SCUMBAG COLONIAL Bank Sues State Lawmaker

Sarah Buduson
Reporter, KPHO.com

SCOTTSDALE, Ariz. — Ariz. Rep. Michele Reagan, R-District 8, is better known for fighting for new laws, but now, she is speaking about her fight against a lawsuit.

 

Reagan is being sued by her mortgage company after she questioned who owned held the note on her home. 

“It’s really scary,” she said, “I think that this really needs to be brought to light that this is happening to people in Arizona.” 

Reagan had wanted to find out she and her husband, David Gulino, could refinance their south Scottsdale home. 

“In doing research, I began to wonder if the lender even owned the note to my home,” she said. “So I sent them a letter and asked them and asked them several things. I want to know who owns my property. Am I paying the right person?” 

Soon after, Colonial Savings filed a lawsuit in U.S. District Court against Reagan and her husband. The company says the couple is trying “to rescind their home loan,” or back out on the loan. 

“We’re not interested in walking,” Reagan said. “We’re not interested in saying we’re not going to pay. We just need a little help with the interest rate.” 

“I’m current on my loan. Never missed a payment. We’ve never been late. We were sued for asking too many questions,” said Reagan. 

As a state lawmaker, Reagan said she had been hesitant to speak out about her ordeal. 

“This has now snowballed into something so much bigger and scarier than refinancing and asking who owns your note,” she said. 

With a state senate campaign on the horizon, she feared some people may get the wrong impression about the lawsuit, but she ultimately decided speaking out was the right thing to do. 

“I finally thought if this could happen to me, how many people has happened to mean to or that means it could happen to people without the resources I have,” she said. “Even with all the information that I have and all the contacts I have, they scared the bejesus out of us and that was their intent and it worked.” 

CBS 5 News attempted to contact Colonial Savings and its attorneys, but has yet to receive a comment.

 

SCUMBAG WELLS FARGO TO BE FOCUS OF OHIO FORECLOSURE FRAUD PROBE

 

Posted by Foreclosure Fraud on October 28, 2010 ·

“These people think they can play by a different set of rules.”

~

“It’s not just individuals who signed flawed affidavits. It’s a business model designed on fraud.”

~

Bloomberg

WELLS FARGO TO BE FOCUS OF OHIO FORECLOSURE PROBE

Wells Fargo & Co. will be a focus of an investigation into foreclosure practices, Ohio Attorney GeneralRichard Cordray told Bloomberg Television after the lender said it found flaws in court documents.

Wells Fargo said yesterday that it would submit supplemental affidavits to courts in about 55,000 foreclosure proceedings after finding some statements “did not strictly adhere to the required procedures.”

“These people think they can play by a different set of rules,” Cordray said in an interview today on Bloomberg Television’s “InBusiness with Margaret Brennan.” “It’s not just individuals who signed flawed affidavits. It’s a business model designed on fraud.”

Teri Schrettenbrunner, a spokeswoman for San Francisco- based Wells Fargo, said in an e-mail that none of the paperwork problems have led to foreclosures that shouldn’t have otherwise occurred and the problems aren’t related to the quality of loan data.

“We have chosen to submit supplemental affidavits out of an abundance of caution,” she said. “We intend to be responsive to General Cordray’s inquiries and look forward to addressing his concerns.”

Head over to Bloomberg to read more with video here…

No widespread problem here, right Wells?

 

Florida’s Kangaroo Foreclosure Courts: SCUMBAG Judges Denying Due Process on Behalf of Banks

IMBECILE JUDGE, LAWRENCE SCHWARTZ


Florida is ground zero of the foreclosure crisis. In addition to being one of the epicenters of the housing meltdown, it has also become the jurisdiction where local lawyers have been the most effective overall in unearthing how servicers and foreclosure mills have engaged in widespread document fabrications and use of improper affidavits to foreclose.

This abuse of contracts and legal procedures matters because the courts are the last bastion of defense of the individual. Even libertarians, who keenly oppose government mission creep, give courts an elevated role as a protector of rights.

Given the success that local attorneys are having (it has reached the point where the state attorney general’s office has opened an investigation into three so-called foreclosure mills operating in the state), pushback by the mortgage industrial complex was inevitable. The old saw about “best government money can buy” now looks to apply to the courts, the one area most people assume to be relatively free from tampering by well funded interests.

