ARE YOU A VICTIM OF WELLS FARGO'S PAIN?: AMERICANS HAVE NO IDEA JUST HOW SCREWED WE REALLY ARE

Wednesday, September 21, 2011

AMERICANS HAVE NO IDEA JUST HOW SCREWED WE REALLY ARE

Just Because You Are Not In Foreclosure Doesn’t Mean You Are not in Trouble

Posted on September 21, 2011 by Neil Garfield

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As is usually the case in American politics, homeowners have been divided into groups and then pit against each other. There are plenty of people who have not stopped paying on their mortgage, but they are still in trouble for the same reasons that others are in foreclosure. It is the commonality of interests of homeowners that is preventing them from presenting a single unified voice demanding reform. And it is the persistent view that opposing the current wave of foreclosures is in some way attacking the basic myth of personal responsibility as an American credo.

The entire country was victimized by the Banks in their mortgage madness and there is no mileage in blaming borrowers for bad mortgages designed by experts who knew exactly what they were doing. The whole scheme depended upon false inflated land values and bank control over the appraisers, underwriting procedures and mortgages terms. In a thirty year period the types of loans available mushroomed from 4-5 to more than 400 different variations of loan templates, [n]one of which could be understood by even Alan Greenspan, former head of the Federal Reserve (by his own admission).

The obvious correction back to true land values has left homeowners without any equity after they were hounded by hard-sell sales pitches to “use” the equity in their homes to fund other things. Besides the obvious wrong foundation of this pitch, it was based upon equity that did not exist but people were lured into the trap because the appraisal came in at $20,000 more than the amount on the contract, and the “bank” approved it. what the borrower did not know was that the appraiser was told the number that was needed, and it was made abundantly clear that they would never see any business if they didn’t tow the line and appraise the property at the figure given to them by the mortgage originators.

Now there are millions of homeowners are so far underwater that they will most likely never get out from under the crushing debt that was manufactured by mortgage originators who had no risk in the deal because they were using their own money to fund the loan. The reliance of the borrowers on these “lenders” was misplaced. They were pretender lenders and their approval of the dal was not a sign that experts had looked at he loan and deemed it a viable transaction, it was simply a ruse in which the mortgage originator was playing part and getting paid for it.

Today, after nearly 100 million mortgage transactions, and a nearly complete absence of proper paperwork, it is now apparent that mortgages were refinanced, houses were sold, and new homes were bought using this faulty paperwork, leaving a trail of corrupted title that cannot be corrected except on a case by case basis. The modification applications in which the applicant signs away rights to contest the paperwork doesn’t cure title although it might protect the bank from damage claims.

The message is clear. With few exceptions, most transactions over the past 10+ years do not present clear title, marketable title or even curable title. Anyone who has done a transaction during that period will find out in the years to come that the deal they did is not over and they may well find themselves in court without understanding of why they are there. When it comes time to move on, sell the house and buy another, the whole problem starts over again even if you never missed payment and never went through foreclosure. And if you bought a foreclosed home, there is good chance that the title is fatally defective. Check with your lawyer before you sign anything because you might be signing onto liability you never guessed existed.

Filed under: bubble, CDO, CORRUPTION, currency, Eviction, foreclosure, GTC | Honor, Investor,Mortgage, securities fraud Tagged: | bankruptcy, borrower, countrywide, disclosure,foreclosure, foreclosure defense, foreclosure offense, foreclosures, fraud, LOAN MODIFICATION, modification, quiet title, rescission, RESPA, securitization, TILA audit, trustee,WEISBAND

