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Billions Meant for Struggling Homeowners May Pay Down Deficit Instead

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A representative from Bank of America meets with homeowner Alysa Cerisier, right, to discuss mortgage modifications at a workshop on Aug. 25, 2011, in New York City. (Spencer Platt/Getty Images)

With housing prices dropping sharply, and foreclosure filings against more than 1 million properties in the first half of this year, the Obama administration is scrambling for ways to help homeowners.

One place they won't be looking: an estimated $30 billion from the bailout that was slated to help homeowners but is likely to remain unspent.

Instead, Congress has mandated that the leftover money be used to pay down the debt.

Of the $45.6 billion in Trouble Asset Relief Program funds meant to aid homeowners, the most recent numbers available show that only about $2 billion has actually gone out the door.

The low number reflects how little the government's home loan modification and other programs have actually helped homeowners deal with the foreclosure crisis.

The programs have been marked by poor oversight and consistent under-enrollment. Homeowners have been forced to navigate an often bewildering maze at banks marked by slow communication, lost documents and other mistakes.

The amount of money spent is also low because the government pays out its incentive over a number of years. As of July, according to a Treasury spokeswoman, the government is on track to eventually spend $7.2 billion helping homeowners enrolled in its main loan modification program. That number doesn't factor in other homeowners who may enter the program before it ends in December 2012, but it does assume that all homeowners currently in the program will be able to continue making payments.

In November, the Congressional Budget Office lowered their estimate of the total amount of money the government would spend on its foreclosure relief programs from $22 billion to $12 billion. (The New York Times reported today that the government has "spent or pledged" $22.9 billion of the TARP money so far, a figure that's dramatically higher than ours and that the Treasury spokeswoman said was the Times' own number.)

According to the original TARP legislation, unused funds should be returned to the Treasury and used to reduce the debt. While Congress has the power to re-route those funds into new programs, Republicans seem unlikely to endorse such a plan.

An Obama administration statement noted that they were continuing to look for ways to "ease the burden on struggling homeowners" through new proposals and reconsidering old ones.

The other ideas the administration is looking at have received mixed reviews. Among them: turning foreclosed homes into rental properties or allowing homeowners to refinance their mortgages at today's lower interest rates, an old idea that may not actually help a large new segment of homeowners.

"We have no plans to announce any major new initiatives at this time," the statement noted.

Barry Schmittou

Aug. 25, 2011, 2:56 p.m.

Ms. Beckett wrote ;

“The programs have been marked by poor oversight [4] and consistent under-enrollment [5]. Homeowners have been forced to navigate an often bewildering maze at banks marked by slow communication, lost documents and other mistakes.”

It seems we can always depend on the corrupt corporations (and the politicians who serve them) to fail to provide competent services for average citizens !!

O Bomba and Bush have helped me to decide to believe in the Bible. The global corruption and incompetence are so consistent I think the only way to explain it is the powers and principalities and wickedness in high places mentioned in Ephesians 6:12

And the greedsters destruction of our earth is so opposite from the lots of love we see amongst the average people on earth !!

There’s even love and understanding between the left and right commenters on Propublica articles, and that’s a beeyouteafull thing to see : )

Why use the money for homeowners when they’ve discovered investment banks want to buy up all of the homes and rent them back to the original owners? Sarcasm intended. Shameful. Recently the NY attorney general was kicked off the panel pursuing mortgage companies. Guess he was too interested in helping people.

COME ON PROPUBLICA—-WHEN ARE YOU GET TO THE REAL TRUTH??? THE PEOPLE DESPERATELY NEED YOU TO EXPOSE IT—-DO SOME DIGGING—-DON’T LET THE FRAUDSTERS WIN—-CONTACT THE ATTORNEY’S GENERAL ASAP!!!!!!

HERE IT IS (from comment section on livinglies.wordpress.com):

“What we need to focus on is that borrower’s subprime refinance was unsecured — a false and fraudulent mortgage — and nothing more than debt collection on a fraudulent transfer of collection rights to a false default debt. Everyone (in subprime refinance) was in (false) default before they even refinanced.
The banks (as debt buyers) accomplished this by falsely placing borrower in current default (and never telling them) — and then the servicer purchases the collection rights from either Freddie or Fannie. Then the servicer “reinstates” the false default debt with a fraudulent refinance. And, if there is a subsequent refinance, that is just another transfer of collection rights. Servicer reports original F/F mortgage as “paid” — but it is “Paid-OUT” — by servicer purchase — and not “Paid-OFF” by the borrower as it should have been by the (fraudulent) subprime refinance. . Thus, borrower remains in default on F/F loan – despite a subprime refinance — and borrower can never refinance with an F/F again — They are doomed if they miss even one payment on the false collection rights — and will never recover because always held in default — on both the F/F loan and the collection rights. BUT BORROWERS should not be paying on fraud!!!! They have a right withhold payments on fraudulent debt.
All fraudulent, all in violation of consumer protection laws — and, because the “creditor” of collection right never validates the “debt” — by disclosing the actual creditor to the false default debt — in violation of FDCPA and May 2009 TILA Amendment. Meaning borrowers should not be paying anything — because of fraud and violation of federal statutes.”

