Journalism in the Public Interest

Read: The Depositions That Sparked the Foreclosure Scandal

Over the past month, we’ve seen lots of evidence that banks and others have taken shortcuts with paperwork to push foreclosures through.

Bank employees have acknowledged that they’ve signed thousands of foreclosure documents each month without much first-hand knowledge of what they contained. Other players in the foreclosure process, including law firms known as “foreclosure mills,” have taken similar shortcuts.

The revelations have prompted a joint investigation by the attorneys general in all 50 states and no fewer than five federal investigations into the mortgage lenders’ handling of foreclosures.

Much of the evidence that sparked the furor has come from a number of court depositions by employees or former employees at banks and foreclosure mills. We’ve gathered the most interesting of those documents in one place and highlighted the best parts:

  • A former legal assistant at the Law Offices of David J. Stern, Kelly Scott, testified about some of the practices at that firm, which is currently under investigation for fraudulent, “foreclosure mill” practices. In an October 2010 deposition, Scott testified that key documents necessary to proceed with a foreclosure would be missing from a case file, and then the paperwork would appear when needed. Mistakes went uncorrected on the assumption that a judge wouldn’t notice. Paralegals acted as notaries, often notarizing documents even before they were signed. Then they’d be signed by the office manager of the foreclosure department, who “doesn’t review them.” Due to the volume of documents, that manager taught others to forge her signature and allowed them to sign on her behalf. Files that weren’t processed correctly would be hidden from clients who came to review the work. Scott also testified about Fannie Mae’s and Freddie Mac’s involvement with the law firm, noting that there was talk of a “quota,” and that Fannie and Freddie would push the firm to “pick up the speed.” As we’ve noted, the two government-controlled mortgage giants recently suspended business with the firm.

    (Both Fannie and Freddie representatives denied having quotas for law firms handling their foreclosure cases, according to USA Today. Both Stern and the office manager declined to comment to CNN, but the firm’s lawyer, Jeffrey Tew, said, “No misconduct is occurring at David Stern’s law firm. … What the David Stern Law Firm has done is use modern technology to efficiently process legitimate foreclosures.”)

While the processes described in each of these depositions vary to some degree, several similarities exist: large volumes of documents, an emphasis on speed, reliance on someone else—either within the company or as an outside contractor—to verify the information sworn in the affidavit, some improper notarization practices, and the granting of signing authority so that one individual may sign for a number of companies.

Banks have consistently said the procedural flaws will be fixed, and some—Bank of America and GMAC—announced plans this week to resume some foreclosures.

Despite the types of practices described in these depositions—which point to flaws not only with servicers but also other players involved in the process—banks have maintained that no wrongful foreclosures or evictions occurred. Or, in the words of Jamie Dimon, CEO of JPMorgan Chase: “We're not evicting people who deserve to stay in their house.”

Yeah, right, Mr. Dimon.

This will only stop when individuals are sent to jail and both individuals and corporations made to pay huge fines.  If it was a homeowner fraudulently signing documents this is exactly what the banks would be asking for.

The fact that almost no one has been jailed because of the fraudulent loan applications that started this whole mess would seem to show that these criminals are being protected by the government.

When hasn’t the government protected the crooked financial businesses. Who funnels the most money to the politicans for their campaigns? All financial businesses donate heavely to political campaigns. If you believe the government will do much to hold big business accountable, I’m sorry for you. It just doesn’t happen.

It should be obvious that the Real Estate Gold Rush, and thus a great deal of the economic boom, in the 2000’s was built to a great extent on fraud and falsehood.  A sizable percentage of the loan originations and underwriting were based on unverified and falsified buyer numbers.  The securitization of the loans into MBSs and CDOs was based on the same unverified numbers combined with almost complete lack of due diligence on the part of the institutions evaluating, peddling and purchasing the securities.  With the same institutions running the show, it is not surprising that the foreclosure is full of fraud as well.  Why would it not?  No one with any clout has insisted that they significantly reform their practices and no one has paid any significant legal price, despite the trail of homeowners, investors and, well, everyone else, who was damaged, in many cases devastatingly, by this massive boondoggle.  When will someone make these con men pay for the destruction they have wrought?

