Three Dozen Attorneys General To Launch Probe Into RoboSigning On Monday

Tyler Durden's picture Submitted by Tyler Durden on 10/10/2010 15:35 -0500

Barack ObamaDick BoveReal estateRealtyTracReutersTARPVolatilityWhite House

Perhaps the ruling Fed dictators can just go for a trifecta on November 3, and in addition to determining who wins the mid-term elections and announcing QE2, they can formalize TARP 2 as well. The reason is that starting tomorrow, 36 attorney’s general are expect to launch a joint probe into “charges some banks used fraudulent paperwork to kick struggling borrowers out of their homes.” Which of course means that Dick Bove is about to start appearing on CNBC every 10 minutes, providing instanalysis how banks have gone from overcapitalized to non-capitalized in the span of a weekend, under very “mysterious” circumstances. More from Reuters: “The source, who spoke on condition of anonymity, said the deadline for attorneys general to sign on to the investigation effort led by Iowa’s Tom Miller was at the end of the day Monday, so a formal announcement could be made Tuesday.”  Whether or not that call will also include demands for a moratorium remains to be seen.

There’s more:

At least half a dozen attorneys general have already announced individual investigations into the foreclosure mess.

The total number of attorneys general calling for an investigation is not precisely known but it is expected to be at least three dozen and possibly more.

At this stage, the joint effort is not expected to include a call for a moratorium, the source said, though some attorneys general have already done so in their individual states.

Many, including Miller, are running for re-election or election to other offices.

U.S. Attorney General Eric Holder said last week the Justice Department is looking into the widespread reports of bogus paperwork. It is not clear if the matter is under the jurisdiction of the states or the federal government but federal officials are looking into the matter, the source said.

President Barack Obama, however, opposes a national foreclosure moratorium, though he wants a quick resolution to any foreclosures that might have questionable paperwork, top White House adviser David Axelrod signaled on Sunday.

“I’m not sure about a national moratorium,” Axelrod told CBS television. “Our hope is that this moves rapidly and that this gets unwound very, very quickly.”

Banks are expected to take over a record 1.2 million homes this year, up from about 1 million last year and just 100,000 as recently as 2005, real estate data company RealtyTrac Inc. said last month.

There are many question marks around what will happen as a result of ForeclosureGate. One thing is certain: injecting fresh trillions of liquidity into a market, in which deleveraging courtesy of an immiennt plunge in home prices as prospective homebuyers decide to step away from the plate in a scandal in which nobody knows just who the titleowner is, will bring such waves of volatility to an already jittery market, that only the biggest and baddest will survive. As always, we recommend that everyone else quietly step aside and let the big boys cannibalize each other’s income statement. After all, everyone already knows theit balance sheets are pure magic.

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by citationneeded
on Sun, 10/10/2010 – 15:39
#639695

Can we pretty please use Fauxclosure instead of ForeclosureGate!

Login or register to post comments by traderjoe
on Sun, 10/10/2010 – 16:10
#639765

Yes. Or Fraudgate, Wheresthenote-gate, record-gate, document-gate. Anything that takes the meme from foreclosures and focuses on the much, much wider issue of origination/documentation issues.

Login or register to post comments by Conrad Murray
on Sun, 10/10/2010 – 16:35
#639808

My vote is for Fraudgate.  It should develop slowly though.  The average person still doesn’t understand what is happening, and Foreclosuregate will certainly be a more compelling title for the time being.

Login or register to post comments by Bob
on Sun, 10/10/2010 – 16:49
#639825

Good point.  But I hope that public understanding develops quick, because I don’t trust these pompous state AG’s to do it right.  The larger beast could end up being stillborn under their midwifery. 

Login or register to post comments by Keri at Bankste…
on Sun, 10/10/2010 – 18:29
#639914

x2 “Fraudgate”. 

My question is, what about the title insurance?  If you have banks collecting payments on houses they don’t legally own because they committed fraud during the mortgage origination, then the people who are making the payments, people who undoubtedly were required to obtain title insurance, are the victims of title fraud, and are entitled to compensation from the title insurance company, and may very well be entitled to the TITLE!  Where are the title insurance companies–which are all just financial institutions–gonna get this money?  Could this be why the market was run up like it was on such insanely low volume by the WFGM-funded and 0% Fed-funded HFT, to generate cash for the financials in anticipation of these events?  

That’s an honest question–I have no clue.  But I did write a little about it, and I manage to did find and link up several articles that develve into the title insurance issue a bit more:

http://banksterreport.blogspot.com/2010/10/massive-foreclosure-fraud-con…

There will hopefully be more analysis on this issue soon.  This is insane.  I bet the DJIA will shoot up 500 points tomorrow, and all the financials will be rallying to continue this fraud!

Login or register to post comments by MachoMan
on Sun, 10/10/2010 – 22:13
#640171

I think you’re confusing some issues here.  Banks do not own houses, banks have liens on houses.  If a bank owns a house, then that means either there was equity to be had in the house by ousting the owner OR something went terribly wrong and the foreclosure department didn’t get the memo from the accounting department. 

Also, how do you commit fraud on the origination of a mortgage?  Debtor goes into closing and gets keys to the house in exchange for signing a note and a mortgage…  now, what happens from there can get ridiculously technical, but the debtor has not been defrauded regardless of what happens to the assigns of the mortgage instrument…  now, investors would be a totally different ballgame (GSEs).  The fraud occurs in falsifying documents before the court claiming you are the rightful party to bring a foreclosure suit, however the mortgage is still a viable instrument, it’s just that priority of that mortgage may be different than alleged.  For example, if you claim you are the first, but yet in the assignments of that mortgage, you failed to properly follow any necessary formality, then you’re probably not a first any longer.  (it’s not just homeowners that are going to be seeking to invalidate foreclosure proceedings).

