Journalism in the Public Interest

Bank Errors Continue to Cause Wrongful Foreclosures

Banks continue to blindside homeowners by foreclosing when the homeowners are still awaiting word on their application for a mortgage modification.


(Joe Raedle/Getty Images)

Four years into the foreclosure crisis, banks say they've made major improvements in how they handle struggling homeowners. They've promised, for example, not to foreclose on homeowners who are being considered for mortgage modifications. But that's still happening.

Consider the cases of Laurie Pinkerton and Lisa Peterson. The two women, both Californians and Bank of America customers, had been assured by the bank that they wouldn't lose their homes before they'd been evaluated for a possible modification. Both had their homes sold last month.

Such cases are particularly senseless, because simply modifying the mortgage by reducing the monthly payment might be in the interest not only of the homeowner, but also of the investor who owns the mortgage. Both Pinkerton and Peterson said their homes were sold after foreclosure for far less than they're worth.

Regulators have done little to stop the practice, and the "problem appears to be getting worse," said Kevin Stein, associate director of the nonprofit California Reinvestment Coalition.

Last month, the coalition surveyed 55 foreclosure-avoidance counselors throughout the state. Collectively they serve thousands of borrowers every month. Almost all of the counselors, 94 percent, reported having worked with clients who'd lost their homes while under review for a modification. About half of the counselors reported this happened "often." This year's totals, which are due to be publicly released next week, are higher than those in the group's survey last year.

Regulators have acknowledged the problem but have so far stopped short of solving it, say borrower advocates. More than a year ago, ProPublica reported extensively on how the banks' inadequate systems were causing wrongful foreclosures.

This past April, the federal banking regulators released "consent orders" with 14 of the largest banks requiring various improvements in their handling of mortgages and foreclosures. Prior to the orders, the regulators had not had clear rules on how the banks should handle modification applications. Among the new requirements, banks will now be forbidden from actually selling a home before a final decision is made on a modification. Also, if a homeowner is approved for a modification, the foreclosure process is supposed to stop. The new requirements will go into effect later this summer.

While those are necessary requirements, regulators took a "huge step backward" by not explicitly forbidding banks from pursuing foreclosure at all until a final decision has been made on a mortgage modification application, said Alys Cohen of the National Consumer Law Center.

The administration's mortgage modification program, which offers incentives to encourage modifications, has that requirement. But that program is voluntary for the banks and has been hobbled by lax oversight. What's more, over two-thirds of modifications occur outside of the program.

Federal regulators have the power to require all banks to make a decision on a modification application before moving to foreclose, but they've simply chosen not to.

Allowing the banks to pursue foreclosure while the modification process plays out hurts homeowners in multiple ways. First and foremost, there's the hazard of actually losing the home to foreclosure because of bank error. The two homeowners featured in this story show that this continues to be a real danger, especially in states like California where the bank doesn't need to go to court to foreclose. It's also just confusing and unnecessarily stressful for homeowners. Finally, in a foreclosure homeowners actually get billed for bank costs, such as paying for a bank's lawyers.

Instead of outright forbidding banks from pursuing foreclosure while they're considering homeowners for a modification, regulators have asked the banks to explore whether it's a problem. The orders ask the banks to "conduct a review to determine whether processes involving past due mortgage loans or foreclosures overlap in such a way that they may impair or impede a borrower's efforts to effectively pursue a loan modification."

The primary regulator for the biggest banks is the Office of the Comptroller of the Currency, which has been much criticized for failing to crack down on banks' foreclosure failures. Bryan Hubbard, a spokesman for the OCC, said that the orders addressed the "situations that were most confusing to the borrower" and that the issue would be revisited at a later time when regulators draft new, comprehensive standards for the industry. When asked whether regulators were deferring to the banks on the issue, he said they were not deferring, because regulators would have to approve whatever conclusion the banks came to.

Two homeowners' tales

Although Pinkerton and Peterson live about 450 miles apart, they've had strikingly similar experiences with Bank of America.

Both contacted the bank before even missing a payment to see what steps to take, because they'd taken a hit to their income. Both say Bank of America employees told them they'd have to fall at least three months behind to be considered for a modification (advice that is both inaccurate and frequently given). Reluctantly, both did so.

As a result of missing payments, both soon found themselves facing foreclosure. But at least the modification process had begun, too.

