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From Bad To Worse For Bank Of Countrywide Lynch: Utah AG Says BofA's State Foreclosures Are Illegal, As Elijah Cummings Demands BofA Subpoena

Tyler Durden's picture




 

There were those who were fuming about what a great deal Bank of America got in acquiring Countrywide. Ironically, that same deal threatens to bite the banks in the ass and cost it tens of billions in litigation as more and more realize that the bank's mortgage-related practices (both before the CFC acquisition and after) have been based on a foundation of fraud. While Zero Hedge has not discussed the issue at length recently due to the expected temporary pushback by various legislatures, which would make an outright risk assessment against BofA impossible since there is far more politics than finance involved, it seems that with each passing day things are getting closer to spiralling out of control for America's largest lender. The latest news, just out from Bloomberg, indicating that the bank may be advised to urgently increase its litigation and putback reserve, is that Utah's AG Mark Shurtleff advised Brian Moynhian that the bank's foreclosures in Utah are illegal. "A Bank of America Corp. unit conducting home foreclosures in Utah is violating the law, the attorney general said in a letter as individual states advanced their investigations of mortgage servicing. “All real estate foreclosures conducted by ReconTrust in the state of Utah are not in compliance with Utah’s statutes, and are hence illegal,” Shurtleff wrote." Oops. There goes another several billion in litigation fees because that beeping noise is thousands of foreclosed upon mortgageholders calling the first attorney they can find in the yellow pages in hopes (soon to be fulfilled) of unwinding completed foreclosures. This action joins comparable pushes from Connecticut, Illinois and California, and pretty soon BofA will be unable to foreclose upon any home in the domestic US. We estimate that the legal cost associated with foreclosure delays will cost the bank well over a billion when all is said and done. And just to make life truly miserable for BofA, Elijah Cumming sent a letter to the Committee on Oversight and Government Reform advising he is considering a broad subpoena to all mortgage servicers, chief among them, you guessed it: Bank of America.

From Bloomberg:

ReconTrust Co. isn’t meeting requirements for carrying out foreclosures in the state, Utah Attorney General Mark Shurtleff said in a letter to Bank of America Chief Executive Officer Brian Moynihan. The letter, dated May 19, was released today by Shurtleff’s office.

“All real estate foreclosures conducted by ReconTrust in the state of Utah are not in compliance with Utah’s statutes, and are hence illegal,” Shurtleff wrote.

Jumana Bauwens, a spokeswoman for Charlotte, North Carolina-based Bank of America, didn’t immediately return a phone message and an e-mail seeking comment.

The move to crack down on ReconTrust comes as federal officials and attorneys general in all 50 states are scrutinizing how the largest mortgage servicers, including Bank of America, handle home loans and conduct foreclosures. New York Attorney General Eric Schneiderman is investigating banks’ mortgage securitizations, and California Attorney General Kamala Harris has announced a mortgage fraud task force.

Lender Processing Services Inc. (LPS) was subpoenaed by California and Illinois as part of an investigation of mortgage- servicing practices, according to statements today. Illinois also subpoenaed Nationwide Title Clearing Inc., according to an e-mailed statement from the office of Attorney General Lisa Madigan.

Bank of America's defense: it is exempt from the law.

In the appeals court case, Bank of America argued that ReconTrust has the authority to conduct foreclosures in Utah under the federal National Bank Act. The only laws that can limit the fiduciary activities of the company are the laws of the state where ReconTrust is located, it said. ReconTrust is based in California and its trust operations for Utah foreclosures take place in Texas, according to the court filing.

The Utah attorney general’s office “adamantly disagrees” with the position that as a national bank ReconTrust is exempt from following Utah law, Shurtleff said. ReconTrust must be a member of the state bar or a title insurance company, according to the attorney general.

Shurtleff told Moynihan that his office intends to enforce that law and asked for a response within 30 days.

Elsewhere, below is a copy of the letter sent out by Elijah Cumming to Darrell Issa:

May 24, 2011
The Honorable Darrell E. Issa
Chairman
Committee on Oversight and Government Reform
U.S. House of Representatives
Washington, DC 20515
 
Dear Mr. Chairman:
 
I am writing to request that you issue six subpoenas to mortgage servicing companies that have refused to comply voluntarily with requests for documents relating to illegal foreclosures and inflated fees charged to homeowners—a key area of our Committee's oversight agenda.
 
Although four other mortgage servicing companies have provided the Committee with at least some information in response to document requests, these six companies have provided no documents despite efforts by staff to obtain their voluntary compliance.
 
On February 10, 2011, the Committee adopted an oversight plan for this Congress pursuant to House Rule X, Clause 2(d). At my request, the final oversight plan included a commitment to "examine the foreclosure crisis including wrongful foreclosures and other abuses by mortgage servicing companies."1 At the time, you commended my efforts and stated, " I believe we now have a plan that can be unanimously adopted."2
 
Two weeks later, after consultation with your staff, I sent letters to ten of the nation's largest mortgage servicing companies seeking documents relating to allegations of wrongful foreclosures against military service-members and their families, "robo-signing" of foreclosure documents filed with courts, inflated fees, fraud, and other deceptive practices. These letters requested the following documents for the time period from January 1, 2006, to the present:
 
(1) internal investigations and audits relating to foreclosure policies, procedures, or practices;
(2) documents relating to improperly executed foreclosures;
(3) documents relating to improper fees charged to homeowners;
(4) the total number of complaints alleging improperly executed foreclosures; and
(5) the total number of complaints alleging improper fees charged to homeowners.

 
Four of the mortgage servicing companies that received these letters have now begun responding to these requests. We are continuing to work with those companies to gather additional documents and information related to the Committee's investigation.
 
