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Ear to the Ground

Banks Can’t Be Bothered With Foreclosure Paperwork

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Posted on Sep 28, 2010
Flickr / Philippe Put (CC-BY-ND)

You know how financial institutions have a way of wielding fine print like a weapon? Well it turns out that when it comes to foreclosures, many of the nation’s lenders are either willfully ignoring procedure or are woefully incompetent at paperwork. Take your pick.

The Guardian’s Dean Baker has some choice words on the matter.

USA Today breaks down the procedure…

In many states, servicers must file a motion in court to take possession of a home in a foreclosure. To support their motion, a representative has to verify they’ve reviewed the supporting documents, checked who owns the mortgage note and had a notary public witness their signature.

...and the practice:

In one case, Erica Johnson-Seck, a vice president at OneWest, said she signed 750 foreclosure documents a week and didn’t read each document before signing it, according to a 2009 deposition obtained by Ice Legal. She also said they were signed without a notary present.

In a May 17 deposition, also taken by Ice Legal, Beth Cottrell, a supervisor at Chase Home Finance, a division of JPMorgan Chase, said she was among eight managers who signed off on about 18,000 foreclosure papers a month.

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By Barbara Ann Jackson, December 20, 2010 at 3:47 pm Link to this comment

Scores of homeowners do not contest foreclosures because:
1. They don’t have knowledge of the law in order to recognize which aspects of foreclosure are legally challengeable or even fraudulent.
2. Even those who identify wrongdoing, lack funds to pay for attorneys to represent them.
3. Homeowners are told to come to foreclosure auctions with money that they do not have, so they stay away from foreclosure auctions. 

**LAWYERS WHO FILE FORECLOSURES SHOULD BE INVESTIGATED http://chn.ge/eU2zAm

Homeowners are oblivious about sometimes “straw buyers” and sometimes lawyers in charge of foreclosures, obtaining illegal ownership of people’s homes, and pay literally nothing through “credit bids;” and that those recorded deeds from such auctions are Null!  For these very reasons, there needs to be a probe of lawyers who file foreclosures.
 
Also, the average lay person doesn’t know about legal requirements of “standing” that prevents their homes from being repossessed via non-existent lenders, or via lenders who have no ownership of promissory notes. 

Yet, courts are supposed to enforce “standing” and compliance with established laws!  Illegal, defective, fraudulent foreclosure causes useless deeds for property sales; title insurance denials –and more.

Further, after certain foreclosure auctions (via simulation) result in fraudulent –NOT lender acquisitions, by lawyers or straw buyers, the common scenario becomes property flipping, neighborhood blight, rodents, and so on!

*Sample of fraudulent foreclosure acts:

-Deliberately use defunct lenders, lenders without “standing” for false civil and bankruptcy foreclosure proceedings
-Create and conceal malpractice foreclosure delays and engineer billable litigation
-Orchestrate sham foreclosure auctions; property never acquired by lenders, but ‘straw buyers’
-Commit actionable wrongs (unfair debt collection, fraud, various torts) that create lawsuits
- Foreclosures naming defunct lenders, illegally recorded property deeds, flipping, blighted communities
-Unconscionably create false deficiency judgments against property owners after straw buyers acquire homes for pennies on the dollar
-Intentionally false Bankruptcy court “Motion to Lift” and “Proof of Claim” on behalf of non-existent lenders which conceals fact of a “non-secured” mortgage debt
-Involved in fraudulent collection of property damage insurance, as well as mortgage-default insurance
- Fraudulent foreclosures abet loss of property taxes to city revenue, and invites rodents, vagrants
- Thousands of families made unlawfully homeless from null foreclosure proceedings

Foreclosure lawyers are officers of the court.  Lawyers are required to know applicable laws and civil procedure.  This knowledge is not required of mortgage lenders, nor loan servicers.

