Citi Says It’s ‘Fairly Confident’ It Didn’t Use Robo-Signers, One Week After Breaking With Robo-Signing Law Firm
Last week, mega-bank Wells Fargo refused to implement a foreclosure moratorium like those put in place by Bank of America, JP Morgan Chase, and GMAC Mortgage, stating that no such step was necessary because its foreclosure process was sound and not plagued by some of the “robo-signer” issues that other banks have found. This, as it turned out, wasn’t true; a desposition uncovered by the Financial Times showed that Wells had, in fact, relied on a robo-signer to process foreclosures.
Mortgage giant Citigroup has also, thus far, been adamantly opposed to putting a foreclosure moratorium in place. This morning, on a conference call, the bank reiterated its opposition to a foreclosure freeze, saying that it’s “fairly confident” that it didn’t engage in fraudulent foreclosure practices:
Citigroup sought to allay investors’ fears over the US mortgage crisis, saying it had not uncovered any irregularities in its foreclosure process and downplaying the potential cost of buying back home loans from government entities…“We have not found evidence of robo-signing as we have gone through our review,” John Gerspach, Citi’s finance chief, said. “We are fairly confident we have not relied on robo-signers.”
“Fairly confident” doesn’t sound all that confident to me. And it’s even less convincing considering that last week, the Palm Beach Post reported that Citigroup was using a law firm — run by “foreclosure king” David Stern — that processed foreclosures using robo-signers:
Attorney Tom Ice of Royal Palm Beach-based Ice Legal said the problem is that law firm employees were doing the work, not Citi employees. “In truth, CitiMortgage not only engaged in the same practice of using a robo-signer for its cases, they used a robo-signer who is actually an employee of the foreclosure mill attorneys representing them,” said Ice, who deposed Stern operations manager Cheryl Samons last year. Samons signed as “attorney-in-fact” for CitiMortgage in some foreclosure documents.
As the Associated Press reported, a former paralegal in Stern’s office told the Florida attorney general about “a boiler-room atmosphere in which employees were pressured to forge signatures, backdate documents, swap Social Security numbers, inflate billings and pass around notary stamps as if they were salt.” Citi was so spooked by the allegations that, as of last week, it is no longer sending business to Stern’s office.
At this point, it’s really hard to tell how widespread fradulent foreclosures are (though there definitely are some), which is why it makes sense for the banks to freeze actions until the extent of the problem is known. In addition to the issues facing people who were improperly foreclosed upon, as David Dayen put it, “you just feed homebuyers into a wood chipper if you let them buy a foreclosed home in a market with such confusion.” Emptywheel has more on Stern’s antics here.
13 Responses to “The Foreclosure Zoo”
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eric seiger
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The broadcast ratings are in, and ABC News had the most watched coverage overall among networks. NBC finished 2nd in total viewers, followed by CBS. But in the younger demographic, NBC finished 1st. Oh, and Fox News averaged more ...
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eric seiger
Citi Says It’s ‘Fairly Confident’ It Didn’t Use Robo-Signers, One Week After Breaking With Robo-Signing Law Firm
Last week, mega-bank Wells Fargo refused to implement a foreclosure moratorium like those put in place by Bank of America, JP Morgan Chase, and GMAC Mortgage, stating that no such step was necessary because its foreclosure process was sound and not plagued by some of the “robo-signer” issues that other banks have found. This, as it turned out, wasn’t true; a desposition uncovered by the Financial Times showed that Wells had, in fact, relied on a robo-signer to process foreclosures.
Mortgage giant Citigroup has also, thus far, been adamantly opposed to putting a foreclosure moratorium in place. This morning, on a conference call, the bank reiterated its opposition to a foreclosure freeze, saying that it’s “fairly confident” that it didn’t engage in fraudulent foreclosure practices:
Citigroup sought to allay investors’ fears over the US mortgage crisis, saying it had not uncovered any irregularities in its foreclosure process and downplaying the potential cost of buying back home loans from government entities…“We have not found evidence of robo-signing as we have gone through our review,” John Gerspach, Citi’s finance chief, said. “We are fairly confident we have not relied on robo-signers.”
“Fairly confident” doesn’t sound all that confident to me. And it’s even less convincing considering that last week, the Palm Beach Post reported that Citigroup was using a law firm — run by “foreclosure king” David Stern — that processed foreclosures using robo-signers:
Attorney Tom Ice of Royal Palm Beach-based Ice Legal said the problem is that law firm employees were doing the work, not Citi employees. “In truth, CitiMortgage not only engaged in the same practice of using a robo-signer for its cases, they used a robo-signer who is actually an employee of the foreclosure mill attorneys representing them,” said Ice, who deposed Stern operations manager Cheryl Samons last year. Samons signed as “attorney-in-fact” for CitiMortgage in some foreclosure documents.
As the Associated Press reported, a former paralegal in Stern’s office told the Florida attorney general about “a boiler-room atmosphere in which employees were pressured to forge signatures, backdate documents, swap Social Security numbers, inflate billings and pass around notary stamps as if they were salt.” Citi was so spooked by the allegations that, as of last week, it is no longer sending business to Stern’s office.
