Journalism in the Public Interest

Feds Replace Flawed Foreclosure Review With Vague $8.5 Billion Settlement

Banking regulators admitted the Independent Foreclosure Review was a big expensive mess and shut it down. But many details about the $8.5 billion settlement that replaces it remain murky.

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Jan. 14, 2013, 1:15 a.m.

ohh, and can we say pay off, bribery or just ole thievery? you just knew this was coming after the election. it was fast with obama but would of been even faster with romney. face it people we don’t matter even a little. be good little sheep and follow the leader. big business wins always us little sheep loses simple huh?


Jan. 14, 2013, 1:13 p.m.

Obama YOU have a choice.

If you address the corruption within your administration and the US financial system, and turn from austerity to create jobs—good paying jobs—someday you might rank with Roosevelt, Lincoln and the greats of this country.

However, if you continue to turn a blind eye to criminal wrongdoing within administration, your place in history will be alongside Grant, Harding, Nixon and Bush. 

It is past time to appoint an independent prosecutor to investigate financial fraud, public corruption and favoritism within the US government. 

So what is YOUR answer?


Jan. 14, 2013, 1:38 p.m.

There is an article that was just posted by ” huffington post” re: former employees of the review are talking.  Telling what they were told NOT to look for- turning a blind eye.  I’m sorry, but they are just as guilty.  I was raised to stand up for those who could NOT stand up for themselves. Is that not what our country is? To defend against intruders and justice? My mother taught me to give the shirt off my back if I saw a man cold. 
If you go to work to right a wrong- and yet still do NOTHING… You are just as guilty as those who have put me and my children to live in my car. Over a 3 day late payment.
Don’t speak up now… It’s too late to become friends with the kid with the black eye after the bully has beaten them. They are already scarred!


Jan. 14, 2013, 2:07 p.m.

The problem is who is watching the Hen House? The banks own the politicians and most politicians do what they need to do to get what they want,“one hand washes the other”. George Soros who bought and invested in One West Bank previously Indymac bank and who also generously contributed funds to Obama’s ‘08 and 2012 election campaign has influence in getting what he wants. IndyMac Bank which was co founded by Angelo Mozilo and who was CEO of Countrywide Mortgage was featured in Time Magazine as one of 25 People to Blame for the Financial Crisis is “not in jail”....why is that? We need some accountability here. What we are all seeing and experencing here is Massive Greed in motion and it is continuing at a high rate of speed and it is only a matter of time when it hits the wall…hard. This is what I believe from my own research. What needs to happen is Accountability and a Settlement with the People who have been harmed in many ways. Bring jobs back to America and start taking care of our own in order to become stronger because at this time we are weak and not self sufficiant anymore.


Jan. 14, 2013, 5:07 p.m.

I also have similar stories (trial mods, missing paper work,  etc. ) and was foreclosed on April of 2010.  My attorney managed to reverse the process and work out the loan.  My inlaws stepped forward and bailed us out, but at a huge expense.  I agreed to a private loan with them.  Sometimes I feel like I should have just let it go.  My story differs here because my lender (Saxon/Morgan Stanley) is not part of this settlement plan.  I’ve been reading that the feds are going after Morgan and Goldman Sachs (litton) and information should be forthcoming.  Interesting note is both of these loan servicers have been sold to Ocwen loan servicing, another stellar player in the subprime market thus convoluting matters even worse.  Does anyone have new info on what is happening with these two banks?  What a mess, but I guess that is in the banks favor thus the monetary settlement.  It could take a decade or more for this to fully unravel.


Jan. 15, 2013, 1:52 a.m.

There are just no words for this moral outrage.  Obama is seeing this and now distracts with gun control and fiscal cliff?  This is a problem from 2008 that was never cleared up and yet we are on to “new” problems.

This country just plan sucks big time, from the incompetent Congress right up to the President.  I don’t want to hear any more rallying speeches….when will we follow laws and all “worthy” criminals go to jail whether they have a dollar or a billion in their pocket? Shame on Obama for bringing in the Wall St terrorists to work throughout the administration.

Julie Stroeve

Jan. 19, 2013, 5:58 p.m.

As a foreclosed homeowner, the revelations brought forward in all the Propublica reporting leave me stunned and speechless.  Let’s just for the sake of argument say that all these things have taken place.  But are they taking place in the dark without Congressional oversight?  And are they taking place in policy decisions that skirt Congressional action…like…voting in the House and Senate?  I simply cannot believe that our country is operating in such loosy-goosy ways that are meant to ignore real people (like me and millions of others) rather than create a meaningful partnership between the TBTF banks (too-big-to-fail) and homeowners.  And add in Freddie and Fannie.  There are hedge fund foxes gambling shorts and longs on the housing crisis and nobody is guarding the henhouse!  I just cannot get my arms around this.  I did everything right and the TBTF banks did everything wrong—and I’m looking at homelessness and the banks are looking at bailouts as far into the future as can be imagined.  What’s wrong with this picture?  Who’s going to demand Congressional action?  Are they blind deaf and dumb?  I doubt it.


Jan. 19, 2013, 6:11 p.m.