The remaining six mortgage servicing companies have failed to provide any of the requested documents. Five have written to explain their refusal, and one has failed to respond at all. The companies that have not provided documents are MetLife, Inc.; PHH Mortgage; SunTrust Banks, Inc.; U.S. Bank, N.A.; Wells Fargo & Company; and Bank of America Home Loans.4 Bank of America Home Loans has not submitted any response. One company, MetLife, Inc., explained that it would not provide the requested documents unless it was "subject to a subpoena."5
 
Our country is facing a foreclosure crisis that has affected six million homes since 2006, and there are currently 2.2 million homes now in foreclosure.6 As we heard during our Committee's first hearing on the foreclosure crisis on January 26, 2011, the performance of mortgage servicing companies has been "abysmal."7 Several of these same mortgage servicers have now admitted publicly that they wrongfully foreclosed on homeowners and charged improper fees.8
 
To fulfill the Committee's oversight agenda and investigate these allegations adequately, we must obtain responsive documents from these mortgage servicing companies. For these reasons, I request that you authorize and issue subpoenas to compel the production of these documents from MetLife, Inc.; PHH Mortgage; SunTrust Banks, Inc.; U.S. Bancorp; Wells Fargo & Company; and Bank of America Home Loans.
 
I appreciate your strong interest in these issues and look forward to working with you.
Sincerely,
 
Elijah Cummings

h/t Manal Mehta

 

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Wed, 05/25/2011 - 14:59 | 1309909 Alex Kintner
Alex Kintner's picture

Luckily, laws don't apply to Banksters. Whew, that was close.

Wed, 05/25/2011 - 15:01 | 1309917 camaro68ss
camaro68ss's picture

I want to be a banker when i grow up

Wed, 05/25/2011 - 15:17 | 1309993 SecondComing
SecondComing's picture

I never want to grow up.

Wed, 05/25/2011 - 15:36 | 1310087 Jeff Lebowski
Jeff Lebowski's picture

No worries, Julian Assange is about to drop the hammer on B of A.  Right after the first of the year...  <sarc> 

 

Wed, 05/25/2011 - 20:15 | 1311072 downwiththebanks
downwiththebanks's picture

No joke.  CIA limited hangout operation got enough mileage from the press release, I guess.

Thu, 05/26/2011 - 00:21 | 1311949 Problem Is
Problem Is's picture

Maybe Assange wants to be a banksta like Strauss-Kahn when he grows up...

Date-Rape-ee-Rape-ee

Wed, 05/25/2011 - 15:05 | 1309915 Doyle Hargraves
Doyle Hargraves's picture

Well this will be short lived...the bank will find some skeleton in the Shurtleff's closet and poof, they will be legal again ala Spitzer methods...CRIME PAYS BITCHEZ!

Wed, 05/25/2011 - 15:10 | 1309949 Ruffcut
Ruffcut's picture

Not if I do it. I know I would be busted, in a heartbeat.

I can't even use the dryer for not removing the lint every time.

How, in a straight face, can you tell your kids to obey the law?

Wed, 05/25/2011 - 15:15 | 1309970 Doyle Hargraves
Doyle Hargraves's picture

Sarcasm in that there post. The deal is rigged. The banks will find a way out of that sh*t. Some po-dunk AG from some backwoods state, (I have been to Salt Lake/Provo more times than I care to admit), is gonna hurt the 'biggest lender in the nation', with the law?! The system has become so rigged he will either get skeletons dug up from his past, told to cease and desist by some judge or another politician above him, or will just simply disappear. That is how 'it' works these days. I obey the law, so do my kids, but obviously there are those among us who are above the law now.

Wed, 05/25/2011 - 15:32 | 1310051 gmrpeabody
gmrpeabody's picture

Too true...

Wed, 05/25/2011 - 15:43 | 1310113 Transformer
Transformer's picture

Well, I humbly, and hopefully, disagree.  I think what we have in Utah is a state government that is responsive to the people of the state.  Utah was the first to make silver and gold legal.   There is something going on there.  The state is pretty much run by LDS constituents (mormons) and whatever else you may say about the religion or its people, they are upright and honest.  I don't think scumbag sociopath politicians have much of a chance in Utah. 

 

Wed, 05/25/2011 - 16:27 | 1310246 Doyle Hargraves
Doyle Hargraves's picture

I hope you are right, too. I mean aside from having to buy alcohol at ABC stores, and the smell of the Great Salt Lake in the morning, it isn't a bad place. But on a national basis, which is where the bank fraudsters operate, it may be difficult for Utah to weather the storm. I mean look at the heat Arizona gets every time they try to fix their problems. Factor in the Feds are actively in collusion with Wells, JPM, BofA, Citi et al., and there will be some challenges to what Utah is trying to do. Believe me I wish the AG all the success in the world, but seeing the system operate doesn't give me any encouragement on the end results...I mean still after all the fraud, graft, corruption, and outright larceny that has occured, there are still no big execs doing the perp walk, nor will there be. Its just business as usual, keep the profits private and socialize the losses through bailouts.  

Wed, 05/25/2011 - 16:49 | 1310313 kumquatsunite
kumquatsunite's picture

Please, stop the public relations on Utahans (LDS, as transformer calls them) as upright and honest. There has never been a group of crooks more devoted to fleecing their own people, and everyone else, than mormons. Why do mormons lie? Because they are still taking a breath, is the answer. Mormons have long attempted to create a separate country, beginning with their expansive initial land grab, before it was reigned in, when Utah became a state. Utah is the only state in the nation, well maybe Idaho also, that is hostile to other united states citizens based on religion: not a mormon? good luck with that in Utah. Mormons are not in any way upright or honest when you understand that one of the prevailing doctrines of lds doctrine is: "lying for the lord. in other words, it's ok to say anything and everything in order to achieve an extra dollar to "donate/tithe" to the Mormon cult. I, personally, have never met a group more creepy than the Mormons. That whole, baptize the dead thing is very very necromancerish. Then there is the fact that mormon women have the highest prescription drug rate in the entire country (fact). Lastly, I'll break bread with any sociopathic scumbag politician before any mormon. Except of course for Harry Read who redefines the idea of a sociopathic scumbag politician. After all, when you call yourself a mormon but your paycheck comes from women prostituting themselves, suckers losing money at the tables, and people getting drunk, that whole "I'm a holier than thou" mormon thing just doesn't float a boat. Utahans with their endless children, are the biggest users of welfare and scamming school loans: the men go to school and that lets their families scam the welfare system!

