowly & strategically bankrupting the people so the FEDSTERS …the GLOBALISTS get complete communism in return for all of their criminal fraud and unjust enrichment. When the people realize how bad these politicians screwed us, they sure don’t want us well armed. Local media in Chicago WGN news reporting the politicians keep making new gun laws in Illinois while the crime rate keeps going up..up..up..up….. ! Precisely….It makes NO SENSE….IT IS COMPLETE NONSENSE to disarm us….when the criminals are well armed…Rahm Emanuel is a tyrant and a crook and EVERYONE KNOWS IT…I have learned that when something doesn’t make sense…start looking for the fraud.

  87. Same shit, different day. See how long this lasts…



  89. That’s right, but every case is differently presented by these gangsters. The court is the only playing field. Having tried to get a summary judgment and strike the motion, in District Court, it didn’t work. The judges are NOT, sophisticated enough and they are in communities where they know all the players. The federal Court is better. Just saying…every endeavor requires strategy, especially for the types of things being done and sanctioned by the government here. Got to beat them at their own game.

  90. Fraudclosure can be compared to the lightening round of Double Jeopardy except the stakes are much higher. If you lose this evil game, you are a homeless, broke renter slave. Obamas and the Globalists dream of a welfare nation come true…a Rent a Center of America…

  91. I see one strategy..motion to strike and dismiss based on the facts presented.

  92. What I am saying is these frauds were brought upon the court to deceive, steal and permanently harm us after we were already harmed by these same scammers. Sounds like double jeopardy to me… Procedure goes out the window when you realize these crooks already committed felonies that put you in jeopardy and now are committing more felonies to permanently harm you….double jeopardy….they are threatening our life and limb and they really belong in prison for life.

  93. Look stripes, in court you need to follow the drill. When you ask the court to bring someone, anyone into that format there are rules of conversation. hence, strategy does play. I get what you say, but it is not enough to say it, not in court.

    You do your thing, I do mine. It is worth the compromise. I, like you see the whole thing, but ranting and rambling in court…you will absolutely lose. It’s the judges court, not mine, play by the rules, even if they don’t. You have more to lose if you don’t, just saying.

  94. Poppy….what strategy…? These crooks broke the law and committed numerous felonies at the onset of their criminal fc complaints. They entered copies of legal docs and checks they already cashed…UNINDORSED……..counterfeits and forgeries at the onset. They did not follow the FRCP at the onset and in fact committed numerous felonies so what procedure other than a motion to strike and dismiss their phony, fraudulent complaint with prejudice and title cleared to us, all costs of the case including the property taxes assessed to the plaintiff with compensatory damages & other equitable relief to us, the harmed party. There are a multitude of felonies upon presentment of their case. They need to be held to account.

  95. I agree..there is far more damage than the house. And they need to pay, burn in HELL for their sociopathic behavior.

  96. Sage v blagg 9th circuit

  97. And they destroyed our good names…26 years of never being late on a bill and now they think they are going to label us deadbeats…? Or force me to file bankruptcy for their crimes…? OH HELL NO…! I for one, will not allow these crooks, these degenerates, who commited massive criminal fraud in my name, without my knowledge, steal everything from me and put a false and derogatory label on me.

  98. Like. Watch my case

  99. I haven’t said much about that here, but I studied the law for 2 years. I’ve been rereading my Federal Rules of Civil Procedure and contract law, brushing up..still doesn’t mean a win, but what people are not getting is strategy is a must, spending their money is another (diminishing returns), it is not just about the law. That why I keep telling as many as I can…Federal Court is much more like a Judicial Foreclosure. The District Courts are very, unstable in their logic and most of the District Judges are not familiar with much of the law, regarding this process and a quiet title is not a fix for the contract.

    No genius here…non-lawyer, but am very strong in my complaints and pleadings. My son reads a lot of the paperwork and is one of the best I ever seen analyzing the stuff. Believe or not, much of the information is right in their responses and the paperwork from the beginning. The work is exhausting…even if we lose, I cannot imagine doing much more than we’ve done. That’s has to be good enough, it is only a house.

    Moreover, I am more concerned with my freedoms right now. I see what you see. Government is in everything. The worst I’ve ever seen in my lifetime and 90% of the public is sleeping. I don’t get it, really I don’t.