Further, banks collect payments on notes as the servicing parties of the notes.  The bank does not need to have an ownership interest in a home in order to rightfully collect payments on the notes…  all they need is an agreement with the assignee of the note.

Last, an action to collect on a title insurance policy is not going to divest the true owner, whoever that may be, of title to the property.  The purchaser at a foreclosure sale is simply going to be made whole for his/her purchase and likely any improvements made to the property while living there/owning it.  If the purchaser at a foreclosure sale is to divest the true owner of title, then there will need to be a court determination on the merits…  this will depend on a great many things including, but not limited to, notice provided to defaulting debtor, whether defaulting debtor made an appearance in the foreclosure case, whether defaulting debtor has a meritorious defense, etc.

I’ve said it once and I’ll say it again, prospectively, the lienholders will get their shit together before proceeding…  however, retrospectively, title insurance companies as well as the banks are in for a shitstorm of lawsuits…

Login or register to post comments by Attitude_Check
on Sun, 10/10/2010 – 22:27
#640189

The debtor is defrauded if they can not get clear title when they pay-off the note either at a sale, or after 20+ years of paying the note.

Login or register to post comments by tom a taxpayer
on Sun, 10/10/2010 – 17:09
#639844

 

Mortgage-Frauds-R-Us-gate.

No down payment. We have a mortgage fraud for that.

No can afford monthly mortgage payments. We have a mortgage fraud for that.

No documentation. We have a mortgage fraud for that.

No job. No income. We have a mortgage fraud for that.

No satisfactory appraisal price. We have a mortgage fraud for that.

No proper origination documents. We have a mortgage fraud for that.

No AAA rating for securitization. We have a mortgage fraud for that.

No legal transfer of note. We have a mortgage fraud for that.

No clear title. We have a mortgage fraud for that.

No time to review and legally process thousands of foreclosures. We have a mortgage fraud for that.

No money in banks to pay multi-billion mortgage fraud claims. We have TARP II mortgage fraud upon taxpayers due to aiding and abetting by Fed, Treasury, and Congressional bank puppets.

 

 

Login or register to post comments by What_Me_Worry
on Sun, 10/10/2010 – 16:10
#639769

I like it!  +1

Login or register to post comments by G-R-U-N-T
on Sun, 10/10/2010 – 16:22
#639787

“As the Revolving Fauxclosuregate Turns”

Login or register to post comments by merehuman
on Sun, 10/10/2010 – 17:20
#639857

sunday 300 pm pacific. Markets just opened, USD @77.00  yikes

Login or register to post comments by firstdivision
on Sun, 10/10/2010 – 17:04
#639834

How about a OopsMyBad-gate!

Login or register to post comments by DaveyJones
on Sun, 10/10/2010 – 22:44
#640216

fourleafclosure: good luck getting title

Login or register to post comments by LostWages
on Sun, 10/10/2010 – 17:21
#639859

A French sounding name might give it some sex appeal….”Menage-a-Fraud”.

We do have an unusal threesome going here…homeowners, banksters and investors.

 

Login or register to post comments by Temporalist
on Sun, 10/10/2010 – 22:42
#640213

Why is everything gate anyway?

 

How about White Picket Fence Gate?

 

I like Fauxclosure.

Login or register to post comments by PeterB
on Sun, 10/10/2010 – 15:40
#639697

Even the worm turns

Login or register to post comments by Millivanilli
on Sun, 10/10/2010 – 16:06
#639750

Too Big to Fail = Too Big to Jail

Welcome to the plutocracy of the United States.   Steal a candy bar go to jail. Steal a billion get a bonus.  All of this SHIT IS RUBBERSTAMPED BY THE FUCKERS IN CONGRESS. 

 

 

Login or register to post comments by JLee2027
on Sun, 10/10/2010 – 21:44
#640117

Too Big to Fix

Login or register to post comments by williambanzai7
on Sun, 10/10/2010 – 20:20
#639698

Dick Bove is too busy fighting with Chase over his mortgage mod.

How about Fraud-closure?

Stux Not

Login or register to post comments by JLee2027
on Sun, 10/10/2010 – 15:42
#639702

“I’m not sure about a national moratorium,” Axelrod told CBS television. “Our hope is that this moves rapidly and that this gets unwound very, very quickly.”

 

Thanks for the laugh. Events are out of your (Federal) control.

 

Login or register to post comments by taraxias
on Sun, 10/10/2010 – 15:49
#639715

Sadly, Axelrod is not making a prognostication, he is TELLING you this will move very very quickly.

Anyone who thinks that the Government is not going to quickly sweep this under the rug (AGAIN) for the banks is being naive.

Login or register to post comments by Harbourcity
on Sun, 10/10/2010 – 16:09
#639760

Not going to happen – it’s too big. 

This is where the worm turns.

Login or register to post comments by Cammy Le Flage
on Sun, 10/10/2010 – 16:25
#639792

Can’t happen.  More than one artery busted……

Login or register to post comments by Uncle Remus
on Sun, 10/10/2010 – 17:05
#639835

The dog in your avatar pic is great – looks like its having a blast.

Login or register to post comments by Cammy Le Flage
on Sun, 10/10/2010 – 17:26
#639863

It is having a blast.  It has many human slaves that work tirelessly to:  feed it, water it, give it its own bed (although since said dog is a human slave owner all beds are his), clean up his ca ca, massage him upon request….he does nothing for any of this except sleep and pee on things outside.  And be cute as all.  It is laughing at all of us humans right now and saying – “don’t panic – cant you eat dead bird or rat?  Oh, that is right….It is good to be the King.” 

