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Last post Author Topic: The Foreclosure Scam  (Read 11385 times)

Deozaan

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The Foreclosure Scam
« on: April 23, 2011, 03:12:32 PM »
I know at least two people (of separate households) going through foreclosure right now.

If you were curious about why banks would rather foreclose than let borrows refinance their mortgage, check out this video:





And in many cases banks are foreclosing illegally:



40hz

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Re: The Foreclosure Scam
« Reply #1 on: April 23, 2011, 03:54:23 PM »
I know somebody currently wallowing in the foreclosure quagmire.

Problem they're running into is they can't get their current mortgage holder to negotiate revised terms. That's because the note is held by (one of an growing number of) foreclosure consortiums who have no intention or interest in negotiating. In my friend's case, it's a group of private individuals (about 20) who have gotten together to "get in on the golden opportunities in real-estate foreclosures."

One of their members is an attorney who has demonstrated a talent for twisting existing laws around to force a default so they can foreclose.

These investors are not interested in getting a mortgage paid back. They want to make quick cash on a turnaround. So all they want is the property itself.

In the case of my friends, they're probably gonna lose their house.

But not because they can't pay the original mortgage. They can. The temporary cash flow problem which got them into this mess has since been fixed.

It's because the note holder has taken them to court and is now refusing to accept any payments pending the court's ruling on their request for immediate foreclosure, because...wait for it..my friends haven't been paying anything on their mortgage!

I'm not sure how or why such a logical absurdity is tolerated by law. But somehow, they can actually make this BS argument stick under certain circumstances. In this case it has something to do with the structure of the group holding the note. All group members have to agree to any renegotiated terms. They get around being accused of refusing to negotiate "in good faith" by sitting down to go through the motions of 'negotiating' a provisional agreement. But once the borrower signs this agreement for their part, one member of the investment group refuses to accept the new terms. At which point the investment group claims "negotiations have irreparably broken down" and move for foreclosure.

According to my friend's attorney, she's seen this same 'play' run on several other mortgage holders. And each time, one or two (and never the same) members of the investment group refuses to accept the renegotiated terms. Next they refuse to accept any payments until they have a signed agreement in place. (They also give the borrower 'off the record' assurances not to worry since they're sure they can work something out with the holdout member.) Then they wait a few months for the note to reach default. After which they move to foreclose for non-payment of the original mortgage - which is still in effect because a new agreement was never reached. Cute!

It makes for a lovely choreographed performance. And supposedly, it's all perfectly legal.

My friend's attorney told them this particular 'investment' group has this legal gambit down to a science. Unless they get a sympathetic judge when it comes final decree time, my friends are screwed royally. (And this investment group has been fairly adept at getting their filings heard before judges who tend to be unsympathetic towards borrowers.)

This is American Justice at work folks! Lovely, huh?  :tellme:


« Last Edit: April 23, 2011, 04:17:15 PM by 40hz, Reason: expanded a few sections to better explain »

JavaJones

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Re: The Foreclosure Scam
« Reply #2 on: April 23, 2011, 04:08:45 PM »
That calls for breaking my usual non-swearing decorum: that is fucked up!  :(

- Oshyan

40hz

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Re: The Foreclosure Scam
« Reply #3 on: April 23, 2011, 04:17:41 PM »
^Totally!

app103

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Re: The Foreclosure Scam
« Reply #4 on: April 23, 2011, 04:25:36 PM »
Makes me glad to be a renter in an apartment building.

wraith808

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Re: The Foreclosure Scam
« Reply #5 on: April 23, 2011, 04:28:22 PM »
That calls for breaking my usual non-swearing decorum: that is fucked up!  :(

Agreed.  Sometimes I hate our legal system.

It's one of the reasons I continue to rent.  Between HOAs and mortgage firms, my view on homeownership is seriously cynical.

JavaJones

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Re: The Foreclosure Scam
« Reply #6 on: April 23, 2011, 04:47:32 PM »
Between HOAs and mortgage firms, my view on homeownership is seriously cynical.

Likewise! I am *happy* to be a renter.

- Oshyan

rgdot

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Re: The Foreclosure Scam
« Reply #7 on: April 23, 2011, 05:03:26 PM »
And people voted Alan Grayson out - not a US citizen but follow politics - sad sad world and...I will leave it at that

Renegade

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Re: The Foreclosure Scam
« Reply #8 on: April 23, 2011, 10:25:42 PM »
The second video there was unbelievable! I'm shocked that it's that bad.

And Alan Grayson was voted out? Good God! That's baffling.