Did anyone bother to ask Jamie baby just how much Chase is profiting on this fiasco? Probable not. I listened to the news yesterday and heard a lawyer talking about this meltdown and how it was a planned event, he named people, business and all the players. It will be interesting to see what comes of it. Personally, i think this is a coup de grace. Instead of guns and military power they are using the power of the buck.

from wikipedia, the definition:
expression coup de grâce (pronounced /ˌkuːdə ˈɡrɑːs/; French: [kudəɡʁas], “blow of mercy”) means a death blow intended to end the suffering of a wounded creature. The phrase can refer to the killing of civilians or soldiers, friends or enemies, with or without the consent of the sufferer. It is often used figuratively to describe the last in a series of events which brings about the end of some entity; for example: “The business had been failing for years; the coup de grâce was the sudden jump in oil prices.”

Why is it that a handful of thugs and plunderers can commit unthinkable atrocities and when it’s time for their gravy train to crash under the weight of their gluttony and overwhelming stupidity, the government has no difficulty coming to their aid .  Yet at the same time, the joke we call the American medical system, including the drug and insurance companies, are murdering tens of thousands of people a year and stealing from the corpses and victims they cripple, and this country’s leaders don’t see this as important as bailing out a few of their vile, rich cronies.  It’s clear they see no crisis as long as the dead people don’t get in the way of their corporate profits . JUSTICE ? are you kidding ?

Anything the gov’t is involved with—count on the job being done half-a**ed!  I hope all the DemocRATS and RINO’s are voted out of office!

I love it: “...anthing the gov’t is involved with ...” comment.  I really want the Repugnicans back in office.  NOT!  You know the corporate puppets that want to continue to off-shore jobs.  The religious fanatics that want to end Roe v Wade.  The hypocrites who created TARP and have increased gov’t spending more than any Democrat in the last 30 years.  By the way, April, I assume that given your stance on government that you don’t use public services.  I’m sure you’ve never used a road, a public service agency, or any public services, not even public education.  Nor of course any public assistance such as unemployment.  If you are making these comments then you MUST be one of the 1% of the elite, who pays for everything (oh sorry, who has the rest of the 99% pay for it because you are smarter)?  But, you are probably not.  You are probably someone who should be fighting the elite but somehow find yourself fighting for them like the rest of the Tea-Baggers.  You are probably someone that could end up on the street due to some bad luck very easily.  You are probably someone who pays exhorbitant prices for healtcare and could lose it any time.  Wake up!

There’s nothing like a good, (?) deep recession to educate the public on “economics”!
Hopefully the public will learn not to “trust” a system that is so skewed towards the financial sector backed by a corrupt government and unfair tax system.
The system is basically supported by, “The Greater Fool Theory” of economics….there’s a greater fool that waits to buy what you have purchased, and now want to sell.
Lacking “historical memory” by the public and some very naive politicians and a more savvy financial sector, this economy has been fleeced to the bone and it will be years before any significant “recovery” is even on the horizon.
The largest growth part of the future economy here in the US, in my opinion, will the the “underground, cash” one.
Hemorrhaging good paying jobs, mortgages based on those jobs now going into default, escalating financial (credit card, auto loan) defaults will force individuals and families to look towards the underground, cash economy to pick their way thru in the coming years. 
Re-invent yourselves…..that’s the key.

nissim sasson

Oct. 24, 2010, 5:09 p.m.

To Jack; Really? The Republicans back in office? Im not 100% with the Dems but they are the less of the 2 evils At the time when we need more ledership not less you want to elect this Tea Party ignorants back in office? and you forget that TARP was done by BUSH admisnistration (republican) Paulson (republican)?
Im not saying dems are saints but compare to the Rep who put us in this mess in the first place, 
At least they do some financial reform) and credit cards reform (not enough i agree) but unless we make these politicians pay for a long time and not only 2 years all politicians will know that if the mess up the country it wont be a problem because they can be back in buisness in 2 years
God save America !