Of course, it went slowly. Like millions of other homeowners, they waited months and months for an answer on their modification applications and sent in the same documents over and over again. Despite sending in those documents, both were told at one point that they'd been denied because they hadn't sent in the required documents (another extremely common problem).

Finally, last month, both had their homes sold at a foreclosure auction, despite the assurances of Bank of America employees that that wouldn't happen until they'd received a final answer on their application for a modification.

"The next thing I know, a guy is knocking on my door saying his boss is at the courthouse buying our house," said Peterson.

What makes foreclosure particularly unnecessary in both cases is that Pinkerton and Peterson had made a point of telling the bank they had the means to bring the loan current even if they didn't get a modification. And unlike many Californians, both had the option of selling the home to pay off the mortgage because their homes are worth more than they owe on their mortgage.

"I never received any letter saying you're denied," said Pinkerton. "If that would have been the case, I would have borrowed the money and went and paid it current." Her family had offered to help, she said.

Both errors are particularly hard to undo because Bank of America can't simply give the houses back: The bank sold both homes to others. In order to get the homes back, the bank would have to essentially convince the new owner to sell the home back. In a case we reported on last year, JPMorgan Chase paid about $20,000 above the purchase price to the buyer of a property the bank had mistakenly sold.

At this point in the two stories, the homeowners' paths diverge.

After complaining to everyone she could think of, Pinkerton was contacted by a Bank of America employee who said he worked in the bank's office of the president. He told her he'd work to get the sale reversed. Regardless, Pinkerton was evicted from her home last week.

"I've spent thousands of dollars moving that I didn't have," she said.

As recently as Wednesday, the Bank of America employee told her he's still working on her case.

Bank of America spokesman Rick Simon said the bank was researching whether a mistake had been made. "To the extent it is determined that mistakes in the process contributed to the mortgage reaching foreclosure, the bank will work with Ms. Pinkerton to explore viable and appropriate considerations, which may include rescission."

Simon also noted that Pinkerton had been sent letters in March and April saying that she'd canceled her application for a modification.

Pinkerton said she'd never asked to cancel her application, and when she called Bank of America to ask about the letters, she was told to disregard them. She did once reject a modification offer, but that was because it would have significantly raised her monthly payments. She says a Bank of America employee told her to appeal the offer because it had erroneously calculated her income at twice its actual level.

Peterson has been more successful. After the foreclosure sale, she made a number of frantic calls and finally got a bank employee to admit there'd been a mistake, she says. But nothing could be done about it, she was told.

After being contacted by various employees who said they'd been assigned to help resolve the matter, but who then couldn't be reached, she eventually hired an attorney.

Earlier this month, Bank of America rescinded the sale and returned the title to Peterson.

It's unclear whether the bank paid a premium to the buyer of Peterson's property in order to get it back. Bank of America's Simon said, "We continue to work on resolution of remaining third-party issues."

In general, Simon said such mistaken foreclosures "have been relatively rare, compared to the volume of defaults and foreclosure activity in today's economy." Across the country, about 4 million mortgages are currently more than three months delinquent.

"Any problem in this regard is of tremendous concern, and we have put additional checks and practices in place to further limit the possibilities," he added.

To Peterson, the lesson from her experience is clear. "This system is broken," she said. "You can't trust what the bank tells you."

The headline is misleading.  To use the term “bank errors” implies a mistake, as if it were accidental.  More likely the banks intend NOT to follow better procedures.  Upper management WANTS to do the foreclosures.  They are incentivised to do this by the fee structures.  It’s a business decision.  If a few people complain, the banks treat this as a business expense.

Oh that is bad karma. Now I know we have another down turn coming soon.

This is why a moratorium on all FRAUDCLOSURES. 1 year should be plenty for the government to curtail fraud with the banksters. Maybe after a year there will be some oversite and banksters wont be so eager to FRAUDCLOSE on the mom and pop so fast….

You have a critical fact wrong.  Banks and servicers are not incentivised to foreclose.  If they foreclose then they have to advance the payments to the trust and also outlay money for the foreclosure legal expenses etc.  This is a critical element everyone keeps ignoring as it doesnt sell the story or create a “sexy” headline. Banks and servicers make money when people stay in their homes.  Do you really think a bank or servicer wants to add staff (another cost) to incur even more costs that go with foreclosures??  If this happened, as it is said in the above story, then it maybe was the result of inadequate processes at the bank and lazy or poorly trained employees.

