From today’s WTF file, the Florida Mortgage Mill Machinery, hard at work:

“When Jason Grodensky bought his modest Fort Lauderdale home last December, he paid cash. But seven months later, he was surprised to learn that Bank of America had foreclosed on the house, even though Grodensky did not have a mortgage.

Grodensky knew nothing about the foreclosure until July, when he learned that the title to his home had been transferred to a government-backed lender. “I feel like I’m hanging in the wind and I’m scared to death,” said Grodensky. “How did some attorney put through a foreclosure illegally?”

Bank of America has acknowledged the error and will correct it at its own expense, said spokeswoman Jumana Bauwens.”

Please. sue. these. bastards.

Oh, it gets even worse:

Court records show Countrywide Home Loans filed a foreclosure case in Broward County civil court against the former owner of the home on Southwest 14th Street in 2008. Bank of America took over Countrywide at the end of that year.

The following year, Grodensky and his father Steven bought the house for cash as an investment property. Jason Grodensky’s brother Kenny Sloan lives in the house now. They negotiated a short sale, which means the lender agreed to accept less than the mortgage amount. Documents show the sale proceeds were wired to Bank of America. The sale was recorded in December 2009 at the Broward County Property Appraiser’s Office.

But in court, the foreclosure case continued, the records show. There was a motion to dismiss the case in July, followed the next day by a motion to re-open it. A court-ordered foreclosure sale took place July 15. The property appraiser’s office recorded the transfer of the title to the Federal National Mortgage Association (Fannie Mae) the same day.

What unmitigated incompetence. Here is how to make this right

1. The attorney of record on this case should be suspended from the practice of law for 6 -12 months;

2. Sue the fuckers Bank of America. For your lost time, inconvenience, emotional toll, damage to credit ratings, etc.

The only way you can stop really bad corporate activities is by making it cost them money. Whack them for a few million dollars, and you will see less of this sort of egregious behavior.

3. Freeze the Florida foreclosure mills. IF A COURT CAN FORECLOSE ON A HOUSE WITHOUT A MORTGAGE, THERE IS SOMETHING TERRIBLY FATALLY WRONG WITH THAT COURT SYSTEM. They are administratively incompetent, and until they demonstrate they are not renegade organized criminals (i.e., have some basic competency), they must freeze what they are doing.

4. The US Attorney General’s office should be looking into this disaster

>

Thanks, Clint!

>

Source:
Man’s home sold out from under him in foreclosure mistake
Harriet Johnson Brackey,
Sun Sentinel, September 22, 2010 
http://www.sun-sentinel.com/business/fl-wrongful-foreclosure-0922-20100921,0,36776.story

Category: Foreclosures, Legal, Real Estate, Really, really bad calls

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

57 Responses to “Man without Mortgage Loses Home in Foreclosure”

  1. Un-Fucking-Believable . . .

  2. Dennis says:

    That is insane!

  3. stonedwino says:

    Really? Wow….B of A….what a clusterfuck…

  4. Robespierre says:

    And the music will not stop until someone goes to jail or is criminally charged in a very public way. Obama softness with the bankers has only embolden them. As they say “beatings will continue until moral improves”. Oh yes the foreclosed parties should just “suck it up and cope” after all these bankers are just doing God’s work

  5. dead hobo says:

    This is too high of a level view to be so negative. Yes, there was a screw up but nobody was tossed out and BoA says they will fix it. Except for a little paperwork, it doesn’t sound like anything else was messed up. Realistically, where are the damages assuming BoA puts everything back as it was and also assuming this high level view is the whole story? Not every screw up should be a profit opportunity if you know a lawyer.

    The bigger question is, “How did this happen?” Being my normal pessimistic self, I don’t think anyone will get into trouble for it because such things don’t happen anymore. Nor will anyone look into it.

  6. phb says:

    How, pray-tell, is the judge in this case not partially responsible? BOA is not solely responsible for this level of incompetence, I mean they were just trying to protect their interest (albeit in error). All involved other than the victim, need to pay for this fiasco. IMHO of course.

  7. Mike says:

    Similar to a story you posted, not long ago, my house was almost foreclosed by CountryWide a few months back. We have a mortgage, but not from CountryWide, we have only owned this home for a year, and we were at least a month ahead on our mortgage at the time of the notice. (Long story short, our mortgage company had nothing to do with the foreclosure.)

