Mfarmam: bank foreclosure

Ash was in the middle of working out a loan modification when this happened. “This is in essence a burglary,” Ash remarked. The bank took her late husband’s ashes.

But it doesn't look like there's going to be any concerted effort to fix any of these problems -- if the Fed has its way anyway:

Top policymakers at the Federal Reserve are fighting efforts to rein in widely reported bank abuses, sparking an inter-agency feud with the FDIC and the Treasury Department. The Fed, along with the more bank-friendly Office of the Comptroller of the Currency, is resisting moves to craft rules cracking down on banks that charge illegal fees and carry out improper foreclosures. The FDIC supports such rules, according to an FDIC official involved in the dispute.
The new regulations would rein in debt collection, loan modification and foreclosure proceedings at bank divisions called "mortgage servicers." Servicers have committed widespread fraud in the foreclosure process. While the recent robo-signing of fraudulent documents has received the most attention, consumer advocates have complained about improper fees and servicer mistakes that lead to foreclosure for years.

"Given that we've seen a massive failure in servicing practices and a massive failure to address servicing in an honest way, I think this is important," says Joshua Rosner, a managing director at Graham Fisher & Co., and longtime critic of the U.S. mortgage system.

Last week, the National Consumer Law Center and the National Association of Consumer Advocates published a survey of 96 foreclosure attorneys from around the country, attesting that servicers have pushed 2,500 of their clients into the foreclosure process, even as the borrowers were negotiating loan modifications with the same servicers.

The Fed is run by bankers, after all ...

I think this story tells itself. But if you haven't been following the details I highly recommend dday's coverage on this over the past few months if you want to catch up. It's an astonishing story.

Meanwhile, the wonks at Naked Capitalism have put together a petition to ask the regulators to do their jobs.

As readers may know, the banking industry is trying to prevent the FDIC from moving forward with its proposed reforms on securitizations and is also attacking related SEC reforms, namely amendments to Rule A/B.

To further the effort to curb servicer abuses, please visit the website, StopServicerScams, and sign the petition. As we have written, and as experts and foreclosure defense lawyers have reported in Congressional testimony, and as pending lawsuits by attorneys general in Arizona and Nevada allege, servicer abuses are a significant cause of foreclosures. These include including delaying and misapplying payments, using false hopes of pending mods to extract more payments from consumers, and applying compounding junk fees.

We will submit the signed petition in early January. Thanks for your support in this important effort.

.

Annual Holiday Fundraiser going on right now. If you can help support the blog, I appreciate it. Cheers!

digby 12/22/2010 10:30:00 AM

|

Scores of HOMEOWNERS DO NOT CONTEST FORECLOSURES BECAUSE:

1. They don’t have knowledge of the law in order to recognize which aspects of foreclosure are legally challengeable or even fraudulent.

2. And even those who identify wrongdoing lack funds to pay for attorneys to represent them.

3. Homeowners are told to come to foreclosure auctions with $$$$$$$ that they do not have, SO THEY STAY AWAY from foreclosure auctions.

These homeowners are oblivious about sometimes “straw buyers” and sometimes lawyers in charge of foreclosures, obtain ILLEGAL ownership of people’s homes; and pay literally nothing through “credit bids;” and that those recorded deeds from such auctions are null! For these very reasons, there needs to be a probe of lawyers who file foreclosures. http://chn.ge/eU2zAm

Also, the average lay person doesn’t know about legal REQUIREMENTS of “standing” that prevents their homes from being repossessed via non-existent lenders or via lenders which have no ownership of promissory notes.

Yet, COURTS ARE SUPPOSED TO ENFORCE STANDING and compliance with established laws! Illegal, defective, fraudulent foreclosures are the cause of useless property deeds for real estate sales; title insurance companies refuse coverage on foreclosed properties –and more!

Further, after certain foreclosure auctions (via simulation) result in fraudulent – NOT LENDER ACQUISITIONS, by lawyers or straw buyers, the common scenario becomes property flipping, neighborhood blight, rodents, and so on!

*Sample of fraudulent foreclosure acts:

–Deliberately use defunct lenders, lenders without “standing” for false civil and bankruptcy foreclosure proceedings.

– Create and conceal malpractice foreclosure delays and engineer billable litigation.

– Orchestrate sham foreclosure auctions; property never acquired by lenders, but ‘straw buyers’

– Commit actionable wrongs (unfair debt collection, fraud, various torts) that create lawsuits

– Self-dealing foreclosures which certain lawyers themselves obtain foreclosed properties for flipping.

–Foreclosures naming defunct lenders, illegally recorded property deeds, flipping, blighted communities.

– Unconscionably create false deficiency judgments against property owners after straw buyers acquire homes for pennies on the dollar.

– Intentionally false BANKRUPTCY COURT “Motion to Lift” and “Proof of Claim” on behalf of non-existent lenders which conceals fact of “NON-SECURED” mortgage debt.

–Involved in fraudulent collection of property damage insurance, as well as mortgage-default insurance.

–Fraudulent foreclosures abet loss of property taxes to city revenue, rodents, vagrants

– Thousands of families made unlawfully homeless from null foreclosure proceedings.

Foreclosure lawyers are officers of the court. Lawyers are required to know applicable laws and civil procedure; this knowledge is not required from mortgage lenders, nor loan servicers. Lawyers are the ones who file those inadequate or questionable foreclosure which lead to useless property deeds and impediments to real estate sales; title insurance companies reluctance to cover foreclosed properties; mortgage default claims disputes due to defective foreclosures.

*MORE info: Request for Congressional Foreclosure Panel to Examine Foreclosure Lawyers

http://www.change.org/petitions/view/request_for_congressional_foreclosure_panel_to_examine_foreclosure_lawyers#

bench craft company scam

Wednesday, December 22, 2010

bank foreclosure

No comments:

Post a Comment

Followers

Blog Archive

About Me