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JPMorgan Brings Foreclosure Case In Mortgage In Which It Was Just A Servicer, Court Finds Bank Committed Fraud

Tyler Durden's picture




 

An interesting development out of Jean Johnson, Circuit Judge in Duval Country, Florida, where in a case filed by JPMorgan/WaMu, as Plaintiff, and law firm of Shapiro and Fishman, attempted to evict defendants Hank and Marilyn Pocopanni. As basis for the legal case, WaMu had submitted an assignment of mortgage, which however the court just found never actually belonged to WaMu, and instead was carried on the books of Fannie Mae. Once this was uncovered is where this case gets really interesting: In point 5 of the filing we read that the "plaintiff predecessor counsel made "clerical errors" when it represented to the Court that the plaintiff was the owner and holder of the note and mortgage rather than the servicer for the owner."  Which means that only Fannie had the right to foreclose upon the Pocopannis, yet JPM, as servicer, decided to take that liberty itself. And here the Judge got really angry: "The court finds WAMU, with the assistance of its previous counsel, Shapiro and Fishman, submitted the assignment when [they] knew that only Fannie Mae was entitled to foreclose on the Mortgage, and that WAMU never owned or held the note and Mortgage." And, oops, "the Court finds by clear and convincing evidence that WAMU, Chase and Shapiro & Fishman committed fraud on this Court" and that these "acts committed by WAMU, Chase and Shapiro amount to a "knowing deception intended to prevent the defendants from discovery essential to defending the claim" and are therefore fraud. While the Judge in this case did not also find declaratory damages against the plaintiff, and while the case of the defendants is unclear (we would expect Fannie to file a foreclosure act on its own soon enough), the question of just how pervasive this form of "fraud" in the judicial system is certainly relevant. Because if JPM takes the liberty of foreclosing on mortgages as merely servicer, when it has no legal ground for such an action, who knows how many such cases the legal system is currently clogged up with. The implications for the REO and foreclosures track for banks could be dire as a result of this ruling, as this could severely impact the ongoing attempt by banks to hide as much excess inventory in their books in the quietest way possible.

Our advice to any party caught in a foreclosure process is to immediately go to www.fnma.com and use the Lookup Tool to see if Fannie is still mortgage owner of record, if a foreclosure suit has been brought up by a plaintiff other than the GSE.

We are confident quite a few other such cases will promptly appear.

 

 

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Thu, 09/16/2010 - 17:40 | 586409 swanpoint
swanpoint's picture

biotches.

Thu, 09/16/2010 - 18:34 | 586524 themosmitsos
themosmitsos's picture

Tyler, THIS IS A HUGE DEAL.

As someone who's bought countless distressed properties from REOs over the last 15yrs, from before that activity became an infomercial, and who is intimately familiar with this process, I can assure you this not only sets a very important precedent, but that servicers filing on behalf of the true plaintif AND EVEN GOING SO FAR AS TO REFUSE TO DISCLOSE THE TRUE HOLDER OF THE NOTE was standard operating procedure up until this recent crisis and the Obama moratoriums, ESPECIALLY IN FEDERAL COURT.

The first WIDESPREAD instance of a Company doing this was a Company named "ContiMortgage" who was convicted of fraud in multiple states and went bankrupt ~2000. The principals of the Holding Company off-loaded a large part of the book to a new entitity who they created and who is DBA "FairBanks" Corporation [same main list of principals] who has faced a litany of the exact same type of charges from defendants [both Companies engaged in widespread standard accounting fraud of fees and charges PRIOR TO DEFAULT [read mortgage insurance for ex, late fees, and even more ridiculous act like NOT applying excess payments towards principal but instead applying them towards the next month's payment (shit you not), etc], and subsequently denied defendants FUNDAMENTAL due process, consistently fought discovery of the true noteholder, jurisdiction (different principal may mean state instead of federal & vice-versa), severability, etc, as a means of concealement of outright fraud] but my knowledge of what happened to FairBanks concludes ~5/6yrs ago as I stoppped tracking the matter, because Judges effectively throughout the nation wouldn't get into going after the proncipals of the Holding Company [there were no "recongnizable" names as principals at least not to me]. Last I knew the bulk of the matter, against FairBanks [at this point as successor---which they were still denying lol] and as a perpetrator in their own right had been consolidated in New York Federal District Court. These cases WERE THE FIRST NATIONWIDE INSTANCES OF PREDATORY LENDING AND PREDATORY PRACTISES BY LOANHOLDERS, SERVICERS, etc.

This is a BIG DEAL as with the multilayered parcing of the notes a defendant can make a valid argument that there exists no true principal noteholder with which to interact [&/or negotiate--it is IRRELEVANT whether said party would interact in this process. The hiding of who that party is represents a legal problem under severability clauses]. This is an IMPORTANT distinction as one of the many standard practises by servicer plaintiffs [of which ContiMortgage was GROSSLY guilty of, and FairBanks to a lesser extent] is refusing to provide an accurate legally binding payoff letter, which isn't riddled with disclaimers, and also not including, EVER, an full and accurate accounting of all charges. I shit you NOT. You just can't make this stuff up. Of course, all this BEFORE the real estate market tanked [ie upto ~2yrs ago]. Objective being the Banks wanted the properties [ie read equity,as values kept rising, even in the ghettos lol!]. Not sure what's up so much now. Waiting for it to drop another 20/30/40% then I'll get back into it. ;)

Thu, 09/16/2010 - 18:37 | 586574 nmewn
nmewn's picture

I believe a majority of the mortgages held cannot be identified as to who actually is holding the paper. It is a contract. Period.

This is another from a year ago;

http://www.allbusiness.com/legal/legal-services-litigation/13120724-1.html

Send lawyers, guns & money ;-)

http://www.youtube.com/watch?v=S5puAN1PGQw

Thu, 09/16/2010 - 18:50 | 586597 themosmitsos
themosmitsos's picture

It may be a contract, but if one can't identify one of the contracted parties, that violates severability while the contract is in good stead, and due process during litigation

I'm not talking about Identifying the "trader" ... I'm talking about identifying, effectively, the owner of the tranches. If the owner [largest %] is international for ex, he can't file in state court in many[most?] jurisdictions. Just one example. Another ex is if the tranches are owned say, 5%x20...then there is NO true holder w/whom to interact. Violates due process. Requires effectively all owners to coalesce & agree on a representative, and no, the servicer does NOT meet this requirement.

Tyler, correct link to Fannie Mae look-up

http://www.fanniemae.com/loanlookup/

Thu, 09/16/2010 - 20:18 | 586792 nmewn
nmewn's picture

"It may be a contract, but if one can't identify one of the contracted parties, that violates severability while the contract is in good stead, and due process during litigation."

My thinking as well.

"I'm not talking about Identifying the "trader" ... I'm talking about identifying, effectively, the owner of the tranches."

Understood and agree. The link was meant to cover the issue of interested party's. It would/will be a Gordian Knot to go through.

"Another ex is if the tranches are owned say, 5%x20...then there is NO true holder w/whom to interact."

Exactly.

Thu, 09/16/2010 - 20:31 | 586818 New_Meat
New_Meat's picture

and, the courts will next have to examine standing with respect to the plaintifs' claims.