    In some ways our story is a bit more bizarre – CountryWide was apparently trying to foreclose on someone else, whose name was similar to that of the previous owner of the house, and the sheriff’s department wasn’t willing to stop the process even though we could show that nobody by that name had anything to do with the house, and that we were the legal owners of record. Needless to say, we had to hire an attorney but our home is now off the auction block.

    My conclusion – anyone’s house can be listed for foreclosure anytime without anything resembling a valid reason, and if you don’t catch it early enough the legal hassle will be enormous. There are no real safeguards preventing the sheriff from auctioning off the wrong house. Sure, if it happens you’ll get your house back, but the legal hassle and the physical and psychological damage would be enormous. I know from now on I’ll be doing a search for my address on the sheriff’s list of homes to be auctioned every six months or so.

    Mike

  8. dead hobo says:

    BR, calm down. Yes, these poor people got screwed over but they will be made whole and nobody will get into trouble for it.

    Here’s something to cheer about. The labor news was quite dismal.

    Assuming the past can be used to predict the future, the S&P should go for the moon today and hit a new high. For the past year, and especially over the past few weeks, virtually all bad economic news is accompanied by a strong rise in the markets.

    Maybe this is some of the change you can believe in. Before this, bad news was usually accompanied by market declines until good news appeared. Today, all news makes the markets rise.

    Now that’s fucking unbelievable.

  9. whatever says:

    But..but, dont we want protection for our corporations? Otherwise, they wont invest and wont create jobs.
    We should protect our corporations against any lawsuits. At the minimum, any ruling against them will be capped at $50.
    Thats how we create jobs in America.

  10. tspck says:

    . . . so a couple of flunkies at ACORN cooperate in a prostitution scheme and there is literally an act of congress to disembowel the organization . . . but here when the action was conducted in a court of law, with hot and cold running lawyers, it’s “mistake may happen” and “don’t overreact”. How come?

  11. constantnormal says:

    @dead hobo — I think you’re missing the point here. MERS and a general laxity of documentation and procedure throughout the real estate industry has destroyed the chain of ownership, to the point that even people who own their homes outright may have have to defend their claims of ownership, and without the benefit of a strong chain of ownership documentation to support them. This is not merely an extreme oddity, but is a proof-by-example of this situation.

    The banks are not properly motivated, and tend to treat this as “oops, our bad”. It really doesn’t matter whether or not they were physically evicted — the point of the matter is that they were LEGALLY evicted, until legal intervention was required to restore what was rightly theirs. And this can happen to anyone.

    And even if the victims had been evicted and had to invest huge sums of time and money to correct the situation, nobody would get into trouble. Lehman, AIG, and a host of other ugly messes is proof enough of that.

  12. Dead Hobo:
    Don’t you understand what’s going on re: the markets?

  13. Arequipa01 says:

    “Bank of America has acknowledged the error and will correct it at its own expense, said spokeswoman Jumana Bauwens.”

    It is not ‘an error’. It is part and parcel of an ongoing criminal conspiracy. The significant problem here is the likelihood that the Banks will defang the Judiciary or as they say en el Perú, aquí no pasa na aaa…

    There is a lot out there on this issue. A good place to start is the Landmark case.

    http://loanworkout.org/2009/09/landmark-v-kesler-mers-kansas/

  14. dead hobo says:

    constantnormal Says:
    September 23rd, 2010 at 9:54 am

    @dead hobo — I think you’re missing the point here. MERS and a general laxity of documentation and procedure throughout the real estate industry has destroyed the chain of ownership, to the point that even people who own their homes outright may have have to defend their claims of ownership, and without the benefit of a strong chain of ownership documentation to support them.

    reply:
    ———-
    We just use the county recorder here to record ownership and security interests. Plus title insurance. Most jurisdictions do things in a similar way, I assume. If a bank stole my paid for house, I would first try to turn in into a winning lottery ticket, but would probably be disappointed and maybe get a free toaster as a premium after they fixed the problem.

    Agreed the foreclosure system is a mess, but the mess is cohesive and likely to remain a mess no matter who complains about it. I’m just adjusting to reality and more evidence of a small but real and continual general decline in civilization.

