Your lender lied – this is how & why

[doghouse]

Below are snips from a Lawsuit filed Jan 2010. It exposes WHY so many families are facing foreclosure today. It exposes the depth of corruption, lies, manipulation, and blatant disregard for the borrowers.

Other lawsuits are following and most show the same things and more importantly they connect the DOTS between the major players, i.e. Countrywide – Bank of America – Lehman – AIG – Fannie – Freddie – Chase – JP Morgan – Sterns – CitiMortgage – etc… What folks will learn if they follow the trails is that ALL mortgage loans essentially flowed from only a FEW major players disseminated by carefully crafted deceptions from the borrowers through to Wall Street earning TRILLIONS of dollars at OUR EXPENSE.

Keep in mind most of these loans were designed to FORCE borrowers into a permanent cycle of refinancing. The lender is always getting paid & repaid. However, remember the lender NEVER LENDS MONEY – they are only passing on YOUR CREDIT. They NEVER give you cash – but ONLY help “approve” your debt. That means – these loans do NOT cost the lender a nickel AT ANY TIME. They did NOT give you any money – THEY GAVE YOU INFLATED CREDIT so they could charge you inflated fees.

These lenders then purchase 6-7 different types of insurances – mortgage insurance – bond insurance – securities insurance – title insurance – default insurance – and countless other types of insurances. That’s why “INSURANCE” companies like AIG were going bankrupt. The lender cashes in on the insurance. The insurance pays 100% of the “unpaid” principle – PLUS the unpaid interest up to foreclosure – PLUS attorneys fees and expense incurred by the servicer in the process. THEY NEVER LOSE A NICKEL.

Question: If the lender was paid by the insurances for monies they never gave you – then WHERE is the DEBT you supposedly owe? Why are they permitted to foreclose and take your house when they NEVER gave you any money – and they were PAID by the insurance in FULL? What’s wrong with that picture?

Below are snips from the lawsuit. Read what THEY DID TO YOU & YOUR FAMILY! This is WHY the CEO’s of these major lenders should be HUNG on the courthouse lawns. People, they deliberately designed these loans to FAIL. They created paperwork and documentation to HIDE the facts from the borrower. These snips SHOULD INFURIATE everyone enough to march on the lenders – drag them out of their billion-dollar office buildings and HANG them in the streets. This is what they did to YOU – YOUR KIDS – and they made TRILLIONS of dollars doing it that WE are NOW paying. So how can they still STEAL YOUR HOUSE after breaking the law – deceiving the borrowers – creating ILLEGAL LOANS and have NEVER LOST A NICKEL to date???

• …Indeed, Countrywide issued mortgages to borrowers that did not satisfy the requisite eligibility criteria
• …Countrywide employees did not properly ascertain whether a potential borrower could afford the offered loan, and many of Countrywide’s stated income loans were based on inflated estimates of borrowers’ income. For example, (1) a Countrywide employee estimated that approximately 90% of all reduced documentation loans sold…had inflated incomes; and (2) one of Countrywide’s mortgage brokers, One Source Mortgage Inc., routinely doubled the amount of the potential borrower’s income on stated income mortgage applications.
• …a review of 100 stated income loans by the Mortgage Asset Research Institute revealed that 60% of the income amounts were inflated by more than 50% and that 90% of the loans had inflated income of at least 5%.
• …Countrywide also originated and sold adjustable rate mortgages (“ARMs”) to borrowers who could not afford the ARMs … the company admitted in a May 7, 2007 letter to the Office of Thrift Supervision that in the fourth quarter of 2006 alone “almost 60% of the borrowers who obtained subprime hybrid ARMs [from Countrywide] would not have qualified at the fully indexed rate” and that “25% of the borrowers would not have qualified for any other [Countrywide] product.”
• …The fully indexed rate is calculated by adding the current value of the rate index (which fluctuates monthly)and adding the margin agreed to by the borrower. The margin remains static for the life of the loan. The margin on Countrywide loans could be as high as 4%. Thus, if the Countrywide ARM identifies the rate index as COFI (which was at 2.8% in July 2008) and the margin as 4%, then once the cap or “teaser rate” has expired, the borrower will be subject to an interest rate equal to the fully indexed rate (“FIR”) or 6.8% for that month.
• …most of those who had Countrywide ARMs paid only the “minimum” payment – a payment that is based on the teaser rate of 1% to 1.25% as opposed to the FIR of 6.8%, meaning that borrowers were making payments that were less than the amount of interest accruing on the loan after the teaser rate expired. The unpaid interest that accrues while the borrower is making the payment based on the teaser rate is tacked on to the principal. Once the principal is 115% of the original loan, then the borrower’s monthly payment immediately is raised in order to a level that will pay off the new balance (original principal plus the unpaid interest) of the loan.
• …Countrywide thus admitted to the Office of Thrift Supervision that even though 60% of its potential borrowers would not have qualified for a Countrywide loan with an interest rate of 6.8%, they were qualified for the same loan with a teaser rate of 1.25%, even though that borrower would likely experience “payment shock” and be unable to pay off the loan in the near future. Even when Countrywide employees received proper income documentation (i.e., a W-2 form) demonstrating that the borrower did not qualify for a loan, the loan was submitted as a stated income loan so as to obtain approval of the loan.
• …employees were pressured to issue loans to unqualified borrowers by permitting exceptions to underwriting standards, incentivizing employees to extend more loans without regard to the underwriting standards for such loans, and failing to verify documentation and information provided by borrowers that allowed them to qualify for loans.
• …According to the California AG, Countrywide used a system called CLUES or Countrywide Loan Underwriting Expert System. A Countrywide underwriter would enter the borrower’s financial and credit information and the terms of the loan into CLUES, which would then provide a loan analysis report that indicated whether the loan was within Countrywide’s underwriting guidelines. CLUES reports stating that a borrower was not within Countrywide’s underwriting guidelines often were ignored in order to effectuate the loan.
• …former California loan officer for Countrywide further explained that its loan officers typically explained to potential borrowers that “with your credit score of X, for this house, and to make X payment, X is the income that you need to make”; after which the borrower would state the he or she made X amount of income.
• …The California AG Complaint alleged that Countrywide’s practice of approving loans based on the borrower’s ability to pay the teaser rate (as opposed to the fully indexed rate), as admitted to by the company in the May 7, 2007 letter to the Office of Thrift Supervision, commenced in 2005.
• ...the company [Countrywide] admitted that had those guidelines been in effect during the relevant time period, “it would have rejected 89% of the option ARM loans it made in 2006, amounting to $64 billion, and $74 billion, or 83%, of those it made in 2005.”

