Don’t Fooled by Banks’ PR: Millions of Foreclosure in Pipeline

Just a short note today because I am busy with hearings and administration.

If you look at the media, you could easily believe that the foreclosure crisis is all but over. It is true that the number of new Foreclosures has dropped. That drop is meaningless for two reasons, to wit: many banks are regrouping because of new legislation that they thought would be to their benefit (like in Florida) but turns out to cause more problems than solutions for Banks. And the Banks, who have been controlling market conditions and public sentiment through planted news articles, want to give the impression that market conditions are improving. This gives them both a higher price when they sell property to investors and the extra benefit of creating the illusion that the crisis is over.

Don’t believe it. There are at least as many Foreclosures in the pipeline as we have already seen. Another 15 million people are in the process of being displaced — many as a result of “modclosure.” That’s a new term out in the blogosphere. My compliments to whoever thought it up. It is the practice of using the illusory promise of modification leading inexorably towards foreclosure. It starts with instructions from the bank to stop paying, thus creating the appearance of a default while the Servicer continues making payments to the creditor. Then as the bank asks for documents and says it lost the,more destroyed them because they were not in proper order, the homeowner gets in deeper and deeper as each month goes by. Then on the eve of modification the bank forecloses — process known as dual-tracking which is prohibited as of January 1, but there is no indication that the banks will comply.

As stated by once recent decision by a Federal Judge — this is systemic, not a mistake. The
Policy of the banks is that sanctions are less expensive than compIiance with law. Given the small number of litigants challenging the Foreclosures the risk of losses where the Foreclosures are challenged is acceptable.

65 Responses


  2. all—we need some help—the banks’ attorneys have gone nuts in last two days in writing letters to the CA supreme court to get the Glaski case decertified. the letters are due in there by Monday Oct. 14th.

    we need more attorneys and folks to write letters in support of keeping Glaski certified for publication

    this is critical

    I hope you can all help and contact every attorney you know to assist.

    here are a couple to use as templates and you can see the gist of the last letter as to written by the bank to depublish the decision

  3. neidermeyer,

    May I ask a source for this:
    “we bring in about $250B/month in taxes and debt service is about $18B/month”

  4. I do not need an attorney.
    I do not want an attorney.
    Not here, not there, not in my personal thinking chair.
    I do not want an attorney in my hair, getting paid for my despair.
    I do not want an attorney arguing my journey.
    If I fail, I fail alone.

  5. Good luck

    Sent from my iPhone


  6. Justme,

    You do none of it. You contact UKG. You ask him for his attorney’s name and you contact her. Writing to the judge is NEVER a good idea. It is perceived as an attempt to sway him in your direction against all rules of procedures and you end up hurting your case. Don’t do it.

    Also, stick to the issue. Choose the most pressing one (standing? Conversion? whatever) and stick to it. Many homeowners hurt themselves by going all over the place while poorly articulating what they try to convey.

    I’ve seen the most bizarre filings by homeowners, going in every direction and i can see why most judges don’t even want to deal with pro se or have that knee-jerk reaction. Court is a big club. All those guys, from judge to prosecutor, defense attorney, clerks, bailiffs, were made from the same mold. They speak their jargon and they share the same dysfunction. You ain’t part of the club. No matter how hard you try, they won’t let you in.

    Your best bet is to get your own attorney. Hefty investment but well worth it.

  7. I had taken a step back after reading all your welcomed input and began to see more of the big picture.
    I must demand the certainty that the servicer indeed owns my loan and has the discretion to make such choices as modifying it.
    I Need to know they have the power to make that contract, any new contract, and properly associate and tie in that contract with my mortgage to be the collateral for such contract.
    As they have admitted the mortgage is all ready collateral for the MBS pool, one may only come to the conclusion that you cannot simply take collateral for one obligation and use it for another as well, more so an obligation to two different parties.
    How would we fix this> ask the servicer – and demand proof- they have repurchased it from that pool, AND had the note endorsed back to them to unequivocally own and hold the note and mortgage. Great. Start fresh. BUT –
    would not the amount due and owing be wayyyyy different? I am sure the actual account receivable differs from what they say I owe. Perhaps it will be a few grand, fingers crossed, hhaaha.
    Another BUT –
    What if the mortgage was never actually pooled? Then what?
    What if they do not actually own the note? I have concrete evidence the note they have endorsed in blank is impossible to be the real note.
    —so case closed – lies, fraud, alteration, forgery, etc.
    No standing, blah blah blah …I walk away free. In candy land, maybe
    What would be the best shot I have to make this demand?? The MSJ was adjourned for a few weeks to allow time for the mediator to see if there is any negotiation that can be made.
    How do I do this??
    Write a very well thought out letter addressed to the Judge and Plaintiff, possibly file it, and ask the issues above be determined before I can proceed with certainty that I can make a modification to the servicer and it is actually THEIR modification to MY ACTUAL mortgage. –I may make a mod to the servicer with pure invisible collateral …what if the pol defaults?
    If my mortgage is still in it, might the investor foreclose on me as well?
    How do I address this one folks. By Motion is my best guess – motion for what – motion for more clarity??

