Fraudclosure Update: The Crowd Is Getting Restless

Tyler Durden's picture

The US population is starting to get restless: investors are beginning to sue, there are protests over HAMP, and foreclosure probes are happening.

HAMP Protests

Washington Post: Economists: U.S. should remove top bank execs over foreclosure mess

Assured Guaranty Sues Deutsche Bank Over Mortgages

Assured said more than 83 percent of 1,306 defaulted loans examined in one of the transactions, ACE’s Home Equity Loan Trust, Series 2007-SL2, breached Deutsche Bank’s representations and warranties. In the second deal, Home Equity Loan Trust, Series 2007-SL3, 86 percent of the 1,774 loans breached the agreements, Assured said.

Faulty Foreclosures, by Adam Levitin

Bank of America Mulls Dividend Hike

U.S. probing foreclosure processing firms (uses the criminal word…)

Homeowner says Stern sent retaliatory letter

From the last must read article showing how desperate parties on both sides of the table are getting:

A lawyer for a homeowner who went to Florida's attorney general about a law firm's conduct in a foreclosure case claims the firm sent his client a "discriminatory and racially degrading" letter to frighten him into dropping the complaint.

The letter, which the homeowner asserts emanated from the Law Offices of David J. Stern in Plantation, was filed with a counterclaim to a foreclosure action brought by CitiMortgage in Miami-Dade Circuit Court.

Stern's attorney questioned the authenticity of the letter and said it was not authorized if it was generated by the law firm or by its back-office foreclosure processing business, DJSP Enterprises.

Jorge Porter and his attorney, John Herrera, said the letter arrived in the mail after Porter took complaints about his foreclosure to the state attorney general's office. Twelve homeowners are named in the attorney general's subpoena for Stern's records, and Porter is one of them.

The counterclaim filed on Porter's behalf characterizes the letter as "threatening, discriminatory and racially degrading" and also says it "threatened Porter with criminal action if he did not pay the total amount due to their client, CitiMortgage."

"This particular letter is a direct response to my client's allegations of fraud," Herrera said in an interview. "You can almost categorize that letter as extortion."

Some of the country's largest lenders stopped doing business with the law firm since early this month.
The letter to Porter dated Aug. 18 instructs him to vacate his home within 30 days or face eviction on an April foreclosure filing in the circuit court. But in a counterclaim filed with the court, Herrera raises 25 affirmative defenses to the foreclosure. One asserts CitiMortgage did not own or hold the mortgage when the action was filed. Herrera, who filed the letter Oct. 19 as a court exhibit accompanying Porter's counterclaim, sees the letter as an effort to frighten his client into withdrawing the complaint he filed with the attorney general.

Under a label "publication or dissemination is prohibited," the unsigned letter on Stern law firm stationery states, "You should be relieved to be able to live in a civilized society and not take for granted the many opportunities available to people like you here, instead of taking advantage of the system by continuing to occupy a property you don't legally owned [sic]."

"Frankly speaking, you seem to ignore how 'The Rule of Law' works in this Country," the letter states. "We therefore encourage you to educate yourself, as to what is 'legally' acceptable in the United States. The fact that you are a foreign national from a third world country doesn't excuse you from such ignorance."

The letter leaves a white gap for a signature above the typed words "Law Offices of David J. Stern."

Stern's attorney, Jeffrey Tew of Miami's Tew Cardenas, said a security officer at Stern's firm couldn't find the letter in the firm's database. Tew noted the foreclosure case number listed in the letter did not adhere to the firm's style.

"We have examined the letter. There appears to be some things about the letter that bring its authenticity into question, and, in any event, it wouldn't be an authorized letter from the law firm," Tew said.

A Pitney Bowes postage-meter number on the envelope traces back to Stern's offices, according to Herrera. He said Stern's representatives can examine the original, and he would make his computer databases available for inspection.

Herrera, a Coral Gables solo practitioner, contends CitiMortgage lacked standing to sue because Porter's mortgage was sold in 2005 by Mortgage Warehouse to ABN Amro Mortgage Group. He asserts CitiMortgage did not "own, hold or possess" the mortgage when the foreclosure was filed.

The counterclaim alleges slander of title, fraud, fraudulent misrepresentation, abuse of process, civil conspiracy, violation of Florida Consumer Collection Practices Act and violation of the Fair Debt Collection Act.

