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Poetic Justice strikes Banksters: Judges say, "No tickee, no forclosee."


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2008 Feb 22, 5:08am   25,688 views  146 comments

by HARM   ➕follow (0)   💰tip   ignore  

Judge Smales
Judge Smales: "You'll get nothing and like it!"

Banks Lose to Deadbeat Homeowners as Loans Sold in Bonds Vanish

Some highlights:

Feb. 22 (Bloomberg) -- Joe Lents hasn't made a payment on his $1.5 million mortgage since 2002.

That's when Washington Mutual Inc. first tried to foreclose on his home in Boca Raton, Florida. The Seattle-based lender failed to prove that it owned Lents's mortgage note and dropped attempts to take his house. Subsequent efforts to foreclose have stalled because no one has produced the paperwork.

...Judges in at least five states have stopped foreclosure proceedings because the banks that pool mortgages into securities and the companies that collect monthly payments haven't been able to prove they own the mortgages.

...Each time the mortgages change hands, the sellers are required to sign over the mortgage notes to the buyers. In the rush to originate more loans during the U.S. mortgage boom, from 2003 to 2006, that assignment of ownership wasn't always properly completed, said Alan White, assistant professor at Valparaiso University School of Law in Valparaiso, Indiana.

"Loans were mass produced and short cuts were taken,'' White said. "A lot of the paperwork is done in the name of the original lender and a lot of the original lenders aren't around anymore.''

...When the mortgage servicers and securitizing banks that act as trustees of the securities fail to present proof that they own a mortgage, they sometimes file what's called a lost-note affidavit, said April Charney, a lawyer at Jacksonville Area Legal Aid in Florida.

Nobody knows how widespread the use of lost-note affidavits are, Charney said. She's had foreclosure proceedings for 300 clients dismissed or postponed in the past year, with about 80 percent of them involving lost-note affidavits, she said.

"They raise the issue of whether the trusts own the loans at all,'' Charney said. "Lost-note affidavits are pattern and practice in the industry. They are not exceptions. They are the rule.''

"Lost-note Affidavits". Add that to "Bandos" as a nominee for best new bubble buzzword of the year.
HARM

#housing

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138   HARM   2008 Feb 25, 9:29am  

I also don't buy the myth of all these "rich illegal aliens" all making $100k. If that were true, why are immigrant neighbrohoods in CA so poor --10 people living to a room, etc. And why not just hire an American to do the same thing (fewer potential legal liabilities)? The whole idea of hiring illegals is you pay crap, work them to death, don't provide any benefits, and fire them at will.

Shoot, I did house painting and yardwork during H.S., college and also moved furniture and did warehouse work after college (only jobs being offered). I would have killed for *any* job that paid that much.

There are simply not that many jobs as a % --cash-based or otherwise-- that pay that much. If there were, the housing bubble would not exist.

139   homeowner_for ever_san jose   2009 Sep 1, 3:30am  

The rich illegal aliens is not entirely a myth. many immigrants are willing to work more/hr, save more and spend less. They become rich not because they get more $$/hr but because they are willing to save more and spend less.

140   Patrick   2009 Sep 1, 5:10am  

Peter P bought a house. Makes it less pleasant to read about falling prices.

141   homeowner_for ever_san jose   2009 Sep 1, 5:23am  

looks like more and more patrick.neters are pulling the trigger.
I am waiting for the day when patrick will buy a house :-)
Anyways, looks like the market is now in a state where its not easy to say whether to buy or not to buy.
It was pretty obvious ( atleast in patrick.net) in 2005 that buying was not the way to go.

142   Patrick   2009 Sep 1, 5:46am  

I'll buy a house the day it's cheaper than renting. For me, it's not even close yet. It's just so damn cheap to rent by comparison with owning in Menlo Park, and anyway, prices are still falling.

But I do admit it has turned around in a lot of cheaper places. You can actually buy houses in Antioch and parts of Oakland and rent them out for a tidy profit, if you can handle collecting the rent from people who are probably on the edge financially. And maybe armed.

143   Patrick   2009 Sep 1, 7:23am  

True, I had not thought about it, but rents (and therefore property prices) would be lower without Section 8 type subsidies.

But you can't let families with young kids be homeless. We should take care of our fellow citizens at least that much. What's a better way to do it?

144   WillyWanker   2009 Sep 1, 11:05am  

True, I had not thought about it, but rents (and therefore property prices) would be lower without Section 8 type subsidies.
But you can’t let families with young kids be homeless. We should take care of our fellow citizens at least that much. What’s a better way to do it?

No, of course not! People who can ill afford to have children should be subsidized by those who work for a living. 'Magically' squeezing out children should give you a free spot on the public trough. If welfare recipients want to have dozens of children (by god knows how many baby~daddys) they should be encouraged to do so because we 'can't let families with young kids be homeless'. 'We should take care of our fellow citizens at least by that much.' *rolly~eyes emoticon*

145   EBGuy   2009 Sep 2, 5:03am  

Peter P bought a house.
Almost as stunning as when surfer-x capitulated. Do you know the city where Peter P settled?

146   EBGuy   2009 Sep 2, 6:40am  

Where is HARM? Did too much sun in Walnut Creek fry his brain?

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