  8. Did not help me

    Sent from my iPhone


  9. As usual, it is… Chase! It is a wonder people haven’t started to target practice on bankers. They are asking for it. They are pushing homeowners to the edge. And i know that there is a method to that insanity. A method and a purpose.

    How Banks Welcome Home Our Servicemen

    Posted on October 5th, 2013 by Mark Stopa

    Here’s an email I received from a prospective client last night, which I’m re-posting here with that person’s consent (editing slightly to preserve confidentiality). No need to elaborate, really – just read it.
    (Sadly, this is the type of stuff I see every day.)

    Dear Mr. Stopa,

    I just came home from Active Duty 3 months ago. Here are the events – minus administrative details – according to the docket:
    1. Chase Bank filed Lis Pendens in 2008
    2. Chase Bank received Final Judgment of Foreclosure in 2010 (I was away on Active Duty and not present during any of the process since 3/2009)
    3. Chase Bank CANCELLED the scheduled sale shortly before the sale date
    4. Chase Bank Voluntarily Dismissed the Foreclosure / Dissolved Lis Pendens and Vacated Final Judgment 2012 (again – I was never notified / serviced on any of this – but evidently I still own the house??) – there has been absolutely NO further action on the docket for this house by Chase since 2012.
    5. I came home to a house that has been abandoned, ruined, stripped of everything including wiring and all personal items, and has a $30k code enforcement lien on it (welcome home). I filed a detailed police report with photos, etc.
    6. Chase Bank filed an affidavit of Non-Military while I was on active duty overseas.

    My questions are:
    1. The house is insured – can I file a claim?
    2. Is the house still mine? I haven’t had possession in over 5 years??
    3. Can I prevent further foreclosure proceedings?
    4. Wasn’t the first final foreclosure a violation of the SSCRA? After they foreclosed, then abandoned the property, it has been absolutely destroyed and is uninhabitable. What type of recourse do I have, if any?
    I have more questions….but it this seems like a good place to start.

    Thank you for your time.
    Mark Stopa

  10. I know Garfield recently touched upon Ocwen. Here is Barnes take on it, in much simpler terms, which makes it easier to investigate and argue. (Simplicity is always best in court)


    October 3, 2013

    Several of our clients have recently received letters from Ocwen Loan Servicing in response to inquiries as to who owns the homeowner’s loan. The response from Ocwen is a form letter, which states: “There is no single investor of the loan. The loan is one of many in a securitized investment trust (with name of the trust). Ocwen is the servicer of the loan, and not necessarily the owner of the loan. Although the ownership of the loan may change, the ownership has no bearing on the servicing of the loan.”

    Look at that series of admissions very carefully. We know that Ocwen is a servicer, and is never an “owner” of a loan. A servicer is (allegedly) working to service the loan on behalf of some owner. Who is that owner? Ocwen does not know, and admits that the ownership may change.

    Servicing rights are conveyed by a servicing contract. Who is Ocwen working for? It does not say. What rights have been conferred upon Ocwen by whoever owns the loan? Ocwen does not say. What amount is the owner claiming is owed and under what facts? Ocwen does not say.

    Ocwen does admit that the loan was securitized. This admission implicates all of the securitization issues, including authority of the servicer, whether the loan was properly transferred to the trust, whether there were any paydowns or payoffs of the note through insurances, credit default swaps, reserve pools, etc. depending on the current state of the law in whatever jurisdiction a foreclosure is pending. As you know, some states have case law which permits inquiry into the issues; some do not; and some are undecided.

    This letter alone warrants intensive discovery in any foreclosure case in view of the admissions of Ocwen, which admissions generate a wealth of issues of fact for discovery and trial as well.

    Thank you, Ocwen!

    Jeff Barnes, Esq.,

  11. A man,

    In my views, it’s a pretty long shot in today’s climate. I doubt the judge will reverse the previous order… unless the guy wants to commit political suicide. Especially after what’s going to take place in DC.

  12. United States Supreme Court
    Commissioner v. Banks, 543 U.s. 426 (2005)

    The relationship between client and attorney, regardless of the variations in particular compensation agreements or the amount of skill and effort the attorney contributes, is a quintessential principal-agent relationship. Restatement (Second) of Agency § 1, Comment e (1957) (hereinafter Restatement); ABA Model Rules of Professional Conduct Rule 1.3, and Comment 1; Rule 1.7, and Comment 1 (2002). The client may rely on the attorney’s expertise and special skills to achieve a result the client could not achieve alone. That, however, is true of most principal-agent relationships, and it does not alter the fact that the client retains ultimate dominion and control over the underlying claim. The control is evident when it is noted that, although the attorney can make tactical decisions without consulting the client, the plaintiff still must determine whether to settle or proceed to judgment and make, as well, other critical decisions. Even where the attorney exercises independent judgment without supervision by, or consultation with, the client, the attorney, as an agent, is obligated to act solely on behalf of, and for the exclusive benefit of, the client-principal, rather than for the benefit of the attorney or any other party. Restatement §§ 13, 39, 387.

