Martha Coakley warned that Fannie and Freddie that they were about to be sued if they did not change their buyback policies. The current industry standard practice is to prevent former homeowners from regaining ownership or possession of their homes after foreclosure. Several nonprofit organizations and other entities have sought to provide relief not only to the homeowners but to the communities in which the homes are located. The current policies prevent any third party from buying or bidding on such properties if they intend to consummate a deal with the homeowner in which the homeowner can either rent or repurchase the property based upon realistic terms, including the current value of the actual property.
Before the era of securitization was considered axiomatic that the lender would attempt to work things out with the homeowner rather than go through the expense and trouble of foreclosure. Once the bank owns the property and is responsible for all taxes and other expenses related to the ownership of the property, including dues for common maintenance. The banks say they don’t want to allow homeowners to regain ownership or possession of the property they lost in foreclosure because this would lead to an avalanche of strategic defaults. As the attorney general of Massachusetts has stated, there is absolutely no evidence that this could occur.
This policy is particularly egregious because of the other policies in the industry which prevent modification based upon economic reality and actually result in a much higher loss to the investors who advanced the money for the loan. There is no reason for the existence of these policies other than the fact that the intermediaries are making more money doing foreclosures than they would ever make by modifying the loans. Of course there is the other issue which is that parties doing the foreclosures probably have no right to initiate any collection or foreclosure because they have no money in the deal nor any right to represent the investors directly. The reason they need to have a right to represent the investors directly is that their money was most likely not used to fund any trust.
As we have seen in many other circumstances, these policies result in ghost towns in which criminal elements take up residence. The only way to clean them up is by bulldozing the entire neighborhood which is happened to tens of thousands of homes across the country.
It is my hope that the AMGAR program will provide some assistance in breaking this logjam. Hopefully the lawsuit filed by the Atty. Gen. of Massachusetts will do the same. It is obvious to me that the intermediaries who have interfered in the relationship between the borrowers and lenders are taking advantage of their superior position of knowledge and sophistication to prevent borrowers and lenders from getting together and comparing notes. The business plans of the charitable organizations and other organizations in which they either by or offer to buy or satisfy the demands of the party demanding foreclosure has led in numerous cases to attorneys for the banks explaining why they don’t want the money, they don’t want the house, but they do want the judgment of foreclosure and the foreclosure sale.
Some of this nonsense is the subject of numerous regulations preventing dual tracking, as you can see from the article below.
http://www.housingwire.com/articles/30184-massachusetts-sues-fhfa-gses-over-foreclosure-law
http://www.soboleskilaw.com/dual-tracking/
For more information on these subjects or for assistance please call 520-405-1688 or 954-495-9867.
Filed under: foreclosure |
Oh Lordy I mean Lanny Breuer
State your Claim . . . Don’t go down the rabbit hole. Reverse!
I forget who interviewed Lanny a Brewer doj after that HSBC drug money laundering case that incidentally went all quiet as far as the media goes, but anyhow brewer said basically he was worried about the impact on the global banking industry – the interviewer correctly pointed out that it was not his job to worry about that.
Most middle class over 50 have more in pension and retirement fund than the amount of loan. They stole it along with the title to our estates and now want to BK the estate to cover up the theft and use taxpayor money to do so. Estate held joint in Entirety. Choke on that. . . Mr Banksta ! !
Louise
My hope is for our judges to simply do their job – rule under the law the facts and correct procedure. The court room is our only hope.
Deb, All of our government agencies and representatives are captive of the big money, the banks, the giant corporations at our expense. Middle class is going down the tubes, and we have to stand up to this.
I never mean to change the subject of the blog but it’s all so enmeshed.
Fannie and Freddie are complicit and I have a real life story which I told on here a while back but I will not digress any further today. Thank you.
Reminder. How can a trustee be in two different courts
One court they are a trustee for MBS in the other court they are representing themselves as a buyer of real property, this my friends was beyond reasonable doubt a unlawful foreclosure and subsequent re sale of my former home.
The question I have is who are these people in court – the documents can’t be relied upon their word can’t be relied upon the numbers on the documents can’t be relied upon the IRS 1099a – well I wonder if that can be relied upon, which until my case is over I can’t say.
