T Nation

Widespread Mortgage Fraud Uncovered


Anyone else hear about this? There's some pretty shady shit going on with quite a few of the mortgage foreclosures going on right now across the country.

More Foreclosure Mess Updates: 20% of Florida Cases Have Problems, Including Phony Court Summons; JP Morgan â??Fesses Up to GMAC Type Problems

Bank of America Halts Foreclosures in 23 States; Connecticut AG Asks State Courts to Suspend Foreclosures for 60 Days

Bank Of America Joins JPMorgan And Ally In Admitting It Never Validated Foreclosures Docs


I recently went through the mortgage process (not a foreclosure or short-sale thank God).

Isn't it ironic that banks rush the foreclosure process but drag their feet unmercifully on new mortgages or refis. I chose a bank that I had been doing business with for, uh, 20 years, thinking it would be easier. They STILL put me through the wringer. I had to provide all kinds of info THEY ALREADY HAD. NO ONE ON THE PLANET knows more about my finances (including me) than these guys. When I finally lost my patience and cried uncle, their response was...."We've very sorry, but there are a lot of dishonest people out there and we have to be very careful, with the new regulations and all."

They are all scumbags. And yes, my bank is one named in the articles posted. My mission now is to pay the f*&@king mortgage off in record time so these guys don't get one more dollar of interest than they have to. Heathen and thieves.

Rant over.


Yeah, the banking system is fundamentally a pyramid scheme. Theft through inflation.
I doubt you're going to pay any less interest by paying faster. Any money paid beyond your monthly dues probably go to paying off ALL of the interest on the term BEFORE it goes toward your principal.
Check your mortgage agreement.


Symptomatic of the Great Collapse that is happening as we speak.

Silver is above $22, gold above $1300. The dollar is down 11% in the past 2 months. The stock market has one of the lowest yields in 100 years and is overvalued by at least 45% (using historic averages) and will soon collapse too.

The Greatest Depression since the post-Revolutionary War Depression is in progress.


for anyone that wants to keep track of this mess:



Any mortgage I've seen has prepayment going towards principal. I've never heard of what you are referring to (prepayment of all interest first) and quite frankly, that sounds quite illegal to me.


One thing to keep in mind: In every type of economy there have been both winners and losers. The task is to stay on the winning side, no matter what happens.


It's not really "fraud." It's crappy paperwork and members of my profession ginning up lawsuits because the doctors have run out of money.

No one really doubts the money is owed and mortgagors are behind.

What is happening is the "i"s are not dotted and "t"s not crossed because the system wasn't built to actually handle more than 1% or less foreclosures --- it's now handling 20% or so.

But, hey, the rules are strick. The burden of proof is on the mortgage company to prove it.


It seems that in a lot of cases they cant because they did not transfer the title properly_


And it wonâ??t matter if a particular caseâ??or even most casesâ??were on the up-and-up: It wonâ??t matter if most of the foreclosures and evictions were truly because the homeowner failed to pay his mortgage. The fraud committed by the foreclosure mills casts enough doubt that now, all foreclosures come into question. Not only that, all mortgages come into question.

People still havenâ??t figured out what this all meansâ??but Iâ??ll tell you: If enough mortgage-paying homeowners realize that they may be able to get out of their mortgage loan and keep their house, scott-free? Shit, thatâ??s basically a license to halt payments right the fuck now. Thatâ??s basically a license to tell the banks to fuck off.

The House and the Senat voted to repair this and fuck all homeowners retroactively, but Obama does not sign it, at least not untill the election.


I haven't done this with my mortgage but with other types of loans I've wanted to pay off quicker I've made specific payments that are applied to the principle(seperate from the regular monthly payment). I mark these payments "apply to principle only".


Yves Smith breaks down this situation pretty well in this 10 min clip:


This is nothing more then them going after people who didn't dot the I and cross the T. This is just trying to hold back the massive foreclosurer crisis that is striking again until after the election.

And what happens if you move all this back on the banks balance sheet? Get ready for another tax payer bailout.


When you sign an affidavit stating that you have reviewed the paperwork and its accurate--and you have not reviewed the paperwork and don't know whether its accurate--with the intent that the court rely on your affidavit for the purpose of inducing the court to grant you a foreclosure, that is fraud.


Yup. Sometimes there are prepayment penalties you have to be aware of too.


This shit is getting serious. By that I mean there could possibly be enough action from the bottom to force the fed govt actually aknowledge that the financial sector is made up of fraud, although I'm not holding my breath.