“GSE’S Freddie Mac & Fannie Mae (eFannieMae.com) are vendors, servicers with portals over CLOUD with FIS.
FIS integrated “new” portal OVER CLOUD for ‘non-profit’ foreclousre processors’ who input new alternative investmenet requests of Non-Deposit Trust Company Institutional Investors & Institutional Bankers laundering money US Dollars ‘Cash’ c/o Mortgage Servicers.
The Servicer assigns REO LENDER to foreclose and Servicer advances funds from ‘pre-funding’ of ‘loan trust’ to fund foreclosures while they pay mortgaage-backed loans as required – by Mortgage Servicers who keep ‘currency’ ‘cash’ US Dollars flowing to Institutional Owners c/o Institutional Investors and Institutiona Banks pass thru agencies. WHY?
Mortgage Servicers since 2002 are ‘exempt’ from Patirot Act FinCEN money laundering regulations. HELLO!
The undisclosed third party is a Non-Deposit Trust Company Non-Member who gives CASH to Mortgage Servicer Nominee Tempoary Lender assignee and/or successors. The Mortgage Servicer EXEMPT by Visitorial powers vested to OCC approved by CONGRESS under Supremacy Clause, Congress prevented Attorney Generals from enforcing Consumer Protection Laws 2002 forward.”

Surprise, Surprise.

Carrie,
don’t expect Propublica to do the necessary work they are intended to do which is to defend the weak exploited by the strong. Propublica is funded by the Sandler Foundation. The same Sandlers that were the heads of World Savings that was sold off just prior to the collapse.
I know personally because I worked there for many years.

I’m not sure how you can read the stories on ProPublica and come to the conclusion that their reporting is not drastically more in the interest of ‘the people’ than other news outlets.

Pam—-so who the heck can we turn to—-to write and expose the truth?  I know someone who has all kinds of information about all the “loans’ being ONLY collection rights and not real loans—-but they are in litigation so no reporter will talk to them…almost EVERYONE (in a house or condo), is paying a “debt collector/servicer on their mortgage…not a verifiable “creditor’.  (look at your statement—-it invariably says “debt collector—-ever wonder why???).
The PEOPLE are not being told the truth…
I STOPPED my foreclosure because my SERVICER couldn’t come up with a TRUE CREDITOR…unless they came up with FALSIFIED, FORGED DOCUMENTS.
The “fake loans” were fraud from the start…when you start with fraud, you can only expand on the fraud…this is what has happened to America…thanks to de-regulation, starting on Clinton’s watch…and Obama continues the obfuscation…

What about the new program that the WH is floating, on getting home owners to refinance at the low rate now available if their mortgages are federally backed? Even those ‘under water’ would be able to pay the monthlies and not lose their house.

Banks are simply NOT lending to most people, and the constant drip of horror stories of what happens to those who try to refinance certainly stopped me from even trying.

Maybe this scheme would work better, and would not need congressional approval. (Story on front page of the New York Times today)

Carrie,
I have no answer to your question but I think I read something recently that states debt collectors can’t be paid unless a bargain has been reached with a collection agent and a debtor. I no longer have a statement for a mortgage because I lost my house 2 years ago. No it wasn’t that I owed to much, I lost 80% of my income, thus everything went bust. I would be interested to know how you found out about this stuff tho. I have been following the foreclosure mess but was not aware of this issue to talk about. are you an insider (banking) that knows how this all came about? You do not have to answer my question if it causes a problem for you, I’m just curious how you figured it out.

JJM, I just read the articles in the NY Times. They say the banks are in favor of the blanket refinance program. That make me suspicious. I’ve been trying to refinance for years because of a reduced income and they block me at every turn. There’s always a new reason to say no. I’d hope that the new program is not administered by the banks or at least that participation on the banks part is obligatory.

JJM—Adam Levitin has a useful analysis of the refinancing idea over at Credit Slips. He breaks down different categories of homeowners and asks how each might might be helped by refinancing. His conclusion is that the policy may not accomplish what it’s intended to do.

I link to this piece above, but you may not have caught it. Here’s the URL:

http://www.creditslips.org/creditslips/2011/08/refinancing-malarkey.html

I think the Administration should give this money to the Bank of America so they don’t have to worry about all the bad loans they bought.

Making the Bankers feel better will help the country in the long run.

Pam—-I have been in touch with someone who has been digging for 7 years into this stuff due to personal litigation which forced him to do his own investigation…he had a background in securities and finance…the government and banking has been very successful in obfuscating the truth…this is why the NY Attorney General Eric Schneiderman is being told to “play nice” in the settlement “deal” with the banks, because when he does an investigation into the whole “mortgages securities” fraud—-he will discover the TRUTH!!

THE PEOPLE OF AMERICA HAVE THE RIGHT TO KNOW THE TRUTH, THE WHOLE TRUTH, AND NOTHING BUT THE TRUTH.

read my previous posts until you understand…we all must learn to fight back…

NOT REAL MORTGAGES—-NOT REAL LOANS—-ONLY TRANSFER OF COLLECTION RIGHTS—-WALL STREET/BANKSTERS (under the government’s watch), DESTROYED THE ECONOMY AND STOLE BILLION—AND PEOPLE ARE OUT OF WORK AND KICKED OUT OF THEIR HOMES AND THEN KICKED TO THE CURB WITHOUT SO MUCH AS A ‘SORRY’ FROM THE GOVERNMENT.

