Journalism in the Public Interest

GMAC’s ‘Robo-Signers’ Draw Concerns About Faulty Process, Mistaken Foreclosures


A foreclosed and bank-owned house in Las Vegas on Aug. 22, 2010. (Mark Ralston/AFP/Getty Images)

Several states have ordered a freeze on foreclosures by Ally Financial’s GMAC mortgage unit, which has come under fire in court for using “robo-signers” who signed off on thousands of foreclosures attesting to the accuracy of the documents without having much personal knowledge of what they contained.

Several other states are investigating GMAC after the company said last week it was suspending foreclosure evictions and sales in 23 states due to “a procedural error” that could require the servicer to “take corrective action in connection with some foreclosures.

One robo-signer, Jeffrey Stephan, has signed off on as many as 10,000 foreclosures a month, according to court records. The foreclosure affidavits, which established basic facts such as a bank’s ownership of a mortgage, were also required to be signed in the presence of a notary public. That didn’t always happen, either. (Since then, other GMAC employees have also been flagged as possible robo-signers.)

GMAC, however, seems to believe that this lack of review didn’t result in real consequences for homeowners. Its statement from Friday, as reported by the Charlotte Observer:

We are working to resolve the situation expeditiously, and we are confident that the processing errors did not result in any inappropriate foreclosures and that the substantive contents of the affidavits in question were factually accurate.

GMAC is a subsidiary of Ally Financial, of which the U.S. Treasury currently owns about 56 percent. (GMAC was renamed Ally after its rescue.) "The entire situation is unfortunate and regrettable and GMAC Mortgage is diligently working to resolve the situation," Ally Financial said in a statement.

GMAC has stopped foreclosure evictions in states that are known as “judicial” states, meaning they require a court order to foreclose. Similar procedural errors may have also been made in non-judicial states, but foreclosures there were not halted by GMAC.

Since news of GMAC’s review spread, JPMorgan Chase has been the next to come under such scrutiny, based on statements made in May by a Chase mortgage supervisor.

In a court deposition, Beth Ann Cottrell said she was among eight managers who together signed about 18,000 documents a month — documents that she was expected to have personal knowledge of. Bloomberg quoted from her deposition:

Asked how they were prepared, she said she relied on other people at the firm.

“My review is more or less signing the document unless it’s questionable,” she said. That means, “somebody has a question and brings it to me and says, ‘Beth, can you take a look at this?’”

JP Morgan, the nation’s third-largest servicer, declined to comment ($) to the Financial Times on the matter.

Problems with the paperwork behind foreclosures aren't exactly new, but are now starting to get more attention. Here’s Bloomberg:

Judges overseeing foreclosures in the wake of the housing crisis are growing skeptical of banks, said Christopher L. Peterson, a professor at the University of Utah’s S.J. Quinney College of Law. A surge in proceedings has helped expose a variety of paperwork lapses, he said in an interview.

“Early in the process the judges were very cavalier and they just took the financiers’ word,” Peterson said. “Now there are enough disputes out there about ownership of loans that the judges are starting to feel like they need to hold the financial institutions to the basic rules of evidence.”

The nation’s top five mortgage servicers — Bank of America, Wells Fargo, JPMorgan, Citigroup, and GMAC — have a combined 71 percent share of the market, Bloomberg reported.

These problems with the underlying processes mortgage services are using to speed foreclosures are separate but related to the disorganization that causes servicers to make mistakes such as foreclosing on the wrong house.

As we’ve reported, breakdowns in communication between different parts of the banks — the part that forecloses and the part that tries to help homeowners avoid foreclosure — have exacerbated these problems.

My son, a disabled vet, almost lost his home to foreclosure as the banks kept telling him they were working on a loan modification.  They filed foreclosure and then refused to tell us what the amount was that was needed to reinstate the loan.  The higher up the “food chain” you go, the nastier they become.  Oh yes, 17% of CitiBank is owned by us-the American taxpayers and this was a Fannie Mae loan. They hid that info also.  How much did we give Fannie Mae and Freddie Mac?  Big money to be made in foreclosures if you have good equity in your home . . .

GMAC is a disaster of a company. In 2007, my wife and set up a bank account with GMAC, with plans to move money between it and our other accounts. In just two months, GMAC screwed up so many times—losing account information, failing to make requested transfers while also making unrequested transfers—that I told them to just close the account. Only they couldn’t even do that right—weeks after they told me it was closed, it was still open.

Dominick Mastroserio

Sep. 29, 2010, 4:43 p.m.

These judges whose prejudice for the wealthy needed to be in the national spotlight before seeing the light about corrupt financial institutions. 

Judges who needed to ‘hold financial institutions to the basic rules of evidence’ only after having allowed to get away with widespread fraud and deception do not belong on any bench. 

For what they prove by this favoritism is that they were quite willing to cater to a separate form of justice for financial institutions as compared to John Doe, for whom the rules of evidence would have been rigorously scanned with a judicial microscope.

These judges would like the people of this country to ignore the fact that these financial institutions were confident in the judges’ prejudice enough to do as they pleased impunitively.

Once more the people are shown how much the decks of our instituions of justice are stacked against them.  For the people’s foreclosures were perfunctorily assessed with the assumption that banks are trustable and they are not. 

That financial institutions may be allowed to pass on presumed honesty; on mere say-so…whereas the foreclosures in question were presumed guilty of inability to pay their mortgage.

Again, because the financial institutions were presumed innocent and trustable in their assessment and the people were presumed guilty of default.

This to me is the reverse of rational: The wealthy banks who have amassed unimaginable wealth should be suspect because immense wealth can only be generated at the expense of others. 

For there exist laws of circumspection that allow the wealthy what would not be lawful at all if these laws of circumspection were measured against draconian laws and enforcement that in fact daily incarcerate a poor man for stealing a loaf of bread.

Debra Richards

Sep. 29, 2010, 4:44 p.m.

“Now there are enough disputes out there about ownership of loans that the judges are starting to feel like they need to hold the financial institutions to the basic rules of evidence.”

And therein lies the problem. The judges are just now starting to feel like they need to follow the rules of evidence.

