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There are numerous ways to reverse or cure the foreclosure process. We have outlined legal procedures to vacate judgements, set aside the sale etc. in other articles. One way that we have not explored in depth is the right of redemption. The government sponsored entities (GSEs) have long had a policy of not allowing the borrower to bid on the property at auction or even allowing the borrower to buy the house after it is foreclosed. This policy has been followed industry wide. Martha Coakley Attorney General in Massachusetts has filed a lawsuit to prohibit this practice and allow borrowers or charitable organizations to front the money to get the house back for the homeowner.

The banks are fighting this tooth and nail because of their fear of liability from insurers, investors, guarantors and counterparts on hedges like credit default swaps — all vehicles for the effective sale of the same loan over and over again. This means they could have a liability for as much as 5-10 times the stated amount on the note. So they want the foreclosure sale even if it nets nothing and the property is abandoned.

But in the end this about money between a debtor and creditor. Both are getting screwed by the current policies, which continue to protect the big banks from massive liabilities rivaling the entire GDP of the Untied States. And many states allow for rights of redemption by statute and even in the states that don’t allow redemption (in exchange for a statutory waiver of a deficiency judgment) there are common law actions that might be present to allow the homeowner to redeem or reacquire the the title to the home. The problem I see is that if the foreclosure was fraudulent to begin with and/or the initial origination was fraudulent and faked, the title of the homeowner will remain clouded absent some legislative adjustment in what title means after considering the variables present when there are claim of securitization whether true or not.

Most Judges will agree that if you offer to redeem the property for the amount demanded, you should be allowed to do so. And there is frequently a process by which a borrower can apply to the court for a hearing on the amount of the redemption when the bank balks at giving the information (which is nearly always now).

My point is that even after the foreclosure judgment or foreclosure sale, don’t give up. See an attorney licensed in the geographical area in which your property is located and ask him or her to do the research and let you know what your options include and what is excluded procedurally.

38 Responses

  1. Christine,

    You nailed it on my QM plan.

  2. Christine,

    The problem with Public Banking is that even without politicians running the banks, implementation would be next to impossible.

    I will try to explain later the logistical problems.

  3. Deborah,

    There have been abuses on both sides, whether lender or homeowner attorneys. And the courts have let them get away with it, especially the lender attorneys.

    Most homeowner attorneys are incompetent. I cannot even begin to estimate the number of those I have spoken with, but at the same time, I can name the few good attorneys that I have dealt with.

    I will not get into the MERS issue with you, except to say that MERS was a symptom of the real problem. That problem was a governmental policy that for decades beginning in the 1950’s, there has been an emphasis on home ownership to “correct” the changing economic environment by replacing lost manufacturing jobs with home construction. And this only describes a bit of the cause.

    The problems are not going to end any time soon. The homes at risk are still at levels seen in 2009, and with the Interest Rate changes occurring on HAMP and other modifications, Lines of Equity beginning to reset, ARM resets and with a worsening economy, things are getting worse again. Add to that the changing Baby Boomer aging demographics, and the stage is set for 20 plus years to go with housing issues.

    Time to work on a case.

  4. Gene,

    I’m with you but radical change will not take 10 years (we don’t have that kind of time) and I believe in a public banking system. France for the longest time had the P.O. offer checking and savings accounts and it worked (don’t know if they still do). N. Dakota has public banks and it is the only state that has remained collapse-proof. I think C.A.F is right: the answer is into small community banking with borrowers and lenders having direct access to each other and the institution being the “guardian” of the records.

  5. Christine,

    I know Ellen Brown and have had numerous discussions on her Public Bank idea, the Foreclosure problem and the use of Imminent Domain. I disagree with her on the Public Bank concept because the bank would still be in the hands of politicians in developing the policies. Just imagine the EPA or IRS running the banking system and you get the idea. (It can work. Germany in the 1900’s is a perfect example, but in the 20th Century, with the likes of a Hitler, it is easy to see how the banks in Germany had all resources diverted to the war effort.)

    Imminent Domain was an area where I disagreed strongly with her, but after extensive talks with Martin Andelman, I changed my view. Unfortunately, it will probably not go anywhere.

    On the next big financial crisis, Ellen does a pretty good job, but she underestimates how bad it will be for the banks. The truth is:

    – Almost all larger banks are insolvent under true Accounting Rules. Only by suspension of Mark to Market, do they remain “solvent”. Remove that, the effects of the Fed QE, and the phony housing recovery, and the banks are “gone”.

