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Weekend Edition - November 19, to November 23, 2012 - ForeclosureGate Gazette

Weekend Edition - November 19, to November 23, 2012 - ForeclosureGate Gazette

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Weekend Edition - November 19, to November 23, 2012 - ForeclosureGate Gazette
Weekend Edition - November 19, to November 23, 2012 - ForeclosureGate Gazette

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Published by: ForeclosureGate Gazette on Nov 24, 2012
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ACADEMIA ADVERSARIES ADVOCATES BLOGOSPHERE LEGAL LEGISLATE OP-ED HOMEOWNERS NEWS ForeclosureGate.org Is A Public Service Homeowner Coalition and Cooperative, Created To Exchange News And Information And To Advance Justice For American Homeowners

Court systems wake up to loan securitization As has happened to hundreds of thousands, if not millions, of homeowners defending their homes against foreclosure, Daniel suffered an adverse judgment based upon a vague and generic affidavit which was executed by an employee of the loan servicer, rather than the loan owner or holder. Of course, being prepared by a lawyer, the affidavit contained all the appropriate catch phrases meant to mislead the judge into believing everything was in order, and there was no reason to continue to waste everyone’s time by requiring a trial….

Debate over MERS, foreclosure mediation needs to end soon On Thursday, Multnomah County commissioners voted to file a lawsuit seeking damages for allegedly unpaid document-recording fees from Mortgage Electronic Registration Systems. It isn't the first lawsuit against MERS, its owner MERSCORP Holdings and the banks that use the system. It probably won't be the last. But any other government body in Oregon considering such a suit needs to speak up now or stay out of the fight….

Foreclosure mess Superstorm Sandy





Before Superstorm Sandy, some of the hardest-hit areas in New York, New Jersey and Connecticut were experiencing a huge spike in foreclosures. But now that a moratorium on foreclosure activity in these disaster areas has been put in place, the foreclosure problems are about to get worse. In the 34 counties that have been declared disaster areas, close to 125,000 homes were already in some stage of foreclosure or bank-owned at the end of October, a 54% increase from the….

Mass. awards $4M in grants for foreclosure crisis A total of $4 million in grants have been awarded to 18 organizations around Massachusetts to help address the foreclosure crisis. The grants will help homeowners and renters, revitalize blighted neighborhoods and help prevent future financial harm. State Attorney General Martha Coakley says the grants come from a national settlement involving the nation’s five largest….

Existing-home sales fall in September The National Association of Realtors said that existing-home sales fell in September. Sales of previously owned homes, which include singlefamily homes, townhomes, condominiums and coops, were down 1.7 percent from the previous month to 4.75 million, but up 11 percent from September 2011, which led NAR economist Lawrence Yun to reaffirm his belief in the market’s well-being….

Second mortgages rebound as banks’ confidence in housing market seems to grow If you have a pressing need to raise some cash, here’s some good news: Rising home values are encouraging lenders to revive a product that imploded during the housing bust years: second mortgages. Researchers at Equifax, one of the three national credit bureaus, say total outstanding balances of residential second mortgages at banks rose in the latest month for the first time in nearly five years….

Glen Ellyn Median Home Significantly in September



Glen Ellyn saw a slight drop in the number of homes sold in September, with 27 home sales, two fewer than in 2011, a 6.9 percent decline. The biggest decline was in median sales price, which dropped 35.6 percent from $400,000 in Sept. 2011 to $257,500 in Sept. 2012. The average sale price in Sept. 2012 was $313,543. Burr Ridge experienced the greatest decline in homes sales among the DuPage sample with a….

If FHA’s losses are due to bad economy, why is Fannie blaming borrowers in lawsuit against Bank of America? According to BloombergBusinessweek just two days ago on November 15, 2012, the Federal Housing Administration (“FHA”) is going to need to be the next multi-billion dollar taxpayer funded bailout. The aid will have to come from the U.S. Treasury before the end of the year in order to make up for losses caused by defaulting loans it insures. That should NOT be “news” to anyone paying attention. Everyone has been talking about FHA being “the next bailout” for almost two years….