At this point, it’s really hard to tell how widespread fradulent foreclosures are (though there definitely are some), which is why it makes sense for the banks to freeze actions until the extent of the problem is known. In addition to the issues facing people who were improperly foreclosed upon, as David Dayen put it, “you just feed homebuyers into a wood chipper if you let them buy a foreclosed home in a market with such confusion.” Emptywheel has more on Stern’s antics here.
13 Responses to “The Foreclosure Zoo”
-
Basilisc Says:
November 5th, 2010 at 6:32 am
How about this: if a partner (or associate) at a law firm is found to have represented a plaintiff in a foreclosure case in which a fraudulent affidavit has been filed (about the service, or any other aspect), then EVERY PARTNER in that firm is disbarred from practicing in the state. Regardless of who’s at fault.
I’m not a lawyer, but I think that should end the problem.
-
Winston Says:
November 5th, 2010 at 6:42 am
Would not this practice render the case null-and-void? Or could the plaintiff re-file for foreclosure?
-
Petey Wheatstraw Says:
November 5th, 2010 at 7:38 am
In light of all of the evidence of the industrial nature and mind boggling level of criminality in the foreclosure/securitization processes, along with little or no action by those charged with upholding the laws pertaining to such criminality (but apparently having plenty of time and resources to go after less serious crimes committed by individuals outside this industry), it would seem that selective enforcement of our laws is a matter of official policy.
There are many ways to skin this cat, but TPTB do not want the cat skinned. The contract between the people and the government has no requirement for specific performance, and, lacking that, there is no way to compel the authorities to uphold the law.
The People should acknowledge the fact that criminality in high places is systemic, and without a coordinated effort to force the issue, these violations of the law and the processes for bringing those responsible to justice, justice will not be served — regardless of how easy and beneficial doing so would be.
We are just becoming aware that we must fight back. Unfortunately we come to this realization as we pick ourselves up off the ground after having been knocked unconscious and robbed. We are trying to defend ourselves after the fact.
-
Petey Wheatstraw Says:
November 5th, 2010 at 7:48 am
Basilisc:
Only the Bar Associations (the corporation(s) that has (have) captured the Judiciary branch of our government) can disbar an attorney. If you think that might happen on a scale that would have a measurable effect on attorneys engaging in these violations of law and/or procedural rules of the courts, you might not understand the true level or nature of the corruption in and of our system.
-
Julia Chestnut Says:
November 5th, 2010 at 9:18 am
Guys, what it does is deprive the court of jurisdiction over the defendant. If they were never properly served, the whole case is thrown out and starts over again. Sometimes, if there was no prejudice to the defendant (I’m having a hard time figuring out how there would be no prejudice here, because lots of timelines are involved that trigger off of every move in a default and foreclosure), sometimes the case can proceed. Often if the defendant has actual knowledge of the suit, even if they weren’t properly served, the court will take that into account.
I am interested to see how Florida law treats the question of the holder in due course: this might be one of the few things that would wrest a house back from a buyer who purchased it at the courthouse steps. If the court never acquired jurisdiction of the defendant, the order permitting sale was improper. The bank in effect stole the house, and sold it. Normally, a holder in due course of collateral has huge rights. This just might be a fly in the ointment of how these things normally work. My bet is that the case law dates from the depression era, back before the rise of the vampires. This could get very interesting.
But there are two things that make courts really, really pissy: one is being openly lied to under oath – perjury – and that is what filing a patently false affidavit is. The second is having their jurisdiction invoked improperly and having things drag on or have to get redone because of it. Well there is a third that is probably not involved here, and that is being reversed. Believe me, if anything will stir an honest, but lazy or indifferent, judge to action, it is having the court played for a fool. This could be very, very interesting to watch.
As to the comments about the physical appearance of the defendant, I can’t believe the servers were too lazy to get up on facebook and find out what the defendant looks like. Sheesh.
-
beaufou Says:
November 5th, 2010 at 9:31 am
What Petey said.
-
TakBak04 Says:
November 5th, 2010 at 9:53 am
50-State Foreclosure Probe Loses Several Influential Voices after Midterm Elections/ HT Rob
Iowa Attorney General Thomas Miller, the point man on the 50-state investigation into the foreclosure mess, won reelection this week. But a number of the other 13 attorneys generals on the inquiry’s executive committee will leave in the coming months.
In Ohio, Attorney General Richard Cordray — a Democrat who was the first to sue a major lender over the foreclosure problems — lost to Republican Mike DeWine. “A campaign website for Mr. DeWine lists job creation and opposing the health-care plan as his top priorities and makes no obvious mention of the foreclosure scandal, the multistate investigation or Mr. Cordray’s lawsuit against GMAC,” noted the Wall Street Journal. On Wednesday, DeWine declined to comment on the foreclosure issue, saying that the office will “evaluate each piece of existing litigation.”
Another key official with experience dealing with mortgage companies — Arizona Attorney General Terry Goddard (D) — lost the race for governor. Goddard took the lead in negotiating a settlement, announced in October, with Wells Fargo. The lender, which was facing allegations of deceptive marketing, agreed to spend an estimated $772 million modifying loans for borrowers across the country.
Republican Tom Horne beat Democrat Felecia Rotellini to win Goddard’s former job late Wednesday, ending the Democrats’ 12-year-hold on the office.
Florida’s Bill McCollum, also influential in the investigation, will be leaving at the end of this year, having lost in the GOP’s gubernatorial primary. McCollum has been spearheading a probe into four “foreclosure mill” law firms. Republican Pam Bondi, a former state prosecutor, will take over as the new AG.
http://voices.washingtonpost.com/political-economy/2010...