Much of this crisis could have been averted if those with the responsibility to watch out for us little people would have done the right thing. Now it is too late for many of us.

2 LB01, you are quite correct, the more equity the better… actually know of people who have been having their on-time payments held and do posted then receiving a NOD.Other has WF trying to pay taxes on a large parcel of land OWNED FREE & CLEAR, and never had any to WF.. The American people need to wake up very fast to all of this, if left unchecked these fraudsters and their foreclosure mill’s will be going after everyone. Also just a note you/your son and anyone else can go on Fannie Mae’s web page to see if they own the loan, and also cross check the lawyer for you case and see if they are on Fannie Mae’s “approved lawyer” list! If its a office in the Shapiro Network which has affiliations with law firms nation wide in 23 states, then one should note that the Shapiro law firm in Florida is under investigation with the state AG.
Good luck all!

The Washington Post reported today that a senator from Minnesota has urged the departments of Justice and Treasury to investigate these recently reported foreclosure regularities.  I believe any investigations should “backtrack” and look into why the success rate of loan modification programs is so low.  Why are there hundreds of thousands of homeowner complaining about lenders/servicers giving them the runaround, demanding the same documents over and over, and even claiming they have not received documents when the homeowners have proof that the paperwork has been received (e.g. confirmation signatures of office personnel who actually received the documents).  And now we read these reports about banks/servicers apparently rushing to foreclose as many homes as possible.  If we connect the dots, wouldn’t it be logical to conclude that the lenders/servicers would rather foreclose homes than modify loans?  Although they pretend to participate in the government’s loan modification programs, they are at the same time aggressively pursuing foreclosure.  It is obvious some of the servicers make no “good-faith” effort to modify loans.  I guess the reason is obvious: they prefer to foreclose.  Apparently they make more money by foreclosing.  The revelations about GMAC’s foreclosure irregularities are even more appalling, considering that it recently received an additional $17 billion in bailout money—taxpayers’ money, perhaps some coming from the same people they have screwed or are in the process of screwing!  It is sickening! (Is this all about politics?  Because banks are huge election campaign donors?  Is it something more sinister and insiduous?)  An investigation should include the way banks/servicers are implementing loan modification programs.  Are they routinely denying applications for loan modifications without due diligence so that they can move to the next step:  foreclosure without due diligence?  Homeowners who have been affected should speak up!

The Washington Post reported today that a senator from Minnesota has urged the departments of Justice and Treasury to investigate these recently reported foreclosure irregularities.  I believe any investigations should “backtrack” and look into why the success rate of loan modification programs is so low.  Why are there hundreds of thousands of homeowners complaining about lenders/servicers giving them the runaround, demanding the same documents over and over, and even claiming they have not received documents when the homeowners have proof that the paperwork has been received (e.g. confirmation signatures of office personnel who actually received the documents).  And now we read these reports about banks/servicers apparently rushing to foreclose as many homes as possible.  If we connect the dots, wouldn’t it be logical to conclude that the lenders/servicers would rather foreclose homes than modify loans?  Although they pretend to participate in the government’s loan modification programs, they are at the same time aggressively pursuing foreclosure.  It is obvious some of the servicers make no “good-faith” effort to modify loans.  I guess the reason is obvious: they prefer to foreclose.  Apparently they make more money by foreclosing.  The revelations about GMAC’s foreclosure irregularities are even more appalling, considering that it recently received an additional $17 billion in bailout money—taxpayers’ money, perhaps some coming from the same people they have screwed or are in the process of screwing!  It is sickening! (Is this all about politics?  Because banks are huge election campaign donors?  Is it something more sinister and insiduous?)  An investigation should include the way banks/servicers are implementing loan modification programs.  Are they routinely denying applications for loan modifications without due diligence so that they can move to the next step:  foreclosure without due diligence?  Homeowners who have been affected should speak up!

Dominick Mastroserio

Sep. 29, 2010, 10:16 p.m.

Every public disclosure about financial institutions points to the same system of impunty which has immunized itself by corrupiting magistrates and elected office holders to a threshold of ‘laissaiz faire’ which requires a new definition to illustrate the pervasiveness of its malignancy.  It has become a civilization-wide morbidity that will destroy all of us. 

Its insidious and technologically efficient tentacles have reached into every home, every institution, every workplace, every school, every honest enterprise, every government office and every domestic and foreign market.

The vile and deteriorating grip of this fatal social disease is rampant and pandemic because it is IMMUNE from scruitiny and its criminal operatives are without conscience or human ethic or social scruple.

The lawmakers and enforcers we elect are aiders and abettors of this system of impunity.  Instead of protecting we, the people as they are paid to, our elected officials and magistrates protect these social scourges thus creating and manifesting a system of impunity that stops at nothing, no moral or human obstacle…in the pursuit of its insane and lucrative ends.

Its clear that the people have no recourse but to awaken their representatives to the mischief they were themselves party to enabling and demand they cease and desit, indict the malefactors and punish them when found guilty. 

If the people’s pleas to their representatives fall on deaf ears the people will have no choice but to seek their own remedy and redress for the sake of their own and their families’ survival.

If it is to be the law of the jungle because money trumps everything human and sacred then the people need only find their succor in the eternal moral laws whose traditions are primal.

For when justice can be bought at a price, all human values are negated.  Justice cannot be negotiable without severing the bond of faith between one and another person.

The public trust extinguished by the practice of negotiable justice puts an end to the meaning of civilization itself.

Chase electronically withdrew 3 mortgage payments (+repayment funds) from our checking account, then sent us past due notice with late fees attached, demanding full payment immediately. 1 day later Chase sends the statement of their transaction of withdraw payments. Yet no servicer we called found any withdrawal made by Chase, and demanded full payment, leaving us with missing money, and unable to do anything. We are still ,2 years later, waiting for Chase to find over $11,000 they took from us, and still demanding it all again +! This is unbelievable, and the more congress ignores this, the more responsible they and the banks are, and the illegal repossessions already is scary!  So, when can we the people expect this to be dealt with, because they are only digging the hole deeper for themselves.

see my website have proof of other ROBOSIGNERS for other banks

The cards have always been stacked in favor of the lending institutions. In most states they cal lie, cheat and steal by filing false documents with the register of deeds offices. Then even if they get caught the states won’t do anything to punish them. No matter how much damage they cause someone, as long as they say they are sorry and correct it nothing can be done about it. Laws with no penalities mean nothing.