Wed, 05/25/2011 - 18:10 | 1310589 LawsofPhysics
LawsofPhysics's picture

don't underestimate the mormons.  They would have no problem inviting those fucking banksters out to Utah for a conference in the mountains to "discuss" the problem before butchering them all and denying that the conference ever took place.  Denying truth is hard-wired in at a very young age.  Beautiful country, Utah.

Wed, 05/25/2011 - 16:47 | 1310308 goldfish1
goldfish1's picture

How, in a straight face, can you tell your kids to obey the law?

Excellent comment.

Wed, 05/25/2011 - 18:01 | 1310579 chunga
chunga's picture

Agreed. This is the kind of shit that revs me up like a race-car. Fucking fraud galore. Check out these signatures from Andrew Harmon of Harmon Law P.C. This guy is the David J. Stern of New England.

Ph.D MARC J. SEIFER HANDWRITING EXPERT on ANDREW HARMON SIGNATURES

Wed, 05/25/2011 - 22:56 | 1311632 chunga
chunga's picture

Reply to myself. Funny how things work sometimes. I put the above link on Foreclosure Hamlet and surprise, surprise...we have "infrastructure problems". Users can't log in. Not pimping - just saying...

ZH IT dept. must have a blast.

Wed, 05/25/2011 - 15:02 | 1309916 LRC Fan
LRC Fan's picture

Meh, markets don't care.  The sheeple are completely tuned out to this kind of stuff.  People should just stop paying their mortgage and crash the system.  But it's up to them, if they want to pay then I wouldn't blame them, but at this point your credit score is becoming more and more meaningless.  It's all paper and credit and derivatives and bullshit.  Soon, and very soon, it will be all about how much physical silver/gold you own.  Not SLV or GLD or registered shares or whatever but the real deal.  Credit will probably be very tight when the shit hits the fan, but those with gold/silver will have no problems getting stuff they need. 

Markets are surging to new highs.  Look for the gap up tomorrow.  Buy any and all dips.

Wed, 05/25/2011 - 15:22 | 1310020 FIAT_FixItAgainTony
FIAT_FixItAgainTony's picture

agreed lrc.  it was time to turn our backs to the "system" some time ago. 

the sheeple in amerika have no idea how corrupt the "system" has become until you enter the courts.  most get a foreclosure notice and do not fight it because they cannot "afford" an attorney (agent of the system).  so these sheeple never see the reality of how the attorneys and judges are in bed together.

yes, giving them notice you won't be subjected to their self-serving "system" is a start, then you put their feet to the fire and watch what you made ignite burn.  after "noticing" the court and then sending notice to the proper oversight committees, it's amazing how quiet the judge becomes.

the tide has turned and it's better late than never. 

i agree with the statement: TPTB have become TPTW.

Wed, 05/25/2011 - 16:04 | 1310178 iinthesky
iinthesky's picture

About a month back I sent a FDCPA type request to the bottom feeding parasitical leech debt collectors who were trying to collect on an alleged debt of $300 they claim was owed to chase and now to them for fees Chase decided to charge me on a checking account that I disputed. I asked them simply.. please prove that a debt exists with real documentation, not copies of statements which are meaningless, and that I am obliged to pay these monies to the debt collector [which if course they can never prove or show] and I'll take care of it. So what happened? A few days ago I get a letter [Directly from Chase BAR scum legal dept., not the debt collector], that they are closing a credit card account and that I better pay my alleged debt. The strange this is that this credit card account is totally unrelated to the dispute I had with the debt collector. Now, this is obviously in retaliation to having me, one of the slaves, speak up demanding the banks follow the law and prove that these fees constitute debt and that the parasites who purchase the banks bad paper [thereby extinguising the original debt if one existed] prove their claim. This is what they think they can get away with. This is how they respect the rule of law.

Wed, 05/25/2011 - 17:37 | 1310510 Calculated_Risk
Calculated_Risk's picture

Oh yeah... I had a credit card with ZERO balance. Nothing, nada. I asked them to close the account (via letter return receipt requested) because 1. I had never ever used it. 2. I will never ever use it. Six months later, after the market implodes, I get a letter claiming I owe them $32 in late fees. The late fees were because the insituted a rule that members had to pay to have their credit card. The fee $1. Mind you, I never got a letter stating the rule change, a bill for the fee, a bill for the late fees that accrued. They figured I was just some fucking chump that would roll over and pay the extortion (cause included was the threating letter of how my credit score would be horribly disfigured for life!!!).  Luckily for them I had just filed chap. 7, so guess what? I added them to the list of creditors to say FUCK YOU!!!! BAHAHAHAHAHAHA!!!!

P.S. I just watched TBTF last night... they were too kind to hank paulson.. that fuck is as greedy and shit stinking as the rest!!! Try and make that bitch look like he cares for the people or this country! YEAH RIGHT!

 

Wed, 05/25/2011 - 23:13 | 1311709 Ned Zeppelin
Ned Zeppelin's picture

"TBTF" is pure propaganda.  Nothing less than mind control bullshit from these fuckers.  Hank Paulson should be strung up from a lamppost (after a trial and due process, of course.) 

Wed, 05/25/2011 - 15:02 | 1309920 Josh Randall
Josh Randall's picture

I say "BY" you say "U".. BY-U, BY-U, BYU....clap, clap, clap!!!

Wed, 05/25/2011 - 15:01 | 1309925 LFMayor
LFMayor's picture

That's awesome... we'll have ourselves another Mormon War!  Get some fire water over to the Utes and have them join the party, too and shit will really start to roll.

Wed, 05/25/2011 - 15:08 | 1309933 ebworthen
ebworthen's picture

 

"The only laws that can limit the fiduciary activities of the company are the laws of the state where ReconTrust is located, it said. ReconTrust is based in California and its trust operations for Utah foreclosures take place in Texas, according to the court filing."

Okay then, B of A can move the houses from Utah to Texas and then sell them - & the foreclosed Utah owners get to keep the lot.  Quick, buy up shares of Union Pacific and drought plagued Texas farmland.