Login or register to post comments by MsCreant
on Sun, 10/10/2010 – 17:34
#639876

Yeah I’ll be king when dogs get wings

Login or register to post comments by Miles Kendig
on Sun, 10/10/2010 – 22:49
#640220

🙂  Great Pom Teddy

Login or register to post comments by Uncle Remus
on Sun, 10/10/2010 – 17:51
#639895

pee on things outside.

There’s your accommodation for serving the master well – peeing (and I am assuming ca-ca) outside.

Login or register to post comments by Careless Whisper
on Sun, 10/10/2010 – 21:39
#640110

@ harborcity

yes, this is too big.

one minute i held the key, next the walls were closed on me,

and i discovered that my castles stand, upon pillars of salt and pillars of sand.

 

 

Login or register to post comments by traderjoe
on Sun, 10/10/2010 – 16:25
#639793

For all those that whine about how this will be swept under the rug, ignored, or otherwise funded by a tax-payer bailout – instead of whining, DO SOMETHING. This is our moment, our chance. Unlike in prior bailouts with crisis’s that came quickly and be blamed on a variety of parties, the banks CANNOT BLAME ANYONE ELSE FOR NOT DOING THEIR JOBS (and not transferring notes, proper underwriting, avoiding centuries of RE law, etc., etc.). And then for covering it up by kicking people out of their homes without due process and committing fraud upon the court.

DO SOMETHING. Any one that doesn’t, and still complains, deserves what they eventually get.

Some ideas:

Write your state AG to ask them to participate in any investigation. Bring in the MBS issue. Express concern about your own title. Use a friend/family member as a story. Discuss the rule of law. How white collar crime is just as damaging to the health of our society. Ask that they halt foreclosures, but also look deeper into the original sin of this.

Write your hedge fund, pension administrator, bond mutual fund, bond ETF manager to inquire about their knowledge of the situation and if their RMBS has appropriately secured positions in the underlying assets. 

Write an editorial to the paper, asking for them to report on this. Discuss a couple issues. Warn your fellow citizens about the health of their society.

Write to your senators and representatives (state and national) – that they support an investigation in this. Warn them about the idea of bailing out the banks again.

Write a letter to your bank asking for proof of title/loan ownership. I’ll scan the web to see if any already exist.

Inform any friends/family in foreclosure or near it of this issue, and its possible ramifications.

Move any checking accounts/money out of the TBTF banks.

Post some information on MSM website/blogs to correct their interpretations of this as just some technical documentation issues.

Any other ideas people have to take action? What would happen if 100,000 people simultaneously asked for proof of loan ownership/standing?

It may not be much for now, but movements start small and grow until they hit the tipping point. That would be our aim.  

Login or register to post comments by cdskiller
on Sun, 10/10/2010 – 16:43
#639820

+1 You got it, brother. Been on it for several days. Read Floyd Norris about H.R. 3808. Call and write media people and your reps about what a disgusting bi-partisan cover up it is.

Nobody wants to look at this because, oh, I don’t know, it’s the biggest fraud in the history of the capital markets, the greatest heist in the history of the world. The saving grace may be that the ugly battle between junior and senior tranche holders will become so bloody that the entertainment value of the splatter will be impossible to ignore.

Login or register to post comments by Blankman
on Sun, 10/10/2010 – 20:01
#639939

Here is some help.

 

http://www.usa-the-republic.com/jurisprudentia/foreclosures/index.html

Login or register to post comments by Bob
on Sun, 10/10/2010 – 16:55
#639828

You rock, TJ!  This truly is an opportunity the likes of which the common man has never seen before. 

I will get busy just as you suggest.

We all know: It’s now or never. 

Login or register to post comments by fxrxexexdxoxmx
on Sun, 10/10/2010 – 21:05
#640035

This bill passed both bodies and is awating 0bama’s signature as we talk:

 

A bill that would make it more difficult to challenge the legality of documents related to foreclosures has passed Congress and is awaiting President Barack Obama’s signature.

 

http://www.dailyfinance.com/story/credit/bill-that-would-aid-foreclosures-awaits-presidents-signature/19664660/

 

double posted

Login or register to post comments by bob_dabolina
on Sun, 10/10/2010 – 17:13
#639843

taraxias –

Jlee was implying that this is not in Federal jurisdiction. It is a state issue, and as such, Obama has no control over the situation.

It is in the hands of each states AG. So, if Bill McCollum over in Florida puts on a foreclosure freeze, than…there is a foreclosure freeze in Florida.

This is why you haven’t seen Eric Holder anywhere.

Login or register to post comments by Fred Hayek
on Sun, 10/10/2010 – 20:19
#639959

Well, that and the fact that Eric Holder is a corrupt, utterly politicized useless piece of shit (and also a dead ringer for Oprah’s former(?) boyfriend).

Login or register to post comments by MachoMan
on Sun, 10/10/2010 – 22:25
#640188

But it is a federal issue….  first, it is unconstitutional for states to blanket ban foreclosures…  there are some foreclosures that are properly conducted (I do them).  Once this is understood, then you get back to the whole point that it’s already illegal to do what has been done…  no need to do anything but enforce existing law…  not make knee jerk reactions on new ones.

It becomes a federal issue because at the drop of a hat, since the GSEs own all the mortgages, obama says “stop foreclosing”.  Simple as that…  In other words, prospectively, there will be no more “i’m going to punish you for filing this lawsuit by completely voiding the mortgage instrument”…  all that is left to contain is the retrospective application of the fraud…  and finding them is going to be difficult…  it will be the burden of the foreclosed homeowner to prove fraud occurred.  Further, the foreclosed homeowner is going to need to be able to come up with a convincing argument to keep the house (that has probably been promptly sold to a disinterested third party, for value).  I also find it highly doubtful that the defaulting homeowner is going to be able to use his/her title insurance to file the lawsuit…  my guess is that title insurance companies are not going to be on the hook for defaulting homeowners…  effectively, no harm no foul.  If the defaulting homeowner gets it back, then there are no damages…  if he/she does not, then what are the damages when he/she was in default anyway?