Court papers initially listed CitiMortgage as the mortgage servicer. A mortgage assignment from Mortgage Warehouse to CitiMortgage was executed Aug. 18, four months after the original foreclosure filing. Herrera called that "a legal impossibility."

'Fabricated Documents'

Herrera said Porter complained to the attorney general's office about the foreclosure earlier that month. On Aug. 10, Attorney General Bill McCollum announced the filing of subpoenas against Stern's firm and three others, claiming "fabricated documents" have been filed in foreclosure cases to oust homeowners.
The law firms say they committed no systemic wrongdoing.

The Aug. 18 date on the letter with the offensive language is the same date as the mortgage assignment.
"This 'sore losing' demeanor will not be tolerated any longer," the letter states. "You know the charges you have filed against our Law Firm are totally false, defamatory, unfounded as are also both embarrassing and shocking."

Porter said the letter came as a shock.
"He makes a major insult against me, my nationality, my ethnic background," Porter said. "Add this to all the humiliation of the foreclosure and everything I had been going through with the bank, it's just not right."

Porter moved to United States with his family when he was a child, settling first in New England before coming to Miami. He said the letter reminded him of something his grandmother used to say: "I'm too American to be Colombian and too Colombian to be American."

Porter, a real estate agent, said he was not going to let his home of 20 years go without a fight. But he said he could never get through to a lawyer at Stern's firm and was belittled by the staff when he called. He said they would purposely pronounce his first name Jorge as "whore."

"I would say, 'Ma'am, you are not being funny," Porter said. "They hung up on me so many times."

Loan Modification

He asserted he tried to work with CitiMortgage from the start. He worked on a loan modification and continued to make mortgage payments though he was in arrears on the $200,000 loan. He said CitiMortgage kept losing his paperwork and eventually his whole file. He said he rejected a modification packet that was mailed to him with different terms than were discussed. The foreclosure suit was filed a few weeks later.

Porter said he went to the FBI, the Federal Trade Commission and finally the state attorney general's office.

"This is the poster child case for the mess that we are in," Herrera said.   

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Cdad's picture

And somehow JPM finished up today.  WTF is going on!


JGus's picture

No worries!

Chapter 2 of the Book of The Prophet Micah

 1 Woe to those who plan iniquity,
       to those who plot evil on their beds!
       At morning's light they carry it out
       because it is in their power to do it.

 2 They covet fields and seize them,
       and houses, and take them.
       They defraud a man of his home,
       a fellowman of his inheritance.

 3 Therefore, the LORD says:
       "I am planning disaster against this people,
       from which you cannot save yourselves.
       You will no longer walk proudly,
       for it will be a time of calamity.

pan-the-ist's picture

I'm going to let you in on a secret.  Nothing will happen to them unless people intervene.  If you sit back and wait for God to take care of it for you, you will be disappointed.

I seriously hope that you are not schizophrenic, though it sounds like you probably are.

Cdad's picture

Save the whales....Hong Kong.


66Sexy's picture

i'm sure the elites love moral fiber. they eat it with the soft flesh of learned condition responses that allow them to take advantage of fools...


themosmitsos's picture






66Sexy's picture

hey, bible quoters...

don't just sit there in a love trance... buy a fucking rifle.

ArgentDawn's picture

Disillusioned 29 year old American with AK reporting as ordered!

Optimusprime's picture

An ability to quote the Bible is by no means incompatible with the ability to own, and know how to use, a rifle!  We must each reason and act as individuals.  Biblical quotes like the one in question have to do more with overall outcomes.  Peace.

Cdad's picture

Save the whales....Hong Kong.


Stormdancer's picture

Of the content, two words "No worries!" are attributable to the poster himself.  The rest were quotes.  From two words you discern schizophrenia?  LOL!  Perhaps it is you who needs to take a look at just why such a post was capable of igniting such an emotional reaction in yourself :).  Just what is it you're so afraid of?

Lower Class Elite's picture

Well, for me, I tend to get a little anxious around people who believe in talking snakes, invisible men, ritualized proxy cannibalism, you know, crazy shit like that.

atomicwasted's picture


Although if you exclude the crazy shit, there are some decent and enduring truths in the Bible.  But you have to pick the raisins out of the cookie to get to them, as it were.

pan-the-ist's picture

Emotional?  I was pretty dead pan.

