“Defective documentation has created millions of blighted titles that will plague the nation for the next decade.

-Richard Kessler, an attorney in Sarasota, Florida, who conducted a study that found errors in about three-fourths of court filings related to home repossessions.

>

The out of control foreclosure machinery has officially been brought into the shop for repairs.

The real estate financing industry appears to have brought the same technical expertise that allowed automated underwriting of mortgages to an automated foreclosure process: Structurally flawed, rife with errors, guaranteed to fail — and in need if an immediate overhaul.

As we have seen, homeowners without mortgages have lost their home to foreclosure. That this legal impossibility actually occurred  reveals the foreclosure process, especially in Florida (but other states as well)as little more than a legal conveyor belt, bereft of oversight, manned by parasitic law firms and over whlemed bankers.

It is Lucy on the chocolate factory line, only with Homes being repossessed instead of bon bons slipping by unwrapped.

This more than merely “flawed paperwork” — the entire process is problematic. It has reached such depths that numerous banks have voluntarily stopped foreclosures while they review their internal processes, and the methods used by local law firms they hire. Called Foreclosure mills, many of these firms employ illegal methods to their legal practices. They use robo-signers instead of reviewing documents reviewed by lawyers; they hire process servers with histories of fraud and criminality. In the pursuit of foreclosure profits, they have tried to turn the practice of law into a clerical act of foreclosure, repossession, and resale — consequences be damned.

We have continually argued all of the HAMP and foreclosure abatement programs are ultimately counter-productive, and benefit the banks, not the home owners. I have called for allowing the process to proceed naturally, letting prices fall to where they will. Further, We have never opposed the foreclosure process as a price discovery mechanism.

But what is going on in Florida and elsewhere is a national embarrassment. What is required here is a full blown investigation from the US Attorney’s office.

>

Sources:
Foreclosure Errors May Cloud Ownership of U.S. Homes
Kathleen M. Howley
Bloomberg, October 1, 2010
http://noir.bloomberg.com/apps/news?pid=20601109&sid=a5bktFClcWS0&pos=13

Foreclosure? Not So Fast
ROBBIE WHELAN
WSJ, October 4, 2010
http://online.wsj.com/article/SB10001424052748704029304575526182962738098.html

Foreclosures Slow as Document Flaws Emerge
DAVID STREITFELD
NYT, September 30, 2010
http://www.nytimes.com/2010/10/01/business/01mortgage.html

7 major lenders ordered to review foreclosure procedures
Ariana Eunjung Cha
Washington Post September 30, 2010
http://www.washingtonpost.com/wp-dyn/content/article/2010/09/30/AR2010093006563.html

Category: Credit, Markets, Real Estate

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.

71 Responses to “Slowing the Runaway Foreclosure Train”

  1. Marcus says:

    Malpractice?

  2. pmorrisonfl says:

    The bailouts prevented the rock from being turned over to see what was underneath. That’s a feature or a bug, depending on the seat you sit in.

    Seems like someone’s slogan ought to be ‘We keep the house, you keep the debt.’.

  3. curbyourrisk says:

    Yeah…like you think that might happen…..Even if we did get an investigation all it would lead to is new laws…..absolving the banks of any wrong doing in the past. The country has become a joke and the banks are LEADING us right down that path. When you allow the laws to be made to protect the banks, when you allow the banks to make the laws, this is what you get… Just bring back Mark-to-market….enforce the damn black letter of the law and bankrupt these LOSER INSTITUTIONS…… Screw them.

  4. PrahaPartizan says:

    BR said:
    “…This more than merely “flawed paperwork” — the entire process is problematic. It has reached such depths that numerous banks have voluntarily stopped foreclosures while they review their internal processes, and the methods used by local law firms they hire. Called Foreclosure mills, many of these firms employ illegal methods to their legal practices. They use rob-signers instead of reviewing documents reviewed by lawyers; they hire process servers with histories of fraud and criminality…”

    The mistype in the last sentence (I must suspect you meant ‘robo-signers’) actually identifies the situation even better. This process borders on legalized theft, resembling nothing so much as those Western movies and TV programs from the 1940s and 1950s when corrupt judges signed off on land and water-rights takeovers by well-connected cattle barons in the plot line. I’ve guess we’ve lived through all of this before if the story line was showing up in entertainment. That certainly doesn’t make it any easier on the individuals affected by this form of theft.