  13. MERS isn’t an agent, but if it were:

    MAPLES v. THOMAS, 10-63 (U.S. 1-18-2012)

    On Writ of Certiorari to the United States Court of Appeals for the
    Eleventh Circuit.
    No. 10-63
    October 4, 2011
    January 18, 2012

    “See 1 Restatement (Second) of Agency § 112 (1957) (hereinafter Restatement (Second))

    (“[T]he authority of an agent terminates if, without knowledge of the
    principal, he acquires adverse interests or if he is otherwise guilty of a
    serious breach of loyalty to the principal.”); 2 id., § 394, Comment a
    (“[T]he agent commits a breach of duty [of loyalty] to his principal by
    acting for another in an undertaking which has a substantial tendency to cause him to disregard his duty to serve his principal with only his
    principal’s purposes in mind.”).

  14. justme,
    I heard a myprivateaudio talkshoe call from last week. Guy’s name is Joe. My impression of him doesn’t matter, but my inner knowing is he speaks just enough truth although not everything is revealed.
    I don’t know his intentions. I don’t know why he surfaced, here and now. At times like these when the are people paid to be the ones causing harm or who will do anything to reel anyone in, I was not sure whether the losers are doing what it takes to win anything while they are losing.

    But a client who hires a law firm, the law firm makes sure to indicate they are the client and the law firm is the attorney. For the attorney to represent their interest, it doesn’t make sense that the lawyers are guiding the mediation without the client’s knowledge.

    My opinion is lawyers are interested in owning the estate. Trustees are lawyers. The title was ours, we put it in the trust. It’s not irrevocable unless the words irrevocable is in the trust.

    Used to be people had the title to their lands. I heard an audio, long gone off google (the group shut down and all info was deleted/destroyed/whatever) but the woman had title to her land and could not comprehend how the bank was foreclosing on her property.

    So there was a thing called ‘heir property’ and I wonder if it was the property where the family had the title to the land.

    Being no real estate expert, I can only ponder things I don’t know, ask questions about things that don’t make sense to me and form an opinion piecing together the pieces of things I’ve paid attention to or learned and form new opinions based on what I learn from using what I learnt.

    My opinion is the banks lost, and right now they are getting as many ‘valid’ contracts as they can, and people have a right to contract and a right not to contract.

    If watching a tv court show, you’d know people enter contracts all the time, but once you agree to something, the old conflict is out the window. Like having an argument and becoming friends. You can’t dredge up the past as soon as you have a ‘new’ argument. It’s irrelevant since the mending from the old argument already took place and only the new argument requires mending.

    If you care to piece together what joe said in the talkshoe to see if any will help you as you deal with runaway lawyers who are working for a client that doesn’t know what they are doing, so how can the client agree to what is settled unless their client is ‘not the real party in interest”

    Who do the lawyers work for and what’s in their contract unless it’s a non-disclosure that they are supposed to be working toward.

    Who benefits from your ‘estate’ being placed under a new lien and you placed under a new obligation for the rest of your natural life.
    (assuming you are over 30 and will pay for 30 years or more to stay in your home)

    Trespass Unwanted

  15. justme,

    I want everything in this housing conflict between you, the servicer, and other uninvited interlopers, to go according to your “will” and no other’s will.

    Trespass Unwanted

  16. Trespass Unwanted you have given me some food for thought. First off, I appreciate your knowledge of knowing what you dont know. Secondly, I read, and understood, every word of the mediation. Anything and everything done, signed, said within the mediation may not be taken to evidence or used in court or against the homeowner, even if I had 10 million in the bank, it cannot be disclosed outside the mediation. We are the first in our county to have the program so the mediator really would like it to go well. That said, sadly, she may be quite disappointed.This is not mediation as it seems.Whatever has been done(that has not been done) could of have been done by me directly through the servicer. When you stick your nose where they do not want it they readily send modification papers and the attorney begins to speak with verbiage relevant to dismissal of counterclaims upon modifying rather than continue in court.
    This is not my fight, it is my families fight. We want two separate things.We live in two separate worlds. They like where they live, smug in the city. I would rather a hole in the hill with a garden, a gun, a well and a mule. That is something I need to come to grips with. Keep two munchkins in a home or not. A home can be a box, a car, a trailer, not to them. I am getting all weird so I need to continue this not now…but your points are relevant. I will never be able to bring anything to the table that is not how it works and will not work. The servicer does not even know I am in mediation – it’s all the attorneys call. I’ve been in contact with them and they are clueless. The court did not stop, it was extended for time to allow applications to be processed for the first very ever ‘mediation’ attempt in our county.,,none of any applications I have not sent yet. I am not even on the damn loan my husband is.We were just short of being married when we got the loan we were 19. I have affidavits from my parents whom we bought it from saying the house was intended to the both of us, but it did not happen. I was supposto be, but never was. I am the only one who has appeared in court, filed anything, done anything. I “do” stuff. My husband works. He has, nor wants to know, whats going on….just wants to stay in his home with his kids. And I am going to destroy that. Gaarash I need to get off the fricken internet