    Additionally, I remember speaking to a lawyer a few years ago about foreclosures. He told me that most mortgages and notes are linked together in such a way that they are legally inseparable. The mortgage becomes unenforced if the note is sold. GMAC (I think) is finding that out now, but everyone else seems to otherwise ignore this to accommodate wall street. The entire system is corrupt and the world has accepted it as change you can believe in because the corruption is inching in and being made to appear benign and in the interest of the majority. The questionable stock market is another example of corruption you can believe in.

  15. Arequipa01 says:

    “the point of the matter is that they were LEGALLY evicted, until legal intervention was required to restore what was rightly theirs. And this can happen to anyone.” Very good point.

    This is an important element revealing that ownership in this country is becoming increasingly contingent. The CORPORATION is exercising executive control over instruments of the STATE. If you do not understand what that means and what its implications are, then please take some time to cogitate. And when you’re done, trying some metacogitating, and if that don’t help, well, son, there’s always marketing.

  16. gc says:

    and what part of your fortune comes from suing, likely on behalf of people who cannot afford to fight and who experience great distress to be in a lawsuit, to recover damages that are not allowed, and if awarded by a jury in a sympathetic trial court, won’t survive on appeal? You can build a fantasy around a cherry-picked single instance, but these types of errors are all over the place, and the courts are no more likely to bring everything to a halt than Bush/FED/Obama/congress were. Warren is “non-confirmable” because people fear that she just might be willing to bring everything to a halt. In this world, mark to market was changed when it stopped support bonuses and compensation. It is not the world where we allow a court to bring the Bank of America to its knees over one foreclosure.

  17. constantnormal says:

    @dead hobo — I agree completely — I’m just not fresh out of outrage yet.

  18. MinnItMan says:

    The acknowledgment that affidavits of default and the “attorney affidavits” used to establish the record for default judgments and judgments on the pleadings* (will explain if requested).

    From WaPo:

    “41-year-old Jeffrey Stephan was required to review cases to make sure the proceedings were legally justified and the information was accurate. He was also required to sign the documents in the presence of a notary.

    In a sworn deposition, he testified that he did neither.”

    This is very bad news for the lenders, the foreclosing attorneys, court administration and anyone who bought a post-forclosure REO property. A lot of the short-cutting used by the lender-foreclosure complex, IMO opinion, was fixable, but false sworn statements can’s be taken back, and thus will haunt the system for years. It’s early in this story, but all lawyers know this is the equivalent of the ball-bearing plants being bombed.

    Now, I don’t think these two stories are related. Foreclosing after the lender has been paid is a one-hand-doesn’t-know-what-the-other-hand-is doing problem. I agree that the court should have been asking questions about the two contradicting motions and I’m at a loss as to how they could be reconciled by the lender’s attorney. Nonetheless, the buyer here clearly has recourse. This story, screwed up as it is, is still an aberation, although it should be cautionary to anyone buying at a short sale that you better be getting insurance and guarantees against this.

    In the WaPa story, it’s a lot harder to see where this is going to go. For one thing, “document cases,” the core practice of foreclosure and collections attorneys where there is no answer or defense offered, and thus are usually defaulted, may become much less “routine” as courts may are now justified in asking for actual testimony, as opposed to relying on uncontradicted affidavits. These bad affidavits are the evidentiary basis for the judgment and calling these into question systematically, especially for docketed judgments, is going to make a lot of folks very sad.

    Go short on the processing companies or any publicly traded component of this system.

  19. rktbrkr says:

    BOA is correcting the error “at their own expense”, now thats really sweet of them, I wonder who else should be expected to pay.

    Florida started speeding up the FC process for the benefit of the banks (surprise) a few months ago, it seems like the banks are getting their way and the courts are rubber stamping their foreclosures. You’d think any bias by the courts would be with the homeys but I guess money talks louder.

    You have to wonder how many other fukkups are occurring in the sand states.

  20. constantnormal says:

    Hernando de Soto has authored an excellent book that attempts to answer the question of why so many other attempts to copy the US miracle of capitalism that works (he wrote it a few years back) have failed, and he comes down to the property title system that we inherited from the Brits, which permits exchange of property as a commodity. He provides extensive documentation in his book of how other nations have failed in this.