If you are waiting for your govern representative to take action, you might want to check their donors - & - especially their BANK ACCOUNTS. Most of these loans are illegal already. That means, if our courts intended to uphold the law – they would THROW OUT the foreclosures and declare the debts were “unenforceable.” That means the loans are no-longer SECURED by your home. They are relegated as credit-card type loans. This would allow the borrower to file bankruptcy and escape the debt. This is exactly what many should do but they won’t. These loans were illegal – therefore they are called “VOID” or “VOIDED” mortgages – Deeds of Trust. This is different from “VOIDABLE” – because they can still collect on a VOIDABLE – note. However, they cannot collect on a VOID or VOIDED note because it is as if it never happened. That is what TRUE Justice would do to these lenders. Declare the mortgages VOID!>>


Just some thoughts…

[Do not want to lose it]

The problem is the ability to bring this to court and find a Judge that has this knowledge and agrees that is is a sham.

[Social Apocalypse]

AWESOME Doghouse!!! Thanks. I am SOOO glad I rescinded my mortgages, because they ARE void. HOWEVER, I will now have to defend my title to my home and navigate the tender obligation that comes with rescission, thank god, I can do that. Can't wait to see what happens.

RESCIND YOUR MORTGAGE NOW if you have TILA violations. PLEASE.

[Social Apocalypse]

The problem is the ability to bring this to court and find a Judge that has this knowledge and agrees that is is a sham.

Yep, you hit the nail on the head. The judges dont have the Cajones to do what the law says, especially in the 9th Circuit Court. It seems to be getting better, but FRAUD IS FRAUD.

If I lied on my taxes to even the SMALLEST extent as the lenders have done on these very IMPORTANT FEDERAL DOCUMENTS, I would GO TO PRISON.

I cannot believe how flim flam the enforcement of this is. It's not to be believed. THIS is how is should be:

Banker Gets Death Penalty In China For Fraud!

Bet they don't have a problem with bank fraud in China, what do YOU think?

[doghouse]

The problem is the ability to bring this to court and find a Judge that has this knowledge and agrees that is is a sham.

Agreed - Judge Shack in NY is already doing so... Most judges still operate from the old-school assumptions regarding foreclosures. It is a process to educate them... It is hard enough just finding an attorney willing to do it. Most are useless and too lazy - in my experience. They want someone to pay their house off - put their kids through college and somewhere along the way they'll get around to filing something for the case...

My approach thus far has been to use the dirt already plowed - i.e. the lawsuit I posted is stating information Countrywide has already admitted. The case can be downloaed here - http://www.btkmc.com/files/pdf_featu...Complaint1.pdf

Personally, I believe it WAY-MORE-IMPORTANT to educate the PEOPLE first. Folks need to understand what was done to them. Our government has an obligation to TELL US what these lenders have done. However, the government has made it clear, thus far, they have NO INTENTIONS of doing so. They are affraid of the consequences.

The FED report on Lehman states that Lehman had 605-Trillion dollars roll through its books over the past 3-yrs. It has been said that "all roads lead back to LEHMAN..." These people should be prosecuted and have EVERYTHING taken from them & their families.

The very notion that Countrywide admitted the following statement and it has not been challenged is MINDBOGGLING.
· the company [Countrywide] admitted that had those guidelines been in effect during the relevant time period, “it would have rejected 89% of the option ARM loans it made in 2006, amounting to $64 billion, and $74 billion, or 83%, of those it made in 2005.”

How many families have been thrown in the streets because of these people?
How man children are now living in drug infested section-8 housing developments because of these people?
How many kids will never step foot in a college because of this...?

I've stated it here several times - this is so vast that the foreclosing law firms no longer follow the laws - and simply foreclose anyway. These people believe they are untouchable. My father used to say, when someone has no respect they are punks - no matter their age - but when someone has no "fear" they are dangerous - sooner or later they must be put-down like the rabid animals they are... Sadly, I think it will take something of that magnitude to happen before our government FEARS the right people. Until then - the money controls the show.

IMHO - their goal right now is to keep every homeowner in survival mode - every man, woman, child, - family for themselves... As long as they continue doing that - they WIN! But the American people wake up and begin to see the truth - THERE WILL BE HELL TO PAY...

Keep the Powder Dry!

[BofAnightmareJenn]

My husband has been trying to tell me this and make me understand this for YEARS now.................THANK YOU for spelling it out...........

I'm wondering what's next.......WHAT CAN I DO????

[doghouse]

My husband has been trying to tell me this and make me understand this for YEARS now.................THANK YOU for spelling it out...........

I'm wondering what's next.......WHAT CAN I DO????

Depends on what the situation is...?

