Student Loans, Housing and Poverty in the U.S.

“Bottom Line: Foreclosures need to stop, student loans need to be modified and return to pre-2005 rules for dischargeability, wages need to rise and the number of people earning wages needs to rise. If you don’t have those ingredients, the economic “recovery” will forever be fragile and will forever be in danger of a much deeper collapse than we saw in 2008 because underlying conditions are worse. That’s why American companies are holding trillions in cash and assets overseas. They don’t trust us anymore.” — Neil F Garfield, livinglies.me

For assistance with presenting a case for wrongful foreclosure and student loans, please call 954-495-9867 (East Coast) 520-405-1688 (West Coast), customer service, who will guide you to our information resources and upon request put you in touch with an attorney in the states of Florida, Tennessee, Georgia, California, Ohio, and Nevada. (NOTE: Chapter 11 may be easier than you think).

Editor’s Analysis: According to the official figures there are around 50 million people living below the poverty line. Surveys show that the number of people who can’t buy essentials for their family actually total close to 150 million people, which is half the country. The unemployment rate, if one were to add the number of people who are underemployed or who have given up looking for work, is probably over 20% — 60 million people!

The chasm referred to as income and wealth inequality is growing daily. $1 trillion in debt burdens students who could be far more productive. Until 2005, this debt was dischargeable in bankruptcy. But the banks managed to get changes made in the bankruptcy code equating student debt with alimony and child support and further requiring means testing in chapter 7 thus inhibiting the discharge of debts on credit cards charging 20% or more per year in interest and medical costs, which if you read Brill’s article in Time Magazine last week, are marked up 3000%.

Some $13 trillion in mortgage loans were faked and the banks continue to lie to the President, the Congress, the state legislatures, governors and Attorneys general.

If you add it all up, it isn’t hard to see why economists refer to the “recovery” as fragile. If you ask me it is unjust, wrong and impractical to continue on the same path we are on in the hopes that down the road somehow we will grow out of the problem we have — an economy that benefits a few people while the number of people falling behind, with lower and lower wages and decreased accessibility to credit increasing every month. Billions are added each month in student loan debt which is fast becoming a cancer on our society simply because of the new bankruptcy provisions.

The 7 year experiment in making student loans non-dischargeable is a miserable failure. It is a major contributor to the impending decline in the credit rating of the what was once the strongest nation on earth in every way. Because we allowed the banks to get the TARP funds and all the other forms of bank bailouts, and because we ignored the real victims — the investors and the homeowners who were tricked into deals that could not possibly work, the foundation of the country has been so undermined that we now rank #10 behind France and Spain in upward economic mobility. That means that the chances are better in those countries to climb the ladder of success than they are here.

This is not a piece suggesting we convert to socialism as our economic path. It is rather a call-out to our government that it cannot continue to bow to the will of the banks and expect the country to hold together. With half the country gasping for air, we must jettison our ideology and go for the practical solutions — most of which already exist or existed until a short while ago.

The problem is not that capitalism isn’t working. The problem is that capitalism is being used as a cover for the creation of illusions of prosperity and the reality of a near fascist state. That is what happens when someone corners the market on oranges and that is what happens when the someone is allowed to corner the market on money. And THAT is why we need government regulators and legislators who are NOT permitted to go through the revolving door from government to business and back again. If you take the referees off the field, don’t be surprised with what happens next.

For better or worse our economy is still 70% dependent upon consumer spending. Yet we pursue policies that diminish the ability of consumers to spend and diminish the number of consumers. The fact that there is still some muscle in the our system is testament to our inner strengths and prospects if we make the necessary changes to our democratic institutions and reign in those who are admittedly too large to govern or regulate.

Despite the obvious fundamental defects in the loan originations and transfers of loans that were the products of imagination and illusion, we treat them as real and even sacred. The playing field has been tilted so that all the benefits roll into one corner while the rest of us scramble to  make ends meet. The risk factors in any loan or program have been pushed entirely over into the public sector when the government should be able to stop the foreclosures, cure the student defaults and renew the progress of wage growth.

The keys to end this nightmare here and abroad is housing, student loans and employment. Students who have unpayable student loans are refused employment because many employers do credit checks. The same holds true for the millions of Americans who have been victims of fake foreclosures by strangers who never put up a dime to fund or purchase the loan and then submitted a credit bid at the “auction.” The private student loans arose because somebody thought it was a good idea to raise the cost of student loans by inserting profit seeking banks as intermediaries. Now that is corrected as to future loans, but it does nothing to correct the problems of past mistakes by government.

This isn’t just theory. Trillions of dollars are being held off shore by companies who legitimately are not convinced that the U.S. will actually pull out of this spiral anytime soon. So they are investing in capital and labor elsewhere. No effort has been made to claw back the trillions of dollars that disappeared in the maelstrom of the mortgage meltdown. Those funds are hidden off shore too.