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ACADEMIA ADVERSARIES ADVOCATES BLOGOSPHERE LEGAL LEGISLATE OP-ED HOMEOWNERS NEWS ForeclosureGate.org Is A Public Service Homeowner Coalition and Cooperative, Created To Exchange News And Information And To Advance Justice For American Homeowners

Big banks give $22 billion in mortgage relief under deal Monday's report by Joseph Smith, the former North Carolina Banking Commissioner who is serving as the settlement's monitor, said the five banks together have provided about $22 billion in customer relief, up from $10.6 billion in August. The banks reached the settlement in February with state and federal officials to resolve allegations of faulty foreclosures. The pact requires banks to provide around $20 billion of…. Wells Fargo Sandy Mortgage Delays May Violate National Mortgage Settlement, New York AG Warns New York Attorney General Eric Schneiderman on Friday warned Wells Fargo & Co that the U.S. bank's policy to delay mortgage modification decisions in states affected by Hurricane Sandy likely violates a national mortgage settlement. But the No. 4 U.S bank by assets said its actions were being misinterpreted and that it was simply taking steps to make sure customers received the help they needed…. Rhode Island: Gray v. MERS - Proceed To Trial Pg 13: Finally, Plaintiffs allege that the Note is current or has been satisfied. Considering this allegation as true and in the light most favorable to Plaintiffs, Defendants‟ Motion to Dismiss must be denied because the absence of default, if established as true by the finder of fact, would be a defense to a foreclosure allegedly triggered by borrower‟s default under the Note. For that reason alone, Plaintiffs‟ Complaint cannot be dismissed, and Plaintiffs must be given an….

How to File an Objection to a Foreclosure Order to Show Cause or to a Corrected “Notice of Intention to Foreclose” The New Jersey Supreme Court recently held in U.S. Bank N.A. v. Guillaume, 209 N.J. 449 (2012), that mortgage lenders seeking to foreclose on a residential property must comply with the New Jersey Fair Foreclosure Act’s requirement that a Notice of Intention to Foreclose set forth the name and address of the lender....

Why the Foreclosure Crisis is Getting Worse Although the housing market is showing signs of recovery, other indicators show the foreclosure crisis is getting worse. In a September interview with U.S. News, Austan Goolsbee, the former chairman of the Council of Economic Advisers, said, "I think there's a lot wrong in the housing market. If Fannie and Freddie would start enabling people to rent out the vacant homes, that would also help."…

Achieving Homeownership After a Foreclosure: Report Apparently, if one loses his or her home to foreclosure, the waiting period to qualify for another mortgage can easily be another decade. According to a report from the Federal Reserve Bank of San Francisco, a mere 10 percent of borrowers with a history showing a serious delinquency were able to obtain a mortgage again within 10 years….

California home sales dipped 16.5% It is normal for there to be a drop in home sales between August and September, however the dip last month was more significant. This is primarily due to the month starting and ending with a weekend and with fewer business days than normal. California sales in September varied from the low end of 24,460 back in 2007 to the high end of 69,304 in 2003….

More wealthy home buyers are closing before financing It’s called delayed financing, in which buyers pay cash for a home and then take out a mortgage soon after closing. Rarely used even two years ago, experts say it has picked up over the past 12 months. “It was an extremely unusual phenomenon, but it’s going on quite a bit now,” says Jack McCabe, an independent housing analyst in Deerfield Beach, Fla. The practice is growing mostly in affluent coastal housing markets, including New York and San Francisco. And it all boils down to competition….

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ACADEMIA ADVERSARIES ADVOCATES BLOGOSPHERE LEGAL LEGISLATE OP-ED HOMEOWNERS NEWS ForeclosureGate.org Is A Public Service Homeowner Coalition and Cooperative, Created To Exchange News And Information And To Advance Justice For American Homeowners

Formal Criminal Charge Filed in Florida Against Lorraine Brown, President of DocX Similarly, the short criminal charge against Brown in Florida alleges this conspiracy of one. Brown ran DocX operations, eventually under the title of President and Senior Managing Director of “LPS Document Solutions, a Division of LPS.” In this capacity, DocX created and executed mortgage-related documents for a variety of servicers. And during this time, DocX falsified mortgage assignments, lost note affidavits and just about every other kind of mortgage document out there, documents that eventually got used as evidence for foreclosure in state courts, with title insurers and with local recording clerks….

Short Sales Continue to Dominate Consumer Relief in Foreclosure Fraud Settlement In other words, there’s a formula for consumer relief eligible under the settlement, and it hasn’t yet been applied. So we don’t know how much progress the banks have made with honoring the settlement. And we don’t get enough detail in this report to make the calculation – some principal reductions will not get full credit, because the loan type isn’t in the banks’ portfolio, but a private investor’s portfolio, for example…. LPS Data Shows Ups and Downs of the Foreclosure Crisis In September, LPS’s delinquency rate was 7.4 percent, which was a 7.72 percent increase over August. The company defines its “delinquency rate” as reporting 30 days or more past due, but not yet in foreclosure. In 2012, the rate went up in April, May and June, before declining in July and August, so now it’s up again in September. So, since last April, the LPS scoreboard says: UP-3 months… DOWN-2 months… and then UP-1 month….