Don, the banks regulate themselves and they are too big to fail and too big to jail. According to Neil Barofsky’s tell-all book, the HAMP program was doomed to fail and was only rolled out so the BANKS could have a “softer landing” (Geitner direct quote) and not have to process too many foreclosures at once. That it COULD exist and CONTINUE to exist as business as usual is just an outrage. I am glad Geitner is gone but I don’t know if the new guy will be any better. Presidents starting with Ray-gun slowly undid the regulations that prevented the banks from being casinos (which is part of why we had a Great Depression…) I mean, did we not learn that lesson before? You can be a bank or a casino… but you can’t be both… OH YES you can! Why? You have taxpayers to bail you out. Read this one if you haven’t already: It will blow your mind! Matt Taibbi’s reporting, along with ProPublica is helping us see this “crisis” for what it really is:: WHOLLY AND TOTALLY caused and perpetuated by the banks and others in the financial industry. I am so sorry about your foreclosure, ( I was able to scramble out of mine, but paid an expert $3,500 to fight for me, she was totally worth every penny.) Matt’s story is here:


Jan. 19, 2013, 6:20 p.m.

Don, the banks regulate themselves and they are too big to fail and too big to jail. According to Neil Barofsky’s tell-all book, the HAMP program was conceived to help the banks and not really the homeowners and was only rolled out so the BANKS could have a “softer landing” (Geitner direct quote) and not have to process too many foreclosures at once so that they could offset their losses easier.  They knew most homeowners who applied would not get modified but that was never the intention.  That this crisis COULD exist and CONTINUES to exist as business as usual is just an outrage. I am glad Geitner is gone but I don’t know if the new guy will be any better. Presidents starting with Ray-gun slowly undid the regulations that prevented the banks from being casinos (which is part of why we had a Great Depression and needed regulation in the 1930s by FDR…) I mean, did we not learn that lesson before? You can be a bank or a casino… but you can’t be both… !!!??  OH YES you can! Why? You have taxpayers to bail you out if you make bad investments! . Read Matt Taibbi’s story in Rolling Stone called Secrets and Lies of the Bailout. You will fall over backwards at the audacity contained therein!  His reporting, along with ProPublica’s is helping us little people see this “crisis” for what it really is:: WHOLLY AND TOTALLY caused and perpetuated by the banks and others in the financial industry who have not really been held accountable for anything. And when they ARE, they get another soft landing like this settlement. I am so sorry about your foreclosure, ( I was able to scramble out of mine, but paid an expert $3,500 to fight for me, she was totally worth every penny.) Still I am modified but owe the bank tens of thousands for their years of dual tracking. Matt’s story is at Rolling Stone, Propublica won’t let me post the story with a link in it.


Jan. 19, 2013, 6:21 p.m.

sorry, I meant to address Julie.


Jan. 19, 2013, 7:14 p.m.

Because I was never sent letters with dates of when events were happening to me as I have learned are foremally supposed to happen in ” real” foreclosures- now because the review was scrapped, I will never know what actually happen to me.
When your four days late one your mortgage payment, and come home to locks on your home… With no explanation…. That’s not America!
How about reverse our credit reports and be forced to give us what we had as available to put into a new/ another home? Hmmmm that an idea! A right thin to do that would cost them nothing!!!!


Jan. 19, 2013, 11:22 p.m.

Nikki, was your state a non-judicial foreclosure? If so (and I could be wrong) but I believe they are not required to notify you of anything, even the sale date! It sounds like you were late for your trial payment and they sent you right to foreclosure without further notice. (Which I agree, is reprehensible). You were not made aware of the sale date, so it just proceeded and that’s why you came home one day to locks on the house.  There is new legislation now (read more at Foreclosurefraud-dot-com) to prevent mortgage servicers from perpetrating this sort of abuse in the future. Not that it would help any of us now. Since they won’t let us post a link, here is the full text of the story:
WASHINGTON | Thu Jan 17, 2013 11:32am EST

(Reuters) - The U.S. Consumer Financial Protection Bureau announced new rules for mortgage servicers on Thursday to help prevent the sloppy practices that aggravated the U.S. foreclosure crisis.

Mortgage servicers collect monthly payments from borrowers on behalf of the investors that own the loans. That often involves letting borrowers know about the status of loans, modifying the loans for those struggling to make payments on time, and handling foreclosures.

The CFPB rules will now require servicers to follow clear procedures to help troubled borrowers seeking alternatives to losing their homes. The rules also restrict what is known as dual-tracking, in which servicers simultaneously pursue a loan modification and the foreclosure process.

“For many borrowers, dealing with mortgage servicers has meant unwelcome surprises and constantly getting the runaround,” CFPB Director Richard Cordray said in a statement.

“Our rules ensure fair treatment for all borrowers and establish strong protections for those struggling to save their homes,” he said.

The consumer bureau was created by the 2010 Dodd-Frank financial oversight law and given responsibility for policing mortgage markets and other consumer products. The regulator first proposed rules for mortgage servicers in August.

Servicing problems—including poor record-keeping, sparse customer service and “robo-signing” unread foreclosure documents—came under intense scrutiny as foreclosures exploded after the 2007-2009 financial crisis.

Bank of America Corp, Citigroup Inc, JPMorgan Chase & Co, Wells Fargo & Co and Ally Financial Inc entered into a $25 billion settlement last year with state and federal authorities over abusive servicing and foreclosure actions.