It is a federal issue because there will be a federal clearinghouse established to determine the proper party/lienholder to bring the foreclosure actions…  this will create a legal precedent that prohibits state courts from denying…  the issue will be over.

Login or register to post comments by Attitude_Check
on Sun, 10/10/2010 – 22:36
#640203

The States have VERY CLEAR title transfer laws.  That is clearly a State not Federal jurisdiction.  If the title has not been properly transferred that a final foreclosure cannot happen, until proper title has been transferred to the party that has the note – or else they have no standing in the court and can’t foreclose.

Login or register to post comments by Attitude_Check
on Sun, 10/10/2010 – 22:32
#640200

Since “sweeping it under the rug” requires State government to go along – it will not be so easy.  Also since many of the owners of the deficient MBS bonds are foreign (including Central Banks) this is an international problem.

Login or register to post comments by DaveyJones
on Sun, 10/10/2010 – 22:53
#640226

a string of excellent comments AC, thanks

Login or register to post comments by williambanzai7
on Sun, 10/10/2010 – 20:48
#639998

To me it shows that this is just another situation they do not understand.

Login or register to post comments by Zerohedge fan
on Sun, 10/10/2010 – 15:47
#639711

Where is my free home?????

Should I still pay my mortgage or should I stop paying, now!?

“…there is no going back”

“….Tyler, you changed things, forever”

“….you complete me”

 

 Joker

 

Login or register to post comments by vote_libertaria…
on Sun, 10/10/2010 – 15:48
#639714

….soooo this news means stocks will be up 2% tomorrow, right? 

 

Complete financial and banking chaos at 57 levels = gooder for stocks???

Login or register to post comments by mynhair
on Sun, 10/10/2010 – 15:57
#639732

Up 5% on Tues.  Monday is a holiday, remember?

U European, or are you just happy to see me?

Login or register to post comments by Hansel
on Sun, 10/10/2010 – 16:28
#639799

Stocks are open tomorrow.  Bonds aren’t.  Columbus Day is and has been a great day to pump stocks because of the lower volume.

Login or register to post comments by merehuman
on Sun, 10/10/2010 – 17:22
#639860

will tommorrow be the market drop, tank, to save the dollar? Would it even work and is that their(Fed) desire

Login or register to post comments by steveo
on Sun, 10/10/2010 – 15:53
#639722

The middle chart is GLD/SLV. You can see this is an excellent indicator, when this ratio is at a bottom, the market usually tanks, within 3 to 5 days, but sometimes immediately. The trick is figuring out when the bottom is. 
 
This top chart is SPY/VIX I plotted it just to see if any interesting effects came up….none really 
 
The Bottom chart is SPX, the S&P 500, follow each purple line from the GLD/SLV bottoms. Amazing methinks. The two highlighted candle patterns are similar, the first one started the Head of the infamous 2009 Head and Shoulders Bear trap. The second one is NOW. 
 
And finally, a boatload of other charts for your free consumption. 
 
Like this stuff? Sign up as a follower and then follow on your Google reader. 
 
http://oahutrading.blogspot.com/

Login or register to post comments by mynhair
on Sun, 10/10/2010 – 15:53
#639726

Grand Theft Homeo XX bitchez!

Login or register to post comments by Testicular Cancer
on Sun, 10/10/2010 – 15:55
#639731

Am I the only one that feels the timing of this thing is convenient or orchestrated. Why is this an issue NOW? This could have been brought up anytime in the last 2 years. I smell a rat.

Login or register to post comments by mynhair
on Sun, 10/10/2010 – 15:58
#639735

Yes, you are the only one.  The break-in up in Orlando was the avalanche trigger.

Login or register to post comments by Fred Hayek
on Sun, 10/10/2010 – 20:24
#639965

That and the other guy in Florida, Gordensky or something like that, who had paid cash for his home and, incredibly, found that Bank of America had somehow foreclosed on him.  What a great story that was.  Can’t blame the victim in that case when the guy didn’t even *have* a freaking mortgage.

Login or register to post comments by Mitchman
on Sun, 10/10/2010 – 15:58
#639734

This is bad news as putting these individual investigations together will make them easier to manipulate by TPTB.

Login or register to post comments by Fred Hayek
on Sun, 10/10/2010 – 20:26
#639967

Excellent point!

36 separate AG’s also have the chance that one completely on the up and up AG will be able to get to the bottom of things in his jurisdiction.  With 36 of them together, you just know that the corrupt, placeholder, campaign finance money whores will overwhelm the few good ones.

Login or register to post comments by Saxxon
on Sun, 10/10/2010 – 22:01
#640153

Fred that is exactly why they are being funnelled into one caption and that is exactly what will happen.  No way can they risk dissent.

Login or register to post comments by bugs_
on Sun, 10/10/2010 – 15:59
#639737

Oh its going to move rapidly and get unwound very very quickly.  You betcha.

Login or register to post comments by ThisIsBob
on Sun, 10/10/2010 – 16:01
#639741

Is it the banks and their management?  Or is it the services and lawyers they hired to do a job?

Login or register to post comments by RobotTrader
on Sun, 10/10/2010 – 16:03
#639746

Greece gets another bailout.

http://noir.bloomberg.com/apps/news?pid=20601087&sid=awPrv1WAWmR8&pos=1

Euro is going vertical on this news.

 

Login or register to post comments by Mitchman
on Sun, 10/10/2010 – 16:16
#639756

.

Login or register to post comments by Mitchman
on Sun, 10/10/2010 – 16:10
#639757

Robo, the question continues to be can they keep the dishes spinning on the ends of the sticks and if so for how long?  I wince when I see your “good” news worrying that when the crash comes it is going to be painful beyond belief.