Thomas Jefferson quotes: 
The system of banking [is] a blot left in all our Constitutions, which, if not covered, will end in their destruction… I sincerely believe that banking institutions are more dangerous than standing armies; and that the principle of spending money to be paid by posterity… is but swindling futurity on a large scale.

IMHO - this issue settles the necessity to Protecting Our Gun Rights - and frankly, we are rapidly approaching the need for the militia Patriots to re-arm… 

Thomas Jefferson - Declaration of Independence
“… governments are instituted among men, deriving their just powers from the consent of the governed. That WHENEVER ANY FORM OF GOVERNMENT BECOMES DESTRUCTIVE TO THESE ENDS, it is the right of the people to alter or to abolish it, and to institute new government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their safety and happiness… … But when a long train of abuses and usurpations, pursuing invariably the same object evinces a design to reduce them under absolute despotism, it is their right, it is their duty, to throw off such government, and to provide new guards for their future security…”

Keep the Powder Dry

We can do this peacefully, first and foremost is to keep the pressure on the banksters that created and are still making billions from this crises . They are spending millions as we speak to keep the corporation in control . The corporate elite 1 % of us are running the country . How many political candidates are talking about this crises, the fraud and saying stop the foreclosures ?  Greyson, Sanders, maybe a few more, not many . Because they work for them , not us . They have the money and its legal to buy who ever will except their money . Take this law that a “corporation is a person and has free speech” and repeal or amend it . Corporations speak with money . 99% of us speak through our hearts with our mouths . Speak Up and tell others to spread the news of how the banksters have and continue to steal your money, your house, and our lives . !!!

Speaking Out has being going on for the past several years…

What was the underlying Countrywide settled the 8.4-Billion dollar lawsuit in 2008? MORTGAGE FRAUD

How much of that has been disbursed to REAL FAMILIES?  Last time a check (many months ago) it was less than 2%.  Has anyone even held them accountable?  The last I heard CW passed that onto the Investors…

Using CW data that means they tossed over 57-THOUSAND families to the street - yet, their loans were FRAUDULENT. 

Per Investor Lawsuits - CW deliberately sold 142-Billion dollars of mortgage loans KNOWING those borrowers could NOT repay. That equates over 965-THOUSAND MORE FAMILIES tossed to the streets by ILLEGAL LOANS.  The lawsuit further shows that it is factually IMPOSSIBLE for the courts to know if those families were ever properly disclosed.  In fact, it shows they were “induced” to sign docs “fraudulently” manipulated by CW and its originators.  CW created a separate underwriting program (software) that picked up those applicants rejected by their normal underwriting program - changed the loan docs to NINA & SISA loans - without these borrowers EVER knowing this was done. They used 1.25% rates to calculate the payments - used 35-40 terms - inflated their income - ALL without ONE SHRED of disclosure to these borrowers.

Then these SAME lenders/originators FAILED to complete the final transactions AFTER SETTLEMENT thus did NOT Transfer these loans to the Trust.

The loans are Frauds. The Trusts and their investments are Frauds, and their Foreclosure Docs are Frauds…!

Those are FACTS and our Gov KNOWS this is going on.

These foreclosures are ILLEGAL. They are Illegally Seizing Private Property and Denying Due Process..!

Each of these Foreclosure Mills & lenders is worthy of McVeigh UHaulers parked out front their buildings.  This is a blatant assault on our Constitution and our RIGHTS.

The borrowers still owe the debt, but it is outrageous to allow this unconstitutional act to continue and WE THE PEOPLE must be ready to fulfill our Constitutional Obligation & Duty.

How many families are being destoyed? How many divorces - how many murder suicides? How addictions being triggered by the relentless stress and pounding into poverty by these arrogant lawyers… 

We are at that moment in history when Patrick Henry gave his famous speech that night in St. Johns Church VA…  “Give Me Liberty or Give me Death…” I encourage all to read that speech…  Any believing this is not a full-out assualt on our liberties is fooling themselves. 