    ~~~

    BR: Freudian slip — I’ll fix above.

  5. phb says:

    What should happen versus what will happen?

  6. b_thunder says:

    More money will be made from the housing bust than was made from the boom. We know about John Paulson, the cast of the Michael Lewis’ book, early house flippers, etc. Now $$$ will be made in different ways, mostly by gaming the system and suckering Fannie/Freddie (i.e. ultimately getting taxpayer’s $$$)
    Housing boom was a very fertile ground for fraud. But as least during the boom it was all structured, done relatively by the book (even if the numbers in the book were all made up such as stated/imagined income.) The housing bust is unraveling so fast, it’s so out-of-control of those who ought to be supervising it, that the fraud will flourish. A lot more fraudulent $$$ will be made during the bust than during the boom. More people will get hurt. There aren’t enough investigators/cops/FBI agents to track everyone down.
    Unless you use Stalin/Mao methods (execute the perpetrator, confiscate his family’s entire net worth to pay restitution) on the corrupt lawyers AND bankers, this will not be solved.

  7. Petey Wheatstraw says:

    The US Attorney’s office? The same office that stopped short of prosecuting the VP of the US for treason, even though every dog on the street knew he was guilty of the crime? The same US Attorney’s office that hasn’t recognized any actionable civil or criminal activities on the part of the banks despite the fact that virtually anyone who was involved, interested, or impacted (think taxpayers) by these blatant and obvious crimes and torts knows — as a matter of fact, not speculation — that the criminals are being protected? Somewhere, the scapegoats are starting to get a little nervous.

    Get ready to see the full face of Corporatism. Get ready to see “laws” made on the fly through administrative actions by the executive branch, and then fully legitimized by the SCOTUS. This is where we will se the Unitary Executive theory put into full practice. Get ready for the official end of government by, of, and for The People, in the US. The Congress will be kept intact to give the impression of legitimacy, but will be as useful as a vestigial tail on a human baby — whatever purpose it did serve in the past being long forgotten (in a sense, this has already taken place. After all, the Corporations already write the legislation that governs us).

    What will The People do about it?

    Nothing.

  8. rktbrkr says:

    Who’s next?

    Wells Fargo executive said he only checked dates on foreclosures documents
    By Vicki Needham – 10/03/10 11:19 PM ET
    An executive with Wells Fargo said he checked only the dates on up to 150 foreclosure documents he signed daily.

    The admission was made during a deposition in May when the executive said he relied on co-workers to make sure the information was correct on paperwork, according to news reports Sunday.

    The deposition of the Fort-Mill, S.C.-based Wells Fargo vice president, Herman John Kennerty, was reported over the weekend by AOL Daily Finance and obtained by The Associated Press.

  9. Petey Wheatstraw says:

    rktbrkr:

    Behold the birth of goats.

  10. Rescission says:

    We do NOT need a full blown investigation from the U.S. Attorney’s office. That’s the last thing we need.

  11. Dennis the menace says:

    Thank you for that opinion minus any supporting evidence or argument. Do you care to expand that statement, or are you only going to leave us with a school yard taunt?

  12. Dennis the menace says:

    Rescission.

  13. rktbrkr says:

    The banks chutzpah and wide scale criminal activity will create a crisis that will require US intervention that will ultimately benefit the banks, they will prosper by screwing up (actually they’re “screwing over”). They have/are creating too big a mess for the states normal legal processes to deal with – and the states are likely to impose penalties and tough conditions on banks foreclosures.It will be far simpler for the banks to lobby DC than to have to deal with local pols who might side with their constituents at least in the sand states where the banks have done the most damage.