The biggest thing is to know and learn as much about it as you can. Then get everything organized - all loan docs and EVERYTHING else you were given. No matter if it came from the realtor - loan agent - settlement - EVERYTYHING. If you have the Good Faith Estimates - Appraisal Docs - and letters or papers faxed, emailed, or even picked up to read just waiting in their office. Scan them into PDF file format - then FILE papers in a safe place.

You should also learn as much about YOUR LOAN as possible. If you have ever been more than 60-days late or if they attempted foreclosure - chances are if they did - then YOUR LOAN WAS ALREADY PAID-OFF. That's why they make YOU purchase Mortgage Insurance... Find out what Issuing Entity purchased your loan. Get all the information on it you can - get the PSA - and all Exhibits 99.1, 99.2, 99.4 - 8K - and other documents. Some of those puppies are big documents 5-600 pages some 1000 pgs - get them all READ THEM ALL and KNOW what they did with YOUR loan.

The chances of finding an attorney are nill. That means you need to know the laws of your state. Getting a "true" audit of the loan docs to make sure everything is correct & accurate. Most of the time these lenders checked off the "Conventional Loan" box on the loan docs - even though the damn loan was an ARM or some type of optional loan. That means they were "hiding" something. A conventional loan as different criteria than the ARM loans. That is a big part of the lawsuit I took those statements from... That means the loan is illegal or at best has some serious "disclosure violations. That's the game they played. They created several sets of loan docs for their own reasons to assure the loans would slide past Underwriting. That's how they changed many people's loans the last minute or the SAME DAY as settlement. Suddenly they came up with a NEW program the lending agent was swearing it was the PERFECT LOAN for your family. That's ILLEGAL..

If you were given a loan-Mod, I'd be researching the laws regarding mortgages - Deeds of Trusts - Notes - Instruments of Negotiation... I'd also be asking questions - like - why did you have to WAIVE your Constitutional rights for the damn lender KNOWING that the lender BROKE THE LAW.

IMHO - that is one of the BIGGEST freaking scams going on today. How is it possible that the government is allowing these lenders to DICTATE the damn loan-mod to people when THE LENDER was GUILTY of MORTGAGE FRAUD? That is akin to allowing the murderer or bank robber to dictate how much time they'll serve in prison...? What's wrong with that picture... These lenders BROKE the LAW - in 95% of the loans in foreclosure the borrower's worst offense is because they TRUSTED the lender.

Making people aware of what is going on will eventually pay-off for everyone.

Personally - I think the American People should STOP PAYING the mortgages completely. STOP PAYING THE MORTGAGE... NEXT - STOP PAYING TAXES. REBEL and REFUSE to pay another penny of taxes and stop paying the damn mortgage - THEN watch and see how long they last. The lenders would FOLD. They couldn't file foreclosure agaisnt that many people and couldn't win EVEN if they did. They'd go bankrupt trying.
IF you stopped paying taxes, the FED would begin to crumble within 3-6 months. They'd threaten - scream - shout - and swear they'd send out the police to take the money - but the fact of the matter is - the freaking government is so far in debt it couldn't afford to do ANYTHING. THEN they'd get the message that WE THE PEOPLE OWN THEM - THEY DO NOT OWN US.

You know the old saying - bs talks - but money walks... WE OWN THE MONEY - THEY OWN THE DEBT. We stop giving them OUR MONEY - and THEY WILL STOP GIVING US DEBT...

Just my thoughts...

[Do not want to lose it]

Foreclosure Case Law Update

March 10th, 2010 · 2 Comments · Foreclosure

For a short period of time in Florida, pretender lenders and their attorneys had a field day in Florida courts, obtaining foreclosure judgments and title to property based on the flimsiest of evidence. Now courts are aware of many of the problems with these files and lenders can no longer count on a free ride to the foreclosure auction. Below is a sampling of case headnotes from recent circuit court opinions that denied foreclosure. Judges in circuits across the state are now standing up for consumers (or at least for the rule of law) and requiring lenders to prove their right to claim the relief they seek. A sampling of the headnotes follows:
Mortgages — Foreclosure — Stay — Foreclosure action is stayed until mortgagor has been afforded mitigation and modification opportunities of home affordable modification program
Mortgages — Foreclosure — Standing — Motion for final judgment of foreclosure denied — Plaintiff that did not become holder of note until after suit was filed did not have standing to bring action — Even if assignment could confer standing retroactively, assignment is deficient where jurat does not indicate that it was signed in presence of notary, and assignor does not have documented authority to assign mortgage — Further, motion for summary judgment is deficient where supporting affidavit was signed by person whose only demonstrated authority is to assign and release liens, not by individual with corporate authority and demonstrated knowledge.
Mortgages — Foreclosure — Complaint — Plaintiff has failed to state cause of action where partial terms sheet attached to foreclosure complaint omits details as to who gets paid, when and where payment is due, and amount of payment — Further, assignment that is dated after filing of suit is at variance with complaint — Complaint dismissed with leave to amend.
Mortgages — Foreclosure — Standing — Motion to dismiss is granted with leave to file new or amended complaint to allege that plaintiff is owner and holder of note and mortgage and to allege additional facts that support that allegation.
Mortgages — Foreclosure — Where note filed by plaintiff is endorsed but does not name entity to which it is made payable, plaintiff failed to plead in complaint that it is owner of note or mortgage, mortgage names entity other than plaintiff as mortgagee, plaintiff has filed assignment of mortgage executed and recorded after complaint was filed, and complaint does not demonstrate equitable assignment of mortgage to plaintiff before complaint was filed, plaintiff must amend complaint to allege that it is owner and holder of note and mortgage and identify documents upon which it relies to establish that it holds and owns note and mortgage
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[scarylarry]

doghouse,

What lawsuit is that from? You said Jan. 2010.