McNews had a story in like '07 where a FL owner, about to be served, said "prove that they are the owners of the note" and lasted two years.  Before court confusion.

- Ned

(nmewn-another example of Cracka and Yankee agreeing on a) system fubar and b) how do we un-fu the whole mess.  After several adult beverages, well, we forgot our perfect solution ;-) )

Thu, 09/16/2010 - 21:39 | 586932 nmewn
nmewn's picture

Remember the story well.

"another example of Cracka and Yankee agreeing"

See, I knew you'd come around to my way of thinking...LOL.

All my thoughts may not be palatable to everyone...may not quite ready for prime time just yet. But I think you would agree with most...they're old...time tested. Along the lines of de Tocqueville, Jefferson with a more modern spice.

We'll see how it goes after Nov. & a few more beverages ;-)

 

Fri, 09/17/2010 - 17:07 | 588598 themosmitsos
themosmitsos's picture

Wait a minute! Do I know you, kinda? Was the lawyers, guns & money thing a hint? Because I sent EXACTLY that video to somebody like 10days ago with exactly that quote. Don't worry, not outing you, but are you....you? Or just coincidence?

ps:

If at his counsel I should turn aside
Into that ominous tract which, all agree,
the Dark Tower hides. Yet acquiescingly,
did I turn as he pointed: neither pride
Nor hope rekindling at the end descried,
So much as gladness that some end might be.

;)

Fri, 09/17/2010 - 18:50 | 588747 nmewn
nmewn's picture

No it's a coincidence. We're probably around the same age.

Fri, 09/17/2010 - 02:47 | 587284 StychoKiller
StychoKiller's picture

That web page does NOT display correctly with firefox, your Govt FRNs in action, I guess :((

Thu, 09/16/2010 - 19:00 | 586628 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

More fun: in May, 2 courts found that MERS could not be a titleholder for a mortgage. When they were assigned as such, they broke the chain of ownership. Those people got their homes for free. 

Wanna guess how many properties have MERS's fingerprints on them? Almost 80%.

Thu, 09/16/2010 - 19:47 | 586718 Joe Sichs Pach
Joe Sichs Pach's picture

Can you post links for articles/references to these two parties getting 'their homes for free.'?  

I'm sure many folks would be interested in seeing those for precedent purposes.

Thu, 09/16/2010 - 19:58 | 586745 1fortheroad
1fortheroad's picture

It hit Fox news, I was surprised they aired it.

http://www.youtube.com/watch?v=8aoG8AbyXWs

Thu, 09/16/2010 - 21:32 | 586926 Idiot Savant
Idiot Savant's picture

Until someone provides documentation that the homeowners received their property free and clear, I'm going to politely call bullshit.

Stopping a foreclosure, until proper chain of title is determined, is one thing. Ruling that the chain of title was broken, rendering the property free and clear, is quite another.

Fri, 09/17/2010 - 00:57 | 587021 Village Idiot
Village Idiot's picture

'Stopping a foreclosure, until proper chain of title is determined, is one thing. Ruling that the chain of title was broken, rendering the property free and clear, is quite another."

 

I'm not commenting on the issue of what's right or wrong here, but...in every foreclosure/short sale case I have been close to, the banks are generally ignorant, especially when they have no representation in the State they are negotiating in.  Also, I have seen banks attempt to negotiate settlements that completely overlook the borrowers legal rights so as to expedite the process of getting the property back.

Recently, I got a call from a buddy who was being asked to facilitate a short sale by his lender, Chase.  Chase, nor his agent, mentioned that my buddy would be giving up his legal right to walk away from the deficiency by allowing the sale to go through. The only way to properly dispose of the debt is for him to allow the foreclosure process to go through, not the short sale!

Long story short, he was less than 24 hours from close of escrow, and, getting stuck with a 120K deficiency bill.  No one gave a shit, and no one had a clue (or maybe they did).

OK, here's the punchline - I was so pissed that, in a classic Fight Club parry, I told him to ask Chase for the original note before the process went any further.  You know, better to read from the original contract.  If Chase can't produce the note, I've suggested that my buddy excuse the oversight...for money.

I'm not advocating that people use this tactic to try and get a free home but, borrwers should certainly use "produce the original note!" if they are feeling pressure from their lender and don't completely understand what their legal rights are.

 

The banks have no interest in what is best for you - only themselves.

 

 

 

 

 

 

 

 

Thu, 09/16/2010 - 20:57 | 586867 Trifecta Man
Trifecta Man's picture

Those excitable boys need a good spanking.

Thu, 09/16/2010 - 21:52 | 586957 wisefool
wisefool's picture

Agreed entirely. Hurst talks about his "color" and JP talks about his rail lines. It is about whether you play AJ off suited without position. "Denim my boy. That is the future."

Fri, 09/17/2010 - 02:52 | 587287 StychoKiller
StychoKiller's picture

"Bad Boys, get Spanked!"

http://www.youtube.com/watch?v=CLQ3i_XQXsw

 

Thu, 09/16/2010 - 20:04 | 586760 Getagrip
Getagrip's picture

This is so true. That's why folks have been able to stay in their homes without paying the mortgage. No one knows who owns the lien... Gotta love the process...  

Fri, 09/17/2010 - 08:06 | 587476 THE 4th Quadrant
THE 4th Quadrant's picture

I think they know who owns what. What JPM and others are trying to do here is to crook the books. Making it appear that FredFan has not foreclosed on too many properties so CNBC can report about the green shoots. You can do whatever you want when you own Madien Lane. Especially, facilitate the peaceful unwinding of assets over time.

Why not just have Madien Lane buy the toxicity from FredFan?

Thu, 09/16/2010 - 21:42 | 586877 Idiot Savant
Idiot Savant's picture

FYI - Fairbanks Capital Holding Corporation changed its name to Select Portfolio Servicing, Inc.

I wouldn't make too big of a deal out of this, it's been going on for years. If (stressed) the defendant has funds to retain counsel, the foreclosure will be invalidated. But it will be re-filed at a later date when all the assignments are in order, and Plaintiff's Original Petition is amended, to reflect the proper note holder. However, 99% of people facing foreclosure can't afford counsel.

 

Bottom line: there's no free ride and the foreclosure will eventually be validated. There's no double jeopardy in civil actions.

Thu, 09/16/2010 - 22:38 | 587040 wisefool
wisefool's picture

But how can this be mercantiled to the masses? Be'en a male an slept with the right ammount of locals but I never made a play for princess Diana. Lets say the cadre respects me but does not think 'I a threat. Can I buy a house with no money down, not pay, and pass the first five sweeps of the kings law?

Tell me the equation and I will be a professor!

Fri, 09/17/2010 - 16:57 | 588575 themosmitsos
themosmitsos's picture

Thx! As I mentioned, I haven't dollowed up in some time. Funny thing is I've heard of select portfolio, and similar allegations against them! And certainly your point is valid. And under all circumstances the borrower,as a contracted party, is obligated to his end [payment]. But so is the Lender. Courts function under a defacto assumption the lender has always met his obligations simply by providing the loan. ContiMortgage,FairBanks, & Select Portfolio have a pattern of using lender status to defraud the borrower. This materially affects the status and standing of both parties under contract against the lender and in favor of the borrower, especially when the dispute leads to the borrower's default [fu, I'm not paying late fees, or for ex, I have insurance, etc], and even more so once the Lender even under these circumstances refuses any/all attempts at resolution with the borrower. Borrower is then entitled to damages because he's being taken to court fraudulently, but this is precisely what the banks are counting on, that defendants are too stupid and poor to retain counsel and be successfully able to pursue the matter. You sound by your 2-3 sentences like you know all this though--details were for everyone else. ;)

At no point was I ever talking about the borrower getting the property for free,though I know others are [to my astonishment!--had not heard any of that!]