And even more importantly, no company wants to invest in a marketplace where the laws are not enforced with consistency. If you speak with many CEO’s in private they will tell you that jail time for bankers would be a stimulus to confidence in the U.S. marketplace. What we have is a marketplace without boundaries as to the the fraud and other criminal behavior that was never before tolerated in our system.

Large and medium sized organizations holding trillions of dollars in liquid assets and other investments overseas see this very clearly. They have no more reason to commit to the U.S. economy than they do to any other banana  republic.

Why Student Debt Will Make U.S. Insolvent
http://www.business2community.com/finance/why-student-debt-will-make-u-s-insolvent-0430373

Wall Street turns profit in student loan debt
http://www.wsws.org/en/articles/2013/03/11/loan-m11.html

Student Debt Crushes Borrowers And Threatens The U.S. Economy
http://www.addictinginfo.org/2013/03/09/student-debt-crushes-borrowers-and-threatens-the-u-s-economy/

http://blog.credit.com/2013/03/do-we-need-to-change-bankruptcy-rules-for-student-loans/

Don’t Panic: Wall Street Is Going Crazy For Student Loans — But It’s Not a Bubble http://www.theatlantic.com/business/archive/2013/03/dont-panic-wall-street-is-going-crazy-for-student-loans-but-its-not-a-bubble/273682/

You Know What Sucks? Your Student Debt. You Know What’s Great? The Solution.
http://beingliberal.upworthy.com/you-know-what-sucks-your-student-debt-you-know-whats-great-the-solution-2

62 Responses

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  2. christine, thanx for the info you post by the way,
    no i dont care if they care, i care that the poor guy died fighting them , but on the other hand , he did fight, as sick as he was he stood up and fought…im still getting to grips with that, he fought with his last breath, whilst others sit on their bums with nothing else in mind…sad

  3. Correction…the FRAUD IN THE FACTUM is evidence of the beginning of the destruction of our property values. The bank owners furthered the destruction of our property values via Wall Street and finished off the garbage they created in their manufactured stock market crash of 2008…the robbery and destruction of We The People has gone on unabated ever since.

  4. These crooks will stop at nothing to enforce the bank owners fraud contracts. They evil jerks have a lot of evil tricks up their sleeves. Nothing changes the FRAUD IN THE FACTUM…and that destroyed our property values and it is not hard to prove. Because of the FRAUD IN THE FACTUM…there is fraud apparent on the face of every element of this scam. Once you know that, they can’t conceal it.

  5. If a Buttwipe tells you that you will be responsible for all the closing costs if you do not sign. Tell the Buttwipe he is Full of Shit and Remind him that if you do not sign because of lender error or fraud … its his problem NOT YOURS! Tell him to refund any monies you may have paid in advance and if he refuses… Tell Him … You will Sue His Ass Off in Court!! Flush!!

  6. TeeHeeeHeee ….. Brokers go Pfffffffff’ed if the borrowers rejected the refi offer because the loan terms offered and the loan terms on the final docs were different. Bait & Switch. Yep! Yep! I like Bait and Cancel Better! They get to clean up the Mess! Yep! Yep!

  7. @JG…. Broker policy was that the buyer/borrower had to use an appraiser from the lenders ut umm…”Qualifed and Approved” List. I know folks who paid for an appraisal in advance of a refi using the broker/lender appraiser. The borrowers rejected the refi offer before signing. They requested copy of appraisl that they had paid for. But the appraisers refused to give it to the party who paid for it … they said only the party who ordered it was entitled to get copy from them. Imagine That? The borrowers got their money back from the broker for the appraisal without ever getting a copy of the appraisal. 1st Red Flag of a Scam ……. the broker wants monies upfront. I would go on and tell you about multiple cases where borrowers rejected the refi offers at closing and did not sign …… Only to get FC on by a lender they rejected to offer from. Some folks dont take rejection very well. Nope! Not at All!!

  8. Of course, almost all of their fraud is done electronically. The bank owners want no paper trail of their crimes. All they need is our signatures to destroy. Personally, I would never do business with them again. I don’t know why anyone would. They have zero integrity and can’t be trusted at all. Their entire business model is highly destructive to mankind.

    FOX Business reported yesterday, billionaire John Paulson, after making all of his money off the backs of all of us, (their exact words) is moving to Puerto Rico to avoid paying taxes. They said they don’t blame him though, the tax money they take goes for nothing good.

    That’s right, these corporate heads torched the place and are now leaving to watch it burn down from an exotic and remote location. Sooner or later there will be head hunters on their trail because the dirty crook screwed everybody.

    Glad to hear Mayor Bloomberg got put in his place about the ban on large sugary drinks. All of these idiots need to go be dictators somewhere else.

