CA Foreclosure Fraud Working Thread.

[EFerrari]

I'm spending a lot of time running down information and since other CA DUers may be in the same situation, here's a thread to pool our information.

There's a section to post news, resources and comments. If we keep the comments in its own section, the rest of the thread is easier to us.

Our story is, Mom went to her lender for a loan modification after the President put HAMP in. Chase told her, we can't help you unless you're in foreclosure. So, she went into foreclosure. She complied with all their doc requests. They lost the docs three times. They said she would qualify. They strung her out for over a year, countless phone calls and emails. Then they took her property. As I was searching for info this a.m., I read this same story over and over and all over the country. My brother was in the same pipeline and I guess they're fixing to do the same to him shortly. Argh.

[EFerrari]

1. ***************** CA Foreclosure News****************

[EFerrari]

4. Brown Demands JP Morgan Chase Suspend Foreclosures Unless It Can Demonstrate Compliance

News Release
October 01, 2010
For Immediate Release
Contact: [phone]

Brown Demands JP Morgan Chase Suspend Foreclosures Unless It Can Demonstrate Compliance with California Law

LOS ANGELES - Attorney General Edmund G. Brown Jr. has demanded that JP Morgan Chase prove immediately that it is complying with state law or, if it cannot, halt foreclosing on California homes.

"I'm taking this action to further protect California homeowners on the brink of foreclosure," Brown said, "JP Morgan Chase, like GMAC/Ally Financial, has admitted that its review of key foreclosure documents was a ruse."

"I'm directing Chase to prove it is following the law before it continues foreclosures in California," Brown added.

California law prohibits lenders from recording notices of default on mortgages made between January 1, 2003 and December 31, 2007, unless, subject to limited exceptions, the lender contacts or tries diligently to contact the borrower to determine eligibility for a loan modification. A notice of default must include a declaration of compliance with California law.

JP Morgan Chase, the nation's third largest loan servicer, has admitted that employees signed affidavits in 56,000 foreclosure cases nationwide without first personally reviewing the contents of the borrowers' loan files. As a result, those borrowers lost their homes based on affidavits the bank never confirmed were accurate.

This practice strongly suggests that any purported verification by JP Morgan Chase that it complied with California law before beginning foreclosures here is also questionable.

JP Morgan has suspended foreclosures in 23 other states that, unlike California, require a court order for foreclosures.

On Sept. 24, Brown sent a similar letter to Ally Financial, Inc., formerly known as GMAC, directing it to prove it is complying with California law or cease foreclosures in California until it can. The Attorney General's office is in contact with Ally.

Brown's letter to JP Morgan Chase is attached.

http://ag.ca.gov/newsalerts/release.php?id=1996&

[EFerrari]

5. JPMorgan Chase expands review of foreclosures(10/13)

Wed Oct 13, 4:58 pm ET

NEW YORK – JPMorgan Chase is expanding its review of foreclosures to 41 states as pressure builds on banks to answer allegations of document fraud.

The bank is now reviewing about 115,000 foreclosure cases, up from 56,000, Douglas Braunstein, chief financial officer for JPMorgan Chase & Co., said Wednesday. JPMorgan had stopped proceedings in the 23 states that require judicial review of foreclosures and now is looking into similar deals in states where there "could possibly be an issue," spokesman Joseph Evangelisti said.

The bank acted in response to evidence that mortgage lenders have used flawed court papers to evict homeowners.

Bank officials also said JPMorgan had previously stopped using the banking industry's controversial electronic mortgage tracking system for foreclosures in 2007 and 2008. The bank still uses the system, known as MERS, for other loan purposes.

http://news.yahoo.com/s/ap/20101013/ap_on_bi_ge/us_jpmorgan_mortgages_3

[EFerrari]

6. Lenders Likely to Face Class Action Lawsuits Over Foreclosures (10/13)

By Dan Levine
October 13, 2010

U.S. lenders already facing intense scrutiny from lawmakers and regulators over questionable foreclosure practices will likely face class-action lawsuits on behalf of thousands of homeowners nationwide.

Bruce Simon, a class-action attorney with Pearson Simon Warshaw & Penny LLP in San Francisco, said a filing from his firm is imminent, while two other prominent firms said they were also exploring filing class-actions.

So far, most of the courtroom activity over reports of shoddy documents used by lenders in foreclosure proceedings has come in the form of defenses mounted by individual homeowners, or limited class actions filed in state courts.

However, a lawsuit on behalf of homeowners nationwide could seek a court order that would suspend foreclosures much more broadly, class-action lawyers said.

"We are all hands on deck at the moment,'' said Simon of Pearson Simon Warshaw & Penny.


