Foreclosure Tragedy Can’t Compete with Ryan Lochte



Foreclosures are no longer fodder for major news headlines. The media intensity diminished as Americans became dulled to the stories of millions of families being kicked out of their homes by big banks and Wall Street-backed hedge funds. Instead, the media whips up a frenzy over Ryan Lochte and his pals vandalizing a bathroom in Rio de Janeiro. Yet, out of the media spotlight, our fellow Americans continue to be foreclosed out of their homes.


Kathleen Gross and her family will lose their Paradise Valley, Arizona home of twenty-five years to foreclosure next Tuesday, August 23. This will mark the end of a relentless years-long battle with a series of mortgage companies. “All of our memories are here. We raised our children in this home,” she wept. “We have been in this neighborhood for over two decades and don’t want to leave.”


The family’s trials began after the financial collapse of 2008. Kathleen and her husband owned a small business developing medical technology to improve patient education. “We were trying to make a positive contribution to the world in our business,” she explained. “It was a family owned and run business.” But, as the economy tanked, the family business foundered. “We were unable to get any expansion capital and were consequently unable to make a living.”


The decline of their livelihood led Kathleen and her husband into financial turmoil. As they fell behind on mortgage payments, the lengthy battle with lenders began. “We started getting notices about our delinquency,” said Kathleen. “We wrote back describing our circumstances and that we are trying to work through a financial difficulty. But they started saying, ‘we are coming to take your house, and we are going to foreclose.’”


Kathleen requested a modification of her loan, which was then handed off from lender to lender. It became difficult to determine who to deal with, leading Kathleen to ask for verification of who actually owned her loan. She sent Qualified Written Requests to the parade of mortgage companies, demanding information and records. “Nobody has been able to prove that they were the legal note holder,” she explained. “Every time we asked for proof that someone had the legal right to negotiate either a loan modification or some other resolution, we would get a notice within thirty days saying, ‘you now have a new servicer.’” Between 2010 and today, Kathleen counted three purported mortgage holders, four law firms, and nine servicers who have tried to collect her mortgage debt. Kathleen shared that not one of them, however, has been willing to negotiate a modification.


Kathleen questioned whether her current lender even has the right to foreclose. Christiana Trust was assigned the mortgage on Halloween 2013 by a signer in the capacity of “Attorney In Fact for Bank of America, N.A.” However, Kathleen provided a Limited Power of Attorney which appears to authorize the signature, but was not signed until July 31, 2014. “How can a Power of Attorney be effective for an act which happened nine months prior?” asked Kathleen, exasperated at what she interprets as fraud.

“We haven’t been able to catch up on our payments and there is no law that requires any of these lenders to give us a modification,” she said. “However, there are laws which govern how these loans are transferred, and these documents indicate that our lender has not followed them. They shouldn’t be able to foreclose until they get their documents straight.”


Consumed by their efforts to save their home, Kathleen and her husband have not established a post-foreclosure plan. “At this point, we don’t have a plan B because we have been putting every ounce of energy into trying to save our home,” she explained. “We have been working on this in all of our waking hours.”


Kathleen and her husband fear the effects foreclosure will have on their family. “We have spent our whole lives trying to live on the right side of morality and ethics, and have taught our children to live that way,” said Kathleen. “We don’t want our children to see this. We feel badly that this is the reality of how the system works in this world, and that they are going to be raising their children in it. You want children to inherit a life and world better than you had, and it appears that they are inheriting an upsetting and sad world.”


Only four days remain until Kathleen and her husband will be forced to relinquish the home they have cherished for twenty-five years. They are not alone in their hardship, as nearly 1.1 million properties had foreclosure filings in 2015. “We are nearly at the point where we would be able to recover financially,” said Kathleen through tears, “and they are displacing us without a conscience.”


Ryan Lochte apologized this morning “for not being more careful and candid” about his actions in Rio. That’s big news. Kathleen Gross’ story isn’t.

18 Responses

  1. I have done everything QWR’s, partially answered. I have send them Conditional acceptance of debt upon proof of debt validation…..I have send QWR;s to the originator, to the sponsor, mers, depositor,trustee, foreclosure firm and they do not answer. Yes partially answered, like we see no error in our servicing and this is privileged information to we have no rights. it is amazing….Our house sale is sept 14. The situation to anyone with a brain, is idiotic. But the majority of those involved are on the brainless, fraud bullet train to get to their destination of prey, which happens to be us. yes, I also complained for years to the CFPB and they always put in papers and everything is presumed correct for these gangster. The CFPB does not investigate it if it is fraud. They really do not look over the papers, just as long as it is answered.
    My demise is the gangster Nationstar…..I know and can prove that my chain of title is totally broken…How…Well, the Note was never endorsed to the Depositor which happens to be a requirement in the PSA….I know it was a table funded loan and predatory…..A broker who I talked to may be 4 times made $20,700.00 for the referral……Securitized, trust closed 2006 and the assignment and at that 2 the same to Deutsche Bank 8 and 10 years after theTrust closed. Rob signors …yes Susan Lindhurst…Stopped paying after I discovered the fraud Jan. 2012, they collected the insurance probably around end April and there comes the notice of the new Servicer, the glorious knight in shining armor……Nationstar with their welcoming letter…..Of course I understand what is going on and dispute it…….the answers are so evidencing the fraud, any brainless idiot could spot that….they could only validate the debt back to april, 2008….2+ years are missing… Nationstar entered the scene as my “alleged” servicer 5 months after I decided not to pay….Very obviously a “debt” buyer…..who is hiding by a non-existent Trust of Deutsche Bank…..The courts are totally run and ruled by gangsters and senile old man in black suits, who should be in mental institutions undergoing psych evaluations and committed until they understand what is right and wrong…this is nationstar. Fraud reports reports their crime scene and does anyone do anything about it? No…..It is runny rampant and will take this country down and those who have been sticking their head in the sand will have little clue of what is happening…..I can go on and on, but instead will fight to the end, but not let it destroy me.I chose justice and truth, they chose fraud and will have to live with that.
    If anyone can help that would be great…..wish Neil would get involved in some of these cases and use his brilliant expertise to help out.