San Diego County registry ordinance



Beginning in early 2013, San Diego banks will be required to register foreclosed homes into a tracking database, according to U-T San Diego, the region's local publication. Approved by City Council Tuesday, the city ordinance will help code enforcement officers pinpoint potential problem properties that could provoke crime, safety issues and declines in property values, the article's….

Minuses, Pluses for Connecticut In New Foreclosure Report There is an encouraging sign on the home foreclosure front today: a new report shows that activity in the third quarter fell in 131, or 62 percent, of the nation’s 212 metro areas with a population of 200,000 or more. But Connecticut doesn’t have much to celebrate. RealtyTrac, which tracks and markets foreclosed properties, said today the four Connecticut metro areas that made the list….

Bank of America sued for alleged mortgage fraud The Justice Department is seeking $1 billion from Bank of America, alleging the bank committed fraud by selling defective mortgages from a program it says was known within the bank as "the Hustle." Those mortgages were purchased by government-backed mortgage finance firms Fannie Mae and Freddie Mac, resulting in over $1 billion in losses for taxpayers and countless foreclosures….

MBA issues mortgage refinance slowdown warning The Mortgage Bankers Association is warning it expects to see $1.3 trillion in mortgage originations during 2013. This is down more than 25% from its revised estimation of $1.7 trillion in 2012. Refinancings will retain the lion's share of mortgage origination, but will also experience the slowdown. Refinances are expected to fall to $785 billion in 2013, down from a revised estimate of $1.2 trillion in 2012….

CFPB, FTC launch six investigations over mortgage ads The Consumer Financial Protection Bureau and the Federal Trade Commission launched six formal investigations of lenders, suggesting the firms may have violated the law by releasing misleading mortgage ads. A dozen other firms received warning letters about their advertising practices this week. The agencies announced Monday that the six companies under the bureau's lens are being checked out for serious violations of the law….

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ACADEMIA ADVERSARIES ADVOCATES BLOGOSPHERE LEGAL LEGISLATE OP-ED HOMEOWNERS NEWS ForeclosureGate.org Is A Public Service Homeowner Coalition and Cooperative, Created To Exchange News And Information And To Advance Justice For American Homeowners

The Lorraine Brown Case: Accountability for Fraudulent Document Preparers, Not the Banks Who Requested the Documents The Justice Department has issued their formal press release in the plea arrangement with Lorraine Brown, the former President of fraudulent foreclosure document processor DocX, a division of LPS. Brown pleaded guilty to wire and mail fraud and faces five years in prison and up to $250,000 in fines, from what DoJ describes as “a sixyear scheme to prepare and file more than 1 million fraudulently signed and notarized mortgage-related documents with property recorders’ offices throughout the United States.” She also acknowledged lying to the FBI and other federal regulators investigating the scheme….

Banks Attempting to Fight MERS Decision With Public Relations The banks are threatening to slow down lending because of the Oregon MERS decision. They want to be fear in the hearts of realtors and sellers alike who will no doubt be recruited to join in lobbying efforts to change the law in Oregon to allow MERS in the chain of title. People who live in Oregon should be VERY vigilant to see that such a provision doesn’t get tacked onto to some innocuous bill that has nothing to do with MER….

Guilty Pleas in Foreclosure Fraud Cases “If citizens had filed these types of documents with a bank in an attempt to get a loan, the banks would have filed criminal cases against them,” Mr. Koster said. “The mortgage servicing industry has to be held to the same standard that the banks hold the rest of us to.”….............. The founder and former president of DocX, once one of the nation’s largest foreclosure-processing companies, pleaded guilty on Tuesday to fraud in one of the few criminal cases to have arisen….

Why Freddie Mac Resisted Refis Freddie Mac, the taxpayer-owned mortgage giant, made it harder for millions of Americans to refinance their high-interest-rate mortgages for fear it would cut into company profits, present and former Freddie Mac officials disclosed in recent interviews. In closed door meetings, two Republican-leaning board members and at least one executive resisted a mass refi policy for an additional reason, according to the interviews: They regarded it as a backdoor economic….

The Growth of Modern Finance ABSTRACT The U.S. financial services industry grew from 4.9% of GDP in 1980 to 7.9% of GDP in 2007. A sizeable portion of the growth can be explained by rising asset management fees, which in turn were driven by increases in the valuation of tradable assets, particularly equity. Another important factor was growth in fees associated with an expansion in household credit, particularly fees associated with residential mortgages....