    Without such a system, the wealthy can pervert the system and legally steal property from the little people. This is where we are heading, in our journey to reshape the US into the world’s largest banana republic.

    Property rights are the bedrock upon which democracies reside. When property “rights” become fluid things, that bedrock is swept away.

    Here’s a short article on de Soto’s thesis: Cities of the Poor III: Law and Ownership

  21. constantnormal Says: September 23rd, 2010 at 9:54 am

    @dead hobo — I think you’re missing the point here. MERS and a general laxity of documentation and procedure throughout the real estate industry has destroyed the chain of ownership, to the point that even people who own their homes outright may have have to defend their claims of ownership, and without the benefit of a strong chain of ownership documentation to support them. This is not merely an extreme oddity, but is a proof-by-example of this situation.

    The banks are not properly motivated, and tend to treat this as “oops, our bad”. It really doesn’t matter whether or not they were physically evicted — the point of the matter is that they were LEGALLY evicted, until legal intervention was required to restore what was rightly theirs. And this can happen to anyone.

    And even if the victims had been evicted and had to invest huge sums of time and money to correct the situation, nobody would get into trouble. Lehman, AIG, and a host of other ugly messes is proof enough of that.
    ~~
    Arequipa01 Says: September 23rd, 2010 at 10:13 am

    “the point of the matter is that they were LEGALLY evicted, until legal intervention was required to restore what was rightly theirs. And this can happen to anyone.” Very good point.

    This is an important element revealing that ownership in this country is becoming increasingly contingent. The CORPORATION is exercising executive control over instruments of the STATE. If you do not understand what that means and what its implications are, then please take some time to cogitate. And when you’re done, trying some metacogitating, and if that don’t help, well, son, there’s always marketing.
    ~~
    some things need to be re-read..

  22. QOTD:

    The difficulty lies, not in the new ideas, but in escaping from the old ones, which ramify, for those brought up as most of us have been, into every corner of our minds. —John Maynard Keynes, The General Theory of Employment, Interest and Money (13 December 1935)

  23. Robespierre says:

    @constantnormal Says:
    September 23rd, 2010 at 10:36 am

    “This is where we are heading, in our journey to reshape the US into the world’s largest banana republic.”

    I think it is becoming more like a feudal system than a banana republic.

  24. Arequipa01 says:

    The De Soto interview is interesting and embedded in it is an interesting tidbit:

    “Fink: This is how the de Soto model works. Property ownership allows poor people to obtain credit, amass capital, and climb out of poverty. Legal reforms make all of that possible. Right now in most developing countries, a morass of laws and bureaucracy keeps the poor from being able to gain title to their property, register their businesses and secure loans.

    But de Soto’s ideas have run up against some hard realities. Governments have tended to implement only some of the reforms he champions. And few Peruvian shanty dwellers have been able or willing to borrow against their homes. Most banks don’t extend credit to owners of straw huts and rickety wooden shacks. And taking out a loan is risky for the poor. The owners of the garment factory de Soto and I visited have taken on considerable debt.

    De Soto: “About $114,000.”

    Fink: They’re paying a high interest rate.

    De Soto: “Their interest rates are 2% per month.”

    Fink: And they’re worried about keeping up with the payments. Less than a year ago, the factory operated at full capacity. Now it’s at just a quarter of that. As we drive away from the factory, de Soto questions what the future holds for these entrepreneurs.

    De Soto: “They may have gone in over their heads. We don’t know.”

    The other side of that coin is indebtedness. “obtain credit, amass capital” It’s just that easy! why didn’t I think of that.
    You see, while I am very much in favor of improving the titling of property in Peru*, but the assumption that there is a liquid market for properties in an area like Huaycán is unwarranted. There is not. So, you secure a loan with a bank and pledge your property in an illiquid market. Hmmm, would any of you all be interested in that?

    * This is a fascinating reality to study and some bright United Statesian kid in CRE should be figuring out how his/her organization can participate in the CRE boom in Lima.

  25. rktbrkr says:

    Real systemic risk!

