How are banks even able to foreclose?
Because (most especially the non-judicial states do not monitor the process through the courts. They are handled by way of trustee sale. It is a lack of regulations, transparency & greed that got us into the mess & leaves the homeowner with so many unanswered questions.
1. Why aren’t foreclosures more scrutinized by the system? (ie no more non-judicial foreclosures)
I think the entire system is corrupt! All the so called regulators are in bed with the banks. Heck, even the OCC was considering releasing BofA of any future criminal prosecution.
2. Don’t these fraudulent actions by the banks open a wide open door for Quiet Title?
It absolutely does, however; the banks know the average homeowner DOES NOT have the funds to take a quiet title action to court & follow though. Their attorney will certainly rack up lots of billable hours which will in turn cost the homeowner if they don't win. That in addition to the fees it may cost for the homeowners attorney. I was told it's highly possible to get in pretty deep 30-50k in attorney fees with still no guarantee of a win.
3. What will it take to prove that your loan was not securitized?
I took a stab at sending a letter to BofA that touched upon this issue along with many others. (See item C below). I was certain to ask questions that they either do not have answers to or even if they did, will not tell me because they wouldn't want to incriminate themselves in writing. Essentially I asked the following of BofA:
Please provide a written affidavit under penalty of perjury from someone who has first hand knowledge of the facts that stipulates the following:
a) The debt is valid and no discharge has occurred on this debt.
b) No tax credit was received for the discharge (if any) of the debt.
c) The debt has not been paid in full when the loan was securitized.
d) That Bank of America, N.A. has the authority to collect the debt on behalf of
(CWALT 2007-2B) G2.
Please also provide written proof from (CWALT 2007-2B) G2 that includes our loan number that gives your company the authority to collect the debt on their behalf.
Can one inquire which loans were subject to insurance claims?
That would have been a good question for me to include in my letter. Because once again, BofA is not going to be transparent with this information. Even if there's no PMI on your loan, the bank will still have it insured. As far as I'm concerned, BofA is double dipping on a lot of these loans. I just don't know how to get that concrete evidence.
By law, only the holder of the note can foreclose. If the debt servicer does not hold the note and you make payments or give-back your home to the debt servicer and then the TRUE holder of the note shows up, you are still liable for the note.
The only party that has a right to foreclose is the REIT. The real party of interest is the trust - a non taxable entity that can not own anything including property!
Here is another great resource of the 530 trusts included in the BofA settlement with investors. This info was posted by loansafe member Stephanies. Here's what she posted:
FreedomwonDetails of the proposed B of A settlement with the 530 Trusts listed has its own website at
Countrywide RMBS Settlement and you can find the 530 trusts listed under the court documents menu on the list side of the home page. Really interesting reading regarding the proposed settlement, and how each investor could later still go after B of A if the level of default exceeds what the settlement guidelines indicate. So you are right, B of A is really in deep on this one, as the liability is still there, and the $8.5 Billion is just like 'hush' money for these investors to not make the bank buy back the 530 Trusts! My favorite read on this site is the complaint and what violations these investors are accusing B of A of, as the master servicer here. Really major stuff. Happy Reading! You can also visit the attorneys web site who negotiated the settlement at
www.gibbsbruns.com/countrywide
Time for me to hit the sack. Goodnite!