 

Wed, 05/25/2011 - 16:26 | 1310232 slewie the pi-rat
slewie the pi-rat's picture

darrel issa is from--cali!  this well-connected R is from down robotrader'z way and is fondly revered by all as the richest member of congress. 

stay tooned!

 

Wed, 05/25/2011 - 18:10 | 1310600 LawsofPhysics
LawsofPhysics's picture

This will be the case in many other states that were taken advantage of.  Possession is quickly becoming the law on everything.

Wed, 05/25/2011 - 15:06 | 1309934 Dick Darlington
Dick Darlington's picture

and equities goes nuts...

Wed, 05/25/2011 - 15:09 | 1309944 Gubbmint Cheese
Gubbmint Cheese's picture

what in the hell is going on with the market? what's the (fake) reason du jour for the gap up?

 

Wed, 05/25/2011 - 15:09 | 1309959 Josh Randall
Josh Randall's picture

High oil prices are good for the economy don't you know ?

Wed, 05/25/2011 - 15:17 | 1309984 LRC Fan
LRC Fan's picture

Yep, on a day like today (Dow ramping up), higher oil prices are "driven by increased demand" while lower oil prices are "good for cash strapped consumers."  Priceless shit.  Then when the market goes down (lol, it does happen from time to time, hear me out here) higher oil prices "crimp demand at the pump" while lower prices "signal a demand slowdown in emerging markets, such as China."  You literally can pay me $1 per article and I can pump out these "market recap" stories all day in about 30 seconds flat.  Bloomberg ain't got shit on me. 

They use the same words and phrases over and over and over and over again.  Just pick out of a hat, and fill in the blank.  Ready?

Markets were _______ (higher, lower) today on ________ (increased, decreased) demand, as well as _________ (housing, unemployment, GDP report) which came in _______ (pick a %) ______ (higher, lower) than Bloomberg consensus of 24 economists.  This report shows that consumers are hard hit and will crimp demand at the pump. 

I especially love the words/phrases "shrugged off," "crimp," "unexpectedly," and my all time favorite, "win" as in "Greece is trying to forge a plan to win more aid from a jittery EU." 

Wed, 05/25/2011 - 15:22 | 1310002 ebworthen
ebworthen's picture

Yes, the emotional euphamisms for HFT machines wired into Elites bank accounts are nauseating.

The markets aren't really markets, they are display cases at Tiffany's and Saks.  Time to smash some windows.

Wed, 05/25/2011 - 15:23 | 1310027 FIAT_FixItAgainTony
FIAT_FixItAgainTony's picture

+10 well put!

Wed, 05/25/2011 - 15:27 | 1310048 CrankyOldCreditGuy
CrankyOldCreditGuy's picture

++ awesome, copyright it and charge your $1 per use

Wed, 05/25/2011 - 15:52 | 1310153 ReallySparky
ReallySparky's picture

"golf clap" for LRC

Wed, 05/25/2011 - 16:13 | 1310208 iinthesky
iinthesky's picture

Yeah, whenever something is a miss or so-called bad news.. its always 'unexpected' this or 'unexpectedly' that. It's so shocking and unexpected, how could the market go down? But then they always have the reason pre-packaged and ready to roll off the teleprompter. They are so damned smart!

Wed, 05/25/2011 - 16:14 | 1310210 hidingfromhelis
hidingfromhelis's picture

Mad Libs for a ponzi economy...I like it!

Wed, 05/25/2011 - 23:11 | 1311699 Ned Zeppelin
Ned Zeppelin's picture

Don't omit "surge" and "soared today" from your Propaganda Handbook.  

 

Wed, 05/25/2011 - 15:10 | 1309962 LRC Fan
LRC Fan's picture

Someone frontrunning a huge drop in the Dixie.  It sure as hell isn't good economic data, good earnings, or "bargain hunting."  Lookout below in the DXY tonight, as we gap higher tomorrow. 

Wed, 05/25/2011 - 15:19 | 1309981 ebworthen
ebworthen's picture

Banks and Hedgies in collusion with Treasury and the FED are making a lot of money off of volatility.

The TBTF's are in the front of every trade, so anything up or down for any reason gives them a win.

The entire financial system is unhinged from the reality of the majority of individuals.

 

Wed, 05/25/2011 - 15:08 | 1309954 alien-IQ
alien-IQ's picture

Dear Mr. Cummings,

Stay away from:

Private Planes
Jaccuzzis
Maids

Good luck.

Wed, 05/25/2011 - 15:12 | 1309956 Boilermaker
Boilermaker's picture

....as they blast the shit out of the market.

The REITs just took a ramp job from hell also.

Seriously, who even gives a flying fuck about this shit anymore?  Clearly, they aren't going to ever...yes, ever...stop this shit now.

Unfucking real but, seriously, who gives a shit.  Your rights as a simple non-billionaire are absolutely zero.  This is just a pathetic joke now.

Wed, 05/25/2011 - 15:18 | 1309997 LRC Fan
LRC Fan's picture

Cue RoboTrader with endless chart porn. 

Wed, 05/25/2011 - 15:12 | 1309958 mynhair
mynhair's picture

Very bullish for puta Market.

Wed, 05/25/2011 - 15:12 | 1309967 carbonmutant
carbonmutant's picture

 " exempt from the law"

sounds like a license to kill...

Wed, 05/25/2011 - 15:22 | 1310022 boiltherich
boiltherich's picture

This starting to work my last nerve, I mailed my keys back to the bank a year ago and they still have not sold it yet.  I asked and they said that it was going to auction in April, but it was postponed to May 18th, and at that auction it was permanently withdrawn.  In the meanwhile in this state I am still the owner even though I have not made a payment in a year, which makes me liable for HOA fees and dues, insurance, though I can't buy a policy for a house I don't live in, and I cannot begin to repair my credit as long as the "late payments" keep stacking up every month. 

