Fraud in Foreclosed Homes Sales

HUD.gov

 Issues - what is fraud and what is fair rules? 

1) HUD - investors are bidding on these houses, swearing they will be owner occupant.  paying cash 5,000 to 10,000 over list price and HUD holds bids until they get the price they want. Some RE agents will not allow peopel to do this, others do a wink and nod to get buyers to bid. AT any rate, legally, HUD cannot sell to those that are investors until the house has been listed for over 15 days.  To my mind this is a mini-auction.

2) HUD has low cost home program geared to help low income.  originally if you were low income and a house had sat on market for over 6 months it could be bought for $1.00 -  those homes are sold to cities, and NON PROFITS for $1.00. Each $1 home is then either restored or sold "as is" - ----- when was the last time you saw a house for $1.00????? or $100  it isn't happening.  Those homes I am betting are going to governments to make money - like the 18,000 one in buckeye sold AS IS. 

3) Selling Banks (listings that use terms, REO, Bank owned, or Bank Repossed) are often, upon inquiry, sold to FHA/HUD/ and no longer handled by the bank.   FHA /HUD then may hold them for several months or one year not selling them, while they determine structural damage or title issues. 

3.5)  Example:  we heard of property for sale and checked it on Zillow and a Real Estate site.  since we could not locate the multiple listing number readily the first time - we checked with county records and determined BAC home loans owned the property via trust deed.  WE then called BAC who indicated that they are only servicing the property for the investor.  The investor is FHA - What the heck?  Upon a call to FHA (who was very helpful) it was determined it was not on their listings for sale, and being held for indetermine time.  We could check back periodically. We have been told the banks sell it back to FHA to get money back to cover their loss that FHA is taking them back as the insurer. (oh so they fraud people and give to the government - no wonder government doesn't seem to be effective in dealing with foreclosure fraud.)                                                                

4) HUD Money: While I think it is important to help people, why not get the money to them directly INSTEAD of announcments like this: 

HUD announced $15 million in grants to more than 200 local housing authorities through its Public and Indian Housing Family Self-Sufficiency Program last week. Communities in Chicago, Chillicothe, Ohio,Vineland, N.J., and San Antonio will receive grants to help connect families with important agencies and services. - HUD news June 7, 2011

Gotta love the banks and the government.  Helping low income?  NAH just improving communication! Let's just create more  hoops to jump through. 

photo: HUD.gov

AT this point in home hunting it is getting weary.  We are tired of several things 1) hearing one price and then finding out that a home has 5 bids within hours of a  listing   2) Finding HUD homes listed then sold for up to 10K more than listed price by investors 3) Finding home listed and discovering that it is not for sale because the banks aren't selling.

If we dont' find something soon, never fear - there is another foreclosure wave coming and it may be the worst drop foreclosures that we have seen to date.

House Hunting, Fighting Foreclosure and Government Grants for the Homeless

Well the banks successfully evicted us after our year long battle.   Using last year's judgement instead of going through the forcible detainer (eviction) again.  Bankruptcy for some will still be a good option for fighting through the legal system. Make sure if you go through bankruptcy that you learn as much as you can FIRST, or have a very trustworthy person guiding you.

For other people doing a  notary complaint process and documenting the fraud for a lawsuit will be a better answer.

Going through this process has taught us a lot.   Find your alternative housing long before you end up evicted.  It is not dishonest to plan ahead, the banks are a business and all is considered as contract law. It is not dishonest to plan to take care of your family while fighting the fraud and  negotiating with the banks to honor THEIR contracts. For instance have they fulfilled the obligation for the qualified written request within 90 days? Have they committed TILA violations, have they broken Fair Debt Collection Act? Were you robo signed?  There are many FRAUD issues.  Make sure to check out showmetheloan.net or the blogs listed in my blog roll to the right to educate yourself on more issues.  You can also check past blogposts on this blog using search for key terms.