THE THE GREEDY MONSTERS OF DE-REGULATION ARE CRAPPING ON AMERICA…AND THE PEOPLE ARE PAYING THE PRICE…NOT THE BANKS…THE BIG BANKS MUST FAIL…

The Banks have ruined the housing market and can’t fix it.

rebelwithaclause

Aug. 26, 2011, 12:22 a.m.

No Rick, The government purposly inflated the housing market to profit package, sell, re-sell, and did I mention re-sell your mortgage. Carie is 100% RIGHT AND ON IT, I also fought and won. But the banks are the big boys puppets, sure Brian Moynihan BOA CEO makes 100 mill a year to be that puppet and hear the grief. But the banks are just servicers or THE PRETENDER LENDER, and it is fraud to the highest degree. It makes John Ghadi look like an ametuer ORGANIZED CRIMINAL, that is exactly what all of this is and was intended to be from the start is RACKETEERING, and a 100 other federal felonies, but who is going to enforce the felonies when it is the FEDS who commited them????? THE ANSWER IS YOU, THE PEOPLE, THE CARIE’S, THE PAM’S, EACH PERSON ADDS UP, YOU TUBE, AND EVERY OTHER POPULAR MULTI-MEDIA FREE SPEACH SOURCE OUT THERE, WILL EQUAL DEFEAT OF THE CORRUPT GOVERNMENT, BUT NOT IF WE TAKE IT LAYING DOWN. We must stand UNITED OR WE WILL FALL, but this war is against who we thought were our allies.

YES WE CAN USE IT BAIL US OUT NOW from GMAC. NEED MODIFICATION PLEASE

Jay
9839 WESTMINSTER DR
HUMBLE,TX.77338

Carrie, thank you for all the information you provide, which makes sense.  It’s simply ludicrous that so many people have lost their homes to this obvious fraud, which sounds like nothing more than a system-wide ponzi scheme.  However, all the media including Propublica is supposed to do is report on the news, not make it.  Perhaps you should contact someone like Michael Moore or Ralph Nader who actually help consumers.  Also, you can copy the postings you made here, put them in an e-mail and/or on Facebook and send it to eveyrone on your list and ask them to forward it.  Be sure to include an e-mail address and/or phone numbere where people can get more information - perhaps your friend’s attorney?  If I were a homeowner facing foreclosure I’d refuse to leave and make such a big noise tot he local media, with the information you can provide, that they will cover it and perhaps take it virile.  It sounds to me like the only recourse for those who have lost their homes is the courts and it’s clear this thing is simply too widespread for the U.S. Attorney General to take on.  It’s an international problem because the housing debacle is behind global financial woes so maybe, by starting at grassroots, so much noise can be made that someone will be forced to pay attention.  Perhaps you and your friends could start a web site to help people?  Good luck and please keep getting the word out.

Quit calling them “homeowners”.  If they actually owned their homes, they wouldn’t need bailouts.  They are “mortgage holders” who got in over their heads and now expect the government (i.e. taxpayers who are actually paying their own bills) to step in and pay off their mortgages for them.

Where is personal responsibility. You got a mortgage you couldn’t afford. Maybe you lost your job, maybe you didn’t really understand the terms or bother to even read them, maybe you decided that your house would always go up in value so you took out more loans, maybe you charged your credit cards to the max. Why should taxpayers have to pay to make you whole??

Where is personal responsibility? You got a mortgage you couldn’t afford. Maybe you lost your job, maybe you didn’t really understand the terms or bother to even read them, maybe you decided that your house would always go up in value so you took out more loans, maybe you charged your credit cards to the max. Why should taxpayers have to pay to make you whole??

The loans weren’t created by themselves.  Borrowers signed up in droves for cheap payments on an asset they believed would go up in value forever.  I have news for you, if it’s too good to be true…  You want the banks to governed properly and responsible for themselves.  I think that is fair.  However, you want no personal responsibility for not paying the loan you signed up to pay.  Actually, you want to keep your house and have other taxpayers pay for it right?

1.  Claim that the American Dream is to own a house (not to control your own destiny, say).
2.  Encourage banks to make loans that can’t be paid back.
3.  Invest in real estate while prices rise; bet against the loans getting paid back.
4.  Crash.  Encourage banks to prefer foreclosure to refinancing the bad loans so they can be paid.
5.  Take profits from #3.
6.  Allocate money to help people caught in the crash.
7.  Don’t pay out money from #6.  Use instead to buy new furniture for your office.
8.  Blame the borrowers.

Stan (and others), the banks hunted these people down and lied to them.  Yes, some people (I turned down every bank in a hundred mile radius) realized it was too good to be true, but when the loan is aggressively misrepresented (I had to listen to a dozen versions of the story and explain the reality to my mother, who was nearly sucked in), it’s called fraud, and the borrowers are victims.  And when the government (via Barney Frank’s legislation) encouraged the banks to participate in such behavior, maybe—just maybe—the government bears some responsibility in the matter.

You can argue that it’s unfair for taxpayer money to be used, but unless you have a way to take it out of the hides of the Congressmen who enabled the situation, it’s not a very good argument.  And when the money has already been taken from us, it’s even less good.

