Foreclosure Fraud

[Relayer76]

Maybe this member from Canada has not been following the foreclosure situation in the US as closely as I thought but this article is jaw dropping for me. We have all heard of the fraudulent mortgage lending but this is the first that I have heard of fraudulent foreclosures.


http://www.care2.com/causes/politics...re-moratorium/

The comments to the article may be more informative than the article itself. For example:
A true national moratorium is so timely and needed. My family was working with our lender to modify our mortgage. After playing by their rules for MONTHS, we received a letter dated September 20 stating that our request for a modification was denied but that we had 30 days to discuss alternative options. But I come home this week to find a note on the door stating that our house was sold on October 4 [[by my count, day 14). Although I admit that we are in default, I am overwhelmed, frustrated, panic-ridden and downright angry that our lender did not stand by what was stated in their last letter to us. On top of that, we actually have a "late-breaking" solution in that I've gotten a job offer from a company that will agree to buy the house as part of our relocation. Don't know if it's too late for us [[although I'm leaving no stone unturned), but there should be some recourse for the fact that one part of the lender organizations doesn't seem to be talking to the others.

[gazhekwe]

The problem has been that there are tens of thousands of foreclosure submissions and the signers have just been rubberstamping them without reading the paperwork. The situation described in the comment shows just how wrong that can go for both the lender and the homeowner.

[maxx]

http://www.insurancejournal.com/news.../04/113758.htm
"

Amid growing concerns about the legal practices of mortgage lenders, Old Republic National Title Insurance told agents Friday it would stop insuring homes foreclosed by JPMorgan Chase & Co.,[and GMAC Mortgage] The New York Times reported Saturday, citing a company memo..."

[Downriviera]

The government needs to step in and stop all foreclosures until this entire mess is straightened out. The banks took the bailout money yet they are helping very few homeowners. It seems to me that it is more profitable for the banks to foreclose on someone than to work with them. They get the write off and they got the bailout money. I know someone that came up with the money three days after they were foreclosed on and the bank wouldn't take the money

[gdogslim]

let the foreclosures continue, the government is the problem all the way in the first place.

[Patrick]

let the foreclosures continue, the government is the problem all the way in the first place.

Mr. Bouchard is that you?

[canuck]

Yes but the nicest story I heard was of this captain from Texas serving in Iraq in the army reserve . His wife wasnt aware of the gravity for non-payment of dues to a homeowners' association. They lost their 300000$ home because of an 800$ debt. Seems like some of these homeowners' assns wait for the late payments and immediately dispatch attorneys or bailiffs to repo people's houses. Its a great racket. It makes Citybank look like a nunnery.

I heard this story on NPR a coupla months ago. Here it is in Mother Jones, enjoy;

http://motherjones.com/politics/2010...tion-foreclose

[Detroitej72]

Yet another example of what happens when you have no oversight and let companies police themselves.

[Relayer76]

Yes but the nicest story I heard was of this captain from Texas serving in Iraq in the army reserve . His wife wasnt aware of the gravity for non-payment of dues to a homeowners' association. They lost their 300000$ home because of an 800$ debt. Seems like some of these homeowners' assns wait for the late payments and immediately dispatch attorneys or bailiffs to repo people's houses. Its a great racket. It makes Citybank look like a nunnery.

I heard this story on NPR a coupla months ago. Here it is in Mother Jones, enjoy;

http://motherjones.com/politics/2010...tion-foreclose

Incredible, this is daylight robbery. Something has to be done about property laws that allow this type of thing to happen.

[canuck]

Imagine folks who subscribed to these so-called Homeowners assns and now have to choose between paying mortgage or association debt because of losing their jobs, etc...

Lights dim... Ominous music [[theme from Jaws)

The Homeowners assns can then come in and do their deed at the first instance of a default.

[mjs]

Imagine folks who subscribed to these so-called Homeowners assns and now have to choose between paying mortgage or association debt because of losing their jobs, etc...