Fri, 09/17/2010 - 00:10 | 587146 RockyRacoon
RockyRacoon's picture

Some eye candy for the real estate aficionados here.

Some more eye candy .

Thu, 09/16/2010 - 18:20 | 586527 nmewn
nmewn's picture

Lower tranchez bitchez...LOL.

You mean you still have a right to face your accuser in court and have a discovery process?

What's this nation coming to ;-)

Thu, 09/16/2010 - 18:36 | 586570 themosmitsos
themosmitsos's picture

Remember, remember the Fifth of November,

The Gunpowder Treason and Plot,

I know of no reason

Why the Gunpowder Treason

Should ever be forgot.

 

Bitchez ;)

Thu, 09/16/2010 - 18:38 | 586575 nmewn
nmewn's picture

;-)

Thu, 09/16/2010 - 18:56 | 586618 Spalding_Smailes
Spalding_Smailes's picture

My ass still hurts from VXX. :-P

Thu, 09/16/2010 - 19:37 | 586705 nmewn
nmewn's picture

I'm still painfully holding both my ass & VXX...LOL.

It's a small position 50 shares. I have found, for myself, that I am a risk taker but not a martyr...holding a trading account keeps me from doing really stupid stuff with the bulk of my money.

The rest is cash, bonds, real estate & metals. Have some PHYS too. Any stock held in IRA's or 401's is the result of withdrawing the principal back to cash and holding what I term "free" dividend paying shares.

VXX is not an investment...it is my speculation, a gamble, that they can't prop it much longer.

Thu, 09/16/2010 - 19:54 | 586736 Spalding_Smailes
Spalding_Smailes's picture

Patience is a virtue ...

I have 250 shares not much this is my dice roll .... My "Black Swan" bet ...

Thu, 09/16/2010 - 20:15 | 586783 Getagrip
Getagrip's picture

I have 1700. Time will tell, but I think there's a little too much happy happy joy joy...

Thu, 09/16/2010 - 20:23 | 586798 Getagrip
Getagrip's picture

The lowest it can go is 10ish. The real risk is not hedging your portfolio if/when something blows up in the next month or so..

Thu, 09/16/2010 - 20:47 | 586848 Thunder Dome
Thunder Dome's picture

Better off shorting XXV than buying VXX.  Being long VXX have to pay for slippage when contracts roll.  If short XXV can benefit from the behind the scenes thievery.

Thu, 09/16/2010 - 20:07 | 586770 Getagrip
Getagrip's picture

Put a shirt on and keep buying. You'll be fine...

Thu, 09/16/2010 - 20:21 | 586794 nmewn
nmewn's picture

LOL...I said martyr not satyr.

Thu, 09/16/2010 - 20:34 | 586822 Spalding_Smailes
Spalding_Smailes's picture

Can u believe I dumped my fucking RIMM to get VXX. I miss 3% the last 3 days then the fucking thing pops 7% after the market closed today. Fuck me ... I only made 4% over 2 weeks prior... Lol'

Thu, 09/16/2010 - 20:42 | 586835 New_Meat
New_Meat's picture

you'll have another chance at a directional RIMM, small bites (sometimes each way) - Ned

Thu, 09/16/2010 - 21:02 | 586875 Dagny Taggart
Dagny Taggart's picture

Don't feel bad, I sold 4000 shares of Ford last week.... bought at $4, sold at $11 and change... still going up at $12+, lost my stomach for long plays.

Thu, 09/16/2010 - 23:05 | 587084 snowball777
snowball777's picture

No worries; you'll smile about it later.

Thu, 09/16/2010 - 22:37 | 587033 Village Idiot
Village Idiot's picture

thanks for the link.

Thu, 09/16/2010 - 22:38 | 587037 Village Idiot
Village Idiot's picture

You are welcome, buddy.  Eloquent posts, btw.  I've been following you.

Thu, 09/16/2010 - 22:48 | 587058 Spalding_Smailes
Spalding_Smailes's picture

Have you seen my rescue hybrid ?

Thu, 09/16/2010 - 22:56 | 587068 Village Idiot
Village Idiot's picture

do you want to hit me with it?

Thu, 09/16/2010 - 23:05 | 587078 Spalding_Smailes
Spalding_Smailes's picture

Just got here on vacation I hid my pills in the shaft ...

Thu, 09/16/2010 - 23:43 | 587087 Village Idiot
Village Idiot's picture

That was rich, lol. 

 

Edit: unless you are serious - in which case I feel for you.

Double Edit:  Hide it in the 1-iron. They never go for the 1-iron.

Fri, 09/17/2010 - 00:28 | 587173 Spalding_Smailes
Spalding_Smailes's picture

Village how fucked are we with housing, really how bad is it from an insider ...

Is it going to blow soon? The games are done to protect mbs ...?? Or did the whitewash of siv's like citi's 300 billion awhile back get all this cleared up?

Fri, 09/17/2010 - 01:31 | 587210 Village Idiot
Village Idiot's picture

You're talking to a front-line originator and someone who has been lucky enough to have had good timing with RE. MBS and SIV's? I'm not really qualified to give an opinion.  Personal experience tells me that if we just look at the last housing downturn*, 1989-1996, we aren't even close to this party being over. Everyone capitulated back then - no kicking the can.  If they can hold it all together until pricing power returns, good for them.  I don't see it happening.  Securitization was a wonderful thing for RE.  Slow death.

 

* Southern California

Fri, 09/17/2010 - 11:06 | 587847 kathy.chamberli...
kathy.chamberlin@gmail.com's picture

do you honestly have a 1 iron or can even hit the ball with a 1 iron. you guyz are hilarious.

Fri, 09/17/2010 - 14:56 | 588347 Village Idiot
Village Idiot's picture

That's why they never look in the 1 iron - no one ever uses it.  Old TSA trick.

Fri, 09/17/2010 - 15:54 | 588449 kathy.chamberli...
kathy.chamberlin@gmail.com's picture

my friend uses a 1 iron, f l y

what does TSA mean?

remember i am more of an idiot than you. i don't know much slang or what all the abbreviations are, used on this site. in fact i didn't know what PM's were back in january. i had to ask AM. get it, PM and AM i know those abbreviations, though.

Fri, 09/17/2010 - 08:10 | 587480 euclidean
euclidean's picture

This is beautiful, poetic even. Now main stream can promote the decreasing foreclosure rate as a sign of the turn around and the bottom of the housing market for real. Rejoice!! At least until the real impact of this article are made known.

Overcapitalising on a worthless mortgage - $150,000. USD heading to 85c on even more baseless information - Priceless!

Thu, 09/16/2010 - 17:42 | 586417 Ragnarok
Ragnarok's picture

I wonder if one day I'll log on to ZH and there will only be one post "Natural Order and Sanity Restored to the World, All is well".

