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‘ForeclosureGate’ Heats Up Across The Country

October 21, 2010 by  

'ForeclosureGate' heats up across the countryMajor mortgage lenders are under scrutiny from state authorities across the nation over alleged improprieties relating to their foreclosure review processes. 

Over the last several weeks, reports surfaced of several mortgage companies' employees who swore in depositions that they signed thousands of foreclosure documents without having read them. In this, they broke state laws and potentially deprived some owners of a chance to save their homes, which, for many, are their main asset and source of wealth.

The banks in question include Chase, Wells Fargo, GMAC and Bank of America, and law enforcement agencies from all states and the District of Columbia claim that these institutions rushed through the foreclosure process and failed to file proper paperwork. Legal experts cited by The Associated Press believe the banks will eventually be compelled to accept an independent monitor to ensure their compliance with foreclosure laws. They may also be subject to penalties and be forced to settle with some of the affected homeowners.

Lisa Madigan, Illinois Attorney General, wrote on The Huffington Post that the foreclosure system as practiced by these banks is "a Kafkaesque process that millions across America navigate as they turn to their lenders in hopes of a lifeline but instead are thrown an anchor."

According to RealtyTrac.com, the number of foreclosures in September was 1.1 percent higher than a year ago. It also increased by more than 2.5 percent since August. 

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  • http://GOGGLE vaksal

    LIKE they say it takes a crook to spot a crook,in this case a bunch of white collar government crooks,gave the american peoples tax dollars to a bunch of white collar banking crooks,sounds like the wall street bailout white collar stock brokers(WHITE COLLAR CROOKS)and who is holding the empty sack? the american public,and heres the kicker,they all made million dollar bonuses for being such good crooks,and it only cost everyone in this nation everything they owned,does it sound like (ENRON)the biggest ponzi scheme ever pulled,an only one or two people were sent to their golf course jails,and only suffered a couple of million dollar fines,and years ago mr.micheal milken the guy who now teaches in california,economics,what a joke,train better white collar criminals? the point i am trying to make is who can anyone trust in government?when these criminals have robbed this nation blind,and nothing has been done to punish these crooks,so i look at it this way,here we go again,zip will be done,its all hype,because the crooks are all the same(WHITE COLLAR CRIMINALS)and they work for the government robber barons.and its a sad truth.

  • s c

    First, it needs to be said that GB is NOT in the White House. Contrary to what anyone says, GB is no longer there, and hasn’t been there for about two years.
    That having been said, it needs to be pointed out that a bunch of retards who think we need The Obummer’s healthcare scam made NO effort to read or understand the damned thing. What does that have to do with anything?
    Those responsible for this foreclosure circus never took the time to read what they signed. THAT, is more than a coincidence, folks. THAT is a pattern
    unconscionable, immoral behavior that MUST be punished to the fullest extent of the law.
    Kindly note that if those miserable bastards get away with what they did, then America is no longer a nation of laws. America would be a land of thugs,
    anarchists and degenerates who deserve whatever the rest of us think should be done to them. In healthcare AND foreclosures, should the punishment not fit the crime?

    • Disgusted

      Great Post. Who in their right minds signs anything without reading it. I for one am not in the least bit surprised this happened. Our banking system is corrupt and has been for a very long time. The fact that we actually bailed these people out is a tragedy!
      I hate Chase bank – they don’t care about you and they have proven that to me time and time again. I will never do business with them again….EVER! Bunch of crooks.

    • Warrior

      What happened to 20% down? Lisa Madigan? Lisa’s Daddy is in charge of ILL. Get real you creeps.

  • http://www.wellsfargomortgagefraud.com Donna

    Instead of buybacks and fair business dealing. Wells Fargo chose to pay legal bills. Just my case alone, how much legal fees Wells Fargo has paid to defend its mortgage fraud.

    Letter to Wells Fargo Spokeswpman Vickee Adams,

    Dear Ms. Vickee Adams,

    In your recent Wells Fargo’s press release, you declared that “”Our records show that
    Wells Fargo’s foreclosure affidavits are accurate, When the company finds employees
    that don’t follow procedure, it takes “corrective action.”

    That’s a lie. I can say for a fact that Wells Fargo made us fraudulent mortgage loan and foreclosed my home based on hugely inflated and fraudulent appraisal and refused to correct its mortgage fraud.

    Wells Fargo teamed up with its attorneys and spent last 4 years in Nevada courts defending its appraisal and mortgage fraud.