The consumer watchdog said it looked at the changes stipulated in that agreement, as well as state and other federal rules for mortgage servicers, before deciding on its final rules.

The new rules would create a minimum national standard for mortgage servicers, bureau officials said. Servicers have until January 2014 to comply.

Under the new guidelines, servicers must alert mortgage borrowers who miss two consecutive payments and spell out options, such as changing the interest rate or extending the terms of the loan, that could help borrowers avoid foreclosure.

The rules preempt quick foreclosures by requiring servicers to wait until a loan is delinquent more than 120 days before beginning foreclosure proceedings, the bureau said.

Borrowers who apply for loss mitigation must be evaluated for all of the options allowed by the investor, who owns the loan, and servicers must have an appeals process for borrowers whose applications are denied.

Regulators stopped short of mandating that servicers offer specific options such as loan modifications, which consumer groups wanted in the final rules.

“The CFPB’s final rules fail to implement the key lesson of the foreclosure crisis, that a loan modification requirement is essential to protect qualified homeowners from unnecessary foreclosures,” Alys Cohen, an attorney with the National Consumer Law Center, said in a statement.

In addition, the rules require servicers to provide warnings before interest rates adjust, correct errors quickly, and help consumers avoid so-called force-placed insurance, or homeowners’ insurance bought by the servicer that is often more expensive than what borrowers might find on their own.

Some small companies that service loans they own or make themselves will be exempt from many of the rules. Regulators expanded this group in the final rules to include servicers with 5,000 or fewer loans, after community banks argued they have more incentives to work with borrowers than larger servicers do.


Jan. 20, 2013, 12:04 a.m.

Mass- in the 16 years of paying our normal mortgage it wasn’t “late” until after the 15th of the month. 
We ended up having to do a modification that was a year long( Obama modification loan 2009). Reduced payment and the difference moved to the end of the balance of the mortgage.  6th payment in I was paid on Friday and made the payment. 8 days before the 15th( was due Monday ) - anyway got a letter that we were in foreclosure. I thought this is a mistake! I called and they said… Don’t worry- we are working to correct this, your payment has been taken and your modification is being looked at.  I made the next months payment and called to make sure it was all set and was told that my payments were in holding until my ” new modification” was processed ... I was like ?!?!? What?!?!?!  Came home from work soon after to everything inside my home and we were homeless. Wells Fargo would no longer answer my calls.
I was praying this review would give me some answers….
You know…. If it was a case that my payment was late and they canceled my terms- why not just put me back into my regular mortgage payments that I’d been paying?!?!
..... There just is no answers. None. Why do I keep torchering myself.


Jan. 20, 2013, 12:26 a.m.

Nikki, they will look for any reason, any reason at all,  to kick you out of your trial and put you in foreclosure. Sounds like they dual tracked you (put you in foreclosure while you were in the middle of a modification). This is one of the abuses that was supposedly going to be compensated by this Review. First of all to have a trial go a year was CRIMINAL.  I was in the same circumstance, paying on a trial for 11 months, and at their own discretion they decided I had “missing docs.” Immediate foreclosure. Then when you call in, they will tell you you are “still under review,” that’s a sham too… it’s just their in-house mod that they automatically roll you into, and placate you with,  and of course you won’t qualify and by then you are done. They piss me off so bad taking your payments when they intended to foreclose… You should have been modified after three payments. But if it is any consolation the HAMP (Obama modfiication) was basically designed to fail. Read the Propublica story here, which is an account of the whistleblowers who were hired by the servicers to DECLINE as many modification apps as they could. Bastards. Sorry you lost your house, you did not deserve that. What a nightmare. :(


Jan. 20, 2013, 12:35 a.m.

Kristina- it sounds like we are/went through the exact same thing. Years have gone by and every day it just gets worse because you can’t heal from something that cannot be acknowledged.
And no real proof because my paperwork was in my house!!!!
I can tell you how I felt that day when they said they were being made to do that review… I called my in laws- I said” look- on the news! This happened to other ppl too!!!!” ( they had said to my husband- she did something Michael, it’s not right, your money went somewhere… She’s playing you f


Jan. 20, 2013, 12:41 a.m.

- ( sorry hit send) for a fool! That does not happen!
I was so elated to know that I would have a 20 cent pc of paper that I could send them that would say…. Illegal foreclosure! That I was paying every month- and to the letter every month for going into 17 yrs and they stole my children’s home and everything in it!
But even that was taken From me.
..... I’m so tired. I’m so exhausted- I want just one person to say to me… This is what happened. Just one. 
I have the statements and cashed checks - whwre was my mortgage Payments going if I didn’t have a mortgage Wells Fargo?
....... So crazy


Jan. 20, 2013, 12:51 a.m.

