Foreclosure Fraud: Who Owns Your House? Where’s the Note?

October 16, 2010

(ChattahBox US News)— The Service Employees International Union is sponsoring a website to help homeowners protect themselves from fraudulent foreclosures, by providing an easy online form to request that their mortgage lender produce the original note. Who Owns your house? Do you really know which bank or mortgage company holds the original note for your property? It turns out that the banks don’t know either. During the years that Wall Street sliced and diced your mortgages and repackaged them into bonds to be resold over and over again, the bank notes didn’t make the trip into the void of exotic instruments. So, now that the banks are foreclosing on these homes, they don’t have the legal authority to do so. Why? They don’t hold the original note. And they know it. That’s why the major banks hired a crop of so-called “robo-signers” to hurriedly sign off on the avalanche of foreclosure documents before their fraudulent practices came to light. Well, now the gig is up and as the light shines brighter on these sleazy big bank scammers, their greed begins to look more like criminal activity.

The SEIU is warning consumers that in this current wild west mortgage environment, big banks can’t be trusted to follow the rules. To protect yourself from being thrown out of your home illegally, homeowners should “Demand to see your mortgage note,” advises SEIU.

“The Wall Street banks’ foreclosure system is a mess. Their total disregard for mortgage laws and standards is what created the foreclosure epidemic in the first place. Now, their total mismanagement is catching up to them. As of today, some of the largest mortgage lenders – JPMorgan Chase, Bank of America, and GMAC (now called Ally) – have been forced to halt foreclosures in 23 states and growing. We can’t rely on Wall Street banks to follow basic rules. We have to hold them accountable. At very least, they must provide the mortgage notes.”

The widespread foreclosure fraud is so out of control that there have been instances of banks foreclosing on a house that didn’t have a mortgage. And in one case, a frightened homeowner called 911 when a strange man broke into her home to change the locks. He was from the bank and the homeowner’s mortgage was not even in foreclosure.

“When Wall Street banks securitized, packaged, sold, and resold our mortgages, they created a system where it is often impossible to figure out who actually owns mortgage notes and therefore has the authority to foreclose on properties. But the big banks are getting tangled up in their own web. Recent events have exposed a handful of banks that are throwing families out of their homes even though they don’t have the mortgage note that proves they actually have a legal right to do so. There have been instances of two banks trying to foreclose on the same home, and in at least one case, of a bank trying to foreclose on a house where the homeowner had never even taken out a mortgage with anyone in the first place.”

“Whether you are facing foreclosure, have an underwater mortgage, or are just a concerned homeowner, it’s important that you contact your bank and demand to see the original note on your mortgage. It only takes a few minutes using our free online tool.”

The online form allows you to choose your lender from a list and compose a letter demanding to see proof of your note.

As of today, only three of the top five mortgage lenders are temporarily halting foreclosures until they can review the validity of their documents. Ally Financial and Bank of America are examining their documents for errors in all 50 states. JPMorgan Chase is only halting foreclosures in the 23 “judicial states” that require the courts to approve the foreclosures. But Wells Fargo and Citigroup are holding firm, even though their documents are also in question.

Many of the bank’s fraudulent foreclosure practices and illegal affidavits came to light from the online publishing of damaging deposition testimony of “robo-signers” taken by a few enterprising attorneys.

Many of the eye-opening depositions can be found at the website 4closurefraud.org.

Photo Source: Wikimedia Commons/Flickr-respres/Sign of the Times


Comments

16 Responses to “Foreclosure Fraud: Who Owns Your House? Where’s the Note?”

  1. Foreclosure Fraud: Who Owns Your House? Where’s the Note? – ChattahBox | Baton Rouge Foreclosures on October 16th, 2010 2:33 pm

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  10. Donna on October 17th, 2010 12:16 pm

    Letter to Wells Fargo Spokeswpman Vickee Adams,

    Dear Ms. Vickee Adams,

    In your recent Wells Fargo’s press release, you declared that “”Our records show that Wells Fargo’s foreclosure affidavits are accurate, When the company finds employees that don’t follow procedure, it takes “corrective action.”

    That’s a lie. I can say for a fact that Wells Fargo made us fraudulent mortgage loan and foreclosed my home based on hugely inflated and fraudulent appraisal and refused to correct its mortgage fraud.

    Wells Fargo teamed up with its attorneys and spent last 4 years in Nevada courts
    defending its appraisal and mortgage fraud.

    Wells Fargo and its attorneys knew it’s Category C Felony to make mortgage loan based on fraudulent appraisal.

    Wells Fargo and its attorneys knew it’s Category C Felony to foreclose home based on fraudulent appraisal.

    Wells Fargo chose to violate the law and chose to defraud us.