[scarylarry]

doghouse,

How do I find out, "what issuing entity purchased my loan"?
I have been trying to find out for a long time. I started with an Option ARM with America's Wholesale Lender (Countrywide) in Dec. 2005.
I just got a lawyer this week. He is very good and I don't want to meddle in
his work. He is doing a major QWR now and I am sure I will find out that info pretty soon, but I would like to find out myself which pool my loan is in. Any help would be appreciated.
thanks
scary

[so-cal-gal]

The chances of finding an attorney are nill. ... Just my thoughts...

Now there are a FEW good ones out there. Unless you are finding fault with Attorneys like Garfield who has the 'livinglies.wordpress.com' site and the attorneys that he associates with, I think you may have cast a slightly broad brush on your comment.

I DO agree that the EXCELLENT attorneys for fighting FC are few and far between. If you are in Forida, you have a couple of great ones. If you are in Southern CA there is at least one excellent attorney here also.

Otherwise, you are correct. Even when you are lucky enough to hire one of the premier attorneys fighting for the borrowers, you should STILL advocate. The more YOU know the more you can help keep other people from giving the pretender-lenders a free house. The more we put the word out, the more we will have people joining the battle in the courts. These lawsuits are EDUCATING the JUDGES. They are slowly coming around. You can't just wave a 'produce the note' defense at the judges and expect to be taken seriously. The judges view that as simply delaying the inevitable.

On the other hand, if you can educate the judge about why the entity trying to take your house has no legal right to do so and keep the arguments simple, you can make progress. The judges are too used to the principle that you, the borrower, are enjoying the house when you have no 'right' to do so. They are used to the old days when the local banker had indeed put up the funds for the mortgage, and was hurting until he could either get the money from the borrower, or get the debt repaid by taking the house.

Now we have these complicated schemes where they have defrauded borrowers and the investors at the same time.

With the many ways in which the loan pools have been paid back thru insurance or other means, the real parties who are unjustly being rewarded for their fraud are the pretender-lenders. It takes a lot to get those concepts accross to the masses. As we educate the masses, we are also influencing the judges. The more they get these cases, there will be more judgements in our favor. And those judgements that are publicised make an impact on judges in other courts too. More settlements will also be attained because the perps will want to avoid more and more judgements being published against them.

[doghouse]

doghouse,

What lawsuit is that from? You said Jan. 2010.

Here's the link - it was filed in California..

http://www.btkmc.com/files/pdf_featu...Complaint1.pdf

This is to the "amended" complaint by Countrywide.

[doghouse]

doghouse,

How do I find out, "what issuing entity purchased my loan"?
I have been trying to find out for a long time. I started with an Option ARM with America's Wholesale Lender (Countrywide) in Dec. 2005.
I just got a lawyer this week. He is very good and I don't want to meddle in
his work. He is doing a major QWR now and I am sure I will find out that info pretty soon, but I would like to find out myself which pool my loan is in. Any help would be appreciated.
thanks
scary

If your loan was an option ARM and your lawyer is good, then they should be scrutinizing those freaking docs very hard. You should download that lawsuit and send it to him because it has tons of golden nuggets he can use. Countrywide is famous for making those docs “appear” as conventional loan docs – when in fact they were option ARM loans from the git-go… This is especially so when looking at the docs PRIOR to settlement - Good Faith Estimates - etc. What they typically liked to do was get the borrower to sign all sorts of different documents without the borrower realize they were giving the lending agent the opportunity to set them up with whatever the agent WANTED. And as is exposed by that lawsuit - the agent was PAID a BONUS to make sure the borrower accepted the loan Countrywide needed to fill their cesspools...

Google your lawyer’s name then go to your state’s website that tracks cases – put his name in and see what turns up. If he’s good, you’ll see it – if he’s rogue you’ll see it… The classic manipulation I’ve seen by MOST attorneys is dragging their feet – send out a few docs – yak – discuss the case – while the reality is – they are simply buying time for the lender to file foreclosure and get their ducks in a row. That way the borrower starts skitzing and getting paranoid willing to settle for anything… I’ve spent 60-thousand dollars on attorneys and with exception of one – I could have given it to a crack-head and gotten the same results. I think al Qaeda should use attorneys and lenders as practice dummies but hey, that’s just me…

If the lender sent you paperwork, it should contain the Trust it was sold. In fact, the info should be part of the documentation - Trustee - authorized by such & such... etc... Your lawyer should know just by looking at the docs. You definitely want to follow the trail because if that chain is broken - the NOTE is not enforceable. They won't give up and they will act as if they still have authority to do something but the reality is - separating the NOTE from the property gives them an "unsecured" note.

Another thing is recordation – every time they sell and/or transfer that note to another entity - theoretically per law - it must be recorded in the COUNTY where the property is located. Judges have ignored most of this stuff for years and things are changing. Your county should have a website - Land Records. Each Assignment MUST be recorded per the UCC laws. Most states adopted the UCC Laws but make sure - and personally, I would NOT trust any lawyer to do it for you. If the assignments are NOT recorded, they have a problem and they must cure that problem without making too much noise. If they filed foreclosure PRIOR to having the assignments in place, they screwed themselves. However, unless you attorney is aggressive and FORCES the courts to deal with it - they will bypass it and take the house.

[doghouse]

Now there are a FEW good ones out there. Unless you are finding fault with Attorneys like Garfield who has the 'livinglies.wordpress.com' site and the attorneys that he associates with, I think you may have cast a slightly broad brush on your comment.

