Posts filed under “Foreclosures”
Over the past 2 years, I have warned repeatedly about the dangers to American property rights caused by massive bank fraud, A deadly combination of MERS, robo-signing, and illegal shortcuts have created a horrific situation. A bedrock of our society — the ability for the owner of a piece of real estate to confidently convey that property, along with all associated property rights — is now in danger.
It was the inevitable result of the frauds that too many state Attorneys General seem unwilling to prosecute.
The end results of that massive fraud, and the State’s refusal to hold the wrongdoers accountable, are simply this:
“The highest court in Massachusetts ruled that a homeowner who bought a foreclosure that hadn’t been properly conducted by the foreclosing bank in 2006 didn’t have legal ownership of the property.
The decision by the Supreme Judicial Court casts a cloud over the legal ownership of any properties in Massachusetts where banks didn’t properly convey title when foreclosing. The problem has gained attention nationwide because of banks’ use of “robo-signing” and other dubious practices that may have broken chains of title on foreclosures.
The case follows a previous state court decision that voided a foreclosure when banks couldn’t prove that they owned mortgages when they initiated foreclosure proceedings.”
(WSJ, State Rules on Foreclosure)
The Rule of Law is yet another bedrock foundation of this nation. It seems to get ignored when the criminals involved received billions in bipartisan bailout monies.
The line of bullshit being used on State AGs is that we risk an economic crisis if we prosecute these folks.
The people who claim that fail to realize that the opposite is true — the protest at Occupy Wall Street, the negative sentiment, the general economic angst — traces itself to the belief that there is no justice, that senior bankers have gotten away with economic murder, and that we have a two-tiered criminal system, one for the rich and one for the poor.
Today’s NYT notes the gloom that has descended over consumers, and they suggest it may be home prices. I think they are wrong — in my experience, the sort of generalized rage and frustration comes about when people realize the institutions they have trusted have betrayed them. Humans deal with financial losses in a very specific way — and its not fury. This is about a fundamental breakdown of the role of government, courts, and leadership in the nation. And it all traces back to the bailouts of reckless bankers, and the refusal to hold then in any way accountable.
There will not be a fundamental economic recovery until that is recognized.
Florida AG Takes Orders, Money from Fraudclosure Firm (October 12th, 2011)
About That Perjury, Judge . . . (January 11th, 2011)
Foreclosure Mill Attorney Explains How to Commit Fraud (December 30th, 2010)
The Big Lie on Fraudclosure (October 29th, 2010)
Foreclosure Fraud: “Systemic, Industrywide, Pervasive” (October 16th, 2010)
The Impact of Error From Securitization to Foreclosure (October 15th, 2010)
Legal Impossibilities & Foreclosure Errors (October 14th, 2010)
Why Foreclosure Fraud Is So Dangerous to Property Rights (October 12th, 2010)
Foreclosure Fraud Reveals Structural & Legal Crisis (October 5th, 2010)
State Rules on Foreclosure
WSJ, October 19, 2011
Gloom Grips Consumers, and It May Be Home Prices
NYT, October 18, 2011
Last year, we noted the fantastic report issued at of the Florida Attorney General’s office that detailed the rampant fraud in the foreclosure operations of major loan servicers and banks (Florida Attorney General Report on Fraudclosure). It was put together by June Clarkson and Theresa Edwards. That was before the AG’s office was sold to…Read More
“This is a big new front. This case is scary because if Dallas wins then there are a lot of other counties around the country that are going to follow.” -Christopher L. Peterson, associate dean and professor at the University of Utah S.J. Quinney College of Law. > In all of the market mayhem of…Read More
As hard as it may seem to believe, the largest mortgage servicers are still fabricating documents for use in foreclosures. That’s according to an article in American Banker, titled Robo-Signing Redux: Servicers Still Fabricating Foreclosure Documents. Key points: • The practice continues a year after the companies were caught in the robo-signing scandal, even as…Read More
click for ginormous graphic > Today’s WTF data point is how long it will take to work through the backlog of foreclosures at the current pace: “In New York State, it would take lenders 62 years at their current pace, the longest time frame in the nation, to repossess the 213,000 houses now in severe…Read More
In April 2010, we discussed the false meme that defaulting homeowners were about to cause a surge in retail spending (Are Defaults Really Driving Retail Spending?). That blessedly data free idea turned out to be wrong. But as the backers of Supply-Side economics will tell you, its hard to keep a bad idea down. Thus, the…Read More
In our Think Tank, you will find a fascinating GAO document on Mortgage Foreclosures, titled Documentation Problems Reveal Need for Ongoing Regulatory Oversight. Its chock full of great charts and insights: > Flow of Payments in a Basic Securitized Transaction Typical Judicial and Nonjudicial Foreclosure Processes