Ian
what would you say if I told you the developer/ builder, the table funder and the title company were owned by same entity ab intio and same company later formed a holdings company from assets bought via FDIC – sophisticated, perhaps. My home was lost at a purported ” trustees sale” trustees deed upon sale was recorded on behalf of fidelity nat title by the foreclosure mill sub trustee, hmm dollar amount wrong and I raised the fact that it conflicted with 1099a and therefore cannot be relied upon. Then the purported lender per the 1099a ( also at issue since the trustee for a dALT A sec trust went to court to remove my Lis pendens in fed court yet was postured in state court – which should be justice court to remove me from the home at the same time – contradictory position and despite wrong jurisdiction they got a judgement – ( I was not served and not invited) there are huge legalities wrong here so I’m trying to set that judgement aside right now) next – they sell the home to a new borrower who at this time has been oblivious to my 5 year argument about the real property that this person now appears to own, but for sure he never had right to possession and the title is slandered. This now is endemic, it has to be because the chain of title is broken there are years of gaps and A to D late “assignments” and Robo signers and LPs have proved it.
Neil,
You of course know that the FHFA and GSEs don’t want the “borrower/homeowner” to get the house back by any means so that they (GSEs) can complete the foreclosure.
They then sell the house to the next person and give them a “special warranty title insurance policy, which only insures the new owner from the date that the foreclosing entity actually foreclosed. Could be a couple months, or just a couple weeks from foreclosure to sale. Now the title has been laundered, illegally of course.
Why have you not, on this blog, taken a current “special warranty deed/title ins policy and dissected it for us with your opinions and perhaps the opinions of a couple title insurance experts? This would be a major instructional post.
I am having problems! The Judges name is not appearing?
Do you just put in the Judges name?
Thanks I will check this out.
concerned21 I am not an attorney and I dont know what state you are in but there are forms that the judges have to fill with there financials etc.. so there wont be a conflict of interest. All I can say is that some of them are sneaky. Maybe this website can help. I would also advise the help of the community. I doubt an attorney will help. This is our civic duty and the law.
http://www.judicialwatch.org/judicial-financial-disclosure/
NEVER AGAIN
@The A Man the American Judges are doing nothing but ignoring their oath & the Rules of Law. I am a Blue Star mom who’s son returned home from his 2nd Deployment to find out the only home he ever knew was illegally stolen from us. My life has been destroyed at the hands of these corrupt & unethical banks, attorneys & Judges. I happen to be a rare case where our mortgage was paid off and then illegally foreclosed without our knowledge. The Judges wife is an attorney for the #1 bank accused of illegal foreclosures. I am gonna be a grandmother in December and trust me when I say ” This case will be exposed and the guilty parties will pay”.
As for strategic defaults – en mass. see how they like it when we demand our clear titles back. What is the price tag on that ?
Completely concur Louise.
Thing is i deeply believe it boils down to how truthful the individual is with THEMSELVES and what they internally ” justify” in their subconscious minds so they can keep doing this chit to us, sure they know and I know they carry that burden in their minds and it will screw with them their entire lives, whether they realize it or not , it will. Biggest part of truth is doing the right thing, they can do it if they choose.
For anyone needing encouragement today , as we all do who are trying to get justice. I found this in a book by Guy Finley- the intimate enemy. I liked the following so much,
His words as follows:
” Dare to walk away from all the familiar but useless mental and emotional relationships that give you a temporary but unsatisfactory self. Your true identity is calling you. But to hear it you must be willing to endure, for as long as necessary, the fear of self uncertainty. Thus form of seemingly self abandonment turns into your greatest pleasure as it becomes increasingly evident that the only thing certain about fear is it will compromise you. When it comes to who you really are, there is no compromise. Here is the great mystery. Only when you know who you are not will you know who you really are. Listen for the call of your royal nature. Don’t be afraid of open spaces. Seek truth, not security. You will make it all the way home”
I had to share that. Thank you.
Due process is under siege by the banksters and servicers and judges. I live in a state where the judges and employees of state government have sued BONY Mellon for investing in bad MBS’s. How can the judge NOT know what is going on?
Americans Soldiers are dying everyday so we can have due process in court. What are American Judges doing?
NEVER AGAIN
Neil, why don’t you do some articles on the upcoming tsunami of first lien HELOC resets in which homeowners who are equity rich but cash poor don’t qualify for a replacement HELOC even when their HELOC is a first lien HELOC.
This is a risk free investment for the banks and they would rather foreclose now as the HELOC resets than simply provide a replacement HELOC, aka a REHELOC.