I often wonder if things could have been streamlined so that homeowners experiencing changes in income or expenses could actuall re-mortgage at a lower interest rate and over a longer period of time to help everyone ride out this storm more effectively and with as little disruption to the homeowners and banks simultaneously.  Perhaps the Governmenr should have afforded funds for this purpose to the states HUD offices and allowed the HUD agencies to become the actual funding source for the new mortgages.  Perhaps even utilizing in-state lenders to hold the mortgages for the properties within each state?

Great article. I’m sure this will assist in man of the confused homeowners currently struggling with Bank of America’s procedures across the country.

What’s the role of insurance within the forced foreclosures?

Hey, elisaw:

You are STILL asleep as to what is really going on—-WAKE UP AND REALLY START HELPING PEOPLE.
Everyone—listen up:
The “trusts” sold a list of “numbers” (in subprime) which were only “re-affirmation of COLLECTION RIGHTS.  That means there are NO REAL LOANS.  UNSECURED DEBT.  FRAUD IN THE INDUCEMENT.  The banks have NO LEGAL STANDING TO FORECLOSE.  And they are getting away with it by OBFUSCATION OF THE TRUTH.  The judges are clueless…lawyers are clueless…but, they are slowly waking up.
Paul Kiel:  PLEASE PLEASE read this website/blog: livinglies(.)wordpress(.)com


(article below from livinglies(.)wordpress(.)com):

Former JPMorgan Mortgage Servicer: My Boss Told Me, We’re In The Foreclosure — Not Modification — Business
Courtney Comstock | Jun. 20, 2011, 3:19 PM | 2,640 |

“A former employee of Chase’s mortgage servicing company says his job entailed “making borrowers jump through every hoop so that when something fails to get done on time, they can deny it and foreclose.”The former employee, who is identified only as “Jared,” explained his job to Mandelman Matters, which writes:
Jared recalled what his boss had told him during his first week on the job: “We’re in the foreclosure business, not the modification business.”
“Foreclosures are a no lose proposition for servicers… The servicer gets paid more to service a delinquent loan, and they get to tack on extra charges. If the borrower reinstates, which is rare, then the borrower pays the extra fees. If the borrower loses the house, then the investor pays them. Either way, the servicer gets their money.”
“Their whole focus is to foreclose, not to modify. They make borrowers jump through every hoop so that when something fails to get done on time, they can deny it and foreclose. That’s what it seemed like to me, anyway.”
An army official’s father had an experience with the bank that backs up Jared’s claim.
He recently described what the Chase mortgage modification process was like for him, telling Huffington Post:
When he first asked for help in 2008, he had not missed any payments. At the time, his mortgage was being handled by Washington Mutual, a subprime lending specialist Chase purchased in the fall of 2008. Collette said WaMu told him he would only qualify for a loan modification if he missed two of his $1,100 monthly mortgage payments. So he missed the payments. And the bank began trying to foreclose on him.
Jamie Dimon’s unfortunate quote from a few months ago echoes this shocking strategy: “Giving debt relief to people that really need it… that’s what foreclosure is.“
These alleged practices, of course, are a large reason for Foreclosure-gate.”

(and from editor Neil Garfield):

“Foreclosures are the servicer’s reward for keeping their mouths shut about the reality of these transactions. They get a free house. They pretend to go through the modification process to make absolutely certain that you go further and further in the default zone, so their fees go to the highest point. Then they hit you with an up front payment requirement, which even if you make it, they still foreclose — because that is the business they are in — stealing houses through fraudulent foreclosures. But that’s not all — there’s more! Since your loan has already been paid off a couple of times, in most instances, every nickle they collect in payments is also free money with nobody to give it to. What a country!”

I’m in the same position with Bank of America. I first was given a trail modification but nothing happen. I sent paper work in so many times and have made numerous phone calls. The employee give everyone I know that works with BofA the same story its not in the system we don’t have your paper work please resumit. Finally, after someone review the paper work they deny you on hamp because they don’t want to meet the 31% requirement, next the tell you the they’ll send it to their own program for a second look. Just as they person said above is they put terms that make it more expense that want you orginally had. So, if you are not making enough to afford it because of decrease in income how are you expected to afford this new deal? I to did not go for this. Now I got a accelerated attempt to foreclose letter. When I went to the post office the clerk when to were there were 5 long container with the same letter. She said they had more in the back for Bof A. I figure that each long tray has at least 1,000 of these letters. That over 5,000 for the county. These big bank are up to their old tricks and can care less. More state, county and city workers to be laid off.

