Florida AG 2 million settlement award: What about the homeowner?

Florida AG - Pam Bondi

March 26, 2011 - Yesterday, it was announced that the Florida Attorney General Office is receiving a settlement award of 2 million dollars.  The settlement is against attorney Marshall C. Watson and his law firm. A foreclosure mill which has been accused of improperly prosecuting foreclosure cases in Florida.

The distribution of the award is questionable and will not benefit those that have gone to bat to try to provide information to make the settlement possible.  Those who have lost their homes are already quite possibly on the street, in less than adequate shelter or staying with relatives. Homes have been ripped apart, pets left behind or split from family members. Jobs lost.  Wherever they are - those homeowners, rushed through foreclosure mill tactics,  were the ones injured. Florida State instead of helping with a settlement for those injured is using the settlement money to defray the taxpayer from funding investigation costs and to give a grant to Legal Aid to hire more lawyers to assist homeowners FACING foreclosure.   

With reservations which are outlined below we  applaud the determination to make law firms accountable for accuracy,

“We are aggressively investigating these law firms in order to protect the interests of everyone involved in foreclosure proceedings. Homeowners, lending institutions and the courts deserve to know that the law is being followed and all documentation is true and accurate,” stated Attorney General Pam Bondi. “Anything short of total assurance of complete accuracy during such serious situations is unacceptable.” - Florida AG 

If fraud is the basis of the settlement, shouldn't the fraud be reversed and the homeowner injured be compensated FULLY?  Where is the equity and where is help?   READ posts about the fraud perpetrated by the banks and then what is happening in courts.  Contract law is not being upheld except when it benefits the banks. Shouldn't part of the settlement have been fixing the wrongful foreclosures.  Shouldn't the state revise laws immediately to protect homeowners.  I want to be fair, spending money for Legal Aid lawyers to help prevent foreclosure actions is good but should not replace helping those already harmed by these seedy law firms. 

"Half of the $2 million payment from Marshall Watson’s firm to the Attorney General’s Office will be contributed to the Florida Bar Foundation to continue the Florida Attorney General Mortgage Foreclosure Grant Program. This grant program provides for the funding of Legal Aid attorney positions throughout Florida specifically devoted to the representation of low-income individuals facing foreclosure actions. " - Florida AG newsrelease

INQUIRING MINDS would like to know why it takes AG's to do the job (AND DETERMINE SETTLEMENT AWARDS) when the courts ARE NOT doing their job.  If Florida and other states had the judges with 1/2 the caliber of New York's Judge Schack, the necessity of the AG investigation would be moot point.  Taxpayer dollars would be saved and the economy could recover. 

Sometimes Government just looks at things backwards. For SEVERAL YEARS this wrongdoing has been ignored by courts, states and banks.  WE are talking MILLIONS of homeowners nationwide. Maybe we need to start suing the states to recover settlement damage for fraud perpetrated upon homeowners. Government seems powerless to help those that are really the victims in this whole toxic loan, mortgage fraud and foreclosure fraud mess. Anyone care to step up to the plate? 

Coping With Chicago's Foreclosure 'War Zones'

This is so wrooooong. cities are given hundreds of thousands of dollars to deal with this mess caused by BANK NEGLECT, FRAUD and GREED. Why aren't the banks being FINED and told to clean it up? They have been paid over and over for the house. Those evicted have lost out - the state gets money for cleanup and now its up to volunteers? give me a break! Check out some previous posts in resource section at bottom of page:

Coping With Chicago's Foreclosure 'War Zones': "'The worst thing about that house was the owner and the lender were coming to court,' said Esenberg. 'And they knew about it.'

It costs up to $2,000 to board up a house, and up to $7,000 to stop an abandoned property falling any further into dereliction, according to Esenberg. A building stripped of copper pipes can cost up to $20,000 to renovate, he said, but that's still cheaper than demolishing and rebuilding.

To pay for the repairs, he places a lien on the building that has to be paid off before any other claims on the property. If the lender or owner doesn't pay up, he can foreclose on the building again.

Many of the houses are losing value so quickly, however, that many lenders would rather hand over the deed than pay for the repairs. Those houses are fixed up to a livable standard and sold to vetted owner-occupiers or affordable home developers through Neighborhood Housing Services in an attempt to stop them falling back into the cycle of neglect.

Additional posts recommended by me.