I DO agree that the EXCELLENT attorneys for fighting FC are few and far between. If you are in Forida, you have a couple of great ones. If you are in Southern CA there is at least one excellent attorney here also.

Otherwise, you are correct. Even when you are lucky enough to hire one of the premier attorneys fighting for the borrowers, you should STILL advocate. The more YOU know the more you can help keep other people from giving the pretender-lenders a free house. The more we put the word out, the more we will have people joining the battle in the courts. These lawsuits are EDUCATING the JUDGES. They are slowly coming around. You can't just wave a 'produce the note' defense at the judges and expect to be taken seriously. The judges view that as simply delaying the inevitable.

On the other hand, if you can educate the judge about why the entity trying to take your house has no legal right to do so and keep the arguments simple, you can make progress. The judges are too used to the principle that you, the borrower, are enjoying the house when you have no 'right' to do so. They are used to the old days when the local banker had indeed put up the funds for the mortgage, and was hurting until he could either get the money from the borrower, or get the debt repaid by taking the house.

Now we have these complicated schemes where they have defrauded borrowers and the investors at the same time.

With the many ways in which the loan pools have been paid back thru insurance or other means, the real parties who are unjustly being rewarded for their fraud are the pretender-lenders. It takes a lot to get those concepts accross to the masses. As we educate the masses, we are also influencing the judges. The more they get these cases, there will be more judgements in our favor. And those judgements that are publicised make an impact on judges in other courts too. More settlements will also be attained because the perps will want to avoid more and more judgements being published against them.

I'm not knocking Garfield - but let's be real - how many success stories have you read on their website...? I support Garfield's efforts and think he's doing a good thing - but I've also spoken with several attorneys FROM that website and I can tell you from experience they are ROGUE.

Chris Brown - met them in DC - talked about the case - they wanted 400-thousand dollars to take our case and didn't know their butts from a hole in the ground about what they CLAIM to know. They LIED to my face... Then when I sent my documents to THEIR auditor it took me 3-months to get them back - and they NEVER did the audit...

I called two other attorneys on their list - ONE was a damn DEBT COLLECTOR... Think about that one for moment... a damn debt collector who didn't care one-bit about the blatant FRAUD in our case...

I called another attorney on the list and he had NO IDEA how I was talking about or Garfield's website.

If those attorneys are winning cases - I sure as hell have NOT heard them and I've been visiting that website since August 2008.

I would LOVE to be wrong about attorneys but I've not found any willing to stand up for what's right. We predatory lending - conspiracy to defraud - Fraud - mortgage fraud - embezzlement, collusion, breach of contract(s), and the list goes on... Those are REAL not some wish list I'm hoping to use. After spending 60-k on attorneys and getting absolutely ZIP for it - as I told a judge - I'd rather join al Qaeda or at least make a very BIG donation to help rid the planet of these scum... Yep, I got in trouble for it but read the stories on these sites and tell me our legal system hasn't gone rogue?

How can a lender enforce an "illegal" loan? Where is justice in that? How can these lenders dictate the terms of these mods when they were the ones who broke the law...? What's wrong with that picture?

I'm sure there are some good attorneys out there but for every decent attorney with an once of integrity there are 1000s lying - theiving - and manipulating these borrowers into prozac bankruptcy.

There are a few good attorneys in Florida. Have you checked out what Lynn Szymoniak, ESQ - here's a link The Szymoniak Firm
She has been doing a GREAT JOB exposing the fraudulent assignments by the lenders. She's a very sharp lady and is fighting for us - regular-folks. She's the real-deal genuine advocate attorney.

[capote203]

doghouse,

How do I find out, "what issuing entity purchased my loan"?
I have been trying to find out for a long time. I started with an Option ARM with America's Wholesale Lender (Countrywide) in Dec. 2005.
I just got a lawyer this week. He is very good and I don't want to meddle in
his work. He is doing a major QWR now and I am sure I will find out that info pretty soon, but I would like to find out myself which pool my loan is in. Any help would be appreciated.
thanks
scary

ScaryLarry - I got this info from my servicer's customer advocacy dept...

[capote203]

Below are snips from a Lawsuit filed Jan 2010. It exposes WHY so many families are facing foreclosure today. It exposes the depth of corruption, lies, manipulation, and blatant disregard for the borrowers.

Other lawsuits are following and most show the same things and more importantly they connect the DOTS between the major players, i.e. Countrywide – Bank of America – Lehman – AIG – Fannie – Freddie – Chase – JP Morgan – Sterns – CitiMortgage – etc… What folks will learn if they follow the trails is that ALL mortgage loans essentially flowed from only a FEW major players disseminated by carefully crafted deceptions from the borrowers through to Wall Street earning TRILLIONS of dollars at OUR EXPENSE.

Keep in mind most of these loans were designed to FORCE borrowers into a permanent cycle of refinancing. The lender is always getting paid & repaid. However, remember the lender NEVER LENDS MONEY – they are only passing on YOUR CREDIT. They NEVER give you cash – but ONLY help “approve” your debt. That means – these loans do NOT cost the lender a nickel AT ANY TIME. They did NOT give you any money – THEY GAVE YOU INFLATED CREDIT so they could charge you inflated fees.

These lenders then purchase 6-7 different types of insurances – mortgage insurance – bond insurance – securities insurance – title insurance – default insurance – and countless other types of insurances. That’s why “INSURANCE” companies like AIG were going bankrupt. The lender cashes in on the insurance. The insurance pays 100% of the “unpaid” principle – PLUS the unpaid interest up to foreclosure – PLUS attorneys fees and expense incurred by the servicer in the process. THEY NEVER LOSE A NICKEL.