I had gotten a tax credit for First Time Home Buyer back in 2009 and now the IRS is auditing me, asking me to prove the house was really foreclosed upon, when I called Chase they said the foreclosure was cancelled.  WTF?  What do I have to do?  Leave the country?  I needed to move and could not sell, the bank was not going to cooperate with a short sale, I could not rent it out for anything close to the PITI payments, I do not have enough income to use householders tax breaks, I do not even file with the IRS. 

For those who asked, the markets are reacting to the huge drop in durable goods, because they no longer earn money from economic activity but are on the dole so any news that assures them the QE's will keep coming sends all markets higher.  I mean commodities are also higher though industry which uses those is in decline, there was a time when a huge drop in durables would send commodities and equities sharply lower.  Even bond yields are falling, who here would like to take a guess at how much cash it takes to move equities, bonds, and commodities all higher in a single day?  Here is a hint, a one point up move in the Dow requires a net inflow of about 1.5 billion dollars and it is the smallest of the three markets.  76 points up means that about 114 billion have flowed into the NYSE alone today so far. 

Wed, 05/25/2011 - 15:32 | 1310067 Gully Foyle
Gully Foyle's picture

boiltherich

"which makes me liable for HOA fees and dues"

What the fuck is up with banks being exempt from HOA fees? The buyer becomes liable for those fees which the bank has not paid.

Under any normal legal system once the bank stopped paying the fees no one would be responsible from that point on. Precedent was established.

 

Wed, 05/25/2011 - 15:50 | 1310135 legal eagle
legal eagle's picture

Here are some interesting facts.

The first to foreclose can chase deficiency for only 6 months because they got the property. Second lender, 6 years

HOAs are now foreclosing on homes, making them the first lender to foreclose - and allowing the first lenders (usually largest loan), and second lenders, six years to chase homeowners for deficiency judgments.

People who are in their homes awaiting foreclosure should pay the HOA fees so this doesnt happen to them.

If HOA fees arent paid, they are the responsibility of the property holder until the foreclosure. 

 

 

Wed, 05/25/2011 - 15:51 | 1310140 Transformer
Transformer's picture

Boil-- your mistake was leaving the house.  Stop paying , but don't move.

Wed, 05/25/2011 - 16:32 | 1310227 iinthesky
iinthesky's picture

I suggest you countersue the bank and ask for the securitization documents. Chase is among the worst of the mega-monsters. You can bet these fucking swine have already been paid on that loan through insurance and securitization most of which is highly questionable if not outright fraud. I suggest you do not hire a real estate attorney unless they are willing to put their BAR cards up and nail these scumbags because most of them will not look after your interests. Go read some actual cases and learn how they operate. They get paid up front more than the entire so-called loan is worth. And yes, fuck it, go live in the house. It's their system, they created it, now they have to suck it. Sad thing is the currect slew of forclosures only scratch the surface because I believe the judges are not ready yet to deal with the ultimate fraud, the fact that the banks loaned you YOUR OWN CREDIT and now they want to forclose on it. Read a most interesting affidavit submitted by an expert witness, and ex federal reserve lawyer, Walker Todd. It is VERY VERY enlightening. Here-- read this: http://freedom-school.com/affidavit_of_walker_todd_1-20-04.pdf

 

Wed, 05/25/2011 - 17:24 | 1310451 boiltherich
boiltherich's picture

No choice, I had to move, free rent might have been nice but when you have to go you have to go.  The place was a three story townhouse, never lived in, and there were 52 identical and near identical units in the subdivision, of those at least 8are vacant in foreclosure, and there are at least three more that have people living in them without paying, that I am aware of, could be a lot more than that.  One lady has not made a payment now in 30 months, another unit has been vacant since August 2008 with zero activity.  That like mine was a duplex unit and lack of maintenance means the siding is rotting, the exterior stairs are rotting and unsafe, and the guy next door has a house that is being damaged by the bank owned property, with values having dropped so much soon the repairs will exceed the value of the house.  But they can't tear it down since it is integral to the unit next door.  Lack of maintenance being a no no in the HOA CC&R's. 

They were built in 2005-6 and the last units were completed just a few months ago, the ones that first sold in 06 went for over 200,000, I waited till prices dropped below replacement costs because I knew we were in a bubble.  But you know what they say about catching a falling knife.  I paid 129,900 and within 12 months the appraisals of other units had fallen to under 70k because the banks list REO's for 69k then refuse to sell them.  It will not be much longer before they just own the whole neighborhood.  Add to that the county used the 10 of the 37 acres adjacent which is slated to be a park, one of the reasons I bought there, as a place to dump over 200,000 cubic yards of fill from various street projects.  So the property line is now a landfill.  Prevailing winds are from the west all year and the fill is touching the western fence. 

I felt bad for a few days, but I know now that it is all a scam, a head trip to enslave people to false values.  The bank is not hurting, they got hundreds of billions of your money, they did not even put up the original capital, the origination was from Ginny Mae.  I cannot understand why there are no laws requireing banks to dispose of properties in a timely manner. 

Wed, 05/25/2011 - 15:35 | 1310068 legal eagle
legal eagle's picture

You might think about offering the bank a deed in lieu of foreclosure to end your ordeal.

You can also consider drafting and executing a quit claim deed to the bank and file it - effectively transferring back any interest you have in the property to Chase.

I would discuss with a local real estate attorney in your jurisdiction -- which I am not.

Wed, 05/25/2011 - 17:29 | 1310486 boiltherich
boiltherich's picture

Can't, one of the reasons the bank would not even entertain the concept of a short sale is that my loan was 100% guaranteed by USDA Rural Development, no matter what the tab is at the end of the journey the government will pay Chase.  USDA then gets the deed and will put it up for auction I suppose, and no recourse against me, perhaps they will just move in some welfare/low income people, I do not know, but I want them to do something.  There is no excuse for the bank to procrastinate, they have no money in the deal, they get paid sooner if they sell the place and hit the USDA with the balance due.  It is as though they seek to punish me personally, screw my credit for as long as possible. 

