Beatings will continue til morale improves...Foreclosuregate.

[1voice]

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I read this today on another blog… It bears repeating here:
"Now we can see it is an absolute mess as the folk who bought foreclosed houses are swept in, the folks who lost houses are swept in, the folk who currently just HAVE mortgages have been made part of the toxic mixture AND IT IS NO LONGER POSSIBLE TO KNOW WHO HAS THE TITLE OF YOUR HOUSE BECAUSE NO ONE ENTITY DOES.

This is mindboggling. It really is. And nobody in the public spectrum tried to sort it out - just trying to blame it on robosignatures doesn’t cut it. These huge banks knew this was coming up, and they tried, with the collusion of Congress, to get this fraud legitimized - and Obama didn’t even veto outright, just slipped it in his pocket!!!"

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"errors go far deeper than mere sloppiness. They are concealing a massive fraud.

They cannot be corrected with legitimate paperwork, and that was the reason the servicers had to hire “foreclosure mills” to fabricate the documents.

These errors involve perjury and forgery – fabricating documents that never existed and swearing to the accuracy of facts not known."

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"These problems cannot be swept under the rug as mere technicalities. They go to the heart of the securitization process itself. The snowball has just started to roll.

You Can’t Recover What Doesn’t Exist

Yves Smith of Naked Capitalism has uncovered a price list from a company called DocX that specializes in “document recovery solutions.” DocX is the technology platform used by Lender Processing Services to manage a national network of foreclosure mills. The price list includes such things as “Create Missing Intervening Assignment,” $35; “Cure Defective Assignment,” $12.95; “Recreate Entire Collateral File,” $95.

Notes Smith:

[C]reating . . . means fabricating documents out of whole cloth …"

baltimorechronicle.com/2010/100810Brown.shtml

webofdebt.com/articles/foreclosuregate.php

forums.catholic-questions.org/showthread.php?t=499762

 

[edwest2]

This is hilarious. Who owns the properties in question? Who put the global housing market at risk? Who is going to pay for losses? Retail credit unions for one. They’ll be paying a little less interest so the difference can go toward uh, to uh… somebody.

It is a fiction to believe Wall Street did not see this coming. And when the house of cards came down, plans were in the works to spread out the pain/costs.

Yes, foreclosures are suspended for now and that’s a good thing. Better to stop the damage as opposed to doing nothing.

God bless,
Ed

 

[EmperorNapoleon]

This is hilarious. Who owns the properties in question?

The answer is, in many cases, no one knows. Mortgage debt that has been chopped up, sliced, diced, and packaged into securities can, potentially, be distributed amongst dozens or even hundreds of portfolios. The “show me the note” challenge on the part of homeowners has been somewhat popular over the last few years because of this. If the bank can’t prove, by producing the original doccuments, that you owe them money then you don’t have to pay them a dime, they can’t foreclose, and you can sue for the title of your home.

 

[estesbob]

A credit report can show the history of who a consumer has been paying for their home mortgage loan to. Unless we are to believe that people started making payments to random mtg companies on houses they owned outright this should prove to be sufficient to prove that debt existed. This is just one example of the massive electronic trail documenting these loans. In an increasingly paperless society the problems of coming up with original documents is going to be a problem in nearly every industry. Congress tried to solve this with the bill that was introduced in 2005, long before this crisis occurred(this is the bill Obama vetoed). However it’s an election year and it gains one votes by portraying evil mortgage company throwing people on the street when the truth is there is not been a single incident where one can show that the sloppiness in approving these foreclosures led to the eviction of somebody who should not of been evicted.

This is just another issue that is going to keep the housing market depressed and continue the recession.

 

[edwest2]

The answer is, in many cases, no one knows. Mortgage debt that has been chopped up, sliced, diced, and packaged into securities can, potentially, be distributed amongst dozens or even hundreds of portfolios. The “show me the note” challenge on the part of homeowners has been somewhat popular over the last few years because of this. If the bank can’t prove, by producing the original doccuments, that you owe them money then you don’t have to pay them a dime, they can’t foreclose, and you can sue for the title of your home.

So, your mortgage payment is paid say, halfway, so you now owe nothing? You sue and get the title and that’s it? Doesn’t the bank and/or other lending institution have a number written down that’s attached to something? In other words, I’m holding a document in Beijing that says I get money from a property at 123 Street in the United States, and my revenue stream gets shut off?