Question: If the lender was paid by the insurances for monies they never gave you – then WHERE is the DEBT you supposedly owe? Why are they permitted to foreclose and take your house when they NEVER gave you any money – and they were PAID by the insurance in FULL? What’s wrong with that picture?

Below are snips from the lawsuit. Read what THEY DID TO YOU & YOUR FAMILY! This is WHY the CEO’s of these major lenders should be HUNG on the courthouse lawns. People, they deliberately designed these loans to FAIL. They created paperwork and documentation to HIDE the facts from the borrower. These snips SHOULD INFURIATE everyone enough to march on the lenders – drag them out of their billion-dollar office buildings and HANG them in the streets. This is what they did to YOU – YOUR KIDS – and they made TRILLIONS of dollars doing it that WE are NOW paying. So how can they still STEAL YOUR HOUSE after breaking the law – deceiving the borrowers – creating ILLEGAL LOANS and have NEVER LOST A NICKEL to date???

• …Indeed, Countrywide issued mortgages to borrowers that did not satisfy the requisite eligibility criteria
• …Countrywide employees did not properly ascertain whether a potential borrower could afford the offered loan, and many of Countrywide’s stated income loans were based on inflated estimates of borrowers’ income. For example, (1) a Countrywide employee estimated that approximately 90% of all reduced documentation loans sold…had inflated incomes; and (2) one of Countrywide’s mortgage brokers, One Source Mortgage Inc., routinely doubled the amount of the potential borrower’s income on stated income mortgage applications.
• …a review of 100 stated income loans by the Mortgage Asset Research Institute revealed that 60% of the income amounts were inflated by more than 50% and that 90% of the loans had inflated income of at least 5%.
• …Countrywide also originated and sold adjustable rate mortgages (“ARMs”) to borrowers who could not afford the ARMs … the company admitted in a May 7, 2007 letter to the Office of Thrift Supervision that in the fourth quarter of 2006 alone “almost 60% of the borrowers who obtained subprime hybrid ARMs [from Countrywide] would not have qualified at the fully indexed rate” and that “25% of the borrowers would not have qualified for any other [Countrywide] product.”
• …The fully indexed rate is calculated by adding the current value of the rate index (which fluctuates monthly)and adding the margin agreed to by the borrower. The margin remains static for the life of the loan. The margin on Countrywide loans could be as high as 4%. Thus, if the Countrywide ARM identifies the rate index as COFI (which was at 2.8% in July 2008) and the margin as 4%, then once the cap or “teaser rate” has expired, the borrower will be subject to an interest rate equal to the fully indexed rate (“FIR”) or 6.8% for that month.
• …most of those who had Countrywide ARMs paid only the “minimum” payment – a payment that is based on the teaser rate of 1% to 1.25% as opposed to the FIR of 6.8%, meaning that borrowers were making payments that were less than the amount of interest accruing on the loan after the teaser rate expired. The unpaid interest that accrues while the borrower is making the payment based on the teaser rate is tacked on to the principal. Once the principal is 115% of the original loan, then the borrower’s monthly payment immediately is raised in order to a level that will pay off the new balance (original principal plus the unpaid interest) of the loan.
• …Countrywide thus admitted to the Office of Thrift Supervision that even though 60% of its potential borrowers would not have qualified for a Countrywide loan with an interest rate of 6.8%, they were qualified for the same loan with a teaser rate of 1.25%, even though that borrower would likely experience “payment shock” and be unable to pay off the loan in the near future. Even when Countrywide employees received proper income documentation (i.e., a W-2 form) demonstrating that the borrower did not qualify for a loan, the loan was submitted as a stated income loan so as to obtain approval of the loan.
• …employees were pressured to issue loans to unqualified borrowers by permitting exceptions to underwriting standards, incentivizing employees to extend more loans without regard to the underwriting standards for such loans, and failing to verify documentation and information provided by borrowers that allowed them to qualify for loans.
• …According to the California AG, Countrywide used a system called CLUES or Countrywide Loan Underwriting Expert System. A Countrywide underwriter would enter the borrower’s financial and credit information and the terms of the loan into CLUES, which would then provide a loan analysis report that indicated whether the loan was within Countrywide’s underwriting guidelines. CLUES reports stating that a borrower was not within Countrywide’s underwriting guidelines often were ignored in order to effectuate the loan.
• …former California loan officer for Countrywide further explained that its loan officers typically explained to potential borrowers that “with your credit score of X, for this house, and to make X payment, X is the income that you need to make”; after which the borrower would state the he or she made X amount of income.
• …The California AG Complaint alleged that Countrywide’s practice of approving loans based on the borrower’s ability to pay the teaser rate (as opposed to the fully indexed rate), as admitted to by the company in the May 7, 2007 letter to the Office of Thrift Supervision, commenced in 2005.
• ...the company [Countrywide] admitted that had those guidelines been in effect during the relevant time period, “it would have rejected 89% of the option ARM loans it made in 2006, amounting to $64 billion, and $74 billion, or 83%, of those it made in 2005.”