What is going to happen to all the people who were already evicted under these questionable methods? Will there be mass class actions against the lenders and mortgage holders who already falsely evicted people with no actual proof of title? And what will happen to these properties that are held without proper title that cannot be sold? Check out the ScudderMutualFundLitigation site for the details on a recent class action settlement on an investigation that begun in 2004 into questionable funds management practices.

Zrants, You raise a good question but I don’t expect much of anything to be done about it. None of the states or federal governments will do anything. With all the tax dollars the big banks have gotten they will be able to buy enough of the politicans to get exactly what they want. Thats peoples property. If they didn’t want peoples property they would have worked to modify loans. Lending institutions have modified very few loans. They really make a killing if they go through bankruptcy. Thats what I was dealing with. FDIC makes a lot of sweetheart deals whan a bank goes under.

Michelle Harding

Oct. 1, 2010, 11:30 a.m.

Although my home was financed through Countrywide and then Bank of America. I believe banks nationwide are responsible for the same negligent oversight and for causing the nations homeowners to bare the brunt of their incompetence.

I brought a legitimate cash sale offer of $150,000 to BofA in a short sale.  They took almost a year to finally deny me the sale, meanwhile assessing me all types of penality fees.  They then sold the property for $114,000.  My credit is trashed besides my loosing my home.

Michelle, The reason they denies you is the fact they made more by going through with the foreclosure. I don’t know how long you had been paying on you property but If you can find out how much they got from the government for your toxic assest property add to that what they sold it for plus what you had paid them. This way you know what they actually got for your property.

Daisy, The simple truth is that the mortgage holders, either banks or mortgage companies make more money by going through with the foreclosure. Read my answer to Michelle. I know my bank got app. $75,000 more by foreclosing on me than if they had worked out a loan modification.

librarybug01, You make a good point about the equity. The more equity you have in a property the more the banks or mortgage companies make by foreclosing.

Meijor the stop foreclosure guy

Oct. 2, 2010, 1:44 a.m.

“Early in the process the judges were very cavalier and they just took the financiers’ word,” Peterson said. “Now there are enough disputes out there about ownership of loans that the judges are starting to feel like they need to hold the financial institutions to the basic rules of evidence.

It’s amazing that it has taken the courts almost 3 years to adjust to the ‘basic rules of evidence’ in foreclosure proceedings.

Sounds like the judges want to be congressmen… they want to sign off on things, without knowing what’s in the paperwork.

As we progressed through this mess, I phoned everyone from the Comptroller of the Treasury to the State AG and all said the same thing. “File a complaint.  We have NO authority.”  The thing is—what can we, the people,  do?  Banks are not too big to fail—they should have failed, been sold and become smaller.  If anyone is a career politician, I’m not voting for them.  Maybe if we had term limits, they would be more inclined to listen to citizens.

If you research enough you will see where most of the bailout money ends at. The big banks (world wide) and wall street investment banks, again world wide. What are they doing with those funds? Banks just don’t set on money. It is invested somewhere. At this time it isn’t being invested in the economy of this country so where is it being invested? BRIC. Social societies are like service industries, they produce no capital, they just finds means to acquire capital that someone else produces. If our investors aren’t financing the growth in these countries. Who Is?

Daniel Pedroso

Oct. 4, 2010, 3:57 p.m.

A good website on another “mistake” in many mortgages is MERS. A good link can be found here.

If you read the article on the website in Daniel’s comment which I did. I have a question? I know all the states have different laws on debt collections. I’ve been told a bank or mortgage holder can sell a mortgage to any collection agency until you 6 or 7 years up. If this is so then MERS can buy the mortgages and notes and then try to collect the debt until the 7 years are up. Anyone have information about this.

It is difficult to see why the foreclosure process is such a big issue. Perhaps it is just a mechanism to force mortgagees (the lender) into accepting that repayment rates be renegotiated lower, such that mortgagors (the borrower) can afford them. In this manner, people are not put out of house and home.

Is it not a fact that American mortgagors were victims of predatory pricing by mortgagees and therefore the mortgage contracts are at fault? If not, why not—and why has this factor not been put to a Federal judge?

What ever happened to the Truth In Lending Act and why is it not being cited in the matter of Sub-Prime mortgages?

And perhaps here is the answer?:

Gary Gesler PhD

Oct. 6, 2010, 5:21 a.m.

Sent FSD Barney Frank Wed Oct 6, 2010.

from   Gary Gesler <>
to   FSDWebUpdate
date   Wed, Oct 6, 2010 at 3:17 AM
subject   Re: Kanjorski Comments on CFTC-SEC Staff Report on Stock Market Volatility

Please be clear, I am totally non violent. Have never been violent and never plan on being violent. I am a kind caring loving, healer, who is sensitive and vulnerable, and who has learned about the wicked ways of the world the hard way. I share these words to keep you in the loop, about my humble perspective, and what I hear from other people.

Below you will find:
An letter to you.
A letter CEO of California Credit Union.
A letter to Joni M. Moran underwriter at California Credit Union.
Ron Mc Daniel, President, CEO, California Credit Union
Department of Financial Institutions
Governor Schwarzenegger
Attorney General Jerry Brown
Congresswoman Diane E. Watson
U.S. Senator Dianne Feinstein
U.S. Senator Barbara Boxer

My Letter to You:
With All Due Respect,
Now when I tell people I wasted two years of my life, and am loosing my home because I sought a loan modification, they say, I am a sorry, didn’t you know that was not real.

I am always the last to know, guess it’s my learning disabilities. I heard Congressman Frank on NPR this evening, speaking about help for unemployed.  Recently I read about another Obama program for the unemployed, offering 50k for two years, to help those of us unemployed due to the excesses of of the wealthy,supposedly available in California.  I could not find any where to apply for it, and based on past experience I am skeptical about it’s credibility. So far two years of nice sounding programs to help the people have been empty lies.

The programs to help the banks, have been a robust success so they can continue God’s work, of destroying people.