I have nothing to say that is actually printable. Or maybe just 2 'V' words: Vengeance. Venezuela.
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nathalieR

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Re: The Foreclosure Scam
« Reply #9 on: August 15, 2011, 04:22:10 AM »
This is really a bad news for us, every-time I turned on the television all I hear is bad news. First our debt is increasing now the number of foreclosure is increasing too. what is really happening??  :mad:

I just finished reading one of the most incredible and shocking articles for this it said that the foreclosure dilemma has had a wide variety of long-lasting consequences. In the wake of property owners losing their properties, the rental industry has become flooded with prospective renters. The government presently owns about 250,000 empty, foreclosed-on homes. To be able to stabilize prices, the government is asking for suggestions on renting out those properties. Article resource: US Government considering renting out foreclosed homes

Carol Haynes

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Re: The Foreclosure Scam
« Reply #10 on: August 15, 2011, 05:16:41 AM »
There is a simple way to stop that - send a certified bank cheque each month via tracked mail.

When they go to court they can prove they have attempted to pay - they should then be able to argue for costs and possibly even for extortion/fraud!

edit: just watched the videos WTF!

why on earth isn't there a nationwide class action in the supreme court?
« Last Edit: August 15, 2011, 05:30:56 AM by Carol Haynes »

Stoic Joker

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Re: The Foreclosure Scam
« Reply #11 on: August 15, 2011, 06:40:46 AM »
I have some friends that both had good jobs years ago and had built their dream house. Then the economy went to shit.

They both lost their jobs, and the mortgage fell behind. The bank foreclosed, but took 3 years to get around to evicting them.

The house sat for a year or two during which time they both managed to find new stable jobs.

--Now here's the weird part--

When the house went back on the market, a friend in real estate let them know ... Which allowed them to once again buy the house. But this time at a substantial discount because of the markets devaluation.

So while the wife & I will probably never make it out from under our house payments. At least I get to laugh about ^that^.

:)

wraith808

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Re: The Foreclosure Scam
« Reply #12 on: August 15, 2011, 07:18:16 AM »
I have some friends that both had good jobs years ago and had built their dream house. Then the economy went to shit.

They both lost their jobs, and the mortgage fell behind. The bank foreclosed, but took 3 years to get around to evicting them.

The house sat for a year or two during which time they both managed to find new stable jobs.

--Now here's the weird part--

When the house went back on the market, a friend in real estate let them know ... Which allowed them to once again buy the house. But this time at a substantial discount because of the markets devaluation.

So while the wife & I will probably never make it out from under our house payments. At least I get to laugh about ^that^.

:)

Thanks for that.  It's good to hear at least someone profit from this mess that wasn't the cause of it.

kyrathaba

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Re: The Foreclosure Scam
« Reply #13 on: August 15, 2011, 07:20:36 AM »
There is no justice in this world.  Anyone who wasn't previously convinced of this should just watch those two videos.

zridling

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Re: The Foreclosure Scam
« Reply #14 on: August 15, 2011, 11:50:20 AM »
@40hz:
This is why I urge everyone -- assuming you could take a week off or more -- to go sit in a courtroom and watch the judge process "stoopid" all day long. For the most part, filing a claim, motion, or suit (that rarely EVER goes to trial) will get you anything you want. The banks hire anyone off the street, give them a title, and let them "robo-sign" documents they're not legally qualified to sign and then submit to court as authentic. The bank's lawyers attest that all the signatures are in order and the judge rubberstamps the foreclosure, on to the next 4.5 million.

It's truly depressing and scary. Had a friend kicked out of her house and she never missed a payment. Mortgage was sold underneath her and she wasn't notified. By the time found out something was wrong, the sheriff had a crew placing her stuff on the curb.
______________
Same goes for a murder trial. Go to the criminal court in your own state/county and watch an entire murder trial. It's a great way to scare young thugs straight! The trial is won during pre-trial motions for exclusion, evidence, etc. Once you get to trial, the judge has already determined how the trial will go and that there are no surprises. (Except for wacky states like Florida or California.) It's not like on TV. And even the TruTV/reality shows don't show you the incredibly endless minutia involved in a trial.
« Last Edit: August 16, 2011, 08:29:14 AM by zridling »

zridling

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Re: The Foreclosure Scam
« Reply #15 on: August 15, 2011, 12:19:02 PM »
This seemed somewhat apropos.

banksters.jpg

40hz

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Re: The Foreclosure Scam
« Reply #16 on: August 15, 2011, 03:32:13 PM »
@40hz:
This is why I urge everyone -- assuming you could take a week off or more -- to go sit in a courtroom and watch the judge process "stoopid" all day long.

I have. And I agree with you 100%.