  9. e-recording is here:

    http://www.sourceoftitle.com/article.aspx?uniq=7515

  10. This is the original decision in Brown v Quicken with the 3M award for fraud and predatory lending. The appraiser apparently settled for around $700,000. On appeal, the SC of WV remanded with orders for the lower court to adjust the damages to include the 700k since the damages were the result of the same incident (Quicken’s damages are to be reduced by that 700k from the appraiser way I get it).

    http://www.scribd.com/doc/129888902/Brown-v-Quicken-Loans-3-Million-Award

    This could almost be called our own White Paper about predatory lending. lay opinion, of course. I have the utmost respect for the attorneys who took this case on contingency.

  11. And did NG say that the investors were the actual lenders but they are not paid pursuant to the notes, but by other means – the rate of return on whatever the heck those “securities” are?

  12. TU – my lay person reading of that is that banks may own real estate for a certain amt of time after f/c or dil. But, interestingly imo, the info repeatedly makes note that this is in regard to the same bank which originated the loan. I think we’d have to see 122(a)(1) for much more discussion. Maybe you can find it. Odd matter being considered just now, btw, since it’s been going on for years. Banks aren’t to own real estate for profit. hmmmm…..

    You know, I read NG’s deal the other day
    about what happened and didn’t, and I still don’t get what he is saying.
    Did he say: WS took the investors money which was supposed to be deposited in a trust account and mol swapped for loans, but WS instead took the money, put it in a diff, non-trust account which by some common law created a partnership, and used that money after devouring a goodly amt of it to directly fund loans at closing from that account?
    And he is further saying that there’s a paper / wire trail to prove it? I’m not saying I agee or disagree as I have no way of knowing any of that, just like most of us, I just want to know if that’s his theory of the crime.

  13. More threats from North Korea…not believing they are that stupid. However, I do believe the bank owners want a reason to openly declare martial law on US. The covert war is not working out so well lately. My new motto…when it makes no sense, it’s the bank owners.

  14. On contingency that can only mean one thing… there is something in it for them. I can’t see an attorney wasting their time otherwise. They have to eat too.

  15. I think they are just showing off their corruption jg……it’s a sickness.

  16. I always wondered about them and those yourgages…cough, cough…that always sounded shady to me..

  17. Trespass…all I can say to that link is WOW….what a crock of b.s…like any of these banking practices are legal….? They issue credit, they don’t lend us any money and the property is our collateral that we hold title to as insurance because the bank was the borrower in our names….upon discovery of their default and subsequent numerous frauds they committed in our names they are toast. Now what are they saying about banks lending money to third parties to purchase their own securities frauds by proxy….? What in the hell…? I don’t know what they are trying to tell them to do or not to do but, it doesn’t make sense ..these are debts the banks owe us on their balance sheets, not their assets. They sure owe the IRS a ton and our properties are not their collateral because of the Origination Fraud….The FED BANKS DEFAULTED and destroyed their lien because they never paid for anything. The IRS should audit the Issuers of the Original Bills of Credit….and leave us out of the family feud. We were not a party to the banks fraud…we performed on our end of the fraudulently induced contracts but the Issuer did not.

  18. This cracks me up. You gotta read it. Quicken Loans was nailed for around 3M for predatory lending / fraud. An affiliate did the appraisal and brought it in for 181k. The real value was around 42k! They gave this poor woman an ARM @ 9.75% with FOUR points, a forty year amortization, and a balloon after that over 100k! When I have time, I’ll link the decision (appealed, of course) which lays out the fraud in the origination, but for now, look at Quicken’s callous, imo major bs release in defense of its behavior:

    http://wvrecord.com/news/233771-quicken-loans-on-losing-end-of-3-million-predatory-lending-verdict

    By the way, I learned something new here. Attorneys can get something which is over and above their fees and costs when they take a case on contingency (looks difficult, tho) called a contingency xxxx (I forget the word of course). The appeal court shot that goodie down, but I suspect the borrower’s attorneys aren’t done fighting. Lead counsel was awarded 450 per hour, next guy 250, others in the office 175.

  19. A terrible message has been sent by the government….that a crime is only a crime if committed by an ordinary citizen. The moral compass lies in some dumpster somewhere.

  20. “Two months later, Saxon assigned the deed of trust to Deutsche Bank, retroactively to about three months earlier.”

    This is from a recent AZ case. I recently read and to my woe didn’t save a case which said a dot is to be treated like a deed. The operative factor for conveyance when it comes to a deed is delivery:
    the transfer becomes effective upon that delivery and not sooner.
    If that’s true for dot’s, then this back-dating rubbish should be called what it is.
    NG, maybe when you have nothing else to do (!), you could
    find something(s) on point. In this case, the bankster, at the time it substituted the dot trustee, was sans the assignment of the dot. Only the ben may substitute the trustee. Don’t know how they pulled this one off since I only read a review, but it’s a load. I shouldn’t be surprised by now at that gang’s willingness to do anything at all, yet I am. We sit next to these guys at football games, run in the same marathons, look at the same moon – these are our fellow countrymen. Hard to take even after all this time.