Those of you who mangled the economy,worsened my medical conditions, ruined my financial life, are in the process of stealing my home, and my tenuous hold on security, and I am no exception.

It must be hard to connect with the suffering, law makers have created, from your cozy, guarded ivory towers. Just look away, so you don’t have to see, or feel the suffering, and the rage boiling within the masses. You can always kill them, then you and your wealthy lobbyists, and financiers will be safe. Then you can go on living in an illusionary luxurious context of superiority, pretending you are helping, when you know you are not, while those you are elected to serve and protect are dying on the vine.

My most recent letter, to the CEO of California Credit Union I resorted to begging. They pretended to patiently work on an Obama loan modification, I foolishly trusted them, and had my guard down.  They caught me unprepared to deal with a sudden, accelerated foreclosure, and auction sale, on the smallest of two interest only HELOC. My intention was to refinance all variable debt when done with my final stage of life renovation.

Too bad my first experience with sadistic cruel home improvement lenders, and the attempted extortion, breaking state and federal law, by their partner loan servicing partner, American General Finance, a subsidiary of your good buddy AIG, delayed my renovation at least three months, and triggered Complex PTSD in me. Which has not gone away. 

Before the banks failures stopped all loans, and crushed my otherwise successful business plan, my intention was to refinance when I had a high FICO, and excellent payment history, which I maintained many months after the banks failed, while they did everything they could to cheat, lie and steal every penny they could, with banks games, they never admit. 

I have written too many letters, and no one helps me. Our country is in no position to act like models of and imperialist moral dictators of human rights. Our country run by banks is a disgrace. Our country needs to clean its own back yard before we point fingers at other countries.

I released my privacy to Senators Boxer and Feinstein, wrote Congresswoman Watson, Complained to the regulator of California Credit Union, Department of Financial Institutions, California’s Governor, as Senator Feinstein’s web site suggests, Attorney General,  Jerry Brown,  the Los Angeles County of Consumer Affairs who informed me that California Credit Union was unlawful in blocking my ability to pay my account current, allegedly so they can steal my equity.

No body does anything. Why do we even have elected officials? The thing they are good for is to tell you what they can’t do for you, unless they are campaigning. How do you all live with yourselves? I had hopes this administration would be different. It is worse the than the previous eight years of hell, at least they were transparently evil. Perhaps their will be a time, some time for each of you to ponder the corruption, deception, duplicity, and how you did not help those you were elected to help.

Since my four grandson’s college money was stolen by greedy banks and my credit union, when I die on the street homeless, the only thing I can leave for them is to give my son in law, a senior litigator, my permission,to sue for premature, unnecessary wrongful death.

Today’s letter to CEO and President of California Credit Union. (Wolves disguised as lambs.)

Dear Mr. McDaniel,
I am not in bankruptcy, I am trying to sale my home. I have someone who is interested. Please remove my house from the auction sale. When I sell the house, you will get all of my past due interest only payments and the miscellaneous fees added to my account.

I have learned business is business, and it is about making as much money as possible no matter who gets hurt.

I also know you have the power to give me good faith flexibility. Please remove my home from auction sale so I don’t have to file emergency Chapter 13 again.

I sacrificed my entire life helping people, healing troubled people 32 years as of last month. Recently I helped a Veteran who was the victim of a hate crime for free, because he makes so little money.

I did my best to be there for my daughter, and she is doing a good job raising her four young sons.

On my own, earned my Bachelors, Masters, and PhD with no help from my family.

I have always been devoted to helping people, even as child. It is in my nature, my mother was severely mentally ill, and I was the last one at home for several years, so my childhood was about trying to help her.

Most of my career, I was the ‘people’s’ counselor, in that I charged only whatever they could afford.

I tend to be independent. Now I am wounded, hurting and need your help, please help me.

I tried everything possible, repetitively since the September 15 crisis, to refinance my debt. I even sacrificed, my 15k IRA accounts, and my health insurance to keep up with payments. Not a single financial institution would ‘voluntarily participate’, in standard, or government guaranteed loans. I worked hard on the renovation, and did a good job, and have good tenants who love living here.

Every part of my business plan worked except, the impossibility of getting a refinance, for the first time since I have lived in my home. August 2, 2010, was my 25 year anniversary of living here.

I recently wrote my 38 year old daughter to tell her I was sorry, but it looks like I am going to loose our home. She was sorry to hear it, and said she had many good memories living here with me. Anticipating I will be homeless, she suggested she could bring the boys to a restaurant, to spend some time with me before I move away. I was their only babysitter for the first seven years, until I began the renovation.

I pushed myself, to do this renovation, not just for me, but for my four young grandsons future college money. If California Credit Union sells my home at auction, I will be homeless with no money. My daughter and her family do not have room for me.

I have pushed myself with insecurities, and disabilities, both genetic, and from the abuse and neglect from my developmental years. I have done thousands of hours of volunteer work in my life, and was the sole legal guardian of my daughter since she was an infant. A high school drop out, with a GED, while parenting my daughter, I trained to be teacher, with the goal of being a special education teacher.

I am wiling to forget about pursuing a loan modification, and to give up the home. I just need time to sell it. This is the worst time of year to sell a home, and you know the market is not great, but I already have a serious buyer, who loves the house, visited the second time yesterday, with her architect decorator, and she likes me, which is a good sign. If I don’t sell it to her I am confident it will sell it to someone soon.

It’s taken a toll, living with extreme levels of stress since the renovation started in 2006, then, just when I thought I could refinance and rest, the bank crisis hit.

Please show me some mercy and allow me the time to get the house sold. My plan is to sell the house and move to an area where the air is cleaner. Living in L.A I have to wear a medical respirator, when I go outside for very long.

I would like to purchase a small one bedroom, or a loft like large one room space, in a cleaner air area of California. Due to my medical challenges, the panoramic view from this house is wasted on me. I have to keep windows covered, and lights dimmed to minimize the chronic migraines I have had for many years.

After grieving the loss of the house, and moving further away from my daughter and grandsons, I am doing my best to focus on what will be good about moving. Moving with no money, because the house is sold at auction, will make relocating a terminal experience. With my medical conditions, moving to the street, homeless, with no money, credit destroyed during the recessionary decline, is void of good.