John, banks didn’t hunt down anyone. What they did was ignore any kind of credit standards. SO every deadbeat in the US was able to create loan upon loan based upon an assumption that house prices always rise. Those deadbeats then bought nice cars, swimming pools, and all kinds of wonderful stuff on the additional loans they received. They lived the ‘good life’ for several years on credit extended from transitory real estate prices. Now you want me to pay for their largess. I suggest that you and Warren Buffet contribute more taxes and stop asking for money from me.

@Melanie, dooz, R Doozle, Stan

You say that people believed prices would go up forever. I didn’t. I also didn’t expect the value of my home to drop in value more than it did during the great depression. Because of that, I can’t refinance. Because my income has dropped below what the threshold for HARP is, I can’t refinance.

Why should the government help people stay in their homes? Because there are not enough people to fill the homes once they’re abandoned. Where do the original owners go? You talk about them as if they cease to exist after foreclosure. They become renters, and as I’ve pointed out in past comments, if their mortgage interest rate was simply adjusted from 6,7,8,9% interest to 4%, many could stay in their homes for the same price. Also, when these people foreclose, the property will resell at a massive loss to someone else. Who takes the loss? The taxpayers you seem to want to protect. Most of the loans are owned by Fannie and Freddie. Bank of America just unloaded a ton more bad loands onto the Government. When these loans go bad, taxpayers lose. Refinancing people ahead of default or foreclosure is loss mitigation (and the right thing to do), not a bailout of irresponsible people.

I agree with Chris M.  The banks from the beginning have put out the propaganda that it was “deadbeat homeowners” who caused this mess. Sure there were those who didn’t do the prudent thing, bought more than they could afford, lumped existing debt into mortgage, falsely stated income etc. Most of these loans have already defaulted, some didn’t even make the first payment (Almost guarantee they were recruited as these were the ones Wall Street bet against). I know it is frustrating to all who are “paying as agreed”. I’ve helped build many homes for people organizations felt were deserving, gave my sweat equity to…only to drive by some time later and see new truck,car and boat in driveway. I’ve tried to be financially responsible my whole life. I have 2 vehicles that are over 20 years old. Dependable and well maintained. I wasn’t able to purchase a home until I was almost 50 years old…only bought 4 years ago due to feeling prices were going to be out of my reach if I didn’t. I put over 20% down (most of life’s savings save for my retirement accounts and pension) being sure I had over a years reserves. Accident at work rendered me unable to work. Major surgery and now disability. I have tried to work with bank concerning HAMP (no request of principle reduction just terms) for coming up on 2 years. Bottom line since they are the servicer, foreclosure is in their best interest, not so as far as investor (Fannie Mae). Which is our (American taxpayers money). I have proven sufficient income and hardship to be qualified. Yet I am denied. Maybe I should have chosen the paths of those I gave my sweat equity to (new house, vehicles and boat) but my upbringing, conscience and integrity will not allow. What would you have me do Melanie,dooz and Stan? Give up what I saved for on a meager carpenter’s pay all my life?

I believe God will prevail and all of Washington is going to pay soon for their corrupt ways.  They can only get away with this for so long. 
Karma!

@
Melanie
dooz
R.Doozle
Stan
John
ChrisM.

NOT MORTGAGES—-NOT REAL LOANS—-WAKE UP—-AMERICA HAS BEEN SCAMMED IN A GIANT MONEY LAUNDERING SCHEME—-LOOK AT YOUR STATEMENT IT SAYS “DEBT COLLECTOR”—-ASK YOURSELF WHY?  STOP BEING SO IGNORANT OF THE TRUTH…or, maybe you work for the banks…


THE TRUTH—-HERE IT IS AGAIN—-(from comment section on livinglies.wordpress.com):

“What we need to focus on is that borrower’s subprime refinance was unsecured — a false and fraudulent mortgage — and nothing more than debt collection on a fraudulent transfer of collection rights to a false default debt. Everyone (in subprime refinance) was in (false) default before they even refinanced.
The banks (as debt buyers) accomplished this by falsely placing borrower in current default (and never telling them) — and then the servicer purchases the collection rights from either Freddie or Fannie. Then the servicer “reinstates” the false default debt with a fraudulent refinance. And, if there is a subsequent refinance, that is just another transfer of collection rights. Servicer reports original F/F mortgage as “paid” — but it is “Paid-OUT” — by servicer purchase — and not “Paid-OFF” by the borrower as it should have been by the (fraudulent) subprime refinance. . Thus, borrower remains in default on F/F loan – despite a subprime refinance — and borrower can never refinance with an F/F again — They are doomed if they miss even one payment on the false collection rights — and will never recover because always held in default — on both the F/F loan and the collection rights. BUT BORROWERS should not be paying on fraud!!!! They have a right withhold payments on fraudulent debt.
All fraudulent, all in violation of consumer protection laws — and, because the “creditor” of collection right never validates the “debt” — by disclosing the actual creditor to the false default debt — in violation of FDCPA and May 2009 TILA Amendment. Meaning borrowers should not be paying anything — because of fraud and violation of federal statutes.”