"Call on God, but row away from the rocks."

G-R-U-N-T's picture


Perhaps exorcising the Fraudclosure Beasts may be an effective tool...

Azannoth's picture

The christian god sold his son to pay for the debt(sin) of humans, if religious people followd his cue they would sell their children in slavery to pay for the social benefits of the democrats and have nots. Ha try beating this logic u religious morons !


The morale, if you try learning economy from the bible you go broke real fast

Fed Supporter's picture

 1 Corinthians 1:27 

But God hath chosen the foolish things of the world to confound the wise; and God hath chosen the weak things of the world to confound the things which are mighty;

Isaiah 1:18

Come now, and let us reason together, saith the LORD: though your sins be as scarlet, they shall be as white as snow; though they be red like crimson, they shall be as wool.

illyia's picture

Hey JGus -

That was interesting! You junkeramers - please get a grip and take the morality where you find it. Don't discourage someone who is looking for justice.

Really... that's just the same attitude as the banksters have: "I'm right and the -*&^% with the rest of you!"

Bad ZHers (or at least, thoughtless).


i-dog's picture

I junked him because he is waiting for his imaginary friend to come and fix things for him (or to destroy the world). That's not the way we get things done in the real world!

We could still fix this mess, if people put down their holy fairy tales and started emailing their state representatives to secede from the cesspool.

mtomato2's picture

You, sir, are hugely unworthy of your magnificent avatar.  Go be atheist all you want, but calling others names only weakens your position. 

It's very possible that you have no clue as to what the "Real World" actually is.

So please, continue to rant, and help me futher make my point.

Fed Supporter's picture

2 Peter 3:9

The Lord is not slack concerning his promise, as some men count slackness; but is longsuffering to us-ward, not willing that any should perish, but that all should come to repentance.

mtomato2's picture

Damn straight.  The fact that there are twenty junks for JGus at the time of my posting is testament to the fact that people are just getting ridiculously irrational.  And scared to death of divergent thinking.

Bad ZH'rs.  Indeed.

Junk away.

WouldaCouldaShoulda's picture

Just stunning.  All day long they complain about all of the crap going on around them and when the truth is presented these bozos got no other response then to junk you.


zen0's picture

The bold print says the punishment of the elite will be transgenerational.


I find it curious you were junked 11 times. All these people who seek the truth don't recognize it when they see it. They reject it out of hand.

The rational thing would be to acknowledge their ignorance and ignore it, taking an agnostic stand. But no, knee jerk junks.

1100-TACTICAL-12's picture

A-Men, If you belive there is no god, what is there to live for?

HarryWanger's picture

A-Men, If you belive there is no god, what is there to live for?

-Life, enjoy it.



Among a million other reasons.

kridkrid's picture

Ha!!! Fantastic edit... but I believe your original post was the ever Christian-like "FN Moron"... was it not?  WWJD Cdad?

geminiRX's picture

Yes, live life looking out for your own interests......this is why we are in shit debacle we are in.  

Lower Class Elite's picture

As opposed to living life in the interests of an invisible sky daddy who created and controls everything and yet somehow isn't responsible for the fucked up parts of his creation, and who also intentionally conveys what his interests are in arcane, obscure, often confusing ways so as to separate out those who are worthy of one day magically transforming into eternal praise-singing automatons from those who will suffer never-ending excruciating torture for all eternity.  Yes, that is much better.

RockyRacoon's picture

Hey, you got a problem with the flying spaghetti monster?

Me and you, buddy -- outside, now!

Lower Class Elite's picture

Whoa, hold up.  I fully acknowledge the power of the Noodly Appendage.  But He is backed up by FACTS.  Have you seen the charts on global average temperature versus number of pirates?  I rest my case.

Minion's picture

To understand why the world has suffering, pain, and other degenerate parts, you must first understand perfection.  "My ways are higher than your ways and My thoughts are higher than your thoughts", says the LORD.

Consider it growing pains........... we are in this life as a test.  Sin causes death, but the Word created life, physically and spiritually, if you so choose....... 

Rodent Freikorps's picture

Wouldn't the world be a better place is people simply followed the ten commandments?

Don't we want the world to be a better place?

The PTB want no God but the state.

ZH'ers are not nearly as unprogrammed as they think.

Else, why all the hate?