  17. KC,

    Everybody is welcome to join in. I didn’t see anything about union workers attending the party though. For all we know, they’re pretty busy elsewhere… WI, OH, MN, who knows…

  18. Christine… you forgot union workers. 🙂

  19. Grantors Irrevocable -ly Granted until _________ ?

    Can you modify Irrevocable Trust?

    Can you Close a Irrevocable Trust other than under the terms stated in the contract?

    If so … What?

    And just for the Hocky Sticks of it …Why didn’t they file the Warranty Deed?

  20. 2013 International Council Meeting

    Date: Thu, Oct 10, 2013 12:00pm – 6:00pm
    Location: Willard Intercontinental Hotel, Washington DC

    As the world marks five years since the economic collapse of 2008, a shared roadmap to lead the international community toward its desired destination – global growth with systemic stability – remains elusive. Economic, regulatory, and financial sector reforms are progressing, but may be taking divergent paths.

    The 2013 Bretton Woods Committee International Council Meeting will explore the road to global financial stability. We will consider whether the actions and incentives driving monetary and fiscal policies, regulatory reforms, and financial market participants are sufficiently aligned to sustain global growth.

    Speakers include:

    Fahad Almubarak, Governor, Saudi Arabian Monetary Agency
    Mohamed El-Erian, CEO and co-CIO, PIMCO
    Stefan Ingves, Governor, Sveriges Riksbank
    Colm Kelleher, Chairman, Morgan Stanley International
    Haruhiko Kuroda, Governor, Bank of Japan
    Christine Lagarde, Managing Director, International Monetary Fund
    Brian T. Moynihan, Chief Executive Officer, Bank of America
    Raghuram Rajan, Governor, Reserve Bank of India
    Tharman Shanmugaratnam, Deputy Prime Minister and Minister of Finance, Singapore
    Daniel K. Tarullo, Governor, Federal Reserve System of the United States
    Sir David Walker, Chairman, Barclays
    And other global leaders. [You know… all the insignificant ones.]

    The Committee is grateful to the following organizations for their generous support of this event:

    Strategic Sponsor

    So far, Karen Hudes is right about the meeting. She stated in her last TV interview that it was about the reset of currencies and that it should go smoothly. I’d like to believe her.

    Sooooo… At the same time, we’ll have in DC thousands of vociferous truckers, angry vets and all that nice laundry. That ought to be good! Really, really good. Especially when they try to leave town. Better make sure they come up with something palatable.

    Or… for all we know, the bikers might return… 🙂

    Something is definitely up. Kills me not to be in the know!!!

  21. You may also want it written that if/when it’s paid in full you want the title transferred to you from the trustee and not just the note with a red stamp showing ‘Paid in Full’ when it’s done

    Been there done that …. they wont respond back. Why?

    What part of this statement is impossible for the servicer to comply with?

    ~ Irrevocable -ly given to the trustee. ~

  22. I know nothing and if I think I know something, I know nothing. I don’t give legal advice because I don’t know legal things.

    I have opinions and they are only a value to me and I can change my opinion based on learning something new after I made the opinion.

    If you enter into an agreement with the servicer there is no longer a conflict, so there is no case, and no counterclaim.

    There are three types of contract, a verbal contract “Do you owe me money? Answer: Yes”
    A contract by gesture “Let’s shake on it, or have the money in my account by this day and the deal is on”
    A written contract.

    A contract has a meeting of the mind between two parties.

    Seems you have in place two parties in dispute about what is owed and both parties agreed to go to mediation. Now without knowing the terms of mediation where either party can call it off and go back into court, you have what it takes for a valid contract.

    The goal is to pay them to keep them from taking the home, why else would you go to mediation? No one goes to mediation and says, ‘well alright, since we are here and you came, you can have he house.’

    Nope, mediation is for each side to get as much as they can out of the deal.

    You are offered HAMP wih no forgiveness and no interest reduction.