    – Only 3-4 large bank failures in a short period of time would cause the complete collapse of the financial system. Just think Lehman in Sep 2008. Bank failures could not be contained and others would quickly fall.

    – A new financial crisis would be far worse than the Depression ever was. People fail to realize that society has gone from a rural society with plenty of resources including food and businesses locally to one whereby there is no ability to sustain cities locally. Imagine Ferguson riots in each major city.

    When the new crisis hits, and I expect within the next 10 years, there will be fundamental changes to society which we cannot even begin to predict now.

  6. I’ll be clear
    I respect the legal
    Profession very much it’s the bad ones that spoil it for the good same in my profession the rules are similar as we owe a duty of care and must uphold oublic confidence, so gene clearly I’m not attorney bashing, as for the foreclosure mill guys I believe they are from the dark side .my previous post did refer to THAT attorney who had cause to know and did know and played his part he prepared the order for default judgement the docket ( I have copy) clearly shows I was not served summons or the complaint , there was no hearing, should have been justice court I believe because it involved less than 10,000 to evict me ( btw I left because I did get a note on my door telling me to pack my things and leave by a greedy reo agent and a notice to quit they really wanted that nice house and they got it)
    the address was wrong the judge who was supposed to hear case per court calendar was not the judge that signed the order and the order was hand corrected. The address on the top corner of the order states the fireclosure mill firm that the attorney in question works for he Acts in different capacities, attorney ” for” the ” lender” and resides under umbrella of the substitute trustee also, ( the one issued a trustees deed upon sale ( a lot wrong with that too) yes also and attorney ” in fact” for the purported ” alt a trust Trustee”. The risks these people took with the court is astounding. Yet the order got signed I did not find out for years, and here we are someone else living in my house that never had legal right to possession.
    So gene a day late and a dollar short in my case. However MERS is the DEVIL
    Im unconvinced otherwise with MERS it will continue to be s case of clouded titles unless a borrower can track the sale of the mortgage for himself know for sure who has right to demand payoff and who can issue satisfaction of mortgage and – who can issue a 1099c when the case arises. I ask you after all these ” servicer” ” abuses” regarding those illegal so called ” modifications ” would you trust those nincompoops. Transparency is what is needed otherwise forget it,
    Just my humble opinion I’m not an attorney, definitely been round the block though.
    Thanks. Forgive me for being a tad irritated.

  7. If the cap fits

  8. What will happen if the 35 world biggest banks collapse? According to Ellen Brown, during the last Q20 meeting, it was decided that, worldwide, a bail-in would be implemented. Do not count on the FDIC to cover your fist 250K (FDIC has approximately 46 million to cover… 280 trillions) and prepare to see your retirement/pension plan being confiscated.

    What is the likelihood of such a collapse? Extremely high, starting with B of A.

    A must listen to interview by Greg Hunter.

  9. I get it. What you intend to use is “Based on the accounting and the analysis, both FHA and lender/servicer(s) knew or should have known that it couldn’t fly and they deliberately sold a defective loan with the intent of seeing default”. Am i getting you right?

  10. Christine,

    When you said that my new product might show that the new loans at 97% LTV might be at greater risk, you don’t know the half of it. The Lenders and FHA have no idea what is coming at them.

    I am waiting to get my first FHA default for a loan originated after Apr 10, 2014. I have the entire analysis and arguments automated for processing. And the lenders and FHA have no defenses. (I and attorneys have tried to develop defenses, but what we have is too significant.)

  11. Christine,

    I am working on an email to you right now.

    I must say that I am impressed that you are following Ed Pinto and the American Enterprise Institute work. I have been paying close attention to his Risk Analytics, and am actually preparing to contact him about how he and I could work together to improve his analysis. Though he is doing good work, his data inputs are woefully deficient for fundamental analysis.

    What you should look at is Pinto’s Default Risk on FHA loans. Though very high, he is probably under evaluating it by 10-15%. And now FHA, like Fannie and Freddie, is going back to 97% LTV on loans. This is absurd because from 95% to 97% LTV, Default Risk increases by 50% for all loans generated from 2002 to 2008. At 97%, all loans combined default at a 16.96% rate. If FHA only, expect 35% over 5 years.