Thu, 09/16/2010 - 17:46 | 586431 Conrad Murray
Conrad Murray's picture

Nice.  I wonder what the ZH crew would get into next?  Would they go about trading in the sane markets?  Would they IPO the soap company?  Perhaps they would build a spaceship and take off to save other planets in far off galaxies?

Thu, 09/16/2010 - 17:50 | 586443 Ragnarok
Ragnarok's picture

Well, the SEC will have even more time on their hands and ZH has all those servers so...... I hear Trany Porn is pretty lucrative. ;)

Thu, 09/16/2010 - 23:23 | 587106 RockyRacoon
RockyRacoon's picture

I think our government will keep us entertained for a long time to come.

Rush Limbaugh seems to thrive no matter who the hell is in power.

We can still throw spit balls at the next regime.

Thu, 09/16/2010 - 23:48 | 587136 Village Idiot
Village Idiot's picture

"I think our government will keep us entertained for a long time to come."

 

Dark Comedy.  A real budget buster.

Fri, 09/17/2010 - 00:38 | 587189 RockyRacoon
RockyRacoon's picture

I didn't say we wouldn't be seeing them behind bars, feeding them like monkeys in the zoo.  Entertainment comes in many forms.

Fri, 09/17/2010 - 01:14 | 587219 Village Idiot
Village Idiot's picture

One of my favorites is "Lockdown."

Thu, 09/16/2010 - 19:12 | 586665 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Whatchoo talkin' 'bout, Willis?

Thu, 09/16/2010 - 18:01 | 586470 Treeplanter
Treeplanter's picture

Bummer.  But we still have Johnny Muy Bravo.

Thu, 09/16/2010 - 18:20 | 586530 septicshock
septicshock's picture

Where is little Johnny?

Thu, 09/16/2010 - 19:03 | 586636 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

Hiding under the table since gold was over 1270.

Thu, 09/16/2010 - 20:46 | 586845 Spalding_Smailes
Spalding_Smailes's picture

Ya, he had diarrhea of the mouth telling me how bad of idea my RIMM trade was last thursday. Rimm up 11% since thursday, brutal s&p call, gold call last thursday night also. ..... I bet he lost daddy's money, and now hes can't use the family computer for a few weeks.

Thu, 09/16/2010 - 22:57 | 587046 Village Idiot
Village Idiot's picture

"Ya, he had diarrhea of the mouth telling me how bad of idea my RIMM trade was last thursday. Rimm up 11% since thursday, brutal s&p call, gold call last thursday night also..."

 

I was there, I saw it. 

/sarc off

Thu, 09/16/2010 - 18:03 | 586477 traderjoe
traderjoe's picture

I think it more likely that you will log on to find the Internet has been turned off in the name of national security.

I've done only a little bit of reading on the mortgage mess, but MERS and servicer-led foreclosures are a clusterf*ck. It's likely that thousands of mortgages are invalid or without the proper transfer of ownership documentation...

I wonder if a *national* refinance scheme will be used to clear title and establish mortgage ownership. Otherwise, this is something the administration, the banksters, and the Fed want to keep very quiet...

Thu, 09/16/2010 - 21:54 | 586962 wisefool
wisefool's picture

Sounds like job creation to me.

Thu, 09/16/2010 - 23:19 | 587102 Howard_Beale
Howard_Beale's picture

There have been numerous MSM stories about people avoiding foreclosure because the owner of the note could not be found. This is a new precendent but there have been others along the way to set it. It's hardly a barnburner.

Thu, 09/16/2010 - 20:18 | 586791 Getagrip
Getagrip's picture

In time...

Thu, 09/16/2010 - 20:43 | 586839 New_Meat
New_Meat's picture

This morning, there was a stoppage. 0800 ish Eastern. - Ned

Thu, 09/16/2010 - 17:47 | 586428 truont
truont's picture

I just love these local judges.  They are not beholden to the corporations like Washington is.  Any chance we can get Jean Johnson into the SCOTUS?

I'll bet Jamie Dimon just sharted in his custom tailored suit...

Thu, 09/16/2010 - 17:51 | 586445 Arius
Arius's picture

they better keep in line...otherwise....hmmm

Thu, 09/16/2010 - 23:24 | 587110 Howard_Beale
Howard_Beale's picture

Jamie Demon could give two shits. He is set, no matter what happens. The guy is a sociopath and has had that reputation for decades. As an up and comer in the early 90's he was ruthless and known to get what he wanted. Now he is the President's favorite banker and he gets the best deals from the Fed (Bear Stearns, etc).

He has a handsome and gentle manner on the Hill which keeps his critters in his hands. But the man is a monster. But he is set so what the fuck does he care? He knows it's all going to go down in flames. But any good sociopath doesn't give a shit, do they?

Fri, 09/17/2010 - 01:36 | 587244 Village Idiot
Village Idiot's picture

"But any good sociopath doesn't give a shit, do they?"

Haven't met one who does, and I have met at least two in my life.  In my adult life, I met a guy who had the good conscience to admit that he didn't have one.  It was weird.

Thu, 09/16/2010 - 17:48 | 586436 chet
chet's picture

This could be pretty major.  Mortgages were sliced and diced and signatures forged and paperwork mishandled.  With full discovery, deadbeats... sorry, I mean distressed homeowners... could find all kinds of loopholes to show that the bank doesn't actually have legal standing to foreclose.

Thu, 09/16/2010 - 18:02 | 586474 Treeplanter
Treeplanter's picture

I read where a huge number of foreclosures have no standing for lack of producing the note.  Banksters too clever by half, maybe?

Thu, 09/16/2010 - 23:25 | 587112 Howard_Beale
Howard_Beale's picture

Forgeries are a more serious issue and they keep coming up in loan docs.

Thu, 09/16/2010 - 23:40 | 587127 Village Idiot
Village Idiot's picture

forgeries by all - right down the line.

Thu, 09/16/2010 - 17:51 | 586446 tony bonn
tony bonn's picture

'"the Court finds by clear and convincing evidence that WAMU, Chase and Shapiro & Fishman committed fraud on this Court"'

good god almighty the ground is shaking beneath keyboard and feet...GOD BLESS THE JUDGE

now i hope she finds the gonads to put them jail and fine them to death.

Sat, 09/18/2010 - 00:14 | 589163 honestann
honestann's picture

No can do.  You missed that part.  The gangster banksters had the judge murdered.  This is one way they keep other judges from following the same logic or the precident.

Thu, 09/16/2010 - 17:51 | 586447 lawton
lawton's picture

The only problem I have with this and the other problems with these cases are people are just using it to keep getting free rent for another year or more. I know people down here in FL that it took almost 2.5 years to get them out since they last made a payment. I hate bankers also but I hate this freeloading when it reaches time frames like that.

Thu, 09/16/2010 - 18:20 | 586528 snakeboat
snakeboat's picture

if them's the rules of the game now, let them play.  we've all been forced to play on a very unbalanced field for quite a long time (my adult life at least).