Read more: http://www.insurancejournal.com/news/national/2010/10/13/113989.htm#ixzz1JooGSBzS

[EFerrari]

7. Bank of America Halts All Foreclosures, Other Lenders Urged To Do the Same (10/8)

Mark Huffman
ConsumerAffairs.com

October 8, 2010

Bank of America, one of the nation's largest mortgage lenders, has announced that it has stopped property foreclosures nationwide. Previously it has suspended foreclosure activity in 23 states with "judicial foreclosure" laws.

California Attorney General Edmund G. Brown Jr. called on all other lenders to halt foreclosing on California homes until the banks can demonstrate that they are complying with state law.

"All lenders should halt foreclosures until they clear up this mess and ensure that the process is fair and complies with California law," Brown said. "Bank of America has taken an important step, and the other major lenders should follow its lead."


Read more: http://www.consumeraffairs.com/news04/2010/10/bank-of-america-halts-all-home-foreclosures.html#ixzz1JoopmHOX

[EFerrari]

12. FDIC: Nation Trying To Assess Foreclosure Crisis Scope

FDIC: Nation Trying To Assess Foreclosure Crisis Scope

Reuters
10/18

Financial regulators are trying to gauge the scope of improper processing of foreclosures while banks need to assess their level of risk exposure, banking regulator Sheila Bair said on Sunday.

Bair, chairman of the FDIC, said in an interview on C-SPAN's "Newsmakers" that the problems with processing foreclosures appeared to be an industry-wide practice, at least with larger loan servicers.

"I think this is really a symptom of size. It's very unfortunate," she said. "So in our backup supervisory capacity we are working with our regulatory colleagues. I think it is necessary for the regulators to go in and verify."

Last week, attorneys general from all 50 states said they were looking at allegations some banks did not properly review files or submitted false statements to evict delinquent borrowers from their homes. They are investigating accusations that lenders and banks employed "robo-signers" to sign hundreds of affidavits each day without vetting all the information.

http://www.bankerandtradesman.com/news140786.html

[EFerrari]

14. States' probe of foreclosures could force reforms (10/13)

Alan Zibel and Curt Anderson, Associated Press Writers, On Wednesday October 13, 2010, 6:09 pm EDT

WASHINGTON (AP) -- A joint investigation by every state and the District of Columbia could force mortgage companies to settle allegations that they used flawed documents to foreclose on hundreds of thousands of homeowners.

It could take months, at least, for any settlement to be reached. But legal experts say lenders could be forced to accept an independent monitor to ensure they follow state foreclosure laws. The banks could also be subject to financial penalties and be forced to pay some people whose foreclosures were improperly handled.

For banks, "the most efficient way for them to get out from under this is to settle across the board," said Kathleen Engel, a law professor at Suffolk University in Boston.

Employees of several major lenders have acknowledged in depositions that they signed thousands of foreclosure documents without reading them as required by state laws.

http://finance.yahoo.com/news/States-probe-of-foreclosures-apf-2848196739.html?x=0

[EFerrari]

15. Victims of robo-signing scandal won't get their homes back

Charles Riley, staff reporter, On Monday October 18, 2010, 11:13 am

Is this the break that millions of people have been hoping for?

Evidence continues to mount that major banks flouted their own foreclosure procedures -- and possibly the law -- when repossessing homes from owners who fell behind on payments.

And that begs the question: Can owners who were wrongfully evicted take their home back? What if a new owner has already bought the place and moved in?

That's the messy scenario that lawyers, banks and hordes of ex-homeowners are facing, after revelations that loan servicer employees might have signed off on documents without a proper review, a process dubbed "robo-signing."

http://finance.yahoo.com/news/Victims-of-robosigning-cnnm-3566100902.html?x=0&.v=5

(This article is sloppy but does spin out several scenarios.)

[EFerrari]

16. California had 21% of U.S. foreclosure filings in third quarter (10/14)

By Mark Glover | The Sacramento Bee

California accounted for nearly 21 percent of the nation's foreclosure activity in the third quarter, with 191,016 properties receiving some kind of notice, according to Irvine-based RealtyTrac.

Today's U.S. Foreclosure Market Report says there were 930,437 foreclosure filings – which include default notices, scheduled auctions and bank repossessions – nationwide in the quarter ended Sept. 30. That was a nearly 4 percent increase from the second quarter but a 1 percent decrease from last year's third quarter.

In this year's third quarter, one in every 139 U.S. housing units received a foreclosure filing.

While things seemingly improved compared with the year-ago period, housing analysts were concerned by September's numbers.


Read more: http://www.mcclatchydc.com/2010/10/14/102013/california-had-21-of-us-foreclosure.html#ixzz1K58VGFIs

[EFerrari]

17. Forclosure Law Vary State by State

At least four mortgage companies have suspended foreclosure actions while they straighten out irregularities in legal paperwork. But the halts in foreclosures aren't happening everywhere. The moratoriums primarily are in states that employ judicial foreclosure.