    “We’re not just talking about isolated incidents of problems with foreclosures, we’re talking systemic,”

    GMAC suspends foreclosure evictions and sales of seized property
    By KIMBERLY MILLER
    Palm Beach Post Staff Writer

    Foreclosure evictions and homeowner lockouts have been halted by Ally Financial Inc.’s GMAC Mortgage in 23 states including Florida as the nation’s fifth-largest home loan servicer addresses legal challenges to its foreclosure procedures.

    A two-page memo dated Sept. 17 and marked “urgent” told brokers to immediately stop evictions, cash-for-key transactions, lockouts and to suspend sales of properties already taken back by the bank in foreclosure.

    The memo, first reported by Bloomberg news service, comes at the same time the Tampa-based Florida Default Law Group has been withdrawing legal affidavits in its GMAC foreclosure cases under “candor to the court” rules acknowledging previously submitted information may have been inaccurate.

    St. Petersburg defense attorney Matt Weidner, who is handling a case in which a GMAC affidavit was withdrawn last week, called the freeze “staggering.”

    “I suspect they are recognizing they have a really big problem,” Weidner said. “I think they are afraid the foreclosure judgments may be voidable.”

    If that’s the case, Weidner said it won’t be just GMAC redoing their foreclosure procedures.

    “We’re not just talking about isolated incidents of problems with foreclosures, we’re talking systemic,” he said.

  26. rktbrkr says:

    It sounds like these courts are malfunctioning and need to call a “time out”

  27. ashpelham2 says:

    Look, I work at a fairly large regional bank in the Southern US. What happened with this guy started out as someone just blindly pushing buttons and paper, and then morphed into a complete failure of all possible safeguards to make sure something like this couldn’t happen. So, there is a lot of blame to go around, and yeah, this guy is probably owed some kind of restitution for the hassle and crap he’s been through. Should he, or any lawyer, be made wealthy because of it? No, but the courts failed to protect this guy in the original foreclosure process. Why should we expect the courts to get it right when he sues the hell out of B of A?

    Banking has been dumbed down to the lowest common denominator at this level. All the brains are making huge bucks in the stuff that got us in the toilet to begin with.

  28. Darkness says:

    I didn’t get what the title company was doing in all this. I can see the courts processing the foreclosures out of order, there is a long tradition of courts barely glancing at foreclosure orders and really, no one expects them to do otherwise, but the title company really screwed up here royally. All of these parties are getting paid their cut to provide a double check on the process and are doing squat. Parasites, the lot of them.

  29. WFTA says:

    BR,
    There you go encouraging those pesky plaintiffs’ attorneys again when I’ve been told for the last twenty years that’s why healthcare is unaffordable. Think what this will do for foreclosure inflation!

  30. Matt SF says:

    One word: Pillory.

    Sentence any and all of these corrupt morons to 1 year of mandatory public shame. Only way this nonsense is going to stop is if the anger of the masses is correctly harnessed and directed at those who are propagating the crimes. Letting them pay a fine and *not* admit wrongdoing will only perpetuate the cycle.

    Oh, and the afflicted home owner(s) should be given the option of flinging rotten eggs and tomatoes if he or she chooses.

  31. louis says:

    This just shows what you are dealing with and why none of the programs for housing are working.

  32. jjay says:

    “Suck it up, Grodensky!’
    All my love,
    Charlie Munger

  33. bergsten says:

    That’s it. I’m starting my own bank. It isn’t all that hard, you just have to fill out some state form or another.

  34. Brendan says:

    I love the irony that we have comments on this blog by people who are screaming about how it’s just unacceptable that the banking industry isn’t doing its due diligence before foreclosing… and then making completely false statements because they haven’t done their own due diligence.

    ACORN’s “flunkies” were acquitted of “cooperating with a prostitution scheme” as the videos were shown to be “severely edited” by investigators (for lack of a better resource I’ll use Wikipedia):

    http://en.wikipedia.org/wiki/ACORN_2009_undercover_videos_controversy

    And also healthcare is not unaffordable due to litigation costs, as has been shown time and time again. Here’s a very recent study pegging the cost at 2.4% of total costs; see:

    http://www.medicalnewstoday.com/articles/200462.php

    I don’t think you can reasonably say that is to blame for the high cost of healthcare.

    Pot meet kettle! You’re entitled to your own opinion, but not your own facts!