    Seems you’ll need to negotiate the number of years, and whether you get forebearance if you lose your job or become extremely ill, or if you can have insurance that will make your payments if you lose your job or become extremely ill, also negotiate that if they pay anything on your home including insurance and you are not in arrears then it’s a gift, and you’ll have to bring to the table all the things you want, since you know what you want or you wouldn’t have a counter claim. You may also want it written that if/when it’s paid in full you want the title transferred to you from the trustee and not just the note with a red stamp showing ‘Paid in Full’ when it’s done, and you want them to file something in the county so the lien will show it’s paid so you won’t be paying property taxes over the lien, and maybe the negotiation may say you have input into when they change servicers, how they document the assignment and how much time you are given and whether you see accounting of the transaction. Maybe even one that if they disappear without making an assignment they have abandoned the claim and no one can make a claim against the property. (You have no idea how many people pay servicers everything owed and get no clear title to sell the property, some trustee is always holding it, and all they get is a ‘Paid in Full’ on the note they negotiated with the lender and the lender never files the Release of Lien in the property records and they have to go to court and pay more money to clear that claim.

    If it’s mediation, at least put your terms on the table. Unless you don’t care what the terms are as long as you keep your home

    As far as someone not participating in anything before, there is no flag there. They can participate or not participate in anything, in a contract by gesture, they refused to participate in HAMP and now they are creating a contract to participate in HAMP.

    People want to keep their home at whatever cost, and they are beginning to realize that.

    It’s all over the internet that they don’t have the title and don’t have the note, but people still want to sit with them to negotiate keeping their home and making payments to keep it, so this is a good thing.

    The banks are finally listening and giving the people what they fight so hard for. A clean contract where both parties agree the servicer has the title and the homeowner has the obligation.

    Realize not paying taxes or HOA dues still leave the home up for someone else making a claim on it and taking it from you by force, but mediation will not fix that.

    Trespass Unwanted, Corporeal, Creator, Life, Free, Independent, State, People, In Jure Proprio, Jure Divino.

  23. talking about fines for white collar crime, money they should not have in the first place if little guy steals 10 grand say, he goes to jail with a toothbrush, looses everything.

  24. justme I know this is frustrating for anybody, and you must find the paperwork that you signed at the closing and see it there were any FHA disclosures, because the only way a loan is in a Ginnie pool is it like the other loans it is pooled with and that going to be FHA, VA or USDA loans period.

    So if your loan is suppose to be in a Ginnie pool you got one of those loans. In your payment is there a MIP monthly amount in your total payment? On your HUD settlement statement was there a upfront MIP amount?

    Now if that loan is currently in a Ginnie pool the loan debt was wiped clear when the loan was placed into the pool because Ginnie Mae could not purchase a home mortgage loan at all! The Note cannot be passed around because it got to be endorsed to who ever is in possession of the Note as there must be a chain of ownership!

  25. The sad part is. If citizens who are in foreclosure just challenge the foreclosure and request the original documents they will find 8/10 times the banks do not have them. They destroyed the paper trail when they new they were going to be audited not realizing the courts and individuals could and would challenge and request to see original docs. Because the duplicated mortgage docs and sold them off as securities multiple times they can’t find the originals on over 15 million mortgage loan files. Stat challenging the foreclosures more request to see original docs.

  26. Example… Couple looks at a house for sale. They decided to get pre-approved for a loan before making an offer. They got preapproved.. the FHA loan was sold. But the couple did not make an offer after preapproval and listened to their parents and looked at more homes. Several months later they found a FC property at a great price, several thousand less than they were approved for. Closed as conventional with MIP instead of FHA without notice prior to closing.

    But that wasn’t the loan or the property mortgaged in their name that was sold to FHA under their names several months earlier.

    That is what happens when you sell a persons identity and credit in advance of closings.

    I had to much fun … lighting the fire under the lenders asses when they tried snookering anymore borrowers at closings after that.
    They would deny and redirect …. and when that didnt work…. they Got Mad and I LMBO. You Reap what you Sew!

    ….Got my check from MIS … Mortgage Information Services …. Hey its almost two years late … better late than never…Right?


  27. :X

  28. Just Me,

    You need DU discovery. (D.U….desktop underwriting system ) Request it in discovery as it has all the prelim docs also…. GULP!…… Lets hope you don’t have a bad reaction to what you find out.