  100. Then its hand me my title & monetary compensation for all the fraud you crooks committed in my name, without my knowledge and for trying to STEAL MY ROOF & MY BUSINESS…..YOU DIRTY SWINDLING THIEVES…..

  101. Poppy…you don’t need a law degree to get what they did was criminal and intended to harm. That is what they want you to believe…you don’t know the law…..the truth is most people don’t. But if you do …..the ball is in your court…now you tell the judge, show me the LAW that says this is legal. They can’t.

  102. Time WE THE PEOPLE stood up and told these greedy bastards to hand us back our stolen property clear our titles of their CRIMINAL FRAUD plus compensatory damages and other equitable relief for the harm they inflicted and intended to inflict by many CRIMINAL deceptions. This was not negligence….this was INTENDED….IT WAS CRIMINAL…AND THEY INTENDED TO DO PERMANENT HARM…They intended to bankrupt us to steal our property and make us into a NATION OF RENTERS…..WHY do they want to steal your roof..? Because., when they commit massive fraud to steal your wealth., livelihood and property, they steal your freedom.

  103. Have to say opinions, don’t want to get bit for practicing law here…I know the truth and have 95% of the documents to prove it. Problem, the judges, pensions are hooked to the MBS’ and they are freakin’ cowering and not following the LAW. Most of them need to be removed, PERIOD! Fired actually!

  104. Poppy….opinions and deceptions are 2 different things. When you read between the lines none of this crap is based in law in fact. These foreclosures are criminal and even when these crooks get caught and are forced to give back the property they stole, they are being allowed to get away with not justly compensating the harmed party…..WHO ARE ….WE THE PEOPLE…THE STAKEHOLDERS… these crooks destroyed peoples lives by destroying their wealth by committing massive fraud in our names and being made to give the destroyed, desecrated property that has little value except it is shelter but, and it is also a tax cow for the political and other investor crooks who robbed us….That is not just compensation. Not by a long shot. These attorney’s are not seeking real justice….monetary compensation for harm done and that is wrong.

  105. They’re picking up in Miami too…they say hundreds of thousands this year. Jeez! What I really struggle with is the long term effect of this…these title issues will be floating around for a decade, clouded. The government needs to protect its citizens, because this affects millions of homeowners, not just us here.

  106. Terrible! Foreclosure seriously picking up in Ohio, at the hands of the most notorious foreclosure mills. And to top it off, once they have foreclosed, they are now filing quiet title. Not a good news, despite the Schwartzwald win…

    Pitchfork time?

  107. Everyone here is entitled to their opinion, of course, but I think many of these cases are winnable. And further, the cases need to be removed to Federal Court…this is where you have a chance of discovery, if the right questions are posed. I kill them with QWR’s…everyone I get is different. How can that be…because some foolish clerk makes a mistake. Just that will lend itself to many questions…just my pennies worth.


  109. No ones buying what you are selling Christine….Its evil and criminal by its deception. You are not fooling me ….you are trying to make people believe they can’t win or sending them on wild goose chases. Stick to the facts people. The case ending fraud is at the onset.

  110. Christine….you are the definition of insanity… are a chronic deceiver and liar. A complete psychopath selling your own psychopathy like a psychotropic drug. You are a psychotropic drug dealer peddling lies and deception to defraud. You are a sick criminal whose lies needs to be stopped.


    Pursuant to Sixth Circuit I.O.P. 32.1(b)
    File Name: 13a0016p.06
    No. 10-3416
    Appeal from the United States District Court
    for the Northern District of Ohio at Cleveland.
    No. 09-01262—Christopher A. Boyko, District Judge.
    Argued: March 8, 2012
    Decided and Filed: January 14, 2013
    Before: GRIFFIN and KETHLEDGE, Circuit Judges; and THAPAR, District Judge.*