The New York Times did report on this development, but its account was such a pale version of what is happening on the ground as to give readers a distorted picture.

These new foreclosure-only courts are special creations of the Florida legislature, funded separately from the usual court system. They are manned by retired judges, which means in many cases they are not familiar with real estate law.

But perhaps most important, the explicit objective of these courts is to clear up the backlog. And that is coming to pass not by the Legislature having thrown enough resources at the problem (that is, having greatly enlarged court capacity to process more cases in parallel) but by pushing for faster resolution. The problem is that an accelerated process runs roughshod over due process and allows banks to foreclose when they may not be the right party, or worse, when the foreclosure is the result of servicing error.

Let’s look at one example of banana republic faux justice in the US, via a speech by foreclosure court Judge Roger Colton to his court on how the day was going to go. It’s simply breathtaking. He says that if the bank is foreclosing, he’s not going to consider any evidence that the foreclosure is in error (servicing errors, plaintiff can’t provide proof it owns the note, which means it might not be the right party and procedurally, means it lacks standing to take action). He says he has already heard everything, there is a lot of unemployment in the area; he is going to schedule a court date, but that is merely a deadline for negotiation. In other words, he makes it abundantly clear he has no interest in hearing evidence. When he gets to seeing a defendant after his speech to the court (p. 13), he rubber stamps what the bank wants without even considering the evidence. And apparently his entire day went like that. The summary from an attorney who was representing a client before him that day:

On 8/30, I had a Summary Judgment Foreclosure hearing on Palm Beach County’s “Rocket Docket”. The judge spoke for 14 minutes to the crowd, of mostly pro se defendants, about how they should just agree to the summary judgment and the plaintiffs, (whose attorneys (Shapiro & Fishman had a dedicated courtroom and to whom he referred to as “my attorneys”) would be gracious (Ha!) enough to allow them to stay in their homes for 120 days if needed (even though the statute says he only has to give them 30). When it came to hearing arguments which were fully briefed and provided to the court (pursuant to the instructions of the Divisions head judge) he only allowed 30-60 seconds for argument, failed to read any of the papers, failed to review the plaintiff’s foreclosure package,flatly ignored the Affidavit filed in Opposition, ignored my plea for a trial, signed the judgment and dismissed me. I never was permitted to even read the proposed judgment or to examine the “newly discovered” allonge which Shapiro’s counsel said I had no right to see.

Newly discovered allonges (separate documents with endorsements on them) are fakes; this is the new preferred method of document fabrication. Per the UCC (Uniform Commercial Code), an allonge is to be used ONLY when all the space that could be used for endorsement of a note has been used up. That means margins and the reverse side. And when an allonge is employed, it has to be so firmly attached to the original as to constitute a single document. Hence, no way can it travel separately and suddenly be discovered if it were legitimate.

If you think this case is isolated, here are some reports via e-mail courtesy Lisa Epstein, who runs ForclosureHamlet. The first is from Miami-Dade (emphasis theirs):

I went with a family member to court in attempts to stop a foreclosure sale….we were there sitting in court waiting….I heard this judge take on other cases….Regardless of their issue this judge just kept on denying every motion that he was hearing. Not even taking the time not even a minute or a second to even glance at the documents these poor homeowners were bringing to him.

People were telling him that they have been approved and/or were being considered for a modification under HAMP and that they were there to ask to have the sale of their home stopped because apparently the plaintiffs attorneys were not aware of this information. As you may all know, most of these attorneys DO NOT maintain constant contact with their clients, therefore servicers even though they may place in their system for a sale to be postponed based on loss mitigation approval, still, it doesn’t reach their attorneys in time to actually stop the sale. So homeowners are being told by the servicers to actually try and contact the attorneys because they are not able to. Unbelievable but true….

Once the homeowner left the court room the judge asked… “what is this HAMP that these people keep claiming they are approved for?” mannnnn I said to myself… “this judge must have been pulled from retirement from another part of this world, and to get put on the stand to make these decisions… the courts must really be desperate for not even taking the time to even educate them about the huge issue at hand with these foreclosures and modifications and fraudulent documents etc…. then after denying a few more cases in less than 2 minutes he said… “WOW… and i got paid to do this everyday 5 days a week?… this is easy.”