Thu, 09/16/2010 - 21:04 | 586879 Blankman
Blankman's picture

+1,  I am thinking about going after the short sales i sold (rental properties) when i saw the beginning of this real estate mess happening.  Bastards are still trying to get me.  Word to the wise if you are thinking of short selling... DON'T!  Don't listen to the shyster real estate agents who tell you all will be well if you short sell, the banks will love you.  Been over 3 years and I still can't get a mortgage.  Had a friend who BK'd around the same time, he picked up a house on the cheap with a new mortgage from the bank a year ago.  They forgave his BK but won't forgive my short sales.  It is actually worse than a good old fashioned BK.

Thu, 09/16/2010 - 22:58 | 587053 Village Idiot
Village Idiot's picture

'Had a friend who BK'd around the same time, he picked up a house on the cheap with a new mortgage from the bank a year ago'

 

Helping your friendly mortgage lender sell the house does not start the clock on good credit, only BK does!!  And avoid chapter 13, if possible.  The clock starts when the bankruptcy is discharged!!

 

Disclosure:  I am not an attorney.

Thu, 09/16/2010 - 18:22 | 586533 Dixie Normous
Dixie Normous's picture

True on the scumbag free loaders who got into a mortgage they had no business being in, then have either been riding the no foreclosure yet train, or worse, renting to someone else (I know someone doing this now) while the house sits in limbo.

However, this is different, this is a servicer suing as if they owned the mortgage.  It's like the gas company putting a lien on your property for unpaid sewage and water bills.

Thu, 09/16/2010 - 18:26 | 586540 Augustus
Augustus's picture

It is regular and normal for the servicer to deal with the foreclosure in most situations.  The real fraud is as you note, the deadbeats got the money, live in the house, and won't send anything back to the lender.  The borrower makes no representtion that they have paid as agreed.  This is a matter of crafty lawyers aiding a slightly different form of crook.  What else is new?

Thu, 09/16/2010 - 19:13 | 586657 Rusty Shorts
Rusty Shorts's picture

Wrong, the real fraud, is the fact that there were no real funds/money/consideration, recieved by the buyers. Care to break this case down Einstien?

 

RE: First National Bank of Montgomery vs. Jerome Daly

IN THE JUSTICE COURT

STATE OF MINNESOTA

COUNTY OF SCOTT

TOWNSHIP OF CREDIT RIVER

JUSTICE MARTIN V. MAHONEY

First National Bank of Montgomery,
Plaintiff
vs
Jerome Daly,
Defendant

JUDGMENT AND DECREE

The above entitled action came on before the Court and a Jury of 12 on December 7, 1968 at 10:00 am. Plaintiff appeared by its President Lawrence V. Morgan and was represented by its Counsel, R. Mellby. Defendant appeared on his own behalf.

A Jury of Talesmen were called, impaneled and sworn to try the issues in the Case. Lawrence V. Morgan was the only witness called for Plaintiff and Defendant testified as the only witness in his own behalf.

Plaintiff brought this as a Common Law action for the recovery of the possession of Lot 19 Fairview Beach, Scott County, Minn. Plaintiff claimed title to the Real Property in question by foreclosure of a Note and Mortgage Deed dated May 8, 1964 which Plaintiff claimed was in default at the time foreclosure proceedings were started.

Defendant appeared and answered that the Plaintiff created the money and credit upon its own books by bookkeeping entry as the consideration for the Note and Mortgage of May 8, 1964 and alleged failure of the consideration for the Mortgage Deed and alleged that the Sheriff’s sale passed no title to plaintiff.

The issues tried to the Jury were whether there was a lawful consideration and whether Defendant had waived his rights to complain about the consideration having paid on the Note for almost 3 years.

Mr. Morgan admitted that all of the money or credit which was used as a consideration was created upon their books, that this was standard banking practice exercised by their bank in combination with the Federal Reserve Bank of Minneapolis, another private Bank, further that he knew of no United States Statute or Law that gave the Plaintiff the authority to do this. Plaintiff further claimed that Defendant by using the ledger book created credit and by paying on the Note and Mortgage waived any right to complain about the Consideration and that the Defendant was estopped from doing so.

At 12:15 on December 7, 1968 the Jury returned a unanimous verdict for the Defendant.

Now therefore, by virtue of the authority vested in me pursuant to the Declaration of Independence, the Northwest Ordinance of 1787, the Constitution of United States and the Constitution and the laws of the State of Minnesota not inconsistent therewith ;

IT IS HEREBY ORDERED, ADJUDGED AND DECREED:

1.That the Plaintiff is not entitled to recover the possession of Lot 19, Fairview Beach, Scott County, Minnesota according to the Plat thereof on file in the Register of Deeds office.

2.That because of failure of a lawful consideration the Note and Mortgage dated May 8, 1964 are null and void.

3.That the Sheriff’s sale of the above described premises held on June 26, 1967 is null and void, of no effect.

4.That the Plaintiff has no right title or interest in said premises or lien thereon as is above described.

5.That any provision in the Minnesota Constitution and any Minnesota Statute binding the jurisdiction of this Court is repugnant to the Constitution of the United States and to the Bill of Rights of the Minnesota Constitution and is null and void and that this Court has jurisdiction to render complete Justice in this Cause.

The following memorandum and any supplementary memorandum made and filed by this Court in support of this Judgment is hereby made a part hereof by reference.

BY THE COURT

Dated December 9, 1968

Justice MARTIN V. MAHONEY

Credit River Township

Scott County, Minnesota

MEMORANDUM

The issues in this case were simple. There was no material dispute of the facts for the Jury to resolve.

Plaintiff admitted that it, in combination with the Federal Reserve Bank of Minneapolis, which are for all practical purposes, because of their interlocking activity and practices, and both being Banking Institutions Incorporated under the Laws of the United States, are in the Law to be treated as one and the same Bank, did create the entire $14,000.00 in money or credit upon its own books by bookkeeping entry. That this was the Consideration used to support the Note dated May 8, 1964 and the Mortgage of the same date. The money and credit first came into existence when they created it. Mr. Morgan admitted that no United States Law Statute existed which gave him the right to do this. A lawful consideration must exist and be tendered to support the Note. See Ansheuser-Busch Brewing Company v. Emma Mason, 44 Minn. 318, 46 N.W. 558. The Jury found that there was no consideration and I agree. Only God can create something of value out of nothing.

Even if Defendant could be charged with waiver or estoppel as a matter of Law this is no defense to the Plaintiff. The Law leaves wrongdoers where it finds them. See sections 50, 51 and 52 of Am Jur 2nd “Actions” on page 584 – “no action will lie to recover on a claim based upon, or in any manner depending upon, a fraudulent, illegal, or immoral transaction or contract to which Plaintiff was a party.”

Plaintiff’s act of creating credit is not authorized by the Constitution and Laws of the United States, is unconstitutional and void, and is not a lawful consideration in the eyes of the Law to support any thing or upon which any lawful right can be built.

Nothing in the Constitution of the United States limits the jurisdiction of this Court, which is one of original Jurisdiction with right of trial by Jury guaranteed. This is a Common Law action. Minnesota cannot limit or impair the power of this Court to render Complete Justice between the parties. Any provisions in the Constitution and laws of Minnesota which attempt to do so is repugnant to the Constitution of the United States and void. No question as to the Jurisdiction of this Court was raised by either party at the trial. Both parties were given complete liberty to submit any and all facts to the Jury, at least in so far as they saw fit.