  14. Petey Wheatstraw says:

    b_thunder Says:

    “Unless you use Stalin/Mao methods (execute the perpetrator, confiscate his family’s entire net worth to pay restitution) on the corrupt lawyers AND bankers, this will not be solved.”
    ____________

    Other than the execution part (replace it with a long prison sentence, at hard labor), that’s EXACTLY how the laws SHOULD be enforced in the US (the laws, useless as they are, certainly accommodate such penalties). Stalin/Mao may not have had fair trials prior to summary judgement, but we don’t have trials at all.

  15. Expat says:

    This is hardly shocking. This issue was raised a year or two ago, but was dismissed by most authorities as anecdotal, unimportant in number, or unimportant legally. But it is really another strong indicator of the moral, legal, and financial “wrongness” of Wall Street . Much as no one understood the CDO’s squared and the CDS’s, no one bother to analyze the legal implications of a sliced and dice mortgage. Why not? Because there was too much money involved.

    I bet we could subpoena every legal department on Wall Street and in all the mortgage banks and find thousands of memos and letters from the lawyers expressing their reservations about the paper trails. Emails to CEO’s asking them to contemplate foreclosing on a mortgage which was tranched thrice and sold ten times, finally finishing up with investors in Japan, Dusseldorf and Dubai.

    These clowns (Wall Street, Congress, the SEC and the Fed) are a blight on what we perceive to be America (of course, they are stars and poster children for the real America). They came up with a Ponzi scheme so frickin’ clever that they did not even need to shred any papers. We can have all the documents we want…no one can make any sense of it.

    I propose a nationwide freeze on foreclosures and cancellation of all outstanding mortgages. Communist? Sure, but so what. I mean, so what after all the crap. Or we should all get on planes, boats, and trains and go back to Europe, Africa, Asia, and South America, leaving the whole shooting match to the Native Americans and see if they can fuck it up any worse than we did.

  16. Petey Wheatstraw says:

    Corporatism is going to make Communism look like a day at the park.

  17. call me ahab says:

    Get ready for the official end of government by, of, and for The People, in the US. The Congress will be kept intact to give the impression of legitimacy

    Petey-

    dude- sounds like Gladiator:

    “There’s always been a senate.”

    “Rome has changed. It takes an emperor
    to rule an empire.”

    “Of course,
    but leave the people their–Illusions.”

  18. Petey Wheatstraw says:

    ahab:

    Don’t forget, I was once MA. ; )

    I don’t know if you’ve read Gibbon’s “Decline and Fall of the Roman Empire” (it’s a dense read), but the parallels between our current state of being and the fall of the Roman Republic are easily drawn.
    ______________________

    ’Skins beat Philly! Ugly football, as usual (Vick said it was going to be a dog fight). Sure like to sweep Dallas.

  19. call me ahab says:

    petey-

    ugly game for sure- Skins needed a win (and that hit on Vick- ouch!)

    but the Bears/Giants- what a show that was- outside of Cutler curling up in a fetal position- it couldn’t have been much worse

  20. clawback says:

    BR, apparently it really was the CRA and minorities that caused the foreclosure crisis. Or so say two (undoubtedly left-leaning) sociologists from Princeton. What was that you were saying the other day about Left and Right? ;-)

    “Predatory lending aimed at racially segregated minority neighborhoods led to mass foreclosures that fueled the U.S. housing crisis, according to a new study published in the American Sociological Review.”
    http://news.yahoo.com/s/nm/us_usa_foreclosures_race

  21. Robespierre says:

    “What is required here is a full blown investigation from the US Attorney’s office.”

    Hahahaa good sense of humor there Barry. Like the government is about to bite the hands that feeds it….

  22. Transor Z says:

    So now we have a little better idea of why people in default have been allowed to stay in possession for 2 years after their last mortgage payment, huh?