  29. *Reed* sorry

  30. I’ve called them up & down KC. they had an investigation started and w/ the shutdown it’s slow pick`ins over there.

  31. How can we make a new security agreement when the servicer said it already pooled the mortgage and it’s owned by GNMA?
    I argued – by the plaintiffs own argument that the mortgage follows the note- —that when they produced the endorsed in blank note the mortgage followed that sucker right along with it to whatever pool it lies in (if any) and went straight on to serving as collateral to the pool, – which is EXACTLY what the servicer plaintiff said it is- SO. in essence, my mortgage was taken by the servicer by their own will and voluntarily pledged it for their own obligation for the investor- and again – by their own argument they made so boldly to the Judge- my mortgage followed the note too, when they endorsed it and relinquished all those puuurdy rights.
    yeah- no shit , how can I make a mod to them – how can they make the mod…..oh yes, they need Ginnie & issuer approval….that request for release of documents form…
    Oooh my garsh Reid! lol – should I demand it be produced before any mod can take place to know the mod would be real on the books ! HA!
    indeed. I am not making no HAMP. Or should I? Then maybe a qui tam for the HAMP as well – because the fricken loan is NOT an FHA loan. I have the HUD-1, the loan app’s, the stinkin real estate transfer return – it’s not insured!

  32. 56 months, $1,ooos spent, armed to the hilt and honored to serve.

  33. Just Me, if you pay MIP it should be listed on 1098 with the interest, taxes, HW ins and other ins paid on your behalf by the pretender.

    Ut Oh ….

    Might I suggest you call the Insurer yourself?

  34. I’ve lost my mind, should you see it, please send it home. I tried to count the number of false claims on ten fingers … what was I thinking?


  35. KC I just took a glance- is that box 4 on 1098? MIP> box 1 has interest paid, all others are 0’s. That is all the servicer has ever given me until 2010 in asking for a payment history- a substitute form 1098. After 2010- just a plain 1098. None ever have any MIP – are they supposto? I pay it every month…never ventured into MIP area as so far

  36. Christine,

    Big Bear says it going to be a Convoy … a Great Big Convoy!

    Oh what a Beautiful Sight it will be to See! Only pictures for me.

    Expression without Confrontation or Violence.

    *Giggles & Grins*

  37. justme, I think you got to go one way or another in going to trial or taking the HAMP. Now I think what will eventually happen with the modifications is those loan are sold to a non HAMP party and when this dies down depending on the market throw folks out of those agreements. Hope I am wrong about that.

    However if you went to trial and were able to go to discovery it could answer a bunch of the thing you are wanting to know. Your mortgage documentation should tell you exactly what you want to look for and help you find out who actually are the player.

    But what worries me about the HAMP is you sign new security instrument (mortgage, deed of trust, security deed) they re-attaching the debt to the Notes with your consent. But if your fighting the modification take from folks here, that it not been a easy short process.

    Either which way you go you have our support and give em hell!

  38. neidermeyer, those who have FHA should check their 1098s sent for your taxes. Some will find that the servicer has not made FHA ins payments since 2011. But when compared with the servicers monthly statements to the borrower …. the statements show the wanna be as still charging the borrower for FHA ins premiums. Why?

    Unjust enrichment?

  39. @ JUSTME ,

    Same here ,, gave me a “warm fuzzy” and had to share… I’m hoping for the debt limit to work some magic if the good guys (constitutionalists) hold out long enough,, we bring in about $250B/month in taxes and debt service is about $18B/month (1/4 of what the FED just “wishes” into existence and pumps into the markets) so WE WILL NOT DEFAULT …

    HOWEVER , The Congress may just push Obama into cutting unnecessary departments and programs to make up the shortfall … getting the banks to acknowledge and payback on the crapola they pushed onto the GSE’s would be one way to raise revenue from the ONLY PARTY THAT HAS THE CASH … The TBTF Banks.

  40. Qui tam ?
    whole new ball game! woo.

  41. neidermeyer,
    Nice post, I enjoyed it, gave me one of those warm fuzzy feeling on the inside feelings. :p
    Might you care to explain the easiest way to insure the violators choke on this? Your last paragraph, …my ‘bank’ (or the loan originator, & closer) made us a conv. uninsured loan – the servicer is “self insuring” In the same day process of signing the note, the servicer was ‘assigned’ and pooled the loan as insured – when it was not. HUD & FHA had an investigation open – but with the shutdown – well, it’s stopped.
    couple o’ things:
    -fraud on investors for pooling fake FHA loan
    ~ if it IS really in a pool – Ginnie makes them purchase it back- now they have my loan right in their had(even through forgeries etc)would that make them better off to foreclose?
    – If it’s really NOT pooled – they were paid for it issued as MBS but never forked over the mortgage….


    According to Kate Berry at American Banker, “The nation’s four largest banks are holding $57 billion of seriously delinquent loans that they’ve been slow to move into foreclosure over concerns that the Federal Housing Administration, the government mortgage insurer, will refuse to cover the losses and hit them with damages, according to industry sources.”

    The FHA insures home loans issued by banks and other mortgage lenders to low-income and first-time home buyers. Those buyers pay the FHA insurance premiums to cover potential losses. In the event that an FHA-backed loan goes into foreclosure, the lender has the right to file a claim for reimbursement of losses.

    However, the FHA’s guarantee does not apply if lenders are found to have violated underwriting or servicing standards, or to have engaged in misconduct. Banks can also be held liable for treble damages under the False Claims Act if they are found to have “falsely certified” that mortgages met all FHA requirements.

