The Latest Foreclosure Scandal: Default Notices

American Banker:

Last year's robo-signing scandals delayed tens of thousands of foreclosures in the 23 states where the process is handled in court. A new controversy could complicate foreclosures in the other 27 states.

Read the whole story: American Banker

Comments

[Phil Waste]

10:10 AM on 01/22/2011

Anybody going to jail? I think not. Forgery is only for the little people.

[cats530]

06:11 PM on 01/21/2011

"Because there's no court reviewing anything in nonjudicial states," abuses are "probably even more rampant," Gardner said. "This is just another example of robo-signing in a different context."

Exactly. If you are in trouble, consider contacting one of Max's BK Bootcamp grads. They know the ropes in the fight against the banksters.

[GeneralJustice]

06:07 PM on 01/21/2011

If a default notice is fraudulent...or say a foreclosure petition was robo-signed, isnt this MAIL FRAUD? Eric Holder are you too busy arresting 90 year old Italian bookies? Shouldn't Mr Holder, IN THE LEAST, be looking into this?

[arkymorgan]

05:04 PM on 01/21/2011

This is like whack-a-mole: find one problem/fraud/ripoff scheme, deal with it minimally while letting the perpetrators off the legal hook, another one pops up.

At some point, the government may finally notice that their inaction and failure to prosecute has lost them any credibility - probably not until we show up in DC with pitchforks, torches, and a lot of tar and feathers, of course.

[lightningbolt]

04:38 PM on 01/21/2011

I'm not going to get a mortgage as long as this crooked system exists.  Rampant crime in the financial sector is bad for business.  It turns customers away.

[Raccoon1]

05:02 PM on 01/21/2011

I could re-finance at a lower rate, but I won't. I have no idea what they'd do to me and apparently, no one is overseeing them. Can't do business with people I can't trust.

[lightningbolt]

04:37 PM on 01/21/2011

Since we cannot count on the government to do ANYTHING to stop this illegal foreclosure process, the people need to take the law into their own hands and refuse to leave their foreclosed house.  If they call the neighbors and ask them to sit in the house when the cops come to do the eviction, the cops will leave because they can't drag everyone out if there's too many people in the house.

[lightningbolt]

04:35 PM on 01/21/2011

Those who get foreclosure notices should fight them as hard as they can.  If they come to evict you, stay in your home and call your neighbors to come in and sit in with you.  The cops can't drag everyone out if there are enough people in the house.  Neighbors are likely to cooperate, since a foreclosure hurts them as well since their homes will be reduced in value.  This was done in Michael Moore's Capitalism: A Love Story and it worked.  The cops left without evicting anyone.

[E K]

04:33 PM on 01/21/2011

My mom is working to remod her loan, and has been working with both the bank and the Making Home Affordable program, but she also received a default notice -- it didn't apply to her, and she is still working on her loan, but they are just sending them out like clockwork anyways.

[cats530]

06:16 PM on 01/21/2011

She had better be careful. It sounds like she is in a process known as "dual track foreclosure". The banksters pretend they will modify, take every cent you have and then foreclose anyway. They make more profit from servicing a FC than they do a modification or current mortgage. Have mom read up at loansafe.org, livinglies wordpress, market ticker, 4closurefraud, foreclosure hamlet, mandelman matters.