*more @ Request for Congressional Foreclosure Panel to Examine Foreclosure Lawyers
http://www.change.org/petitions/view/request_for_congressional_foreclosure_panel_to_examine_foreclosure_lawyers#

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Napolean DoneHisPart's avatar

By Napolean DoneHisPart, October 6, 2010 at 7:06 am Link to this comment

Move your money from these shyster large Bankster banks to your local, community, privately ( locally ) owned bank or credit union.

Do not purchase goods or services from affiliated large corps like Wal, McD, Cosco, etc…. and support your local mom/pop, privately and locally owned providers of goods and services…

We can simply ignore dealing with these tricksters and sifters of the working man’s labor, wealth and efforts…

You choose where your money goes, and what you buy ( think of it like a vote…. and you vote NO to these who care nothing about you but what they can further sift from you, the blood suckers- vampires some call them ).

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By lawgrace, October 5, 2010 at 7:49 pm Link to this comment
(Unregistered commenter)

IMPORTANT FACTS ABOUT FORECLOSURE AND MORTGAGE FRAUD

Foreclosures via DECEPTIVE and FRAUDULENT PROCEEDINGS enables repetitive, and illegal property flipping; it enables lenders to falsify IRS form 1099-A’‘s; it enables unscrupulous foreclosure mill lawyers (especially because of judges who purposefully abet deceit) to deceptively hold auctions and make insider bids to acquire those properties; and blighted neighborhoods. Fraudulent foreclosures ensure the success of FABRICATED BANKRUPTCY COURT ‘Lift Stay motions’ and false ‘Proof of Claims’.

Foreclosure via fraud is the reason for illegitimate homelessness and underhanded evictions, unjustified IRS tax bills due to false 1099-A’s, and unfair “Deficiency Judgments.” Ironically, some people who express their anger at “deadbeats” appear to be more acceptable about the manifest fraud and criminal activity being carried out by people with credentials to practice law. Equally ironic is the reality that some people pretending to be annoyed about “deadbeats"are the actual people who are participating in real estate racketeering -fully sanctioned by the majority of courts, especially Bankruptcy Courts! *more @
http://www.lawgrace.org/2010/09/30/important-facts-about-foreclosure-and-mortgage-fraud/

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By Napolean DoneHisPart, September 29, 2010 at 9:44 am Link to this comment

“Capital must protect itself in every possible way, both by combination and legislation.  Debts must be collected, mortgages foreclosed as rapidly as possible.  When, through process of law, the common people lose their homes, they will become more docile and more easily governed through the strong arm of government applied by a central power of wealth under leading financiers.  These truths are well known among our principal men who are now engaged in forming an imperialism to govern the world.  By dividing the voter through the political party system, we can get them to expend their energies in fighting for questions of no importance.  It is thus by discreet action we can secure for ourselves that which has been so well planned and so successfully accomplished.” —American’s Banker Association, ABA’s website.

Learn more: http://SmartPeopleSmartMoney.com

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By Jim Yell, September 29, 2010 at 7:45 am Link to this comment
(Unregistered commenter)

As the Banks are breaking the laws and lying about the documents they present when they present any, why are these people not being arrrested? Why don’t the judges and prosecutors get aggressive with these law breakers.

Why indeed?

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By beeline, September 29, 2010 at 6:24 am Link to this comment

Unbelievable. Its a good job homes aren’t important in our lives or anything.

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By Thrashertm, September 28, 2010 at 7:28 pm Link to this comment

If banks can’t be bothered filing paperwork, then perhaps we shouldn’t be surprised when so many people stop paying their mortgage. When the government lets the banks get away with murder and then bails them out, is it any wonder that we continue to get bad behavior?

We help Americans find jobs and prosperity in Asia. Visit http://www.pathtoasia.com for details.

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By morongobill, September 28, 2010 at 7:17 pm Link to this comment

So now we know they are as incompetent collecting as they were in lending.

This sure explains how a man was foreclosed on in Florida, who didn’t even have a mortgage.

GIGO!

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