Roy—-please read what I posted very carefully…this is why they aren’t modifying—-THEY KNOW THEY HAVE NO LEGAL RIGHT TO MODIFY UNSECURED DEBT—-THEY JUST WANT TO FORECLOSE ILLEGALLY AND BE DONE WITH YOU BECAUSE THE COURTS ARE SO IGNORANT OF WHAT IS GOING THAT THEY ARE LETTING FALSE AND FORGED DOCUMENT GO THROUGH…
We must keep fighting back…Roy, tell them you know the TRUTH and they have NO LEGAL RIGHT OT TAKE YOUR HOUSE.  Tell them to PROVE in WRITING—-PROOF OF ACTUAL CREDITOR—-DO YOU GET THAT?  Ask them to show you the LEDGER of the creditor/owner—-whose balance sheet the mortgage loan lies on…THEY CAN’T DO IT BECAUSE THERE WERE NO MORTGAGES…only collection rights…please try to wrap your brain around this fraud…the government and banks have been covering up what really happened because if the truth came out all the banks would fail—-and they MUST FAIL…because what was done to America was TOTAL FRAUD.

Please re-read what I wrote earlier about the “fake loans”...read it ‘till it sinks in…
We have to fight back however we can.
We are NOT “deadbeats”...we are truth and JUSTICE seekers…who have been LIED TO at every turn by an INCREDIBLY CORRUPT government and banking system.

Roy—-
Send CEASE AND DESIST letter—-Send DISPUTE OF DEBT letter—-to EVERYONE—-Demand the PROOF—-I stopped my foreclosure because THEY CANNOT PROVE AN OWNER OF AN ACTUAL MORTGAGE WITH A VERIFIABLE LEDGER SHOWING MY PAYMENTS.

@Carie-You can believe that I’m going to fight for what I believe to be just. Bottom line…I took out a loan and I intend to pay back if I’m given the opportunity. I am an honest person. I thank God every day for being placed in a home early enough in my life and they gave me the proper values. My foster father was president of the local bank…times have changed since then. It has only been these past few years that I’ve come to know exactly how much. I’ve been lied to several times…have been astounded by how these banks deal with people. You can bet in my case I will eventually get my day in court even if it takes all my retirement to do so. Many lawyers have asked why I have not just “walked away” due to being so far underwater…to start over. It is now the principle of the matter now for me. I appreciate your posts as they are informative…I must caution that not all loans were subprime…but similarities are there in all. Chris M. is correct though…it is what you can prove in a court of law…that is the sticking point. Rest assured though, as I believe (don’t want to do a Bachman or Palin) John Paul Jones said: “I have yet begun to fight”.

Carie-

These articles by Lieb, Becket and others have been appearing in Propublica for about 2 years without too much response.

Until you got involved,  the bank employees named Willard, Roy, Melanie, Dooz, R. Doozle, Stan and others weren’t involved, so you are definitely on the Bankster’s hit list by now.

Congratulations.

The last article that you were all over, drew 114 comments from Propublica readers with Willard and Roy being the only professional hit men attempting to contradict your factual arguments with either outright lies or Depression bs about deadbeats etc. and God doesn’t like people that have been defrauded, etc, etc..

The Banksters and their friendly political and big business allies now have solicitied more nitwits writing to Propublic trying to convince the Propublica readership that God and foreclosures are good thing for everyone.

Time was when Propublica readers were drawn to this media outlet because they were skeptical of FOX News always being on the side of the Banksters, Corrupt Politicians, and other media liars of all ilks.

All of sudden those same alleged Propublica readers, who came to Propublica as they had severe doubts about FOX News, ABC, Drudge etc, etc and they are all after your hide.

Wonder who turned them on ???  Were they always readers??

Could it have been the Banksters. Was it the crooked politicians who pockets are being lined daily by Banksters. Was it the state court judges, who owe their judgships to Banksters? Was it the corporate criminals, who owe their credit lines and ability to do busines unfrettered to the Banksters?

Probabaly all of them or at least most of them.

Amazing how you, little Carie, with only capital letters to raise your point has been able change the readership of Propublica in one month with just a few truthful comments and inside information.

Thank you Carie for stiring the hornets nest.

Maybe someone at Propublica will now take up the real fight and stop the marshmellow article that only scratch the surface of the largest fraud ever perpetrated on the human race.

When this is all over, no matter how it ends, the Great Depression and the Holocost may be number 2 or number 3 behind this debacle.

This “Super Scam” will eventually bankrupt many European countries, kill the Euro and damage the US and Canadian Dollar beyond recognition. This not to mention 3rd World status for the US.

What this completely contrived thing really needs to get people to think clearly is a catchy name that describes it perfectly.

I can’t really think of one.

Maybe someone out there has a suggestion? 

The world is driven by catchy words.

Thoughtful inventive people, give it some thought. 

Pray for Eric Schneiderman.

One thing I didn’t mention above is that the HAMP program and any other Re-Fi program is but an extension of the original scam and an attempt to cover-up fraud.

By late 2003 and early 2004 the housing market was showing signs of weakness and the Banksters knew that many people were onto their well crafted plan to fleece the country using MERS.

They had to come up with a government proposed plan that would allow them to get the people who were going to default to start over with “Bullet Proof” paperwork, thus HAMP.

Take note that any of these Re-Fi programs HAMP or others have the mortgage and note all properly filed with the county registrars, the closing are done with lawyers. No more lost papaerwork, no more half assed loan documents etc. etc.