Please use your power and show me some mercy.
I beg you.
Gary Gesler

Letter To Joni Moran Underwriter California Credit Union
Completely ignored as usual.

Page 1 of 3.

Gary Gesler Ph.D.
3501 Landa St.
Los Angeles, CA 90039

September 28, 2010

Joni Maron
Real Estate Department
California Credit Union
RE: DFI Complaint (Loan #2078630611 /  #45000018954)

Dear Ms. Maron,

You state at the close of your September 10, 2010 letter:
“In summary, both of your loans are delinquent to date. Our office has repeatedly attempted to obtain the minimum documentation required to review your case for a modification(s).

I hope this helps clarify the course of action that California Credit Union has taken.”

You are correct my loans are delinquent. Your are correct I’ve been sent 4 different loan modification application lists. All of the lists, had items in common, and each list had unique requests.

The lists:

December 17, 2009: Five items requested by Shawn Mackey, referenced both HELOC.
February 23, 2010: Seven items requested by Michael J. Rodriquez, referenced both HELOC.
July 13, 2010: Eight Items requested by Shawn Mackey, referenced both HELOC.
August 26, 2010: Five Items requested by Joni Maron, referencing one HELOC.

I am not sure if you are aware of my:
December 2008 request for a loan, when my FICO score was high, and I had no late payments on anything. A loan that would have prevented almost two years of pain and suffering, and a need for a loan modification.

June 2008, SBA, ARC loan inquiry, when my FICO score was high, and I had no late payments on anything. A government guaranteed loan that would have prevented almost two years of pain and suffering, or even a need for a loan modification.

As of August 2, 2010, I have lived in my home for 25 years. Since 1985, I have completed three renovations. The final renovation began late, in May 2006, due to a first time experience with a sadistic, predatory mortgage broker. Under difficult circumstances I completed the final stage of life renovation, so I could:
Move to the lower portion of my home.
Rent the upstairs doubling my rental income, to supplement eventual social security.
Increase value of my home, to contribute to my four young grandson’s college.

I completed the renovation before the banks failed in September 2008, which made it impossible to refinance my variable debt, the final step of my business plan.
Page 2 of 3.

Even though I had equity in my home before the renovation, after the banks failed, and to date, I would not have done the renovation, and I would not have applied for the 2007 and 2008 HELOC from California Credit Union, if I knew the banks were going to fail.

If I knew the September 2008 banking crisis was going to turn in to the worst economic environment since the Great Depression, such that standard refinances, government guaranteed loans, and loan modifications were going relatively impossible to acquire, I would not have pursued them.

In retrospect, I now know it was a mistake to spend over two years trying to get any type of loan to stabilize my debt. Already exhausted after the renovation, energy wasted seeking loans, would have been better spent building my psychotherapy practice.

It would take too long, and I would not want to traumatize you, by describing the abuse I have endured since the banks failed. I got behind in payments, because pursing the loan modifications, took all of my time and energy. I focused on Bank of America first, given they service my first mortgage. It’s sadly ironic, shortly after I finally got Bank of America to sincerely work on my loan modification, California Credit Union sends me a Notice of Auction to Sell my home.

It is true:
I have several American Disability Act, recognized learning disabilities that worsened while pursuing various loans.

My 2008, and 2009 tax returns were the primary missing requirement spanning the loan modification lists sent me. Delayed due to learning disabilities, Major Depression, and other debilitating conditions inflamed by seeking loans. I finally paid a C.P.A., to help me complete them.

My mother died February 27, 2010.

After Shawn referred me to you, I wrote you many times, via California Credit Union web mail, left many messages for you, yet we have never spoken.

August 25, 2010, you sent the Notice of Auction to Sell my home.
August 26, 2010, you sent a fourth list of loan modification requirements for the 2007 HELOC only, to my junk email I rarely look at, versus the standard email, listed with California Credit Union.
August 27, 2010, 15 days before the auction sell date, I took cash to a California Credit Union Branch office, to pay the 2008 interest only HELOC, current. After telling me the exact amount due, the teller took my cash, looked deeper in to the computer, discovering you blocked my ability to pay my accounts.

Someone suggested you may have blocked my account, to force the sell of my home at auction, so California Credit Union would be paid in full, and become the recipient of the considerable remaining equity, leaving me, broke, broken and homeless?
After my payment was rejected, I learned from the Los Angeles, County, Consumer Affairs, website, paying my past due account current 15 days before the sale date, would cancel the auction. Blocking my ability to pay my account current, while the 15 pay day, cancel sale, rule exists, is confusing.

The last thing I wanted to do was file Chapter 13, but after calling numerous resources it was the only solution given, to cancel the auction.

Page 3 of 3.

I may have PhD, but I do have learning disabilities, and it requires more time and energy for me than for the average person, to do paperwork, given the disabilities specifically involve difficulty processing numbers, and reading. I was not able to get the information together for the Chapter 13, in time, and I noticed that you have scheduled my home to be sold at auction again, on October 12, 2010.

Please be patient and remove my home from your auction list. Give me the time I need to either properly prepare the bankruptcy paperwork, to sell my home, or to put my full energy on trying to build my practice up again.  California Credit Union, will get their interest and penalties, one way or another.

If you can not find it within the realm of good faith flexibility, during these extraordinary times, to give me the time I need, I will be on the street, exponentially declining medically, homeless, broke, and on Social Security Disability.


Gary L Gesler, PhD

Ron Mc Daniel, President, CEO, California Credit Union
Department of Financial Institutions
Governor Schwarzenegger
Attorney General Jerry Brown
Congresswoman Diane E. Watson
U.S. Senator Dianne Feinstein
U.S. Senator Barbara Boxer

On Fri, Oct 1, 2010 at 10:50 AM, FSDWebUpdate wrote:

October 1, 2010                                                              

Capital Markets Subcommittee Chairman Convened
First Congressional Hearing to Examine May 6 “Flash Crash”

WASHINGTON – Congressman Paul E. Kanjorski (D-PA), the Chairman of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, today joined in releasing and commented on the report of the staffs of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) to the Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues regarding the findings of the events of May 6, 2010, when major equities indices, individual stocks, and exchange traded funds rapidly fell and quickly recovered within a matter of minutes.  Chairman Kanjorski convened the first congressional hearing on the “flash crash” on May 11, 2010.