  43. Justme at 9:49 – It’s been awhile, and dropped my lawsuit with the offer that they would actually process a loan mod (yes, originally they played the game of making me resubmit paperwork many times) and I figured that since lawyers were involved, it would actually happen. Neglected to get anything in writing (so if you do decide to go this route, make sure you get it in writing). We chose to submit only limited paperwork to make sure they would have to ask for more paperwork, which they did, so it appeared they were doing something, but over a year later, nothing. Of course, at this point, not hearing from them was good, so I made no contact. Then Calif’s new law came out this year and I figured I had more leverage, so had my atty get in touch, only to find out the file never made it to underwriting and was told to resubmit everything. I actually did not want a loan mod and my plan was to just refile a lawsuit with the timing dependent on how things went. I actually had expected I would never be approved and figured this gave me additional leverage. At this point, I decided it wasn’t worth playing the game anymore, so just sat tight until a few months later when I found out they were reporting me as in foreclosure to the credit bureaus. So I decided to stop playing with attorneys and do my own QWRs, and when they didn’t respond properly, I would turn around and provide THEM the facts, which I’m sure attorney’s would have disapproved of, but it’s tiring getting the same false answers over and over. They actually started answering a few of my questions and actually provided me some info that actually helps my case, so I decided to just keep demanding info to see what they provided. I have an unusual situation in that they claim my loan originated before loan docs were even signed, which actually was not included by my prior atty, but I feel should have been, so I’ve been harping on that and other violations also not mentioned. So, they finally stopped showing it as a foreclosure, but then what they decided to do is to sell the servicing rights to another party. So now I get to do this all over again with another servicer/collection agency, but it’s actually become quite fun now since I get to show them where they are wrong when they answer the QWRs with inaccurate info. Anyway, it’s now been over 5 years and I’m still in the house and in CA they have passed the SOL for unsecured loans, which I’ve advising them of, so waiting to see what the new servicer /sub-servicer/collection agency does.

    Anyway, the main point is – Get EVERYTHING in writing and don’t count on anything happening that will actually benefit you and not the banks.

  44. Makes me want to go after my nemesis even more… Friggin’ bastards.
    I hope Karen hudes is right…

    Behind JPMorgan’s Potentially Massive Settlement With Feds
    October 05, 2013 3:00 PM

    RATH: So why might this be the largest bank fine in history? What makes this special?

    MOORE: Well, there are two things going on that would explain why it’s the largest bank fine. The first one, and perhaps the most important, is that JPMorgan can pay the fine. You know, there were a lot of abuses at other banks. But as it stands right now, it’s dubious that Bank of America or Citigroup could absorb an $11 billion fine in the way that JPMorgan can. JPMorgan is just an incredibly strong and powerful bank.

    And I think regulators in the government want to send a strong message that even if you are at the top of your game, even if your shareholders are doing well, even if you’re the strongest bank in America, you’re going to face a fine that is truly going to hurt. And the second reason is that there are just an enormous amount of abuses alleged here. And you have a number of people who want their money back.

    That includes the Federal Housing Finance Administration, which oversees Fannie Mae and Freddie Mac. It includes the Department of Justice. It includes investors who bought mortgage bundles that they wish they hadn’t. So there are a lot of amends to be made. And that’s the other reason that the fine is so large.

    RATH: Is there any chance any of the money extracted by these fines could go to providing relief to mortgage holders?

    MOORE: If there were any justice in this world, yes, there would be.

    RATH: So the answer’s no.


    MOORE: Exactly. Exactly. It would be very hard to get that to homeowners. As you know, there was a mortgage foreclosure relief settlement that was negotiated last year. Very little of that money has gone to homeowners. So theoretically, yes, some of the money is supposed to go there. We don’t know how much because we don’t know the final amount of the settlement. And we also know that if you are someone who has your house in foreclosure, if you had a mortgage that came through Washington Mutual or if you were an investor who bought a bundle of mortgage bonds from Bear Stearns, very unlikely you’re going to see actual money in your pocket.

    RATH: That’s Heidi Moore. She is finance and economics editor for The Guardian U.S. Heidi, thank you so much.

    MOORE: Thank you.

    Copyright © 2013 NPR.

  45. Rally the troops !!!- JP Morgan Counsel has submitted a letter to CA Supreme Court to De Publish- Glaski.
    Personally I have fought long and hard against Onewest Bank/Deutshce Bank for 60 months now- this case is solid/
    putting out as Crowd Source on how to keep Glaski case from being

    And for those fighting OneWest Bank….be sure to search:OneWest Bank gets spanked for being a pretender lender- in this Blogs search box- will give you some arrows in quiver to fight their misrepresentations.

