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View Diary: The Moral Rot of America, the Well Has Been Poisoned. (143 comments)

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  •  Yes, the post office certification (6+ / 0-)

    of my most recent request arrived today. Previously they had fobbed off my requests for this information with claims that the investors' wished to remain anonymous. And at that time I didn't think it mattered much. Now it appears that it may matter a great deal.

    The frog jumped/ into the old pond/ plop! (Basho)

    by Wolf10 on Thu Oct 28, 2010 at 05:21:40 PM PDT

    [ Parent ]

    •  Wow, that should tell you everything... (3+ / 0-)
      Recommended by:
      jlynne, bablhous, Wolf10

      Amazing...

      they cannot provide the note?  guess what?  they have no legal recourse...

      Modern-day home mortgages have been so sliced and diced by rapacious financiers that some homeowners are successfully delaying -- or even blocking -- foreclosures through the simple tactic of demanding that banks produce the original mortgage note, which amazingly enough is often not so easy for them to do.

      As the foreclosure rate continues to set new highs, a little-noticed legal provision that requires bankers, if challenged, to prove they hold the original mortgage documents before getting possession has spawned a minor homeowner rebellion, alternately called "produce the note" or "show me the note". For homeowners trying desperately to keep their homes, the tactic is one way to buy some time -- and maybe even get the upper hand on the lender.

      "You wouldn't imagine that the lenders would be that slovenly that they would not be able to produce adequate documentation of the debt," said House Financial Services Committee member Rep. Brad Miller (D-N.C.). "But apparently a lot of times they really have been unable to."

      Since North Carolina has begun to provide legal assistance to homeowners facing foreclosure, Miller said, roughly one of every three mortgages has been found to have some substantial legal discrepancy.

      The fouled-up paperwork or other lack of legal compliance "has resulted in a much higher rate of negotiated [mortgage] modifications" in North Carolina, said Miller. "It gave the homeowner additional defenses and counterclaims that strengthened their hands substantially."

      The chaos is a sign of how far the mortgage business has come since people commonly took out a mortgage from their neighborhood banker, who kept the relevant documents locked away until the house was sold or paid off. During the securitization boom, millions of mortgages were sold and packaged into bonds -- often many times over, metastasizing into esoteric financial instruments -- for sale to investors. Each time, the paperwork should have been changing hands and the homeowner should have been notified that someone new held the note. But just as deciphering the true holder of the mortgage has become more and more difficult for homeowners -- Is it the servicer? Investor? Trustee? Original lender? -- the paperwork has also become difficult to track.

      http://www.huffingtonpost.com/...

      Go look for it Wolf, and don't give up.  

      ShowMetheNote.com

      Ms. B.

      •  Read this at your leisure, (3+ / 0-)
        Recommended by:
        jlynne, bablhous, Badabing

        its from the letter I sent to Chase. Not included is the latter part which I cut and pasted from SEIU's wheresthenote web site.  Cheers and may you too find fulfillment at your bank.

        Chase Fulfillment Center
        PO Box 469030
        Glendale, CO  80246-9030

        Re: Contemplated Withholding of Payment on Loan  #88888888 &
        Request for Investor Identity

        To Whom It May Concern:

        I hope the person reading this letter is someone other than one of the numerous inexperienced and inadequately trained persons that the banks have been hiring of late to handle such matters.

        Inspired by the examples of the Mortgage Bankers’ Association, which defaulted on its $79 million mortgage in Washington D.C., Morgan Stanley Bank, which walked away from several of its recently purchased buildings in San Francisco and, no doubt, a good number of other financial institutions run by Wall Street geniuses, I am considering a default or withholding of payment until certain issues are clarified and resolved. In spite of the adverse effects such action will have on my credit rating, other considerations force me to conclude that I just can’t keep making these payments without jeopardizing my financial future and personal wellbeing. But before taking this step I want the opportunity to deal directly with the investor rather than rely on the bank as intermediary.

        Your letter of June 02, 2010 indicates that the investors in my securitized mortgage have declined to modify my loan based on a net present value calculation indicating that they will be able to foreclose upon the property and then sell it for about as much as I owe. I believe the calculation to be overly optimistic, particularly in light of the continued fall in home prices.