  12. For your amusement .. I guess he didn’t have a nail gun..
    Banker dies after becoming impaled on railings in 60ft fall from central London home next door to John Lennon’s former house

    Man, in his early fifties, impaled on railings after falling 60ft from window
    Police said he fell from the fourth floor window of luxury Marylebone flat
    Pronounced dead at the scene despite desperate attempts to save him
    Metropolitan Police confirmed death was not being treated as suspicious

    Read more:

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  13. My pleasure. Stopa is really impressive. I don’t recall where he is exactly. Hopefully he can help you. Barnes isn’t bad either.

    Actually Gene, this little tidbit seriously caught my attention.

    I recall Ed Pinto stating that the only way to get back to sound mortgage practices was to allow banks to be banks and get government out of mortgages and that, but for regulations such as FHA imposing on banks an obligation to respect underwriting quotas, we would never have had the mess we ended up with. I tend to agree. This novel bad idea appears to be a rerun of a F series movie: incentivize (bribe) banks to make risky loans in a climate of no job growth, with the obvious prediction of another disaster. If it were to fly, your product might not be welcome as it would probably prove each and every one of those future loans to be pretty damn risky right from the get go.

    I hope you don’t screwed by your former partners. It is tough enough to be by total strangers but when people cooperate on a common goal, it really sucks.

  14. I have read Jeff’s work, complaints and other filings and I am not at all impressed. Beyond that, I should not say more.

    You can’t win on MERS and those are issues which Jeff argues, at least through 2014.

    You must now attack the modification process and be able to show how the homeowner was harmed quantitatively, and not just saying that they were harmed by the foreclosure itself. (If you have not made payments in years, and you are underwater, then you need demonstrable evidence of how you were harmed, in what amounts, and the actions that led to harm.

    I have reviewed hundreds of modification efforts and now have the ability to offer the attorney the ability to attack the mod process on many different levels, and then tie that to damages. Furthermore, I can now show the Investor Loss Given Default under different scenarios, and those are just now going into Court Mediation processes. At some point, I hope to offer the Investor Loss Given Default scenarios to Investors considering legal action. The full analysis will be much more effective than arguing Reps and Warranties.

  15. Christine,

    Thank you! Mark was the guy I was trying to remember. I think he may be a great fit.

    April, I am familiar with but there is much that she argues that has no validity. Matt, I am familiar with as well, but am not really impressed with him.

    Sorry I never got back to you. I got tied up with a major case, and with the other things I had in the works, things got out of hand. I will send you an email shortly.

    To give you an idea of what was going on:

    For the previous 18 months, ending in Jul 2014, I had been working with a team of banking consultants with very impressive work histories, some of whom consult with the New York Fed. I had been called in to develop new Default Risk Models for loans originated under the new Qualified Mortgage rule. The Default Model would identify those new loans (and old loans) with a high risk of default, and for the loans, would either identify terms for the loan that would lessen the default risk, or else with new loans, mean that the loan would be turned down. This would reduce greatly the problems of the previous years.

    What happened is that when we went to present the product, both mortgage bankers and actual banks said that they had no desire for the product. If they used it, they would have to deny loans and therefore lose money.

    This caused a huge rift between my “partners” and me. They wanted to modify the product so that banks would accept it by “hiding” the risk and “outvoted” me trying to preserve what the original intent was. In other words, banking as usual.

    You will love this part…………I broke off from them and they are continuing in developing the products based upon what they can sell to lenders and mortgage bankers. Meanwhile, I am sitting and “praying” that they will become “successful” because I have all the documentation and proof to prove in a court “intent to defraud” if they ever do hit it big.

    There is a huge problem with the Qualified Mortgage that those who developed the concept missed completely. This problem will come into evidence next year as QM defaults rise. I am waiting with the analysis that will place the defaulted homeowner in the driver’s seat in court. (I did speak with developers of the QM rule and even now, they do not understand the liability.)

    With my other endeavors, I came away with the belief that nothing will change with the banks and the regulatory agencies. There is no real desire to change on the part of the banks, and the regulatory agencies don’t want to truly enforce the laws and statutes. It is all a game……until it all collapses.

    Unfortunately, I cannot describe conversations I have had or been privy to otherwise with banking regulators or lenders themselves. It is revealing and shocking.