    Wells Fargo and its attorneys knew it’s Category C Felony to make mortgage loan based on fraudulent appraisal.

    Wells Fargo and its attorneys knew it’s Category C Felony to foreclose home based on fraudulent appraisal.

    Wells Fargo chose to violate the law and chose to defraud us.

    Hold Wells Fargo Accountable! Save American Dream! Restore banking integrity.

    Please sign the Petition at http://www.wellsfargomortgagefraud.com. Let our voice be heard!

    • FlaJim

      Donna, did you object to the appraisals prior to closing? Did anyone hold a gun to your head and tell you, “Buy this house – or else”? Of course not. Your arguments are specious and that’s being polite.

      The fact remains that in all these foreclosures, the mortgagor didn’t pay what he/she owed. The rest of this is procedural nonsense and an attempt by Dems like Chris Dodd and Bawney Fwank to distract attention for their part in forcing banks to offer loans to people who couldn’t afford them.

      There’s no question there are some real creeps in the banking industry who’ll try to nickel and dime you to death with various fees and charges on your bank accounts but a loan is a very simple document: Make the payments or lose your collateral.

      • JC

        Those are fair points Jim, but here’s a thought…
        What if the same banks that gave us those very easy to get mortgages with easy terms did so knowing they were going to yank the rug from under the American economy?
        Might that not be considered a major league fraud?

        • Dan Burke

          Is that a damned if you, damned if you don’t? A no win scenario for the banks?

          Scenario 1. If they “held the line” and refused to give the bad loans, they would have been boycotted and embattled. The media, public and politicians would have called them the enemies of the people for withholding loans from those in need.

          Scenario 2. If they go with the government and pressure from community organizers threatening them, they have government systems promising that they’ll get their money even if the American people get hosed in the process…. So money now, enemy of the people later….

          Let me see, which scenario would you chose? Be incriminated now and make NO money? Or be the hero now and make a fortune, then become the enemy of the people? In both choices you will be the enemy of the people. That part is unavoidable. Of course, that was in the past, so we being of short memory forget that we were calling them criminals when they were refusing to offer the bad loans at first. Much easier to paint them as the villains.

          On a personal note, while I stand by this argument that we forced them into scenario 2 and now we are punishing them for it, I personally believe that scenario 1 would have been the more morally correct response. Unfortunately, any business that did take the path of scenario probably had financial troubles while we were making them out to be enemies of the people and were giving quick profits and money to the institutions that bought into the ponzi scheme. In business, it can be a matter of just a couple bad years to drive a business into the ground. Those that bought into this scheme made money quick and early so they had a distinct competitive advantage over more honest businesses and it took several years for the house of cards to collapse on itself so that is several years to drive the more honest competitors into obscurity, just footnotes in history that no one will remember.

  • Norm

    The bottom line is if you can’t pay your mortgage you lose your house. It makes perfect sense to me.
    I don’t care how you got to where you are. If you dont’t pay for your home, and you are allowed to keep it, someone else will wind up paying.
    It’s time to stop rewarding the bad and punishing the good!

    • lkar

      Norm I see your point. But as sc has pointed out. They do not even bother to read the foreclosure papers to ensure they are correct. This is the rule of law that seems to be brandishly ignored when convenient to those with the power. Us poor SOB’s get left out but we get to pick up the tab!

    • Robert S

      Alot of people bought 2nd houses thinking the market was going to keep getting higher. Then when it started going down they couldn’t sell them. Mortgage brokers were falsifying loan applications just to make a commission. Why is it that none of them are being prosecuted?

      • Norm

        Robert S

        The bankers are not only not being prosecuted, they have been, and are still, being rewarded quite handsomely.
        That still doesn’t excuse the buyers who entered into these ridiculously risky mortgages. Their only hope for paying them off was the possibility that the properties would forever increase in value at a rate that was clearly unsustainable.
        Anyone who takes big risks needs to expect possible losses.
        I didn’t buy a house that I couldn’t afford, and I don’t want to bail out people who did.

        • Robert S

          Norm You will be because we are going to dump more Billions in to Fannie and Freddie.

  • JC

    Anyone facing foreclosure needs to demand to see the original deed on that property. After the greatest fraud ever perpetuated (other than the 16th Amendment that is)on the American people in particular, many of these banks have been producing false documents that lay claim to property. In some cases 2 or 3 banks are laying claim to one property.
    That’s because they have no idea anymore what their assets truly are or who owns what. And this is the result of selling packages of bad mortagages to each other…they really don’t have a clue.