Nikki, the banks are supposed to credit your trial payments a certain way and when they don’t they can use that to foreclose (she didn’t make full payments) AND, as you know they LIE… outright LIE. Every time I called in with a complaint, they would answer (by law they have to—called a QWR…) but rewrite THEIR version of events and make me look like a deadbeat who turned down all their generous modification offers (including the one where they “lost” all the paperwork!) Then that QWR would become part of the record of my case and anyone enquiring on myr behalf (such as state legislator or congressman) would get the BS (Bank) version of events.. MADDENING!!!! So once I was on to them, I then started recording my convo’s with the bank, so I had PROOF… I wish I had known you before yours went to sale, I could have helped you out with some strategies… because you could have stood up to them had you known you had a sale date. Got it postponed or cancelled.  No one can ever compensate you for your suffering and I so feel for you. Try writing to the Comptroller or the Currency, or to your legislators…? To the White House? Again, so sorry, there are no words for these criminals.


Jan. 20, 2013, 8:02 a.m.

When will this Madness end? Who is allowing “The Biggest Land Grab in History” to continue? These Greedy banks who are run & operated by UNCONSCIONABLE “people” want to steal all homes with Securitized Mortgages (NO ORIGINAL NOTE), in order to clean up the mess they created.
Obviously, the main objective is to take these homes to COVER UP their crimes.  These “people” are criminals who do not care who gets hurt in the process.
They do not care about the People who LIVE in the homes and all their possessions in some cases they are stealing. They do not care about The Children, The Mothers, The Fathers, The Grandmothers, The Grandfathers, The Sisters, The Brothers, and of course our beloved Pets who all suffer because of their ENORMOUS GREED. When will this maddness end? My heart goes out to everyone who has and is now experiencing this misery. God Bless.


Jan. 22, 2013, 11:24 p.m.

My home was foreclosed and sold (illegally) by OneWest (Indymac previously) in Dec of 2011, after much “fighting back” by me…they didn’t care, and they don’t care…
I want to tell you all something:
The reason for all the complete chaos is this: They didn’t have legitimate, legal “loans” to begin with—-I’m talking about the beginning—-1999-2000—-when the “subprime” began…The GSE’s (Fannie/Freddie) “charged off” loans at that time and created a system of “non-funding”—-like credit card debt—-and sold and re-sold COLLECTION RIGHTS ONLY…Then Wall Street PRETENDED to “securititze” “loans”—-but, the PONZI was that they securitized the borrower’s PAYMENTS—-not LOANS—-there was NO FUNDING (except for a little “cash-out”) IN THE SUBPRIME…this is the ponzi they are trying to cover-up by pushing the foreclosures though…read what my friend says about it all (she has been researching for 8 years):

“…Securitization of credit goes back to the 80′s. For mortgages, the ONLY securitization was Freddie/Fannie. Then credit cards, auto loans, student loans—all started to be securitized by banks. But, it was not until the subprime fraud that the banks started to “securitize” Freddie/Fannie charge-offs. This started to occur about the year 1999/2000. As this happened, “mortgage” market share shifted from Freddie/Fannie to the banks. Anything that has a cash flow can be securitized. Securitization is the pass-through of cash flows. But, the key difference as to subprime is in the accounting (remember Enron scandal??). Valid securization must involve the removal of RECEIVABLES. You have to understand an accounting balance sheet for this. Receivables are the current assets that are owed to a corporation (the only one who files accounting financial statements). Thus, for “TRUE” securitization—the current asset (cash) receivables are removed from “ON” balance sheet to off-balance sheet conduit. But, for subprime, this was NOT the case. Any GSE charge-offs (the note) cannot be “refinanced” for current cash receivable to be reported by corporate financial statements. Charge-offs are—well, charge-offs. Note is GONE. So when the GSEs charge-off the note—only collection rights remain. These collection rights are SOLD by GSEs to third parties. Collection rights (because there no longer is a note)—can only be reported as “INCOME” by the acquirer. Therefore, all these REMICs that claimed to be removing receivables from on-balance sheet to off-balance sheet—for “security” pass-through—were fraudulent. This is what the securities fraud is really about. As to the borrower, big difference—because, one—the note is gone (and only collection rights survive)—and two, the “debt” is no longer secured. It is UNSECURED. Big issue in bankruptcy. And, of course, the subprime refinances were falsely (fraudulently) presented as a mortgage refinance—when, in fact, they were nothing more than COLLECTION RIGHTS MODIFICATION. Also, big IRS tax issues involved. This is why the financial crisis hit so heavy and hard when it did. Europe discovered it first. Of course, US regulators, Congress, and the Federal Reserve themselves—did not know what hit them. Totally unprepared. Why?? Because Deregulation (which occurred at the same time that subprime started to surface–around year 2000)—allowed involved financial institutions to get away with it. Who is to blame for Deregulation?? Senator Phil Gramm, and President Clinton (President Bush could have stopped but did not.)”


Jan. 23, 2013, 7:28 a.m.

May I ask you a question?
When I got a tax form 1099-a for the “abandonment of property” the bank was Fannie may- the return address was Wells Fargo.  Never has my mortgage co. Been Fannie Mae.  Would that be why it said that????
That has always bothered me as well.  When I called Wells Fargo to ask they said ” we are no longer your loan serverser we cannot help you”

Karen M.

Jan. 23, 2013, 1:10 p.m.