If you are waiting for your govern representative to take action, you might want to check their donors - & - especially their BANK ACCOUNTS. Most of these loans are illegal already. That means, if our courts intended to uphold the law – they would THROW OUT the foreclosures and declare the debts were “unenforceable.” That means the loans are no-longer SECURED by your home. They are relegated as credit-card type loans. This would allow the borrower to file bankruptcy and escape the debt. This is exactly what many should do but they won’t. These loans were illegal – therefore they are called “VOID” or “VOIDED” mortgages – Deeds of Trust. This is different from “VOIDABLE” – because they can still collect on a VOIDABLE – note. However, they cannot collect on a VOID or VOIDED note because it is as if it never happened. That is what TRUE Justice would do to these lenders. Declare the mortgages VOID!>>


Just some thoughts…

Doghouse - I was so happy to see your post. I have been pulling together info for my own suit - something that hasn't been addressed as of yet. I purchased in Nov2005 - I contend that the fraudulent actions of some of the subprime lenders, at the time, caused home prices to be artificially (and fraudulently) inflated. If it were not for these actions, in 2005, my home would have been appx 500K less than its inflated purchase price. Subsequently, with the toxic loans going into default, foreclosures and short sales have further damaged my home's worth.

[Do not want to lose it]

If anyone here thought Scott Brown would help us out -
Raw Story:
Ted Kennedy's replacement in the Senate doesn't appear to be quite as articulate as his predecessor.
Newly minted Sen. Scott Brown (R-MA), elected to the late Kennedy's seat in a special election, stumbled after reporters asked him why he opposed financial reform.
Read the whole story: Raw Story
Get HuffPost

[doghouse]

Doghouse - I was so happy to see your post. I have been pulling together info for my own suit - something that hasn't been addressed as of yet. I purchased in Nov2005 - I contend that the fraudulent actions of some of the subprime lenders, at the time, caused home prices to be artificially (and fraudulently) inflated. If it were not for these actions, in 2005, my home would have been appx 500K less than its inflated purchase price. Subsequently, with the toxic loans going into default, foreclosures and short sales have further damaged my home's worth.

I've been wondering why folks cannot sue the appraisers...? This would be especially so if the Lender has a reputation of getting the "value" requested... then that equates collusion and sue them both...

For a judge to accept your statement - there are obvious questions need answering...

Assuming you purchased the house - would the seller have sold it to you 500k less? Obviously your take on it is that the seller was misinformed because the markets were so badly skewed. However, your issue will be to separate your-house from the rest of the neighborhood. Meaning, if you paid 500k too much - most folks in your neighborhood would have most likely done the same thing...

However, one of the reasons I thought that lawsuit has lots of nuggets for us regular-folks is essentially what you are pointing towards... You didn't merely purchase that house because it was the prettiest or biggest on the block – it was an “INVESTMENT.” Frankly, it is practically a case of GROSS Negligence causing irreparable harm to you financially, emotionally, and whatnot. The battle will be proving the lenders manipulated the markets which can be done…

The lawsuit is based on the investors losing money because the lenders committed fraud – predatory lending – etc - so why can’t you be suing THAT LENDER for the SAME REASONS. They LIED to YOU and deceived you to believing you were making a sound investment… If you can show that logically, why can’t you sue for the same reasons… After all even congress states that a home is the biggest “investment” most citizens ever make…
>>
Approaching the lawsuit from that perspective might force a hefty “write-down” of the principle.
>>
The other things to check out are the assignments and make sure all the paperwork is in order. Hitting them with a barrage of legal issues that you can substantiate using common means – might put a judge in a position to have broader discretion to base his decision.
>>
The other issue is the issue of Mortgage Insurance and the other insurances the lenders and investors had on the property. Think of it this way – if the house would have burnt down 5-months after you purchased it, you have been paid an insurance check to rebuild, etc. That money is usually written in the home owners & lender’s names – to assure the funds go towards the improvements to sustain the value. However, you could also simply apply the funds towards the note. So, if they paid you 800k to rebuild and the note had 800k remaining – you could forego the rebuild – payoff the note – and sell the lot. In other words those funds are CREDITED to YOU – why isn’t the mortgage insurance? Why are most borrowers FORCED to purchase mortgage insurance? Most state laws requires that ALL funds paid for the NOTE must be Credited to the NOTE FIRST… If that’s the case, then the NOTE was PAID OFF…
>>
If the NOTE was paid off, why are they suing? If the note is paid-off, why would even PAY the damn mortgage? You can believe they have been paid already…? Here’s another thought – if they sold the mortgage – weren’t they also PAID for it? IF they are paid, thus “transferred” the note – they were PAID in FULL…? So, where’s the debt?
>>
If your loan was dumped into the Toxic waste-bin, then they’ve definitely been paid the insurance. But what about the bailout funds? If they dumped the loan into a Toxic account, they were PAID by the FED. If the were paid, then there is NOT DEBT… If there is not debt, then what are suing for…? This changes the situation to a breach – but you signed the docs because your were “induced by the frauds committed by the lender who conspired with the appraiser…”
>>
If you house was sold via short-sale – could you afford that amount? How can it be justice if the law-breaker is getting the benefit – and the VICTIM is penalized…? So, how can it be a fair decision for a judge to allow the criminal (lender) to retain all the benefits – while furthering the damages of the victims…? I’m not sure how to say that but THAT is what I see going on in MOST of these cases…
>>
Sorry for the long winded response…

[scarylarry]

doghouse,
"Google your lawyer’s name then go to your state’s website that tracks cases – put his name in and see what turns up"
What would be a state's website that tracks cases in California? Why would I google his name then go to the state site?

[scarylarry]

Here's the link - it was filed in California..

http://www.btkmc.com/files/pdf_featu...Complaint1.pdf

This is to the "amended" complaint by Countrywide.

thanks doghouse.I think it is the one my lawyer was talking about.

[doghouse]

doghouse,
"Google your lawyer’s name then go to your state’s website that tracks cases – put his name in and see what turns up"
What would be a state's website that tracks cases in California? Why would I google his name then go to the state site?

Google up - YOUR STATE - "Judicial Case Search" - just put whatever state you are in and that should give some links to go by... Most require a password but they are usually simply to get - just ask via email or give them a call - and your done...

