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Bank Of America To Freeze Foreclosure Cases

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http://www.nytimes.com/2010/10/02/business/02mortgage.html?_r=1&ref=business

Bank of America, the country’s largest mortgage lender by assets, said on Friday that it was reviewing documents in all foreclosure cases now in court to evaluate if there were errors.

It is the third major lender in the last two weeks to freeze foreclosures in the 23 states where the process is controlled by courts.

But Bank of America went further than the first two lenders, GMAC Mortgage and JPMorgan Chase, which have said they will amend paperwork only in cases they think were improperly done. So far, that has amounted to only a handful of cases.

Bank of America, in an e-mailed statement, said it would “amend all affidavits in foreclosure cases that have not yet gone to judgment.”

That could mean tens of thousands of foreclosure cases would be in limbo for months or, if the consumers in default hire lawyers, years.

Spokesmen for the bank said that they were uncertain how many cases the lender currently had in court. They provided no timeline or explanation for the freeze, saying only that the bank planned to eventually resubmit all the cases.

The moratorium is likely to further fuel the uproar over the foreclosure tactics of the big lenders, which continued to have political ramifications on Friday.

Before Bank of America’s announcement, Richard Blumenthal, the Connecticut attorney general, asked judges in his state to put a halt to all foreclosures for 60 days. Connecticut is one of the 23 states where foreclosure is a judicial matter. Others include Illinois, Florida, New Jersey and New York.

Mr. Blumenthal, who is running for senator in Connecticut, said the freeze “should stop a foreclosure steamroller based on defective documents and enable effective remedies.”

California’s attorney general, Jerry Brown, said that Chase should stop any foreclosures in the state until it proved that it was following the law. Mr. Brown, who is a candidate for governor, earlier made the same demand of GMAC.

A nice class action lawsuit coming soon?

Still at least the govt will be able to claim the foreclosure rate has significantly declined owing to the improving economy and there policies, time to buy into the Dow?

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http://market-ticker.org/akcs-www?post=168041

In a stunning letter given the state of the foreclosure mill revelations Wells Fargo (which, let's not forget, Buffett's Berkshire owns a lot of) has decided to stick the knife in the back of those trying to "do the right thing" with a short sale:

In a move that will expedite some foreclosures, Wells Fargo & Co. has stopped granting extensions for distressed homeowners to complete short sales.

The change last month preceded recent revelations of faulty documenation at least two major mortgage servicers — JPMorgan Chase & Co. and Ally Financial Inc. — that suspended thousands of foreclosure actions to review their processes. Wells said it does not have the same problems as those companies.

The company said it changed its policy on short sales at the behest of investors for whom it services mortgages, including the government-sponsored enterprises.

Right.

But Fannie and Freddie, along with the servicers and other insiders, knew before the public did about these problems - and that they were problems. In fact, some of the court records go back a few months.

Further, Wells has been demanding releases from its buyers for title defects - so now by refusing to allow things to settle out in order to complete a short sale the buyer has to take a potentially-clouded or even unmarketable title for which they will have NO RECOURSE.

If you're doing business with Wells in any capacity at this point, you are, in my opinion, dumber than a box-o-rocks.

Denniger on similar lines.

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http://market-ticker.org/akcs-www?post=168032

OCC Stations Teams AT The Big Banks

On the foreclosure mess....

The paperwork problems range from potentially forged documents to bank employees who never read borrowers' files before signing off on an eviction.

Potentially forged? I'd say that at least in a couple of cases there's nothing potential about it, since Judges have called the documents either counterfeit or fraudulent.

Mukri would not comment about other banks but said that the OCC has teams permanently stationed at each one and that those teams have been in close contact with senior management at the banks to ensure the reviews are completed in a timely manner.

Uh huh.

Now how about if those teams demand that these institutions prove that they actually transferred the notes in question in the first instance into the trusts?

Oh, we don't want go there, do we? Nor do you want to look at intentional selling of notes into trusts where the reps and warranties were not met, right? Why that could lead to some very uncomfortable places, couldn't it?

Bair, whose agency insures deposits at thousands of U.S. banks, called the issue of document processing errors "troubling" and said "it's just a further indication of how wrong we went with the mortgage origination process and securitization process."

Fraud is "troubling"?

How about FELONIOUS Bair?

Still I'm sure it's all contained...

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http://market-ticker...www?post=168041

Denniger on similar lines.

The company said it changed its policy on short sales at the behest of investors for whom it services mortgages, including the government-sponsored enterprises Warren Buffet who can see the whole thing unraveling catastrophically and wants Wells to be the first out of the door.

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Isnt the issue in the US not foreclosures, but rather people just handing back the keys and dissapearing of their own accord?

both.

the foreclosure issue is that many are apparently illegal, and bankers are using false documentation to proceed.

It is quite a scandal brewing as if this gets mainstream, then many CDS holders will be able to hand back their investments and expect repayment..Fraud is a Fraud... and this is one hell of a fraud.

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both.

the foreclosure issue is that many are apparently illegal, and bankers are using false documentation to proceed.

It is quite a scandal brewing as if this gets mainstream, then many CDS holders will be able to hand back their investments and expect repayment..Fraud is a Fraud... and this is one hell of a fraud.

Fraud in the ponzi economy, who'd have thought it....

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There are a few issues at play.

Dishonest affidavits. Fixable, but should come with professional sanctions and costs orders.

Exhibition of documents made up after the fact - tricky: documents can be reconstructed as a matter of evidence, but presenting them as originals is a fraud on the court. Probably fixable, but should come with jail time if its a widespread practice.

The really significant thing would be if it were impossible to complete the chain of ownership of the security - along the lines of failure to comply with the statute of frauds. It might leave the bondholder with a claim in equity on the property, or at worst a completely unsecured debt. Horrific mess either way.

The price of treating the law like a business.

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There are a few issues at play.

Dishonest affidavits. Fixable, but should come with professional sanctions and costs orders.

Exhibition of documents made up after the fact - tricky: documents can be reconstructed as a matter of evidence, but presenting them as originals is a fraud on the court. Probably fixable, but should come with jail time if its a widespread practice.

The really significant thing would be if it were impossible to complete the chain of ownership of the security - along the lines of failure to comply with the statute of frauds. It might leave the bondholder with a claim in equity on the property, or at worst a completely unsecured debt. Horrific mess either way.

The price of treating the law like a business.

The bigger issue is MERS....electronic records....NOT LEGALLY CORRECT IN all but 5 states IIRC. Expect some retroactive law changes.

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That will prove popular with the electorate.

seems many dont care....not till they lose THEIR house.

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  • 145 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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