Robinhood States in Tights - Money Grants for cleanup

$1 billion nationwide: NPS foreclosure damage grant

Statements by BANKS: Spin Doctor or Continued Deception

In reading several articles this week, I was struck by ONE STATEMENT.  This statement was made by one of the largest banks with many internet reports of fraud-gate, foreclosure-gate and stupid-gate. The statement is an oxymoron on its face.  

 Bank of America emphasizes that borrowers who are current on their loans aren't getting thrown out on their ear  - Bank of America Home Loans spokesman Rick Simon 

What kind of stupid  remark is that?   This is possibly the most blatant attempt to cover-up the truth with the obvious.   Bank of America is well on its way to becoming a true laughing stock.  Read it again:

 Bank of America emphasizes that borrowers who are current on their loans aren't getting thrown out on their ear - Bank of America Home Loans spokesman Rick Simon 

Who in the world would EVICT anyone that is CURRENT on their "alleged"   loans?  So, what is your vote? Do you think this is just a moronic statement -  or a revelation of  a planned deception?


Dig much deeper behind the words and what you are seeing is either complete ineptitude with  a spin doctor that has no clue what is going on. OR,  (the explanation that  leaves me speechless) callous disregard for customers  and a plan to not deal with things in a legal way.


Last month another statement that caught my eye:
Bank of America spokesman Richard Simon said the bank “recognized past inadequacies and disappointments in our service levels” and had made “many changes leading to tremendous strides.”


The above statement was made in response to 4,327 complaints by customers to the BBB in past three years.   I guess processing false documents to evict people is the best improvement in customer service you can do. 


BANK OF AMERICA is not alone.. Chase has was rated "F" by the BBB last month. 
Chase spokesman Tom Kelly said  that his company “offered struggling borrowers more than 975,000 modifications since the start of last year.”  Notice they said OFFERED not granted


From personal experience I know Chase reps are nice and sweet but bottom line is  after you hang up - what happens behind the scenes is not helpful to many.  .   I have not looked up  how many have been granted - that is for another day. 


When you read news reports you have to look at what they ARE NOT saying.  Otherwise we will be doomed to be brainwashed sheep, believing the spin doctors for  the rest of our lives. 

Foreclosures Evictions and Arizona Law

The following can be found at this link
Foreclosure Summary copyright, © ForeclosureLaw.org     ALL RIGHTS RESERVED BY FORECLOSURELAW.ORG

MY NOTE:  Please read up on the ARS laws for foreclosure ... there are many procedural and technical details that must be met BEFORE Trustee Sale.  For instance in the information below, ALL properties by AZ law are to be posted unless access is blocked is required. It is not OPTIONAL. '

Arizona Foreclosure Law SummaryArizona Foreclosure Law Summary
Stop Arizona Foreclosure

Arizona Foreclosure Law - Stop Arizona Foreclosure

Quick Facts

- Judicial Foreclosure Available: Yes

- Non-Judicial Foreclosure Available: Yes

- Primary Security Instruments: Deed of Trust, Mortgage

- Timeline: Typically 90 days

- Right of Redemption: None

- Deficiency Judgments Allowed: Varies

In Arizona, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process.

Judicial Foreclosure

The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, your home will be auctioned off to the highest bidder.

Non-Judicial Foreclosure

The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the "Power of Sale Foreclosure Guidelines".

Power of Sale Foreclosure Guidelines

If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:

The trustee must record a notice of sale in the office of the recorder of the county where the property is located. Within five (5) days after the notice is recorded, the trustee must mail, by certified mail, a copy of the notice of sale to each of the people who are parties to the trust deed, except for himself. Additionally, the notice must appear in a newspaper in the county where the property is located once a week for four (4) consecutive weeks, with the last notice being published not less than ten (10) days prior to the date of the sale.

Optionally, if it can be done without a breach of the peace, the trustee can post the notice at least twenty (20) days prior to the date of the sale, in some conspicuous place on the property to be sold and/or he or she can post the notice at the courthouse or at a specified place at the place of business of the trustee in the county in which the property is located.

The trustee or the trustee�s agent must conduct the sale. The sale is for cash to the highest bidder, except that the lender can make a "credit bid," which means to cancel out some part (or all) of the money the borrower owed the lender on the lean, instead of paying cash. A successful high bidder must pay the bid price by 5 pm of the day after the bid, other than a Saturday or legal holiday. Every bid is an irrevocable offer until the sale is completed, which happens when the bidder pays the bid price to the trustee�s satisfaction. If the high bidder fails to make the payment by 5:00 pm, the day after being notified of the option to buy, then the trustee may postpone the sale.

