Foreclosures Bungle Could Hit US Banks

[Purveyor]

Source: AFP

NEW YORK — Already fragile US financial firms are facing a raft of law suits and potential fines after three major mortgage lenders admitted to mishandling thousands of home foreclosures.

Major mortgage lenders Bank of American, JPMorgan Chase and GMAC have in recent days announced they were suspending tens of thousands of foreclosure processes across the country due to apparent improper handling of documents.

Attorney generals in six states are already investigating claims by borrowers that lenders have committed errors in the foreclosure documentations.

--SNIP
Documentation problems "are in all probability" likely to exist in 80 percent of them, according to Richard Kessler, an attorney that heads a company dealing with foreclosures.

The influx of hundreds of thousands of foreclosures led lending institutions to employ people who processed the paperwork as quickly as possible in order to put the property on the market in what has become known as "robo-signing".

Read more: http://www.google.com/hostednews/afp/article/ALeqM5h8hNOR64QAjHgo--Q78dyfGRlHng?docId=CNG.1a0784e21aac121c81b2ba1901011321.e1

[marmar]

1. Cue the orchestra.....

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[Merlot]

2. This is REALLY what they mean by "trickle down" economics

Banks screw up, people get screwed. Banks in a big mess, people bail them out. Somehow it's the problems that trickle down, and the profits that trickle up.

[formercia]

3. Got that right....

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[Ruby the Liberal]

4. Lemme guess. Congress will step in during the lame duck session

and bail out the banks while taking the homeowners to the IRS woodshed for their "gains".

[Tansy_Gold]

5. It pisses me off. . . .

. . . . that there are likely to be instances where people gamed the system and will walk away with homes they never paid for.

It pisses me off that there are likely to be instances where people who could never possibly have afforded the homes they bought, who fell for the brokers' lies and schemes, and sank everything into their homes have already lost everything and it's too late to recoup.

It pisses me off that a lot of people worked hard and put everything they had into their homes, never got the "lucky" break, and are looked down on by those who do.

It pisses me off that the outfits who did nothing but push paper -- the mortgage brokers, the title companies, etc. -- made their money by the fistfuls and don't give a shit what happens to the people afterward.


I damn near lost my home because of errors I had already caught in the paperwork. The property was paid for, should have been free and clear, but the title company fucked up even AFTER I pointed out their mistakes. Over and over and over, I tried to get them to correct the errors, until finally, with just two days remaining before I'd have been declared in default on a mortgage that was less than 10% of the purchase price to begin with AND was paid in full -- then, they finally admitted they'd made mistakes.

All of this pisses me off, but NOTHING will piss me off more than if the banks get bailed out for their own stupid greed AGAIN.

Tansy Gold, free and clear

[truedelphi]

8. What a tale. Glad you had the determination to stick in there and

To clear it up.

Meanwhile the people in Ireland are rejoicing because the government there Bailed out the Big Financial Firms, but only on condition that the money for the toxic assets also got applied to the people sitting and living in those toxic assets.

If only we were smart enough to have decent politicians like the Irish have.

[earcandle]

22. Tansy.. I hear you and its good you were saved... but keep an eye on that attitude going into your

biology...  it can hurt you, anger can.  It is a double-edged
sword. 
I'm no better, and I get really pissed too, but maybe we can
help each other out as a witness.

[Tansy_Gold]

24. I'm sorry, but I prefer anger to complacency.

Complacent people don't effect a whole lot of change.




TG, NTY

[AnneD]

41. Nothing better...

than a hissy bitch fit. And sometimes it works. I can throw a beaut when I have to.

I never heard that story before Tansy. Glad you read every line too. You have to these days.

[femrap]

28. May

Goddess/God bless you with anger,
At injustice, oppression, and exploitation of people,
So that you may work for justice, freedom, and peace.

Anger can only hurt oneself if it does not find an outlet...and then it turns inward and can result in depression.

Go Tansy! Use that anger to make the world a better place.

[earcandle]

35. Just stay out of the way of the Dinosaurs as they go down. They don't care who or what they destroy

[femrap]

36. huh? are you Tansy?

or just another dinosaur....

[earcandle]

40. Obviously, I am neither... but I touched something in you to ask, huh?

[femrap]

42. Huh? meant I have

no idea of what you speak...but feel free to touch yourself.

Have a nice evening.

[earcandle]

46. You too! After all this is America!

[depakid]

44. Why do you care that some gets a boon becasue a sophisticate bank make a stupid mistake?

These same institutions will rip anyone and everyone off and take advantage of fine print buried deep in the documents to do it.

Now it appears that by trying to cut corners and greedily save a few bucks, they've managed to screw themselves.

How is that something to get angry about?

:shrug:

[timefortherevolution]

6. Its only a mistake when they get caught....

Up until they do get caught, its company policy.

BANK OF AMERICA are EEEEVVIIILLL sociopaths!
The fact that MY TAX DOLLARS fed that beast has me crazy!

[wundermaus]

7. Sometimes... just sometimes the knife of justice custs both ways.

and the slices are to the bone.

[Aristophrenia]

9. Grayson - well done.

[MannyGoldstein]

17. I hope he runs for President

We need a leader who fights for non-bankers.

[chervilant]

10. hmph!!

Even in this 'hint' of a disclosure, they misrepresent the extent of this crisis! Plus, does anyone know anything about the mortgage-backed CDOs?!

Mortgage lenders were pushing through record numbers of loans with limited administrative staff, and virtually no protocols for tracking these mortgages that they were 'packaging' on the back end so they could rake in millions of dollars a day on their vaunted 'risk-free' CDOs.

There isn't a hell hot enough for these vile hedonists.

[lib2DaBone]

12. Mr. Obama should have called a moratorium on foreclosures...

.. there is no need to throw millions of American families into the streets.