I don’t know how Jamie Dimon sleeps at night.  I read in the WSJ a few months ago that Chase had a very profitable year and he made a $17 or $18 MILLION BONUS.  He should be very ashamed.  Dirty money.


June 24, 2011, 5 p.m.

I completely agree with Fred about the headline - the loan servicers are not making mistakes when they steal people’s homes in this way. If this big banks had any intention of actually implementing HAMP and helping homeowners retain their homes, don’t you think they have plenty of people on staff who could design a sensible, efficient system for reviewing loans for modification? Of course they do! This feigned incompetence IS the system they’ve devised, and it’s meant to dissuade and mislead. Delay and deny is the name of the game.

And elisaw, for the purposes of this discussion you need to differentiate between the banks that are servicing these mortgages and the investors that own them. Here’s a good explanation of why this is important:

Thanks Paul for this especially cogent and concise summation of the state-of-the-crisis.
It is well documented how banks blithely ignore their own (sworn?) congressional testimony that included pledges to stop dual track.
Readers - move your money into a credit union and stop paying your mtg if you are considering a HAMOP. The temp payments are highway robbery, they fully intend to steal your home.
Propub - many defaulters in high f.c. states now have the chance to rent their home. Rents are rising and vacancies are few in some areas. How can we know if it is safe to rent, so the new family can live near the old friends and schools but not come home to find a crew changing the locks? Is it true that f.c. now takes more than 18 months in Fla & Nev.?
I would rather have people in the house, it is safer. If I leave. For now I am saving money and trying to decide if I want to leave or ride it out until the bitter end.
Also, pls. tell us the story behind the story of Fla. Gov. Rick Scott ending the rocket docket. Now, f.c. will have to go thru the regular local courts, not in a 20-second hearing in front of a retired judge who just takes the bank’s word for the fake docs.
This is good news and buys me another year or more, I think. There are hundreds of thousands of cases ahead of me. Will make election coverage a challenge for the Obama/Goldman-Sachs admin.

Yo, BAC p.r. guy! Did your nose grow when you insisted that faulty f.c. are rare?? Um, no.
They are shockingly common. What *is* rare is seeing you forced to admit that BAC was caught red-handed stealing a home and had to, er, put it back.
What is the penalty to the bank? If caught dead to rights taking the home under false grounds?
What about homeowner’s moving and storage costs? Legal fees? Payment for time lost at work while dealing with this?? How about all of that - tripled for the crime?
Then, let’s head over to the criminal docket. How about indictments? Perp walks? Arrests? Grand juries?? Let’s take some discovery and see what we can find in that BAC email. I’ll start…
WTF? If I managed to steal something worth six or seven figures, would the penalty to me be just…returning it?? After forcing the victim to definitively prove I was the perp, at his or her expense??
Would I just walk away? Preschoolers have a better sense of right and wrong than this criminal enterprise, BAC.
I call for Brian Moynihan’s head - resign immediately and surrender bank-paid legal help. Go it alone, buddy. Keep on complaining that the C’wide loans are tanking BAC. No shoot, sherlock. They are not doing us much good either! Join us in the Angelo Mozillo voodoo doll drum circle. His withered face is on the bass drum.
Payback’s a witch, dontcha think, Brian?


June 24, 2011, 5:57 p.m.


Insist that the return of the Glass-Steagle Law of 1933. End this madness that continues to drag the American people, and all things America, through the MUD. As stressed in other comments, WAKE THE HELL UP VOTERS. The GOP is your enemy. The end of the GOP, will bring in third partys for Americans to have real choices.


June 24, 2011, 8:36 p.m.

elisaw, your information is incorrect banks have all the incentives to foreclose, for one, the home is paid they already sold the mortgage many times over, when they foreclosed they get 200k 300k at once once they sell the property instead of waiting 30-40 years to collect. Sometimes they don’t even have the Note to foreclose ( because they destroyed it on their Ponzi Scheme to hide the FRAUD) The longer the keep the borrower in default the more money they make because-they get to assess penalties, interest and fees for ALL of the months that borrower is behind andTHEY GET PAID FIRST, once the home is repossessed and resold (that is why they delay the mod and then foreclose) and finally these Banksters bought insurance against foreclosure (AIG) because they knew what kind of loans they were giving to people (liar loans, trap loans, arm loans, negam loans) and borrower would not be able to pay back so they insured themselves against foreclosure and they collect 80% of the value of the property (AIG bail out) on top of everything else. elisaw, are you sure they don’t have incentives to foreclose?