The loss of Ohio’s AG Cordray is a big hit to stopping fraud by banksters. Florida’s McCollum is devastating also.
-
Mannwich Says:
November 5th, 2010 at 9:59 am
But this was all just a big mistake, BR. In fact, the whole crisis was. Now it’s over, so let’s move on, but get those deadbeats out of their homes first.
-
Lugnut Says:
November 5th, 2010 at 10:05 am
“My personal favorite are the people served in Florida whose passports prove they were in Europe at the time. ”
Also amusing from the standpoint that folks being served a foreclosure notice can afford a trip to Europe. Irony abounds.
-
Petey Wheatstraw Says:
November 5th, 2010 at 10:17 am
Years ago. a friend who had recently been admitted to the Bar would occasionally ask me to act as a process server for him (he would accompany me, but stay in the car, down the street. He didn’t like confrontation, and thought it unlikely that the person being served would get cocky with me). In Virginia, if I remember correctly, here’s what was required for proper service:
1. Knock on the door — repeatedly and loudly (as a cop would) — giving a reasonable amount of time for the knock to be answered.
2. If the knock was answered, I was to ask: Are you James Doe? If the answer was yes, I’d serve the docs. If the answer was no, I was to ask, “do you live here, and are you over 18 years old?” If the answer was yes, I was to hand that person the docs, and ask that they be given to the person being served. if the answer was no, or if no one had answered the door, i was to tape the docs to the door (on all four sides, and with removable tape).
3. I would then sign and date the affidavit of service.
That’s how it’s done in VA.
-
Petey Wheatstraw Says:
November 5th, 2010 at 10:20 am
Jeez. I should really start proofing my comments before hitting the submit button.
-
Marc P Says:
November 5th, 2010 at 3:23 pm
@Julia Chestnut:
This is a great point. I clerked for a trial court judge. I tell people the judges are like sleeping bears. Under the weight of their crushing workloads, often they appear to be distracted, board, asleep, or all three. But generally, judges are quite bright and have been put on the bench for good reasons. Once awakened from slumber, watch out.
Judges have to rely on the attorneys to provide accurate information. Judges are well aware that attorneys represent their clients and are not likely to present evidence that is not in their client’s best interest. That is why the system is designed to have both parties represented. Law is the only profession where there is a highly paid professional whose sole job is to point out all your lapses.
In many states the foreclosure process is designed to have minimal court intervention. The lenders are expected to follow a rigid set of rules regarding notice and timelines but often judges never have to get involved. The statutes are set up so that the borrower can object at any time and bring the matter in front of the judge for correction. However, judges are well aware that lenders have money and borrowers do not. Due to this, the judges are more reliant than usual on the veracity and completeness of the information provided by the lender’s attorney. A lender’s attorney who abuses that trust is asking for trouble.
My suggestion is to get some popcorn, crack open a beer, and sit back. This is going to be a good show.
-
Marc P Says:
November 5th, 2010 at 3:25 pm
Judges are board? Duh. Bored. Sorry.
Leave a Reply
You must be logged in to post a comment.
eric seiger
ABC Has Most Broadcast <b>News</b> Viewers Election Night (While Fox <b>News</b> <b>...</b>
The broadcast ratings are in, and ABC News had the most watched coverage overall among networks. NBC finished 2nd in total viewers, followed by CBS. But in the younger demographic, NBC finished 1st. Oh, and Fox News averaged more ...
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eric seiger
ABC Has Most Broadcast <b>News</b> Viewers Election Night (While Fox <b>News</b> <b>...</b>
The broadcast ratings are in, and ABC News had the most watched coverage overall among networks. NBC finished 2nd in total viewers, followed by CBS. But in the younger demographic, NBC finished 1st. Oh, and Fox News averaged more ...
Arrowheadlines: Chiefs <b>News</b> 11/5 - Arrowhead Pride
Good morning! Almost there. Here's your Kansas City Chiefs news. Enjoy.
Colts <b>News</b>: NFL: <b>NEWS</b>
NFL: NEWS. The Colts talked through the off-season about improving the running game. During a recent three-game...(11.04). NFL: NFC NEWS - . NFL: AFC NEWS - � UpClose Online: 11/03/2010 � NFL 5K Run/Walk ...
eric seiger
Citi Says It’s ‘Fairly Confident’ It Didn’t Use Robo-Signers, One Week After Breaking With Robo-Signing Law Firm
Last week, mega-bank Wells Fargo refused to implement a foreclosure moratorium like those put in place by Bank of America, JP Morgan Chase, and GMAC Mortgage, stating that no such step was necessary because its foreclosure process was sound and not plagued by some of the “robo-signer” issues that other banks have found. This, as it turned out, wasn’t true; a desposition uncovered by the Financial Times showed that Wells had, in fact, relied on a robo-signer to process foreclosures.
Mortgage giant Citigroup has also, thus far, been adamantly opposed to putting a foreclosure moratorium in place. This morning, on a conference call, the bank reiterated its opposition to a foreclosure freeze, saying that it’s “fairly confident” that it didn’t engage in fraudulent foreclosure practices:
Citigroup sought to allay investors’ fears over the US mortgage crisis, saying it had not uncovered any irregularities in its foreclosure process and downplaying the potential cost of buying back home loans from government entities…“We have not found evidence of robo-signing as we have gone through our review,” John Gerspach, Citi’s finance chief, said. “We are fairly confident we have not relied on robo-signers.”