  21. Most people don’t know the first thing about filing a lawsuit and wouldn’t know on what basis to file a lawsuit or who to file it against…. I haven’t heard of any attorneys willing to sue any of these entities. Maybe we should sue the bank owners like baron de Rothschild…..he is supposed to be worth $60 trillion.. oh hell, lets just sue the World Bank, the City of London.. and the Bank of International Settlements for fraud and money laundering…Lets sue the whole freaking cartel of worshipful mercers who robbed us, and all of their bitches..Why chop off the tail, lets lob off their heads…..!

  22. This link is in the aforementioned kpmg article
    http://www.irs.gov/PUP/foia/AM2013-001.pdf

    My brain is on pause. So much in there, I don’t believe what I’m reading in the couple of pages.
    ————-
    Assuming that Bank holds OREO for sale to customers in the ordinary course of business within the meaning of §1221(a)(1), the sole question is whether Bank acquired that OREO for resale. In determining whether property is acquired for resale, the regulations under § 263A provide a special rule for banks and others that originate (and generally sell) loans.
    As provided in §1.263A

    1(b)(13), the origination of loans is not considered the acquisition
    of property for resale, notwithstanding the frequency with which the taxpayer sells the loans it originates or the percentage of its originated loans that it sells.
    As a result of the special rule in § 1.263A

    1(b)(13), Bank’s activity of originating loans is not considered the acquisition of property for resale within the meaning of §263A(b)(2)(A). Thus, Bank’s acquisition and sale of the property securing the loan do
    not convert Bank into a reseller if the foreclosure or deed-in-lieu of foreclosure and subsequent sale of the OREO are properly viewed as an extension of Bank’s loan origination activity.
    —————-

    Isn’t there a law that if One does something they do not have legal standing to do, the contract is void at inception?

    Banks are not in the foreclosing business, they are in the lending us money created out of thin air business, charging us interest they didn’t create so we’d have to borrow to pay the interest to keep the debt monster growing. I request $100. They type $100 in a computer and tell me I have $100 and owe $106. To pay the $106 means someone else who is paying their loan will have to pay it off first which will leave me without enough to pay the $6 and I’d have to borrow at interest to pay it, or I pay first and leave them without the money to pay off their loan plus interest since we “so called quote” borrowed money and the money was created but the interest was not. He who pays first pays off and the other files for bankruptcy because they can’t get the money to pay unless they borrow and they can’t borrow since they didn’t pay off the interest on what they borrowed.
    This scam should have been stopped a long time ago.
    It’s an abomination of the Creator within, to have people born into an agreement made by men long ago, or long dead, or no longer serving as representative of the people as we deal with what they created!

    Trespass Unwanted, Corporeal, Life, People, Free and Independent State, Alive, In Being, In Jure Proprio, Jure Divino

  23. IMHO…I see it as the bank owners worship Gold, Oil and Drugs….those are their GODs. They rob us to fund their operations through wars… they use secrets, lies, fraud and deceit….such as progressive taxation, social programs, the issuance of credit, they use Wall Street to invest in everything we pay for, save and Labor for. It’s a big swindle.

  24. What does it mean?
    Is this proof, they had no standing to sale? Does this void the sale even if the presiding judge of the courts are too ignorant to know real estate, contract, trust, or tax law?

    March 4: The IRS posted an Office of Chief Counsel memorandum* concluding that real estate acquired through foreclosure proceedings or by deed-in-lieu of foreclosure by a bank that originated the underlying loan is not property acquired for resale pursuant to section 263A(b) (2).

    *The memorandum is legal advice, signed by executives in the National Office of the Office of Chief Counsel and issued to IRS personnel who are national program executives and managers. The memo is issued to assist IRS personnel in administering their programs by providing authoritative legal opinions on certain matters, such as industry-wide issues.

    http://www.kpmg.com/US/en/IssuesAndInsights/ArticlesPublications/taxnewsflash/Pages/irs-bank-foreclosed-real-estate-not-property-acquired-resale-section-263.aspx

    Trespass Unwanted, Corporeal, Life, People, Free and Independent State, Alive, In Being, In Jure Proprio, Jure Divino

  25. Deb,

    “…our lives do not matter to them…” Why should you carer if you matter to them or to anyone else? Freedom is not something you beg for. it is something you reclaim and fight to keep.

    Except that so few of us actually fight that it will take longer than if everyone did. This whole charade could have been brought to a halt by everyone simply filing suit all at once. Just 500,000 lawsuits filed in one day nationwide would seriously hinder the judicial system. A million would be much better but… people are cooking in their fear. They wait for government to handle everything…

    Ain’t gonna happen. We are the people we’ve been waiting for.

  26. @ carie
    thanks for posting the story. we all must understand that the monster that we refer to as THEY or them do not think people matter they worship wealth and power…we , the people do not matter, our lives do not matter to them, our suffering does not matter, in their minds we are sacrificable to meet the needs of their greed and power, they are raised this way, become this way, are lost and not able to relate to love, real love because they love something that takes that capacity away from them, so people die because its more important that they get that friggin condo of a disabled man. god rest his soull.

