Foreclosure Fraud Scandal Heats Up

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Wednesday, October 06, 2010 at 3:54 pm

Soon, I’ll be up with a piece looking more closely at the foreclosure fraud scandal engulfing the country. But for those not following carefully, here’s a recap.

Last month, Ally Financial, formerly known as GMAC, suspended evictions in 23 states after revealing that employees had submitted faulty affidavits when foreclosing on some unknown number of homes. In those 23 states, the bank needs a judge’s approval to foreclose, and submits affidavits to get it. (Affidavits are sworn statements, so false ones constitute perjury or fraud.) This month, Bank of America and J.P. Morgan Chase also suspended evictions in these states after revelations about robo-signers — employees rubber-stamping thousands of foreclosure documents, without checking the information — and false evictions came to light.

Now, state governments are enacting moratoriums and politicians are castigating banks for failing to follow through on their legal work, forcing families out of their homes without following due process. This week, Rep. Nancy Pelosi (D-Calif.) and other Democrats wrote Attorney General Eric Holder, requesting that the Justice Department investigate the systemic problems.

The scandal has made clear that paperwork in the housing bust has proven just as shoddy as during the housing boom. The banks are just acting illegally. Check out this video of a woman who thought a burglar was breaking into her house. It was the bank, coming to change the locks. Even though she still lived there.

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LALawyer
Comment posted October 6, 2010 @ 11:08 pm

I am a foreclosure and bankruptcy litigator in Los Angeles, CA, and have been dealing with these fake assignments and notarial acknowledgements since the beginning of the real estate bust here. Nearly all of the media coverage so far has focused on the superficial issues of robo-signers and the industry spin of “sloppy” paperwork. Do not mistake this for anything other than what it is. This is a systematic rape of our judicial and land recording systems by those in the boardrooms of these banking entities. FOCUS ON THE WHY. Why are they so willing to commit fraud and perjury? Because the alternative would be much worse to the bottom line. The mortgages were never properly conveyed into the securitized trusts who claim to own them. They own nothing. This is what necessitated this widespread fraud. The trusts are nothing more than empty sacks. Trillions of dollars of mortgages that were supposed to be conveyed into those trusts never made it. Why? Greed, that's why. So they could save a few bucks in recording fees. Please do everyone a favor. Stop talking about robo-signers. They were only following orders. Follow the story up the chain of command. See where it leads you. You will be utterly disgusted.


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Barbara Ann Jackson
Comment posted October 7, 2010 @ 3:31 am

I paid my NON-SUBPRIME mortgage for 7 seven years prior to marriage. When a foreclosure mill lawyer fraudulently foreclosed via a defunct lender’s identity, the courts castigated me for not cooperating with frauds being perpetrated upon me, as the foreclosure lawyer foreclosed by using a defunct lender’s identity, and filed Bankruptcy court “lift stay” motions and “proof of claim” documents under Wells Fargo’s name.

Years later, still using the non-existent lender’s identity, a ‘simulated’ auction (in my absence) took place and an inside bid was made –even with a federal court Affidavit from the “SUCCESSOR” mortgage company. The foreclosure lawyer had the property deed recorded into the name of the non-existent lender; and months later, the newspaper showed Freddie Mac as paying the non-existent lender over 86,000. Also, Wells Fargo filed a false IRS form 1099-A. I did not find out Wells Fargo had gotten in on the act until I received an IRS tax bill.

It is not simply loss of my home that ‘eats my lunch’, it is such things as horrible, horrible YEARS of judicial abuses, invasions of privacy, danger for my safety, blackballed from LAW employment, and other reprisals to which I am yet subjected due to APPALLING LAND GRAB racketeering (AKA) foreclosure. It is similar appalling injustices of which I know have happened to other people, merely because they lawfully sought their rights to DUE PROCESS OF LAW. Simply put, I WANT MY LIFE BACK. *http://www.lawgrace.org/2010/09/30/important-facts-about-foreclosure-and-mortgage-fraud/


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[...] Last week, Bank of America announced it was freezing foreclosures in 23 states over allegations of wrongdoing. JPMorgan, the bank involved in the alleged Florida break-in, quickly followed suit, suspending foreclosures in the same 23 states. Ally Financial, formerly known as GMAC, did the same last month. [...]


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LALawyer
Comment posted October 7, 2010 @ 7:24 pm

The recent disclosures are a golden opportunity for the foreclosure defense bar to be vindicated in the courts. We've been screaming from the top of the mountain for years about the widespread use of fraudulent documents being used by foreclosure mills to steal real homes belonging to real people. Sadly, the judiciary is late to the party, as usual. They just had too many cases, too many crazies in court, and too little courage to really do what is right. Many of these foreclosures will be challenged, as I believe the courts will listen to these cases with a different mindset. Eventually, banks will have to do what many have been saying is in everyone's best interest for years: principal writedowns to market value or below. Either they write it down themselves, or there will be a legislative fix through BK court.


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Ron Williams
Comment posted December 1, 2010 @ 1:58 am

I am the pro se Plaintiff in Williams vs. JP Morgan Chase Bank et al., 2:10-CV-00118-PMP, USDC Nev being appealed under Case No. 10-16102. The Records are available under the numbers through PACER. Cutting to the chase, (pardon the pun) Chase Bank and its attorneys who are also named as defendants, generated six false and fraudulent documents in a effort to institute a fraudulent foreclosure. We were served on October 21, 2009 the foreclosure notice. However, up to this point, Chase and its attornies have abandoned the foreclosure by not as yet subjecting us to a trustee sale. We believe it is because of the Record we have established in federal and state court that shows Chase as having nothing whatsoever to do with our mortgage. We contracted for the subject loan through Washington Mutual Bank before its federal takeover. We are confident we will prevail on appeal. We believe that upon federal takeover, Chase Bank discovered mortgage accounts without the requisite mortgage. We believe the mortgages had been transferred from and by WAMU officials prior to takeover, leaving only evidence of the mortgage accounts behind. Chase in our case and we believe countless others, took fraudulent advantage of the accounts by inducing the debtors into believing the feds had assigned collection to Chase Bank. It is a sham and a fraud. The FDIC in our case and we believe many others, did not as Chase falsely represents, assign Chase the mortgages placed in receivership by the FDIC. Reach us at rnwil3@aol.com. NACA has caught on to Chase also.


Ron Williams
Comment posted December 1, 2010 @ 2:06 am

There is another issue regarding judges. Some (not all of course) are so influenced by the prestige of major banks that they deliberately skew lawsuits and foreclosure cases in favor of the banks. In my case the judge’s rationale is that we borrowed the funds so what difference does it make who we have to repay. (See Ronald Williams and Jann G. Williams vs. JP Morgan Chase Bank et al. 2:10-CV-00118 PMP (USDC, Nev. Dist) and 10-16102 (USDCA, 9th Cir. 2010) Those cases highlight six separate documents that had been generated by Chase and its attorney for the purpose of subjecting us to fraudulent loan payments and foreclosure when we ceased making the defrauded payments. Any lawyer familiar with the rules of federal procedure and our case would realize the lengths the judge went to terminate the case at the trial level in Chase and its attorney’s favor. We are now on appeal.


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