REAL ESTATE: LARGEST GOVERNMENT LAND GRAB

Right now we are seeing a new thing on listings for homes for sale by banks.  In our search for cheap housing we found that HUD is awesome source of free housing - FOR INVESTORS.  The government in it's land grab has taken over most loans from banks via Fannie and FHA etc.  They account for about 63% of real estate listings.  This means that the government is the direct benefactor of  "non performing assets".  Remember these mortgages were sold to investors already (money made) then again were paid for with insurance funding for investors and insurance when house was foreclosed on.   Now the government owns them free and clear and unlike a straightforward real estate advertise, buy and close - they are holding out for highest bidder.   We found this out when looking for a 37,000 piece of property with trailer that was advertised as available.

So essentially the government is grabbing homes with a call to increase the foreclosure process, then they are holding up people from investing outright in a new home by bid competition-AND on the other hand they are spending money to fight the homelessness they are inflicting on people.  Remember in foreclosure you have 5 days to get out, once the bank notifies you. Technically once the auction or trustee sale has happened - you are homeless, until you can have it overturned.   The government is in control of about 63% of those foreclosures, they could stop the train there, instead they are granting millions of dollars to homeless programs, including a new 16.4 million to combat rural homelessness.   Hard to say this but we are now one of the homeless, partially due to the lack of action by government in dealing with the fraud.  AS with any other government process, funding will be hard to access by those who need it. 

But I digress, back to the house hunt. We went and talked with neighbors of the advertised home,  who told us that the home had sold one month ago for several thousand over the asking HUD price. The happy new owners and paid out cash total of something like 63,000, obtained keys and were waiting for the green light to move in or rent it out. We quickly learned that HUD advertises one price, then holds out and extends the listings, waiting for highest and best cash offer.  INVESTORS are snapping up the medium priced properties. Thank you government for not stopping robo signing, fraud and correcting wrong - but for taking advantage and lining the  coffers of the governmental 'spendaholics'.  Does this type of thing sound familiar? Fix and Flip prior to the housing crash?

BANKS DEFENSIVE ADVERTISING

On Trulia the real estate owned by banks (REO) is being advertised in a very defensive and inaccurate statements.   HERE is a sample wording from one listing:

Bank Repossessed. This property has completed the foreclosure process and is now owned by the foreclosing lender, which took title to the property for an estimated consideration (loan balance plus other fees and costs). Foreclosing lenders are often motivated to sell bank-owned properties (also known as REO, or Real Estate Owned) quickly because they are non-performing assets. Please register for a free trial with RealtyTrac to access complete information for this property, including full address, foreclosure details, lender information, and more. 

If you have been following this blog and others you will know that the foreclosure process is not complete - there is the return of the security instruments according to UCC 3 -501 B.  There are many lawsuits and possible clouded title.  Chain of title could still be compromised.  They have taken title alright - stolen in many cases from owners who have not questioned if all payments were applied to the mortgage or if they were target of toxic loan or robo-signer.   The fact that they are advertising this is troublesome to many in the t foreclosure fight arena.

WE ARE WORKING ON IT!

Now we are back to square one working on our legal processes, while looking for a place to house us for the next six months to one year.   We are also rebuilding our business.   WE are in temporary situation and life is good.  If you hear of a great property with cheap housing for under 50K let us know.. or a home to care-take while the homeowners are fighting their foreclosure. :)  Let us know how your foreclosure fight is going by leaving a comment.

Viral Report of BANK FRAUD: BEST REPORT SEEN! Video included

BEST Report I have seen on the bank and political FRAUD involved in foreclosure fraud.  Now they need an in depth report on the MORTGAGE FRAUD.    If you are concerned that you might have mortgage fraud search through the blog posts using tool above.  OR Check Many of the blogs on the blog roll to right and join mortgage-challenge yahoo group and showmetheloan.net.   You can also find out about foreclosure fraud and resources on these groups.

30-90% are WRONG.  Everyone I know says the figure is 90% and sometimes more.