    What I can say is that at every level, banking personnel are subject to “bonuses” dependent upon what they can save the bank in regulatory money or else increase bank income through different profit centers. What happens in other departments is not important. To give you an idea”

    I had many meetings with a top Risk Manager for a huge bank. This guy oversaw risk for the bank, and yet knew nothing about mortgages. If it was not $1b or more, he did not care. (Bonus) When talking about default risk, legal risk, modification risk, foreclosure risk, he did not care. It was go see those guys, even though he was responsible for them. Literally, I had 3 minutes to get him interested in a subject, or it was “over”. No wonder the banks got into trouble.

  16. Gene,

    Matt Weidner is also very active in foreclosure defense (he has a blog too) and so is april Charney

  17. I can be reached at

  18. Gene,

    Have you contacted Mark Stopa at ?

    Mark is in court all the time and I have read many of his motions: I find him very impressive. He posted too an actual transcript of a hearing and that guy knows how to fall back on his feet. By the way,you had asked me about my own case won in fed court. Let me re-post my e-mail address in my following post (LL limits the number of things you can include in any one post)

  19. Deborah Wynn,

    Totally funny? Are you referring to finding a competent attorney in Florida, or me?

    I am seeking a competent attorney in Florida to assistance in a foreclosure defense. I simply need to know who to call, and then I can speak with them for a bit of time and know whether they are appropriate for my client.

    Yes, there are competent attorneys across the country that understand what is really going on, and how to argue the facts. I have spoken with and worked with many and they do a great job. I have also fired more incompetent attorneys than you and the others combined have spoken with.

    If your totally funny comment was about what I do, you have no clue about what I do and the benefit I bring to foreclosure defense, and also modification and bk efforts.

    I am not playing a friggin game here. I have a high profile client who needs assistance and can afford to pay. I will provide a full analysis of everything that is actionable, and provide the ways to present it. I just need the competent attorney to present the arguments to the court.

    If anyone can help, that would be great. Otherwise I will find the attorney in Florida on my own, no matter what………………and at no extra cost to my client.

  20. But good luck anyway

  21. Gene
    Totally funny

  22. Christine or others:

    Asking for some assistance. I need a very competent attorney for a Florida foreclosure lawsuit. Not NG, but someone in the courts daily and who understands the arguments to be made in Florida.

    The client has the funds to pay for the litigation services and is willing to pay. This is not an issue. We just need the most competent attorney available in Florida who would be willing to take the case.

    I am doing the Foreclosure and Legal Filing Analysis, the Modification Analysis, true Ability to Repay Analysis, and a full and complete Borrower Damage Analysis and Investor Damage Analysis.

    (BTW, these are proprietary products that I have developed for use in foreclosure defense, bk financial analysis and modification approval. The Damage Analysis is being used in Meditation Hearings for the first time on the 18th, and next month as well in CA.)

    Property is in Lauderdale by the Sea.

    With recommendations, please either post here or post your email address for the info and I will contact you. Again my client is looking for the best attorney available.

    (FYI, I keep a very low profile in these postings and do not reveal my full identity. The reason is that I am well known within the legal community with what I do, but am selective with the cases I take. NG has met me, and others who provide services here also. Other posters have spoken with me on the phone over the years, not knowing who I am.)

  23. Speeding up of the de-dollarization of the world… When I first talked about it, a couple of years ago, over 65% of all world trade was still conducted in dollar. Today, according to different economists, it stands around 32% (mostly with Europe, Japan and Africa). By next week, things will be a whole lot different.

  24. We come into this world naked and we leave it naked

  25. The property is not the point, its how and who took it away from me, thats the point.

  26. Neider,

    That would be my take on it too.

    In fact, the reason the insanity has lasted that long is that banks knew damn well the emotional attachment to those four walls was such that people would become completely destroyed, despondent and irrational. Many a pro se imploded in court by becoming hysterical. Many resolutions didn’t happen because, being so attached to the house, people were unable to keep their cool and see long term.

    Those who came out on top went through the foreclosure, filed BK afterwards, waited a few years and bought something to rehab for 10K or 15K. Many “flippers” started that way.


    45.0315 Right of redemption.—At any time before the later of the filing of a certificate of sale by the clerk of the court or the time specified in the judgment, order, or decree of foreclosure, the mortgagor or the holder of any subordinate interest may cure the mortgagor’s indebtedness and prevent a foreclosure sale by paying the amount of moneys specified in the judgment, order, or decree of foreclosure, or if no judgment, order, or decree of foreclosure has been rendered, by tendering the performance due under the security agreement, including any amounts due because of the exercise of a right to accelerate, plus the reasonable expenses of proceeding to foreclosure incurred to the time of tender, including reasonable attorney’s fees of the creditor. Otherwise, there is no right of redemption.