Lights dim... Ominous music [[theme from Jaws)

The Homeowners assns can then come in and do their deed at the first instance of a default.

First, this is Texas using Texas law. Vast majority requires a court order to foreclose on a home for any reason. She ignored everything else; she would have also ignored a court notice to appear thus losing the house in default.

Second, I can't imagine that even Texas allows homes to be sold grossly below FMV and I've never heard of a state that allows you to keep more than amount owed and costs to get it. The extra goes back to the homeowner. If the association sold it grossly under and its not reversed, the difference comes out of the association's pocket.

Third, the article says the house was free of a mortgage so no mortgage or association dues choice on this. However, a mortgage may have helped here. In foreclosures, you must provide certified notice to anyone with a known interest in the property so the mortgage company would have been notified and could have done a wide variety of things to avoid this including paying it and adding it into the loan. To protect themselves, many banks force you to wrap costs such as this into your mortgage and then they pay it every year.

Fourth, homeowner's association dues shouldn't be any different than property taxes. They can also begin the notification process after the first unpaid bill. You get a service you agreed to participate in when you bought the property. If you don't pay them, you get proceedings against the house. Otherwise, there's no recourse against people that refuse to pay their dues or taxes.

Fifth, the article itself mentions its getting fixed by the legal process so quit blaming it on the system. "In the meantime, the Clauers have obtained an agreement allowing the family to stay in the home, Hale says. She's "confident that the courts will sort this out and do the right thing," but notes that the drawn-out legal process must be stressful for the Clauers." If she wants to avoid stress, I recommend opening her mail. Sounds like she was unable to take care of herself and needed some sort of guardian to do her day-to-day activities for her. I feel sorry for her, but not a could happen to anyone scenario.

[canuck]

First, this is Texas using Texas law. Vast majority requires a court order to foreclose on a home for any reason. She ignored everything else; she would have also ignored a court notice to appear thus losing the house in default.

Second, I can't imagine that even Texas allows homes to be sold grossly below FMV and I've never heard of a state that allows you to keep more than amount owed and costs to get it. The extra goes back to the homeowner. If the association sold it grossly under and its not reversed, the difference comes out of the association's pocket.

Third, the article says the house was free of a mortgage so no mortgage or association dues choice on this. However, a mortgage may have helped here. In foreclosures, you must provide certified notice to anyone with a known interest in the property so the mortgage company would have been notified and could have done a wide variety of things to avoid this including paying it and adding it into the loan. To protect themselves, many banks force you to wrap costs such as this into your mortgage and then they pay it every year.

Fourth, homeowner's association dues shouldn't be any different than property taxes. They can also begin the notification process after the first unpaid bill. You get a service you agreed to participate in when you bought the property. If you don't pay them, you get proceedings against the house. Otherwise, there's no recourse against people that refuse to pay their dues or taxes.

Fifth, the article itself mentions its getting fixed by the legal process so quit blaming it on the system. "In the meantime, the Clauers have obtained an agreement allowing the family to stay in the home, Hale says. She's "confident that the courts will sort this out and do the right thing," but notes that the drawn-out legal process must be stressful for the Clauers." If she wants to avoid stress, I recommend opening her mail. Sounds like she was unable to take care of herself and needed some sort of guardian to do her day-to-day activities for her. I feel sorry for her, but not a could happen to anyone scenario.

I dont blame the system mjs, I blame the folks who feel they have to protect the presumed infallibillity of the system. You have to wonder how people who buy a house in Texas on top of paying property taxes also have to buy into a HOA much like annual condo fees or a cooperative apt association fee. There are 20000 HOA's in Texas. This stuff is pretty kafkaesque to me, especially in the Republic of Texas. Other fast food for thought:
http://www.dallasnews.com/sharedcont...s.366cfe3.html

http://blogcritics.org/politics/arti...ut-of-control/