“The SEC and CFTC report confirms that faster markets do not always lead to better markets,” said Chairman Kanjorski.  “While automated, high-frequency trading may provide our markets with some benefits, it can also carry the potential for serious harm and market mischief.  Extreme volatility of the kind we experienced on May 6 could happen again, as demonstrated by the volatility in individual stocks since then.  To limit recurrences of that roller-coaster day and to bolster individual investor confidence, our regulators must expeditiously review and revise the rules governing market structure.  Congress must also conduct oversight of these matters and, if necessary, put in place new rules of the road to ensure the fair, orderly and efficient functioning of the U.S. capital markets.  The CFTC-SEC staff report will greatly assist in working toward these important policy goals.”

Click here to view the full SEC-CFTC report.


I can certainly relate to this person’s feeling as I have gone through the same thing everytime I have been of work for my disability. If you are on disability with no certain date to return to work, Try to get a loan. This is one good point of having credit cards. Without them I couldn’t have fed my family and kept my home. After my first disability I tried to purchase disability income insurance. I found out what my employer was paying me (65% before taxes= 50% after taxes, was the maximum I could have because of state law. My Dr.wouldn’t ok me to return to work but after so long you have to in order to provide for your family.This was in the 70’s. After three more times off from work( two for spinal surgeries) I got my time in for early retirement.My wife started working outside of home after my last surgery. With my wife’s work we were ok. Then the plant where she worked closed and that is when our problems really statred. We still have a good income but the financial institutions will not help you get throughthses financial difficultories. If you have equity in your property, especially if you have tried to build up for yourself and your family (like this post says) you are just up the creek

I hope people who post comments will stop to realize how much diversity there is accross our country. Some areas of the country are in the depression stage while some areas are not hurting very much. If you live in one of the better areas, I realize it’s hard for you to understand what others are going through. If you have never had disabilities and not able to provide for your family, You simply don’t know what it is like for these people.

The banks are trying to minimize the “errors” and control the damage before the full truth comes out.  There are many more irregularities in addition to improper signatures.  Many many times the foreclosing party has not filed documents (even improperly signed documents) which would establish their legal standing to foreclose.

Man many times the borrower/homeowner has not been given proper legal notice of the foreclosure, which is required in most states.

When my loan hit the 90 days deliquent. It was given to a foreclosuring company. My property was empty but I live a quarter mile across the field and my daughter lives next door to the property. They scheduled the sheriff’s sale and ran the ad in a paper that isn’t delivered in my area. A small weekly paper and we have a daily paper the is delivered to our home. They knew that I had spent the last money I had to fix it up to try and sell it.They posted the notice on side of house away from the door I was using to check house.I was around there almost everyday. I was using the garage for storage and kept the yard mowed until they sold it. I found the notice 5 days before the sale. No one bid onit at the sale so they got it .They knew they would make money on the property so they wanted and got it.


Oct. 7, 2010, 9:10 p.m.

While these sob stories are heartbreaking we should not forget that these banks put out real cash so that these people could buy these houses.  The sellers walked away with large checks.  The money went somewhere.  The homebuyers were sucked into owning by emotion and greed.  The stockholders and bond owners have been hit hard with loss of equity as well.

Pamela Stanford

Oct. 7, 2010, 9:14 p.m.

Daisy and all of you that have had no luck with modifications listen up. The federal government gave the banks bailout money so they are financially sound, right. What they are doing is foreclosing so that 1. the investors in the chain can not come back and sue the lender of record and 2. the fed is off setting the losses on foreclosures, ie: If the lender foreclosed for a balance on a loan say $100,000 and then resells that property for say $50,000 the FDIC will cover 80% of the lost on the $50,000 or $40000. We are now at $90000 pay back on a loan of $100,000. If there is insurance of 17% that’s another $17000 paid to that lender. Add up the lender got $17000 on an outstanding loan of $100,000. Profit $7000 or 7% of the loan balance. If the lendr sells the house for more than the $50,000 in the example, then the profit is even greater. This is why modifications will not happen. The government is insuring that on top of the bailout monies the banks got, they can much more money if they foreclose and then resell the proeprty.They will talk like they want to help people through the Help for Homeowners program and others like it unfortunately the only people making out are the orginizations offering the programs, not the people asking for the help. The worse is yet to come I’m sorry to say. God Bless America and all of us.

Mayme Trumble

Oct. 8, 2010, 6:16 a.m.

You can thank the Bush administration for this mess in mortgages! They pushed “home ownership for everyone”- this was their way of keeping the economy going. Money flowed to home builders who in turn let it flow back to Republicans. Don’t believe them when they talk about small government-they just pump money to a different set of people than Democrats.

Mayme, I hope you will get and read “Senseless Panic”. This is from one if not the best informed people about the financial mess we are in. When a person of this stature is willing to correspond with a little person as I am. It says so much about their character. I will always be thankful for the information that I have gained at a time when I was searching for answers as to what was happening to me. When you lose everything that you have worked a lifetime for (which I have) I want the truth of the complete picture.

Seffieandcoco, You can call thses sob stories if you like. The greedy are the ones that set on their backsides and reap the benefits of the hard working people of this country. That just shows yon haven’t been there and gone through what a lot of people heve been going through. When someone works 40 to 50 years to get into a position to help their families and then have a crooked organization either as the broker, closing agents, or lender makes no difference. They do work together and for their own benefit.I’m not talking about the honest people. The financial institutions have just shown their true colors in all this mortgage mess. How many people have lost jobs because the government have helped their employers move their jobs to other countries. The ignorance of the american people to what the results of their actions are is no excuse. The people of this country are financing the demise of our country and are either so greedy or simply to blind to see what they are doing to the future generations.

Pamela, You are right on why the instutitions won’t and don’t modify loans for the people. They make more profits by foreclosing and reselling them. The worst part is the fact that this was accomplished with the help of our government. Also it is amazing how the money flows to so few people and organizations. It all flows to the investors, either the big banks or wall street bankers, where it was all started.