June 24, 2011, 8:41 p.m.

elisaw, I forgot to mention one more the banks charge also outrageous legal expenses etc. to borrower and investors, so at the end, they are the only ones that make billions on dollars in foreclose.


June 24, 2011, 9:05 p.m.

WTF? The people have to catch up to the whole Ponzi Scheme, which is really Insane: Fannie/Freddie, Appraisal FRAUD,  FDIC Insured Bank Fraud, Contracts fraud, Pretender lender fraud, Ratings agency fraud, Origination fraud, Fraudulent inducements, Second Bankster fraud, MERS (Mortgage Electronic Registration Systems) fraud, Securities fraud, Goldman SUCKS!, Lehman Bros. and many more selling bad loans to their investors, New pin numbers to hide the origination Fraud, REMIC (Real Estate Mortgage Investment Conduits) Fraud, Speculating on that fraud and making 100 Trillion dollars on the same fraud on WALL STREET with such Mortgage Derivatives as CDO’S (collateralized debt obligations ) when Banks knew would fail, MBS (Mortgage Back Securities) fraud, AIG Fraud, knowingly insuring bad, trap, and liar loans, Credit Default Swaps Insurances fraud, Title CO. fraud, Intentionally creating a massive housing bubble with fraud while they knew would cause a financial crisis, Forgeries of legal Docs, Where Are The Notes?? Where are the Original Notes?? (Destruction of Notes) Fraudulent Affidavits (also to fraudclose), No Proof of ownership by the pretender Lender, Non Judicial Foreclosures, Blaming the VICTIMS, Destroyed credits, Abandoned pets ( due to foreclosures), Bank owned abandon properties ( ), People living in their CARS (thanks to Fraud-Closures). No due process in courts on foreclosures, Flouting of the property rights and constitutional rights of we the people to steal homes Banksters don’t Own, Giant BONUSES for the crooks at Chase, Wells Fargo, Bank of America, Citibank, Freddie, Fannie and the CEO’S who robed the people, Hyper-Inflated Property Taxes, Short Sale fraud (watch video) ( )  Loss of pensions, Loss of 401 K’S, The T.A.L.F (Term Asset-Backed Securities Loans look it up). The BAILOUTS, The lies: “you were denied for help by the bank, we want you to sell your home that we DON’T OWN so we can make thousand of dollars even that we don’t have the Mortgage Note, Banksters strong arming the American people for delinquencies they don’t owe. Force Insurance Violations, Frozen credit for main street, Cash For Keys Fraud (I can explain that one), Deed In Lieu Fraud, Cross Collateralization Fraud, Scrivener’s errors fraud (person who writes out deeds, copyist, professions, a notary), Robo-signing Fraud, (the automatic generation of document which turn out to be ruled illegal.),  Devastated Communities, Bankrupting America to pay for all of the Mortgage Fraud and The Ponzi Scheme Heist. The Bail Outs (that stills continues through the back door Fed) and finally, the fact that the American people have not wake up to all of these insanity, Its Shocking to say the least !

Eye opening posts. And who of the elite in Washington have our backs? No one.

Who is left to save America? Well I think it is a good old revolution from its people. Take to the streets—I will show up in my wheelchair. Do you suppose the elite in Washington would bring the troops home and turn them on us?

Okay: The Feds gave (loaned) the banks money so they could get out of the depths of this crisis and then the banks turn around and screw people, foreclosing at a whim, continuing to give their executives big bonuses and NOT lending money.  Obama needs to grow a set, issue an executive order, whichhas the force of law, that no banks or other financial institutions can foreclose on anyone while the cases are being considered.  Nothing is going to change, or stop until someone with clout goes to jail.  Period

I continue to feel like Alice having fallen through that damned rabbit hole yet again. 

this is totally unacceptable and in a world NOT down the rabbit hole it wouldn’t fly, but now that we are “down here” in the “other world” everything is topsy turvy and anything goes, its a free for all with the people ending up losers.