Here is a comment from someone today on the website livinglies(dot)wordpress(dot)com:

Poppy, on January 23, 2013 at 9:38 am said:
“The rubber has met the road..IMHO, notes and DOT are in possession of Fannie and Freddie. No disclosures, indemnity required and many are deeply reduced with no contract out. Buy or lose the deposits…government has them and given “immunity” to the thieves for the rights to foreclose and recoup whatever they can…game over! The courts, OMG are our only recourse…again IMHO…suit against the government, without risking your life…must be everyone, safety in numbers. Agents are saying lots of these properties are in the pipeline too. Just my $.02 worth.”


The cover-up of all this is massive.  It comes down to the paperwork we all signed was already a GIANT LIE—-the subprime (which almost everyone was placed INTO—-whether they knew it or not) was NEVER about “FUNDED LOANS”...all a lie…think about it—-banks would NEVER actually FUND all those loans—-it was a giant PONZI…presented as a real, funded “mortgage”.  But they weren’t.  Massive insurance fraud, tax fraud, bank fraud, mortgage fraud, wire fraud, mail fraud, wire fraud, recordation fraud, property theft, civil rights issues and HUMAN RIGHTS issues involved in all this…and OUR GOVERNMENT IS COVERING IT ALL UP.


Jan. 23, 2013, 1:27 p.m.

It’s maddening Karen!!!
I called Wells Fargo just now… I thought ” why not!”  The woman said to me… Ma’am, when you were late on your payment- be it one hour or one month… We had the right to take it back.  We told homeowners many times - not just your home… Many…. Make your payment on time.
When a payment wants made timely during this timeframe, homeowners broke their agreement with us.
I was mind blown!!! I said may I have a copy of that agreement because I don’t think after years of a mortgage I would have signed that? She said no ma’am.
I said what about my request to me re motified when I recvd the letter after my late pmt that I was being foreclosed? And you took 3 add payments? She said I don’t know ma’am- did you follow up?  I said I did, it was right before I came home to locks on my home.
- she said I don’t know- go to the reg of deeds to see your deed!
Real cute!!!


Jan. 23, 2013, 1:29 p.m.

We also received a 1099-A for 2011, saying “Acquisition or Abandonment of Secured Property” when we spoke with an IRS representative she said “it says here you “abandoned the property” so I said “would you like a copy of the “notice to vacate” form we have?
On the 1099-A it says Lender: Freddie Mac since they “owned” the loan and the return address was Indymac MTG SVCS, A DIV of One West Bank so the bank is the servicer and the Lender Freddie Mac is the Owner of the loan so for you it would be Fannie Mae. Try to go to Fannie Mae website and type in your info. also check out The Mortgage Foregiveness Debt relief Act of 2007, I believe it covers foreclosures that happened through 2012. The information I have states you don’t have to report anything on your return although you need to report any losses incurred from the foreclosure of the property.

Karen M.

Jan. 23, 2013, 3:48 p.m.

Fannie/Freddie don’t “own” any “loans”—-THEY ARE “DEBT BUYERS”!!  They are trying to “wash” the money from the fraud of the subprime—-they are covering it up.  Here is more explantion (expanding on my previous posts):

The Wall Street/Banks SUBPRIME PONZI of “NON-FUNDING” (they used MERS to grease it) all started with GSE (Fannie/Freddie) CHARGE-OFFS IN 2000 (after de-regulation)—-ie. “MANUFACTURED DEFAULTS” you REALLY think banks would actually FUND all those “loans”?? Really? Well, they didn’t.

Those (fake) “loan” refinances (subprime/alt-a) and jumbo new purchases were non-compliant and non-performing MANUFACTURED DEFAULTS—-so NO FUNDING at all was necessary (except for a little cash-out for some loans).  The warehouse lines of credit NEVER ACTUALLY TRANSFERRED ANY ACTUAL CASH FOR FUNDING. These lines of credit were actually “credit lines” that the “Depositor” would provide to their correspondent lenders.  Once the “loan” refinance origination was completed the Depositor would then reverse the “credit” owed by the correspondent (originator).  This never involved ANY ACTUAL DEPOSIT OF CASH PROCEEDS—-the “funding” payoff check was never “deposited” into ANY bank account!!  The check was routed to a security derivative clearing house—-who then simply CANCELED the credit line transaction.

WE DIDN’T GET “MORTGAGES”—-THERE WERE NO “NOTES”—-THE DEBT-BUYERS GOT “COLLECTION RIGHTS”...which means the “debt” is UNSECURED and can be discharged in BK…instead, we get lies, lies, lies, FRAUD, FRAUD FRAUD, cover-ups and illegal foreclosures.

These have become HUMAN RIGHTS ISSUES that our government is CONDONING.


Jan. 23, 2013, 4:59 p.m.

Yes. Karen you are absolutely correct. I was just refering to wording on the 1099-A where it says Lender’s Name “not owner” which for us is Freddie. I understand the frustration as this Fraud continues and the general public is ignorant since the banks own the media. When this does hit the fan though, and I believe it will be soon, I will be happy to watch.


Jan. 25, 2013, 3:26 p.m.

I dont know about you folks but I completely plan on using ANY funds I get to find an attorney and sue for civil damages under the Fourth Amendment, which guards against searches, arrests, and seizures of property without a specific warrant or a “probable cause” to believe a crime has been committed.  To which the Fifth Amendment is applicable because of the due process right.