    Hold Wells Fargo Accountable! Save American Dream! Restore banking integrity.

    Please sign the Petition at http://www.wellsfargomortgagefraud.com. Let our voice be heard!

  11. Robert L. Stone on October 18th, 2010 9:32 am

    Dear Chattahbox:
    Your lively account of the Mortgage Morass is unusual and helpful in that it emphases that the banks have systematically engaged in criminal fraud on the courts. It was not a mysterious epidemic of mass sloppiness. If you or your readers are interested in further explanation about why the banks did what they did, why the fraudulent mortgages cannot be fixed, and what that means for homeowners, please visit my website: http://www.theforeclosrefraud.com. -Robert L. Stone, RobertLStone@yahoo.com.

  12. fred on October 18th, 2010 12:34 pm

    ear All:
    Please pay close attention to a recent california published opinion, Malkoskie v. Option One Mortgage Corp., 188 Cal. App. 4th 968, 2010 Cal. App. LEXIS 1658 (Cal. App. 2d Dist. 2010; which upheld a stranger with no assignment of the note and deed of trust, to foreclose and evict, when the trustor stipulated to possession

    The complaint meticulously laid out the fact, (and the Court recited same in its summary of the case) that Wells Fargo had no standing to foreclose or evict due to the fact that the assignment of the note it received from Option One was void due tot he fact that Option One received its assignment four months AFTER the foreclosure and TWO month after the eviction……rather than focus on the standing issue the Court claimed the seminal issue was an irregularity of the sale ( a trustee without a power of sale foreclosed) which was cured by the stip for posssession,,,,,,,,,,In essence in californian if yhou don;t ow the note YOU CAN FORECLOSE as long as you are willing to perjure yourself in a verified UD complaint.

    There are rules for trustors BUT no rulesfor strangers without standing…they now can foreclose in California due to the “largesse” of Div* of the Second District Court of Appeals…………………{PLEASE NOT TWO JUSTICES,jUSTICE GRIMES AND BIGELOW OF THE THIS COURT ARE UP FOR REAFFRIMATION IN THE NOVEMBER ELECTION….GET RID OF THEM!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  13. J Glenn Lowe on October 29th, 2010 2:26 am

    EVERYONE TELL OBAMA TO CRASH THE BIG BANKS NOW!

    Big Wall Street Banksters created the Foreclose Economy because they are that greedy and “Too Big to Care” about the American Dream and basic Contract Law. It was done by design and with treasonous and willful intent strictly for power and profit.

    The Illegal Securitized Mortgages that became the death blow to our economy actually bet on the foreclosure of the homeowner for as much as a 30 times return on investment. This is true financial terrorism. It is actually better for the investor to foreclose than to help someone stay in their home.

    Want to know how easy it is to fix this problem? Crash all of the Big Banks now and fund local banks only that serve to enrich local economies only. Look at the example of the state owned banks in North Dakota, whose population has only a 4% unemployment rate.

    The Fed and their complicit banks must be abolished to save the Republic!

    It’s the only thing we can do. CRASH THE BIG BANKS NOW “Too Big Too Fail” apparently means “Too Big To Succeed” and “Too Big for their own Wallets”

    The sooner the better. Why don’t we ask a 3rd grade math student what he thinks? The real problem is that a politician who could do something about it has his own mathematical challenges about healthy economies. “Bite the hand that feeds him” (by indicting Banksters), or make millions putting children in the streets for power and profit.

    Apparently ALL politicians are going to make the same choice over and over again. They have always sold the souls of your children and their future and they always will. Take the big Banksters out of the picture. Build a local banking system that cares about its community and helps it thrive instead of sucking the life out of it by bribing and fixing the entire system for itself, taking us all of a cliff with it.

    Crash all the big banks now. Create new local Banks only = No more Wall Street Banksters.

    Problem Solved! J Glenn Lowe

    Die Banker Die – A Tribute to the Wall Street Banksters that suck the life from all of us and our economy just to get a nice Christmas Bonus – http://www.youtube.com/watch?v=YGFZ1Jj3ui8

  14. kris on January 4th, 2011 11:57 am

    Your artical mentions a free online form / tool one can fill out to send to their lending institution. I did not see alink for this.
    Thank you

  15. Sue on January 4th, 2011 1:47 pm
  16. Pat on January 28th, 2011 9:29 pm

    I used the seiu form seeking proof that my lender,(Bank of America) is in possession of the note. Their response. “You cite no legal authority that supports your claim that you are entitled to view the original Note, and we are not aware of the existence of any such authority. Accordingly, BAC Home Loans respectfully declines this request. If you wish to pursue this matter further, please provide such legal authority.”
    They did enclose a copy of the original note.

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