There’s is actually much more of the same, multiple instances with particulars, with the judge clearly operating from the presumption that the borrowers were all deadbeats and the sale would go forward.

This message comes from Hillsborough County:

As I previously noted, when I attended court, many many cases were missing the note and mortgage. Many of these were located later but they definately did not meet the deadline for 20 days ahead and the question is–is anyone reviewing these for fraud? My assessment is that court staff are too buried and have no training in this. I literally saw pile after pile of cases moving through the system like a Burger King window. Legitimately, the court staff can say they are overwhelmed….One could ask, how do you have a summary judgment without the note and mortgage????? I do not feel that what I witnessed was something done on purpose to hurt the homeowner. instead, I feel that the judges believe that the homeowners have not met their obligations and they still haven’t “gotten it” that lawyers could blatantly lie to the court and present false documents. But I honestly did not feel as I observed that there is some horrible conspiracy taking place. It’s more like the judges are bending over too much to assist their “work partners”, i.e., the attorneys handling the cases, to pull their cases together.

Further confirmation of the e-mailed reports comes from Mark Stopa, a Florida attorney:

When do judges decide who wins a foreclosure case? Do they evaluate each case on the merits? Or do judges see “foreclosure case” and automatically decide, in their minds, that the bank is going to win (but refrain from announcing such until entry of final judgment)? In other words, is the outcome of these cases predetermined by some judges? …

My experience yesterday, though, as outlined in this Motion to DQ Judge, makes me wonder, not about myself, but about the thousands of cases in Florida where homeowners don’t have an attorney. I strongly encourage you to read the entire Motion to DQ Judge, as it’s a matter of public record, but here’s the cliff notes version.

On August 19, 2010 at 9:30, a summary judgment hearing was set on a mass-motion calendar. My clients were pro se until just a few days prior, so the documents I filed in opposition to summary judgment had not yet made it into the Court file yet. As such, the Judge thought my clients were pro se. At or before 8:15 a.m. on August 19, 2010, the Judge entered conformed copies of a Final Judgment of foreclosure even though the summary judgment hearing was not scheduled until 9:30 a.m. that day. That’s worth repeating:

The judge entered a Final Judgment of foreclosure more than an hour BEFORE the scheduled hearing.….

At 9:30, when the hearing began, I voiced my concern about this to the Judge. She was obviously caught off guard, but it quickly became apparent to me that her “procedure” is to make conformed copies of the Final Judgment, to be mailed to the parties, prior to the hearing (and to send out those copies to all parties immediately upon conclusion of the hearing). Essentially, she’s already made up her mind before the hearing, is holding the gavel in the air, and is ready to throw it down as soon as the hearing starts.

Moreover in Florida, the public is being barred from observing these trials. In Duval County, Palm Beach County, and Hillsborough County (and this is not a full list), police are refusing entry, claiming safety issues (overcrowding) when lawyers and defendants report there are plenty of open seats. The First Amendment Foundation has urged concerned parties to write letters of protest to judges denying access, including camera access. That battle has not yet been escalated.

Contrast this rubber-stamping of these cases with the statement of the Florida attorney general: ““We’ve had so many complaints that I am confident there is a great deal of fraud here.” Representative Alan Grayson has asked the Florida to halt all foreclosures in the state pending the outcome of the investigation of the state attorney general, since 80% of the foreclosures are undertaken by three of the four foreclosure mills under scrutiny.

But don’t hold your breath. Even though the Supreme Court is preparing a response to Grayson’s, the Chief Justice, Charles Canady, is very much a corporate Republican. In other words, doing the right thing will no doubt be deemed to be too inconvenient.

Foreclosuregate: Sue The SCUMBAG Judges Who Allow Fake Foreclosures

By bgamall

 

In the Light of Foreclosuregate There Are Thousands of Bad Judges

In the light of Foreclosuregate, not so named by CNBC and the bankster crowd, there are many bad judges. In fact, the definition of a bad judge isone who fails to protect the unrepresented. Many people are being foreclosed on. And they are not being represented, as the alleged holder of the mortgage and IOU actually gets the judge to look the other way, as it is found that the servicer of the mortgage does not have the IOU. Foreclosures have been allowed by crooked judges in cases where the IOU has been lost! And why were they lost? Well, it was because of the need for companies to hide the crap loans put together in the MBS bankster scam.