    Pretty much a NO GO here because most property is still down 40==>55% …. far better to buy something else…

  28. From what I am reading the dollar could be reset at any time. Many countries across the planet are tired of the US Dollar and the constant wars. There is no gold to back up the US Dollar, and we will be returned to a gold-backed currency or be living in huts.

  29. Maybe we will get the legislative action we need to clear the clouds off titles in mass when the Constitution is Restored. Anything is possible. Maybe the 7yr mark that passed in Oct when the FDC Trust was cancelled has something to do with the trurth coming out? Is there a connection there?

  30. Off topic but pretty darn important.

    In 2013, congressmen Walter Jones and Stephen Lynch were given a 28-page report on 911 written by the Joint Intelligence Committee Inquiry. [ “I was absolutely shocked by what I read,” Jones told International Business Times. “What was so surprising was that those whom we thought we could trust really disappointed me. I cannot go into it any more than that. I had to sign an oath that what I read had to remain confidential. But the information I read disappointed me greatly.”.]

    Today, the Senate Report on torture by the CIA was release and, as anyone with half a brain could expect, it is an indictment of the policies of two presidents, one republican and the other one democrat. Such a release indicates that something major is in the works and that revelations of that magnitude are going to flood more and more the media. Keep in mind that what is in the report is now public knowledge, accessible to 198 countries, many of which are no longer allies of the US.

    Under the circumstances, I wouldn’t be surprised if we suddenly learned that the US dollar has been reset, the federal reserve dissolved, the Constitution restored and other such major events.

  31. You should be able to redeem the property for the amount owed, unless, of course, the amount is unconscionable.

  32. Realize the issue here is about possession. The right to possession
    A separate argument but may change the whole complexion of my casr currently awaiting judgement with 9th circuit court of appeals ( there’s a motion in there to supplement the record because it’s material fact that is material to complete the record and so a just outcome)

  33. I am currently appealing a state court judgement that is Truely void because of many legal wrongs. I motioned to set aside .The judge is in a very very bad position, anyone litigating in AZ should look at this and watch it to see how it goes because legally I still have right to posession, in fighting and righting this wrong it will flush out who is who and who these so called assigns and successors are/ were. The burden of proof is on them. I would not want to be the attorney that filed this action.
    My case number is CV 2010 094162
    Sol is ok because I only discovered this ” default judgement” recently

  34. And the US is using the land to payoff its debt to China.
    Because of our trade deficit with China, China demanded payment in Gold and do you all remember what our Gov (us) sent them in our names?

  35. —-the initial origination was fraudulent and faked

    —- the foreclosure was fraudulent

    *** The Titles are Slandered and too Risky for the Insurers to Insure. They no longer cover 2ndary market transactions ( shadow banking market and shadow government).

    I rolled off my chair when MERS offered the 30yr warranties.
    LOL! Do I wear a sign that says FOOL?
    SEE sec B for exclusions.

  36. Garfield is wrong. It is not just about “money”. It is about land, perceived over population, trade balance, leverage, etc. Most of the repo’ed houses have been purchased by the Chinese who now own a big chunk of this country.

  37. In our case – the ‘bank’ (BONY who was not the originator) had a buyer already lined up. Understand that the property is prime waterfront in Maryland. I imagine that it works much the same way vehicle repos are done. My husband used to work for a guy who had a ‘friend’ (an insider) at a lending institution. The ‘friend” would call the guy to let him know that that they were about to repo a truck for $XXX and was he interested? Try as we might to claw it back –and we did spending our retirement to do so – we never stood a chance once the third party was inserted.

  38. In our case – the ‘bank’ (BONY who was not the originator) had a buyer already lined up. Understand that the property is prime waterfront in Maryland. I imagine that it works much the same way vehicle repos do. My husband used to work for a guy who had a ‘friend’ (an insider) at a lending institution. The ‘friend” would call the guy to let him know that that they were about to repo a truck for $XXX and was he interested? Try as we might to claw it back –and we did spending our retirement to do so – we never stood a chance once the third party was inserted.

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