  35. contrabandista13 says:

    Sounds to me like… “ALL BETS ARE OFF….”

    I have a good friend that got even for all of you, with BoA to the tune of 3 million….

    He legally scammed them for over 3 million…. He told me that it was like shooting fish in a barrel and they cooperated all the way to the gallows…. Two of their VPs got their asses canned for it….

    Bravo to my friend Tim B…..

    Best regards,

    Econolicious

  36. Brendan says:

    P.S. I recognize that the health-care comment may have been tongue-in-cheek, but it wasn’t really made very clear…

  37. poppysmic says:

    That’s brilliant by the Bank. They made/ will make money on the deal. Have you ever had a bank error in YOUR favor? Of course not. All credit card fraud can be stopped in almost an instant but they make money on the float. The vendor eats the loss, you make payment on the error until it clears, then they pass on the cost to Ins. or consumer. It sucks for honest citizens, but it’s the bottom line that matters….What’s the line? ” Greed is God’?

  38. Space_Cowboy_NW says:

    TX Capitial Punishment is to ____________ as FL Foreclosure Mills are to ______________

    SOP in the Legal environment: ”Win some, lose some, bill ‘em early & often”

    Only guilty people go to prison so remember:” Admit Nothing, Deny Everything, and promptly call your counsel.”

    Your mileage may vary…..

  39. APBERUSDISVET says:

    Where was the title company in this mess? Or were they the corrupt instigator?

  40. WFTA says:

    Brendan, buddy. Lighten up. I’m on your side.

    We need a sense of humor, cause I’m afeared it a hard rain gonna fall.

  41. willid3 says:

    and i thought many were big on property rights. oh i forgot, its property rights for corporations, TBTF and others. just not for the people

  42. MinnItMan says:

    A title company should have closed the cash purchase. If the buyer (Grodensky) didn’t use one, his bad. Penny-wise, pound-foolishness.

    It’s worth pointing out that cash purchasers usually mean prospective slum-lords, but I don’t know that here. Alsos, his credit should not be affected. The loan was in the name of the former owner.

    Not excusing anything, but I suspect the facts would show some strange bedfellows in this story in a fuller reporting.

  43. bergsten says:

    This box just popped up, asking if I wanted to participate in a TBP survey.

    I like Barry, so I figured, “why not”?

    The first question asked for my age. Fine. The second asked for (something along the lines of) my interests.

    The first choice was “pet care.”

    Sorry, but that’s when I bailed on the survey.

    Is this legitimate or another ad that’s taken over the site?

  44. formerlawyer says:

    In my former jurisdiction and others, fraudsters would often take out a mortgage using forged identity. The process involved looking for (preferably vacant) properties without mortgages which was easily done from public records.

    From that, forged identity for the owner would be obtained and a mortgage placed on the land with the fraudsters seeing a lawyer to finalize the documents. The fraudsters would set up a bank account from which payments could be withdrawn and place just enough money (ie. 6 months mortgage payments) to fund the mortgage. Often they would then move the address for service of record to a fictional address so that notification of the true owner would be forestalled. Thereafter, the mortgage proceeds would be laundered – usually by way of casinos on Indian lands or other mechanisms.

    While personal service would be preferred, substitutional service on the lands or in a newspaper was commonly allowed in foreclosures. Voila – foreclosure once the money ran out.

    While that is not the case here from my understanding this is not unknown.

  45. willid3 says:

    and foreclosure is controlled by the states. Fed have nothing to do with it (short of bankruptcy being involved).

  46. Casual Onlooker says:

    I find the arguments that mistakes like BofA are just simple oversight, and one off errors that did little harm. From a lot of the various stories out there, from banks that “lose paperwork” to people getting lost in voice mail hell just trying to find a real person, much less a person a person that is not reading a script off his computer, speaks volumes as to the increasing chaos in the system.

    To add to GMAC story, NPR yesterday aired a segment on this, and some of the details are rather troubling. http://www.npr.org/templates/transcript/transcript.php?storyId=130052495

    From the story…

    ————
    Chris Immel is an attorney at Ice Legal, a foreclosure defense firm in West Palm Beach, Florida. He conducted a deposition with a GMAC employee named Jeffrey Stephan. Immel says his job was to sign foreclosure documents.