    GIGO

    For everybody assuming the gov’t will intervene with a Gordian Knot solution to benefit the banks, consider the impact on housing prices. For example, assume a federal law grants immunity to mortgage holders for “good faith” foreclosures (“good faith” defined as the holder thinking they might have had a dream once in which maybe they held a mortgage on a given house — or maybe they were being chased by a giant spider, they can’t really remember). No disincentive to keep using foreclosure mills.

    Watch short sale and mortgage auction prices evaporate. Who in their right mind will pay anything remotely close to FMV if it’s very possible (and legal) that the RE they just bought will be foreclosed out from under them?

    The thing I don’t know if anybody has delved into yet is Title Insurance. If you don’t know what title insurance is, don’t worry; the entire industry is about to go belly up if this shit is allowed to continue. So yes, you’ve got banks on the one side but don’t forget you’ve got their FIRE sector cousins the title insurance companies on the other in this mess. Either premiums will jump or, IMO more likely, they just won’t write policies for certain transactions. And if you can’t get title insurance, guess what? You probably can’t get a mortgage.

  23. Petey Wheatstraw says:

    clawback:

    Your link says nothing about the CRA. BR has been all over this. The banks used predatory lending practices. That puts the onus directly on the banks — not on the minorities they preyed upon. “Undoubtedly left-leaning?” Why is that? Because they exonerate the “minorities”?

    Why don’t you just take the goddamned hood off and admit to who and what you are?

  24. wunsacon says:

    Petey, appreciate the sentiment but clawback might’ve been snarking.

  25. Petey Wheatstraw says:

    wunsacon/clawback:

    If it’s snark, my apologies. If not, well . . .

  26. wunsacon says:

    Not surprising that the foreclosure process is fooked. I see lawlessness everywhere.

    What we’ve got here is a “failure to govern”, at many levels, it seems.

  27. rktbrkr says:

    Title insurance normally only covers the amount of the financing to purchase a home, the homebuyer would have to opt to make additional payment to insure his skin in the game, a lot of foreclosures have been all cash purchases – hope these buyers have purchased title ins.

    But lets say the foreclosure buyers bought title ins and the foreclosed parties challenge the foreclosure how long will it take to clear up the issue if there are thousands of these legal mud-wrestling cases going to trial? Assuming the homebuyer is allowed use of the property during the court case – what if he needs to sell the home – a divorce or transfer, OUCH, he be screwed totally.

    Lets say another homebuyer bought a FC without title ins and no prior owner has come forward to claim the home – the home would still be close to worthless if the statute hasn’t expired and a prospective buyer couldn’t get insurance.

  28. It’s a sad situation that enforces home owners suffer from that kind of politics !

  29. clawback says:

    Petey Wheatstraw,

    Sorry, sorry, and sorry. Snark, indeed. We all know there was predatory lending, but tracing the financial crisis back to minorities (even if the authors ultimately blame the banks) was just too much of a hoot in light of Barry’s railing against the Right Wing’s CRA-and minorities-caused-the-crisis meme.

    But yes, those guys ARE left-leaning. I’m an academic (black gown, now white hood) and an Ivy alum. Just trust me on that one.

  30. clawback says:

    Doh!

    should read “NO white hood”. Oh well….

  31. Petey Wheatstraw says:

    clawback:

    Sincere apology.

  32. The Pale Scot says:

    How about we implement a similar “expedited process” to convict the grifters?
    No objections from the defense accepted, no juries, and we can use the same morally suspect operators to compile evidence against each other. Get a witchcraft trial mojo going, with everybody accusing each other to avoid getting the torch.

    With today’s expanding security state apparatus, how hard could it be to connect them to suspected terrorists and water-board the lot of them. That’ll clear up the ambiguities lickity split.

  33. Mannwich says:

    Is anyone really surprised this crap is happening? These actions are the direct result of not holding anyone accountable for the crisis in the first place. Guess what you get when you reward, no, institutionalize, dishonesty, incompetence, malfeasance and fraud?