        Added to this, it now appears that bank servicers cannot in many cases actually identify mortgage investors, thus making foreclosures difficult and more costly, if not ultimately impossible.  Given this state of affairs and your bank’s refusal on several occasions to put me in contact with the investors so that I might directly negotiate with them, I strongly suspect that your bank has not been truthful in representing to me that it has indeed acted as a responsible intermediary in this matter. If this is the case, you may have violated your legal responsibility to the investors and if so, I will be happy testify on their behalf should they bring suit against your institution. Feel free to pass that on to them. Or better yet, comply with my demand for documented proof of their identity and I will do so myself.

        In addition to what one may read in the news, my suspicions as regards your bank’s ineptitude and dishonesty regarding this matter are amplified by my own direct experiences in dealing with you over the fourteen months between my application for a modification and the denial of same. My paperwork was on several occasions misplaced with two departments insisting that I should be dealing the other and vice versa; for two months you erroneously informed me that I had qualified for a modification; you then misplaced my full and timely payments and falsely reported to credit agencies that I had not made payments for several months when in fact I’ve never missed or have been late on any payment. Because of this I lost a ten thousand dollar line of credit with another company. For a time I received harassing phone calls from a collection agency employed by your bank.

        The frog jumped/ into the old pond/ plop! (Basho)

        by Wolf10 on Thu Oct 28, 2010 at 06:29:28 PM PDT

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        •  I'm beginning to feel like the only borrower (2+ / 0-)
          Recommended by:
          Badabing, Wolf10

          in the Country whose mortgage wasn't sold off and sliced and diced.  When foreclosure comes for me, it will at least be quick, I guess.

          "Rules must be binding. Violations must be punished. Words must mean something." President Obama in Prague on April 5

          by jlynne on Thu Oct 28, 2010 at 08:27:25 PM PDT

          [ Parent ]

          •  Or, they'll more readily and (2+ / 0-)
            Recommended by:
            jlynne, Badabing

            effectively negotiate. Cheers!

            The frog jumped/ into the old pond/ plop! (Basho)

            by Wolf10 on Thu Oct 28, 2010 at 09:26:41 PM PDT

            [ Parent ]

            •  Doubtful. (2+ / 0-)
              Recommended by:
              Badabing, Wolf10

              Even now, there is enough equity to pay them off - just nothing left for me.  :(

              "Rules must be binding. Violations must be punished. Words must mean something." President Obama in Prague on April 5

              by jlynne on Thu Oct 28, 2010 at 09:34:20 PM PDT

              [ Parent ]

              •  Just wait awhile, that may change; (1+ / 0-)
                Recommended by:
                jlynne

                I'm in the same situation.

                My dilemma is whether or not to put more work and money into the house and bet that I can break even in the spring if I sell. This is complicated by some health problems so I'm seriously toying with the notion of just saying screw it, life's too short. On the plus side, whether I live or die, my other assets, pension, 401k and life insurance are beyond the reach of my creditors, so fukkem. Cheers

                The frog jumped/ into the old pond/ plop! (Basho)

                by Wolf10 on Fri Oct 29, 2010 at 05:48:47 PM PDT

                [ Parent ]

                •  strangely enough (1+ / 0-)
                  Recommended by:
                  Wolf10

                  I got an offer from Chase today to refi to drop the interest rate a full point.  I can't qualify because I'm unemployed, but I thought it was kind of funny that they wanted to keep my loan so bad they were willing to basically just drop the interest rate at no cost to me.  Little do they know that when the 401K money is gone, so is my ability to pay my mortgage.

                  "Rules must be binding. Violations must be punished. Words must mean something." President Obama in Prague on April 5

                  by jlynne on Fri Oct 29, 2010 at 10:34:23 PM PDT

                  [ Parent ]

                  •  Is it feasible to bail before your (1+ / 0-)
                    Recommended by:
                    jlynne

                    401k money is gone? It is my understanding that such assets are exempt from claims by creditors. Also, you may wish to secure a rental before defaulting so that your credit rating will still look good.

                    The frog jumped/ into the old pond/ plop! (Basho)

                    by Wolf10 on Sat Oct 30, 2010 at 01:56:40 PM PDT

                    [ Parent ]

                    •  Bailing isn't an option, period. (0+ / 0-)

                      If I can't make my mortgage payment, I can't make rent either, and I have far too much invested in this place to walk.  I just need a steady income . . . me and everyone else around me.  ;)  

                      A 401K account is exempt from creditors, but once you cash it out, it's just money in the bank.  

                      "Rules must be binding. Violations must be punished. Words must mean something." President Obama in Prague on April 5

                      by jlynne on Sat Oct 30, 2010 at 08:20:08 PM PDT

                      [ Parent ]

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