“Fairly confident” doesn’t sound all that confident to me. And it’s even less convincing considering that last week, the Palm Beach Post reported that Citigroup was using a law firm — run by “foreclosure king” David Stern — that processed foreclosures using robo-signers:
Attorney Tom Ice of Royal Palm Beach-based Ice Legal said the problem is that law firm employees were doing the work, not Citi employees. “In truth, CitiMortgage not only engaged in the same practice of using a robo-signer for its cases, they used a robo-signer who is actually an employee of the foreclosure mill attorneys representing them,” said Ice, who deposed Stern operations manager Cheryl Samons last year. Samons signed as “attorney-in-fact” for CitiMortgage in some foreclosure documents.
As the Associated Press reported, a former paralegal in Stern’s office told the Florida attorney general about “a boiler-room atmosphere in which employees were pressured to forge signatures, backdate documents, swap Social Security numbers, inflate billings and pass around notary stamps as if they were salt.” Citi was so spooked by the allegations that, as of last week, it is no longer sending business to Stern’s office.
At this point, it’s really hard to tell how widespread fradulent foreclosures are (though there definitely are some), which is why it makes sense for the banks to freeze actions until the extent of the problem is known. In addition to the issues facing people who were improperly foreclosed upon, as David Dayen put it, “you just feed homebuyers into a wood chipper if you let them buy a foreclosed home in a market with such confusion.” Emptywheel has more on Stern’s antics here.
13 Responses to “The Foreclosure Zoo”
-
Basilisc Says:
November 5th, 2010 at 6:32 am
How about this: if a partner (or associate) at a law firm is found to have represented a plaintiff in a foreclosure case in which a fraudulent affidavit has been filed (about the service, or any other aspect), then EVERY PARTNER in that firm is disbarred from practicing in the state. Regardless of who’s at fault.
I’m not a lawyer, but I think that should end the problem.
-
Winston Says:
November 5th, 2010 at 6:42 am
Would not this practice render the case null-and-void? Or could the plaintiff re-file for foreclosure?
-
Petey Wheatstraw Says:
November 5th, 2010 at 7:38 am
In light of all of the evidence of the industrial nature and mind boggling level of criminality in the foreclosure/securitization processes, along with little or no action by those charged with upholding the laws pertaining to such criminality (but apparently having plenty of time and resources to go after less serious crimes committed by individuals outside this industry), it would seem that selective enforcement of our laws is a matter of official policy.
There are many ways to skin this cat, but TPTB do not want the cat skinned. The contract between the people and the government has no requirement for specific performance, and, lacking that, there is no way to compel the authorities to uphold the law.
The People should acknowledge the fact that criminality in high places is systemic, and without a coordinated effort to force the issue, these violations of the law and the processes for bringing those responsible to justice, justice will not be served — regardless of how easy and beneficial doing so would be.
We are just becoming aware that we must fight back. Unfortunately we come to this realization as we pick ourselves up off the ground after having been knocked unconscious and robbed. We are trying to defend ourselves after the fact.
-
Petey Wheatstraw Says:
November 5th, 2010 at 7:48 am
Basilisc:
Only the Bar Associations (the corporation(s) that has (have) captured the Judiciary branch of our government) can disbar an attorney. If you think that might happen on a scale that would have a measurable effect on attorneys engaging in these violations of law and/or procedural rules of the courts, you might not understand the true level or nature of the corruption in and of our system.
-
Julia Chestnut Says:
November 5th, 2010 at 9:18 am
Guys, what it does is deprive the court of jurisdiction over the defendant. If they were never properly served, the whole case is thrown out and starts over again. Sometimes, if there was no prejudice to the defendant (I’m having a hard time figuring out how there would be no prejudice here, because lots of timelines are involved that trigger off of every move in a default and foreclosure), sometimes the case can proceed. Often if the defendant has actual knowledge of the suit, even if they weren’t properly served, the court will take that into account.
I am interested to see how Florida law treats the question of the holder in due course: this might be one of the few things that would wrest a house back from a buyer who purchased it at the courthouse steps. If the court never acquired jurisdiction of the defendant, the order permitting sale was improper. The bank in effect stole the house, and sold it. Normally, a holder in due course of collateral has huge rights. This just might be a fly in the ointment of how these things normally work. My bet is that the case law dates from the depression era, back before the rise of the vampires. This could get very interesting.
But there are two things that make courts really, really pissy: one is being openly lied to under oath – perjury – and that is what filing a patently false affidavit is. The second is having their jurisdiction invoked improperly and having things drag on or have to get redone because of it. Well there is a third that is probably not involved here, and that is being reversed. Believe me, if anything will stir an honest, but lazy or indifferent, judge to action, it is having the court played for a fool. This could be very, very interesting to watch.
As to the comments about the physical appearance of the defendant, I can’t believe the servers were too lazy to get up on facebook and find out what the defendant looks like. Sheesh.
-
beaufou Says:
November 5th, 2010 at 9:31 am
What Petey said.