  2. And the answer from the Wells Fargo attorneys was “we don’t have to” and the court agreed.

  3. Tell the assholes to Verify the debt…..

  4. We are in the same boat. The fraud is rampant and the courts are letting it happen. The homeowners understand what is going on better than the judges. I now believe what my lawyer said about judges, “They are a bunch of senile old man in black ropes”. Only a person with the brain and morals of a pea can let this happen. Our house of 30 +plus years will be sold on September 14. An appeal is still in the appeals court, but they basically said in over 3000 words, yes we made a lot of mistakes and did not abide by the PSA, but we can always fix it.

  5. Your title company and insurance policy generally only covers events that happened BEFORE you purchased the if your issues happened while you owned it, it is not covered.

  6. I am sorry to hear of your FUSTRATING loss. These judges DENY us our due process. I just started up a claim investigation with my title company Fidelity Title Insurance Co., regarding FRAUD on our Countrywide Home loan, as I cannot afford an attorney…….. Can your title company help out with legal costs associated with your home loan? BEST OF LUCK TO YOU….WE ARE ALL BEHIND YOU. 🙂
    Please keep us informed of what happens……..

  7. Loulou I realized when I read the CFPB website that no help was coming and I had to file in court myself, which I did. I have been in litigation for 3 1/2 years now. In 2015 I filed a new fraud case….well documented and it was summarily dismissed. I appealed to Supreme Court of VA, I was given 10 min last Dec to convince them to hear the case. They refused to hear it even though the fraud is clear, it is in documents that have feloniously been recorded in the Court’s Land Records. It’s layers of fraud, clearly presented.
    The Wells Fargo attorney is a former law clerk in the state court I know he went back to chambers and all was worked out before the hearing. I have no faith or belief in the judicial system anymore. I am a real estate agent so I cannot in good conscience encourage others to buy property in VA…so I have lost my source of income also. I gave notice of intent to file RiCO charges in federal court….I worked out the details and the only reason to do so is to put the evidence on the public record. I have no belief in the judicial system anymore… I have come to the conclusion that it is time to simply leave the US and i am starting to work towards that goal.

  8. Loulou I have an open complaint with CFPB for 4 years now….it’s still open

    We have an open complaint with CFPB regarding outright clear fraud on assignment of our mortgage.

    When the company responds that there is no fraud, it stays open. Also it is stated on the website:

    “Is that it?
    Complaints help us identify trends and problems in the marketplace and understand the challenges people are facing so we can look for these problems when we supervise companies, enforce federal consumer financial laws, and write rules and regulations.”

    We have then refiled a complaint with the FBI.

  9. Loulou I have an open complaint with CFPB for 4 years now….it’s still open

  10. Loulou I’m way beyond that…..Wells Fargo is the servicer…I have a letter from BOA saying they have no record they are the investor but Wells insists that they are….under the name of BOA they sold the house to a renovator. I have given notice to sue Virginia for Rico claims…they sold the house anyway. All i can do at this point is add the new buyer to the RICO claim that is ready to be filed

  11. You can also take your QWR letter and court documents and file a complaint with the consumer financial protection board and if they’re doing something wrong and you can prove it, sometimes it can lead to a rescission

  12. Well why isn’t she filing a RESPA action against them and why isn’t she getting her credit reports to see what is on her credit report if it’s not the original lender the debt collector shouldn’t be on her credit report. Then if if the servicer is on her credit report she can sue for fair credit reporting act violation. CREDCO is the reporting company that reports for closures/mortgages

  13. Thanks for your kind comment. This is my second house.

  14. @Sheri
    So sorry. Same thing happened to us in 2011.
    We are OK now. Day at a time.
    Sending Prayers to you.

  15. I am sorry to hear this………DON’T GIVE UP……KEEP FIGHTING THEM. We are rootin’ for ya.

  16. Burn it down

  17. Today I learned that while Wells Fargo was delaying their response to my request for documentation about who really owns my loan, they sold the house to a renovator/flipper on August 3, 2016. I couldn’t be more screwed or more angry.

  18. Dispute your debt, make them PROVE they own the note…I just sent a claim to my Title Company explaining that I found fraud from my 2005 Countrywide Loan. Rushmore Loan Management Services LLC has tried to foreclose on me three times since they got the loan. (two months ago)… They are all Fraud! They never even put up the money for the original loan, so how is it a loan anyhow???? Maybe this letter will give a GENEROUS ATTORNEY opportunity to help you, pro bono. Our hearts and prayers are with you. We are side by side with you. Good Luck, God Bless.

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