Now it was the media’s job to be certain this program was sold to the masses. Unfortunately, some Banksters screwed some other Banksters and didn’t buy into the program. They came up with every possible way to avoid the whole mess i.e their own programs, designed to avert HAMP, never hiring proper personnel, etc, etc.

And the Fraud goes on.

@Trubee-I will attempt to respectfully inform you of your error in naming me as a “professional hit men” and siding in any way with the banks. Also, I have been coming to this site for well over a year now. I will not bother the reader’s here trying to explain my position again. If you still find the same reasoning AFTER reading ANY of my previous posts here in Propublica (you will find most under “Loan Mods”) then all I can tell you is that you’re misunderstanding what I’ve stated or you have me confused with someone else.

@Trubee-Once again not to be in any way argumentive…your last statement concerning HAMP confuses me somewhat, due to my having BEGGED my servicer to modify my loan with them continually denying me for the most ignorant of reasons. I’ve spent over 18 months trying my damnest to procure. What then would you say the reason for, if as you say they can then have a do over on the paperwork? Honestly friend I’m on the side of the honest homeowner!!!!

The whole bloody messed-up system is going to CRASH sooner rather than later, the Ponzi schemes will fall apart, the government will fall, and we will have nothing left. Instead of building this country on honesty and PAYING YOUR OWN BILLS, it was created on debt upon debt, and now we are at the end of the line, and it won’t be pretty.  Greed, dishonesty, and debt addiction are rewarded; while frugality and living within your income only mean that we have to pay for the mistakes and misfortunes of everybody else. This ship is going down. Never mind hurricane-preparedness, prepare and get ready for the biggest catastrophe ever. Seriously, the Fed has run out of options; the inverted pyramid perched on a flimsy house of cards WILL collapse.

Roy—-I believe she meant the commenter called “Dale”...I certainly don’t believe you work for the banks…I believe you are sincere, and your story is heartbreakingly familiar.  Most people give up, not knowing the extent of the fraud that they were duped into.
You are correct in saying that it matters what “holds up in court”...unfortunately the extent, pervasiveness and downright UNPRECEDENTED nature of this MASSIVE fraud has gone over most of the judges’ heads…or else they have been “paid off” in some way…
The judges have been letting false, fraudulent and “made up” documents shuffle through their courtrooms at breakneck speed…

Thank you Trubee for your vote of confidence…I feel for every person affected by this fraud…we have only to look at the headlines to see what the Wall Street/Bankster/Fraudsters (in collusion with the government), has done to America.

They didn’t count on us learning the truth and fighting back—-BUT WE ARE.

I am posting it again:


THE TRUTH—-HERE IT IS AGAIN—-(from comment section on livinglies.wordpress.com):

“What we need to focus on is that borrower’s subprime refinance was unsecured — a false and fraudulent mortgage — and nothing more than debt collection on a fraudulent transfer of collection rights to a false default debt. Everyone (in subprime refinance) was in (false) default before they even refinanced.
The banks (as debt buyers) accomplished this by falsely placing borrower in current default (and never telling them) — and then the servicer purchases the collection rights from either Freddie or Fannie. Then the servicer “reinstates” the false default debt with a fraudulent refinance. And, if there is a subsequent refinance, that is just another transfer of collection rights. Servicer reports original F/F mortgage as “paid” — but it is “Paid-OUT” — by servicer purchase — and not “Paid-OFF” by the borrower as it should have been by the (fraudulent) subprime refinance. . Thus, borrower remains in default on F/F loan – despite a subprime refinance — and borrower can never refinance with an F/F again — They are doomed if they miss even one payment on the false collection rights — and will never recover because always held in default — on both the F/F loan and the collection rights. BUT BORROWERS should not be paying on fraud!!!! They have a right withhold payments on fraudulent debt.
All fraudulent, all in violation of consumer protection laws — and, because the “creditor” of collection right never validates the “debt” — by disclosing the actual creditor to the false default debt — in violation of FDCPA and May 2009 TILA Amendment. Meaning borrowers should not be paying anything — because of fraud and violation of federal statutes.”


We must keep fighting back…Tell them you know the TRUTH and they have NO LEGAL RIGHT OT TAKE YOUR HOUSE.  Tell them to PROVE in WRITING—-PROOF OF ACTUAL CREDITOR—-DO YOU GET THAT?  Ask them to show you the LEDGER of the creditor/owner—-whose balance sheet the mortgage loan lies on…THEY CAN’T DO IT BECAUSE THERE WERE NO MORTGAGES…only collection rights…Wall Street played fast and loose with your “signature”...please try to wrap your brain around this fraud…the government and banks have been covering up what really happened because if the truth came out all the banks would fail—-and they MUST FAIL…because what was done to America was TOTAL FRAUD.

Carie-You are probably right…they have me mixed up with someone else. Too bad that so many believe what the banks have done to be anything but fraud. They have done such a job of turning American on American after intentionally causing this problem themselves. Why they had to change ways of recording that had worked for hundreds of years…it was more than just to avoid the small recording fees and save THEM time and money. Melanie is right…this thing is going to crash. For the record I’ve never asked anyone to pay MY BILLS. I didn’t ask for a reduction of my principle, just terms that with HAMP would have only been in place for 1st 5 years anyway. Fannie (gov/taxpayer) gets their money back and I keep my home. IMO no one should have been given a loan without having at least 20% of their skin in the game and definite proof of a job. Banks made all that shit possible…whether or not gov asked them to or not. All I know is I’m not going out without a fight. I’ve been honest and transparent from day one…can they say the same?