  46. Rally the troops !!!- JP Morgan Counsel has submitted a letter to CA Supreme Court to De Publish- Glaski.
    Personally I have fought long and hard against Onewest Bank/Deutshce Bank for 60 months now- this case is solid/
    putting out as Crowd Source on how to keep Glaski case from being

    And for those fighting OneWest Bank….be sure to search:OneWest Bank gets spanked for being a pretender lender- in this Blogs search box- will give you some arrows in quiver to fight their misrepresentations.

  47. Also, be very thoughtful signing anything. They are using great copy machines and automated pens to duplicate your signature! Beware.

  48. Sorry. I didn’t realize we were on two different pages at once. Anyway, please do look into contacting her. At this juncture, it might be the best decision you could make.

  49. Any help from him? He’s a really great guy. And he would be your best bet. I’m pretty far from WI and I know next to nothing about your state.

  50. Yuppers

  51. Are you in touch with Usedkarguy?

  52. Indeed, WI.

  53. I was just notified after 6 years of no payments( I sued them to show the note and mortgage at the outset of this) filed a Bk (which I misfiled and it was thrown out, after stopping the foreclosure sale) and now they are saying they have standing through MERS, citing Wells Fargo as the trustee for a Morgan Stanley pass through trust (which I assume was never registered)…jeez, kinda overwhelming. I spent some last dollars yesterday for a complete history of recordation here in Las Vegas and will fight it as hard as possible. Yes, the intensity of NOD and NOS have dramatically increased here recently, as I monitor them every day ( 6 years now)…almost 1000 on one day last week! I will sell my collector car to try to fund this battle, but the house has a mold infestation now, so I will sue them for pain and suffering as well. I even am looking into getting a certified paralegal degree to have access to the legal sites. We must stand against this tyranny! Thank you Neil for all you do and I will be in touch to build a game plan; All the very Best, Scott Susman, Constitutional Advocates

  54. Justme,

    Don’t move until you are forced to and, in the meantime, save, save, save. There comes a point where you don’t give a hoot about the house (I’m there) but, indeed, it is a question of principle. And I too will go all the way to jury trial. It’s going to be increasingly more difficult for banks to find 12 heads who have not been affected, directly or indirectly, by the atrocities committed by the banks.

    WI, right?

  55. I do not want to ‘win’ per say. I do not want to be stuck for the next umpteen years.If anything I’m going to move out and keep fighting them for the hell of it because they are corrupt bastards and hell, it’ll make me smile.

  56. pathetic it reminds you of the Ford Pinto, GMC pickup truck, Ford winshield wiper (the guy won after 30 years)

  57. My thoughts exactly.

  58. Good for you, justme. I applaud your tenacity and gumption. No matter what the outcome more NEED to fight. I too, am in the fight of my life and it is no longer is about the house, it is the principle. Circumventing the law, breaking the rules of civil procedure and counterfeiting are crimes, I call it “financial treason” and I am not backing down, even if they are successful…we have a lawless and corrupt system in play and we all need to put a stop to it.

  59. Poppy – I am already there! I have been for quite a very long time. I have been back & fourth with them in court with filings & briefs and after my last sledge hammer they want HAMP. I want to take it to trial.

  60. The are moving the defaulted property, “slowly” into the system. A very calculated move by the banks, servicers or whomever to give the appearance of a slowing of defaults. I watch them daily on HomePath, indexpost,HUD, homesteps, etc….all moving from Fannie and Freddie.

    And we have more on the way with ObamaCare and the reduction of hours in the workplace, they are tied together.

    And justme, my take on the HAMP…they usually take all your payments, while still processing the foreclosure and after you get the notice of foreclosure and a date, they tell you, you didn’t qualify and keep all of your payments. Perhaps you will be different…I hope so!

  61. I’ve been using “modclosure” in conversation for several months now… Just sayin’

  62. Iwantmynpv,

    What did I say? Yep, time to stock up on beans, rice, tooth paste and toilet paper…

  63. I would appreciate some “thoughts” please. (none taken as advise…)
    I’ve been put into mediation and it seems rather worthless. The lady said it is something where they will work to get the servicer to lower the interest, principal forgiveness….
    They want me to do HAMP.
    They extended the MSJ even longer and I think it would be stupid of me to play along with this. In the meeting the servicer (on phone call) said there will be no forgiveness, no interest reduction….
    But as well, I think it would be stupid of me to not try because in the end a messed up mod would be better than no home.
    So – question. They put you on HAMP ( which the servicer NEVER) participated in before- and I ‘trial’ it for a few months – meanwhile – the attorney for the servicer said he would ask the case be dismissed and I drop my counterclaims.
    Not happening.
    Is that the scheme here? Stick you in a trial, meanwhile get you to drop all you have done pro`se, and then sabotage the trail and caome back to foreclose!?
    Really would appreciate your thoughts here.
    Thank you

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