So, the problem is that you have very unethical judges who are rubber stamping a foreclosure without the IOU being in anyone’s possession. There are two issues that make this a serious offense:

1. The courthouse does not have the IOU. The courthouse has a copy of the deed, but not the IOU. But the IOU is required in order to determine the terms of the loan, and the owner of the mortgage.In many cases, the IOU has been lost, and in many cases was hidden or lost on purpose in order to fool investors into buying mortgage backed securities, you know, the crap bonds that were rated AAA but that really had junk attached!

2. Since the IOU has to be registered with the trustee of the MBS at the investment bank within a certain period, Title is clouded and broken when the investment bankster wants to hide this bad loan from potential investors. As it turns out, the investment banksters never bothered to convey the documents to the trustee of the Mortgage Backed Securities in the first place. This is both mortgage and securities fraud and it breaks the Title. In reality, these trustees don’t own these mortgages because the IOU’s cannot be reconstituted.

Table of Contents

  • In the Light of Foreclosuregate There Are Thousands of Bad Judges
  • It Is Difficult to Sue Judges Without First Exposing Them
  • So How Does the UCC Code Affect Foreclosures
  • Foreclosuregate In the News
  • Foreclosuregate Information
  • Facing Foreclosure Issues? Here Are Foreclosure Resources

 

It Is Difficult to Sue Judges Without First Exposing Them

The first part of the process is to expose judges. If there is a judge that allows a phony IOU, list that judge with Caught.net or here.

Judges who are doing fraudulent things at the state level, like foreclosures, can be sued in Federal Court. It is difficult to sue a judge. And yet, perhaps a class action against judges would at least publicize their behavior so that they would be more reluctant to go along with the bankster claims of title.

However, it is possible to appeal. And people with the means who want to make the court own up to injustice can do so.

We know that Florida has a bunch of Kangaroo courts, rubber stamping foreclosures that have no clear title. Naked Capitalism Blog has been at the forefront of this exposure of judicial misconduct.

In order to buy some time for the borrower, it is time to clog the courts with paper. I advocate clogging the courts with all manner of lawsuits and motions. People need to stay in their houses as long as they can, because they have been scammed in the first place. Yes, the scam is primarily an injustice against investors, but no one can doubt that borrowers have been scammed by this process as well. Just learning about Foreclosuregate will make it clear that borrowers have been victims of a process that would have been stopped dead in its tracks had investors had access to the IOU’s showing how bad the loans were that went into the MBS’s. Investors would have stopped buying these fraudulent bonds long ago.

As it is, since these securities, the MBS’s, are fraudulent, I hope investors seek major damages from the investment banksters. That will be a start. We need to discuss whether securitization for mortgages is something that should even be permitted.

 

Squat In Your Own Home. Don’t Pay. Show Me the Note!

So How Does the UCC Code Affect Foreclosures.

First a disclaimer, this is not legal advice. This webpage does not in any way tell you how to proceed but rather gives some possible suggestions that you may be able to explore with your attorney.

So, as it turns out, the UCC Code generally requires that the proof of transfer from the lender to the investment bank can be proven. The IOU can be reconstructed if this link can be proven. There may be other laws which say title is broken, and in those cases, Title Insurance Companies may choose to hold off. But UCC requires a connection regarding transfer. This is where the banksters made a major fraud. The investment bankers who took these mortgages from the lenders never conveyed the documents. Since there was no proof of transfer, the bonds or I should say the trust for the bonds do not own the mortgages. This is major mortgage and securities fraud. This is where the court has to be careful that there are not a lot of phony documents. Congress should pass a law with serious penalties for those caught forging documents, getting fake notaries, etc. But congress was intent on doing just the opposite, as Diana Olick exposed regarding the robo signatures.

The courts that refuse to require proof of this transfer link must be exposed and their judges held up to severe ridicule. Lets hope that happens in the coming months.