I have spent the last hour reading the horrible stories and trying to grasp the fact that this is America and not communist Russia.  How can illegal data on paper uproot American citizens from their homes without due process (..actually being present to plead your case)?  How can we be forcibly denied our way of living and at the same time a president grants 750 BILLION dollars to bail out three companies?  Do the math.  There were 1,509,669 homes foreclosed on total in the US.  If WE were able to receive the compensation instead of the big 3 it would have totaled approximately $496,797 per household average.  WAY more than enough to fix the problems.

It would have been a simple solution, find who has not been paying their mortgage and the consequences lie with them.  Those of us who were capable of paying, had been paying and were going through tough times would have received an actual modification.  Its not rocket science.  Those who had robo-signed mortgages (such as myself) would be allowed to keep their residence and be party to a lawsuit levied upon the corrupt lein holders.

My story is simple, I was a recently divorced Father of two.  I allowed her to stay at the residence until the divorce was final.  Seeing as I fought for and was awarded the children (how rare is that?), I wanted the house back.  I gave her everything else because I had what I wanted, the children.  Against court order and unbeknownst to me, she did not pay the mortgage for two months.  Once back in the home, I was met with foreclosure proceedings from Saxon Mortgage and Chase bank.  My children and I were forced out of our home like criminals.

I, nor my children, will ever forget that day.  The emotional tear is something we have all shared.  I will say that my children and I are stronger for it, but we have all learned to never trust anyone and read the fine print.  The most important thing though is to fight for what you believe in and when you are right go to the grave proving it.

We obviously proved we were all right, now if we forget and let it lie….well, thats on us.


Jan. 25, 2013, 4:15 p.m.

I have spent years ( isnt that sickening to say) trying to find a way to vindicate my family in this… It always ends is a pothole. Whenever that IFR abruptly ended I swear my stomach dropped! It was like - jokes on me again!
My husband doesn’t get why I spend time looking up HAMP and te forclosure review and agonizing. Because I can’t stop!!!  How can this not be fixed?!?!  He was in te USAF! How does he not ” get it”? He fought for this ugly and rotten country! Where is it fighting for my kids who were homeless? For your kids who were homeless?
How do they give equal amounts to ppl who didn’t pay a dime and let their homes be taken and others that paid for 16 yrs and grieve the loss every day?!?!?!
Years in counseling - and mourning - they weren’t homes that were stolen… They were where our children were brought home from the hospital… Where we planted flowers that somebody else now picks!
It’s something that nobody understands!!!!
I’m sorry for your loss!

Karen M.

Jan. 25, 2013, 4:58 p.m.


You’re not seeing the big picture because you fail to understand that even the “fine print” is a LIE.

We were ALL put into the subprime ponzi machine—-WHETHER WE AGREED TO IT OR NOT!!!

This needs to be Revolution 2.0—-because the government won’t help us—-and they are continuing to do “settlements” to COVER IT UP.


Jan. 25, 2013, 5:03 p.m.

Why not make a video documenting your whole unique experence with the foreclosure process? Step by step showing robo signed paperwork recorded at the Recorders Office. You can get the Illegal Documents used to Foreclose at the County Recorders Office where the property was located at. The Assignments, Notice of Default, Bill of Sale and all documents related to the property. Learn how to read these documents, you will be surpised at what the banks have gotten away with. Even if you have nothing else due to the banks breaking in and stealing everything including evidence of their crimes, there is always the County Recorders Office.
Everything regarding the property needs to be documented and organized. Do a Chronology from start to finish and.gather all correspondence with the bank , make copies of everything you have.  Someone needs to make a very powerful movie documenting these stories showing The Human Suffering caused from the Fraud and Corruption by the Banks, Government and Court system. If anyone has an idea for justice here, we are all in.


Jan. 25, 2013, 5:27 p.m.

@Nikki, @Karen,

I totally agree!  I apologize for the hints of sarcasm in my comment.  It definitely is a situation that we dont EVER recuperate from.  Not mention the financial destruction that has been brought upon us. 

I too have researched this since I found out that my family was being booted.  I also understand that our government is so corrupt right now that anything short of an political enema wouldnt change a thing! 

I am a police officer who was served the foreclosure papers by one of his closest friends who has barbequed on the deck that was being taken from me.  The embarrassment was horrendous.  You are exactly correct.  The very people who keep this country safe (both military and law enforcement) had no protectors and were just told, as usual, to sit back and take it.  THAT was the hardest part to swallow, the fact that you couldnt do anything to save it and no one would help.

We tried the frivolous modifications, lost more money making payment arrangements, false hopes from this president and the banks.  I normally get lied to on a regular basis, but to flat out be betrayed by the people and government that we are sworn to protect is unspeakable.  This was the worst crisis since the depression and the people who could have saved us, turned a blind eye when the swipe of a pen could have helped.

Make no mistake, I will never trust another bank and have told everyone I have spoken to that I will fight this to the grave.  If Im wrong, Im wrong and I would be less of a man if I didnt admit it.  BUT, if Im right and Ill fight for that forever.


Jan. 25, 2013, 5:47 p.m.