Keep the Powder Dry

David, your right on, what about the CW monies, where is it ? It is a “full - out Assault” on 98% of Americans, yet a confused & frightened citizenry will be voting against themselves by voting for any Republican . The Repugs have produced more billion, and millionaires , over the last 40 years, while at the same time moving most middle class jobs over seas . Don’t get me wrong most Dems are just as guilty of this . I think the last 2 years were for learning, and the next 2 will be game changers . Make corporations subordinate to we the people !

Hi Equity Free - There are so many unanswerable questions it is hard to say.  I cannot in good conscience vote anyone espousing progressive bs… IMHO - that is treasonous socialist manipulation - and I’m not saying you are a progressive either - only that I’ve read their bs and would fight a revolution before bowing to their surrender of our liberty…

That said - the big lesson I hope & pray we can all learn is - no matter Republican or Democrat or third-wheel - they BETTER be AMERICA FIRST - no exception… 

Creating billionaires & millionaires is not the issue.  The issue is HOW they make it.  If you invented the toaster and created a toaster factory with 1000 employees and earned 50-million bucks - hey, good for you, man - there is nothing wrong with that…  True capitalism & free enterprise is good for everyone however, somewhere along the way - we lost something.

Corporations already are subordinate to the people - if they don’t like it, don’t buy it.  A good example, I used to think about buying a new Chevy Camero having the motor tweaked and customized a bit.  Not anymore - I cannot in good conscience ever consider buying a GM or anything that Obama stole from the shareholders and gave it to the unions.  That is blatant anti-American philosophy to the core.  I’d rather die fighting against that socialist bs…  Allowing the gov to get away with something that heinous is beyond words. 

The problems we are witnessing stems from career politicians being bribed to stay in office by corporations and cronyism.  The problem is not about regulation or laws on our books - the problem is no one is enforcing them.  The present situation is a perfect example.  These foreclosures are blatantly illegal.  Obama knows it as does Gueitner and our senators - THEY ALL KNOW IT and have determined to sacrifice these families 10-20 million all said & done - so THESE arrogant pig-politicians can keep their retirement funds. 

This has been in the works for decades - it isn’t a partisan issue - it is a politician issue.  Meaning, no matter when dems or repubs were in office - ALL part-took of the evil fruit and became infected.  The only way to inoculate our politicians from these plague is giving them a HARSH reminder that comes in two forms.  ONE - TERM LIMITS - two terms - get out don’t come back and go find a job so they can then live under the laws & rules they passed.  TWO - any politician breaking the law - given a life sentence - if it is bribery - executed.  No exceptions… 

Vote for America forget about the partisan bs.  We cannot possibly afford another few years of pass the bill so we can read it later - bunch.

The Fed Gov should be cut-off of ALL tax collections…

It is OK to disagree on multiple issues, then work in solidarity on issues we do agree . I’m all about anyone as in your toaster man, the Google boys and others that made their money by earning it on a fair playing field . The financial entities, banks that have created loans that they knew would fail, and now are foreclosing on 10 k homes a month in Florida illegally are making billions because of a rigged playing field .Its easy to make billions when you rig the game .  There is more then enough evidence out there now . Still no arrests . G/S was charged for mortgage FRAUD, paid a fine, and now are still robbing 98 % of Americans . The corporations are not subordinate to the people, we the people are slaves to them . The supreme court this year in Citizens United V Federal Elections Committee gave them freedom of speech. In short now in elections the contributor to any candidate does not have to be disclosed . ( Nat. security ? )They were given person-hood in a 1880,s ruling, Santa Clara Co v Southern Pacific Railroad . Its the unbridled greed of large corporations, who have bought and paid for most gov officials . Not the other way around . Who ever gets elected will be a player or will be a 1 term official . Watch a old but true movie
“Mr Smith Goes To Washington ” it shows you the game . Bonus the “filibuster” . Arrest the BANKSTERS !!  The Game is Rigged !

Corporate Greed, three examples this year .
Massey Energy, coal miners killed, company has had
many safety violations over the years . Paid Fines Only .
G/S mortgage fraud, major player in this global economic crises , Paid Fine Only .
BP oil rig explodes, workers killed, environment damage unknown . Many safety violations, paid fines .
Does anyone believe these company’s care for their employees and /or any body,s health ?  Arrest these greedy criminals ! We are only costs of doing business .