Login or register to post comments by Hulk
on Sun, 10/10/2010 – 17:10
#639848

Au and Ag also

Login or register to post comments by MsCreant
on Sun, 10/10/2010 – 17:16
#639851

Yup!

Login or register to post comments by Harbourcity
on Sun, 10/10/2010 – 16:10
#639768

Well they wanted to devalue the dollar…

Login or register to post comments by Eureka Springs
on Sun, 10/10/2010 – 16:20
#639784

Now, because the lame duck session is coming up next. The looting of Social Security will/can only be dwarfed by this kind of fiasco. Move quickly means – bipartisan retroactive impunity.

Login or register to post comments by frankTHE COIN
on Sun, 10/10/2010 – 16:26
#639794

When they get a handle on this mess down the road, a house at foreclosure thats worth $ 500,000 will go for $ 100,000 because they will dump them all on the mkt at the same time.

I used to go to the forclosure auctions when they only had 50 on the courthouse steps. Today they are held in standing room only convention centers with thousands of foreclosures.

Login or register to post comments by Steroid
on Sun, 10/10/2010 – 16:28
#639798

Are there anybody out there who can help? Is there an easy, fast and independent way to check who owns the title on an individual real estate and how it is connected to the banks and servicers?

Login or register to post comments by Janice
on Sun, 10/10/2010 – 16:46
#639811

Not any more.  Now, you can pay for ten years and have a primary CDO holder foreclose on your current mortgage.

 

Here’s what I found out.  According to my locally elected Clerk of the Court, the FLORIDA LEGISLATURE changed the real property laws in Florida so that if a mortgage was transferred as a “business transaction” then the note did not have to be recorded.  So, our mortgage was initially recorded, then sold to ABN AMRO and recorded…however, ABN AMRO sold their mortgage servicing arm to Citibank, hence, a business transfer.  I have ordered my mortgage documents from Citi.  IF my mortgage documents say anything about “being recorded upon transfer,”  I am forwarding the whole thing to the Florida Attorney General because Citi would be in default of my mortgage contract.  This is the only hope that I have of a properly recorded mortgage.

Login or register to post comments by MachoMan
on Sun, 10/10/2010 – 22:30
#640195

God damnit this is getting tiresome.  Look, if you signed a mortgage, there is a rightful party out there who can legally divest you of title to your property if you default.  period.  end of story.  The only way you’re going to get out of your mortgage is if some financial institution is stupid enough to try and foreclose on you without the ability to do so…  good luck with that at this point.

The only thing recording a mortgage does is determine priority…  it’s still a valid contract between you and the mortgagee and its assigns… 

Login or register to post comments by Janice
on Sun, 10/10/2010 – 22:55
#640229

Nothin’s sacred, ehh?

We are paying our mortgage, we are current.  My fear is that we pay the house off and there is no one to issue a satisfaction (cause they damn sure don’t want to record an assignment) OR that the primary holders of the CDO decides that we haven’t been paying the correct party or that the CDO’s rights are superior to our servicer OR that ANY ONE can just come in forge a document and “become” our mortgage holder…..but that would never happen, right?  We used to have real property rights that protected us from all this.

Login or register to post comments by blunderdog
on Sun, 10/10/2010 – 23:55
#640305

…there is a rightful party out there…

Yeah, but who?  No one can PROVE it.

Who owns the house?  Who holds the lien?

It’s not a trivial problem, apparently, although one would think it should be.  I mean…the world hasn’t gone completely MAD.  There’s a perfectly good explanation for all this!

Right?

Login or register to post comments by Conrad Murray
on Sun, 10/10/2010 – 16:41
#639818

Not exactly what you’re after, but it’ll get you started:

http://4closurefraud.org/2009/10/18/foreclosure-fraud-guide-to-looking-u…

Login or register to post comments by Steroid
on Sun, 10/10/2010 – 17:10
#639846

Thanks Conrad. It is amazing (and scary).

Login or register to post comments by JLee2027
on Sun, 10/10/2010 – 16:50
#639826

If there was, there would be no mess.

Login or register to post comments by Miles Kendig
on Sun, 10/10/2010 – 16:55
#639807

Now that Governor Wm. J. LePetomane has said hurrumph we’ll see some serious action …

ROFLMAO

Login or register to post comments by buzzsaw99
on Sun, 10/10/2010 – 16:43
#639819

foreclose me if you can bitchez! 😛

Login or register to post comments by MrTrader
on Sun, 10/10/2010 – 16:52
#639827

Your chance to short Bank of America and Mr. Paulson into the darkness of the universe. Payback time ! Strong sell.

Login or register to post comments by unemployed
on Sun, 10/10/2010 – 16:56
#639829

  Banks taking over 1.1 million homes?,    They are putting over 500,000 a quarter into foreclosure.

“The percentage of loans on which foreclosure actions were started during the second quarter was 1.11 percent”

http://www.mortgagebankers.org/NewsandMedia/PressCenter/73799.htm

 

 

 

 

 

 

Login or register to post comments by three chord sloth
on Sun, 10/10/2010 – 16:58
#639830

I am deeply suspicious of all this crap. Why do I have a nagging feeling that these attorneys general are unwittingly playing into the hands of someone with a long term plan?

Why did TPTB let something as obviously flawed as this go on so long?

Is there any way the federal government can end up owning the notes, and be the only one who could bring foreclosure actions?

Is there any way the federal government can use their newly acquired ownership of these notes as collateral for “loans” from the Federal Reserve? Could this all end up with the Fed owning the mortgage notes to half of the housing in the country?