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38 Responses

Steve, on September 21, 2011 at 1:33 pm said:
The live protest on Wall street.
http://www.livestream.com/globalrevolution
tnharry, on September 21, 2011 at 1:31 pm said:
I would agree. Barnes does seem effective, but he requires local counsel with whom to associate. finding the local counsel is his problem though, not yours
Tim, on September 21, 2011 at 1:27 pm said:
@ JOANNE
Here is a possibility, I’ve heard good things…
Jeff Barnes
Foreclosure Defense Nationwide
Let me know
tnharry, on September 21, 2011 at 1:15 pm said:
@carie – please share this physical proof. the last i heard it was still contained in the proprietary database with the lender
tnharry, on September 21, 2011 at 1:14 pm said:
thank you e tolle. although a lot of people around this area believe he hailed from Tuscaloosa and wore a lot of houndstooth…
Tim, on September 21, 2011 at 1:13 pm said:
@ Joanne
Without an attorney that has real verifiably experience it will be tuff. I wish I could say that going it pro se would work but the law is very complicated and the banks and debt collectors have presumption on their side.
Send out your letters and make a bunch of appointments with BK attorneys and tell them you want the debt proven.
Good luck
tnharry, on September 21, 2011 at 1:10 pm said:
@joane – that’s interesting. the only one of those statements that makes any kind of sense is the first one, and it’s so over simplified as to be almost wrong in itself.
Joane, on September 21, 2011 at 1:08 pm said:
I have talked to 3 different attorneys here in OK and I was even more confused. The first attorney said that it was the “note” that was enforceable and that whoever had a copy of it was the owner! Second attorney was a BK attorney and said that I would have to sign a document saying that the Title to the property was clear and that I owed the money to the Servicer! The third attorney said he usually represented banks but said he would try to help. (yikes!) The reason I like this site is that even tho there are differences of opinion, there is also a group concern for one another. There is an underlying trust here that I think we all feel. We have all been lied to and beaten down so much by so many, that I think we need to know things are genuine here.
Thats why I like it, and thats why I sincerely appreciate the knowledge and opinions I have gotten from everyone. What a generous act it is for so many of you to take time out of your own lives to sit down and give your thoughts, info, experience and advise to a complete stranger. I am grateful.
tnharry, on September 21, 2011 at 1:05 pm said:
and by “qualified” i in no way mean to suggest they are ignorant or otherwise uninformed. but does Tim maintain professional liability coverage to insure against errors and omissions?
tnharry, on September 21, 2011 at 1:03 pm said:
carie – that’s simply not true and surely you know it. the majority of mortgage loans out there are not subprime. if subprime was in the majority, then by definition they would be prime.
dw, on September 21, 2011 at 1:03 pm said:
Sorry for the double post, I was on the phone and distracted, here is the cleaned up post. Ignore the post just previous to this post.
Neil,
This is a bit off topic for your post here but I was researching this issue and wanted to get your view. I hold an MBS in quantitative finance and accounting and help friends with research in this area, specifically as related to structured finance.
Many of your blogs note that PSAs generally require servicers to advance P&I payments to lenders in connection with defaulted loans. Subsequently, it is maintained that such loans are technically not in default.
As I researched the issue I noted Florida courts have held (at the DCA level) that the collateral source rule applies to contracts as well as torts. If that is the case, does a servicer’s advance of payments on a defaulted loan fall under the collateral source doctrine? Alternatively, and if collateral source applies with respect to mortgage insurance and servicer payments under PSAs, do payments by servicers of P&I cure the default such that the cure is fatal to disallowing credits for advances under the collateral source doctrine?
carie, on September 21, 2011 at 1:03 pm said:
…and it’s NOT a “theory”—it’s FACT. ANONYMOUS has the physical proof.
tnharry, on September 21, 2011 at 1:01 pm said:
the frequent commenters here are more informed than the vast majority of attorneys I’ll grant you. with that said, go get a litigator to be your co-counsel. if you know your case, you can explain it to the attorney, and they can use their skills and knowledge to present the case. it’s not a terribly unusual idea. in every single attorney client relationship the client knows the specifics of their case more intimately than their attorney does.
is the attorney who “gets it” more of an issue of finances or the attorney’s knowledge base? because the 2nd can be learned and/or taught by you
carie, on September 21, 2011 at 1:01 pm said:
Subprime/alt a purchase and refinance were MOST of the fake “loans”…
dw, on September 21, 2011 at 12:58 pm said:
Neil,
This is a bit off topic for your post here but I was researching this issue and wanted to get your view. I hold an MBS in quantitative finance and accounting and help friends with research in this area, specifically as related to structured finance.
Many of your blogs note that PSAs generally require servicers to advance P&I payments to lenders where in connection with defaulted loans. Subsequently, it is maintained by you and others that such loans are technically not in default.
As I researched the issue I note that Florida courts have held at the DCA level that the collateral source rule applies to contracts as well as torts. If that is the case, does a servicer’s advance of payments on a defaulted loan fall under the collateral source doctrine? Alternatively, and if collateral source applies with respect to mortgage insurance and servicer payments under PSAs, do payments by servicers of P&I cure the default such that the cure is fatal to disallowing credits for advances under the collateral source doctrine?
carie, on September 21, 2011 at 12:57 pm said:
tnharry—the people who are supposedly “qualified” to give advice are in denial about the truth—and we are out of time—attorneys aren’t helping people keep their homes—what the hell are we supposed to do??? Wait until they “get it??? We should be able to use the FDCPA and TILA to help us—why aren’t attorneys doing that???
tnharry, on September 21, 2011 at 12:56 pm said:
@carie – why do you keep trying to apply your subprime theory to ALL loans? as angry as you guys got at Pat and Enraged, surely you have to agree that the methodology of the argument is flawed. by constantly arguing the broad generalities you leave yourself open to attack. that was my point earlier in the week when I said you’re missing the trees for the forest…facts do matter
E. Tolle, on September 21, 2011 at 12:54 pm said:
GOD has spoken. Who would have thought GOD hailed from Tennessee?
carie, on September 21, 2011 at 12:53 pm said:
“…originators who had no risk in the deal because they were using their own money to fund the loan. ”
No “funding” Neil—no “mortgages”…remember?
False default—cash out receivables securitzed…remember?
Debt collectors stealing houses…remember?
Guess you don’t remember…sigh.
Joane, on September 21, 2011 at 12:52 pm said:
I am in Oklahoma. I do not have any problems filing a BK if it will save my house. It’s hard to find a lawyer here that “gets It”. I was reading this morning that lawyers are going to start coming to Oklahoma because of the need to help out here! Hope so.
tnharry, on September 21, 2011 at 12:49 pm said:
and if the W9 was a necessary step in the mod and joane follows Tim’s advice and refuses to send it, what then? the W9 is pretty harmless and doesn’t validate anything. joane – why do you keep soliciting advice from people not qualified to give it?
Joane, on September 21, 2011 at 12:48 pm said:
Thank you Tim:) Good Info! I have a Dispute of Debt letter and a QWR typed up. Should I send them both out? They got my loan the middle of July, nothing has been recorded since original mortgage in 2005.
E. Tolle, on September 21, 2011 at 12:47 pm said:
BAC is down nearly 5% as of this post. This would mean that Buffet’s $5 billion is toast or nearly so, unless of course his good buddy Barack comes to his rescue. Buffet may just change his mind about ponying up more on his tax return. I wish them all insolvency and foreclosure, followed by destitution. So sue me.
Tim, on September 21, 2011 at 12:45 pm said:
@ Joane
Keep this in mind, you dont have to be insolvent to file a BK 13 case and it will put your past due amounts into a payment plan to save your house. Also here is the big help…. a good litigating BK attorney can force this debt collector to prove up claim.
What state are you in?
Joane, on September 21, 2011 at 12:45 pm said:
Thank you Tim:) Good Info! I have a Dispute of Debt letter and a QWR typed up. Should I send them both out?
Tim, on September 21, 2011 at 12:27 pm said:
@ Joane,