    For these reasons, we hold that mortgage foreclosure is debt collection under the Act. Lawyers who meet the general definition of a “debt collector” must comply with the FDCPA when engaged in mortgage foreclosure. And a lawyer can satisfy that definition if his principal business purpose is mortgage foreclosure or if he “regularly” performs this function. In this case, the district court held that RACJ was not engaged in debt collection when it sought to foreclose on the Klie property. That decision was erroneous, and the judgment must be reversed.7
    The district court declined to exercise supplemental jurisdiction over Glazer’s state-law claims after dismissing the federal ones. See 28 U.S.C. § 1367(c)(3); Musson Theatrical, Inc. v. Fed. Express Corp., 89 F.3d 1244, 1254–55 (6th Cir. 1996). Because we have revived some of Glazer’s federal claims, it is appropriate to reinstate his statelaw claims as well, including those against Chase. Cf. Briner v. City of Ontario, 370 F.App’x 682, 707 (6th Cir. 2010).
    For all these reasons, we affirm in part and reverse in part the judgment of the district court. The portions of the judgment dismissing Glazer’s FDCPA claims against Chase and denying Glazer leave to amend are affirmed. The portion dismissing Glazer’s FDCPA claims against RACJ is reversed. The portion dismissing Glazer’s state-law claims is vacated. The case is remanded for further proceedings consistent with this opinion.

  112. Obama said today…”These bills have already been racked up and they have to be paid”….NEWSFLASH OBAMA….Wall Street racked up these bills by robbing us, forging our signatures and counterfeiting documents without our knowledge. SEND WALL STREET THEIR BILLS…

  113. Robot,

    Keep me out of your insanity.

  114. These crooks have blindsided millions of Americans into believing these properties have value. The only value left, is what the vultures are willing to pay for THE STOLEN PROPERTY OF THE AMERICAN PEOPLE…..these politicians have stolen the property of the American People and turned America into a giant criminal fencing operation disguised as doing legitimate business. It is criminal.

  115. Christine…..The FED & THEIR INVESTORS FRAUD IS FRAUD and IT IS CRIMINAL and FELONIOUS….3 FELONIES = LIFE IN PRISON…They are extremely arrogant and never thought WE THE PEOPLE would catch them. They severely underestimated their opponents.

  116. There are no reputable investors. These are vultures. These are the STOLEN PROPERTIES OF THE AMERICAN PEOPLE. There will be a day of reckoning for ALL crooks. They can’t deny knowledge that what these politicians are doing is criminal. Foreclosure is being used as a bogus operation of is all fraud. These investors should be jailed for buying stolen property. Stealing is criminal and it is a sin and fixing up stolen property is just as despicable. Greed is a deadly sin. Anyone with any moral values whatsoever would not even think to do these things. They will all have hell to pay one day.

  117. Kinda off topic… although banks fraud is never really. Fraud is fraud. Amazing that, even after signing agreements, banks go ahead and resume their hanky panky. To read the entire article, click on the link. That thing was too long to post in its entirety.

    Investigation: 5 Banks Accused of Fraudulent Foreclosures in MA

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    Monday, January 14, 2013

    GolocalWorcester News Team

    Five of the nation’s largest banks are now violating an agreement with the federal government in Massachusetts, according to an investigation of local foreclosure affidavits conducted by GoLocalWorcester.

    The investigation involved nearly 200 affidavits from Ally, Bank of America, Citi, Chase, and Wells Fargo filed with the Registry of Deeds in Worcester and Essex Counties and found that these documents had been expedited and signed without required knowledge of the signer, which is in violation of federal standards banks agreed to uphold with the federal government.

    Housing Attorney, Tom Vawter of Newton, MA said that there is no way they comply with the standards the banks agreed to uphold. He surmises that economic gain is behind the banks’ behavior, which nullifies many of the reasons behind the Monitor’s established agreement with the banks.

    “In order to sign these affidavits under personal knowledge, they would have needed to be at the foreclosure sale. The knowledge that this person would need to have would likely be more than what one person has,” he said, comparing these incidences to hearsay. “Their affidavit is not based on personal knowledge, but by review of the file in the office. They didn’t review anything at all.”

    Essex County Register of Deeds, John O’Brien, said that this situation and scale of fraud is “appalling,” and that their broken promises are hurting homeowners.

    “The banks have decided to have attorneys sign these, but they weren’t at the foreclosure sale, so they don’t have personal knowledge of that,” Vawter said, adding that in most cases, the person signing the affidavit has no idea what they’re signing, putting homeowners at risk.

    The Agreement

    The standards were dictated by the Office of Mortgage Settlement Oversight, and observed by the Monitor of the National Mortgage Settlement, Joseph Smith, and states that banks must ensure that foreclosure affidavits are carried out by an individual who has personal knowledge of the foreclosure, but according to the documents, these affidavits do not uphold that agreement.