Another place to look will be YOUR STATE - "Land Records" Depending on the state you live in and their technology but most should have some sort of website to dig into...

You might even be surprised to simply put your Property Address - Account - Libor etc and see what that pulls up...

[bluebeta123]

which lawyers in florida i have to sign one on today and have found only one i have trust

[Do not want to lose it]

I will be updating any new info on the Ibanez case when I find it. This is one to be watched.
More Legal Commentary On Ibanez Foreclosure Decision From Real Estate Attorneys

by Richard D. Vetstein, Esq. on April 17, 2010 · 0 comments
in Foreclosure, Massachusetts Real Estate Law, Mortgage Crisis, Mortgages

Reporter Steven Altieri of the real estate trade journal Banker & Tradesman recently published an article on the Ibanez foreclosure case, Impending SJC Ibanez, Title Ruling May Invalidate Thousands Of Foreclosures, Why Real Estate Attorneys Expect The Worst, And What It Means To The Industry.
Since we’ve written about the case extensively here, Steve asked for my views about the impact of the case and recent matters I’ve handled with Ibanez title defects:

Framingham real estate attorney Richard Vetstein recently represented a family who had bought a house out of foreclosure about a year ago, then invested in excess of $100,000 in improvements to the property with the intention of selling it to their daughter. But before they could complete the sale, a title issue came up and put the transaction on hold.
In Vetstein’s client’s case, when the original owner was foreclosed upon, the mortgage company did not have a properly recorded assignment. To clear the title, Vetstein had to track down the original owner in Alabama, and persuade him to sign over the deed to the property.
“They can close now that the title issue is solved, but in a lot of cases that [is] not going to be able to be solved,” said Vetstein. “We were lucky, that’s what it came down to.”

Steve asked me how I would handicap the appeal of the case:

Vetstein, who has blogged on the Ibanez case at length, thinks the court might uphold the Ibanez decision.

“Given the current constitution of the court and their tendencies of recent years to be kind of moving towards some pro-consumer decisions, I wouldn’t be surprised if they upheld the land court probably by a slim margin,” Vetstein said. “And so for people who are stuck with an Ibanez issue, that is in essence the worst-case scenario.”
Indeed, it’s unlikely that a “pro-consumer” verdict upholding the Ibanez decision would actually help consumers on the whole. Home buyers or investors who thought they had gotten a good deal and a clean title on a foreclosed property will instead be saddled with hefty legal bills and an inability to sell their property.

Lastly, Steve asked if the Ibanez ruling has created an business development opportunties for real estate attorneys:

“I don’t know of any real estate attorney using Ibanez as a business development opportunity, mainly because solving these title defects, if at all, is incredibly difficult and in some cases impossible,” Vetstein said. “It’s a ‘lose-lose’ in many situations.”
One aspect of the case could potentially provide plenty of work for attorneys. Should the SJC uphold the Ibanez decision, Vetstein reasons that there will be many claims against the foreclosing lenders and the foreclosure attorney, for failing to convey good title.
“There will also be claims for rescission of these transactions,” he added. “There is a class action against lenders and foreclosing attorneys which could encompass many millions in potential damages.”

[cajunbell]

someone printing the answers - thank you!

[doghouse]

doghouse,
"Google your lawyer’s name then go to your state’s website that tracks cases – put his name in and see what turns up"
What would be a state's website that tracks cases in California? Why would I google his name then go to the state site?

Just suggestions to research your attorney.
California Courts: Opinions of the Supreme Court and Courts of Appeal
California Land Records

What you want to find out is HOW MANY cases your attorney has "litigated" - faced the COURTROOM - and how many wins - losses... Are they good litigators - do they even know what the heck they are talking about - you'd be surprised at how many are flat-out bs-ing their way through...

Most attorneys that I've seen dealing with foreclosures have very little knowledge of the mortgage law - zippo about TILA - RESPA - HOEPA (other than what ever reads on the web) and in MANY - MANY cases they worked for some damn company in human resources dealing the corporate gripes... I'm not kidding - what many of these attorneys are looking for is a dinner-ticket - they'll wait until the borrower is about gone insane - all the while they'll write a letter or two - talk a bunch of bs - but their game is to WAIT - WAIT - and WAIT longer - THEN after they've already cut the deal with the lenders - months before they tell their client - ca-ching - ca-ching - THEN suddenly the do their little hero-dance and half-crazed family gets a call... ring-ring - hey I think we got some good news today.... Then they'll go into their story how they had to wrestle that bad wolf but they did it all for their special client...

The goal is to find out everything you can about the attorney... How many cases have the actually taken to court & won. Have they ever even argued TILA laws - or any of the freaking mortgage laws - you'll be surprised to find out how many have NEVER - done anything but appear... Then when the judge orders the house sold - they simply look at their clients and say - hey, at least we gave it a hard go...

A good attorney - a REAL attorney will have NO problem explaining so of their cases. Folks tend to trust that these lawyers know what they are doing - I mean, surely they wouldn't attempt to represent a case in court and NOT a damn thing about that area of law...? RIGHT... These aren't ambulance chasers - these lawyers are the ones in the car CAUSING the damn accident. The lenders want to know in advance - so they pay their little turncoat attorneys to go start a Foreclosure Firm - totally illegal - but they do it all the time. Take folks last freaking meal money - knowing they is no-way they are going to save their home - they just want to squeeze out the last few drops of blood...

I know it sounds rude but that's what many are doing - and they LOVE webistes like these and others because that's how they hone their bs skills. These websites are VALUABLE and we NEED more - but we also need a way to weed out the bums from those who are not too lazy to WORK for the PEOPLE.