    Did we think we’d get LESS of this behavor now? Color me puzzled. Nothing has been fixed or will change for the better now that this behavior has been solidified and calcified in our culture. But, hey, it looks to be a gorgeous fall week here in the TC. Anyone up for some fall golf?

  34. Mannwich says:

    Man, Petey. You’re a little cranky these days, no? I AM enjoying it though. ;-)

  35. Mannwich says:

    @Transor: Pretty sobering stuff to think about. Imagine the irony of bailing out the banks only to have us kicked back into yet another crisis involving the housing market? Rich indeed.

  36. Petey Wheatstraw says:

    Manny:

    This shit is getting old (and so am I).

  37. Mannwich says:

    Me too, Petey. I’m just worn out lately from it all. Maybe I’m at the “acceptance” stage of grieving? :-)

  38. rktbrkr says:

    I wonder what impact this is having on online Florida foreclosure auctions? Do foreclosure auction sales by governments automatically convey clear titles? Maybe the banks could just stop paying taxes on their foreclosures and let the municipality/county foreclose and sell, the muni would keep what they were owed and then pay the remainder to the bank, the buyer at government auction would pay more because he’d be guaranteed clear title?

    At some point the banks will have to recognize these diminished property values and then it TARPII

    https://www.broward.realforeclose.com/index.cfm?zaction=USER&zmethod=CALENDAR

  39. Arequipa01 says:

    Denninger has been doing excellent on this subject and in particular concerning the issue of ‘flawed paperwork’ he has posted a decision on some motions in a case in Maine, dated 9/24/2010. This decision pivots on a deposition of the notorious Mr. Stephan and his magic pen. One of the bench’s determinations was that the plaintiff did act in bad faith. See for yourselves. (right click open new tab no need to close this page).

    http://market-ticker.org/akcs-www?post=168143

    WRT Wheatstraw’s pessimism, sadly I find his prognostication likely. This is an opportunity for the Corporatists to practice a little bit more retroactive law. This crisis will be used to break the judiciary. The goal is to end redress of grievances in a court of law accessible by natural persons. You are not a citizen, you are an economic input. A resource to be appropriated.

  40. Space_Cowboy_NW says:

    Robespierre Says:

    October 4th, 2010 at 10:21 am
    “What is required here is a full blown investigation from the US Attorney’s office.”

    “Hahahaa good sense of humor there Barry. Like the government is about to bite the hands that feeds it….”

    As viewed from a Left Coast (LA/entertainment sector) perspective on control & power:

    “Never bite the hand that feeds you, but squeeze ‘em (ie their testicles)
    just enough to let ‘em know that ‘their’s are yours’!”

    Btw A friend is on year three of non-payment in Palo Alto, whenever threatening (saber rattling)
    noise emits from the lender (actually the servicer)…all he [constantly] repeats is “I want the original note”. Noise ceases and not a peep [cue the crickets] for another six months.

    He can (easily) afford the payment…but in his view: ‘Why?’

    Usual Caveat Applicable: Your mileage may vary…..

  41. Mannwich says:

    @Space Cowboy: That’s one good way of “saving” for retirement. Simply not paying one’s mortgage for an extended period.

  42. Expat says:

    I am beginning to wonder if the lunatics who suggested bulldozing all the new developments in order to prop up the housing market weren’t right after all. It would be less ridiculous than all the other crap we have gone through and less egregious than all the crap yet to come.

  43. rktbrkr says:

    Wells and CITI are still stonewalling, mumbo-jumbo about internal procedures. We all have skin in CITIs mortgage exposures…

    Treasury and the Federal Deposit Insurance Corporation will provide protection against the possibility of unusually large losses on an asset pool of approximately $306 billion of loans and securities backed by residential and commercial real estate and other such assets

  44. [...] The Big Picture says homeowners without mortgages have been foreclosed, adding “Defective documentation has created millions of blighted titles that will plague the nation for the next decade.” — Richard Kessler, an attorney in Sarasota, Florida, who conducted a study that found errors in about three-fourths of court filings related to home repossessions. [...]