If you know someone facing eviction give them the information on where to get help by letting them know of these groups.   It is not to late.

Listen to the report above and pay attention to the securities and chain of title.   WE need to save AMERICA  and deal with the fraud.  FRAUD is FRAUD is FRAUD.  PENSION funds are affected.

KUDOS to MSNBC for the BEST article I have seen! And to see the full video report of Woman burglarized by her bank CLICK HERE

Senator Franken wants GMAC investigation!

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Well other politicians are getting into the pressure cooker toward the banks that are defrauding people of their homes.  We are working to get our state's politicians to do anything other than spend money on the problem.  We live in the 2nd largest state for foreclosures and there is no public addressing of the robo-signatures, fraud mortgages, fraud documentation or falsely recorded documents.  Banks lie in court on a daily basis and the numbers are staggering.   Go watch court and see for yourself. 


 Do you know how many courthouses in Phoenix alone deal with this?  How many cases daily?  That is just one major city.   Multiply that by all  cities  in all 50 states. .

See the below letter by  SENATOR FRANKIN.  If more of our political leaders would get involved then we might see some progress.  Sadly,  I do not think it will do anything for those in process other than halt things for a few months.   It seems the leaders are wanting investigations but do  they have the kahunas to return properties to those cheated? 

Today WALSH announced that there will be investigations into 7 banks. I am confused as to why GMAC or Ally is not on that list of 7 institutions being investigated.

Or will they just say fix the paperwork and ignore the UNDERLYING fraud on mortgages not to mention the  violations of Tila/respa laws?   If this is addressed in a meaningful way it might mean the writing off of milllions of fraudulent toxic cases. 

Thanks to the blogs on the right for keeping up with information, Thanks to google for always having links and thanks to new to me http://www.zerohedge.com for bringing to light the letter from Franken. 

Ally Financial Letter 09292010

JPMorgan CHASE Suspending Mortgage Foreclosures - NYTimes.com

JPMorgan Suspending Mortgage Foreclosures - NYTimes.com:

"GMAC’s initial disclosures prompted challenges or investigations from attorneys general in Iowa, Illinois, Colorado, California and North Carolina. The Treasury Department, which became the majority owner of GMAC after providing $17 billion in bailout money, has directed the lender to correct its procedures.

The pressure on the lender, which began as the auto financing arm of General Motors, is continuing to increase. Senator Al Franken, Democrat of Minnesota, asked Wednesday for the Treasury, the Justice Department and other regulators to collaborate on “a thorough investigation into the alleged misconduct.”

Defense lawyers have consistently complained that the lenders’ law firms were sending through cases that were at best sloppy. The Florida attorney general’s office says it is investigating four so-called foreclosure mills."

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Grayson calls on Florida Chief Justice to halt “foreclosure mill” cases � Florida Independent: News. Politics. Media

Grayson calls on Florida Chief Justice to halt “foreclosure mill” cases � Florida Independent: News. Politics. Media:

"Citing the reporting of Mother Jones and the New York Times, Congressman Alan Grayson has sent a letter calling on the Chief Justice of the Florida Supreme Court to “abate” foreclosure cases involving three law firms currently under scrutiny from the Office of Attorney General Bill McCollum until the investigation is complete.

NOTE insertion: read full article by clicking title link. Follow links to see original information. The letter by Grayson is on several websites.

“If the reports I am hearing are true, the illegal foreclosures taking place represent the largest seizure of private property ever attempted by banks and government entities,” Grayson wrote. “This is lawlessness.”

The Attorney General’s investigation specifically names the Law Offices of Marshall C. Watson, Shapiro & Fishman, and the Law Offices of David J. Stern. Together, Grayson wrote, they account for nearly 80 percent of all foreclosure cases in Florida.

In its�press release announcing the investigation, McCollum’s office said  >>>>keep reading


Also check out  Living Lies article on same

Political Economy - Ally's GMAC mortgage unit temporarily halts evictions in 23 states

MY NOTE: sound familiar???? the suspension reasoning - OH YEA!