  27. Right on L. Randall Wray and that is in fact, criminal. These frauds were not even “red flag” securities, securities with undesirable characteristics ….or poorly rated securities …. these were Securities Frauds, complete frauds that were overissued by the bank owners by many proxies as Investment Securities. Our autographs were unauthorized and were used to commit Securities Fraud with counterfeit securities with our forged signatures.

  28. Two years later and nothing has changed…theft as usual with no let up in sight…

    http://www.huffingtonpost.com/l-randall-wray/requiem-for-mers-and-the-_b_812940.html

    “…The problem is not just the “reps and warranties”–an even bigger problem is that the securities are not backed by mortgages…”

    –L.Randall Wray

  29. Where are the States Attorney’s and the U.S. Marshalls…..? These crimes were committed on U.S. SOIL ….. the banks violated numerous State Laws and U.S. Laws….Fraud, Forgery, Counterfeiting, Intent to Deceive, Recording of Fraudulent Documents in Public Office to name a few of their crimes are Felonies in any State.

  30. We also need to sue these bankster crooks for the hell they have caused everyone.

  31. We need to revolt on paying everything but most people like to eat, have running water, electric and gas. People can’t afford to walk out of their jobs for 2 or 3 days and most people have no working capital to start up new businesses and live without income for an extended period of time.

  32. For Pete’s sake!!! Who pays the salaries of those morons? You do! Stop complaining because you’re too scared to refuse filing an income tax. They’ll take everything you guys give them. Nobody s putting a gun to your head to file a god damn return.

    And for those who have their taxes taken out, that’s why God invented strikes. Stop going to work for a few days and until your employer no longer takes anything out of your pay check. Smart people become self-employed. Security cost too much.

  33. Investors in (empty) mortage-backed securities are NEVER the CREDITORS.

  34. Funny how the useful idiots who work for these bank owner crooks who robbed us are the first ones to bitch & moan about people on food stamps. I hope they all go belly up.

  35. I am sure that man’s death will bring not one ounce of remorse from these crooks. Human trafficking & human sacrifice is what these crooks get off on. The CEO will probably get an even bigger bonus from the owners. This kind of stuff empowers these crooks.

  36. I decided to post this whole article because I think (I hope) it is going to be a huge story—I just heard the lawyer for this (dead) guy talking on the radio here in Los Angeles—it was the first press interview he has done, and he is being very careful…I think he is going to do whatever he can to make this story huge—hopefully he will represent the family and sue the hell out of Wells Fargo—and get some publicity for all the bank foreclosure BS…if you Google KFI radio maybe you can find the transcripts for the show…it is a perfect example of the disgusting tactics that the banks will employ to foreclose no matter what…it makes me want to throw up:

    http://www.laweekly.com/2013-03-07/news/wells-fargo-typo-victim-dead-larry-delassus/full/

    Wells Fargo Victim Dies In Court

    On the morning of Dec. 19, 2012, in a Torrance courtroom, Larry Delassus’ heart stopped as he watched his attorney argue his negligence and discrimination case against banking behemoth Wells Fargo.

    His death came more than two years after Wells Fargo mistakenly mixed up his Hermosa Beach address with that of a neighbor in the same condo complex. The bank’s typo led Wells Fargo to demand that Delassus pay $13,361.90 ­— two years of late property taxes the bank said it had paid on his behalf in order to keep his Wells Fargo mortgage afloat.

    But Delassus, a quiet man who suffered from the rare blood-clot disorder Budd-Chiari syndrome and was often hospitalized, didn’t owe a penny in taxes.

    One of his neighbors, whose condo “parcel number” was two digits different from Delassus’, owed the back taxes.

    In a series of painfully tragic events, Wells Fargo relied on its typographical error to double Delassus’ mortgage — from $1,237.69 to $2,429.13 — as its way of recouping the $13,361.90 in taxes Delassus didn’t owe. Delassus, a retiree living on a $1,655 check, couldn’t meet the mysteriously increased mortgage. He stopped paying, and soon was far behind on his mortgage.

    Delassus and his attorney did not discover until May 2010 that a mis-entered number had dragged Delassus into this spiral. As court documents obtained by L.A. Weekly show, after admitting its error, Wells Fargo foreclosed on Delassus anyway and sold his condo.

    Delassus had to move to a tiny apartment in an assisted-living home in Carson.

    Friends say he didn’t die of heart disease that day in court, as the coroner found. He was, they believe, killed by a system so inhumane that it could not undo a devastating piece of red tape the system itself created.

    “He was very sensitive,” says close friend Debbie Popovich, 59. “He was a very good person. He was kind of shy, and he had a really good sense of humor — really, he was a very simple guy who just liked to work and do his thing.”