DeMarco Shrinks Fannie-Freddie Help From Congress


Bernanke Speaks on Impact of Crises on Minorities, Low-Income Families “Lower-income and minority communities are often disproportionately affected by problems in the national economy, and the effects of the housing bust have followed that unfortunate pattern,” Bernanke stated. He pointed out that while homeownership has declined for the nation overall, the decline has been steepest among households with incomes of $20,000 or less….

The man with power over more than half of U.S. mortgages lives in a 1961 brick split-level house. There’s a basketball hoop in the driveway and a green Subaru Outback in the carport. The homes on Edward J. DeMarco’s block are so close that neighbors see into each other’s windows. This surprised several dozen demonstrators, one in a vampire costume, who arrived at DeMarco’s….

US Senator-Elect Elizabeth Warren: You Go Girl ! Reform the Filibuster Far too often, we've seen good ideas stall in the Senate because a single Senator can stop everything without a single word uttered on the Senate floor. In a few short weeks, we can reform the filibuster. But it won't be easy. And it's going to require that the American people speak with one, clear, loud voice. Take action now: Tell the Senate to fix the filibuster. Thank you.

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ACADEMIA ADVERSARIES ADVOCATES BLOGOSPHERE LEGAL LEGISLATE OP-ED HOMEOWNERS NEWS ForeclosureGate.org Is A Public Service Homeowner Coalition and Cooperative, Created To Exchange News And Information And To Advance Justice For American Homeowners

Obama's $26 Billion Foreclosure Fraud Fix Was Just A Settlement For Big Banks On November 19th, the core of the Obama “Justice” Department’s “49 State Settlement,” of the millions of fraud claims by the suing mortgagees against the mega-banks who were trying to foreclose on robo-signed and other dubious mortgages, was finally announced, and it basically gave the mega-banks what they wanted: all of the money they could possibly get out of those mortgagees, and with future U.S. taxpayers furthermore absorbing the resulting losses…. There would be no prosecutions of mega-bank executives for any of the frauds those mega-bank executives had planned and overseen, which had led to these enormous crimes, and thus to the 2008 crash….

FL: Pinellas woman protests foreclosure in front of bank A Pinellas County woman finds herself sleeping on the streets this holiday weekend, and she blames Bank of America. She's been protesting all week long outside the bank in South Pasadena, in Pinellas County. The bank says it tried to help, but they're blaming another bank for forcing her out of her home. Like so many of foreclosures, sorting it out is not an easy thing to do – and in the meantime, Ruth Bartlett says she has nowhere to go….

Attorney General Seeks Tax Break, Debt Relief for Homeowners Attorney General George Jepsen is leading a national effort by state attorneys general who are urging Congress to extend tax relief for consumers who have mortgage debt canceled or forgiven because of financial hardship or a decline in housing values. Jepsen co-authored a letter with Florida Attorney General Pamela Bondi, which was signed onto by 40 other attorneys general and sent today to U.S. House and Senate leaders. It asked the leaders to extend the exclusion….

Great Recession creates 4.8 million renters The United States added 4.8 million renters in the past six years while losing 1.7 million owner households as the dynamics of the real estate space changed in the wake of the 2008 financial meltdown, according to the Mortgage Bankers Association. The market experienced additional changes in the first nine months of 2012, creating unexpected outcomes in the housing finance sector, prompting the MBA to alter its forecast for 2012….

Foreclosed family watches helplessly craigslist crowds strip house bare


A family in Woodstock, who just lost their home of 20 years to foreclosure and are preparing to move out, lost even more on Wednesday. And it was all because they inadvertently triggered what they now call "mayhem" when they posted a craigslist ad Tuesday night. Their online post was just a well-meaning ad for a giveaway of furniture and other household items in their driveway outside the small house….

Can a Broken Chain Lead to Cancellation of Instrument: NO! In the strategy I have dubbed DENY and DISCOVER I have cautioned lawyers and pro se litigants from starting with an attack on the documents which clouds the mind of the Judge. You should start by denying that the money came from the party on the note, denying that you ever completed a financial transaction….

Mortgage delinquencies spike in September, report says While new delinquencies spiked in September, the volume of properties in foreclosure continues to shrink as banks and other financial institutions continue to work through a backlog of distressed real estate that remains well above historical levels of half of a percent or so, according to most industry experts….

HUD Secretary Announces Foreclosure Protection For Displaced Delaware Storm Victims U.S. Housing and Urban Development Secretary Shaun Donovan today announced HUD will speed federal disaster assistance to the State of Delaware and provide support to homeowners and low-income renters forced from their homes due to Hurricane Sandy. On Friday, President Obama issued a disaster declaration for Kent, New Castle and Sussex Counties. The President’s declaration allows HUD to offer foreclosure relief and other assistance to certain families living in these counties….

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