No complaint was made by Plaintiff that Plaintiff did not receive a fair trial. From the admissions made by Mr. Morgan the path of duty was direct and clear for the Jury. Their Verdict could not reasonably been otherwise. Justice was rendered completely and without denial, promptly and without delay, freely and without purchase, conformable to the laws in this Court of December 7, 1968.

BY THE COURT

December 9, 1968

Justice Martin V. Mahoney

Credit River Township

Scott County, Minnesota.

Note: It has never been doubted that a Note given on a Consideration which is prohibited by law is void. It has been determined, independent of Acts of Congress, that sailing under the license of an enemy is illegal. The emission of Bills of Credit upon the books of these private Corporations for the purpose of private gain is not warranted by the Constitution of the United States and is unlawful. See Craig v. Mo. 4 Peters Reports 912. This Court can tread only that path which is marked out by duty. M.V.M.

JEROME DALY had his own information to reveal about this case, which establishes that between his own revealed information and the fact that Justice Martin V. Mahoney was murdered 6 months after he entered the Credit River Decision on the books of the Court, why the case was never legally overturned, nor can it be.

Thu, 09/16/2010 - 21:23 | 586910 ChevronSky
ChevronSky's picture

I agree completely Rusty!

Fri, 09/17/2010 - 08:28 | 587504 THE 4th Quadrant
THE 4th Quadrant's picture

Me three. Thank you Rusty. Nice read.

Thu, 09/16/2010 - 21:40 | 586934 Blankman
Blankman's picture

It is amazing what can be done when you truly know how the game is played.  All credits/debts are created upon your name, no money is ever lent by the banks, it is illegal for a bank to lend its own money - that is why they lend you your own "money".

 

For those who care to read anymore:  read everything you can on the Uniform Commercial Code, that is what governs us through the use of our social sec #.  We are not free men in the court when we agree to use our ss #.  We are corporations that are controlled by the US corporation - Washington DC.  Without the use of our SS # they would resort to having to abide by the constitution, they don't want to do that.  

Thu, 09/16/2010 - 23:06 | 587089 Rusty Shorts
Sat, 09/18/2010 - 00:05 | 589160 honestann
honestann's picture

Excellent, and very on point.

Unfortunately, I doubt there is even one honest judge in the entire system today.  The key there was staying within "common law".  The instant you allow yourself to be "deemed" to be in UCC (uniform commercial code), you are TOAST... they have just made you a rights-free slave to their arbitrary whims.

The key is this.  YOU are not a "person", YOU are a real, physical, living, breathing human being.  In contrast, a "person" is a legal fiction (a type of "corporation") that the predators create and fake you into taking responsibility for.  If you do NOT allow them to fake you into establishing "joinder" with this fictional "person", you are in "common law" (I hate that term, but whatever).

The "person" has your name, except in all capital letters.  That's how they fake you into assuming that person IS you, and by that trick, you naively accept "joinder" (take responsibility for) that corporation.

But wait!!!  That "person" is a "corporation" --- a "commercial" entity... and is therefore can be (according to their twisted perversions) covered by UCC (note the middle word in "uniform commercial code").  Now, since you are wrongly defrauded into attaching yourself to that fiction, you have no individual human rights... and 99.99999% of the time you will be royally shafted.

Their scams are endless.  When they say "will the defendent rise"... if you do NOT rise, you do NOT establish "joinder" with the "person" fiction, and their case is against a non-existent entity... a piece of paper.

When they say "do you understand the charges against you?" and you answer "yes", you have been massively defrauded!!!  Why?  Because they let you believe they are speaking English... but they absolutely, positively are NOT speaking English, they are speaking "legalese".  And in "legalese", "understand" does NOT mean "comprehend", "understand" means "stand under"... which means, you agree to stand under the charges and their jurisdiction.  If you keep your yap shut, you do NOT agree to their jurisdiction, and you do NOT "consent to be governed" by those predators, who are not agents of the LAW (ie, so-called "common law" that applies to humans), but agents of the "legal society" (sometimes craftily called the "law society" to massively mislead).

Unfortunately, it is extremely tricky to avoid the endless scams and self-defined protocols that the unilaterally assert subject you to their jurisdiction.  Many places, simply walking into certain areas is a "gotcha".  Or if you stand up when some moron says "everyone rise" (you supposedly recognize their jurisdiction).  Or if you stand in certain places in the room or building.  Or if you obey, or appear to obey an order (like "take off your hat" or "sit down").  It's a freaking nearly impossible land-mine to walk through, so the best way is to get someone to speak as a friend of the court (or whatever is their local term) and explain that the similarly named living breathing human REFUSES to make "joinder", refuses to "consent to be governed", refuses to grant jurisdiction to this court or anyone here, refuses to have anything whatsoever to do with anything related to UCC because he insists upon keeping his status as living, breathing human being (actually, "man" is the term) and retain every single individual right and human right which he has.

The case you show above is wonderful, because is shows what these criminal gangster-banksters do.  They produce NOTHING, they create NON-value out of nothing and yet get fools to accept it in exchange for valuable goods, and they murder and assassinate people, judges and even several presidents of the USA for doing anything that limits their predatory practices.  ALL these cretins need to be charged, locked-up, tried for treason, murder, endless crimes against humanity, executed appropriately, and permanently hung in village squares from sea to shining sea to remind everyone for generations how a relatively small number of vicious predators enslaved the entire population of planet earth with pure, unadulterated, predatory fraud (and endless other crimes).

Thanks for posting that.

Sat, 09/18/2010 - 16:41 | 589922 kathy.chamberli...
kathy.chamberlin@gmail.com's picture

thank you for your post, as well. i learned something and printed it out for keepsake.

Thu, 09/16/2010 - 17:54 | 586454 SWRichmond
SWRichmond's picture

I'm still waiting for a fun ruling on the clusterfuck that is MERS so that I can have some fun with my "mortgage servicer".

Thu, 09/16/2010 - 23:03 | 587073 Village Idiot
Village Idiot's picture

The hubris of MERS. 

 

 

Thu, 09/16/2010 - 23:04 | 587079 Village Idiot
Village Idiot's picture

Noble Title -- The Hubris of MERS.

Thu, 09/16/2010 - 18:14 | 586457 Mac1492
Mac1492's picture

Check out this lawsuit that was just filed against cristopher cox, Mary shapiro and others....this was filed in federal court today, Mr Durden if any of these allegations are true then this is a huge fucking story....... http://viewer.zoho.com/docs/dub3df

Thu, 09/16/2010 - 18:55 | 586615 DamianMiles
DamianMiles's picture

Now THAT was a fun read.

Thu, 09/16/2010 - 23:44 | 587128 RockyRacoon
RockyRacoon's picture

No kidding, I need a nap.    $3.87T is a lotta money.

Can't wait to see how this turns out.

Thu, 09/16/2010 - 19:17 | 586655 Hansel
Hansel's picture

Wow, that is quite a lawsuit, and quite a story.  A brief summary for the lazy:

Brokers, funds, market makers, etc, sold naked short 2+ trillion shares of the company CMKM, of which there were 43 billion actual shares of the company (it was hard to follow all the shenanigans, but I think it was 43 billion).  The SEC was said to be aware of all the naked shorting, with Chris Cox saying it was the most naked shorted stock ever, and really how can the SEC not know that there were 2+ trillion shares of this company floating around.  The naked shorts were then called into a settlement by the SEC where they would pay a fine for their shorts while admitting no wrongdoing and promise to never do it again, and the SEC and DTCC would disburse the money to shareholders... only they never did.  The SEC and DTCC supposedly still have the money.