    Smith released a statement in response, saying, “These types of allegations are serious and may be violations of the settlement. Information of this kind from people in the marketplace is critical to my ability to oversee the settlement effectively.”

    He added, “If I find that there are patterns and practices of noncompliance with the settlement, I will use the tools at my disposal to get the bank in question to remediate the violation and, if necessary, seek redress, including substantial fines or injunctions, through the court that has jurisdiction of this matter.”

    Essex County Register, O’Brien, said that the agreement the banks signed has turned into a “total sham.”

    “The total disregard by these banks for the integrity of the land recordation system is appalling. I look forward to the day when all levels of government take this fraud as seriously as we do and work together to put a stop to these illegal practices once and for all. I am pleased that we were able to provide our records as evidence of this continuing fraud,” O’Brien said. “The public knows that the banks are still acting illegally no matter what they say to the contrary.”

    Vawter said that it is not uncommon for the signer’s knowledge to be completely based on documents they may or may not have seen – making it impossible for them to have personal knowledge of the affidavits they would sign.

    “They haven’t changed their ways at all,” he said of the banks. Vawter said that banks are likely acting in this manner for the cost benefits.

  118. @Eule reputable investors would buy the house which needed work (this is both subjective as well as having knowledge of what areas of a house are worth fixing for maximum resale price) and what the public is looking for. A house can go up significantly in value if the work done on it (both cosmetic and necessary) is done with quality and some high-end feature is added, i.e. granite countertops, fully tiled (expensive & attractive) bathrooms. I watched people buy the house across the street because it was cosmetically attractive and then have to replace the furnace and duct work. Oh, well. The appraisal on my own home was bogus. The appraiser as last seen was being investigated.

  119. If they were to appraise properly, their show would be over. That is also why there has not been any audits. If the truth were told that the banks fraudulently induced millions of people to sign bills of credit, disguised as mortgages, that they fully intended to destroy the value of the credit they issued, by stealing our wealth from the Treasury, pocketing all payments, and converting those credit slips into stocks and bonds via Wall Street and overissue them as securities to the tune of $700 trillion dollars backed by ZERO COLLATERAL. Then when the ponzi scheme destroyed the value of everything, they would dump their fraud by Insider trading, extort the bailouts, collect the insurance money, hijack the Treasury and extort $60.4 trillion more dollars of our wealth plus steal 20 million properties. The FEDSTER crooks destroyed the value of everything and continue to rob us of everything disguised as the U.S. TREASURY DEPARTMENT. Now if that’s not criminal, nothing is.

  120. how this work ? B of A sold the house in 8/1012 for $ 100,000.00
    to a wholesaler ,and he sold the house last week for $ 170.000.00

    1. Wells Fargo Bank contracted services from James Ebert of Ebert Appraisal Service INC. (EAS) to conduct an appraisal of the “Property”. James Ebert and Dalia Warren (Wells Fargo’s Private banker) personally told FAGAN that the appraised value came in at $2,100,000. Throughout the VSAC, FAGAN specifically pleads multiple reasons for why the appraised value was hyper inflated and could not have possibly been considered a ‘credible appraisal’. (VSAC ¶ 71 to ¶ 95 & Ex. J re: OREA)
    2. FAGAN alleged that James Ebert’s appraised value was intentionally and recklessly misstated fraud by knowingly and artificially inflating the value. FAGAN contends that ANY errors, omissions and unprofessionalism behavior reflected in an appraisal could be construed as inappropriate and intentional and misleading and thus could be considered a violation of USPAP (Uniform Standards of Professional Appraisal Practice) Moreover, through discovery FAGAN received two additional appraisals dated Dec. 8, 2009 and Jan. 20, 2011. The Dec. 8, 2009 appraisal estimated the value of FAGAN’s home to be $, and the January 20, 2011 appraisal estimated the value of Plaintiff’s residence to be $. (VSAC Ex. K, L, M, N, & O) Both appraisals were nearly $1,000,000 less than Ebert Appraisal Service’s May 16, 2007 appraised value. Such a decline in value was not based on market conditions alone but rather is further compelling evidence of the hyper inflated value that Ebert Appraisal Service, created on May 16, 2007 and than knowingly communicated that falsity to FAGAN prior to the execution of the loan. (VSAC ¶ 71 – ¶ 95)
    3. Because James Ebert of Ebert Appraisal Service contacted FAGAN, EAS owed a duty of reasonable care to FAGAN to provide accurate and complete information about the value of FAGAN’s residence. James Ebert recklessly and repeatedly misrepresented and/or omitted material information about the true value of FAGAN’s residence prior to FAGAN making his decision to further encumber his property.
    4. This fraudulently inflated appraisal induced FAGAN into accepting such a large loan by assuring FAGAN at the time of the loan that his collateral was sound. This inflated appraised value was indeed the substantial factor, which affected FAGAN, as without such an appraised value being told to FAGAN, FAGAN would not have doubled his encumbrance. (VSAC ¶ 71 to ¶ 95)
    5. Ebert Appraisal Service and Wells Fargo Bank knew and could foresee that this would indeed cause FAGAN to over encumber his property thus making the obligatory interest payments higher and to the actual loss of unencumbered equity. (VSAC ¶ 89)


