Foreclosures Bring the Frauds Out

Submitted by Tanta on Thu, 04/19/2007 - 9:10am (25 comments)
Jas wrote on Thu, 4/19/2007 - 9:22 am

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"Foreclosures Bring the Frauds Out"

Was there ever a doubt? The stock market bubble burst brought "fraud out," no?

That is why Fed MUST watch and not allow bubbles.

It is not possible to identify bubbles when they are ballooning?

Has any Fed Chairman ever seen the graphs of ratio of Total Asset Class divided by the GDP? These graphs MUST be prominently displayed in every Fed office!

Greenspan and Bernanke were/are the agents of the Bankrupters and Fraudsters of New York City and they ALLOWED the bubbles purposely.

After his "Irrational Exuberance" comment Greenspan was chastised and taken to the carpet by BFNYC, IMO.

A system that makes fraud highly probable is what we got in place.

Jas

Charlie Stromeyer wrote on Thu, 4/19/2007 - 9:27 am

OT but DR Horton CEO says the market is not stabilizing which we already know:

- Bloomberg.com

lama wrote on Thu, 4/19/2007 - 9:51 am

Tanta,
When you reply to the email, could you ask him if he knows anyone who could sell me a universal life insurance policy?
As you know, I'm going to need some more coverage and I thought that person would be a solid contact.

Tanta wrote on Thu, 4/19/2007 - 10:09 am

lama, I attempted to email him back, but Yahoo! finds the reply undeliverable at that address. Would you believe that?

I could sell you some credit life/disability insurance for real cheap, if you don't think you're already paying enough for the money you borrow. I can also put you in touch with someone who will collect money from you in order to protect your credit records from being accessed by people who aren't already collecting money from you. RICO, FICO, what's the diff?

Universal life is so, like, 90s.

theroxylandr wrote on Thu, 4/19/2007 - 10:13 am

I could sell you some credit life/disability insurance for real cheap

Do not joke - people will come to you. I never advertise cheese discounts in my blog Smile

mp wrote on Thu, 4/19/2007 - 10:24 am

Tanta, if you and CR know who these people are and what they're up to, why not do the world a favor and hit them with your flamethrower?

Mike Dillon wrote on Thu, 4/19/2007 - 10:30 am

Mannnn.... I scared my dog when I saw you say "the only party who can work out a loan with you is your mortgage servicer." Tanta. And then I finished reading.

And purely from my own experience, after having interviewed more than 150 law firms I can honestly say that a knowledgeable consumer protection specialist has been the best thing that I've found to help home owners - especially those fighting potentially illegal foreclosures instigated by fraudulent mortgage servicers. Regardless of who you're dealing with for mortgage servicing - don't trust them to look out for your best interests. They're only interested in their own bottom line at the end of the day. It's a business with hundreds of millions floating through it daily.

Granted not all servicers subscribe to the Mortgage Servicing Fraud platform - but there are enough out there that the foreclosure mill attorney firms that assist them in stealing homes from borrowers created the United States Foreclosure Network (http://www.USFN.org) in order to help coordinate national efforts and make the "asset recovery" process work that much more smoothly.

Thanks for keeping up on things like this, Tanta. Your fee just keeps going up incrementally. I'm off to finish reading MSNBC.

lama wrote on Thu, 4/19/2007 - 10:32 am

mp,
I'm afraid it's more like stepping on roaches. There's too many and you pollute your own shoes.
I know of a solid CPA firm in Cambridge MA that actually has a department dedicated to repairing damage done to individuals by various financial bucksters; CFP's, stock brokers, life insurance salesmen, etc.

Tanta wrote on Thu, 4/19/2007 - 10:46 am

mp, had I seen anything in the email that looked actionable to me, I'd have forwarded it to whatever passes for law enforcement these days. I didn't post the guy's contact information because I don't want the blog to get sucked into a shitstorm with someone who isn't worth it.

Regardless of who you're dealing with for mortgage servicing - don't trust them to look out for your best interests.

Anyone who borrows a dime in the first place--long before any question of foreclosure arises--who thinks that the lender's job is ever to look out for the borrower's best interest is not old and wise enough to be taking a loan. I did not say that any mortgage servicer will ever do what is not in its own best interest. I said the mortgage servicer is the only party who can modify a loan. Anybody who claims they have this "leverage" with the servicer and can get it to do what you and your lawyer cannot get it to do is lying to you.

Come on. I've worked for a mortgage servicer. You think I'd modify a loan for somebody just because some fool who chased me down at the MBS conference asked me to?

mp wrote on Thu, 4/19/2007 - 10:56 am

Tanta, could it be time to write a piece with some practical advice for people facing foreclosure? You may have already done this and I didn't see it. Just a thought.

Larry Nusbaum wrote on Thu, 4/19/2007 - 11:19 am

"A Resolutions official blames the Wynns for not following through on their efforts."

Since the writer was too lazy to investigate this possibility, I will say that in many cases people blame others for their own mistakes.

Tanta: do you really think that people facing foreclosure have the funds and the inclination to go to an attorney everytime they hear a good offer? If you do, then everything in my house just went up for sale......

Tanta wrote on Thu, 4/19/2007 - 11:21 am

No, I haven't done that, mp. There has been a fair amount of stuff in the Big Paid Media on that that isn't bad, as well as stuff put out by some of the non-profits. I'll work on pulling it together.