That being said, the $4 quadrillion worth of OTC derivatives that are floating around out there (with absolutely no money behind them) are like ticking time bombs.

The Feds are out of bullets, gold is $1300 an ounce and Mr. Obama should have sided with the people instead of Wall Street.. (just my humble opinion).

It could all go boom.. unless they try something like ramping up the WOT or the war in Pakistan.... or issuing travel alerts to Europe for "terror" ....

[chervilant]

14. hmm...

"Could" all go boom? I think you need an active verb in that assertion.

We are witnessing a catastrophic fulmination after years of hedonism and deceit. And, while I can safely say that I have never been a 'good capitalist,' that's an empty boast considering that I, like all of the rest of the hoi polloi, will have to suffer the consequences nonetheless.

[femrap]

29. I still think the banks

are insolvent...they can't clean up these toxic assets.

The system is being held together w/ band-aids and a second QE (quantitative easing) is not going to help.

WASF.

[HoraceX]

38. Foreclosures are needed.

Housing prices are still inflated. The air needs to be let out of the balloon.

CDOs aren't necessarily bad. Well regulated, CDOs mean more liquidity and lower interest rates.

[chervilant]

45. Are you in the banking business?

Or do you just snarf their red herrings?

The key phrase in your indefensible post is "well regulated." The financial sector is no longer "well regulated," by design, and to suggest that CDOs 'aren't necessarily bad' is like saying 'cancer doesn't always kill you.'

[defendandprotect]

11. The bad guys might actually be held accountable .... ???

[DeSwiss]

13. I suppose when they tell us we have to bail them out for this.....

...it'll be because they're either too stupid or too lazy to fail.

- K&R

[Aristophrenia]

15. Gold!

Too fat to fail.

[G_j]

16. Bungle??

:rofl:

[hayu_lol]

19. Citibank and Wells Fargo are part of the biggies caught...

up in their own mindlessness.

Hasn't been that long since Silverado and Neil Bush, among others in the S&L mess that WE bailed out.

Make them fail.

[TheWatcher]

25. You can add that as another Propaganda Buzzword.

Along with "Robust", "Unexpected", etc.

[YOY]

27. Quote unquote!

n/t

[gratuitous]

32. Bartcop's first rule of "errors"

When someone makes a "mistake" that puts more money into his pocket, expect to see them make that same "mistake" again and again. Anyone caught in this unholy mess is going to have to fight like hell to extract themselves, because the rewards for the Big Money Boyz are just too great for them to let go easily.

[ms.smiler]

18. I’ll call it what it is – fraud, plain and simple not “errors.”

Both Mortgage Electronic Registration Systems and the President of the Florida Bankers Association have admitted that original Promissory Notes were destroyed.

I was never notified that my mortgage Note was destroyed. Anyone else get a notice? Anyone?

If Promissory Notes were destroyed, what kind of Note is being used in foreclosure cases?

Since modern mortgages have a Promissory Note made payable to one company and the mortgage has MERS as mortgagee, how is the mortgage valid and not split from the Note the moment it is signed?

I believe four State Supreme Courts have now ruled that MERS is not a mortgagee. Where does MERS find the authority then to make Assignments of Mortgage if they are not the mortgagee? Since MERS appears nowhere on Promissory Notes, where do they derive the authority to transfer any Notes?

Here’s another good question. Promissory Notes were sold off on Wall Street, sliced and diced and securitized. If the liens were never perfected at the Recorder of Deeds office, how did those securities ever contain anything of value? Wouldn’t that be securities fraud?

Since there are two sets of books now on Promissory Notes, one on Wall Street and the other on Main Street, how can any mortgage servicer review just the accounting on the Main Street side and declare a default?

Of course these banks are reduced to using robo-signers for Affidavits. How long could it possibly take to review fraudulent documents to make certain they are correct?

[Scruffy1]

20. Well put

Our whole banking system has become nothing but a giant fraud.

[earth mom]

30. Yep, the banksters and their banks are nothing but a bunch of gansters.

:grr:

[No Elephants]

34. Ask to see your original signature on a note. I don't think anyone is obliged to notify you

if your note is destroyed.

[ms.smiler]

37. The Note is an important point to me.

The President of the Florida’s Banker Association explained to the Florida Supreme Court that original Notes were destroyed because they didn’t want to incur the cost of storing them. Right, I know I destroy all my important documents rather than store them, don’t you?

A problem arises though because many states require the original Note in order to legally foreclosure. It’s understandable that many copies could exist of a Promissory Note but only the Note owner would have the original.

Homeowner’s weren’t notified though that their original Note was destroyed. If they were, and they ever faced foreclosure, they would know that any Note presented in the case was a copy and fraudulent.

In the next County a woman is being simultaneously foreclosed by two companies. I will bet you that neither company has the original Note. So who created those two supposedly valid, supposedly original Notes?

Our banking system has fraud in it from loan origination to foreclosure. Our corporate owned media is content though to frame these issues as “technicalities” when in fact our banks are committing massive fraud upon our courts.

An American is supposed to lose their home to a company that is content to commit fraud upon the court because that is preferable to paying for document storage?

[grahamhgreen]

21. Please! Prosecute these people! nt

[lovuian]

23. Yes when do we PROSECUTE THIS FRAUD

which cost the American people Trillions

[Zanzobar]

26. Attorney generals?

My mother is rolling in her grave, and she's still alive!

[TexasObserver]

31. recommend

[davidwparker]

33. ...

Get 'em.

[Devil_Fish]

39. So, if some one manages to fully pay their morgage, how to they get the deed to the property?NT

[entanglement]

43. In their infinite, insatiable greed, the b*stards didn't stop to think about the paperwork