Thu, 09/16/2010 - 19:32 | 586691 Careless Whisper
Careless Whisper's picture

You forgot the part about the "offshore hedge funds, Hezbollah, and various groups in Iraq, Iran, and Afganistan."

Thu, 09/16/2010 - 19:34 | 586701 Hansel
Hansel's picture

I also left out the part about the plaintiffs wanting $3 trillion in damages, but I did say it was "a brief summary for the lazy".  :P

Thu, 09/16/2010 - 23:45 | 587130 RockyRacoon
RockyRacoon's picture

$3.87T -- but what's a few billion here and there...

Thu, 09/16/2010 - 19:14 | 586670 Rusty Shorts
Rusty Shorts's picture

LMAO, good read.

Thu, 09/16/2010 - 17:57 | 586462 bob_dabolina
bob_dabolina's picture

This judge wasn't paid off in time.

Thu, 09/16/2010 - 19:54 | 586737 defender
defender's picture

That just means that he will be offed on paid time.

Thu, 09/16/2010 - 20:09 | 586774 DonnieD
DonnieD's picture

Heart attack in his hot tub?

Thu, 09/16/2010 - 20:30 | 586815 themosmitsos
themosmitsos's picture

Oh I LIKE you .... flat tire in the rain in the mountain twisties doing 120. Reportedly he was drunk too. ;)

Thu, 09/16/2010 - 20:36 | 586824 zaknick
zaknick's picture

Whoever junked is a stupid fuck.

 

Corruption is the spirit of the day and judges are not exempt. Just look at the Supreme scum's ruling lately against democracy and the Constitution.

Thu, 09/16/2010 - 21:20 | 586905 kathy.chamberli...
kathy.chamberlin@gmail.com's picture

4 corporations.

Thu, 09/16/2010 - 18:03 | 586478 Gromit
Gromit's picture

I tend to expect stupidity and incompetence rather than fraud but maybe this time it is different.

Thu, 09/16/2010 - 18:11 | 586496 suteibu
suteibu's picture

I can just imagine these jackasses sitting in a room throwing out all kinds of ideas like this to aquire assets.  Who knows what else they have done or are planning to do.

Thu, 09/16/2010 - 18:37 | 586572 cougar_w
cougar_w's picture

If you were expecting the wheels to come off, and the Federal gov to lose it's collective mind big-time, and that law+order would devolve to whoever owned the courts, and that possession of paper would become the only record of account, and that even would need to be backed by weapons -- if you bought all that -- then making grabs now would make 100% sense. Just steal everything you can lay hands on, looting and fraud and counterfeit and every other kind of white-collar crime imaginable. Create fake representations of everything including the Constitution of the United States of America.

And then wait for the day when nobody can say it ain't so.

If you really thought the wheels were coming off, it is what you would do. And God damn to anyone who didn't like it.

Thu, 09/16/2010 - 19:05 | 586645 suteibu
suteibu's picture

Yeah...I don't doubt their motivation for it.  I see it coming, too.  What sticks in my craw is the hubris they display.

Fri, 09/17/2010 - 23:15 | 589119 honestann
honestann's picture

No, this has been repeated [possibly] millions of times over.  Finally they got caught.  Unfortunately, they'll get away with 999,999 out of 1,000,000 attempts, since attorneys (including yours) almost always defend "the system" (and big companies they'd just love to work for).

Thu, 09/16/2010 - 18:06 | 586487 trav7777
trav7777's picture

this is the recipe...lever up and don't make a payment.

The note will get dumped on FNM or FRE.  Then they will NEVER foreclose on you.  Free house.

Thu, 09/16/2010 - 20:59 | 586873 Spalding_Smailes
Spalding_Smailes's picture

To big to fail for the sheeple ..

Thu, 09/16/2010 - 23:33 | 587118 Howard_Beale
Howard_Beale's picture

And have you done this personally?

Thu, 09/16/2010 - 23:48 | 587137 RockyRacoon
RockyRacoon's picture

Anecdotal evidence, Howie.  He read that someplace.

Thu, 09/16/2010 - 18:06 | 586488 Buzz Fuzzel
Buzz Fuzzel's picture

I disagree, this is not about banks hiding excess inventory in the quietest way possible.  It is about "redistribution of wealth".  Do not look for fannie mae to step in and do the right thing.  Expect to see the "poor down troden" home owners who bought more house than they can afford to continue living in these properties rent free.

The politics of the judge are worth noting.  Jean Johnson is a former "trip and fall" trial lawyer according to the to this link: http://www.reverepublishing.com/authors/authors.html

Some how his biography failed to make it onto the list of other Duval County judges at this link: http://www.coj.net/Departments/Fourth+Judicial+Circuit+Court/Biographies...

Thu, 09/16/2010 - 18:15 | 586510 suteibu
suteibu's picture

So you'll accept fraud from the banks as long as the deadbeats are kicked out?  How about the banks stay the fuck out it and Congress forces fannie to clean up its act, including evicting the deadbeats? 

Thu, 09/16/2010 - 18:33 | 586557 Augustus
Augustus's picture

There is no fraud from the banks, despite what the looney judge has ruled.  The borrower got the funds and won't pay it back, but likes living in the house for free.  Fannie Mae never actually shows up in court on a foreclosure, the servicer always does the work, and they do get a servicing fee for that.   It would certainly be a fraud if the deadbeat didn't get the mortgage funds.  I suspect if there was an investigation it might show that the application was a bit inflated when showing the borrower's assets and income.

Thu, 09/16/2010 - 18:56 | 586617 suteibu
suteibu's picture

It's that whole misrepresenting thing.  Whether the judge is loony or not, if the story is correct, JPM stepped in front of the taxpayers to acquire this property.  Otherwise, where is the contract between Fannie and the servicer?  If it is so common, it would be reasonable to assume that this arrangement would have credible documentation to clearly define the parties.  Even a loony judge would not question JPM's right to foreclose if it was as clear-cut as you indicate.

Thu, 09/16/2010 - 19:06 | 586646 rawsienna
rawsienna's picture

Servicer forecloses on behalf of the agency.  

Thu, 09/16/2010 - 19:15 | 586672 suteibu
suteibu's picture

Why, then, would they claim in court that they were the owner?

Fri, 09/17/2010 - 23:12 | 589115 honestann
honestann's picture

No freaking way!  They have NO standing.  They are NOT parties to the contract or the loan.  In fact, nobody is, since FederalReserveNotes are unconsitutional fraud and utterly fictional.

Thu, 09/16/2010 - 18:56 | 586619 legerde
legerde's picture

The money creation process is a fraud.  Fiat money is a fraud and against the constitution which has caused a theft of my labor through inflation all of my life.

No fraud from the banks??? yah right.

 

Thu, 09/16/2010 - 19:16 | 586674 Rusty Shorts
Rusty Shorts's picture

Thank you.

Fri, 09/17/2010 - 23:10 | 589111 honestann
honestann's picture

To the point exactly, and right on dude!