Login or register to post comments by Bob
on Sun, 10/10/2010 – 17:05
#639837

That would seem to be the threat under a multitude of scenarios we face today.  Taking down the banks appears to be our best chance of avoiding that, imo.

Login or register to post comments by tom
on Sun, 10/10/2010 – 17:05
#639836

Tyler, you seem to think the foreclosure mess mainly hits banks, but why? According to H8, they are holding only $180 billion of total private MBS. Probably less than $140 billion of that is private single-family MBS. That’s less than 10% of the total outstanding $1.4 billion of private single-family MBS.

Seems to me this mainly hits the so-called shadow banking sector. It might hit foreign banks harder than our own.

It also hits the federal government, through the GSE/agency MBS. That explains Axelrod’s sentiment, and the notarization bill. State and local governments also lose out on property taxes.

These AGs are just making political hay while the making’s good. Their interest will dissolve as soon as the election’s over. Then the federal sweep-it-under-the-rug team will get back to work.

Login or register to post comments by A Man without Q…
on Sun, 10/10/2010 – 17:52
#639897

It hits the banks in their role as originators, servicers and sponsors of the trusts.  If there is securities fraud, they are the ones who have committed it and therefore the investors have the right to demand compensation under Reps and Warranties.  The ones owing the risks might actually benefit from this, as it gives them the potential to recover losses, even demand their money back.

Login or register to post comments by Ned Zeppelin
on Sun, 10/10/2010 – 20:32
#639975

Surely you mean Trillion, not $1.4 billion. And don’t forget the synthetic CDOs built on top of the CMBSs.

I am guessing the federal/GSE loans are not infected by faulty assignments. Remember, the GSEs actually funded a fairly small portion of the Bubble – the private MBS market did the heavy lifting.  This is all about the private, Bubble era, MBSs having fatal defects.

Login or register to post comments by no life
on Sun, 10/10/2010 – 17:08
#639841

I think we should call this.. Foreclosuregate.

Login or register to post comments by wiskeyrunner
on Sun, 10/10/2010 – 17:08
#639842

Wow look at the stock futures go, the usual straight up rock ride blasting off.

Login or register to post comments by bob_dabolina
on Sun, 10/10/2010 – 17:21
#639858

2 /ES points is a rock ride blasting off?

Login or register to post comments by BurningFuld
on Sun, 10/10/2010 – 17:18
#639853

If I had a mortgage I would toddle on down to my local Bank and ask them for a copy of it. I would be prepared to pay any fee they would need to produce it.  At this point in time I would definitely make SURE everything was in order…………..just sayin’.

Login or register to post comments by Janice
on Sun, 10/10/2010 – 17:45
#639890

My thoughts exactly.  I have ordered my mortgage documents and will go over them with a fine tooth comb.  If there is anything about the assignment being recorded upon transfer, I will turn the whole thing over to the Attorney General because the note holder would be in default of my mortgage contract.

Login or register to post comments by RockyRacoon
on Sun, 10/10/2010 – 21:27
#640073

Why do you not have copies of all your mortgage documents?  Didn’t you walk out of closing with a nice, fat file?  I have all mine from the  2003 purchase, as well as the ones from my prior house which closed in 1988.

Login or register to post comments by watmann
on Sun, 10/10/2010 – 17:19
#639855

looks to me as if the banks have learned nothing. they are foreclosing on loans pretty much they way tehy originated them…fruaduently allegedly

Login or register to post comments by New_Meat
on Sun, 10/10/2010 – 17:27
#639864

“I’m not sure about a national moratorium,” Axelrod told CBS television. “Our hope is that this moves rapidly and that this gets unwound very, very quickly.”

Heck yah, ol’ Axe will just dust off the Chrystler Bond Playbook–more slop for the unions.  In the pocket supreme court justice; all good.

And no, he doesn’t want the unwind over the next month.

– Ned

Login or register to post comments by plocequ1
on Sun, 10/10/2010 – 17:35
#639869

I rent and will never buy a house. The only banks i do business is Barclays ( Financed my Macbook Pro ) and Chase. They have NEVER bothered me once and never touched my Interest rate because i pay on time and give them payments in big chunks. Im not sticking up for Banks, But lets face it, They are there when you need them. They only ask you make your payment on time. I have no complaints with doing business with Barclays and Chase.  There i said it!! Thanks Barclays for being there and helping me with my purchase.

Login or register to post comments by bob_dabolina
on Sun, 10/10/2010 – 17:43
#639883

So when Chase approves a $1.5 million loan to my pet chimp and my pet chimp can’t pay and the government forces you to cover that loan than that is all good and banks are just doing their job?

yeah…thanx chase.

Login or register to post comments by plocequ1
on Sun, 10/10/2010 – 17:59
#639906

I know Its not right, Im just saying my experience with banks are very simple and pleasureable. Just keep it simple and pay on time. Thats all they ask.

Login or register to post comments by bob_dabolina
on Sun, 10/10/2010 – 20:08
#639950

So, If you know it’s not right, and you find that treatment pleasurable…

I’m just confused. Nevermind.

Login or register to post comments by Bob
on Sun, 10/10/2010 – 20:23
#639961

Catholic, perhaps?

Login or register to post comments by Careless Whisper
on Sun, 10/10/2010 – 21:55
#640145

@plocequ1

 never touched my Interest rate because i pay on time

no, they never touched ur interest rate because 22.99% is fine with the mafia banksters

im surprised that someone smart enough to buy a mac would go for the barclay’s 22.99% interest charge card.

http://store.apple.com/us/instant_credit?mco=MTg4Mjg4OTU

 

 

Login or register to post comments by JLee2027
on Sun, 10/10/2010 – 22:15
#640173

Now that’s wrong to say. I’m Catholic.