  45. Lugnut says:

    The Mainstream TV news outlets are reluctant to label this as anything more than ‘paperwork inconsistencies’, rather than hang words like illegal, criminal, or fraud around it. As long as no AG is willing to blink at it, it must be legal, so they can’t pass judgement on it. They’d rather save all their editorializing for the Tea Party stories.

  46. NMR says:

    Actually you’re sitting pretty if your house in in foreclosure because you’ve stopped payments and the paperwork is screwed up. You just keep living there rent free indefinitely until it’s unscrewed. Actually it shouldn’t be too difficult to unscrew the foreclosure process side of it if the banks apply enough resource and if there’s a demand then you can bet that third party processors will step forward to fill it. Where title companies are refusing to provide cover if push comes to shove the banks could set up their own title companies to carry the risk. The real problem it seems to me is the confusion over who actually owns the liens on the houses. Maybe I’m being Panglossian but given the sums involved I suspect this will get sorted over the next year or so. These periodic outrage eruptions (nationalise the banks, the Euro is doomed, etc) usually turn out to be exaggerated and/or can be remedied if there’s an incentive.

  47. obsvr-1 says:

    @Petey Wheatstraw Says:

    Other than the execution part (replace it with a long prison sentence, at hard labor), that’s EXACTLY how the laws SHOULD be enforced in the US

    —-
    I vote for enforcement of the law and prosecution. It’s ironic that all the banksters were crying contract enforcement when there was a cry for bonus claw backs, but now they want to circumvent contract law when it comes to mortgages.

  48. obsvr-1 says:

    @Expat Says:
    October 4th, 2010 at 9:40 am

    … I bet we could subpoena every legal department on Wall Street and in all the mortgage banks and find thousands of memos and letters from the lawyers expressing their reservations about the paper trails…

    — Reply

    Yeah, but only as CYA and deflection methodology — it is these very same lawyers that drafted the contracts used by the banksters. It is the lawyers that twist the simple into complex contract entanglements to protect the corporatist and banksters on the one hand and create ambiguous, loophole infested laws and statues on the other. This time it appears that they have outsmarted themselves and if we are lucky a bunch will be tossed into jail or out of the profession.

  49. Petey Wheatstraw says:

    Arequipa01:

    Sorry I sound so pessimistic (what’s a MoFo to do?). In actuality, I’ve weathered he storm quite well, so far. Homebuilder business is way down, but Fed Contractor and Lobby/Association business is up (though the money will never match the bubble days of the builders). But it’s not like I can’t see the reality. That reality will not favor me or anyone else similarly situated (pity those who have already been crushed, and they number in the millions). That’s pretty much the entire middle class. What really gets me is the wanton and legitimized criminality of it all, coupled with the complete abandonment of reason by the American electorate — despite the daily reaming and the obvious.

    For example: The Florida Judiciary’s recent fast-tracking of foreclosure settlements, as a matter of administration, and not of law, went ignored by the people of that state.

    I recently spent 6 months in Leesburg, FL, selling my mother-in-law’s house. She took a 50% haircut (house was owned outright), and I believe she got the better end of the deal by a substantial margin. Having a long career interest in RRE, I spent quite a bit of time looking around between Leesburg and Orlando while I stayed there. There are plenty o’ neighborhoods with 50 – 100 developed lots (and I’m talkin’ completely developed — paved with curbs and sidewalks, sewer, water, street lights, storm drains, gas, cable), 3 houses, one or all of which are for sale. Somebody got seriously bankrupted on the development. This kind of shit was everywhere. Interestingly, while I was there, Lennar announces a huge new development plan to build near a high-speed rail line between orlando and Tampa (at least, I think it was Tampa). Can’t wait to see how that works out. The local governments are anticipating revenues from property taxes on this crap. They will never see a dime of it.