The entire financial system has been 100% fraud since 1913, massively so since gold confiscation in the 1930s, whenever the predators started refusing to redeem "silver certificates", and finally the last straw in 1971 when Nixon refused to honor the last vestige of backing.

Everyone involved should be tried and hung for treason and crimes against humanity, and their dirty rotting corpses should be left hanging in every village square forever as a lesson to future scam artist predators.

Thu, 09/16/2010 - 19:04 | 586639 rawsienna
rawsienna's picture

You are correct in this case. JPM as servicer is doing what it is suppose to do when people stop paying. If you pay taxes, you are long fannie/freddie and gnma risk.  Since most mortgages are guaranteed by the government, strategic defaults hurts tax payers more than the banks.  Regardless, the law must be followed but I have no sympathy for people who dont pay their mortgage who can afford to pay - It is their legal right to walk but it is the bank or GSE or servicer of the GSE loan to foreclose. Pretty simple.

Thu, 09/16/2010 - 19:13 | 586667 suteibu
suteibu's picture

I have no sympathy for people who don't pay their mortgages at all.  I also don't have any sympathy for anyone in the mortgage industry, including originators, underwriters, brokers, and servicers.  Again, if it is so simple, where's the documentation?

Thu, 09/16/2010 - 19:11 | 586661 nmewn
nmewn's picture

Respectfully disagree here Augustus.

In my view a bunch of this crap could have been avoided had not the CRA been pushed so hard...the banks were not going to take the risk of holding garbage mortgages...so an outlet was provided, securitization...in the process as chet says above, mortgage contracts became part of bigger and bigger pies...one house may have multiple mortgages on it...who by law actually owns it? Seems they would have to prove a custody chain at least and valid, legal supporting docs for fees & services showing purchasing the mortgage from another financial entity.

It could be anyone...or multiples of anyones.

Let me be clear...(stupid ass phrase)...I have zero desire for a deadbeat to live rent free, but you would think the smartest people in the room (politicians, Wall Streeters, regulators, lawyers, bankers etc.) would have thought of this. The payments can be held in a court sponsered escrow account anyhow.

The homeowner has a right to due process, that is, who holds the contract I signed years ago and do they really wish to foreclose on me. Produce them and the document so I can ask them face to face.

This is where they (Wall Street) screwed the pooch...IMHO.

Thu, 09/16/2010 - 19:32 | 586698 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

we don't need no stinkin' custody chains or your doo-doo process!

Thu, 09/16/2010 - 20:17 | 586787 wisefool
wisefool's picture

It takes a village and some acronyms (FRE, FNM, SAE)  to emulate an Arkansas super soldier. But the reality warping of what is sex is reserved for expensive weddings.

Thu, 09/16/2010 - 23:51 | 587139 RockyRacoon
RockyRacoon's picture

Say what?  Are you using a random word generator or something?

Fri, 09/17/2010 - 00:42 | 587192 wisefool
wisefool's picture

It depends on what your definition of "word" is.

Fri, 09/17/2010 - 21:48 | 589015 RockyRacoon
RockyRacoon's picture

We probably agree on what a word is but syntax and structure seem to be lacking.

Let's not even try style.

Fri, 09/17/2010 - 23:05 | 589103 honestann
honestann's picture

You defend the vile, corrupt predators?  Shame on you!

By your logic, it is perfectly okay for you or me to file cases against anyone who is late on a payment... and collect whatever bribe/settlement they might offer to make us "go away" for a few more months.

Any company that doesn't know what it owns, should be shut down immediately for criminal negligence, and to put flailing, drooling, insane, rabid creatures out of their misery to prevent endless harm to others.

Thu, 09/16/2010 - 18:17 | 586515 Buzz Fuzzel
Buzz Fuzzel's picture

Our imperial federal government has been subsidising fraud in the housing market for the past 30+ years, how else would you expect it to end?  No sympathy for the Banks but they were probably set up on this one.

Thu, 09/16/2010 - 18:16 | 586512 wisefool
wisefool's picture

As stated many times and most clearly today nobody (china) really gives a crap about mcmansions or even 2000 sq. ft suburban homes regardless of locale. 

When countrywide, wamu and wachovia were going under they held lots of agricultural land assest. Now Citi, JPM, Wells can cherry pick lots of over leveraged productive farmland using thier enforcement divisions. Which is also the backdrop for the retreat homes of the elite. This ruckus is just to get the case law in place. Didn't work out like they thought.

 

Thu, 09/16/2010 - 18:16 | 586513 FischerBlack
FischerBlack's picture

LOL. RIMM beats, I guess we'll see a new high for AAPL tomorrow.

I'm kicking myself. I meant to buy 100 shares of AAPL at the close today, but I fat fingered it and bought 50 iPads instead. Dammit.

Thu, 09/16/2010 - 18:53 | 586517 kathy.chamberli...
kathy.chamberlin@gmail.com's picture

S L I D E

Thu, 09/16/2010 - 18:20 | 586531 Nonconformist
Nonconformist's picture

Whoever signed the paperwork for the case on behalf of JPM needs to be prosecuted.  Otherwise this kind of thing will go on forever.

Thu, 09/16/2010 - 18:31 | 586550 Dixie Normous
Dixie Normous's picture

I think this is all just a big misunderstanding.  JPM Chase is a proud American company and is witnessing firsthand what a difficult time taxpayers are having during this recession, therefore, in order to help our government and quasi-governement agencies like Fannie and Freddie clear the books, they decided to take action on OUR behalf.

I'm sure, positive really, that the lawyers were working pro bono and JPM had every intention of passing any proceeds or gains back to the taxpayer.

Thank you JPM.

Thu, 09/16/2010 - 18:57 | 586625 kathy.chamberli...
kathy.chamberlin@gmail.com's picture

you are absolutely crazy to ever say thank you JPM in any sentence around here. they are evil evil most evilest ever created. they need to burn in hell. all of them. especially "Dad what is a housing crisis", fraudster jamie peckerhead dimon.

Thu, 09/16/2010 - 19:31 | 586693 truont
truont's picture

Kathy, I share your disdain for Dimon and Lord Blankfein, who feign to do "God's work".

Many posters here employ a complex literary technique that you will get used to eventually.  Here is an article on the subject:

http://dictionary.reference.com/browse/sarcasm

Thu, 09/16/2010 - 19:39 | 586707 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Ben, I'm gonna hafta tell Jamie and Lloyd exactly what you just said about them.

(provided as an example of aforementioned literary technique)

(sometimes delimited with tag </sarcasm>, for just such an occasion as this)

Thu, 09/16/2010 - 21:26 | 586914 kathy.chamberli...
kathy.chamberlin@gmail.com's picture

got it ¿ ¿ ¿ ¿ ¿  .

i actually had a conversation with cheeky, about the sarcasm key. his question mark key has not been functioning, well, for almost a year. so he couldn't use shift+option+question mark to mark statements as sarcasm with ¿. i really miss, cheeky.

Thu, 09/16/2010 - 23:23 | 587109 Dixie Normous
Dixie Normous's picture

So we're clear. Right¿

Thu, 09/16/2010 - 18:30 | 586551 cougar_w
cougar_w's picture

Cracks showing up in the foundation. Let's see how long they can keep playing this game.

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