Login or register to post comments by bob_dabolina
on Mon, 10/11/2010 – 02:02
#640361

Login or register to post comments by blunderdog
on Sun, 10/10/2010 – 20:39
#639985

I don’t do any banking with the big’uns, but I do have an amusing relationship with Barclays.

I got one of their credit cards a few years back, when it had no annual fee and something like 15% interest. I’ve used the thing about 4 times.  They sent me a letter saying my interest rate is now 29%.  Or maybe it was 35%.  Whatever. 

Every year, I see an annual fee in June (maybe July, I just know it’s a warm month).  So every year I call their friendly customer service people and tell them to cancel the card.  They ask me to reconsider.  I say no.  They offer me free membership in a rewards program.  I say no, ’cause I never use the card.  They offer to reduce the fee.  I say no, when I got it it was free, and I’m not going to start paying a fee.  Then they transfer me to someone who BEGS me to keep the card and agrees to waive the fee.  I agree to keep it.

I dunno, I’m easy to please I guess, but I always get a kick out of that.

I don’t think I’d say it’s “pleasurable,” tho.

Login or register to post comments by RockyRacoon
on Sun, 10/10/2010 – 21:30
#640085

They’re hoping you’ll need it as a life line some day.  They you will be in a set of circumstances where you can’t pay it all off in the first month.  You’re stuck with high interest rate.  I’d shut ‘er down, but it can affect your credit rating — if that’s something you care about.

Login or register to post comments by blunderdog
on Sun, 10/10/2010 – 21:51
#640137

I’ve been fortunate enough to have already experienced the destitute lifestyle. 

A credit-card will never again be any kind of “life-line” for this dog, no siree.  If I ever max it, it’s because I’ve decided I’m skipping out on civilized society and ready to die with my boots on.  I don’t expect it to come to that, but hey…we all do what we can.

I can’t decide whether it’s optimism or pessimism, but I lean in the direction of thinking that I’m going to outlive Barclays.

Login or register to post comments by Saxxon
on Sun, 10/10/2010 – 22:03
#640157

Careful Blunderdog; I know of a German guy who said fuck it, went to Pattaya in So. Thailand, fucked and drank for two years on $120,000 and when it ran out he jumped from a hotel window.  Brother it’s a hollow feeling…

Login or register to post comments by blunderdog
on Sun, 10/10/2010 – 23:05
#640247

Glibly, I’d just quip that given my credit limit, I’d be lucky to manage 2 WEEKS!  😉

But more sincerely, totally agreed.  As I said, I don’t expect it to come to that.

Self-destruction is by far the easiest, and emptiest, of life’s paths.

The thing that occasionally hurts me is when I see the folks doing it who don’t even *know.*  About two decades back I watched an older man drink himself to death while hating the job he worked every day and despising every single one of the people he lived with.  At the time, I wasn’t wise enough to care or try to help.  I catch the occasional glimpse of that guy’s soul posting here, I think.

The worst of both worlds.  Hell exists.  It’s right here, and you can find it if you look.

(On a personal level, I thank you for the kind words.)

Login or register to post comments by Temporalist
on Sun, 10/10/2010 – 23:14
#640260

I thought that is what credit cards are for…

Login or register to post comments by MiningJunkie
on Sun, 10/10/2010 – 17:32
#639875

The bankster’s are sensing a hyperinflationary ramp, in which replacement cost of housing will go parabolic. Accelerating foreclosures means they can show the assets on their balance sheets by the time Jan Lumber trades at $1,200 which means Case-Schiller average home price is $1,000,000. 

Homeowner loses, banksters win, politicians get cashed up with campaign contributions just in time for the Federal elections. 

None of this crap would be happening if the deflationary collapse was in the cards. Who would want title to a collapsing asset?

 

 

Login or register to post comments by TraderTimm
on Sun, 10/10/2010 – 17:37
#639878

I’m sure an amusing cartoon involving the three little pigs fairy tale and the banker wolf trying to ‘blow their house down’ could be fabricated with hilarious results.

Gallows humor, more people will suffer before the bank-tards get their act together. Is this a “The center cannot hold” moment we are witnessing? Sure feels like it.

Login or register to post comments by Roscoe
on Sun, 10/10/2010 – 17:43
#639886

In my county you can look at the foreclosure docs online at the county’s website. I’ve been having fun looking at all the different signature styles for the same notaries, and all the different looking doc date stamp styles (perhaps cut and pasted from other foreclosures to get ‘correct-looking’ docs?). I used to peruse the docs just to see the dumb loan provisions people would sign for, but now, because most of the foreclosures are run through just a few law firms, it’s easy to spot inconsistencies in the look of the docs and the date patterns.

I’m surprised that local news folks or consumer advocates or legal beagles aren’t simply doing this instead of just reprinting the few publicly-paraded examples. I’ve been downloading copies to a file, just in case they get ‘disappeared’…

If you want to have fun playing along with this slow motion train wreck at home, just Google foreclosure records in your county and see what kind of a document sleuth you and your family might be. If your county doesn’t provide a site like that, just pick one that does. Why simply write a flamer to the editor when you can include links or screen grabs of real foreclosure docs?

More fun than a barrel of Mozilos!

 

Login or register to post comments by The Alarmist
on Sun, 10/10/2010 – 17:44
#639888

I don’t suppose I could still take out that no-doc 105% LTV mortgage so I too can strategically default like all my neighbours. OK, how about 80% LTV and we’ll call it a draw.

I feel like a total patsy having paid cash a couple years ago (too much Dave Ramsay I guess).  Even though most people borrow to buy, there are enough of us schmucks out here to breathe some life into Lorenzo’s hypothesis that a silent revolt is a coming.

 

Login or register to post comments by Uncle Remus
on Sun, 10/10/2010 – 17:48
#639892

So, where’s the closure?

