This is only a Preview!

You must Publish this diary to make this visible to the public,
or click 'Edit Diary' to make further changes first.

Posting a Diary Entry

Daily Kos welcomes blog articles from readers, known as diaries. The Intro section to a diary should be about three paragraphs long, and is required. The body section is optional, as is the poll, which can have 1 to 15 choices. Descriptive tags are also required to help others find your diary by subject; please don't use "cute" tags.

When you're ready, scroll down below the tags and click Save & Preview. You can edit your diary after it's published by clicking Edit Diary. Polls cannot be edited once they are published.

If this is your first time creating a Diary since the Ajax upgrade, before you enter any text below, please press Ctrl-F5 and then hold down the Shift Key and press your browser's Reload button to refresh its cache with the new script files.


  1. One diary daily maximum.
  2. Substantive diaries only. If you don't have at least three solid, original paragraphs, you should probably post a comment in an Open Thread.
  3. No repetitive diaries. Take a moment to ensure your topic hasn't been blogged (you can search for Stories and Diaries that already cover this topic), though fresh original analysis is always welcome.
  4. Use the "Body" textbox if your diary entry is longer than three paragraphs.
  5. Any images in your posts must be hosted by an approved image hosting service (one of: imageshack.us, photobucket.com, flickr.com, smugmug.com, allyoucanupload.com, picturetrail.com, mac.com, webshots.com, editgrid.com).
  6. Copying and pasting entire copyrighted works is prohibited. If you do quote something, keep it brief, always provide a link to the original source, and use the <blockquote> tags to clearly identify the quoted material. Violating this rule is grounds for immediate banning.
  7. Be civil. Do not "call out" other users by name in diary titles. Do not use profanity in diary titles. Don't write diaries whose main purpose is to deliberately inflame.
For the complete list of DailyKos diary guidelines, please click here.

Please begin with an informative title:

Foreclosure sign
Think foreclosure fraud is a thing of the past? Think again. This local story out of Georgia suggests that it's alive and kicking veterans in the ass. Atlanta's Channel 2 Action News has been investigating claims from "dozens of veterans who are fighting to save their homes from foreclosure" about predatory practices from big banks, potentially targeting veterans for mortgage modifications because they have insured VA loans.
Army veteran John and his wife, Lydia, said their hell started after they applied for a home loan modification.

"I was not in foreclosure. I wasn't behind in my mortgage," Smith said. "They were the ones who insisted I apply for a loan modification."

Smith said Chase Bank told him the modification would take 45 days, but instead it took two years. He said during the process, Chase told him not to pay on the mortgage.

"And one day, all of a sudden, I started getting papers in the mail that it was $1,600 for three months, and then $20,000 for the next," Smith said.

Air Force veteran Richard Leder had a similar experience with Citi Mortgage.
"I was told to go delinquent by Citi Mortgage over the phone," Leder said. "They didn't put it in writing."

Leder said he knew he'd have to pay eventually, so he set the money aside. Still, the bank foreclosed on his home five months later.

Robert Thompson, an attorney working with other veterans who've been the victims of similar predatory lending schemes, believes that homeowners with VA loans are specifically targeted because those loans are insured. The banks can sell off the mortgages that they've forced into delinquency, and still get to keep the insurance money.
"So they sold the loan, so they're not owed any money. They will collect the money from reselling the house, and they'll collect the insurance from the face value on the house to start with. So that's doubling and tripling their money off the veterans and the government and the taxpayer," Thompson said.
In the Smith's case, Chase has submitted their claim to the VA, and the VA has paid the amount that Chase sold the mortgage for, and beyond that could collect upwards of $100,000 in fees of of the VA loan. That VA insurance money these big banks are getting? That's taxpayer money. That's being funded by us.

Is this going to be enough to send a bankster to jail?


You must enter an Intro for your Diary Entry between 300 and 1150 characters long (that's approximately 50-175 words without any html or formatting markup).

Extended (Optional)

Originally posted to Joan McCarter on Wed May 08, 2013 at 12:20 PM PDT.

Also republished by Daily Kos.

Your Email has been sent.