Danielle Kelley appears on tonight’s member teleconference

At 6 PM Eastern daylight Time I will host the twice monthly teleconference for members of the living lies blog. We are going to start adding guests more frequently than we had done in the past. Tonight we have Danielle Kelley who is an attorney in Tallahassee Florida and has been frequently quoted in mainstream media over the last few days regarding corruption of the modification process for mortgage loans under HAMP and other programs. She is also challenging foreclosures resulting from alleged “defaults” that only occurred because the bank or its representative told the borrower that they must stop paying if they want to be considered for a modification. It is a trick that has landed many people in foreclosure instead of modification.

Danielle Kelley is a partner in the law firm of Garfield, Gwaltney,  Kelley and White  with offices in Tallahassee and Fort Lauderdale.

The teleconference is only for paying members of the blog. If you have not recently updated your credit card information with our Internet store you should do so now.

Questions submitted by email will get preference over questions that are presented orally. The format for tonight’s short monologue by me, an interview of Danielle Kelley,  and then questions and answers.

As always we caution you not to use the information on tonight’s program as advice on your case even if it is in Florida where we are licensed. Small details changing the fact pattern of each case would very likely change the tactics or strategy and certainly change the advice given to any client. Before you act or decide not to act based upon something you heard on our program or that you read on our blog you should first consult with a licensed attorney who is practicing in the geographical area and jurisdiction in which the property is located.

Bank of America employees admit they lied to foreclosure victims

Ex-BofA employees say they delayed mortgage help, received bonus for foreclosures

Waters Asks for Investigation into B of A Foreclosure Tactics

Where did all that money go? Why Citi Wants to Rack Up US Taxes
UK parliamentarians call for ‘reckless’ bankers to face jail


13 Responses

  1. Give them Hell Danielle! And don’t let up! Enough is Enough!
    I will keep you in my Prayers… the big boys play rough. Time to bring them down to size!

  2. UKG.. I was not a total idiot when we liquidated. Sold the assets to those we Trust to Have and to Hold …. with a lease/buy back option .. no call date. 🙂

  3. Having always paid our debts and tired of the BS, we liquidated family heir looms to payoff the mortgage, but can not get a response to our demand letter for a payoff from the creditor.

    After multiple attempts of trespass, we were forced to remove all cash and valuable assets from our home to safe location. Farmers don’t stash under the mattress they bury in the middle of a field in nowhere land. Shovel anyone?

    To think we liquidated memories for these buttwipes!

  4. March 2009 there was an almost $3,000 escrow shortage, we assumed due to tax increase. We paid it in a lump sum . April 2009 … here comes the big BOA bully claiming a $12,000 escrow shortage. Funny how the Feb, March and April 2010 reinstatement figures ( all different) never reflected that. But we pay and pay a few hundred extra (applied to principal) and then BOA sneak in a court hearing without notice on old CW case (never closed back then apparently.. is now) because there was still a $5,0000 escrow shortage…. huh?

    I like the Master Servicer and I like my chicken fried.

  5. @Solly: I knew you could do it. This is all you had to say 5 years ago, and the curtain of suspense would have been lifted.

  6. “…regarding corruption of the modification process for mortgage loans…: Author, please?

    “…most, if not all of subprime refinances and subprime new purchases, are bogus mortgage loan…” Ditto. Author please? Elementary decency. Otherwise, credibility is questionable. Thank you.

  7. “…most, if not all of sub prime refinances and sub-prime new purchases, are bogus mortgage loans that were falsely presented as a mortgage to homeowners. …

    Carie – not true …I mean , “bogus” as in deceptive …yes. You got a loan all right- but not as you think.

    Now stop and just hold up here for a second?.
    What loan did you get?
    How was the loan de-recognized ?
    Can you service a loan that is extinguished ?
    Why is it a mortgage modification was pushed so hard.?

    Look, truthfully, the administrations prior and current can not hide from the fact they need modifications for one single purpose. It is a corrupt and unthinkable concept they deployed that had people rushing to conventions centers in every city .

    Gather your loan file in your possession.
    Head to the convention center to wait for your chance
    register your name with the department of treasury IRS
    State your real income , your real assets and real sources of other income …the kind you normally do not report, etc….Yes

    That’s what you did.

    Next sell the host on what you can afford and leave with a trial modification offer TO BE MAILED TO YOUR HOME .

    WHY …BECAUSE YOUR LOAN WAS CHARGED OFF ; WRITE DOWN , THROWN AWAY FOR RELEASING THE BANKERS FROM 20:1 TIMES THE VALUE OF YOUR NOTE. They had to write off these toxic mortgages and release the banks of the burden of the waterfall and excessive Good will that the Banks, not you , but banker could no longer afford,

    [I ] mortgage for $100,000 = 400 shares /
    400 shares = $100,000 depositors account /
    $100,000 Deposit was sold for $80,000 wire

    The DBS or HSBC or US BANK bond matured as follows:

    250 Mos 100,000.00
    200 Mos 80,000.00
    50 Mos 20,000.00

    Accretion 400.00 monthly

    This is called as synthetic yield and by discounting the obligation out 200 months , hence you have the Garfield “2nd note” or how they sold your mortgage twice.

    And it all legal . But the modification was not …It was to register your name and revised income and have you finance the time required to take the loan to early maturity that was for a mandatory certain remaining amount of time remaining on the bond.

    I mean come on …profiting from american homeowner suffering!

    (1) Intentional Misrepresentation (Civ. Code §§ 1572 & 1710); for selling a consumer a 30 years mortgage with 10 year interest only payments used to accelerate early pay down of principal while borrowers balance remains unchanged.

