Pretender Mender: Foreclosure Crisis Continues to Rise Despite Obama Team Reports

Despite various “reports” from the Obama Administration and writers in the fields of real estate, mortgages and finance, the crisis is still looming as the main drag on the economy. Besides the fact that complete strangers are “getting the house” after multiple payments were received negating any claim of default, it is difficult to obtain financing for a new purchase for the millions of families who have been victims of the mortgage PONZI scheme. In addition, people are finding out that these intermediaries who received an improper stamp of approval from the courts are now pursuing deficiency judgments against people who cooperated or lost the foreclosure litigation. And now we have delinquency rates rising on mortgages that in all probability should never be enforced. And servicers are still pursuing strategies to lure or push homeowners into foreclosure.

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Most people simply allowed the foreclosure to happen. Many even cleaned the home before leaving the keys on the kitchen counter. They never lifted a finger in defense. As predicted many times on this blog and in my appearances, it isn’t over. We are in the fifth inning of a nine inning game.

Losing homes that have sometimes been in the family for many generations results in a sharp decline in household wealth leaving the homeowner with virtually no offset to the household debt. Even if the family has recovered in terms of producing at least a meager income that would support a down-sized home, they cannot get a mortgage because of a policy of not allowing mortgage financing to anyone who has a foreclosure on their record within the past three years.

To add insult to injury, the banks posing as lenders in the 6 million+ foreclosures are now filing deficiency judgments to continue the illusion that the title is clear and the judgment of foreclosure was valid. People faced with these suits are now in the position of having failed to litigate the validity of the mortgage or foreclosure. But all is not lost. A deficiency judgment is presumptively valid, but in the litigation the former homeowners can send out discovery requests to determine ownership and balance of the alleged debt. Whether judges will allow that discovery is something yet to be seen. But the risk to those companies filing deficiency judgments is that the aggressive litigators defending the deficiency actions might well be able to peak under the hood of the steam roller that produced the foreclosure in the first instance.

What they will find is that there is an absence of actual transactions supporting the loans, assignments, endorsements etc. that were used to get the Court to presume that the documents were valid — i.e., that absent proof from the borrower, the rebuttable assumption of validity of the documents that refer to such transactions forces the homeowner to assume a burden of proof based upon facts that are in the sole care, custody and control of the pretender lender. If the former homeowner can do what they should have done in the first place, they will open up Pandora’s box. The loan on paper was not backed by a transaction where the “lender” loaned any money. The assignment was not backed by a purchase transaction of the loan. And even where there was a transfer for value, the “assignment turns out to be merely an offer that neither trust nor trustee of the REMIC trust was allowed to accept.

All evidence, despite narratives to the contrary, shows that not only have foreclosures not abated, they are rising. Delinquencies are rising, indicating a whole new wave of foreclosures on their way — probably after the November elections.

21 Responses

  1. Neil,

    I called your office several times but no return calls.

    I live in Sonoma county in northern California. Could you recommend an attorney here in this county that you can trust or have confidence in



    *Oktay “Oak” Senvardarli* Broker-Associate Residential and Commercial Real Estate

    *Wine Country Group Mason-McDuffieBy:Better Homes and Garden470 First Street East * *Sonoma CA 95476*

    * Cell:707-360-7137*

    *e-Fax:707-939-2534 Office: 707-939-2034DRE#00277165* Website:

  2. And to answer your question more directly Bob
    I could never afford that house on my income. It was a bubble funny money market but the equity I thought I had induced me to invest everything I had which was totaling over 200k excluding 85k in mortgage payments over the 18 months it took fir that house to ” depreciate” by half – how in Gods name do you refinance outta that- but we know that was never the goal. That’s the counter intuitive part.

  3. The amount on trustees deed was 90k over the amount on the 1099a
    The documents can not be relied upon and I found another record where the down payment was different to what I actually put down.

  4. Deb…how much was that old indymac loan, and when did the “claimed” default occur?

  5. sue them

  6. hey bob, I have a guy with a WaMu loan, current on his payments, and can’t get Chase to respond with proof of ownership of the debt.
    His biz depends on his credit even though it’s a home loan. He can’t default. He is current and they are chasing HIM to modify/refinance. Of course, only to re-affirm the debt to which they have no proof of ownership.
    Any thoughts?