I agree - if they do they crime, they pay the fine and are prosecuted.

Political Donations - I think we’ve come to a place that ALL donations must be funded by tax dollars using a standard scale.  All get the same with equal access. No personal or other funds at all. 

If we don’t protect our system of gov, we will lose our way of life.

As for Banks & Wall Street - I believe their penalties should ultra-extreme. Wall Street should have double sentences as with anyone in Gov jobs like SEC regulators, etc.

IMHO - until we see SEVERAL more McVeigh reminders, the gov will NOT do a damn thing. I know it sounds crazy but IMHO - these lenders and especially their foreclosure mill attorneys - all are open targets including their families.  These people are no different from al-Qaeda or Taliban… they should be treated the same.  Anyone working for them should serious consider finding employment elsewhere.

They know what they’ve done and they should be prosecuted with extreme prejudice - no mercy. This is WAY beyond money or property - this an attack on American’s way of life.

Keep the Powder Dry

Jeanette McCarter

Oct. 26, 2010, 8:15 a.m.

It is articles like this the give people the impression that housing is free in America. This articles suggest people should be allowed to stay in their homes if they can pay or not. When I read articles like this I think about the more than 80% of the mortgage holding population in this country that are paying their mortgage payment each month. What message are you sending and continue to send to the people paying? “You are a Fool for Paying your mortgage each month”. The Mortgage industry is not a Mom and Pop operation. It is a large industry regulated by banking laws both state and federal. You have no idea of the number of check legal checks and balances that are required to foreclosure on someone property. Similar checks and balances are required to provide mortgages to consumers also. You have occasional errors that occur, however this is not the norm. We don’t currently have true facts about the number of foreclosure or the reason for then. The reason you don’t see mass numbers of people going to jail for mortgage fraud is because they are following state and federal guidelines.These guildelines are not new to the industry. They have been in place for years. Each state offers it own consumer protection organization for the mortgage industry. This is not a new organization either. These organization revoke mortgage broker and other lending organization licenses in their particular state. They also report fraud to the FBI, the States Attorney and the US Attorney offices. Banks are regulated under federal and state laws. This conspiracy theory laid out in this article is ridiculous. It simply perpetuate the wrong message to non-paying mortgage holder. The message is housing is free. Also,” Don’t worry about paying your mortgage because those other fools are paying” People in America get evicted for not paying rent in this country. People face foreclosure when they don’t pay their mortgage. Housing is not free or guaranteed in this country.
Why don’t you create a theory for the people paying their mortgages?

Jeanette McCarter-Here is a theory for you from someone who IS paying their mortgage.
You must be kidding yourself if you do not know what the banking industry is doing to America…$144 million BoA made on people on WELFARE in fees charged in California alone. All the while the State is looking at a $9 billion deficit.
I am coming to know first hand of their deceiptful ways. Instead of answering my legitimate questions BoA prefers to instead ruin my good credit with inquiries and “credit blocks”. And this is while I am paying every month on a debt that they cannot or will not tell me the true owner.

One very important point you are not addressing, the banks are foreclosing on people with whom they have no contractual rights to. They are breaking our hundred of year old property laws and making a mockery of our honored courts by fraud and forgery. There are countless cases of people who have never been late on their payments, or who never even had a mortgage in the first place.  I won’t even get into the ones who were defrauded and pressured into “liar loans” (the banks did the lying, not the borrowers). The banks have their hand in all the moving parts to a mortgage, appraisals, title insurance, credit rating agencies, attorneys, MERS, etc. The borrowers were duped all around!
Please take the time to read my story  We had a construction loan with SunTrust and they misappropriated the funds by giving the builder all the money without making him accountable for it as they were contractually obligated to do.  We never missed a payment & continued to make payments even after finding the fraud.  The bank will not convert the mortgage to a permanent one because the house is only 60-65% complete and the money is all gone even though we never signed a change order authorizing anyone to spend over the contracted amounts.  They have now filed for foreclosure and are trying to get the house back with all of our equity (we had 900k to start the project).  We have been to every agency you have named above and no one has been able to help us.  The only agency that has authority over this bank told us that they agreed with us that SunTrust was in the wrong and we should find a good attorney.  Trying to get a good attorney that is not in the banks pocket is no easy task and then taking it to a judicial system who is not interested in due process ,contractual and constitutional law is even harder.  It has been over a year and a half since we discovered the fraud and we have gotten nowhere as of yet.