    (2) Negligent Misrepresentation (Civ. Code §§ 1572 & 1710); for selling a loan due payable over 360 months with mandatory demand for payment at the end of 50 months 360/360 versus 360 /50

    (3) Concealment (Civ. Code §§ 1572 & 1710); Using a future value and accrued “spot price” to assess the borrowers current pay history and delinquencies.

    (4) False Promise (Civ. Code §§ 1572 &1710); having compelled borrowers to miss payments to trigger a modification while they trigger a

    (5) Breach of Fiduciary Duty (Civ. Code Sec. 2923.1);

    (6) Constructive Fraud (Civ. Code § 1573);

    (7) Conspiracy to Commit Fraud;

    (8) Unjust Enrichment;

    (9) Vicarious Liability; and

    (10) Quiet Title (Code of Civ. P. §§ 760.010 et seq.)

    Pleading available for attorneys

    Not legal advice and not an attorney…call your local bar for a reference Not for legal assistance or fighting claims. Not licensed

  8. Open market operations (also known as OMO) is the buying and selling of government bonds on the open market by a central bank. It is the primary means of implementing monetary policy by a central bank.

    open market operations control the short term interest rate and the supply of base money in an economy, and thus indirectly, the total money supply.

    the demand of base money at the target interest rate is counter balanced by buying and selling government securities, or other financial instruments.

    Monetary targets guide this implementation. such as inflation, interest rates, or exchange rates , used to Open market operations. They are carried out by the Domestic Trading Desk of the Federal Reserve Bank of New York under direction from the FOMC.

    We call these transactions the devises undertaken with primary dealers (Figure 1).

    When the Fed wants to increase reserves, it buys securities and pays for them by making a deposit to the account maintained at the Fed by the primary dealer’s bank.

    When the Fed wants to reduce reserves, it sells securities and collects from those accounts.

    Most days, the Fed does not want to increase or decrease reserves permanently, so it usually engages in transactions reversed within several days.

    By trading securities, the Fed influences the amount of bank reserves, which affects the federal funds rate, or the overnight lending rate at which banks borrow reserves from each other.

    The Federal Reserve cannot just set the money supply though. The Fed can only manipulate the monetary base, so any changes that are induced will be compounded by the money multiplier effect, further increasing or decreasing the total money supply.

    If you can even partially grasp this difficult subject matter …your fifty percent closer to perfecting your claims . I am going to rewrite this in an hour translating it into mortgage backed “private label bonds”


  9. @mkd

    I know my bank did way back in 1994 when they said they never received four of my mortgage checks and hid them by dropping them silently in the mail and returning them to me and all four checks had bank markings of receipt and were posted to their ledger,.

  10. Does anyone think that BOA was the only bank doing this? My guess, all these banks were doing the same thing or had some of the same tactics. Those of us who dealt with other banks and got the same run a round should be asking that question.

  11. “Rebel. Even if you fail, even if we all fail, we will have asserted against the corporate forces of exploitation and death our ultimate dignity as human beings. We will have defended what is sacred. Rebellion means steadfast defiance.”

    Chris Hedges, writing another solid call to turn around this Titanic we’re all on, in Rise Up Or Die

    Those of you on LL who still believe that sanity will return, and that the oligarchs will come to their senses, allowing all of us to once again be free from debt serfdom are dreaming. It’s now or never. If not for you, for our children’s children’s children.

    REV 2.0

  12. “…regarding corruption of the modification process for mortgage loans under HAMP and other programs. She is also challenging foreclosures resulting from alleged “defaults” that only occurred because the bank or its representative told the borrower that they must stop paying if they want to be considered for a modification. It is a trick that has landed many people in foreclosure instead of modification.”


    “…most, if not all of subprime refinances and subprime new purchases, are bogus mortgage loans that were falsely presented as a mortgage to homeowners. These were charged-off loans, with only collection rights surviving. How does this affect homeowners??? One, not a mortgage — unsecured debt. Two, valid records as to payoffs, and payoff to prior trust and/or GSE — is unavailable by public documentation. Three, the purchase price for collection right to unsecured debt is undisclosed to borrower. Thus, borrower is unable to ascertain how much a debt buyer paid for collection rights to charged-off debt — and, how that “purchase” price can be “modified” for principal reduction by the distressed debt buyer.

    Finally, security investors are NOT investors in default debt. Subprime was default debt. Security investors, and I will state this over and over, can only invest in CURRENT cash flow pass-through. Security investors CANNOT invest in collection rights — or, for that matter, any mortgage loan itself. They can only invest in pass-through of cash flows. The loan, NOTE, collection rights, remain with the “INVESTOR” — who is NOT the security investor. Under federal law, the “INVESTOR/Creditor” must be disclosed to the homeowner. This information CANNOT be found in SEC documents, and will NOT be produced in courts of law– unless the judge is astute enough to understand the process.

    It is time for deregulation to be repealed. This, I believe will come. In the meantime, unless attorneys understand that all is being withheld in courts, borrowers will remain in limbo — unable to access the documents they need. And, given this, foreclosures will (fraudulently) continue. Attorneys have been so brainwashed on a no-end track, that they fail to look beyond the apparent.

    Number ONE — First, and foremost, separate security investors from junk debt buyer “investors.” They are not the same. To conclude that they are the same, is a huge detriment. And, to conclude that they are the same, sadly, has been the major downfall of many. THEY ARE NOT THE SAME.”

  13. Can you go into Federal Court with parties from the various states that lost possession of their properties with rulings in disregard to the Supremacy Clause and repugnant to the United States Constitution?
    Sign me up if you go.

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