The trustee may postpone the sale to another time, or another place, by giving notice of the new date, time and place by public declaration at the last place and time the property was offered for sale. No other notice is required. A trustee may also, by written agreement, extend the time for a buyer to come up with the payment.

Once the sale is complete, the proceeds will go to the payment of the obligations secured by the deed of trust that was foreclosed, then to junior lien holders in order of their priority. The successful bidder gets a trustee�s deed, which provides conclusive evidence that the trustee conducted the foreclosure sale property.

A note regarding Deficiency Suits: A lender may not bring a deficiency suit against a person who lost a property that is 2.5 acres or less at a foreclosure, provided the property was a single one-family or a single two-family dwelling. This is so even if the high bid at foreclosure was less that the balance due on the loan. However, in foreclosures against other types of property, a deficiency suit is allowed, but is limited to the difference between the balance owed and the fair market value of the property, and then only if the suit is brought within ninety (90) days of the power of sale foreclosure.

More information on Arizona foreclosure laws.

50 state Inquiry - Foreclosure Freeze or Snow Job ?

 50 state Inquiry - Foreclosure Freeze or a Snow Job ?  Today I was on my way to court and the car radio blared out the anticipated news:   40 State Attorney Generals join together to investigate the mortgage industry.

Mind you I was listening while driving so I cannot quote word for word,  but the report went on to state the familiar terminology.   The robo-signers is an issue that needs investigation to make sure that foreclosures are legal. For those that don't know, robo-signers is term to describe the paperwork fraud - of legal witnesses not reviewing paperwork, and/or notary fraud involved with foreclosure paperwork.  Wow great!    When I got home this afternoon the investigation had all 50 states participating!!!!!  

SURPRISE:   There was no announcement of a foreclosure freeze WHILE  investigating fraud. WHAT THE HECK?    There is the self imposed Bank of America  & GMAC nationwide freeze.  Our Attorney General sent letters to 60 financial institutions. But no freeze.   What kind of snow job are we in?   check out my page for freeze news   There are two major banks with voluntary freeze nationwide.

IS THERE A NATIONAL FREEZE? OR IS THIS A SNOW JOB?

There is mortgage fraud, foreclosure fraud, payment fraud, accounting fraud.   OK so the banks aren't doing things in a legal manner all the time.   The important  question is: “ Why not FREEZE all foreclosures nationwide.  Are politicians letting the rattlesnake babysit the baby?    Do you let people under arrest conduct their own criminal investigation???? 

 THEY CALL POLITICIANS LEADERS – WHY?

They, the leaders make the claims of paperwork fraud  sound as these are  mere procedural errors that happens a little bit more than the comfort level allows: __R iiiii ght ___

• Fraud  MIGHT have happened some. -  depositions reveal  up to  10 thousand signatures a month).  
• Fraud  MIGHT be a little bit industry wide. -  5 of the 7 major banks are involved . 
• Fraud  MIGHT affect a few homeowners. - estimated  60 to  90% of foreclosures are wrongful 

BANKS INVESTIGATE THEMSELVES

The banks are pretty much reporting that the  foreclosures  are probably correct decisions,  however the paperwork is shoddy. HELLO -- if the paperwork is shoddy, HOW DO YOU KNOW the decision was right? Why are the banks volunteering a freeze (well 2 are) if the paperwork is all correct?  HELLO? 

Wells Fargo settled with 2 million in foreclosure prevention fine as part of the settlement with AZ AG, all the while Wells Fargo proclaiming that it  stood behind its documents;  THEY DIDN'T NEED AUDITS!  

Wells Fargo speaks with lying tongue ... why settle if you stand behind your documentation?

STOP THE FORECLOSURES and investigate the judges next.  Why should it take thousands of homeowners writing and calling daily to get action?  Why aren't the lawsuits enough or the media examples enough to get action going. There are a few judges that actually read documents but the rocket docket judges need to be dealt with too.  Is it possible the judges are that stupid, and lazy or is there something else going on there?

You know there is fraud when you realize that Bank of America, Countrywide and ReconTrust (the trustee used to sell the home) all are integrated.  One of the BAC addresses is Countrywide LANE.  I wonder how many judges have offices there. Or maybe they own stock in BAC.  hmmmm.