What about OCWEN & INDYMAC does any one have any knowledge of these companies doing the same thing

pamela stanford

Oct. 12, 2010, 5:54 p.m.

Robert, I believe if you are dealing with Indy mac you have big problems because they were sold to One West Bank. Does the name George Soros mean anything to you? I can’t say it with 100% conviction but I do believe this guy along with some others are behind the current problem. Soros masterminded the collapse in Greece and may also be responsible for this one in America. do some research for yourself. OCWEN I do not have any info on them. Also go the to Fannie or Freddie web site and see if they own your loan in question. Also read the articles on ProPublica about CDO and you will see how this mess can not be cleaned up and that all the banks playing this game are involved.

Robert, I was foreclosed on by IndyMac. they wouldn’t talked to me at all about a modification. they new they had a money maker when they filed for bankruptcy. I had put all the moneyIhad into fixing the place up to try and sell it. No short sell or modification was to be had. My 90 days were up 0n August the 8th, Sept.11th it was sold by sheriff’s sale. The FDIC had taken them over so they may have not had any choice. The new owners (One West Bank) are the ones who made all the money. The sweetheart deal they got from the FDIC. They knew they would get a deal from the start.

Pamela Stanford

Oct. 12, 2010, 6 p.m.


This is so correct, it even scares me. The problem was master mined by the private sector approved by the government from the get go. Check out this link, read it slowly and then post you opinion here. It explains why some banks are being treated differently than others, namely CitiGroup.

And now the government is helping the same banks collect all the assets and resell them, namely our homes. It’s not enough they took taxpayer money to bail them out, but now are selling off the houses to get more money and doing i with the blessing of the unjust justice system that allows fraud to accomplish the task.

Pamela & Robert, Mr. soros and 4 or 5 of former Goldman Sachs (I’ll let you call them what you want) Ihave my own words. Are the owners of One West.

go to this website, you have a MERS loan I am sure you do

see website for further info

Pamela Stanford

Oct. 12, 2010, 6:24 p.m.


Here is a copy of something I wrote back in March. It sites other sources so read it for yourself and you can understand why the public is not getting any help with this foreclosure mess.

..Indymacs new name
News Type: Other — Seeded on Sat Mar 13, 2010 11:23 PM PST.Article Source: The L.A. Times
bank, fiasco

I got this a couple of days ago and thought I should share it with all those having difficulty with loan modifications. I think this is why mods will not get done and why the banks are keeping the customers at bay.

Why loans will not be modified and why it is advantageous not to modify them. Can we say 30% profit to the banks that hold these loans.
This morning I received an e-mail from an on line, industry publication who gets the credit here. It’s called TBWS Daily. This Blog is run by folks in the lending business so I am confident they know what they are talking about, so here it goes, get out your calculator and stay with me now. Indy Mac taken over by the FDIC and then sold to One West Bank, who is owned by some of the good ole boys of Goldman Sacs, namely Socorro’s and a few others. That’s not really that big of a surprise but the rest is. This is a real example. A homeowner that is upside down in his mortgage has a loan of $478000 plus 6 months late payments for a total outstanding amount of $485200. One West Bank buys this loan for $334600. The homeowner sell the property short for $241000. The difference between the sales price and total debt is -$244200. FDIC cuts a check for 80% of the loss or $195360 to One West Bank. So, $195360 from FDIC + $24100 sold price = $436000 - what One West paid for the deal or $334600 = a net profit to One West of $101760. Then One West gets the seller to sign a promissory note for $75000.

My comments:
If the borrower files bankruptcy, the bank will not get the $75000 but if he pays it the profit to the bank is$176,760 plus the interest on the note.Now you know .....

The government is offering and paying $4500 to the banks for successful loan modifications. Based on the example above that is only 0.04%. Any banker, even if dumber than a box of rocks would not take a measly 0.04% when they can be making a windfall.. By the way, it is noted that this is the government playing a game with the state of the economy,the taxpayers, the money supply, etc. No wonder Sheila Bair told the banks they need to write down the balances because its costing the FDIC more money than they have and are now headed to the governments trough, The Treasure, for more money to support this shell game. I do not know or have information if this scenario is being carried out by every bank and/or lender today, but if it is, we, the people will end up with nothing and the banks will have won this poker game all the while playing the game with the tax payers money. I think this is criminal, corrupt, disgusting.
copy this and send it out into the world, tell everyone you know.

Pamela, I will go one step farther than you. They got my place back as there wasn’t anyone that bid on it when they sold it at the sheriff’s sale. Hers goes, I had paidalmost 70,000.00, They got the 80%=155,000.00. I was told that it was 80% of the loan, not the loss, but I’m using your formula here. They sold it for 90,000.00.  Total is $315,000.00 for a $205,000.00 mortgage amount. This is for a 5yr. time span.

Pamela Stanord

Oct. 12, 2010, 10:13 p.m.

Al, this is just exactly what I’m talking about. We need to find a way to bring a HALT to this kind of practice, let alone the fraud being used to foreclose. I’m going out on a limb and post the letter I sent to Dave Stevens back in April. I want all those that read on this site to pass the word, contact everyone you can. This whole fiasco is going to DESTROY AMERICA.

Here is the letter I sent to Dave. It is proof that they had notice of the events and did nothing about it.