    In Leesburg — the demographics of which consist primarily of fixed-income retirees and the service industries that support them — there are people living in the woods. In the check-out line at the grocery store, where we in the DC area might encounter a request for a donation for some charity, there are bags of food marked @ $5/ea., for donation to the people living in the woods. The bag boys at that store are in their 70s and 80s. The goodwill store is jammed. There are no hispanics on landscaping crews — only youngish white males with middle aged white male bosses. Same goes for the fast food joints.

    During this time, in addition to the judiciary fast-tracking mentioned, above, the local courts (I believe it was Lake County), ruled that a water bottler could tap the regional aquifer for their product at no cost (I think it hinged on the bottler drilling private wells), while the citizens of the county are under permanent water restrictions, and pay for every gallon they use.

    BTW: Leesburg is Alan Grayson’s district, and the geriatric set is being propagandized to vote him out as an evil liberal, despite his well-known efforts to stem the tide of corporatism in that state.

    This hasn’t been a housing or financial crisis (although both of those things did, in fact take place) so much as it has been a coup of our government by Corporate and Banking interests.

    It’s not pessimism, it’s reality.

  50. TaosJohn says:

    @Arequipa01 “You are not a citizen, you are an economic input. A resource to be appropriated.”

    Hey, that’s exactly why I quit Facebook! :-)

  51. ZackAttack says:

    Perhaps, paradoxically, this is good news for builders, as *new* houses are unlikely to have title deficiencies.

  52. The Pale Scot says:

    I recently read somewhere that a bank’s solution to this is to create it’s own title insurance company to work it’s foreclosure sales, but the boilerplate of the insurance excludes this problem. They are trying to sell you a “special title” to the property that does not claim to be exclusive. It’s a title no independent title co. would accept.

    I thought it was here but apparently not. Maybe it’s at Naked C. or Angry Bear.

  53. Arequipa01 says:

    @PW

    Thank you for the commentary, information, analysis and the anecdotes. I didn’t intend to paint your view of our current circumstances as unjustifiably pessimistic. The reality is ugly and dispiriting. And if you recall I am the nut who was spouting off last year about the Corporation and the State in a deathmatch, so you know…I guess the challenge is to identify root causes of current problems- ‘wanton and legitimized criminality’ is a good place to start. As far as Grayson goes, I consider him a true macher, you know guts and heart. His takedown of Rep. Broun is epic and must watch video for those who long for civics lessons:

    http://videocafe.crooksandliars.com/scarce/alan-grayson-v-paul-broun

    The crux of the matter is the battle between arbitrary exercise of authority/state power and the principle of due process and restraint. A final note, your mention of elderly bagging groceries breaks my heart…when I was a twenty year old snot nosed kid I worked in a shanty town in Chimbote, Peru. One of the things I did was mix cement with a shovel (no machinery). My partner was named Eugenio Morales. 75 years old, veteran of Peru 1941 war with Ecuador…he taught me how to use a shovel so you could work all day long, all week long, all month long, all year long, etc…every time I lift a tool to work outside I think of him.

  54. The Pale Scot says:

    Ah.ha:

    It’s Wells Fargo:

    http://www.nakedcapitalism.com/2010/09/latest-real-estate-time-bomb-title-of-foreclosed-properties-clouded-wells-fargo-dumping-risk-on-hapless-buyers.html

    “Now this little problem can be solved by title insurance, right? Well, guess what, some title insurers have exited the business, some others are starting to write policies with meaningful exceptions when they can’t go to the courthouse and find a clear chain of title. Oh, and Wells is trying to steer you towards their title insurer. What do you think the odds are that their title insurance policy doesn’t have exceptions?”

  55. constantnormal says:

    One might reasonably expect that some bankster’s bonuses would be in jeopardy.

    But no, that’s what next month’s QE2 (after the election, if you please) will address.

    These days, Reason is mugged and left for dead by Reality.