    In 1995, Delassus bought condo No. 105 at 320 Hermosa Beach Ave. The building, a white-stucco affair with blue trim, on a busy road with a grassy divider, is unremarkable, but a view of the Pacific glints in through the beach-facing windows.

    A neighbor, who gave her name only as Kelly, says Delassus participated in the homeowners association and helped around the complex. But the Navy veteran from St. Louis often was sick from Budd-Chiari syndrome, which made simple tasks difficult and could cause mental confusion.

    “Larry loved his home,” Kelly says. “He wanted to die in that house.”

    Delassus got the first odd letter from Wells Fargo on Jan. 29, 2009. It informed him that Wells’ tax service provider, First American Real Estate Tax Service, “reported delinquent taxes for the property located at: 320 Hermosa Beach Avenue 105.”

    Delassus, told that he owed taxes of $13,361.90 for 2007 and ’08, was baffled. His attorney Anthony Trujillo, a friend and next-door neighbor, says Delassus was actually six months ahead on his taxes, which he paid directly to L.A. County.

    On March 9, 2009, according to court documents, the bank informed Delassus that it was doubling his monthly mortgage payment to $2,429.13 to recoup the $13,361.90 in taxes.

    “He came to me and told me what was going on” a couple of months later, Trujillo says. At that point, neither man knew that a bank typo was to blame. In December 2009, Wells Fargo notified Delassus that it intended to foreclose.

    Then in May 2010, Trujillo discovered the erroneous fine print in Wells Fargo’s original 2009 letter to Delassus — the “parcel number” off by two digits and belonging to somebody else.

    In court documents later, Wells Fargo attorney Robert Bailey of Anglin Flewelling Rasmussen Campbell & Trytten LLP admitted the bank’s mistake: “Wells Fargo paid the amount it determined was owed to the County Assessor: approximately $10,500. This was a mistake. The $10,500 was the tax amount owed on a neighboring property, not Plaintiff’s.” (Bailey did not address the discrepancy between $13,361 and $10,500.)

    Bailey added: “In September, 2010 Wells Fargo acknowledged its error in paying the taxes on Plaintiff’s neighbor’s property and corrected it.” By then, however, Delassus was so far behind on his mortgage payments wrongly doubled by Wells Fargo that the bank refused to let him resume his $1,237.69 installments, Trujillo says. He faced a sizable “reinstatement” cost — which is often the past due amount plus fees.

    In an unsettling new twist, Delassus couldn’t get Wells Fargo to tell him how much his reinstatement cost was. Later, in a videotaped deposition, Trujillo asks Michael Dolan, a litigation-support manager for Wells Fargo: “So Plaintiff was never provided with the reinstatement amount after the bank discovered its error, correct?”

    Dolan responds, “That is correct.”

    Delassus and Trujillo — who is a business litigator but not a mortgage attorney — could have sought help from the Consumer Financial Protection Bureau, or from the Comptroller of the Currency in Washington, D.C., says Brian Hubbard, spokesman for the comptroller’s office. But neither man knew about this outside help.

    On Jan. 19, 2011, Trujillo videotaped Delassus on the phone, quietly speaking to a Wells Fargo representative. (Wachovia merged with Wells Fargo in December of 2008.) “Wachovia’s never sent me how much my monthly payments would be, if that includes escrow or anything,” Delassus says to the bank. “I’m kind of in the dark here. Reinstatement … what would that be?”

    After being transferred to another representative, Delassus says to Trujillo, “The music’s gone, but nobody answers. I think we’re disconnected. Shit. Hello? Hello? Dial tone. Fuckers.” Six days later, on Jan. 25, 2011, Delassus did hear, clearly, from Wells Fargo: It wanted the total payoff amount on the condo, $337,250.40. (Wells Fargo refused to comment on specifics of the case.)

    The huge sum was due the very next day, Trujillo says. Instead, he sued the bank on Jan. 26, claiming negligence and discrimination against a disabled person.

    On May 13, 2011, shortly after another bad bout of illness, Delassus’ condo was sold by the bank. In a videotaped court deposition later, Delassus breaks down crying. “I came back from the hospital, and that very day, they sold the son of a bitch,” he says. “I’m homeless. I did not have a home. My condo — 16 years, gone. Gone.”

    At Carson Senior Assisted Living, to which Delassus moved, he became good friends with Popovich, who had lost her home as well. The duo planted flowers and trees in a small area behind the apartment, complete with a scarecrow and an ornamental owl, where they would talk late into the night.

    “He really thought he was gonna get his place back,” Popovich says. “He thought if he told the truth, they could do something for him.” Instead Delassus grew sicker and moved to Tender Liv-in Care in Torrance, owned by Michelle Rogers.

    Rogers was in court last December when Delassus, listening to Trujillo arguing his case, slumped over and later died. “It was the most shocking thing I’ve been through in a long time,” she says.