Wed, 05/25/2011 - 15:42 | 1310097 FIAT_FixItAgainTony
FIAT_FixItAgainTony's picture

i share in your frustration.  the only thing i mailed to my pretender lender was "aha - i caught you involved in fraud" letters.  no keys for them!  i refuse to leave my home and i made sure the court understood me clearly.  i have to laugh as some company across the country pays the prop. tax each year on my place.  lol.  good luck getting repaid aholes!

sounds like you should move back in to your home (unless the place is a p.o.s. or you otherwise hate it).  i have friends in FL who say in their development 65 homes are vacant in a subdivision of 102 homes.  all 65 are just rotting and are in disrepair.  the banks do NOTHING to upkeep the properties so one has to wonder why the massive foreclosute push?

it seems to me one of the only reason is to make ol' u s of a another third world country.

Wed, 05/25/2011 - 15:43 | 1310104 Quixote2
Quixote2's picture

If the forclosure was "canceled", move back in.

Wed, 05/25/2011 - 17:35 | 1310505 boiltherich
boiltherich's picture

No, 8 months after I bought my place the vacant unit next door sold for 99,900 and the witch that owns it rents it out for 685 per month, she refuses to do any upkeep and her tenants are psycho carnies from hell.  The town it is located in is unincorporated so the County Mounties are the only law and they refuse to enforce noise and other violations.  Hoa has done nothing as well.  I went to visit a friend there the other day and my old next door neighbor has cancelled garbage service, there is month's worth of garbage on the second floor balcony just outside the kitchen.  It is unseasonably cool so far but come June/July that is going to stink like hell and the flies.  No, it was either kill those nasty fuckers or leave and I decided leaving was better for me.

Thu, 05/26/2011 - 02:06 | 1312155 mamba-mamba
mamba-mamba's picture

You should rent your former place out. In many states you can keep the rent paid by any tennants. The only recourse of the lender is foreclosure. They can't come after assets or attach other income. Lots of details to consider (is there a second, are you in a recourse state, etc.). I would rent it out. Whatever you get for it is better than nothing.

Wed, 05/25/2011 - 15:34 | 1310061 spartan117
spartan117's picture

If foreclosures are made illegal, then who in their right mind would continue to pay their mortgage?  Underwater or not? 

This means the Fed will eventually have to buy all MBS as they would be worth exactly ZERO dollars.  QE to infinity.  Gold to $500,000 an ounce.

Wed, 05/25/2011 - 15:37 | 1310079 legal eagle
legal eagle's picture

Not all foreclosures are illegal.  Banks who hold loans, or banks that did not use MERS, and have properly maintained chain-of-title by recording properly recorded assignments would be able to foreclose.

Fuck it, they are all illegal.

Given that the banks fucked all this up, shouldnt the banks pay - even if that means having every mortgage vacated?

There is no "greater good" by letting the banks get away with this.  If the banks tank, so be it.  That is called capitalism and that is what we have been avoiding.  Did you happen to see the earlier post showing everything on the Treasury's and Fed's balance sheet?  OMG, we are devoid of capitalism.

Wed, 05/25/2011 - 15:51 | 1310137 FIAT_FixItAgainTony
FIAT_FixItAgainTony's picture

agreed legal.  banks f-kd up. oh f-n well.

everyone quit paying and lets watch the banks die!

i haven't paid squat to any bank for almost 2 years now.  f them.  i only pay the utilities.  when i can get electricity generated on my own, there will be one less "bill" to deal with.

sure sucks paying for irradiated city water!  anyone else check their local water for contamination?  japan has really f-kd us all on our water forever it appears.  cancers will be up and birth rates down soon enough!

<sarc> but gee whiz, isn't that what is best for the overpopulated world?  low birth rates and radioactive contamination? </sarc>

Wed, 05/25/2011 - 17:30 | 1310478 trav7777
trav7777's picture

so fuck all renters huh?

Only people who deadbeat on their mortgages get money?

I've got an idea; how about we kick all the piece of shit squatters out to RENT and give those who've been responsibly paying their rent the free house?

Reward GOOD behavior for once.

Oh yeah and hang all the bankers

Wed, 05/25/2011 - 20:26 | 1311098 downwiththebanks
downwiththebanks's picture

Good use of the afterthought, Trav.  

That'll make people believe you're not in the Banker-Gangsters' hip-pocket.

"Give your hard earned money to the banker-gangsters for no good reason, , freeloader.  And don't forget I hate the banks."

Wed, 05/25/2011 - 15:38 | 1310092 Turkey
Turkey's picture

Issa is a crook.  He won't do a thing.

Wed, 05/25/2011 - 15:41 | 1310094 What_Me_Worry
What_Me_Worry's picture

Those Morons has some wacky cult beliefs, but you have to hand it to them for how much common sense they have at times.  Recognizing gold/silver as money and now telling BofA to move along.  Plus, they already advocate having 1 year in food storage.

If I were into wearing sacred underpants then I would definitey be looking to move there.

Wed, 05/25/2011 - 17:01 | 1310370 kumquatsunite
kumquatsunite's picture

Gold and silver are not money. Money is that which any group of people agrees can be exchanged for other things. At one point pepper, as in the black pepper used on steaks, was considered much more valuable than gold, so loved was it by the royalty. Food has always been the primary exchange between peoples. Silver and gold are so overvalued right now it is ridiculous. Why? Because silver and gold were run up for profiteers to take profits now: thus, for a decade and more to come, there are virtually no profits in silver and gold regardless of what inflation does. And for those whining about inflation, consider this: For many years now we have had de facto slave labor and all of our goods were provided to us without "labor costs." Sure they were cheap but because they were cheap the need to buy again could be pushed out until there was more cheap money to buy the cheap goods. That day is ending. As we, once again, become a manufacturing power house, welfare must end and those people will need wages, albeit cheap wages since this is unskilled workers. It is beyond time to end all immigration. We have spend the "seed corn of the future" of water, arable land, and clean air for our children, and unlike any generation before us, endlessly indulged some kind of misplaced "compassion", a form of "compassion" borrowed from our children's future that allowed them the kind of free country we all grew up in. It is very odd that "compassion" has become so perverted that it now means blackmailing the productive of their productive rewards in order to support the third world overflow washing up on our shores (no end to that; they will reproduce until some kind of plague reduces their numbers due to that overcrowding problem:india, china, in particular) and the misplaced "compassion" that encourages, nay, demands the voluntary "poor" have ever another child for ever more benefits: be they "disability" for the poor add child and his "nurse" mother (the qualification of "nurse" to a child's own mother one of the great jackpot paychecks of a communist governments appropriation of money from onerous fees and taxes on business). Ah yes, how many "compassion" children can the "poor" have? Do ya'll really believe that these people who live, generation after generation, on welfare, don't know what they are doing? Wouldn't stop having all these children who become gang members and criminals if they weren't being rewarded for it? As to the mormons, same thing. When one reads blogs from mormons, one sees a vicious group of people, unkind to each other in a bullying aggressive way that bears no resemblance to Christian kindness. And mormon "recognition" of gold and silver is ridiculous; there are lots of whispers that they've been accumulating the same from some rather nefarious sources, so once again, they are just being self-serving. As always.

