Posted on October 5, 2011 by Neil Garfield
EDITOR’S NOTE: The next step — compensating those who lost homes to pretender lenders. Who would have thought?It was already happening on a small scale as the price for the “cash for keys” program rose steadily and then dropped and then started increasing again. There the bank got a quick release and the keys from a cooperating homeowner that didn’t know or care that the home they were giving up was still theirs to keep.Now there are private deals being made all over the place by entrepreneurs who will help finance or assist homeowners in fighting off the bank or who will do their own cash for keys version where the entrepreneur pays the homeowner for a real signature on real documents, including a deed, assignment of rights etc. The homeowner usually gets to stay another couple of months for free in addition to the payment received (usually around $1,000-$5,000).Now the OCC is completing a process that has long been in the works — figuring out how to compensate victims of wrongful foreclosure.It all comes down to this: without the signature of the homeowners in the chain of title, there can be no “asset” on the books of the bank that is worth anything. And most homeowners have not signed anything —- yet. Nobody can buy anything and get clear title where there is a claim of securitization and the original homeowners in that chain have not released their rights or, better yet, signed a quitclaim deed.Livinglies and the American Homeowners Cooperative is preparing to launch two programs directed at providing compensation to victims of wrongful foreclosure transferring the risk of the fight with the banks to entities better financed and better resourced than any individual homeowner.My opinion? Stand and fight. The equity in your home might be, and probably is equal to its value — because there is no valid mortgage against it. The obligation you signed for is probably unsecured and probably paid in full already by the exotic maneuvering of Wall Street bankers, who want to keep the money AND take your house. When somebody on Wall Street makes a lot of money making a “smart” move, everyone applauds even though he didn’t really work for it. I’d say homeowners’ smart move is to stay and fight. If you win, you get the house free and clear or something close to that. If you lose, you don’t seem to be any the worse for wear. Let the Bankers feel what it is like to be under water.Check with a licensed attorney before acting on anything you read on this blog.
October 4, 2011
Review of Foreclosure Mistakes Is Set By OCC
Millions of current and former homeowners will have a chance to get their foreclosure cases examined to determine whether they should be compensated for banks’ mistakes, under a wide-ranging review being planned by federal regulators.
The review process, which could be unveiled in the next few weeks, will be open to borrowers who were in some stage of foreclosure in 2009 or 2010. Estimates prepared by the Office of the Comptroller of the Currency, which will oversee the review, indicate that 4.5 million borrowers could be eligible for review.
John Walsh, acting head of the OCC, unveiled some aspects of the plan in a speech last month to banking executives, when he said the agency was exploring “the best means of ensuring that injured homeowners had the opportunity to seek relief,” when they were harmed by lender improprieties.
The process will include a broad public-outreach campaign, including direct mail to eligible borrowers and a single website and toll-free number. The reviews will be conducted by independent third-party companies that were hired earlier this year by 14 banks that signed consent orders in April with the OCC and the Federal Reserve. The regulators had to sign off on the selection of these companies.
“It’s a substantial undertaking at great expense to the banks,” said Tim Rood, a partner at Collingwood Group, a housing-finance consulting firm.
Filed under: bubble, CDO, CORRUPTION, currency, Eviction, foreclosure, GTC | Honor, Investor,Mortgage, securities fraud Tagged: | bankruptcy, borrower, countrywide, disclosure,foreclosure, foreclosure defense, FORECLOSURE ERRORS, FORECLOSURE MISTAKES,foreclosure offense, foreclosures, fraud, LOAN MODIFICATION, modification, OCC, OCC REVIEW, Office of the Comptroller of the Currency, quiet title, rescission, RESPA, securitization,TILA audit, trustee, WEISBAND
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