Judge Ignorant of UCC Rules Against Borrower

Foreclosuregate In the News

  • Cuccinelli to join foreclosure probeRichmond Times-Dispatch6 days agoThe possible mishandling of mortgage documents has hit home. Attorney General Ken Cuccinelli said yesterday that he, along with attorneys general in the other 49 states, will look into allegations of abuse in the foreclosure process.
  • Lawmakers Increasing Heat on Servicers on the Foreclosure Front While Regulators Try to Give a PassNaked Capitalism28 hours agoAt least some legislators are taking the foreclosure crisis seriously. Representative John Conyers, Marcy Kaptur, Raúl Grijalva, and Alan Grayson wrote to Neil Barofsky, Special Inspector General for the Troubled Asset Relief Program, to ask that he investigate foreclosure fraud and conduct an audit of GMAC, Fannie, and Freddie. SIGTARP is a full fledged […]
  • Foreclosure mess just startingThe Bryan-College Station Eagle22 hours agoWASHINGTON — Big lenders are trying to move past the foreclosure-document mess, saying they’re now confident their paperwork is accurate. Yet they face so much organized resistance that they can’t just snap up their briefcases, declare the crisis …
  • Johnstown man sues GMAC Mortgage, alleges fraud in foreclosure processNewark Advocate4 days agoNEWARK — The inevitable legal response to allegations of fraud on foreclosure documents reached Licking County on Friday with a Johnstown man’s lawsuit against GMAC Mortgage and one of its employees.
  • Avoiding the ‘f’ wordDaily Sparks Tribune25 hours agoRENO — To a homeowner who is facing foreclosure, all hope might seem lost, but housing counselors are available to help.


Foreclosuregate Information

Facing Foreclosure Issues? Here Are Foreclosure Resources

Jennifer Brunner Fights The Banksters

Attorney Resources: Save the Constitution

Bad Judge List

Here are judges who have decided not to watch out for the underrepresented. Phone them and tell them to follow the law. Tell them to throw the bogus affidavits out of their courthouses! This is about due process and the validity of evidence you bad judge shills for big banksters.

W. Douglas Baird (727) 464-3233

Jack Cox (561) 355-3496

J. Rogers Padgett

Bad Attorney List:

Attorneys listed here may have violated evidence requirements and due process in courts of law. Innocent until proven guilty, but we hope they will be criminally investigated.

Steven Baum New York

David Stern Florida

 

A Good Ruling By Good Judges (At Least In This Ruling)

Arkansas Supreme Court Ruling, yet bad judges have ignored this for over a year:

MORTGAGE ELECTRONIC REGISTRATION SYSTEM, INC., APPELLANT, VS. SOUTHWEST HOMES OF ARKANSAS, APPELLEE

No. 08-1299

SUPREME COURT OF ARKANSAS

2009 Ark. LEXIS 121

March 19, 2009, Opinion Delivered

Further, under Arkansas foreclosure law, a deed of trust is defined as “a deed conveying real property in trust to secure the performance of an obligation of the grantor or any other person named in the deed to a beneficiary and conferring upon the trustee a power of sale for breach of an obligation of the grantor contained in the deed of trust.” Ark. Code Ann. § 18-50-101(2) (Repl. 2003). Thus, under the statutes, and under the common law noted above, a deed of trust grants to the trustee the powers MERS purports to hold. Those powers were held by East as trustee. Those powers were not conveyed to MERS.

MERS holds no authority to act as an agent and holds no property interest in the mortgaged land. It is not a necessary party. In [*11] this dispute over foreclosure on the subject real property under the mortgage and the deed of trust, complete relief may be granted whether or not MERS is a party. MERS has no interest to protect. It simply was not a necessary party. See Ark. R. Civ. P. 19(a). MERS’s role in this transaction casts no light on the contractual issues on appeal in this case. See, e.g., Wilmans v. Sears, Roebuck & Co., 355 Ark. 668, 144 S.W.3d 245 (2004).

Finally, we note that Arkansas is a recording state. Notice of transactions in real property is provided by recording. See Ark. Code Ann. § 14-15-404 (Supp. 2007). Southwest is entitled to rely upon what is filed of record. In the present case, MERS was at best the agent of the lender. The only recorded document provides notice that Pulaski Mortgage is the lender and, therefore, MERS’s principal. MERS asserts Pulaski Mortgage is not its principal. Yet no other lender recorded its interest as an assignee of Pulaski Mortgage. Permitting an agent such as MERS purports to be to step in and act without a recorded lender directing its action would wreak havoc on notice in this state.