No one cares, no one is doing anything.  This just makes me so damn angry because you can damn well bet if it was rich folks or bankers or wall street barons that it would damn well be fixed.

WTF did we give them a bailout for?  No ones giving us anything but the shaft?

Lol.  REGULATORS.  LOL ROFLMAO - in order to be a REGULATOR that implies you have to REGULATE something.  Yet they are doing nothing so throw their worthless @$$es out right along with all the self-serving congressman, the president, all the damn politicians are interested in ONE THING - getting re-elected so they can’t be wasting time on us,  JUST SO YOU KNOW.

What a surprise, banks and bankers continuing to behave badly. As long as there is a buck in it for them the homeowners and the investors are just collateral damage. Until some of them start going to prison rather than paying fines in government “settlements” nothing will change. Great article, as usual first class reporting by Pro Publica.

New Laws Provide Hope for Nevada’s High Foreclosure Rate

Restitution from the bank to those who were illegally foreclosed and intentionally misled into believing otherwise!! There are lawyers who, thank God, are for the American people…seem like our own government is afraid to hold these banks accountable. Start hitting the banks in their “pocketbooks” and maybe then they will stop the madness!!

After about 19 months, I finally got approved for a modification thru BOA.It was a long uphill battle. I refused to let them tell me I had to be behind in my mortgage for 3 months. I knew I qualified becauase they never did an income verification when I was approved for the house. I kept making my payments as usual…on time…did the trial mod for 9 months…was denied twice…...appeal the decision…..they tried to almost double my payment….tried to double charge me for property taxes….ruined my good credit…. I continued to call them every two weeks if not more…wrote down who, when, what, date and time whenever I called….quoted back to them who I spoke to…questions every suspecious decision on their part…threatened to seek my attorney….FINALLY I WAS APPROVED! They want you to give up, and default on those loans…DONT DO IT…continue to make your payments…anything…just dont stop paying(if u can)...that’s how they get us. I pray that we all come out of this mortgage crisis…it is really devastating.

You can drive anywhere in this country and see signs along the road, “Click it or ticket”.  Expect to be pulled over and handed a ticket and fine if you are not wearing a seatbelt.  That will happen every time. But banks can engage in fraudulent practices again and again, and engage in one scam after another without so much as a yawn from regulators.  We know our govt is capable of policing if they want to.  But in this case, they just don’t care.

bank of america are ripp off and criminals that use fraud in theur paper work and lies in courts all over america to steal people homes. us judges its time to wake up and force the bank to produce original mortgage notes ot trow them out of court

You must know that bank and financial institutions have no conscience,
no compassion, nothing to do with dealing with real people and their
problems.  Their basic drive is to make a profit for themselves and
their investors.  So if you have to deal with such an entity, you must use
the best legal protection you can afford—never depend on any promises,
information, etc. that these institutions offer—distrust everything they say,
get everything in writing and have it checked out by a competent
attorney, and even then take the next step to protect yourself and
your home—whatever it takes—don’t depend on others.

See for tons more stories on how Bank of America continues to do morally and legally questionable things to its so-called customers. For those affected by Bank of America, leave your stories there.

Better yet, find an investigative reporter who has covered similar mortgage stories in the past and contact him/her with your story. It’s amazing how often these issues with BofA quickly and “magically” get worked out when a reporter (or an attorney) are involved.

IN THE NIGHTMARE: I’m so lost. My parents both 69 received a notice of foreclosure letter on Monday.
They have a first mortgage that’s been through the long modification process which is current.
They also have a line of credit 2nd lien of 136k with another bank. This is past due, and where the foreclosure letter has been sent.

Since Monday days have been spent waiting for lawyers to return calls in the run-around.
I have never seen my family is such disarray, and stressed. We thought the HUD modification was the end to it all.

Now back to square one lost and emerging helplessness moves closer to suicide. I pray we make it through it. I’ve never found it so hard to breathe.

The miscommunication has just amplified our stress.

Does anyone know where to turn?

Rhode Island

Don’t you or your loved ones identify yourselves by this.  It’s money and real estate, both come and go, but it’s not love or family.  That’s the first thing.  Breathe.