Political Economy - Ally's GMAC mortgage unit temporarily halts evictions in 23 states:

Ally's suspension may be due to several cases in Maine being pursued by a group of pro bono attorneys. While investigating complaints by homeowners about unjust foreclosures, the group discovered that the filings were all signed off by one GMAC employee, the "team leader for document execution."

In his deposition, this employee -- who signed documents for foreclosures across the country -- stated that when he signs them, he does not know what information the file contains other than the borrower's name, that he does not inspect the exhibits he's supposed to, and that the notary who supposedly witnessed his signing was not in the room. r

ead fulll article 

Here's the full list of states that are affected: (from article referenced above)

"Connecticut

Florida
Hawaii
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Nebraska
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Pennsylvania
South Carolina
South Dakota
Vermont
Wisconsin"

read fulll article by clicking title link above. stay tuned for more news as more is coming down the newspipe! 

Lawyer Fraud Sanctions Threat: BK judge oder

Another Arizona Beat Down From u.s. Bk Judge Eileen w. Hollow Ell! in Re Julia v. Vasquez

I had found this gem today and it did not escape my notice that Tiffany and Bosco were included!

Voided Deed of Trust: Cow and Tail - Moo!

sxc.hu

Whats does a Cow and Tail have to do with foreclosures, evictions and you?   Simple question, and the answer  is quite simple; although, getting a judge to hear it will depend on your learning how to get heard.  For that you might want to check out Jurisdictionary.  Join support groups, or  hire an attorney that knows how to defend foreclosure.  If you need recommendations check out referral page or leave a comment.

The following information should help understand why most foreclosures were wrongfully conducted and you KNOW that Banks know this information.

For now let's try to make it simple; if you want more depth, this should give you enough to either understand your attorney or start searching for more info to build your case pro se.

 A Deed of Trust and a Promissory Note are two separate instruments . They are supposed to  remain together and never be separated.  The Deed of Trust references the Promissory Note. Once separated or bifurcated  the Deed of Trust becomes dead. 

 The visual of  this concept is a cow and a tail.  You think I'm whacked?   Check it out.  This is almost as good as the story of  writing a check on a pig and presenting it in court as legal tender. 

The Court finds the following analogy provided by the late Professor Chester Smith of the University of Arizona College of Law to be particularly apt – “The note is the cow and the mortgage the tail. The cow can survive without the tail, but the tail cannot survive without the cow.” Restatement (Third) of Property, Mortgages § 5.4, Reporters’ Notes (quoting Best Fertilizers of Arizona, Inc. v. Burns, 571 P.2d 675, 676 (Ariz. Ct. App. 1977) .

or here:  

           

 STATE OF VERMONT   

finds

  

Mortgage Deed dated September 18, 2006, from Tom Perkins to Mortgage Electronic ... This is because, "[w]here a promissory note is secured by a mortgage, ... to be particularly apt - "The note is the cow and the mortgage the tail. ...

usmfiles.s3.amazonaws.com/phpkZ4SRh/foreclosure_household_perkins.pdf

Earlier this year this principle was explained  by John Stuart as a Dog and Tail - which nowadays is much more understandable to people. John Stuart has helped may people learn about the principles of law and shares knowledge at local support meetings, mock courts and even seminars. Together the pro se groups have been learning and applying legal doctrines and theories.  We are starting to see things happen in Arizona both on the pro se and on the attorney representative cases.  I recently posted of some attorney wins. 

Last night at the seminar hosted by our FAVORITE auditor JD and lawyer friends Kyle and Doug we were reminded of this principle by Doug. Doug is a lawyer who was interviewed and featured on the news.  You can see his interview in my previous blogpost:   Local News Endorses Self Defense . 

Next month we will be having a seminar on the West side of the Valley (Phoenix) so watch for upcoming details.