    The night before, L.A. County Superior Court Judge Laura Ellison had indicated that she intended to side with Wells Fargo in a summary judgment. Delassus had been very sick, and his speech was slurred — his illness, acting up. But he wanted his day in court, especially since the judge was considering a guardianship request. Instead, as his attorney spoke, somebody yelled, “Call 911!”

    His friends and neighbors believe his war with Wells Fargo killed Larry Delassus. Says Trujillo, “The stress just completely messed him up. Once you get in that state, this world is tough on you.”

    In a statement to the Weekly, Wells Fargo spokeswoman Vickee J. Adams expressed sympathy over his death. However, she added that, in light of Judge Ellison’s indication that she planned to rule for Wells Fargo, “Given that there was no testimony or evidence to be presented at the hearing, there was no reason for Mr. Delassus to attend, and it is truly unfortunate that he was brought there.”

  37. The warranty deed is the title. You wouldn’t have it if you had a lien on your property. However, these crooks subvert the truth. If you put your deed in trust that is an extra protection but, the owner’s policy from the title company is worth more than the title at this point. Illinois is a lien theory state and the truth be told, our properties are paid for and have been ever since the Origination Fraud. There should have never been any foreclosures.

  38. This is a good reason for servicers/debt collectors to disappear!!…. http://www.operationrest.org/CriminalStatutes …….

  39. See Lawchek.com for individual states.
    A conveyance of real estate is a transfer of real estate from one person to another. A deed is one form of conveyance, transferring a title to real estate from one person to another. Title means ownership of real estate. The person transferring title is known as the “grantor” and the person receiving the title is known as the “grantee.” There are several types of deeds. One form of deed is a warranty deed. A warranty deed is a deed which warrants good and clear title to the real estate transferred. In many states, it often includes some or all of the following covenants: seisin, quiet enjoyment, right to convey, freedom from encumbrances and defense of title against all claims. Covenant of seisin is an agreement, contract, or promise that the grantor possesses a quantity and quality of land described in the deed or other conveyance. The covenant of quiet enjoyment is an agreement, contract or promise that the grantee to a deed or other conveyance will have the land in peace and without disturbance from other persons with hostile claims to the land. A covenant of right to convey is an agreement, contract or promise that the grantor has a right to transfer title to the land. The covenant against encumbrances is an agreement, contract, or promise that there are no encumbrances against the land described in the deed or conveyance. An encumbrance is a claim by another person against the land. One example of an encumbrance is a mortgage or other lien against the real estate. The covenant of defense of title against all other claims means that the grantor will defend the grantee should other persons or entities make hostile claim against the grantee’s title to real estate which arise from events occurring prior to the transfer of title.

    A warranty deed must be in writing and must be signed by the grantor. It must be recorded to put third persons, such as creditors and subsequent purchasers, on notice as to the transfer.

    All other warranties or covenants must be expressly stated to be included in the deed.

  40. The first question I would ask Senator Durbin is….what happened to the millions of dollars the State of Illinois got to help struggling homeowners ….the so called “HARDEST HIT FUND?” Did they use that money to bulldoze our stolen properties and fill their coffers with…?

  41. Think … Criminal Slander to Title and Double Claims.

  42. What have we done as a nation to make a stand against these crooks….? Not much. We have proven as long as the American people have bread & circuses they will put up with murder of their fellow man, robbery of all of their wealth and property and live blissfully ignorant in a fraudulently induced dictatorship. We have become a nation of cowards who for the most part, refuse to heed the wake up call and are going to be in for a rude awakening. Just like in Noah’s day, they partied right up to their final destruction.

  43. Lack of trust is an understatement …however, lack of trust doesn’t do any good…. if they had guts they would stop doing business with and paying these crooks to rob them.

    Obama is a lying crook who makes the Bushes & Clinton look like saints. No one should be cooperating with these crooks until they all get arrested and tried for treason.

    These Corporate bank crooks imposed martial law on us when they are the criminals who committed 9/11 and stole $60.4 trillion dollars from us and 20 million + properties to date. The problem in America is, the lights are on but nobodies home.

  44. The banks own the place….ha! They and the politicians robbed the place. They are still the most powerful lobby on Capital Hill because they are the biggest crooks on the planet and no one is stopping them. Obama & Co made sure they got what they wanted $60.4 trillion of our wealth and 20+ million of our properties since the bank owners appointed him.

    They should all be hung, every last one.

    It is easy to be a criminal when everyone running the country is a criminal. It doesn’t make you smarter than anyone else, it just makes being a criminal easy. Dick Durbin is an arrogant asshole just like all the rest of the crooks and I would tell him that right to his lying face. The dirt on him would probably make Blago look like a saint. The difference between him and Durbin is, Durbin is a royal ass kisser.

  45. One of my old freinds quoted a native american saying- only gov thinks that if you cut off the top of a blanket and sew it to the bottom you have a longer blanket.