Unfortunately you have to look at this foreclosure situation in a
totally different light.
You have to see yourself as a criminal in the eyes of the banks
and financial institutions.  They want to get rid of you and the
problem anyway they can, as fast as they can and they’re doiing
everything to work against you.
You on the other hand have to see you’re being judged a criminal
and you have to get the best defense lawyer (specialist in home
foreclosures) to help you quickly as time is against you.  You
may have to do a lot of preliminary investigating to see who
has the proper experience with these situations.  You can expect
to pay extra for this special lawyer, but remember your future
depends on getting the best help possible.  Once the (jury/bank)
makes its decision, it’s extremely difficult to get things reversed.
I do feel deeply about your problem because it’s difficullt to find
help you can trust, but check with people who have access to
this type of help for suggestgions, etc.
I think this entire financial blunder is another indication that
the USA is in a steep downtrend morally as it views its citizens.
May God have mercy on our future.

Does Obama really think he is going get re-elected? He’s just pocketing the millions of campaign contributions from big banks. He doesn’t have a slight chance and he knows it.

After struggling with Wells Fargo for a year to get a mod I received a notice of sale. Wells Fargo said I was unresponsive to requests for info and took that step to protect their interests. LIES! I had a standard packet of 15 pages of DOCs I updated every month when a new bank employee would ask for it.
I kept meticulous records of all correspondence and phone calls. I finally got pissed enough to accuse them of fraud and acting in bad faith. I called my Congressman with the accusation and his staffer called the bank and within 4 days I had a mod at 3.5%.

Keep fighting

Hank Hudson wrote:

“Unfortunately you have to look at this foreclosure situation in a
totally different light.
You have to see yourself as a criminal in the eyes of the banks
and financial institutions.”

Why on earth would you want to see yourself as a criminal?  The only way for people to deal with this on a daily basis is to try and rise above and beyond it.  Not play some role dictated by the people who created this mess in the first place!

Will Harper…you misquoted me:

“Unfortunately you have to look at this foreclosure situation in a
totally different light.
You have to see yourself as a criminal in the eyes of the banks
and financial institutions.”

You can see I wrote IN THE EYES OF THE BANKS AND

And I still hold that they look at homeowners/mortgage payers
as not upright, deserving persons—they are considered
account numbers who owe them money and are not worthy
of common sense dealings.  People who are in financial trouble
must take serious action—don’t depend on the words of some
bank/institutional employee—- get proper representation with
a lawyer—have everything documented and check with a
qualified lawyer to have everything notorized, made legal in
every manner.  It may cost some $$$, but you’re dealiing with
your home—the courts will consider your problem if it’s presented
in a legalized manner.  Do it right ,  you have much to lose
if you try shortcuts.
If it’s your word only against the bank’s word, who do you think
will win in most cases?  They have the money, lawyers, and time
is on their side.  Fight agaisst them a smart way!!!\
And good luck in your efforts.

I’ll bet if you check, the areas that had{have} the highest property values are where they are NOT doing the modifications.


June 26, 2011, 8 p.m.

You are right Fred.

Here’s a link that explains the sick government support to these pathetic banking institutions.
They truely don’t care about the homeowners.

Banks and servicers would be underwater again, need another bailout, if they did all the foreclosures their crappy books of defaulted loans say need to happen.  You pay for this, America.  Was the politician-propagated fantasy of universal home ownership worth it?  You’d better be getting real liquid and real portable.  I don’t care what business or profession you’re in.  Look around.  You’re looking at the rest of your life.

ACMODSPECIALIST:  My mortgage is apparently “owned” by Wells Fargo and serviced by America’s Servicing Company.  Who would I write to in order to see if I could get a copy of the ORIGINAL note, which neither of them probably have.  I was given a modification in that they re-financed my mortgage at a lower rate.  I think the reason I got this was because we maintained the payments for the entire year plus that we applied for the modification.  We sent, re-sent, and sent again and again all the paperwork.  Weekly calls, a communications log to keep track, etc. was my back-up.  Now I would like to find out who actually OWNS my house.  If there is no actual original note….does that mean that no one owns the house but me?  Please advise or tell me where to go to find out this information.  I would be curious to know where I stand.  Our payments have NEVER been late, even during the modification period.  They did lower our payments about $750/month (from $3800 to $3200), which helped considerably.  But, as I said, I’d LOVE to find out who actually owns my house and if they still have the ACTUAL note telling us the whole story.