 

Login or register to post comments by tahoebumsmith
on Sun, 10/10/2010 – 19:34
#639929

Now that the scandal has turned into the 50 State crisis it’s game on. The government is going to intervene and end up controlling the entire mortgage industry. They are already in over their heads with Fannie and Freddie so they need this crisis to silently grab the rest, cover up the fradulent mess, and in the end it will look like they saved America once again. Look at the past year’s housing figures and you will understand. 85% of loans were either FHA or were backstopped by the government, and oh, here’s 8000 dollars for your downpayment. They have vowed to give Fannie and Freddie unlimited support, what ever it takes. If your looking for a grim outcome regarding the banks, forget it… look no further then AIG. The cronies that caused the subprime meltdown which led us into the abyss should have been jailed but instead they were paid  100’s of billions in CDS at 100 cents on the taxpayer dollar. So you think this whole title mess just happened by mistake? I don’t! I think the banks knew all along this would end up as a litigation nightmare that would need a government bailout and all the toxic sludge they were generating would just end up on the taxpayer’s backs in the end. How convienent, just before the whole ball of fluff came unraveled. I mean who is is the deepest? I think it’s the FED, and I think all the MBS purchases over the past year was done for a reason. You don’t think Bennie and his pets didn’t know about this? I’m not convinced that this whole mess wasn’t part of the original plan when they drummed up this synthetic ponzi. It was supposed to end this way so the control of America’s largest assets would end up in the control freaks hands where they want them. History just repeating itself, over and over again.I’m convinced that once the dust settles and the Government is in control they will re-finance everybody at low FHA rates. Underwater? no problem…Cram you down. Haven’t paid for 2 years? No problem..sign on the dotted line. Once the whole refi scam is done and American’s take time to read the fine print they will realize that these new loans to the Government have to be paid in FULL!! No exceptions…No strategic defaults, no bankruptcy…NUTTIN! You’re on our wheel now you rat so keep on running. Kind of the same situation they did with the student loan programs..Took the industry over and now own our children with loans that have to be re-paid…NO  EXCEPTIONS. So with that said….  welcome to your new America. How do you like it so far?

Login or register to post comments by Zerohedge fan
on Sun, 10/10/2010 – 20:45
#639994

Yeah man,

First TARPwas  over 3000 years, ago.

Joseph did that, in a true bailout style.

Egipt was land of plenty, as well, once.

Login or register to post comments by Lord Welligton
on Sun, 10/10/2010 – 20:03
#639942

“instanalysis”

I bow.

I am humbled.

Login or register to post comments by Lord Welligton
on Sun, 10/10/2010 – 20:24
#639960
So. It is clear that the only way to preserve the wealth of those who occupy wealth is that all law protecting property is removed.

 

Can someone give me the exact date that the right to property was removed from each and every Citizen of the United States of America?

 

Login or register to post comments by Matt SF
on Sun, 10/10/2010 – 20:31
#639974

And yet, the CNBC money honies will tell us the bank’s balance sheets are still hunky dory with a gleam in their eye.

Login or register to post comments by Lord Welligton
on Sun, 10/10/2010 – 20:52
#640006
And you are the only person in the Universe that understands honey. Thanks for your fight.

Don’t come back.

 

Login or register to post comments by blunderdog
on Sun, 10/10/2010 – 20:59
#640018

I’d like to introduce a new concept just to jiggle things up.  The situation isn’t nearly confusing enough.

Some asshole such as myself invests a hundred dollas into good paperwork for some kind of homownershit of a house currently sitting vacant.  I move in.  At some point perhaps the sherriff shows up and I show him my paperwork.

Anyone have any good idea how that would game out? 

Would a case actually have to be fought and processed and all that?  That could take months or years.  If I lose and have to vacate, I buy more paperwork (the smart money would buy a few copies on different vacant properties in advance) and move into the house down the block.

Not sure if it’s apt, but the term “freeclosure” would work for me.

Login or register to post comments by fxrxexexdxoxmx
on Sun, 10/10/2010 – 21:03
#640030

This bill passed both bodies and is awating 0bama’s signature as we talk:

 

A bill that would make it more difficult to challenge the legality of documents related to foreclosures has passed Congress and is awaiting President Barack Obama’s signature.

 

http://www.dailyfinance.com/story/credit/bill-that-would-aid-foreclosures-awaits-presidents-signature/19664660/

Login or register to post comments by RockyRacoon
on Sun, 10/10/2010 – 21:38
#640108

Uh.  You are a tad behind the curve with that.  Obama did NOT sign.

Login or register to post comments by obelisks
on Sun, 10/10/2010 – 23:11
#640258

If Americans sit back and allow HR3808 to pass without going out onto the streets to protest then I am sorry but the jokes about vaseline and American Idol and Dancing with the Stars are true ! Come on America ENOUGH ALREADY !

Login or register to post comments by Miss American
on Sun, 10/10/2010 – 23:58
#640307

All these bright comments mean is that nobody knows how this is going to affect the banksters, MBS holders, CDOs, Fannie,  the DC swamp, the OTC black hole, gold, all markets, families, the country, or our future.  Not to mention the dialog on CNBC.  I think it’s a silent nuke so far.  

Login or register to post comments by Moonrajah
on Mon, 10/11/2010 – 03:44
#640444

So, have the Hollywood rights to this whole mess been settled yet? We need a new Oliver Stone, you know. 

Something along the lines of “Lord of the blings” would be  appropriate. A heart-wrenching story about Fraudo and Bimbo Baggins, played by Bernanke and Greenspan, on a quest to bring back the IMF-ring (the one to rule them all!) from Mount Beijing where centuries ago it was thrown away by some stupid fucktards without an economics phd, who obvously new zilch about economy. I bet Jim Cramer would be a wonderful director for this flick.

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