  7. Indeed true Charles but because of the ridiculous complexity of something we signed up for that we all thought was a mortgage and a good faith contract it’s taken a lot of lost suits in court , but, we are HERE- NOW. And we are nit going away, come on you 99% stand up and be counted – they are coming albeit a little late but they will be in time- for dinner,;))

  8. IndyMac like WaMu and other seized bank could not foreclose on government insured loans, and Countrywide who was sold also has the same problem with the FHA & VA loan as they address in the recent settlement were they admitted that loan were deemed to not qualify for HAMPs.

    The settlement directs that those loan will have permanent 2% interest rates and the principal balance reduce too 75% LTV of the property value. Understand the reason the government could make those demands were because there not a “holder in due course”!

    This actually works on some level because people are not aware that the loans were wipe clear because of the handling of the Notes, but it would take money and time to keep pursuing something you don’t have the ability to understand, Just listen to Neil and how many years it taken him to come around somewhat, and them he keeps traveling down the rabbit hole about who funded the loans, instead of taking the same road the Fed Gov took, which is that Fraudulent documents were used. It called Forgery followed by Theft by Deception!

  9. Christ I can not type
    The word Rib was obviously ROB. ( had to correct that one i might loose sleep!)

  10. I had loan that was sold for ” value” to indymac Bob,
    With the usual assignment paper work. My issue is the trustee (s) the purported trust that us in court and the fact that indymac/ one west issued a 1099a stating they are Lender. They got the house via trustees deed upon sale and removed my Lis pendens by court action- so much in between, too much actually to believe possible. Long long story short I would have to file another suit under FOIA for your questions to matter ( not being rude) indymac lied 10 times over and as for the receivership – which happened about time as they noticed me of foreclosure sale or just before- the rest of the ” to do” went to c/o FDIC who sent ALL files to one west who purchased most of indymac assets ” one being servicing rights” so we have one west who got a Free Hail Mary pass, and then – anyway ck link. You have prob seen this – quite a history considering about 95% of indymac assets were toxic per BILL BLACK ( read book – ” best way to rib a bank is to own one”)
    What I do believe is that Wells Fargo is / was in bed with indymac
    I was told by indymac that Wells Fargo said no to modifying my loan – they called it a ” blanket no for all ” wet ” ” loans , this was way back when the bubble burst and I could no longer afford my payments ( after using up all my savings and other assets) they got it all.
    Good luck Bob. Sincerely.

  11. Million thanks to those who stand up for what is right with courage and honor!!!! Neil your the man!!!

  12. Deborah Wynn
    It all sounds like Bible prophecy to me….hold your heads errect because the deliverance is near! I’m no religious fanatic but something is brewing!!

  13. did u have an indymac loan ? if so, how much was it for, i-rate, date paid or foreclosed ?

  14. Bob
    Since indymac reported to IRS they were Lender I don’t see why not ( I’m being facetious )

  15. Rhonda Mills
    Attorneys ( the ones representing the foreclosure mills and “bank NA” ) will sometimes say ” we have all the time in the world”. It’s the next world they are going to have to worry about and i would not want to be in their shoes. karma is – what it is.

  16. i happened to be in a library earlier and opened up my web page and noticed when i tried to read all comments on neils livinglies they were blocked.

  17. has anyone here ever refied a Wachovia, WAMU, Ameriquest or IndyMac loan?

  18. We beat Hitler once we will beat his financiers again


  19. As soon as I suspected I had a predatory loan from MortgageIt, I pursued a loan modification…stricken with cancer, divorce and protecting a child I had custody of from DCF, I was determined to save my home. All I can say was the fight was so UNFAIR but my spirit stayed strong!! I was not a dead beat homeowner. I continue to fight and know for a fact “The Universe is the Law” and as my Native American ancestors say, God is noT asleep through all of this….judgment has been meted out already….its just a matter of time!

  20. Very true and a great post, but it doesn’t help anyone that is in process of losing or has already lost their home, what if any recourse do they have to salvage anything or what can been done to make the bank halt these practices.

  21. The people commenting on this blog know that the real estate/foreclosure nightmare is all too real and is majorly destroying the economy as we speak and will continue to do so until and unless we bring the sociopaths to justice who caused the meltdown. Otherwise, business as usual. I am looking at how much the mortgage industry has shrunk as well as real estate and the jobs that go with it. Housing and all of its ramifications provide millions of jobs, and they are going down the tubes as well.

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