As an addition to my last comment, we live in California have a 2900 sf house that was originally owned by my parents (who bought it in 1954 when it was built).  We moved in around 1995, remodeled, and took out a construction loan.  We re-financed a couple of times to pay off my deceased mother’s medical bills, and ended up owing over $600,000.  We have a 30-year fixed loan, than God…..we finally got this after many ARMS.  I KNOW that our original mortgage company sold our mortgage, and I believe it’s been sold a couple of times now, with the last owner being Wells Fargo (which I think is true since they were also involved with our modification).  ASC is the servicing company, and they are the ones we pay our payments to.  The loan modification that we got was “permanent” in that we continued to make the higher payments while we were applying…..they stated that since we had been able to make the higher payments; they were certain that the lower payments would not be a problem, so we had a permanent modification right up front.  My only question is that we only signed a one-page agreement to the refinance offer, so I’m not sure it’s even legal or valid.  I would hate to think they could come at any time and take my home despite our paying our new payments on time.  Good question, huh?

Hey Didi:
Sounds like you did excellent work with your house.  With all that seem to be involved in your house paperwork, I think going to a lawyer experienced in finances/banks/mortgates and paying some $$$ to
get formal/legal action going for answers to your question/situation would be worth it for the peace-of-mind, plus having some legal papers in case you had to go to court in the future..
You can ‘t trust others with your money situation—get everything in properly written form so you have solid defense on your side if questions arise later.

EVERYBODY WAKE UP.  They have NO LEGAL RIGHT TO FORECLOSE.  File for bankruptcy—and TRO (temporary restrainiing order) and “Lis Pendens” (pendency of action)—-don’t let them take your home—-accuse them of FRAUD ON THE COURT—-send cease and desist letters—-question EVERYTHING—-THE BANKS AND SERVICERS ARE STEALING OUR HOUSES—-DON’T LET THEM———the judges are finally starting to understand the extent of the FRAUD—-I made my servicer BACK OFF by telling them to PROVE that a “trust” even exists that they say my fake “loan” went into—-MODIFICATIONS ARE NOT REAL—-you are simply modifying a debt that they have no right to…it’s UNSECURED—-forget about a credit score—-file bankruptcy and keep your house—-DON’T LET THE CRIMINALS WIN—-FIGHT THEM—-YOU HAVE THE POWER——
Go to livinglies(.)wordpress(.)com and START READING!!!


Shana F. Karpeles, Esq.

June 28, 2011, 12:14 a.m.

Hi Everyone-

I am a CA licensed attorney focusing primarily right now on foreclosure defense.  I cannot tell you home many calls I get per week about a borrower applying for a modification only to be later told the home is in foreclosure and has a sale date.  As a promoter of justice and someone who really knows the laws in this area, I find it so hard to believe and comprehend how regulations are not in place to protect my client’s interests.  I will not stop fighting on behalf of my wrongfully foreclosed client’s property until these banks stop doing this to people.  If you or someone you know has been harmed by a foreclosure please do not hesitate to call me with any questions you have.  My website is

Wow this makes a lot of sense dude,. Very cool stuff.

June 28, 2011, 5 p.m.

The REST Report solves all of these problems
4000 Reports run without a single failure - not one.

What problems does a REST REPORT SOLVE???  Nothing!  It doesn’t show all of the FRAUD being done to all of the homeowners!!!  THE FRAUDULENT PAPERWORK IS RAMPANT AND THE JUDGES AND LAWYERS ARE STILL ASLEEP OR PAID OFF!!
The biggest illegal land grab in the history of the world continues unabated…the foreclosures are ILLEGAL.  The loan modifications are ILLEGAL.

June 28, 2011, 9:34 p.m.

as a matter of fact, we’ve run 4000 reports and every single one has succeeded in getting either a mortgage modification or short sale. The secret is to mail the report and supporting documents certified mail, return receipt requested. A bank officer must sign for it and will not lose the file under penalty of law.

I follow Living Lies and it supports the Sue Your Lender for Chain of Title strategy. This is succeeding in several states so far. You don’t need a mass joinder, either.

June 28, 2011, 9:42 p.m.

The REST Report calculates Net Present Value using the bank’s own software. There is nowhere for the treacherous mortgage servicer to run.
When filed as a legal foreclosure defense, it halts a foreclosure dead in it’s tracks. 4000 out of 4000 is pretty good odds.

Our newest software also researches all the documents needed to Demand the Note; which is the strategy to make your investor/servicer lower the mortgage principal to Fair Market Value.

You CAN save your house. Just do the research at the site to the right.

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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