Larry Nusbaum wrote on Thu, 4/19/2007 - 11:24 am

"AND this loan had been discharged in a Chapter 7."

A real estate loan, backed by real property, and recorded as a lien against said property? No way.

hh wrote on Thu, 4/19/2007 - 11:36 am

Tanta said (old thread): "There's no option of going back to the old days of all mortgages being held by depositories. There are not enough "deposits" to fund the current mortgage market, so there will have to be capital to lend coming from somewhere else."

Why not require the lender to retain, say, 2% of the loan? Enough to hurt but big leverage on the deposits.

Also, if this is pertinent, what dissuades the mortgage brokers from making unsound loans? Do the brokers come and go as the market changes?

WC wrote on Thu, 4/19/2007 - 11:41 am

Just to let everyone know that HUD/FHA loans require the mortgage servicer to review each loan that becomes 90 days delinquent for HUD/FHA loss mitigation retention and disposition options (Special Forbearance, Loan Modification, Partial Claim, Pre-foreclosure Sale, DIL). This evaluation is free and if a mortgagor gets approved for one of the options their is no fee. HUD/FHA does not allow a mortgage servicer to charge any fees and also provides free housing counseling.

Paid for housing councelors do nothing more than a mortgagor can do on their own by simply calling their mortgage servicer and requesting loss mitigation.

Larry Nusbaum wrote on Thu, 4/19/2007 - 11:43 am

"Paid for housing councelors do nothing more than a mortgagor can do on their own by simply calling their mortgage servicer and requesting loss mitigation."

Ah, the power of knowledge and information. But, most simply don't possess it. That's why I always say - Financial prodcuts and services are sold, not bought.

WC wrote on Thu, 4/19/2007 - 12:04 pm

Larry,

On every FHA loan that becomes 45 days or more delinquent FHA mortgage servicers are required to send a pamphlet "How to Avoid Foreclosure" that describes HUD's Loss Mitigation program and all of their options. Additionally, the free HUD Housing Counselors 800# is provided in order to educate delinquent FHA borrowers.

Tanta wrote on Thu, 4/19/2007 - 12:17 pm

WC, thanks for the good information. All we can do is keep fighting disinformation with good information.

Larry, you will notice I didn't suggest that people pay an attorney. I suggested that anyone who thinks they need advice in an adversarial situation with their lender and wants to pay for it should hire an attorney. Most people are not in an adversarial relationship with their lender, and so they don't need to waste money they don't have. But if you think your lender is screwing you or not following the law, you need a lawyer, not some "workout counselor."

Larry Nusbaum wrote on Thu, 4/19/2007 - 12:48 pm

Free? I like free.

Jeffs Moped wrote on Thu, 4/19/2007 - 5:23 pm

Tanta - I get those calls daily, from folks who are not attorneys, but want to discuss one of their "client's" situations regarding a default and/or foreclosure.

I tell them to listen to what I'm saying very closely: I will ask for your name, phone number, and address. I will then report you to the state bar for the unlicensed practice of law.

I would then proceed to give a sentence or two about how they are preying on these folks, etc., etc...but by this point most have hung up.

I may do well working in the default industry. But, I am aware of what is on the other end of what I do. These leaches expect me to aid and abet their crimes. And, frankly, that is what it is.

Walter Rego wrote on Thu, 4/19/2007 - 7:44 pm

Just to inject a note of realism here, the workout packages lenders offer to mortgagors require them to fill out and submit the kind of forms and financial information that most borrowers either did not submit in the first place (no doc); or relied on the broker to fill out for them (of questionable reliability)and which if accurate will contradict the information submitted to get the loan in the first place only a short time before. Plus it will have to reveal the mortgagor's financial ability to actually meet the terms of a work out, which if they could they wouldn't be in foreclosure on that loan in the first place.

Chap 7 discharges personal liability on the underlying loan (note) but does not otherwise affect the mortgage. But if credit card and other debts are discharged in the 7, the mortgagor may now be able to afford the monthly mortgage payments with or without a loan mod.

Jeffs Moped wrote on Thu, 4/19/2007 - 9:22 pm

"Sea Lawyer", noun. A person who is not a lawyer, but believes they are equivalent to one by reading about certain legal topics on the internet or from books. Sea lawyers are characterized by having no comprehension of the topics on which they opine, and also exhibit a failure to comprehend their own limitations. See, Walter Rego.

EEngineer wrote on Thu, 4/19/2007 - 9:51 pm

The kool-ad has been flowing for so long that I wouldn't be surprised if a fair percentage these jokers actually think that they're providing people a useful service. Too much TV will do that.

Walter Rego wrote on Fri, 4/20/2007 - 5:05 am

Jeff, you really oughtn't take your underpowered scooter out on the superhighway. I am an attorney and have been doing foreclosure and bankruptcy work (for banks and mortgage companies) for over 22 years.

Other than sarcastic name calling and invented lexicography, what have you got of substance that contradicts what I've seen and described above for over 22 years??

Sadly, most of these loan mods work for only a very narrow percentage of homeowners, usually, like a desperately filed Chap 13, they only put off foreclosure for a few months to a year. Maybe the lenders will start or be forced to start offering something different now, seeing what they face, but I doubt it. And if they do, it will probably just be cosmetic, to keep foreclosures down until all this attention shifts to someplace else.

probert wrote on Fri, 4/20/2007 - 8:06 am

I don't understand. What did this person actually want from Tanta? The contact info for people high up at Wells? Why? What did he intend to do with that?

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