Foreclosure Crisis: Banks Fake Foreclosure Paperwork (Iraq, interviews, minimum wage, illegal)

[DRob4JC]

It is amazing that this type of behavior is allowed to exist - and is being covered up. This is the type of reckless behavior that has got us into financial trouble in this country. What's really unbelievable is the government's reaction to all of this.

The Next Housing Shock - 60 Minutes CBS (14 minutes)

A breakdown of the 60 Minutes Segment with an excellent explanation (if you are not familiar) can be heard here.
Street Talk Live - 4/6 Hour 1 (http://streettalklive.com/archives/2011-04-06-hour1.mp3 - broken link) (skip 20 minutes ahead)
Street Talk Live - 4/6 Hour 2 (http://streettalklive.com/archives/2011-04-06-hour2.mp3 - broken link) (skip 6 minutes ahead)

Under piles of paperwork, a foreclosure system in chaos

The nation's overburdened foreclosure system is riddled with faked documents, forged signatures and lenders who take shortcuts reviewing borrower's files, according to court documents and interviews with attorneys, housing advocates and company officials.

Here's the cliff notes. Normally when transferring real property titles, there needs to be an actual pen & paper physical transfer. However, with the bundling of mortgage backed securities, and the amount of money to be made, banks shortcut the process and did not do paper transfers because it took to long.

So now banks have all of these foreclosures, and they are going to the homeowners about the foreclosures - but they can not prove they have the right to foreclose the property, because they have no paper.

So they got signature sweat shops to sign thousands of newly created fake documents - but it isn't working.

In Georgia, an employee of a document processing company, Linda Green, for years claimed to be executives of Bank of America, Wells Fargo, U.S. Bank and dozens of other lenders while signing off on tens of thousands of foreclosure affidavits. In many cases, her signature appeared to be forged by different employees.

Green worked for a foreclosure document company owned by Lender Processing Services. The company is being investigated by a U.S. attorney in Florida for allegedly using improper documentation to speed foreclosures.

Lenders have already started to withdraw foreclosures that had Green's name on them.




The government regulators didn't say anything while the fraud was taking place. They did speak up when the people sued the banks - and they are suggesting a bailout. Incredible.

So we got the government and the Community Reinvestment Act forcing banks to make loans to people who can afford the loans in 1997.

We have citizens who misrepresent have much they make on their mortgage paperwork.

We have financial institutions bundling and selling these bad mortgages off for profit - and in their haste to make money, short cutting the process for transferring titles - and now they are busted - and they are trying to scam their way out of this with help from the government who started this mess.

How do we get out of this mess? No more bailouts - that's for sure.

[newonecoming2]

I like your post it is the iceberg in the way of economic recovery. We are going to see the breakdown of law and order in the US over this. Because if we don't we will see the total collapse of the banking system possibly world wide. With that could come the stopping of the flow of oil.

We need to fix things quickly We need enough inflation to balance the book on those fraudulent loans. If those people that said they could pay for those houses wake up tomorrow and find that they can then the problem is kind of over we can then ignore it some more but we need to push the average wage up by 50%. To do that we would need to push the minimum wage up by 4X. To keep the economy from collapsing we would need to give everyone cash to spend when the inflation comes through.

[summers73]

This should be tagged to the discussion on why gold is worth more than land.

Your gold can't be robosigned away.

[dreamofmonterey]

Thank Chase and B of A:

The recent illegal foreclosures on veterans in Iraq and Afgahnaistan too. Funny I had to read up on it....CNN wasnt talking about it dfor some odd reason [sarc.]

Chase-Sucks.com • Index page

[Dockside]

Its not just the banks. Look what Baltimore did to this woman...I can't believe this kind of krap.

Swimming Pool Drifts Away From Homeowner | AOL Real Estate

[dreamofmonterey]

The big three. Chase B of A and ally- need to be on a hit list. Its not being talked about. CNN and local networks are whores for big business. FSTV and linktv.com are telling the real stories of court cases against banks.

In NY there are judges demanding tens of thousands of foreclosures be thrown out of court.

[buzzards27]

makes you wonder why the banks didn't hire the staff they need to process the paperwork appropriately. could it be the banks didn't want to begin hiring people because that would have helped the economy????

[ergohead]

Originally Posted by buzzards27

makes you wonder why the banks didn't hire the staff they need to process the paperwork appropriately. could it be the banks didn't want to begin hiring people because that would have helped the economy????

No - they can't find enough (any) applicants with the degree of deception they need.

I once hired a Saul Alinski graduate to fend the city off of my legal enterprise.

He demonstrated his "abilities" by showing me that he knew how to say, "Hey, I understand grease".

He was from Gary, Indiana - but that's darn tootin' close to Chicago.

[newonecoming2]

Does anybody understand just how big the problem is? The only solution is to legalize fraud. The alternative is the collapse of the entire banking system.

[HappyTexan]

Originally Posted by newonecoming2

Does anybody understand just how big the problem is? The only solution is to legalize fraud. The alternative is the collapse of the entire banking system.

The government agencies have indirectly legalized fraud and corruption.
That is why we are where we are today.

And nothing has been done to fix the problem.