Good luck Roy.

Unfortunately you are still calling them “loans”.  I know it’s difficult to understand that there were no “real” loans…only collection rights sold.
If ANYONE took out a “loan” or a “refinance” in the last 10 years or so—-it was part of the GIANT PONZI SCHEME.

I am posting this from ANONYMOUS on livinglies.wordpress.com (he was responding to someone in the comment section there):


“First -tired of parties here working for the crooks –so tired of some here trying to make a business on fraud against homeowners. It simply is not acceptable.
Second, once all proprietary “records” are finally divulged, subprime refinancing fraud is exposed — game over for those who are still trying to making a buck on the fraud.
Third, the securitization of fraudulent “collection rights” — was a scam from the onset — never MBS — get your heads out of MBS — these “refinances” (not actually refinances) — were “loans” REJECTED from traditional MBS — credit enhancement was created from layers of mezzanine tranches for credit default swaps — (purchase of collection rights) — and were NEVER secured mortgages. This is what caused the financial crisis FALL. Understand that subprime securization was manufactured securitization fraud.
Fourth — the direction in courts — has been fraud upon the court — over and over — and, this is finally surfacing. There was no “funding” — PERIOD. —- All that existed was a purchase of collection rights from GSEs — by which “purchase” was covered by insurance for fabricated default and rejects.
Fifth — if you want to say that any borrower is responsible for any non-”funded” loan — that fabricated “funded” loan is unsecured — because there was NO VALID MORTGAGE.
Sixth — There is NO lender. NO LENDER. NO FUNDING — NO MORTGAGE — Just your good “ole” debt buyer shyster — for unsecured fraudulent collection rights.
If anyone hear chooses to think otherwise — you are — and have been — barking up the WRONG tree — and not battling the battle that needs to be fought. You are, instead, feeding the “investors” to falsified collection rights — and giving credibility to a loan that is not a loan — and not a mortgage. You are feeding the homeowners to “wolf” debt buyer “investors” — as they prefer to be called.
Proof?? in the mortgage data base proprietary files.”

Wow, a lot of anger out there. First of all I don’t work for the banks. Second I have lost my job several times in my life. Third I didn’t expect the government to retrain me or pay my mortgage. I used my savings - maybe some of you remember what that is. For those that don’t - its the money you saved in case you hit hard times. I didn’t demand that someone pay my bills or vilify the institutions that loaned me money so I could actually live in a house before I had all the money I would need to buy it, Next time pay cash. Then you will not have anyone to blame. Meantime keep your hands out of my pockets. I have my own problems.

Wow, “dooz”—-that’s doozy—-

Why can’t the truth sink into your head?  OH, FORGOT, YOU HAVE AN AGENDA…

NOT MORTGAGES…NOT LOANS…NO LENDER…NO FUNDING…
DEBT BUYER SHYSTERS…FOR UNSECURED FRAUDULENT COLLECTION RIGHTS…WAKE THE HE** UP…TRY TO WRAP YOUR BRAIN AROUND THE TRUTH OF WHAT REALLY HAPPENED.:

—-HERE IT IS AGAIN—-READ CAREFULLY “DOOZY”—-

“What we need to focus on is that borrower’s subprime refinance was unsecured — a false and fraudulent mortgage — and nothing more than debt collection on a fraudulent transfer of collection rights to a false default debt. Everyone (in subprime refinance) was in (false) default before they even refinanced.
The banks (as debt buyers) accomplished this by falsely placing borrower in current default (and never telling them) — and then the servicer purchases the collection rights from either Freddie or Fannie. Then the servicer “reinstates” the false default debt with a fraudulent refinance. And, if there is a subsequent refinance, that is just another transfer of collection rights. Servicer reports original F/F mortgage as “paid” — but it is “Paid-OUT” — by servicer purchase — and not “Paid-OFF” by the borrower as it should have been by the (fraudulent) subprime refinance. . Thus, borrower remains in default on F/F loan – despite a subprime refinance — and borrower can never refinance with an F/F again — They are doomed if they miss even one payment on the false collection rights — and will never recover because always held in default — on both the F/F loan and the collection rights. BUT BORROWERS should not be paying on fraud!!!! They have a right withhold payments on fraudulent debt.
All fraudulent, all in violation of consumer protection laws — and, because the “creditor” of collection right never validates the “debt” — by disclosing the actual creditor to the false default debt — in violation of FDCPA and May 2009 TILA Amendment. Meaning borrowers should not be paying anything — because of fraud and violation of federal statutes.”


We must keep fighting back…Tell them you know the TRUTH and they have NO LEGAL RIGHT OT TAKE YOUR HOUSE.  Tell them to PROVE in WRITING—-PROOF OF ACTUAL CREDITOR—-DO YOU GET THAT?  Ask them to show you the LEDGER of the creditor/owner—-whose balance sheet the mortgage loan lies on…THEY CAN’T DO IT BECAUSE THERE WERE NO MORTGAGES…only collection rights…Wall Street played fast and loose with your “signature”...please try to wrap your brain around this fraud…the government and banks have been covering up what really happened because if the truth came out all the banks would fail—-and they MUST FAIL…because what was done to America was TOTAL FRAUD.