Jeanette McCarter-Really I do not think ANYONE wants NOT pay their mortgage!! Even a blindman can see that if you own a home for 5,10,20,30 years and manage to fall behind in the last few months. Someone’s circumstances have changed. Loss employment, illnesses, etc… I spent 20 years employed by the same company. I educated myself to get a 30 yr fixed rate loan,I earned my degree I have owned my home since 1998 and paid every month of 12 years even after being unemployed until the last few months. I really mean the LAST FEW months.  I am a single mother of one and have been for 20 years I have not reached out for help from the system I have paid into for most of my life until now.  I am not asking for a FREE home So stop with that nonsense. Before you pass judgment consider yourself blessed to have a job, make your mortgage pymts etc in lieu of being like myself Crying endlessly,can’t eat,can’t sleep cannot engage in a relationship all because I do not know from one month to the next if I am going to have a roof over my head for myself and my child. If you think for one min everyone that can makes their mortgage payments are doing it legit think again! I will never compromise my self respect or dignity All I am asking for is the same help the Govt gave these banks. The system is severely flawed! People are losing their children,their marriages, their LIVES. I got the best job I can get right now and I PAY more in taxes than I bring home. I will pay my mortgage given the opportunity but when Bank of Americas fees are more than my late pays It stand to reason why I need help.

Hi cat brooks,

Regarding your construction loan… Depending on the state - construction loans can be very tricky to hold the lender liable. Courts usually will not even apply the fiduciary rule during construction. What you can do is to read your contracts for breach of contract.
Another thing to look at is the loan docs making sure which catagory it falls under the regulation Z…

If you gave written notice to the lender and they continued to disburse funds without approval, a case could be brought - but must be clear objections. Construction scenarios like yours are typically RIPE for Predatory Lending allegations and property flipping.

Your state’s website should have something on it. Most states force arbitration with builder disputes. If the builder is small-time, they will most like file bankruptcy. They are very hard cases to win and you will want EVERYTHING you can about the builder & Bank relationship. Your state laws are key…

Thanks David!  The big difference with my loan is that we found a “Builder Direct Disbursement Notice” in our file that gave the bank the power to pay the builder directly.  They took us out of the payment loop (most const loans have the borrower either get the disbursement directly or cosign a check).  We would find out about the disbursement AFTER the bank paid the builder.  When disbursements are sometimes hundreds of thousands of dollars, where does that leave me?  Our contract stated the bank would only pay for completed work (even specifying they would not pay for deposits or stored materials) but they paid the builder directly for incomplete work, deposits, etc. The key here is that the only party privy to the inspection reports was the bank, it was an internal document they never shared with us. 
Florida lien laws hold the bank responsible for making proper payments when the bank pays the builder directly.  They violated lien laws by not making sure the subs and vendors were paid in full, thus we have liens filed on the home from multiple subs and vendors.
Take a look at the link I provided, it has some very interesting information about the banks relationship with the builder and his employees (1 of whom is a convicted felon, he embezzled confiscated drug money while working for the DEA as an agent) SunTrust loaned him money on his home AFTER the lien for forfeiture was posted in the public records by the Atlanta DOJ.
What am I looking for in the loan docs as far as Reg Z?

Hi cat Brook,

Sometimes a construction loan is written as an Open Ended Credit type loan. If it was setup with specific disbursements - that may not apply - but you want to be sure the loan is a true construction loan and merely disguised as one but is actually an equity loan.  They very different laws under TILA. 

We’ve fighting a construction battle for almost 5-yrs. House never completed - not inspected - fraudulent U&O Permit - 100k embezzled - ALL with the LENDER’S full knowledge - I have pictures emails - the whole works - spent over 60k in attorneys - still fighting but without attorneys. Blip me an email at - .(JavaScript must be enabled to view this email address) - I will gladly send you the files I’ve found on this already. 