Seeing all these stories just like mine makes me sick…I have no words for these banks ls   I HOPE YOU ALL CAN SLEEP AT NIGHT! My dreams have been shattered…losing
my home because of mortgage fraud and can’t seem to understand why justice can’t be done against these banks….my kids ask me why we lost our home and I can’t answer that….what are we setting up are kids too? The truth is that we can’t trust our banks or government and We have worked so hard to move foward and I cant seem to find hope….Is there any help out there? What attorney is willing to step up and help? Lord be with us all…my prayers are always for justice! But I know that my God is a greater and he will defend us.


Jan. 25, 2013, 5:48 p.m.

Not at All… I believe that we who have gone through this… Or I should say… Will never stop going through this- can be angry- sarcastic- humorous- confused-... Whatever emotion that you find to be able to get the guts up to say what happened to you… Say it.


Jan. 25, 2013, 6:43 p.m.

Maybe Pro Publica can forward these comments to The White House


Jan. 25, 2013, 8:44 p.m.

Also, does it occur to us that we never CHOSE these “servicers” (BofA, Countrywide, Chase, WF, etc) but we are forced to do business with them? They never had OUR best interests at heart, they were only doing the work for the Fannies and Freddies etc. Every foreclosure they processed was a plus for them, as they accrued more profits through all the fees and interest and penalties. So in the first rounds of HAMP mods (2009-2011) they orchestrated denials.  They either wanted to delay or decline HAMP modifications, push homeowners into the predatory in-house mods or foreclose. And they LIE outright to make themselves look like they are helping YOU and you are the deadbeat.  Jeff, I am very sorry for your loss, it’s horrendous to think it can happen like that. I personally believe the non-judicial (strictly paperwork) process should be outlawed.


Jan. 29, 2013, 2:23 p.m.


You are NOT “wrong”.  This is the fight of our lives…and the truth is coming out—-slowly.  I don’t know what kind of restitution (if any) all the people who have been illegally foreclosed on will get…time will tell.  What happened to the housing and financing industry that crashed the economy was two words:


Aided and abeted by our government…THAT is why there have been no prosecutions of the “big boys”, and the reason they have decided to have the homeowner/borrowers take the fall.

Here is the BIG LIE that continues to be perpetuated:

People like AG Schniederman still keeps saying “toxic mortgages”—-what they WON’T say is “NO MORTGAGES”...they just keep calling them “toxic”.

MERS is a NON-FUNDING system.  That means that when they tell you your “loan” was POOLED into a “mortgage-backed” security—-IT IS A BLATANT LIE. No “loans” were pooled into anything.  THE TRUSTS ARE AND ALWAYS HAVE BEEN EMPTY.  They PRETENDED to pool “loans”...but you CANNOT “pool” COLLECTION RIGHTS. And that’s what the subprime was: collection rights…no funding—-except for a small amount of “cash out”, here and there.

So many people were making so much money—-taking money from investors for something that was REPRESENTED as a REAL INVESTMENT (MBS)—-but wasn’t—-and signing up borrowers into CONTRACTS that were REPRESENTED to be REAL, FUNDED LOANS…but they weren’t…PONZIS ALWAYS CRASH.

It’s called accounting fraud (among many other kinds of fraud).

Remember ENRON?

Dr Lan Pham was FIRED from the Congressional Budget Office when she started to question was was REALLY in these “mortgage-backed” securities…fired because she REFUSED to “go along to get along”, which is what she was asked to do.

Anyone who tries to show proof to the masses that no loans were ever transferred to these trusts that they are PRETENDING are somehow the “creditors” in the foreclosures are immediately shut up.

Lynn Syzmoniac comes to mind…they gave her 18 million in hush money.

I know someone with tons of information (from her own research for 8 years) about all this who has been to every single government agency, and guess what she is told: “Let it go.”

That’s our lovely government:

“Let the fraud go, people…let’s just keep covering it up, and re-boot the fraudulent system with new greedy investors—-just like it never happened…we’ll have a nation of renters, and “tent livers”, and homeless wanderers, and the rich will get richer…”


Feb. 5, 2013, 12:04 p.m.

I think at this point I have finally figured out just how BofA collapsed my life. Was I injured monetarily Yes I was how many jobs did I have to pass up to go to court over and over again. No one want to start a job asking for a day off right away. I fought this fight did everything BofA asked me to do and yet I am now still unemployed, I no longer have a home I spent 15 yrs owning & raised my child as a single mom.  Monetarily I can get over losing a home. I can’t get over the emotional scars,the mental stress and the physical that I still endure everyday. I am just SO angry!!! I can’t watch the news because it appears that every time I do some Bank executive is getting millions and no jail time. I was raised no one should get rewarded for bad behavior. Well. No one told the banks. I would have never been able to get through the BOGUS programs Hope/Hamp, Hardest hit without people on Propublica I was told early on to file a complaint in 09 with the OCC. I again sent the info for the IFR after sending my paperwork another 15 times,250.00 and more paperwork for the remediation, spending 4 hrs sitting in court. BofA and their shady law firm tacking   20k onto my principle I would have never paid off my home with them adding more and more with every piece of paper they touched. I lost a good 3 yrs of my life getting thrown around by BofA. I know people are angry with the banks and rightfully so 15 yrs, a 20k down payment, the only home my child had ever known the last place my mom was alive in a neighborhood and relationships that I built over almost 20 yrs Ruined by BofA. Hurt monetarily yes. But emotionally, and physically I lost so much more. Was I able to get help for the sick stomach, loss of sleep,extreme crying, depression, NO why because I had no job and therefore NO Ins. I do not watch the news because it appears every time I do some Bank exec is getting millions. What Injustice!! I could have used some therapy after many nights of feeling suicidal so my daughter could get the life insurance and save the home for herself. Where or how do I get all of the yrs of emotional strain, lost relationships etc.. back? Have I moved on as far as the house is concerned YES but my credit is ruined, my unemployment has run out and AGAIN I am getting screwed over by BofA giving every one the same amt of compensation no matter how much deeper their deceit went with me.Lost papers,bogus phone numbers,made up employees,ruined credit etc.. Give me back my life I can’t get the time back. But I can start over.