From: .(JavaScript must be enabled to view this email address)

To: .(JavaScript must be enabled to view this email address)

Subject: your hud link

Date: Mon, 19 Apr 2010 01:43:18 +0000

Hi Mr. Stevens,

Recently I was viewing HUD’s link which has a window from the Ideas Team. In reading through I noticed that they are asking for input relating to the current housing crisis and how to stop foreclosures. If this is something you are involved in, please read on, if you are not involved, please see that this e-mail reaches those that are involved like Mr.Donovan. Here are some ideas and thoughts about this housing crisis. First, the fraud being allowed in foreclosing needs to stop. Judges allowing substitution deeds and fraudulent notes produced by the servicer in order to facilitate foreclosure is illegal yet judges are accepting this practice on a routine basis. I believe this makes judges a part of the problem. Any person
with any knowledge of real estate knows the only person with legal rights to foreclose is the legal note
and deed holder. Servicing companies are not the legal holder yet continue to foreclose. In many cases as we all know that these instruments have been sold off as many as 65 times in the derivatives markets and many of the original notes and deeds are lost. Judges stating that the servicers claims that the money is owed because they have a record is not a viable argument since owing the money for a mortgage is not in question yet this is the argument being used by foreclosing servicers and those claiming to have the right to foreclose. I believe this is exacerbating the problems in foreclosure. I believe that only original, legal documents be presented in foreclosure proceedings. Second, loan modifications.
The words, loan modification, trial period, and qualifying need to be removed from any program that is designed to help homeowners in foreclosure hell. The term loan, modification means nothing except to the lender who seeks to rip off the customer they are supposed to be helping. Loan mods bring $4000 to $4500 to the lender just for implying that they have made a loan modification. Next, TRIAL PERIOD. Why should there be a trial period? I think it’s because the lender or servicer know that the customer will no doubt be able to keep up on his/her end of the new mod. rules and will default anyway. I think it would be a much better idea to get rid of the trial period and also rather than pay the lender and or servicer for setting up mods.that will no doubt fail, they are be penalized for not doing it right from the start.
Next, qualification. How can many of the people in financial straits qualify for anything? The credit has likely been damaged beyond repair. Add to that joblessness, loss of income and exhaustion of all other assets. Asking people to qualify is like saying “NO” from the beginning of the process.

Fannie and Freddie
Since Fannie and Freddie are now owned by the government and are no longer quasi entities, it
makes sense that they would be the first to do what ever they can to halt foreclosures yet they have opted to do just the opposite. These two entities will not do a modification or principal write down.  Considering that these two entities are now owned by the public, I would think that everything possible would be done to stop the foreclosure trend.
MARKETING (Foreclosure pricing).

In my line of work I see many foreclosed properties and short sales as well. I also talk to many real
estate agents regarding the listing price and concessions. I hear over and over again that the listing price is set by the seller (the lender or its agent) and that they want a short marketing time, less than 90 days in most cases. That said, it is the seller that is exacerbating the decline in the housing market. Lenders are setting the selling price lower than the last sale or lowest listing for a similar property that is located in the same tract and or neighborhood. I think that if this practice continues, housing prices will go down to almost zero if not in fact zero. In closing, what I see is the government aiding and abetting the problem of foreclosure with programs that only make money for the banks and lenders while doing nothing to curtail the problem, In fact it xacerbates it. It’s time to take this problem head on for what it is and stop all the stall tactics under theguise that things are “getting better” stance. Things are not getting better and in fact are getting worse and will no doubt get much worse as we watch Goldman Sachs and the SEC fight.
Thank you in advance for your attention to these important issues.

Pamela L Stanford

Pamela Stanford

Oct. 12, 2010, 11:05 p.m.

Al, This is why foreclosures are going to continue, fraud or not. The banks are making a killing and we can’t do anything about it. the moderator of this site is holding up a post I wanted to share with you and others here. Maybe it will be released soon. check back.

I think those who expect the government’s program to help you save your home are in denial. Most of the restructured loans have failed within a few months. Prices are not coming back anytime soon, unless jobs and wages spike upward in short order. With more than 5 people for every opening, that will not occur for several years. Even if you could refinance your house, you would be continuing to hold an interest in a declining asset. Why on Earth would you want to ruin your entire life for a house? Ultimately, the market will set prices. All of these interventions are window dressing. Wake up and take control of your own personal situation. If you are seriously underwater, either short sell or bail on your mortgage. You will not make up the loss in the next ten years.

After over a year of the Curly shuffle, and losing my file on several occassions? It appears Citibank is offering a solution? Just add another 15k to my mortgage and we’ll reduce the interest rate? That’s a fine how do? Shoulda just threw the keys in the door? Maybe I can buy it back at the steps for Half?

Pamela, the $205,000.00 was the orginal amount of my mortgage. IndyMacbought it at the sale for $144,000.00. There is another very popular owner at One West.

Isn’t it time that the Texas Attorney General starts checking on how many people have been foreclosed on and their homes sold out from underneath them while they were in process of The Modification Program?
This is the problem we are dealing with right now, They sold our home on Sept. 7th at the Court House sale, The Modification Dept. (GMAC) wrote us a letter dated Sept 7th the day of the sale and mailed it to us on Sept 8th stateing not enough time to review so home will continue to sale.. Which they did that same day. They took our home and never gave us the time aday to defend the situation. We had 50 thousand equity in our HOME. I want something done. If this has happen to anyone else in Texas email me at .(JavaScript must be enabled to view this email address) PLEASE !!!

Steven Sagala

Oct. 18, 2010, 8:26 p.m.

I commented on our experiences with the loan-mod con here previously, describing an excruciating process of humiliation going back over 2 years. My wife assiduously responds to every request for information, redoing of papers, affidavits, signatures, updates etc., etc. They always tell us basically “you’re OK”, “we received your information” etc. 8/9 - we were told everything was up to date; it’s “under review” and being assigned to a “relationship manager”.
Today, we received a card from the local Sheriff to come in and sign foreclosure papers.
My question is: when this fiasco blows over, or when we are finally homeless at 60 years of age, will we be able to sue and collect big-time? I hope that we will, because I’ve had a bellyful of our “respected financial institutions” and the soulless orcs who support what they do. What’s happened to this country - the super-rich are proudly sitting on their cash while I’m seeing people sleeping in the woods as winter approaches. I live in the suburbs, where there are no shelters.

Nov. 23, 2010, 4:13 p.m.

I can’t tell you how many homeowners I know who are suffering as a result of this mortgage
debacle. Good news is there still is hope and options- Obtain a forensic loan audit. This is a
specialized service performed by qualified loan auditors who scrutinize your loan documents for violations. These violations can be substantial. You can submit the findings to the bank as leverage to enact a workout as an alternative to a lawsuit. You can even potentially sue to rescind the loan and in some cases, get the mortgage settled for pennies on the dollar. Loan audits can run from several hundred to a thousand dollars. Your audit is a waste of money unless his/her findings have been admissible in court and/or have enacted real world results.

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