    I did enjoy BR’s little jest there at the end (“What is required here is a full blown investigation from the US Attorney’s office.”) … in the corporatocracy, the role of the US Attorney’s Office is to investigate and prosecute those who would interfere with the activities of the corporations. So a “full blown investigation from the US attorney’s office in this matter would amount to pursuing the deadbeats who have failed to comply with their payment agreements. Yes, those would the contracts that the lenders cannot seem to locate or otherwise document their existence …

    And Obama has trouble understanding those who don’t appreciate his implementation of Change … this is one funny Monday morning, with comedy popping out all over. And for those who would mistake my derision for the ravings of a Glenn Beck Tea Party loon, I was taken in by the campaign promises of “chains you can believe in”, and voted for the man. Fool me once …

  56. ES says:

    The problem, though, is that while the banks are “reviewing” documentation the squatters continue to live in the houses rent free. It just rewards irresponsible again.

  57. A-Team says:

    ES wins today’s award for the single most idiotic comment of the day

    Slowing down the review process so flawed documentation that has been foreclosing people who don’t even have mortgages is rewarding the squatters?

    Seriously, go away, you are too fucking stupid to post comments around these parts.

  58. rktbrkr says:

    Wells springs the loophole on the unsuspecting at the last moment when some are emotionally committed to buying, smooooth operators. I wonder if the lawyer they supply to the buyer makes the buyer sign a statement that he can’t be trusted or replied upon.

  59. [...] “runaway foreclosure train” is going to have to slow.  (Big Picture, Calculated [...]

  60. rktbrkr says:

    I bet a lot of people who bought foreclosures from Wells just shit themselves…

  61. ES says:

    >Slowing down the review process so flawed documentation that has been foreclosing people who don’t even have mortgages is rewarding the squatters?
    Seriously, go away, you are too fucking stupid to post comments around these parts

    Sure, you find one or two examples were this happened and this is why you think all foreclosures need to stop for everybody? For how long – another 2 years? And then what?
    I want the system flashed off the foreclosures. This kicking can down the road is killing the economy.
    As for stupidity I think you flying off the handle without understanding what I meant in the first place speaks for itself.

  62. Can we please keep the ad hominem elsewhere and focus on the issues here ?

  63. Transor Z says:

    @Pale Scot at 12:23 pm

    Thanks for the NC link. I read Yves’ site regularly but didn’t give that the attention it deserved.

  64. batmando says:

    Denninger’s post today MERS/MBS/Foreclosure Goes RICO includes a scribd of the RICO filing in Kentucky. makes for a good read as a primer on the achilles’ heel of the mbs/remic debacle

  65. wunsacon says:

    Heard on hoocoodanode:
    “Wells Fargo, where stage coach robs *you*.”

  66. DeDude says:

    Next stop title insurance that really isn’t – and only cover that banks interest until it has sold the loan to Fannie and Freddie. Now if we had a consumer protection agency that would prevent the title insurance business from becoming the next rating agencies scandal wouldn’t that be something. Naaah, that would be big gobinment soci@list interference in the free markets, so don’t expect that to be done. The only kind of robbing that should be illegal is that done by poor people with guns, when rich people rob you with a pen that called capitalism (and we shall all bow down and thank them).

  67. Transor Z says:

    Now, a very great man once said
    That some people rob you with a fountain pen
    It didn’t take too long to find out
    Just what he was talkin’ about
    A lot of people don’t have much food on their table
    But they got a lot of forks ’n’ knives
    And they gotta cut somethin’

    -Bob Dylan, “Talkin’ New York”

  68. stanleybdavis says:

    Crazy thing about this crisis – it’s made prophets of both Ayn Rand AND Bob Dylan. Go figure.

  69. [...] Slowing the Runaway Foreclosure Train (October 4th, 2010) [...]

  70. [...] to demonstrate ownership, pass clear title, resolve disputes has worked for 100s of years. The recent frauds we have seen from law firms, process servers, bank legal departments, even drive through RE courts [...]