It looks to me as you have been denied your mod and your loan has been sold to a debt collector at a discount. They are trying to get you to validate the debt.
Research how to, and demand that they prove ownership.
Also, once a mortgage is sold during default the new servicer is a debt collector bound by federal collection law including TILA that states the sale must be recorded.
Joane, on September 21, 2011 at 12:16 pm said:
Thank you Tim. Wonder why they sent it?
SWARM the BANKS, on September 21, 2011 at 12:16 pm said:
The parallel issue that did not get addressed is the that people with home equity in their home, even if they have plenty of home equity in their home, may not be allowed access to it if they are unemployed.
In terms of divide and conquer, because so much attention is being paid to people who are underwater, those underwater don’t care much that someone with equity could lose it all because they are unemployed.
And that is another dividing line that is preventing a coalition among homeowners to form.
Bill McAuliffe, on September 21, 2011 at 12:12 pm said:
Recontrust, (BAC Home Loans Servicing) created their own title Company, several other related subsidiaries, and their own Real Estate Company!
Tim, on September 21, 2011 at 12:11 pm said:
@ Joana,
Don’t supply anything to a debt collector.
Joane, on September 21, 2011 at 12:04 pm said:
Oh, sorry, I forgot to add: the form they sent was already filled out with the Social Security # on it. I guess they just want a signature?
Joane, on September 21, 2011 at 12:02 pm said:
My loan was transferred to a new servicer right in the middle of a loan mod. Today I got a W-9 form, (Request for Taxpayer Identification Number and Certification) from the new servicer. Why would they want this? I was 3 months behind when my loan was transferred to them, now I am 6 months behind. Should I fill the form out for them? Thanks All
Ann, on September 21, 2011 at 11:51 am said:
Bank of America-ReconTrust to Face State Court Judicial Process in Illegal Homeowner Foreclosures
by Morgan Skinner
Published – 09/20/11 – 07:29 AM | 0 | 3 | |
(Salt Lake City, UT) – St. George attorney John Christian Barlow, representing homeowners who have lost their home to the Bank of America’s (NYSE: “BAC”) foreclosure machine ReconTrust, may have finally achieved a measure of success in the battle of Utah homeowners against ReconTrust’s illegal foreclosures.
Federal Judge Clark Waddoups Thursday returned to Utah Fifth District Court in St. George a case in which ReconTrust was named as a third-party in the complaint claiming immunity under the National Bank Act in an unlawful detainer action. (ORDER and MEMORANDUM DECISION)
Attorney Barlow explains the legal steps taken to help Utah homeowners protect their rights under State statutes in this exclusive interview with KCSG News.
http://www.kcsg.com/view/full_story/15588516/article-Bank-of-America-ReconTrust-to-Face-State-Court-Judicial-Process-in-Illegal-Homeowner-Foreclosures-?instance=home_first_stories
tnharry, on September 21, 2011 at 11:49 am said:
@bytheway – i’ve seen the same oblique references by Neil to title insurors denying coverage but haven’t seen anything other than his references to whispers in the hallways. i deal with two of the major companies on a regular basis and it’s business as usual. no news from local land title organizations either…
you really don’t have to pump up Neil – everyone knows he has some good information. but all of his pieces don’t have to be home runs. this one, for instance, is especially odd as an example of “the truth and reality of the situation” since it contains no real facts – it’s an editorial, an opinion piece. the fact that you clearly agree with it and believe it (and I’m not saying I don’t before you start arguing) doesn’t make it truth or reality. it’s still opinion
bytheway, on September 21, 2011 at 11:29 am said:
tnharry- also there are some companies declaring they will not write title insurance on secrutized loans.Reality!
bytheway, on September 21, 2011 at 11:27 am said:
tnharry
the truth and reality of the situation is not a fear tactic. Neil is and has been ahead of the curve on all of this for years!
tnharry, on September 21, 2011 at 11:10 am said:
and that’s why we have title insurance…the situation is dire enough without playing up the fear tactics
angry&NOT TAKING IT!, on September 21, 2011 at 11:10 am said:
as the home prices fall & homeowners are removed 1 at a time,the title co/ servicers / investment banks with create the nation of renters
built on debt collectors at the controls.!
the general public is not in a good position “unless bent over” is the pov from the $ interstes.