God bless,
Ed

 

[edwest2]

A credit report can show the history of who a consumer has been paying for their home mortgage loan to. Unless we are to believe that people started making payments to random mtg companies on houses they owned outright this should prove to be sufficient to prove that debt existed. This is just one example of the massive electronic trail documenting these loans. In an increasingly paperless society the problems of coming up with original documents is going to be a problem in nearly every industry. Congress tried to solve this with the bill that was introduced in 2005, long before this crisis occurred(this is the bill Obama vetoed). However it’s an election year and it gains one votes by portraying evil mortgage company throwing people on the street when the truth is there is not been a single incident where one can show that the sloppiness in approving these foreclosures led to the eviction of somebody who should not of been evicted.

This is just another issue that is going to keep the housing market depressed and continue the recession.

“housing market depressed” So what about the criminals on Wall Street and those crooked appraisers who just arbitrarily decided to raise housing prices? But no. This is going to be worked out on the backs of the peasants while the super-rich wait things out. American business is sitting on trillions of dollars right now, but they too, will wait things out on the excuse that they don’t know what their coming tax burden will be. So, who - who - is running the country? It sure doesn’t look like the President.

And who cares about 9.6% of the population? They can move in with relatives or the local park or stand in the snow on a street corner. I think one round of Christmas bonuses from Wall Street could get those people in shelters until the so-called economy improves.

There is no recession for people who have nothing. The word recession only applies to a small group of people who are already rich and just want to get richer.

God bless,
Ed

 

[estesbob]

“housing market depressed” So what about the criminals on Wall Street and those crooked appraisers who just arbitrarily decided to raise housing prices? But no. This is going to be worked out on the backs of the peasants while the super-rich wait things out. American business is sitting on trillions of dollars right now, but they too, will wait things out on the excuse that they don’t know what their coming tax burden will be. So, who - who - is running the country? It sure doesn’t look like the President.

And who cares about 9.6% of the population? They can move in with relatives or the local park or stand in the snow on a street corner. I think one round of Christmas bonuses from Wall Street could get those people in shelters until the so-called economy improves.

There is no recession for people who have nothing. The word recession only applies to a small group of people who are already rich and just want to get richer.

God bless,
Ed

People on Wall Street didn’t arbitrarily decide to raise the prices of houses. It may be great politics to rant & rave about evil Wall Street bankers getting rich off the proletariat and needlessly throwing people on the streets but it simply is not true. This foreclosure mess is going to do nothing more than extend the recession and depress the the price of the biggest asset most people have-their homes. And in the end it will be those on the lower end of the spectrum who get it the worst but that’s okay it feels good to vent and a little class warfare always seems good for the soul.

 

[edwest2]

Here’s the story:

I called the people on Wall Street criminals because they aren’t stupid. Home valuation is not magic or not some arcane art, so when things kept going up and up, I’m sure the people on Wall Street were thinking, “This is our lucky day, or current fiscal period.”

I should point out that there are professional class warfare hobbyists out there. They pick up their picket signs, look over the current “list of things to protest” and dutifully go out and yell and shout slogans.

money.usnews.com/money/blogs/flowchart/2010/05/14/how-the-wall-street-probes-implicate-main-street

It’s doubtful they actually care. It’s just something to do.

God bless,
Ed

 

[Good_News_1]

The answer is, in many cases, no one knows. .

I would think that the entity collecting the payments (or in the case of a servicing agency, the entity to which the payments are forwarded) would be a good guess in most cases.

 

[CountryGirl2]

I would think that the entity collecting the payments (or in the case of a servicing agency, the entity to which the payments are forwarded) would be a good guess in most cases.

They may be “aware” of who owns the title, but if they cannot produce the hardcopy originals, then they are SOL. They mostly scanned in the hardcopies and tossed the originals, for efficiency reasons, so the original title is often missing. The problem is that the electronic copies aren’t valid unless they carry electronic signitures, which none of them do.

Denninger has been going on and on about this for months.

 

[Good_News_1]

They may be “aware” of who owns the title, but if they cannot produce the hardcopy originals, then they are SOL. They mostly scanned in the hardcopies and tossed the originals, for efficiency reasons, so the original title is often missing. The problem is that the electronic copies aren’t valid unless they carry electronic signitures, which none of them do.

The borrower agreed to pay the loan, but now they get a free house?

Perhaps real estate law is too arcane, and should be reformed.

 

[Robert_Bay]

opinion, not a news article