As the Republic slides off the Empirical Bread & Circus Show abyss - massive acts of fraud become more and more visible to us. What we have here is a "Fraud-Doc" foreclosure factory. My prediction on this is that the Lobbyrats will bribe the Empirical Bread & Circus Rats (Congress) to turn a "TBTF (Too Big To Fail) law passing trick" allowing banks to conduct "No-Doc" forecloses which will supersede the "Fraud-Doc" foreclosure factory that we just uncovered.
"Homeowner" gets post card from bank - bank gets property.
[In keeping with the FSN editorial guidelines I have, to the best of my ability, transcribed parts of Grayson's YouTube and because this is a timely piece of news that I want to get out quickly I have paraphrased sections.]
"I’m Congressman Alan Grayson and I represent central Florida, an area hard hit by the foreclosure fraud crisis. Foreclosure fraud can effect anyone. Whether you have a mortgage are paying on time, have income or not.
The average foreclosure hearing in a Florida court is only 90 seconds. Mistakes are common and fraud is rampant. Everyone is familiar with dealing with a big bureaucratic institution. What has happening is that these big bureaucratic loan servicers are charging fees inappropriately, refusing to talk to homeowners by putting their calls through to call centers in India and then foreclosing with forged documents. Once the homeowner has been drained of all assets and even the will to fight.
There is one set of rules for the banks and another set of laws for everyone else. A servicer can ask for fees, it can demand payment, it can send you to one of those call centers in India and it doesn’t have to negotiate. And you now have virtually no rights as the homeowner," says Grayson in the video.
Here are 4 bizarre examples.
First, last summer... Grayson goes on to explain how Jason Grodensky bought a house - with cash, and got foreclosed upon by BOA. Grodensky had NO mortgage on the property.
Grayson did a wonderful job, but left some voids that I'll fill in: In July Grodensky learned that the home had been stolen, transferred to a government-baked lender. He was scared, and asked, “How did some attorney put thought a foreclosure illegally?”
In 2008 Countrywide Home Loans filed a foreclosure on this property against the fomer owner. BOA took over Countrywide in 2009+/-. Grodensky later bought the home, with his father, and paid cash by doing a short sale. Grodensky’s cash was wired to BOA.
Second: He describes another house who had 2 foreclosure suits bought against it because the banks didn’t know who had title of the house.
Third: Another victim with a perfect payment record was foreclosed on because of a $75.00 dollar contested late fee.
Fourth: A predatory lender threatened to sue a couple if they didn’t sign a refinance agreement, their loan went from $1,900.00 a month to $5,300.00 a month with required forbearance fees in the 10’s of thousands of dollars. The servicer refused to accept payments and insisted on a loan modification. Instead of modifying the loan they began foreclosure proceedings and did so using fraudulent documents.
Grayson then goes onto explain that the lenders cut costs when Wall Street wanted loans quickly and for cheap. They cut record keeping. They violated laws with respect to filing with the county clerk as to who owned what mortgage.
Grayson explains, “Instead banks simply digitized mortgage titles into a privatized system called MERS, Mortgage Electronic Registry System. It did the transfers by trading Excel spreadsheets among the banks and trusts. Rather than endorsing the notes as required by their own contracts, by state real estate laws and by the IRS rules.”
Grayson goes on to explain that MERS has 60 million properties, 60% of the mortgages in the USA. 97% of loans were from 2005-2008.
Since they didn’t take the legal steps necessary to own the note they lack the legal right to foreclose in 45 out of 50 states.
He continues to explain that since the banks don’t want to grapple with foreclosures they have hired foreclosure mill law firms. “Whose business is to forge documents showing or pre-porting to show that they have a legal right to foreclose.”
He then shows examples of “Robo-Signers” peoples whose names appear on thousands of affidavits. Grayson reveals “Lender Processing Services” a company that provides attorneys with documents they need. “LPS than has document mills where they can magically make an authorized vice-president of whoever you need and send you backdated signed documents saying that you have the right to foreclose.”
You can clearly see that Tywanna Thomas doesn’t exist or she is severely schizophrenic and has at least 3 personalities - all with very different signatures.
In one case Grayson says that the firm forgot to list the assignee so “Bogus Assignee” was left on the template and filed with the court.
Grayson continues, “This is a factory of fraud.” “Servicers don’t make money through routine servicing, it is a break even business, they make their money on foreclosures at ,000.00 for each foreclosure though their fee.”
“...Its Rampant lawlessness. Fraud is now big business.” “And is sanctioned in part by the government as both Frannie May and Freddie Mac are shareholders in MERS.”
My Rat Pack series better explains how these rats operate in packs: Part I, Part II.
Congressman Grayson's video is here. For the record I was a huge Grayson advocate until he voted for Healthcare and then I lost respect for the man who goes after the Fed but wants money from the Fed. I do have to give credit where credit is due and Grayson deserves credit for this fine work.
It'll be interesting to see what bribes Lobbyrats deliver for the Bankrats and to watch what tricks the Empirical Bread & Circus Rats turn for them. So far, here is what the Johns have paid to date, proving that it IS the oldest profession out there.
In Summary: My faith in the 5Gs: (G*(religious edit)d, Gold, Guns, Grub & The Government Will Continue to Screw It Up) remains strong.
