By David Dayen
If you know about foreclosure fraud, the mass fabrication of mortgage documents in state courts by banks attempting to foreclose on homeowners, you may have one nagging question: Why did banks have to resort to this illegal scheme? Was it just cheaper to mock up the documents than to provide the real ones? Did banks figure they simply had enough power over regulators, politicians and the courts to get away with it? (They were probably right about that one.)
A newly unsealed lawsuit, which banks settled in 2012 for $95 million, actually offers a different reason, providing a key answer to one of the persistent riddles of the financial crisis and its aftermath. The lawsuit states that banks resorted to fake documents because they could not legally establish true ownership of the loans when trying to foreclose.
This reality, which banks did not contest but instead settled out of court, means that tens of millions of mortgages in America still lack a legitimate chain of ownership, with implications far into the future. And if Congress, supported by the Obama administration, goes back to the same housing finance system, with the same corrupt private entities who broke the nation’s private property system back in business packaging mortgages, then shame on all of us.
The 2011 lawsuit was filed in U.S. District Court in both North and South Carolina, by a white-collar fraud specialist named Lynn Szymoniak, on behalf of the federal government, 17 states and three cities. Twenty-eight banks, mortgage servicers and document processing companies are named in the lawsuit, including mega-banks like JPMorgan Chase, Wells Fargo, Citi and Bank of America………………………
full article at source: http://www.salon.com/2013/08/12/your_mortgage_documents_are_fake/
By Thomás Aengus O Cléirigh
To all mortgage holders in Ireland this article should inspire you to contact your bank and demand a total review of all you mortgage documents and If you are in trouble it would be advisable to have the conveyancing documentation checked, as a good solicitor pal of mine has told me that quite a lot of mortgages do not have the proper paperwork because the banks were in such a hurry to finalize the mortgage transactions and in many cases they took “undertakings” from the other side to send on the proper paperwork and in most cases this never happened because of holdups from other parties engaged in other transactions !At the very least get your bank to prove that they are the owners of the debt!
So we have here a cascading effect, hence a lot of mortgages are in fact not legally binding! This doesn’t take into account the shady practices of the corrupt bankers themselves, knowingly pumping up property prices to gullible homebuyers and then the same banks now telling the same homebuyers that their homes are worth less than half what it was only a few years ago but the hapless mortgage holder must still pay the full price as the banks dismiss any share of responsibility! What a great system for the corrupt banks! Looking at the latest headlines in the property market in Dublin we are again been subjected to the spin that the property prices have turned a corner and we are on the Up and Up and |UP again,
“Happy days are here again”
and all is well so get on the property ladder now
Now who do you think is behind this engineered recent uptick in the Dublin property market?
There is no property market in Dublin or elsewhere the market is totally manipulated by the vested interests, stay away! With 65,000 people leaving the country every year who do you think is going to buy these overpriced shoeboxes again??
When are we going to see the gangsters in the Banks brought to justice and when are we going to see all their political backers exposed and brought to the people’s justice ?????