  46. Back in the spring of 2009, Illinois Senator Dick Durbin made the following remark on a local radio show: “And the banks — hard to believe in a time when we’re facing a banking crisis that many of the banks created — are still the most powerful lobby on Capitol Hill. And they frankly own the place.” A few months later, on the Bill Moyers’ PBS program, Durbin was asked about that remark and added: “It’s counterintuitive. The people who brought this crisis to us are the ones that are dictating policy.”

    And here we are in 2013, witnessing the second term of the President of “hope” and “change.” The banks still “own the place,” and their preferred lawyers will head the U.S. Treasury Department, the General Counsel of the SEC, and the SEC. Is it any wonder the American public continues to lack trust in Wall Street or Washington

  47. There needs to be substanitive monetary damages for harm done and harm intended. The property taxes, utility bills and cost of living are through the roof because of what these crooks have done. Everyones property needs a facelift after the hell these crooks put us through. These crooks need to pay up.

  48. Notice the White House is doing virtually nothing to China though they supposedly have stolen billions of dollars in intellectual property from US….The politicians are all sheisters, wolves in sheep’s clothing …the bank owners are robbing US into poverty in every way imaginable via the politicians ….

  49. The White House is now warning China to stop cyberhacking…ha…the bank Corp is now stealing from US via China hackers. Nothing is as it appears on its face. All thefts and threats are manufactured by the bank owners.

  50. These bankster and political crooks won’t ever sue, investigate or jail themselves because they are the issuers of the fraud and the investors in the fraud. The cops should stop protecting them and start arresting them and the firemen should ignore them.

  51. SEC charges the State of Illinois with pension fund fraud. However no surprise….there will be no fines or criminal prosecutions unless maybe the investors file lawsuits. Ha.. The politicians and the banksters did the same fraud with all of our wealth ….they borrow against it by overissuing investments in it then invest in their fraud. Insure their created risk, hedge their created risk by taking more bets on every aspect of their fraud and destroy the value of other peoples wealth and property . This time instead of real property, they used public sector pension money…..peoples retirement money, as their own personal credit cards to overissue investments in. Mayor Daley said before he left office there was $155 billion dollars “missing” in police & firemens pension money and as a result, property taxes are going through the roof by 2014 to cover it. Ha..the property taxes are already twice what they should be…good luck taxing & suing a well run dry…These crooks should be sued, stripped of all of their assetts and pensions and jailed for life.

  52. I agree with that theory …. when the bankster Corp can’t steal from us anymore and they have to pay for everything out of their own pockets, their charade is over. They can’t force OBAMACARE or more taxes or higher taxes if the people simply can’t afford it. Then the investor hey day is over.

  53. @E Tolle: Can’t agree with you more. Congress needs to be fired–anyone who has been there more than one term needs to go.

  54. The Bankster Corp are very deceptive in covering up their crimes against us. People believe the Wall Street charade is a good thing. Little do they know that is because the bank owners are robbing us into oblivion by many proxies……they have stolen $60.4 trillion and $20 + million properties to date from us.

  55. When lg companies no longer have the middle class able or willing to buy their things, they will wake up. There are many of us that are charging our life styles, so we no longer need or want what they have to offer. Many of us are downsizing to smaller homes with land, no need to buy much anymore. They may laugh all the way to the bank right now, but let’s see where things are 10 yrs from now.

  56. E-Tolle said: There will be no recovery or end to this capture until we rewrite the campaign finance rules in D.C., lynch them all, or die trying
    ——————————————————————————-

    I say: at the very least tie them up side down, let the profits in the pockets fall back to where they came from and let us get in a few good whips with our switches to their britches! Time-Out just does apply to this situation!! A Good dose of their own Medicine of Public Humiliation should do the Trick! Buttwipes!!

  57. Louise wrote, “ Who is/are the sociopaths that put forward the legislation to make student loans not dischargeable in bankruptcy?”

    While I too would like names as to who exactly drafted and sponsored the legislation, I can tell you this backstory. An acquaintance of mine is a high powered BK attorney who’s been around the block. She was invited to testify on that legislation. We talked prior to her leaving for D.C. She was dead set against that piece of graft, but felt that the money powers were too strong to resist it. I argued the opposite, showing my total naïveté, holding that our legislators would see right through the obvious bamboozle that fronted that shitty deal.

    When she returned from Washington, I asked her who she had talked with to support voting that bill down. She said it was absolutely impossible to see any legislator prior to the vote and subsequent passage, as the halls and offices of the so-called law makers in CONgress were filled to the brim with pro-bank lobbyists from end to end. Graft from sea to shining sea.

    The amount of money that went right into lawmakers pockets over that deal shows that we need to stop that flow once and for all. There will be no recovery or end to this capture until we rewrite the campaign finance rules in D.C., lynch them all, or die trying.

  58. Student debt is another form of debt slavery for life like the mortgage/foreclosure scam. Who is/are the sociopaths that put forward the legislation to make student loans not dischargeable in bankruptcy? Our regulators are sleazeballs and completely toothless. They do not regulate; they facilitate crime.

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