Feb. 5, 2013, 12:31 p.m.

Wow Adrianne , I can’t help but sit here and cry because its me.  The same thing. I’m sure many of us. Jeff and many others too!
    I wish my husband shared some of the hurt I feel over this every day- but he puts it away. I can’t. It hurts so much- how did they do this? And not just to us,  to our kids??? I wish I could send them pictures of my kids. One of them playing in the leaves, building a snowman… Waiting for Santa in their home in bed- and now- angry and mean. Untrusting and friendless because they got bullied when we moved and had no clothes because it was all in the home we lost.
Would they care?prob no.
..... I sent a report to the CFPB, and they are makin Wells Fargo investigate why they forclosed when I was paying my mortgage…. Hmmmm they say they disnt have all of my paperwork.  Really?!?! That’s funny!!!
Disgusting!!!! Ofcorse they are going to say that!!!!!
I can’t stop hurting, feeling responsible.  In the end- I’m a mother that disnt protect her kids.


Feb. 5, 2013, 1:06 p.m.

@AdriAnne & Nikki
I understand wholeheartedly what you are going through and it is nothing short of horrible. We were evicted after fighting for 3 years to stay in our home of 17 years when the bank fought us every step of the way and did not want to work with us because as we know they could make more money by foreclosing on us and also cover up the fact they don’t have the note. We had no money left (lawyers fees) no where to go. Credit was damaged beyond repair.
Anyway what I have learned through this is, don’t give these slimebags any of your energy because when you are angry and not working through it in a healthy way for you and your family you are extending your suffering which doesn’t help you and the banks could give a damn. I just read a quote “Its not what happens to you, but how you react to it that matters.” Everyone needs to find their own way. It is vital to stay strong Spiritually, Physically, Mentally and Emotionally for you.


Feb. 5, 2013, 1:29 p.m.

I teach Reiki and the only way I am getting through this for myself and my family is Yoga, Biking, Walking fast. Meditation (everyone has their own way, my husband plays his guitar as therapy) and Five Flower Essence formula (it helps to calm). Breathe in deeply on 7 and breathe out deeply on 7 until you are calm, it clears your head. We were evicted in 2011 and we are still trying to get through this trauma but we are doing better.


Feb. 5, 2013, 3:25 p.m.

Awww Marie- it’s so good to have your support. It’s difficult. So unbearable some days.  In my case- maybe not for many- but mine… It happened in 09. I had never heard of this happening to anybody else- for so long following. My husband did not believe that I I hadn’t dont something wrong. He said how can they really do this if you only paid it 3 days late?!?! In 23 yrs of marriage it was breakin me for my family to think I maybe actually lied or did something misleading. My mum died 5 weeks after and his family also felt I had to have done something…. This doesn’t just happen. I was truly alone.  Still every day for almost 4 yrs I keep my head up because I am honest and a very good person!
My girls got bullied and picked on at their new school. Tormented- at 12&14; you don’t fit in when you have nothing… It was all in our home and they looked as homeless as they now were. It all got put on me. They didn’t deserve what was handed to them. My then 12 yr old is ok- but the older one is severely depressed- and will not leave the house, or speak to ppl.
.... Last yr when the independant forclosure review came out- I wanted to shout it from the rooftops! Send it to my inlaws! My husband said- oh, I guess it wasn’t just us- oh well move on.  I want a sorry!!!!
It hurts so much that my daughter gives me the filthiest looks- I have said, at the end o your life… You may be lucky to have one or two people that stand and kneel with you- let them be your family.  She has so much hate, where there was so much love.
It shouldn’t matter where live to be a family, however when you raise your family to believe in complete trust and honesty and for years they don’t believe you… The person or entity that broke that trust should set it right.
  I always old them from toddler age… If you lie to me you will get in trouble… But of you tell me the truth- I will be upset, but I be ok. 
We need the truth


Feb. 6, 2013, 7:13 p.m.

I am so sorry you had to carry all this on your
shoulders all by yourself.
The problem here is ignorance and unfortunately there is still an abundance of it
even now. The website that helped me to understand the nature of Securitization of Mortgages (ponzie scheme) and also how the banks CEO’s pulled it off is: livinglieswordpress.
Check out Bill Moyers Journal PBS interview w/ William K. Black
author of “The Best Way To Rob A Bank Is to Own One”. It has also been helpful to share
all I have learned with family & friends who
otherwise would have remained Ignorant as most of the general public is. I also hope your daughter finds her way. Has she tried Art, music, or journaling. She sounds artistic.

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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.

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