"The truth is that they stopped the review process and "Settled" because the regulators were under a mandate to protect the banks. They were finding far too many wrongful and illegal foreclosures. The investigator testified that the sampling they used was not random but rather designed to show how few foreclosures were illegal. But even that showed that at least 6500 homeowners had been illegally foreclosed and evicted. The banks and regulators were sitting on a time bomb so they swept it under the rug with "settlements" to cover up the widespread pandemic rush to illegal, wrongful foreclosures where strangers tot he transaction took title to property at a foreclosure sale by submitting a "Credit bid" in which they had absolutely no interest or authority." ---- Neil F Garfield Livinglies.me
Not
long ago, if someone told you that the government would review the
foreclosure process, find that many people were foreclosed illegally and
wrongfully --- perhaps up to 90% --- and then step in to protect the
banks with a pennies on the dollar settlement WITHOUT TELLING THE
FAMILIES THAT WERE WRONGFULLY FORECLOSED THAT IT HAD BEEN DETERMINED
THAT THEY WERE ILLEGALLY AND WRONGFULLY FORECLOSED --- you might have
said, it can't be true --- things are not that bad.
Besides,
you might say, how could the foreclosures have been illegal and
wrongful to the point that the banks would agree to pay any settlement,
even if it was pennies on the dollar. After all, as Judges are want to
say "You took the loan, you didn't pay, you lose your house."
But
in open session sworn testimony before the Senate Committee on banking
and finance, under questioning from Senator Warren (see recent post for
the video) that is exactly what the investigator admitted. In fact, it
gets worse --- they entered into the settlement to get this out of the
way fast and sweep it under the rug. And, the investigator admitted
that they had not yet notified those whom the agency had already found
had definitely been illegally and wrongfully foreclosed and evicted from
their homes. Worse, the investigator admitted that no decision had been
made when or if those families would be notified.
So
here we have the government withholding information of civil and
perhaps criminal wrongdoing, not informing the victims that they not
only have a cause of action for damages, but that the proof is already
in the hands of the regulatory agencies. And perhaps worse, this
admission comes AFTER Bernanke assured Senator Warren that the victims
would be notified.
So
Judges, lawyers, borrowers and investors across the land and indeed
across the world are still laboring under the misapprehension that when
the dust settles the home will still be foreclosed. Not so.
If
the real creditor has not stepped up to enforce the debt there can only
be one reason --- they have already been paid. And if they have already
been paid, then the balance due from the borrower to that creditor is
zero. And if someone else paid it, the most they COULD have is an action
in contribution or unjust enrichment against the borrower; but they
don't have that right because they expressly waived it.
Nonetheless, the Federal reserve is "buying" these mortgage bonds,
supposedly backed by mortgage loans that we have now seen were paid or
unenforceable at the rate of $85 Billion per month.
The
presumption ought to be, based upon the filings of the regulatory
agencies, the settlements and the sworn testimony before Congress, that
the foreclosure is suspect and Judges should stop ramming these wrongful
foreclosures down the throat of lawyers whose objections and arguments
are dismissed without a thought. We don't have to wait for the evidence
before we decide. The time to decide is now because the evidence IS in.
And
even if you can't get the information from the regulatory agencies who
claim the results to be confidential even though they admit what is in
them, aggressive lawsuits against the pretender lenders should lead to
huge awards to borrowers and their attorneys. What are you waiting for?
Stop wasting time by delaying the cases so that the client gets another
month of free rent and start being the aggressor in discovery, pleading
and litigating.
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