Affirmed.

 


SCUMBAG JUDGE BARBARA LANE ORDERS FAMILY OF 9 TO GIVE HOUSE TO THE THIEVES…

SOMEONE NEEDS TO TELL SCUMBAG JUDGE BARBARA LANE TO EITHER RESIGN OR DO HER F****** JOB AND INSPECT ALL DOCUMENTS…

A Simi Valley family who took their attorney’s advice to disregard a court’s ruling and move back into their foreclosed home was ordered Friday by Ventura County Superior Court Judge Barbara Lane to vacate the property.

Jim and Danielle Earl and their nine children have a week from Monday to pack up and leave, according to Brian Troop, president of Troop Real Estate Inc., the brokerage company that represented the investor who purchased the property at a foreclosure sale in January.

The Earl family’s lawyer, Michael T. Pines of Encinitas, told Lane the family would move back into the home, Troop said.

“When he was ruled against he said right in front of the judge we’re going to move them back in afterwards.”

Pines does not deny the family intends to return to the house because he said the judge ordered them to leave, not to leave permanently. The judge denied a permanent injunction.

“I do not dispute the judge said they have to leave the home,” he said. “If the sheriff comes they have to leave, but they can go back in. She specifically denied them any order that they have to permanently leave.

“I would characterize it not as a vigilante but as unusual,” he said. “The banks have a very effective propaganda machine and have brainwashed everybody into thinking property owners are wrong.”

He’s urging his clients to push back against foreclosures — and the Earl family is not the only one. On Tuesday, Pines prompted an Escondido family to use force to get back into their home. On Wednesday, Pines and another client were arrested in Newport Beach for trespassing when they broke into a house there.

Asked about the Newport Beach arrest, Pines said: “We will be filing a legal action, potentially a class action, against the city, which I really regret.”

Ventura lawyer Michael Sment — the chairman of the Ventura County Bar bankruptcy section who teaches business law and real estate at Oxnard College — said he recently discussed Pines’ actions with some local judges.

“Anybody that’s experienced is pretty shocked by what he’s doing,” he said. “The attorney is not local, and I don’t know why somebody would try to offend a judge, but that’s what he’s doing.”

Sment believes the 50 attorneys general nationwide who are gearing up to probe improper foreclosure practices are the proper officials to be dealing with the situation.

“We don’t allow people to just break in and take property just because you think it’s yours,” Sment said. “If we allowed people to do that in California or the United States, we would have complete chaos and anarchy.”

The Earls used a locksmith to help retake their house Oct. 9, and the Simi Valley Police, who were there, did not intervene. But Troop hopes that won’t be the case if it happens again. Troop said he met with the city attorney, city manager and Simi Valley Police Department Friday to discuss the situation.

“They are going to be a little more proactive,” he said. “They recommended that (the investor) get a restraining order against (Pines), so they are in the process of consulting with their attorney to accommodate that.”

Simi Valley Police Lt. Roy Jones was not at that meeting but said “certainly if we’re called out to a scene we’ll do whatever’s appropriate. We’ll do our best to enforce the law impartially.”

The Earls say they are victims of robo-signers, employees and lawyers of major lenders who filed faulty paperwork by robotically signing off on thousands of defaulted loans without taking time to fully review the files.

Troop said the Earls had ample opportunity to save their home from foreclosure but had not made payments for two years.

The Earl family bought the Simi Valley house in 2001 for $539,000 with a loan originating with First City Funding, dba Credit Corp. In 2005 they refinanced with an $880,000 loan. In February, the trustee’s deed upon sale indicated unpaid debt with costs on the property just over $1 million.

The investor, Thousand Oaks-based Conejo Capital Partners LLC, spent $697,000 to purchase the house and another $40,000 to remodel it, Troop said. The two-story house in the 5800 block of Mustang Drive has nearly 4,000 square feet, six bedrooms and 4.5 baths.

Another family had scheduled to close escrow Monday and was getting ready to move in, but has since backed out of the deal, Troop said.

“They’re afraid these people will keep coming back and breaking in over and over again, and they have three small children and don’t want to put their children at risk,” he said.

– vcstar.com