    • GingerB4

      I concur. My Note is missing or destroyed, I’m fighting my foreclosure nearly 2 years now. I was told by my servicing company that they couldn’t help me renegotiate or modify or otherwise help me until I was 3 months past due. I was denied any help from the company I dealt with after much ado. The first notice I received after becoming 3 months past due was a Foreclosure action and contained the documents, I had signed in a refinance, no note at all, and 2 documents that were forged with my signature (one of which was a balloon agreement!). In my ignorance I signed closing papers on Dec. 24th that were back dated to Dec. 22nd. When I questioned it; I was told that they were sorry they were late, but if they changed all those papers now that it would cause all my fees to go up and make me default on my then current mortgage. 10pm Christmas Eve! I didn’t know at the time that you’re supposed to have 3 days to renege if you’re not satisfied with the documentation. But I know I would never, never! sign a balloon anything! They are blatant forgeries. EVERYBODY OUT THERE FACING FORECLOSURE NEEDS TO BE VERY AWARE OF THESE MISGIVINGS! It’s forcing me into bankruptcy and I don’t know if I’ll have my home of 14 years tomorrow. It’s a terrible, terrible feeling. Everything I’ve ever worked for is crumbling before my eyes. I doubt very seriously that the judges will serve justice. I really think that the powers that be are trying to bankrupt all Americans. This way we all have to rent from homes that they own and thereby take the remainder of what we have earned after taxes. Meanwhile, foreclosees still have to pay what they couldn’t get from the foreign investors. Not even a roof over our heads. Soon the insurance industry will be govt. run as well. watch VOTE WELL… FOR HONESTY… VOTE WELL… FOR FREEDOM, LIBERTY, JUSTICE! Let’s try to save our America! VOTE YOUR CONSCIENCE!

      • JC

        Sorry to hear it.
        Further testament to our criminal Banking system…

  • http://com i41

    Banks have always in the same boat a as used car dealer, they are not your friend and they will sell you a lemon as fast as the next mobster.

    • Robert S

      The big banks will break the law because they will only be fined. The crooks walk away.

      • s c

        Here’s where you can answer your own (implied) question, RS. WHO decides what banks CAN and CAN’T do? Hmmmmm? Do you have a clue, and would you ever admit it?

        • Warrior

          Someone related to Lisa Madigan, Richie Daley, Bwarney Frank, Chris Dodd and Charlie Rangel I’m sure.

    • alpha-lemming

      A little more complicated than that. Refer back to CRA ’97. It was determined that banks weren’t offering mortgages to low income (predominatly black) people. Why? Because the banks are racists. So, fines/penalties etc. will be levied unless mortgage “quotas” for the poor rise.

      Leap forward years later after complying with CRA ’97 and you find mortgages among the poor defaulting. Why? Because the banks are racists. They’re exploiting the poor by selling them mortgages they couldn’t repay for the premeditated purpose of foreclosing on them.

      And, don’t forget… the first round of “mortgage bail-outs” for all those underwater loans?? In excess of 50% of those people is in foreclosure… AGAIN. Deadbeats when given a second chance are deadbeats again. WICKED SHOCKAH!! Didn’t see that one coming.

      • jd

        go to http://www.washingtonsblog.com re: Mortgage Electric Registrations Systems a shell co a data base to avoid paying recording fees for assigning mtgs into a trust. it was set up in a shell co that would own all the mtgs in the country. The note and deed of trust was split from the promissory note. The note holder lacks the power of foreclosure in the event of default. 62 mil mtgs are now held in the name of MERS. This crime would qualify under the RICo statute. Read all whole story.

      • Robert S

        Alpha That’s not completely true. If these people thought they could pay $2,000 monthly mortgage on a $1500. a month salary then they got what they wanted.

  • jopa

    Robert S And not only fined, if they rip off the public for $100 million dollars and get caught, the fine will be a whopping $15 million dollars.Those poor bankers then only make $85 million in profit.I sure hope they get a tax break.Not.

    • Robert S

      Michael Milken stole $3,000,000,000 while on Wall Street. He was fined $1,000,000,000 and spent a little more than a year in jail. The worst punishment was he couldn’t wear his toupee in prison.

  • http://com i41

    We would have to jail 75% of Congress for creatiing ponzi schemes and absconding with taxpayers money , as well as fudging on their travel expenses as Lincoln got caught doing. The democrats should take some of their foreign money and pay taxpayers back for campaigning expenses for the criminals like Blarnet Flanks and Greasy Rangel.

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