Each state governs foreclosures in its own way. Broadly speaking, there are two formats. In judicial-foreclosure states, all foreclosures are overseen by courts. In nonjudicial-foreclosure states, foreclosures usually are processed without court supervision.

California has both judicial and nonjudicial foreclosures, according to RealtyTrak.com.

"In judicial foreclosures, all foreclosures must go through a more traditional court process," says David Townsend, CEO of Agents National Title Insurance Co., based in Columbia, Mo. "A judge or administrative law judge must sign off on a foreclosure before the property is taken back by the foreclosing lender."

http://www.contracostatimes.com/real-estate/ci_16341016?source=rss

[EFerrari]

18. Foreclosure freeze gets cold shoulder from experts

By Alan J. Heavens
Inquirer Real Estate Writer
10/17


A nationwide freeze on home foreclosures.

Outrage over improperly examined, potentially inaccurate foreclosure documents - and the announcement last week that the attorneys general of all 50 states and the District of Columbia would mount investigations into them - seems to make one a real possibility.

Indeed, on Friday, Americans for Financial Reform, a coalition of 250 state and national groups ranging from AARP to the World Privacy Forum, called for a temporary moratorium, saying it would be wrong to "trust those who created them to self-certify correction" of the problems.

A freeze on foreclosures would certainly offer breathing room to individual borrowers battling to hold on to their homes.

But the consensus among economists and industry observers is that a state-by-state moratorium would merely prolong the current housing downturn - if not worsen it.

http://www.philly.com/philly/business/personal_finance/20101017_Foreclosure_freeze_gets_cold_shoulder_from_experts.html?page=1&c=y

[EFerrari]

25. BofA will not restart foreclosure in CA for several weeks.

Bank of America starts thaw in foreclosure freeze

By Zachary A. Goldfarb and Ariana Eunjung Cha

Washington Post
Posted: 10/18/2010 02:45:22 PM PDT
Updated: 10/18/2010 09:02:35 PM PDT

Just 10 days after announcing a nationwide halt to foreclosure sales, Bank of America, the nation's largest bank, said Monday that it would begin resubmitting paperwork on Oct. 25 to restart foreclosures on borrowers who missed their payments in 23 states.

If judges approve the new filings, the bank expects that the sales of foreclosed properties will start up once again in the states where a court order is needed to foreclose on a home.

The bank said it will continue to freeze foreclosure sales and review files in California, the District of Columbia and the other 27 states that do not require a judge's action. Reviewing its process in those jurisdictions will take several more weeks, the bank said in a statement.

But it is unclear whether the courts will accept the new paperwork. Some judges have said in interviews that they are considering throwing out entire cases and making the banks file new ones, which would be costly and time-consuming.

http://www.mercurynews.com/rss/ci_16370094?source=rss

[EFerrari]

26. Fidelity National Will Require Foreclosure Warranty

Oct. 20 (Bloomberg) -- Fidelity National Financial Inc., the largest U.S. title insurer by market share, will require lenders to sign a warranty assuring their paperwork is sound before backing sales of foreclosed homes.

An indemnity covering “incompetent or erroneous affidavit testimony or documentation” must be signed for all foreclosure sales closing on or after Nov. 1, the Jacksonville, Florida- based company said in a memorandum to employees today. The agreement was prepared in consultation with the American Land Title Association and mortgage finance companies Fannie Mae and Freddie Mac, Fidelity National said.

“It’s just the prudent thing to do,” Peter Sadowski, executive vice president and chief legal officer for Fidelity National, said in an interview. “It is important for the servicers and the lenders to represent to us and to the people we are going to be insuring that there are no problems.”

Bank of America Corp., the biggest U.S. lender, agreed to a similar contract with Fidelity National on Oct. 8, the same day it extended a freeze on foreclosures to all states amid concern by federal and state officials that lenders are seizing homes without properly reviewing documents. The bank plans to start resubmitting foreclosure affidavits next week. Attorneys general across the country have opened a joint investigation into foreclosures, saying they will seek an immediate halt to any improper practices at mortgage lenders and loan servicers.


http://www.businessweek.com/news/2010-10-20/fidelity-national-will-require-foreclosure-warranty.html

[EFerrari]

2. **************Resources for Foreclosure in CA*********************

[EFerrari]

8. CA Attorney General Public Inquiry Line

Public Inquiry Unit

Voice: [phone] or (Toll-free in California) [phone] Fax: [phone]

http://ag.ca.gov/contact.php

For Voice line: Choose English or Spanish, listen to the SEVEN options and wait for the short pause, then press "0".