There is a good case won by attacking the back for willfull commingling of funds THROUGH the builder. They actually argued that the builder is a legal TRUST/ESCROW making them liable.  It was the damndest way to attack but they did it and WON… flipped out a lot of legal folks - they thought the attorney was crazy for trying… I have the case somewhere in computer.

The other thing about being sure of the loan is because these boneheads will usually pre-sell the loan before it was converted. You just might be surprised to find your loan was dumped in a cessPool - bundled and ILLEGALLY SOLD as mbs to an unsuspecting investor. That’s what they did with ours… I have the SEC filings - PSA - and exhibits - even a doc with PIMCO Holdings that contains our LOAN ACC Number - address, amount - the whole deal… ALL done 8-months before we ever moved in the house - unfinished. The boys been up to no-good for a long time and getting away with outrageous fraud… our loan violates every warrantee in the PSA.

Recess is over - now its time to pay the piper…

Barbara Ann Jackson

Oct. 27, 2010, 2:37 a.m.

Whether or not foreclosures become halted, little is accomplished without addressing the elephant in the room –hiding in plain sight! Lawyers for mortgage lenders should be held accountable for foreclosure improprieties and concealing malpractice against their lender-clients, as well as for committing Unfair Debt Collection Practices, extortion, and fraud against borrowers.

Discovery of such conduct can begin by comparing blighted neighborhoods and foreclosure conveyances to non-existent lender companies; bankruptcy “Lift Stay” motions that “lack standing,” “proof of claims” different from ‘lift stays’ “movers”; and illegal property deeds. And, lawyer are wrong for injurious frauds, failing to “effect service” or failing at any substantive Civil Procedure requirement –not homeowners for refusing to cooperate with erroneous and fraudulent home confiscation.

Often foreclosure delays are because of the lawyers, but they keep that fact from clients. Lenders, (are not required to know laws) sometimes are unaware that lawyers’ mistakes, errors, and frauds provide reasons, defenses, and basis to attempt negotiating mortgage contracts.

Also, property owners seeking debt reorganization through Chapter 13 Bankruptcy are not to be blamed for contesting a false “proof of claim” or false “Lift Stay” motion. As such, countless foreclosure lawyers owe $$$$$$ to their clients for fatally botching foreclosure cases.

LSU finance professor, Joseph Mason travels the country, inter alia, masking foreclosure corruption and racketeering activities connected to judicial frauds, Wells Fargo, and Freddie Mac here in Louisiana. (*Thank you Senator David Vitter!!!*) But his statements make light of harm from lawyers’ fraudulent foreclosure activities, and misinforms about the filing of fraudulent court documents as being “overblown.” If the focus is on “quelling” fraudulent foreclosure filings and deliberate frauds instead of looking at critical facts and issues, concealment is a preferred route.

But, glossing over things is not appropriate for people who have been tortiously harmed by extortion and fraud –here in Louisiana or any place else! Refusal to even consider what those actions are, and who are the actors, exacerbates rather than extinguishes casualty. Even worse, the culprits who are most responsible for damages continue wreaking havoc.

Also, injurious acts by foreclosure lawyers, render them as well as their clients liable for damages. The half has not been told of outrageous, unfair collections, and privacy invasion associated with foreclosure! Lawyers know what they’ve done; they seek to have victims go away to avert exposure. Mortgage default causes foreclosure, but default doesn’t justify fraud and victimizing defaulted borrowers!


*OPEN LETTER TO PRESIDENT OBAMA on Foreclosure Crisis (concerning Wells Fargo)

As I read all these comments and others in response to earlier posts, I am struck by how effective your government is at making sure you don’t organize around these issues.

What the hell is your house rep/senator doing about the bank fees that are sending homeowners into foreclosure?

Why didn’t the banks have to pay fees to all their account holders (you - you were forced to have a deposit account to get a discount on your interest rate - remember?) when they took the bail-out money?

Why are you sitting by watching a bunch of incompetent bankers collect bonus’ while you lose your homes?  Why should they get off the hook?