TJ_is_annoyed's picture


While I get the spirit of your question, I must answer with this:  "We" aren't actually under the 10 commandments any longer.  Jesus died to create a new, more perfect law: "God, who at various times and in various ways spoke in time past to the fathers by the prophets,  has in these last days spoken to us by His Son, whom He has appointed heir of all things, through whom also He made the worlds;" (Hebrews 1:1-2), and this "Therefore, if perfection were through the Levitical priesthood (for under it the people received the law), what further need was there that another priest should rise according to the order of Melchizedek, and not be called according to the order of Aaron?  For the priesthood being changed, of necessity there is also a change of the law." (Hebrews 7:11-12)

Not only that, but the 10 commandments were only given to the Jewish people. The Gentiles were never included in the old law.

This is not to say that the 10 commandments are not something to ignore, since they were improved upon in the New Testament (which we are all under).  Having said this, I will agree with the spirit of your message.

Minion's picture

"Love God with all your heart, all your strength, and all your mind"

"Love neighbor as self"

Pretty much sums up the Law that Christ lived by and expected the faithful to keep.

Minion's picture

It's taken 15 years of doing things my own way for me to realize that what you give is what you receive.  What you take is what eventually takes you.  On a long enough timeline, we all die - no one is perfect - because "cursed is the ground for your sake" said the LORD after man decided to do things his own way. 

If everyone had it easy, we would kill ourselves off.  War is always declared by those who live exalted lives. Remove predators in nature and the prey overbreed and oveconsume until they overshoot........ and COLLAPSE. 

The hidden message in the bible is that there is a way of peace on earth (the Ten Commandments, and their summary "Love God and Love Neighbor as Self" are the beginning).  We are given time to experience our own self-inflicted misery.  Those "fucked up parts" are man made, and man's thoughts are futile.  Look at history - no system of government has ever created peace, enduring happiness and abundance, and wisdom.  Entropy at its finest.  The theory (religion) of evolution is man's attempt to ignore the facts of natural decay whilst removing the consequences of sin - death. 

Man must experience this in order fully understand God.  That is the point of free will - we can't understand One higher if we don't even understand the futility of our own way.  You can't learn unless you're first humbled. 

No one can understand this unless they understand the way of enduring peace.  The bible is a coded book, only to be fully understood with the Spirit, which only comes to the humble who truly seek it out. 

Peace, my fellow ZH'ers.  :D

geminiRX's picture

Replace "invisible sky daddy" in your previous statement with "Lloyd Blankfein" - and you will get my point completely:)

Lower Class Elite's picture

Touche!  It does fit nicely, huh?

jeff montanye's picture

does this battle of the seen vs. the unseen (unresolved after millennia) illuminate the actual post on the possible turning of the tide in the mortgage fraud?

doggings's picture

"invisible sky daddy"

great phrase, consider it "borrowed" :)


kridkrid's picture

It's fun.  There's a lot to do.  There's a lot to learn.  I like playing sports.  My college football team is pretty good most years.  My wife is pretty hot.  I have two awesome kids.  My daughter took off her training wheels a few weeks ago.  The weather has been awesome.  The kids are fired up about Halloween.  World Series starts tomorrow.  My parents are still in great health.  I have a cool group of friends.  I have a pretty good job.  Pandora radio is kick ass.  I haven't worn a tie in years, minus a funeral that I went to for my 94 year old grandmother... it was more of celebration than a funeral.  


I don't believe in fairy tales, the easter bunny, Santa Clause or any other silly religion.  If there is a god, he certainly didn't write the Torah or the new testament or the Koran... that is all just mediocre literature, at best.

geminiRX's picture

You're the perfect example of someone waiting to take the fall. Beware of idols.

kridkrid's picture

Curious... what in my list of things that I appreciate about life would seem like idolatry?  My children?  My wife?  A good job that I work pretty hard at?  My alma matter's pretty good football team?  And do we know each other?  Isn't there some verse about "judge not lest thee be judged?"... While I certainly know a whole lot more about the history of Christianity than most Christians, I don't claim to know all scripture and verse... help me out... you seem to know your stuff.

Minion's picture

Funny thing is, most of what the world calls "Christianity" came out of Rome and Babylon - the symbols, holy days, even the attire of the Pope has roots in the first civilization after the flood.  If you don't believe the flood happened, call it the first civilization that the history books recorded.  :)