[EFerrari]

9. US Comptroller's Office to lodge a complaint

(They have jurisdiction over the national banks)

Toll Free line: 800 613-6743

http://www.occ.treas.gov/customer.htm

(This won't help any one of us but if they get some calls, maybe something will shake loose.)

[EFerrari]

20. Demand to see your mortgage note:

http://action.seiu.org/page/speakout/wheresthenote

[EFerrari]

21. LInks posted by Waiting For Everyman:

http://livinglies.wordpress.com

www.4closurefraud.org

www.mattweidnerlaw.com/blog

www.mandelman.ml-implode.com

[pinboy3niner]

28. NeighborWorks America: Foreclosure Help

This site has links to connect with a HUD-approved housiing counselor, to find a foreclosure counselor near you, to connect with FDIC consumer resources for foreclosure prevention, and more:

http://www.nw.org/network/consumers/Foreclosure-Help.asp

[EFerrari]

3. **************Post Comments Here***********************

[annm4peace]

10. Thousands of stories like this. Fight back Stay in your home

If the mortgages were cars they would have been recalled.

#1. Don't keep it a secret. Tell others.. tell your friends and family. You never know who might have good advise. There is no shame in foreclosure. The bankers are the ones who should be ashamed.

Sadly the banks didn't stop foreclosures cause the were forced to.. they have the moratoriums because they have too many unsold foreclosure on the books.. they have so many they can't even auction them off.

Join others who have fight back. You are not alone. You shouldn't feel any shame. and if you don't get good answers from the people you talk to on the phone then call the next day at other time. Keep calling to get answers you need.

Do a search to see if there are organization or others that are fighting back and learn from them.
Every area is different. Here in Minneapolis, there is St. Stephens, and Habitat for Humanity. In your city it might be a different group.
there is no 1 situation..

Have a call into to the head of the bank, or have a protest outside their offices. They hate the publicity. Get your friends and family together for a call in day.



Laws and guidelines are changing all the time. Maybe last week the banks refused to refinance due to Loan to Value.. but this week rules changes so now the can.

Myth: People they won't be able to rent or to buy again. that is a myth.. there are so many people who have been foreclosed on that landlords wouldn't have people to rent to if they declined people with bad credit. And even the banks are changing the rules on borrowers who had past foreclosures.

I found a lot of info and help here: http://iamfacingforeclosure.com/blog/

http://action.seiu.org/page/speakout/wheresthenote



*** To be inspired. Check out these videos.

http://twincities.indymedia.org/2009/dec/leslie-parks-illegally-locked-out-her-home-indymacone-west-bank

[annm4peace]

22. found out a couple nights ago, a peace friend son's committed suicide

the Veteran of Peace's son was 35. he lost his job, then his home was foreclosed on. and last week he committed suicide.

since we went to war in Iraq, this Vet has worked tirelessly to help other Vets, to protest the war, and doing Counter Recruiting.

He is so sweet and compassionate. and often writes letters to the editor saying what is this war costing us?

His son's wake was tonight and tomorrow morning he will bury his beautiful 35 year old son.


And this country can't put a moratorium on foreclosures.

[carcar]

11. Stop Foreclosure Fraud

http://stopforeclosurefraud.com/

This website has lots of links to websites under Blogroll ex.: http://4closurefraud.org/ is mostly florida based, http://www.californiaforeclosurefraud.us/ and more. I also like this Florida lawyer's blog: http://mattweidnerlaw.com/blog/ . His client is the one that had her door broken down while she was there.

Just lots information on the Front Page and Popular Posts. (Countrywide/Bank of America had a class action lawsuit filed against them this week)

Also some financial websites:
http://market-ticker.org/
http://www.zerohedge.com/

[EFerrari]

13. Welcome to DU, carcar.

:hi:

[pinboy3niner]

19. Thanks for the links

And welcome to DU! :hi:

[mackerel]

23. From what I'm hearing there aren't many actual notes.

It used to be you had to have a note/stamp but apparently this all changed in about 8-10 years ago and a lot of this stuff has been done electronically.

It's near impossible to find notes on homes bought in the last 7 years. (Unless you were able to convince a lender to give you a fixed rate.)

[carcar]

24. Countrywide

Thank you for the welcome! I have been here quite a while. Just very quiet. Thanks!


Countrywide: http://4closurefraud.org/2010/10/18/the-market-ticker-and-so-it-begins-countrywide-breach-of-psa/

[GiveMeFreedom]

27. Reputable Law firms in California?

A list of law firms or lawyers in California for foreclosure help?

[EFerrari]

29. Fraudulent "foreclosure help" is becoming a real problem

so it's important to be very careful. I haven't found a list. What that leaves is going through the local bar association or getting a referral from someone you trust who has had good results. Sorry, maybe I can look further over the weekend.