-
TakBak04 Says:
November 5th, 2010 at 9:53 am
50-State Foreclosure Probe Loses Several Influential Voices after Midterm Elections/ HT Rob
Iowa Attorney General Thomas Miller, the point man on the 50-state investigation into the foreclosure mess, won reelection this week. But a number of the other 13 attorneys generals on the inquiry’s executive committee will leave in the coming months.
In Ohio, Attorney General Richard Cordray — a Democrat who was the first to sue a major lender over the foreclosure problems — lost to Republican Mike DeWine. “A campaign website for Mr. DeWine lists job creation and opposing the health-care plan as his top priorities and makes no obvious mention of the foreclosure scandal, the multistate investigation or Mr. Cordray’s lawsuit against GMAC,” noted the Wall Street Journal. On Wednesday, DeWine declined to comment on the foreclosure issue, saying that the office will “evaluate each piece of existing litigation.”
Another key official with experience dealing with mortgage companies — Arizona Attorney General Terry Goddard (D) — lost the race for governor. Goddard took the lead in negotiating a settlement, announced in October, with Wells Fargo. The lender, which was facing allegations of deceptive marketing, agreed to spend an estimated $772 million modifying loans for borrowers across the country.
Republican Tom Horne beat Democrat Felecia Rotellini to win Goddard’s former job late Wednesday, ending the Democrats’ 12-year-hold on the office.
Florida’s Bill McCollum, also influential in the investigation, will be leaving at the end of this year, having lost in the GOP’s gubernatorial primary. McCollum has been spearheading a probe into four “foreclosure mill” law firms. Republican Pam Bondi, a former state prosecutor, will take over as the new AG.
http://voices.washingtonpost.com/political-economy/2010...
The loss of Ohio’s AG Cordray is a big hit to stopping fraud by banksters. Florida’s McCollum is devastating also.
-
Mannwich Says:
November 5th, 2010 at 9:59 am
But this was all just a big mistake, BR. In fact, the whole crisis was. Now it’s over, so let’s move on, but get those deadbeats out of their homes first.
-
Lugnut Says:
November 5th, 2010 at 10:05 am
“My personal favorite are the people served in Florida whose passports prove they were in Europe at the time. ”
Also amusing from the standpoint that folks being served a foreclosure notice can afford a trip to Europe. Irony abounds.
-
Petey Wheatstraw Says:
November 5th, 2010 at 10:17 am
Years ago. a friend who had recently been admitted to the Bar would occasionally ask me to act as a process server for him (he would accompany me, but stay in the car, down the street. He didn’t like confrontation, and thought it unlikely that the person being served would get cocky with me). In Virginia, if I remember correctly, here’s what was required for proper service:
1. Knock on the door — repeatedly and loudly (as a cop would) — giving a reasonable amount of time for the knock to be answered.
2. If the knock was answered, I was to ask: Are you James Doe? If the answer was yes, I’d serve the docs. If the answer was no, I was to ask, “do you live here, and are you over 18 years old?” If the answer was yes, I was to hand that person the docs, and ask that they be given to the person being served. if the answer was no, or if no one had answered the door, i was to tape the docs to the door (on all four sides, and with removable tape).
3. I would then sign and date the affidavit of service.
That’s how it’s done in VA.
-
Petey Wheatstraw Says:
November 5th, 2010 at 10:20 am
Jeez. I should really start proofing my comments before hitting the submit button.
-
Marc P Says:
November 5th, 2010 at 3:23 pm
@Julia Chestnut:
This is a great point. I clerked for a trial court judge. I tell people the judges are like sleeping bears. Under the weight of their crushing workloads, often they appear to be distracted, board, asleep, or all three. But generally, judges are quite bright and have been put on the bench for good reasons. Once awakened from slumber, watch out.
Judges have to rely on the attorneys to provide accurate information. Judges are well aware that attorneys represent their clients and are not likely to present evidence that is not in their client’s best interest. That is why the system is designed to have both parties represented. Law is the only profession where there is a highly paid professional whose sole job is to point out all your lapses.
In many states the foreclosure process is designed to have minimal court intervention. The lenders are expected to follow a rigid set of rules regarding notice and timelines but often judges never have to get involved. The statutes are set up so that the borrower can object at any time and bring the matter in front of the judge for correction. However, judges are well aware that lenders have money and borrowers do not. Due to this, the judges are more reliant than usual on the veracity and completeness of the information provided by the lender’s attorney. A lender’s attorney who abuses that trust is asking for trouble.
My suggestion is to get some popcorn, crack open a beer, and sit back. This is going to be a good show.
-
Marc P Says:
November 5th, 2010 at 3:25 pm
Judges are board? Duh. Bored. Sorry.
Leave a Reply
You must be logged in to post a comment.
eric seiger
eric seiger
ABC Has Most Broadcast <b>News</b> Viewers Election Night (While Fox <b>News</b> <b>...</b>
The broadcast ratings are in, and ABC News had the most watched coverage overall among networks. NBC finished 2nd in total viewers, followed by CBS. But in the younger demographic, NBC finished 1st. Oh, and Fox News averaged more ...
Arrowheadlines: Chiefs <b>News</b> 11/5 - Arrowhead Pride
Good morning! Almost there. Here's your Kansas City Chiefs news. Enjoy.