Dooz—-do you care that the American people were completely defrauded???  And kicked out of their homes due to fraud???
I guess not.
I know it’s difficult to understand that there were no “real” loans…only collection rights sold.
If ANYONE took out a “loan” or a “refinance” in the last 10 to 15 years or so—-it was part of the GIANT PONZI SCHEME.

I am posting this from ANONYMOUS on livinglies.wordpress.com (he was responding to someone in the comment section there):


“First -tired of parties here working for the crooks –so tired of some here trying to make a business on fraud against homeowners. It simply is not acceptable.
Second, once all proprietary “records” are finally divulged, subprime refinancing fraud is exposed — game over for those who are still trying to making a buck on the fraud.
Third, the securitization of fraudulent “collection rights” — was a scam from the onset — never MBS — get your heads out of MBS — these “refinances” (not actually refinances) — were “loans” REJECTED from traditional MBS — credit enhancement was created from layers of mezzanine tranches for credit default swaps — (purchase of collection rights) — and were NEVER secured mortgages. This is what caused the financial crisis FALL. Understand that subprime securization was manufactured securitization fraud.
Fourth — the direction in courts — has been fraud upon the court — over and over — and, this is finally surfacing. There was no “funding” — PERIOD. —- All that existed was a purchase of collection rights from GSEs — by which “purchase” was covered by insurance for fabricated default and rejects.
Fifth — if you want to say that any borrower is responsible for any non-”funded” loan — that fabricated “funded” loan is unsecured — because there was NO VALID MORTGAGE.
Sixth — There is NO lender. NO LENDER. NO FUNDING — NO MORTGAGE — Just your good “ole” debt buyer shyster — for unsecured fraudulent collection rights.
If anyone hear chooses to think otherwise — you are — and have been — barking up the WRONG tree — and not battling the battle that needs to be fought. You are, instead, feeding the “investors” to falsified collection rights — and giving credibility to a loan that is not a loan — and not a mortgage. You are feeding the homeowners to “wolf” debt buyer “investors” — as they prefer to be called.
Proof?? in the mortgage data base proprietary files

@dooz-If you’re referiing in the least bit to me you’ve barked up the wrong tree. First-the government is not retraining me for anything…nor are they paying disability. Second-I’ve never “lost” a job in my life. Maybe because I’m competent and hardworking. Third-Yes, I know what a savings account is…it’s what I’ve depleted the last 2 years. I don’t recall asking you to pay squat for me. Most people don’t have the cash to pay outright. I did put more than 20% down. My hand is not in your pocket…nor will it ever be. But at this moment I know exactly where my foot would like to be.

Carie
I have been suggesting that consumers have some responsibility for protecting themselves. The laws governing mortgages and even the right to own private property are much different in other countries/  You might feel more comfortable living in some of them. I suggest North Korea, you could probably get a subsidized government approved consumer protected apartment there.

Dooz—-you are completely clueless—-did you actually read what I wrote—-or is your bankster agenda so strong that you refuse to read anything except your own posting?

Hopefully other people here will see right through you…

Dooz head—-

“Laws” governing what you THINK is a “mortgage” are no longer in play—-WAKE UP!!!

DOOZ—-WHY DO YOU HAVE TO BE SUCH A JERK?  YOU’RE NOT WELCOME HERE…THESE PEOPLE NEED THE TRUTH—-NOT SOMEONE BERATING THEM AND PUTTING THEM DOWN.

What is happening with the Banks and our government is just common sense. How they thought they would get away with it all is because they are all brainless and have never been reprimanded by anyone for any crap they have ever pulled. Their all just trying to play what ever card they can think of right now, even though none hold any amount of water, and they are just embarrassing themselves making their inevitable collapse and disastrous legacy worse. Most of America has figured out what is going on, and have just stopped paying out any more useless mortgage payments that never go towards their mortgage. Our servicer just lost 4 of our payments in a row they withdrew themselves from our checking account, and want it all again plus late fees even though we have our bank statements to prove they took the money and our bank wrote a letter on our behalf.  We are still waiting for our servicer to find the money they took. The banks can’t even commit these crimes right, and we all know Washington knows what is happening. None of this is new news but it looks like the American citizens are going to have to take care of this stupidity ourselves because no one else is doing anything to stop it, and that in itself is embarrassing enough. Karma never fails and this is going to be HUGE!

william brunot

Aug. 27, 2011, 8:02 a.m.

So much for charity and empathy….most of these post are probably written by so-called christians.  calling folks Dead beats,cause they lost their job, lost their house…seems a little harsh.

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This article is part of an ongoing investigation:
Foreclosure Crisis

Foreclosure Crisis: Banks and Government Fail Homeowners

Banks and the government have fallen short in helping homeowners in danger of foreclosure.

The Story So Far

Systemic failures at the country’s banks and mortgage servicers have exacerbated the most severe foreclosure crisis since the Great Depression, and government efforts to limit the damage have fallen short. ProPublica created an unrivaled database of homeowners who have faced foreclosure, opened a Facebook page to encourage homeowners to share their stories, wrote profiles of some of them, and incorporated their experiences into our reporting. We also provided a comprehensive rundown of the numbers behind the crisis.

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