This is America.  Your founding father’s took up arms against this type of tyranny . . . this a fact and not an opinion.  Remind our government that the power is with the people and the people are RED HOT mad!

This tyranny is happing because you let it happen.  Get on your computers - make your kids, your parents, your friends and your employers get on theirs as well and let our representatives/senators know that THEIR GRAVY TRAIN IS IN PERIL!

Send one email (the same email) a day to your rep/senator and don’t stop sending them until we hear that the bankers are afraid of the people they are cheating out of hard earned money (on fees) and out of their homes. 

You are allowing your government and the banks to rape you.  For God sakes stand up and refuse to be victims! 

I’m standing with you.  Good luck.


I have a drawer full of lame responses from my congressman, senator both state and fed. I have sent many to the white house AND THEY NEVER RESPOND and I have to tell you, they are doing what they like and give not a pence about us except on election day and tax day. Things are beginning to make more sense to me now when I think about how they were trying to take the guns away, enact new laws, monitor phones, computers, cameras on every light pole, surveillance everywhere we go. killed off the family unit, support diverse and perverse lifestyles, open borders, cap and trade, the mountains of debt that will never be paid, the Bernanke thinking his move to print more money will help even though they failed the last 2 times, now they want to control the food supply with the fox guarding the hen house, Monsanto the culprit of genetically engineered food in charge at the FDA, favoring some fish over the human race by turning off the water to Calif. farmers,  tsa and the x ray machines and molesting people, how many of the Constitutional rights have been aborted here?, Obomination health care, the dumbing down of America, school failing their students,  prostitutes in the government and of the government and when I say prostitutes that is anyone that sells themselves for a buck, a favor, special interests, etc.the list is long and getting longer every day. if could paint a picture, it would be a mural, each incident after another as they unfold. The story would look like 1939-1945 Europe if you get my meaning.

I can say this with certainty. For all those that believe there is intelligent life in the universe, I hope they are right because there certainly isn’t much left in this one and if ET is out there he better get here, QUICK..

Nov. 26, 2010, 10:34 a.m.

Mortgage modification is a do it yourself project.

The solution to ensuring a good faith mortgage negotiation is proving to be the REST Report. The Rest Report calculates an unbiased Net Present Value using bank software. The lender can’t dispute the calculations. The REST Report has been sanctioned by every single judge who has ruled on it. The software always recommends modification or short sale since those solutions benefit the mortgage investor and homeowner the most.
Click for Information on the Do it Yourself Mortgage Modification

Matthew Slaughter

Dec. 21, 2010, 12:17 p.m.

This a funny contrast with all the crisis books portrayal of Dimon - as one of the few CEOs who cared about details and risk.

Does JP Morgan Chase use different foreclosure systems and partners than all the other banks that are Trustees of RMBS?

Why don’t you write a story about the progenitors of this mortage crisis, the easy money, everyone should own their own home no matter what their financial situation attitude of our Federal Government.

Right around the time of Clinton’s reign, Freddie Mac and Fanny Mae were pushing home loans down everyone’s throats with little thought for the financial repercussions. This had a direct, negative effect on the mortgage crisis of today.

I feel sick to know that people in the UK get more press for weeks over a frickin wedding we will never see outside the mags and the media. A stupid birth certificate proven correct.  Don Trump giving himself the credit.  And to Add to more America 150 tornadoes, Death destruction, no need for the banks to worry about taking peoples homes God and Mother Nature did it. The lies about the grand amt of jobs being open!!! Still waiting.And since Bank of America has lost my total I identity 6 7 0r 8 times I at least hope she is cute. If Bank of America didn’t think about was all about the money the they would not have taken on CountryWide.  They did so they could kick people out on their home and let then fall in the ground. Believe they knew going in then CountryWide they were told these homeowners “Were as they said
everyone is considered   deadbeat” and it only a matter of row, Illinois has a brand new prison not even open yet, Tell those bankers there is plenty room and come spend sometime before they meet there Maker/

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This article is part of an ongoing investigation:
Foreclosure Crisis

Foreclosure Crisis: Banks and Government Fail Homeowners

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

The Story So Far

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

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