Colts <b>News</b>: NFL: <b>NEWS</b>
NFL: NEWS. The Colts talked through the off-season about improving the running game. During a recent three-game...(11.04). NFL: NFC NEWS - . NFL: AFC NEWS - � UpClose Online: 11/03/2010 � NFL 5K Run/Walk ...
eric seiger
eric seiger
ABC Has Most Broadcast <b>News</b> Viewers Election Night (While Fox <b>News</b> <b>...</b>
The broadcast ratings are in, and ABC News had the most watched coverage overall among networks. NBC finished 2nd in total viewers, followed by CBS. But in the younger demographic, NBC finished 1st. Oh, and Fox News averaged more ...
Arrowheadlines: Chiefs <b>News</b> 11/5 - Arrowhead Pride
Good morning! Almost there. Here's your Kansas City Chiefs news. Enjoy.
Colts <b>News</b>: NFL: <b>NEWS</b>
NFL: NEWS. The Colts talked through the off-season about improving the running game. During a recent three-game...(11.04). NFL: NFC NEWS - . NFL: AFC NEWS - � UpClose Online: 11/03/2010 � NFL 5K Run/Walk ...
eric seiger
ABC Has Most Broadcast <b>News</b> Viewers Election Night (While Fox <b>News</b> <b>...</b>
The broadcast ratings are in, and ABC News had the most watched coverage overall among networks. NBC finished 2nd in total viewers, followed by CBS. But in the younger demographic, NBC finished 1st. Oh, and Fox News averaged more ...
Arrowheadlines: Chiefs <b>News</b> 11/5 - Arrowhead Pride
Good morning! Almost there. Here's your Kansas City Chiefs news. Enjoy.
Colts <b>News</b>: NFL: <b>NEWS</b>
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The "produce the note" tactic is a way to fight foreclosure procedings and save your mortgage, even if a law suit has already been filed! Do not allow your mortgage holder to sabotage your home-ownership dreams. Stand up for your rights! Here's how!
Many of us have heard about the "produce the note" strategy, thanks to our nationwide news syndications on Good Morning America, CNN, ABC, CBS, FOX, NBC, and other affiliates. The question now is, how can we use this tactic to save our homes and fight foreclosure? What are the necessary steps? Who do you have to speak with? What can you do to help you save your mortgage?
Attorney John Yenchunnis has taken this mortgage crisis by the horns, so to speak, and is now educating the American public on this little-known law, which is now being called the "produce the note" law. In a nutshell, this law states that any mortgage holder has the right to require proof of ownership. You are telling the lenders that you want them to provide to the courts that they are the rightful owners of your debt, as evidenced by a copy of your original, signed mortgage note.
Is this produce the note strategy something that anybody can use to save their mortgage? Absolutely! Every homeowner facing foreclosure can, and should, use it. Everyone should put their lender to the task of establishing absolute proof that they own the debt, are the rightful recipient of all payments, and are legally allowed to collect from you! And, since many lenders are unable to do so, or at best, take a long time to collect the papers, you can often stall foreclosure procedings.
Some foreclosure papers that are filed by the mortgage lenders have inclusions such as "re-establishment of note". If the court proceeding papers state "the mortgage note has either been lost or destroyed and the Plaintiff is unable to state the manner in which this occurred." it means that they are unable to provide proof that they own the loan at all. This statement is commonly called the "lost note affidavit" This affidavit is in your favor, as it means that they cannot "produce the note" to the courts.
The lender is literally admitting to the courts that they do not have the original mortgage note! This is the best, and perhaps the most obvious, sign that they cannot produce the note to the court system. In this case, how could they possibly say that they are the legal and rightfully due party to which the mortgage moneys should be paid? You can fight foreclosure and save your mortgage by challenging this fact.
Imagine if you were able to go into any court clerk's office, file a document saying that somebody owes you money, but then provide no proof whatsoever that they do. This scenario is exactly what is taking place in many court rooms across the country, and good people are losing great homes every day. And, unless the defendant (you) speaks up and says something about it, all will be lost!
If you want to save your mortgageby virtue of the produce the note technique, stand up for your rights, and fight foreclosure, there are a few steps you should take. First and foremost, you must make it known that you want the mortgage holder to provide to you and to the courts the original mortgage agreement. In order to be legally binding, you must do so by filing a document with the court clerk called the "LEGAL REQUEST".
For your convenience, here is a link to a wordpad template of this document, which you can use for your own purposes as needed. http://www.consumerwarningnetwork.com/wp-content/uploads/2008/06/legal-request-template.doc
The lawyer handling the foreclosure case must respond within thirty days to your letter. This response must include the original mortgage note as requested. In most cases, it is so difficult to produce the note that foreclosure proceedings are either totally dismissed or stalled for very long periods of time. This gives you a chance to get your finances in order, catch up on payments, save your mortgage for a period of time, or seek alternative financing.
If there is a response, and it does in fact include the original mortgage note, you must proceed with the court hearings as planned. According to attorney Yenchunnis, the vast majority of mortgage holders cannot provide this document within the thirty day time period, if at all. Since it is unknown whether or not your lender will be able to produce the note, it is always wise to at least attempt to fight foreclosure and so save your mortgage in this way.