Stoic Joker

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Re: The Foreclosure Scam
« Reply #17 on: August 15, 2011, 06:08:39 PM »
I have nothing to say that is actually printable. Or maybe just 2 'V' words: Vengeance. Venezuela.

Hm... V->Guy Fawks-> Anon...

The system on the second video sounds like a great target for Anonymous to torch. The people get free houses, the evil bankers end up pennyless in the streets ...(Shit!)... That'd be a Walt Disney level happy ending me thinks.

IainB

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Re: The Foreclosure Scam
« Reply #18 on: August 15, 2011, 08:18:33 PM »
@Deozaan: Thankyou for opening my eyes as to what is going on in the US. This is amazing.
The FDIC & One West Bank scam video clip shows that it looks like legalised and blatant corruption is rife in the US banking scene - the victim being the taxpayer.

In the video clip Fraud Factories: Rep. Alan Grayson Explains the Foreclosure Fraud Crisis, we are told how blatant illegal fraud is operating by bogus foreclosures, perpetrated by the banks and financial institutions and supported by an administratively corrupt and overburdened legal system. The victim here is the houseowner (some of whom don't even have a mortgage, but they get to lose their property anyway, by false foreclosure).

I am confuzzled by this. Surely I am missing something. I thought the US government's job included the responsibility to protect the public and their property rights, not to incentivise, administrate and facilitate theft of their property. Is the US now like in Italy, where Big Money and criminals/the Mafia are reputedly running the show?

What is being done about it - to stop it and to enable restitution for the crime? Why does Rep. Alan Grayson have to even produce such a vid clip? Are the lawmakers powerless to stop the law being used for criminal gain and victimising the people? The comments on this forum all seem to say feebly "Yes, I know - it's awful isn't it? That's why I rent, etc.", but how is such a passive response going to achieve anything to rectify matters?

Shades

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Re: The Foreclosure Scam
« Reply #19 on: August 15, 2011, 10:17:28 PM »
Indeed, a very passive response for a country where everybody and their grandmother appear to have guns...  :P

Renegade

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Re: The Foreclosure Scam
« Reply #20 on: August 15, 2011, 11:09:47 PM »
It's truly depressing and scary. Had a friend kicked out of her house and she never missed a payment. Mortgage was sold underneath her and she wasn't notified. By the time found out something was wrong, the sheriff had a crew placing her stuff on the curb.

I'm curious...

What levels of FORCE can one use to stop theft? if someone breaks into your home, and tries to steal from you, what level of VIOLENCE can you use? Can you shoot someone if you warn them and they persist? Can you use a baseball bat? A knife?

There has to be some level of justified force to protect one's property.

For cases where your house is being fraudulently stolen from you, what's the difference? As far as I can see, a sheriff attempting to evict someone is complicit in the fraud, and therefore an accomplice in the crime. He's the criminal and I don't see why anyone wouldn't be justified in shooting the sheriff. (But not the deputy, of course. :P )
Slow Down Music - Where I commit thought crimes...

Freedom is the right to be wrong, not the right to do wrong. - John Diefenbaker

Carol Haynes

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Re: The Foreclosure Scam
« Reply #21 on: August 16, 2011, 06:16:17 AM »
Shoot the judge - he (and I bet it is a he) signed the eviction order.

It's like blaming the hangman for the execution sentence.

Stoic Joker

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Re: The Foreclosure Scam
« Reply #22 on: August 16, 2011, 06:58:06 AM »
I'm curious...

What levels of FORCE can one use to stop theft? if someone breaks into your home, and tries to steal from you, what level of VIOLENCE can you use? Can you shoot someone if you warn them and they persist? Can you use a baseball bat? A knife?

There has to be some level of justified force to protect one's property.

While the Castle Doctrine allows for the use of Deadly Force to protect ones property. The paperwork they show up with states that it is not your property - You're a squatter in your own home - hence it would actually serve to justify their 'legally" shooting you (gotta love that one).

This is why the pencil necked paper monkey shows up with the fuzz in toe to make sure everyone behaves properly and bends over on cue.

kyrathaba

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Re: The Foreclosure Scam
« Reply #23 on: August 16, 2011, 07:49:53 AM »
This just makes me sick.  I mean c'mon!  What has this country come to!?

zridling

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Re: The Foreclosure Scam
« Reply #24 on: August 16, 2011, 08:33:38 AM »
Indeed, a very passive response for a country where everybody and their grandmother appear to have guns...  :P
That's what you're led to believe from TV and news. Most Americans can't afford guns! And unless you have a use for one (hunting, target shooting, killing someone/yourself), they're not much use. They usually lead to far more (legal) trouble than people bargained for when they are used (kids finding them, shooting themselves or a friend).