Chase Sued For Telling People To Stop Paying Mortgage, Then Foreclosing - The Consumerist: "We hear stories all the time about people who are having trouble paying their mortgage, call the bank for help, and are then told there's nothing the bank can do unless they stop paying their mortgage. Well, one couple is suing Chase after they followed that advice, and then got foreclosed on."
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Thanks to Mystery Reader for this absolutely infuriating story. It makes me wonder what percentage of home foreclosures by banks and associations are bogus.
8 comments:
We're not going to renegotiate every home loan during an economic downturn. If we did, we wouldn't have time to do much of anything else. And what's to protect us from moral hazard risk posed by folks who simply want to get out of the terms of their original note?
Well, let's see. I will post a copy of an email from Representative John Siptroth of Monroe County, Pennsylvania, stating that it is his understanding an association may file "a lien, only." I know for a fact though, that in this area, innocent and homeowners who owed nothing were set up, fraudulently fined, lied about and had bogus lawsuits filed against them and illegally foreclosed upon. Vulnerable populations, I believe were/are targeted, by a select few and it is insane. Those people intentionally victimized in this area deserve legitimate investigations into what was done to them and the perpetrators need to be charged and held accountable. In addition, this area of Pennsylvania was the subject of a study on these foreclosures back in 2003, I think. Google: "Monroe County Pennsylvania Foreclosure Study." If I recall correctly, in that study, a large percentage of the foreclosures were by "someone other than a lender." I believe approximately 30% of the foreclosures are by associations and that most everyone of those is bogus!
Re: HOA/COA (POA) Problems, issues, foreclosures, etc... and pending legislation:
"This is why I introduced HR350 which is being acted upon in PA."
Representative John Siptroth, PA.
And...
"_________, at this time I would suggest the Attorney General’s Office and file a complaint if there was an infraction of the law. It is my understanding that only liens may be filed against property owners who fail to pay assessments placed on them by POA. Act 160 has full description of the law.
John J. Siptroth
189th District
Pike/Monroe Counties
(570) 223-2636
(717) 787-6492
Harrisburg Office
Telephone: 717-787-6492
Facsimile: 717-772-2943
To mortgagee:
The servicers have NO interest in keeping people in homes. The servicers have one goal - make as much money as possible from fees relating to delinquencies, inspections, etc. To that end they will seek to create and preserve "delinquencies".
On that note, care to prove that you are actually the mortgagee? In an extremely high percentage of cases in Florida, the mortgagee "holding the note" isn't actually holding the note. When challenged the "mortgagee" claims that it "lost" the note.
You can't hold a bare mortgage. A mortgage is only a security instrument which is meaningless unless you also own/hold the note. So the label "mortgagee" misses the point.
In many cases, SEC and other filings indicat the note was tendered to a securitized trust. The financial institutions sold mortgage backed securities based upon the representations. Now the same institution claims to be the holder of the note that it already sold.
"Mortgagees" have had to resort to fraud on the court - hiring document manufacturing firms to "create" assignment documents and other documents purporting to evidence negotiation of the notes. The Florida Supreme Court changed their foreclosure rules in December 2009 because of the rampant problems that became apparent once homeowners didn't just "rollover". The fraud is so pervasive that the federal prosecutors finally started looking into it:
http://online.wsj.com/article/SB10001424052702303450704575160242758576742.html
So "mortgagee", perhaps you should consider re-negotiating the terms. For the most part, the industry knows that the bank's effective risk is really only about 5 years - not 30. The homeowners usually move, re-finance, etc. The industry also knows that it can't really "lose" - the government will bail them out at homeowner expense of course. If you don't re-negotiate the terms, there is an ever increasing chance that you will be caught. Re-negotiating the note reduces your risks as well.
The fraud is so rampant that EVERY homeowner should indeed challenge any entity claiming to have a debt owed to it or claiming to have a security interest in the home.
> It makes me wonder what percentage of home foreclosures
> by banks and associations are bogus.
If you mean in the legal sense of "bogus"
by banks - about zero
by HOAs - about zero
If you mean in the ethical and moral sense:
by banks - probably close to zero
by HOAs - approaches 100%
> It makes me wonder what percentage of home foreclosures
> by banks and associations are bogus.
If you mean in the legal sense of "bogus"
by banks - about zero
by HOAs - about zero
"by HOAs - about zero"
I disagree with you and I can site you cases where the victims were set up in fraudulent, created conflict lawsuits to steal homes.
Vendettas, "easy to get," "let's try it on this one..." In a few cases, there was no contractual ownership, rights, etc., to the targeted victims property. Wake up!!!
It is absolutely horrible and these people need to serve time!
INFORMATIVE info on MERS and PSA's from Pennsylvania:
"First of all, in Monroe County, we have what is known as a "rocket docket". Complaints in, Decisions out without the Judge looking at the issues. If the bank says its so, its so! How many people know that if a foreclosure is brought in the name of MERS that MERS has NO standing to foreclose? How many people know that if the foreclosure is brought in the name of the servicer, the servicer has NO standing to foreclose? How many people know that if the foreclosure is brought in the name of a Trustee, the Trustee may or may not have standing to foreclose, depending on the PSA? How many people even know what a PSA is and how to access it? How many people know that many of the "fees" that are charged are ILLEGAL? Are they aware that many of the documents produced by the various entities are fradulent? Do the Judges know? Maybe, maybe not, but as long as we have a "rocket docket" who cares?"
"If you mean in the legal sense of "bogus"
by banks - about zero
by HOAs - about zero"
The FACTS and the stats, prove this comment wrong, re: HOA's...
I know many of the HOA foreclosures are nothing but outright property thefts. Where else can anyone, even a party with no ownership rights, legal right, contractual, or other rights to a homeowners home, create conflict, file a knowlingly false, fabricated lawsuit as some type of vendetta, terrorize homeowners, advise homeowners they have "no right to occupy their home," and a range of other horrors and get away with it, due to the "workings," of their friends?
Anonymous @April 9, 2010 1:10:00 PM CDT:
That's why I differentiated between "legal" and "ethical and moral"
Unfortunately, the ammoral and unethical practices of the sleazy HOA corporations are perfectly legal.
See the professor's explanation here.
Just because it's legal doesn't mean it's right. It doesn't mean it's the way it should be. It just means it's legal.
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