    Mr. CHRISTOPHER IMMEL (Attorney, Ice Legal): We took his deposition. And in taking it, he pretty much admitted to signing, you know, he said approximately 10,000 documents a month.

    KEITH: Attorneys like Immel have taken to calling these employees at loan servicing firms robo-signers.

    ———

    I mean really, 10,000 documents a month by a single person… where is the due diligence in that? How does this not rise to the level of a endemic problem that needs addressing? That’s 62.5 documents signed an hour, or one a minute.

  47. Brady Dennis says:

    Robo-signer’ played quiet role in huge number of foreclosures

    The robo-signer lives on a quiet street in this small town an hour’s drive northwest of Philadelphia.

    His modest two-story house, for which he paid $118,000, sits on a corner lot just down the street from the local Moose Lodge and an all-night diner. A weathered Chrysler Concorde is parked in the driveway, and a Toyota Camry sits by the curb.

    Many large mortgage lenders have come to rely on a relative handful of so-called robo-signers such as Jeffrey Stephan, 41, to attest to the accuracy of thousands of home foreclosure documents across the country. These workers are not the Wall Street masterminds who created ever more complex mortgage-backed securities and fueled the subprime mortgage boom, but rather “affidavit slaves” with modest incomes and mountainous workloads.

    Their actions are leading lawyers representing foreclosed homeowners to claim that lenders have no legal standing if the filings weren’t reviewed and verified, and to argue that the cases should be thrown out.

  48. Herb2 says:

    In the Philippines when Marcos declared martial law, I noticed that much more attention and money flowed into elections of judges than into elections of senators, which was contrary to my experience in the US. Subsequently I learned that judges decided which phony paperwork was authentic when title to a property was contested.
    The particulars are different, but we drift in a similar direction.

  49. [...] other day I read a fairly enthusiastic Barry Ritholtz post entitled Man without Mortgage Loses Home in Foreclosure. Basically, the Florida court system is so in the groove of foreclosing on properties, they are [...]

  50. doloresflynn says:

    Please set a standard here !
    As soon as you uthrow out the f-bomb, everyone thinks it is their cue to trash the place.
    Morality belongs to the financial sector as well as personal, and if you are educated, you can get your point across very well without vulgar puctuations.

  51. [...] Man without Mortgage Loses Home in Foreclosure (September 23rd, [...]

  52. [...] seems. Barry Ritholtz says at his blog that the only way the banks will ever learn is if they lose big judgments in court – a notion that seems to be borne out by another aspect of the Schroit [...]

  53. stopGOVTwaste says:

    So if they come once with fake documents, do they have free reign to come back and try again with NEW fake docs? The mortgage MUST remain together with the note but MERS prevents that from happening. Bifurcation =’s off book securities transactions.

    What they don’t want to tell you is that the insurance taken out on the loan pool at 30x value of pool (conservatively) has paid off – EXTINGUISHED – the loans in the underlying pool, many times over (AIG, AMBAC, MGIC, TARP, ETC). But wait a second, weren’t these the same loans that were supposed to be “recorded” in public land records per the terms of the Pooling & Servicing Agreement (PSA) and the Mortgage “contract” (see section 20 of the standard Fannie/Freddie instrument).

    So if the chain of custody was never recorded, then the trusts set up to hold the loan pools actually held “nothing but air” – if they even existed at all.

    You can’t collect on a debt that has been paid off, that is fraud. Plus, the controlling aspects of the PSA void the sale of the asset under FAS 140, in addition the REMIC will lose it’s tax deferred status under IRS Code. You cannot commit securities fraud, tax fraud, violate a plethora of federal and state lending and consumers laws and get away with it scott free… can you? The crime is mortgage backed securities and the crime scene is our public land records.

    Enjoy the video (below) and have a great weekend!

  54. [...] we have seen, homeowners without mortgages have lost their home to foreclosure. That this legal impossibility actually occurred  reveals the [...]

  55. [...] we have seen, homeowners without mortgages have lost their home to foreclosure. That this legal impossibility actually occurred  reveals the [...]

  56. [...] has been widely circulated and discussed in the media, Man’s home sold out from under him in foreclosure mistake. The [...]

  57. boveri says:

    I’m with Dead Hobo.