Once the thirty days have expired, you must then file another document with the courts, called the MOTION TO COMPEL. Here is a link to another wordpad template, specifically for this motion to compel document: http://www.consumerwarningnetwork.com/wp-content/uploads/2008/06/motion-to-compel-template.doc
This motion to compel document forces the lender to provide to the courts the original mortgage note. And, since in many cases it is impossible to do so, such as is the case in the "lost note affidavit" strategy, your foreclosure can be totally dismissed! This means that, not only were you successful in your fight over foreclosure, but your use of the produce the note strategy has helped you to save your mortgage!
The "produce the note" strategy does not forgive your mortgage note, nor does it reduce your payments. What the tactic does do, however, is force the lender to provide proof that they have the legal right to the money in question and / or to the foreclosure. They must prove that they are the legal, and current, owner of the mortgage, and this ownership must be established from the time it was originated thru and up until the present day.
The originator of the debt may not be the current owner, such as in the case of loan transfers or refinancing. The originator may not be in business anymore at all! Because there must be a clear and absolute display of legal ownership, you can buy yourself enough time to fight foreclosure and save your mortgage.
Homeowners facing foreclosure are also cautioned to watch out for hidden fees and charges imposed upon them during the foreclosure proceedings. Fees such as "home inspection", late fees, and penalties are common, yet some institutions will attempt to collect fees that are literally made up. These fees are designed to increase the mortgage company's bottom line, such as foreclosure fees, pre-bankruptcy fees, or surcharge fees. The titles for these fees may sound logical or legal, but in fact they are not. These fees are unfair and, in many cases, unwarranted. In fact, if these fees were not disclosed in the original contract, you have yet another venue in which to fight foreclosure.
If you face these fees, and especially if you want to save your mortgage during a foreclosure hearing, you should ask the lender for proof that you 1) agreed to pay these fees, as disclosed in the original mortgage documents, and in the event of foreclosure and 2) have already paid them or are required to pay them by law.
If you are behind on your mortgage payments, this is not a way to get your house loan forgiven or to avoid making payments altogether. This produce the note tactic simply gives the home buyer a bit of leverage, providing them an avenue through which they can fight foreclosure, save their mortgage, and excercise their legal rights. It also provides the buyer a little bit of time to work out new payment arrangements with the lender, to catch up on delinquent payments, or to seek alternative financing.
If today is your court date, and you will be standing before a judge today, then speak up and say "I want this lender to PRODUCE THE NOTE! And, while you are reading this, why not go ahead and print off those templates and file them with the court clerk before you ever step foot into the court room? After all, if you want to save your mortgage, isn't it wise to do everything in your power to fight foreclosure?
Note: A similar version of the produce the note technique can also be used when dealing with creditors, debt collectors, and junk debt buyers (who are notorious for filing lawsuits).
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Basilisc Says:
November 5th, 2010 at 6:32 am
How about this: if a partner (or associate) at a law firm is found to have represented a plaintiff in a foreclosure case in which a fraudulent affidavit has been filed (about the service, or any other aspect), then EVERY PARTNER in that firm is disbarred from practicing in the state. Regardless of who’s at fault.
I’m not a lawyer, but I think that should end the problem.
Winston Says:
November 5th, 2010 at 6:42 am
Would not this practice render the case null-and-void? Or could the plaintiff re-file for foreclosure?
Petey Wheatstraw Says:
November 5th, 2010 at 7:38 am
In light of all of the evidence of the industrial nature and mind boggling level of criminality in the foreclosure/securitization processes, along with little or no action by those charged with upholding the laws pertaining to such criminality (but apparently having plenty of time and resources to go after less serious crimes committed by individuals outside this industry), it would seem that selective enforcement of our laws is a matter of official policy.
There are many ways to skin this cat, but TPTB do not want the cat skinned. The contract between the people and the government has no requirement for specific performance, and, lacking that, there is no way to compel the authorities to uphold the law.
The People should acknowledge the fact that criminality in high places is systemic, and without a coordinated effort to force the issue, these violations of the law and the processes for bringing those responsible to justice, justice will not be served — regardless of how easy and beneficial doing so would be.
We are just becoming aware that we must fight back. Unfortunately we come to this realization as we pick ourselves up off the ground after having been knocked unconscious and robbed. We are trying to defend ourselves after the fact.
Petey Wheatstraw Says:
November 5th, 2010 at 7:48 am
Basilisc:
Only the Bar Associations (the corporation(s) that has (have) captured the Judiciary branch of our government) can disbar an attorney. If you think that might happen on a scale that would have a measurable effect on attorneys engaging in these violations of law and/or procedural rules of the courts, you might not understand the true level or nature of the corruption in and of our system.
Julia Chestnut Says:
November 5th, 2010 at 9:18 am
Guys, what it does is deprive the court of jurisdiction over the defendant. If they were never properly served, the whole case is thrown out and starts over again. Sometimes, if there was no prejudice to the defendant (I’m having a hard time figuring out how there would be no prejudice here, because lots of timelines are involved that trigger off of every move in a default and foreclosure), sometimes the case can proceed. Often if the defendant has actual knowledge of the suit, even if they weren’t properly served, the court will take that into account.
I am interested to see how Florida law treats the question of the holder in due course: this might be one of the few things that would wrest a house back from a buyer who purchased it at the courthouse steps. If the court never acquired jurisdiction of the defendant, the order permitting sale was improper. The bank in effect stole the house, and sold it. Normally, a holder in due course of collateral has huge rights. This just might be a fly in the ointment of how these things normally work. My bet is that the case law dates from the depression era, back before the rise of the vampires. This could get very interesting.