Wed, 05/25/2011 - 17:19 | 1310420 iinthesky
iinthesky's picture

Uhmm, hate to break it to you but gold and silver have been recognized and exchanged for goods and services for thousands of years so how can you make two contradictory statements one after the other? "Gold and silver are not money..and then..money is anything people will accept in exchange for goods and services (which by definition includes gold and silver)" Gold serves quite well. It is virtually indestructible and much easier to carry and store than say a gigantic sack of watermelons which has the additional drawback of being perishable. Of course it's money.. Gold is the money of kings. Silver is the money of commerce.

Wed, 05/25/2011 - 17:48 | 1310547 Calculated_Risk
Calculated_Risk's picture

Tyler... I can understand the junk link.. but really, THIS deserves retard link!

Wed, 05/25/2011 - 18:20 | 1310652 LawsofPhysics
LawsofPhysics's picture

What an utter retard.

I change gold and silver into the fiat du jour all the time.  Sometimes I even buy things with PMs.  Gold and silver are real money, because they are safe stores of value.  Some financial fucknut with a degree from harvard can not simply create them out of thin air.  That very fact demands accountability and our current monetary system has NONE.  No surprise that PMs have been used as money for thousands of years and no surprise that people rush back into them when the system loses credibility.

Wed, 05/25/2011 - 15:42 | 1310096 FreeNewEnergy
FreeNewEnergy's picture

BofA = Dead Man Walking. Foreclosures have been stalled in NY for six months now, and not moving forward. Actually, going into reverse, as litigants begin filing "failure to proceed" motions on the banksters.

How long does one have to sit on a foreclosure, waiting for the bank to make a move, before it becomes a financial burden (can't get credit, can't sell the house, can't ???)? Sooner or later, some smart lawyer will begin negligence actions against the banks for dragging their little footsies on FCs and the litigation sheet will meet Mr. Fan.

While I understand that many one these forums believe the banks have their "get out of jail free" cards printed by the US Govt., the situation has actually deteriorated significantly, especially for my BFF, BofA, since robo-signing first became part of the American parlance. That was October, and the banks said then that they'd resume FCs in about a month.

Ummmm, Nov., Dec., Jan., well, you get the picture. That month is turning into six months and will eventually grow to a year. And the banksters, like Moynihan, will cry that all this litigation and investigation has caused the banks to suffer more pain, and, and, and, well, we need another bailout, don cha no?

This is all going very badly for the banks and very, very good for homeowners who said FU to the criminals in suits.

My name is ***** and I made my last mortgage payment in July, '09. I've been clean for almost two years and life is worth living again.

Wed, 05/25/2011 - 15:56 | 1310160 FIAT_FixItAgainTony
FIAT_FixItAgainTony's picture

my name is tony and i made my last mortgage payment in december 09.  i've been clean from using Fascist Reich Notes for over a year now.  life is possible without Fascist Reich Notes unless you are paying a corporation (corpse).

Wed, 05/25/2011 - 16:22 | 1310224 everycentometal
everycentometal's picture

the shareholders of the fed will never lose, history has shown that. the u.s. is a corporation under the crown. our first bank charter was signed by george washington in 1791 for 20 years. the charter expired in 1811, and when we threatened not to renew it great britain declared war on us. they invaded Washington dc and burnt down our capitol building. they only left because we agreed to another bank charter, not because we defeated them as the history books suggest. the crown will never allow the banks to lose, its been 4 years and how many have gone to jail? statute of limitations runs out next year and im sure they have one hell of a party planned.

Wed, 05/25/2011 - 20:27 | 1311110 downwiththebanks
downwiththebanks's picture

+1

Wed, 05/25/2011 - 15:53 | 1310148 everycentometal
everycentometal's picture

if you think about it AG's are usually in bed with the banksters. so that got me to thinking about this another way. maybe, just maybe this has all been a charade to make it seem as though this is the outcome the banksters do not want, when in reality it is exactly what they want. by barring them from foreclosing the banks do not have to recognize the loss and they can continue to carry the properties at mark to myth. not to mention the 100 billion dollars of consumer spending done by people not paying their mortgages every month. just trying to remember that everything is usually constructed to help the corpocracy not hurt it.

Wed, 05/25/2011 - 15:57 | 1310171 FIAT_FixItAgainTony
FIAT_FixItAgainTony's picture

you are correct.  in my state i sent a RM letter to the AG and specifically asked if he was in bed with the banksters.  in the response letter there was no rebuttal, so yep, it's every man for himself.  the alleged elected "leaders" are sock puppets.  so one must be real childish to believe in them for help.

load the guns and prepare!

Wed, 05/25/2011 - 19:06 | 1310822 cramers_tears
cramers_tears's picture

+1 - Excellent Cheater Analysis.

Wed, 05/25/2011 - 15:56 | 1310159 docj
docj's picture

Popcorn and Diet Coke at the ready. This could get good.