    A. The USPAP standards have been adopted by most states including California, and FAGAN’s VSAC ¶ 71 through ¶ 95 clearly shows multiple areas where James Ebert of EAS violated his oath to follow these minimal standards of professional appraisal practice and thus ultimately failing in its ability to produce a “CREDIBLE APPRAISAL” of FAGAN’s subject property.
    B. Ebert Appraisal Service was not allowed to communicate assignment results, or write a report in a misleading or fraudulent manner, and must not permit an employee to communicate a misleading or fraudulent report. All of which, was properly alleged in FAGAN’s VSAC. Additionally, the VSAC alleges triable issues that the appraisal was intended to induce FAGAN to enter into the loan transaction or to assure him that his collateral was sound. Thus failing to abide by his USPAP oath to remain unbiased and neutral when formulating an appraised value.
    C. Fraud has been stated with specificity and damages are presumed as a result of the encumbrance being increased by almost 25% more than was originally applied for. Thus ultimately diminishing FAGAN’s equity and increased his future repayment obligation with higher interest costs and principal repayment. The loan application specifically identified that $ was being applied for, and yet after the hyper-inflated appraisal was submitted to the Wells Fargo, Wells Fargo offered FAGAN an additional $. (VSAC ¶74 and VSAC ¶88) Both Wells Fargo and Ebert Appraisal Service contacted FAGAN by telephone to inform him that the appraised value came in at $. FAGAN was also not aware of the true facts of the appraisal until approximately two years later. (VSAC ¶ 14, ¶ 15 and ¶16) Fagan would not have agreed to encumber his property, but for Ebert Appraisal Service’s appraisal fraud and Wells Fargo’s failure to act within the scope of a normal lending institution. (VSAC ¶ 71, 74, 83 to 95)
    D. Under California law, the question of whether FAGAN acted reasonably regarding his duty to mitigate damages is one of fact. Ortiz v. Bank of America Nat’l Trust and Sav. Ass’n, 852 F.2d 383, 386-87 (9th Cir.1988).
    E. Appraisers, like real estate brokers, have a “statutory duty to the public” and are expected to be “honest, ethical, and competent.” Hermansen, 2002 UT 52 at P22 (quoting Dugan v. Jones, 615 P.2d 1239, 1248 (Utah 1980)); USPAP Ethics Rule cmt. (2006)

  122. After gathering paperwork from my work product, going back to the initial sale and before, I found a loan on the property for $159,400.00, when the market where I was buying would only yield an appraised value of $99,000.00, dated, out of code, etc…the loan was for 10.5% and the title work is a mess. Assigning from grantor-grantee the same company, the VP of the loan company is the trustee, found the same cats, after filing bankruptcy in early 2009, opening an office in Juneau, AK and filing deeds up there, behind the bk order, of course with loan numbers changed. Blows my mind, what going on.

    This goes to BOA, N.A. now and whether or not the property was ever acquired lawfully, with a clean title. Hmmm, this ought to get interesting now. And then, a tidbit here, they changed the substitute trustee and had a hearing, while I was under bankruptcy protection in 2009 and the previous owners/owner signed the note without his wife, but the deed of trust is in both names, while he died prior to the previous foreclosure and they enforced the note for the sale, without the wife being named on the loan.

    Point; do your homework folks, the information is in the beginning or before. Check the court house and special proceedings, as online they only give a tad of what is in the file.

    In my humble opinion, as I have stated numerous times, this is a contractual issues. They have so many breaches of contract law…it’s crazy.

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