But there are two things that make courts really, really pissy: one is being openly lied to under oath – perjury – and that is what filing a patently false affidavit is. The second is having their jurisdiction invoked improperly and having things drag on or have to get redone because of it. Well there is a third that is probably not involved here, and that is being reversed. Believe me, if anything will stir an honest, but lazy or indifferent, judge to action, it is having the court played for a fool. This could be very, very interesting to watch.
As to the comments about the physical appearance of the defendant, I can’t believe the servers were too lazy to get up on facebook and find out what the defendant looks like. Sheesh.
beaufou Says:
November 5th, 2010 at 9:31 am
What Petey said.
TakBak04 Says:
November 5th, 2010 at 9:53 am
50-State Foreclosure Probe Loses Several Influential Voices after Midterm Elections/ HT Rob
Iowa Attorney General Thomas Miller, the point man on the 50-state investigation into the foreclosure mess, won reelection this week. But a number of the other 13 attorneys generals on the inquiry’s executive committee will leave in the coming months.
In Ohio, Attorney General Richard Cordray — a Democrat who was the first to sue a major lender over the foreclosure problems — lost to Republican Mike DeWine. “A campaign website for Mr. DeWine lists job creation and opposing the health-care plan as his top priorities and makes no obvious mention of the foreclosure scandal, the multistate investigation or Mr. Cordray’s lawsuit against GMAC,” noted the Wall Street Journal. On Wednesday, DeWine declined to comment on the foreclosure issue, saying that the office will “evaluate each piece of existing litigation.”
Another key official with experience dealing with mortgage companies — Arizona Attorney General Terry Goddard (D) — lost the race for governor. Goddard took the lead in negotiating a settlement, announced in October, with Wells Fargo. The lender, which was facing allegations of deceptive marketing, agreed to spend an estimated $772 million modifying loans for borrowers across the country.
Republican Tom Horne beat Democrat Felecia Rotellini to win Goddard’s former job late Wednesday, ending the Democrats’ 12-year-hold on the office.
Florida’s Bill McCollum, also influential in the investigation, will be leaving at the end of this year, having lost in the GOP’s gubernatorial primary. McCollum has been spearheading a probe into four “foreclosure mill” law firms. Republican Pam Bondi, a former state prosecutor, will take over as the new AG.
http://voices.washingtonpost.com/political-economy/2010...
The loss of Ohio’s AG Cordray is a big hit to stopping fraud by banksters. Florida’s McCollum is devastating also.
Mannwich Says:
November 5th, 2010 at 9:59 am
But this was all just a big mistake, BR. In fact, the whole crisis was. Now it’s over, so let’s move on, but get those deadbeats out of their homes first.
Lugnut Says:
November 5th, 2010 at 10:05 am
“My personal favorite are the people served in Florida whose passports prove they were in Europe at the time. ”
Also amusing from the standpoint that folks being served a foreclosure notice can afford a trip to Europe. Irony abounds.
Petey Wheatstraw Says:
November 5th, 2010 at 10:17 am
Years ago. a friend who had recently been admitted to the Bar would occasionally ask me to act as a process server for him (he would accompany me, but stay in the car, down the street. He didn’t like confrontation, and thought it unlikely that the person being served would get cocky with me). In Virginia, if I remember correctly, here’s what was required for proper service:
1. Knock on the door — repeatedly and loudly (as a cop would) — giving a reasonable amount of time for the knock to be answered.
2. If the knock was answered, I was to ask: Are you James Doe? If the answer was yes, I’d serve the docs. If the answer was no, I was to ask, “do you live here, and are you over 18 years old?” If the answer was yes, I was to hand that person the docs, and ask that they be given to the person being served. if the answer was no, or if no one had answered the door, i was to tape the docs to the door (on all four sides, and with removable tape).
3. I would then sign and date the affidavit of service.
That’s how it’s done in VA.
Petey Wheatstraw Says:
November 5th, 2010 at 10:20 am
Jeez. I should really start proofing my comments before hitting the submit button.
Marc P Says:
November 5th, 2010 at 3:23 pm
@Julia Chestnut:
This is a great point. I clerked for a trial court judge. I tell people the judges are like sleeping bears. Under the weight of their crushing workloads, often they appear to be distracted, board, asleep, or all three. But generally, judges are quite bright and have been put on the bench for good reasons. Once awakened from slumber, watch out.
Judges have to rely on the attorneys to provide accurate information. Judges are well aware that attorneys represent their clients and are not likely to present evidence that is not in their client’s best interest. That is why the system is designed to have both parties represented. Law is the only profession where there is a highly paid professional whose sole job is to point out all your lapses.
In many states the foreclosure process is designed to have minimal court intervention. The lenders are expected to follow a rigid set of rules regarding notice and timelines but often judges never have to get involved. The statutes are set up so that the borrower can object at any time and bring the matter in front of the judge for correction. However, judges are well aware that lenders have money and borrowers do not. Due to this, the judges are more reliant than usual on the veracity and completeness of the information provided by the lender’s attorney. A lender’s attorney who abuses that trust is asking for trouble.
My suggestion is to get some popcorn, crack open a beer, and sit back. This is going to be a good show.
Marc P Says:
November 5th, 2010 at 3:25 pm
Judges are board? Duh. Bored. Sorry.