Wed, 05/25/2011 - 16:06 | 1310190 citta vritti
citta vritti's picture

Actually, fwiw, it isn’t so clear Utah laws apply. As a federally chartered bank regulated by OCC, Recon Trust N.A. probably enjoys federal preemption of state laws that hinder its operations, which it certainly sounds like Utah is trying to do.

Wed, 05/25/2011 - 16:14 | 1310215 cpzimmon
cpzimmon's picture

I hope they get those mother fuckers and put some in jail finaly.

Wed, 05/25/2011 - 16:25 | 1310228 Jovil
Jovil's picture

In the US Army we had a survival rate in battle measured in minutes and seconds. The survival rate for a machinegun gunner was 45 seconds. I wonder what the life expectancy of the Ohio Attorney General is. I mean this politically, cease and dessist, threats, etc. when the banksters really get involved. The US uses "Economic Hit Men" to scare the shit out of uncooperative presidents in other countries why not here at home where they have more to loose.

Wed, 05/25/2011 - 17:26 | 1310470 Life of Illusion
Life of Illusion's picture

 

Delayed foreclosures give economy a booster.

How convenient. How many billions in extra spending?

Wed, 05/25/2011 - 17:31 | 1310493 trav7777
trav7777's picture

I want my free house.

Wed, 05/25/2011 - 17:46 | 1310529 boiltherich
boiltherich's picture

Just pick one and move in, there are now 36,000,000 vacant housing units in the USA and frankly most banks would be relieved to have someone in them, paying or not, keeps the tweekers from stripping out the copper and fixtures.  Lot of pressure on the rental market, look for rents to rise in excess of CPI. 

Wed, 05/25/2011 - 20:29 | 1311115 downwiththebanks
downwiththebanks's picture

"Give the banker-gangsters your hard earned money for no reason.  Don't forget I hate the banker-gangsters."

"Seriously, I'm not a bootlicker."

Wed, 05/25/2011 - 17:44 | 1310535 SunBlaster
SunBlaster's picture

LAWL

750 Bills in TARP vs 2 Bills in fines, who is the looser here?

Wed, 05/25/2011 - 18:02 | 1310581 Derpin USA
Derpin USA's picture

Awesome. Gotta love the Mormons. Seriously, their beliefs are ridiculous but I'll be damned if they aren't the best people I've ever dealt with.

Wed, 05/25/2011 - 20:28 | 1311099 boiltherich
boiltherich's picture

Not to mention some of the best genetics man has created, and the magic underpants are kind of sexy too.

Wed, 05/25/2011 - 20:47 | 1311172 LFMayor
LFMayor's picture

True dat.  Marie Osmond is still rockin hawt.

Wed, 05/25/2011 - 18:13 | 1310610 disabledvet
disabledvet's picture

blow up the banks/bail them out.  blow up the banks/bail them out.  blow-up the banks/bail them out.  blow up the banks/bail them out.  how about "that house is now worth 10,000 bucks and not the 10 million we've been claiming all along?"  the Federal Government can do this. Orrrrrrrrr...it can...."seek a consensus on"..."blow up the banks/bail them out.  blow up the banks/bail them out.  Blow up the....

Wed, 05/25/2011 - 18:37 | 1310698 Downtoolong
Downtoolong's picture

Somewhere in a back office of BofA someone is sticking pins in a Voodoo doll that looks eerily like Angelo Mozilo, complete with skin made out of old orange rinds.

 

Wed, 05/25/2011 - 20:33 | 1311117 downwiththebanks
downwiththebanks's picture

And Joseph Smith!

Wed, 05/25/2011 - 18:43 | 1310741 DontShootTheMes...
DontShootTheMessenger's picture

This reminds me of a song I made up (um, altered).  If you have kids or grandkids under 15, you probably know the music:

 

Bob the Builder, he's gone bankrupt.

Bob the Builder, with no plan.

Bob the Builder, banks are calling.

Bob the Builder, gun in his hand.

Can he build it?  No he can't.

Why can't he build it?  He's got no credit.

Bob the Builder, he's gone bankrupt.

Bob the Builder, with no plan.

Bob the Builder, banks are calling.

Bob the Builder, gun in his hand.

Wed, 05/25/2011 - 20:08 | 1311038 Tater Salad
Tater Salad's picture

I say kick 'em out.  If you don't pay, you can't play.  Period!

Not sure why the cat and mouse about lawful/unlawful?  If you can tell me how Barney [liberal sodemist extrodinare] Franks did the country any benefit by packing Fony/Fraudy an ass full of sub prime/alt A/NINJA loans via the banks, I'll then sell you some ocean front property in Arkansas!

Get over it do-gooders, Barney can eat my balls for now with his FrankenDod bullshit! 

Vote Obummer out too, he's the second pant load of diarrhea behind the libs in congress.

Wed, 05/25/2011 - 20:24 | 1311095 James
James's picture

Read over at survivalblog.com that one can get canning supplies cheap from your local LDS cannery. Seems they can their congregations harvests.Call your local LDS church for info.

Wed, 05/25/2011 - 20:52 | 1311177 LFMayor
LFMayor's picture

read over there not long ago that now the LDS requires that you have the specific invite of a member if you're not of the church.  Apparently lots of people read that first SB article man.

Wed, 05/25/2011 - 23:07 | 1311677 Ned Zeppelin
Ned Zeppelin's picture

Notwithstanding the numerous shills for the TBTFs who will say otherwise, this type of action has been eating them from the inside out for months, and is an infection that cannot be contained. The cancer has fully metastasized and cannot be controlled. The losses are there and will be realized over time.  Political solutions will not work, even national legislation cannot preempt state property and foreclosure laws.  The TBTF Towers will fall over this.  Hank Paulson, a true traitor and thieving bunghole, was right, in the sense that they needed to buy these assets and get them out of the TBTFs so they could implode harmlessly in some sort of government SPV containment vessel.  He couldn't pull it off, decided to buy time with the equity infusions into the vampiric TBTFs, hoping time would heal the wounds, and the rest is history. 

Wed, 05/25/2011 - 23:31 | 1311778 SilverFocker
SilverFocker's picture

"True Love"..........nuttin but the best.

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brand shoes's picture
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