Jim Hightower: Illegal Foreclosure Epidemic

[marmar]

Published on Monday, August 15, 2011 by OtherWords

Illegal Foreclosure Epidemic
Robo-signing foreclosure paperwork is a federal crime, but no bank or banker has even been charged.

by Jim Hightower


Two-year-olds often go running around the house too wildly and crash into something. They get an "ouchie" and fall down crying, but they learn from it.

That's the virtue of the "ouchie" that Bank of America, Goldman Sachs, JPMorgan Chase, Wells Fargo, and other big financiers got last year when they ran into the law after racing wildly through home foreclosure paperwork. They were caught falsifying thousands of documents and taking illegal shortcuts that were causing innocent families to lose their homes. They had to pay fines, make restitution, suspend foreclosures, and pledge to clean up their act. But at least they learned their lesson.

Oh, wait — these aren't two-year-olds. They are wily bankers, and the only lesson they ever seem to learn is that shortcuts can be profitable — as long as you don't get caught. But once again they've been caught rushing through foreclosures, using the same old scam called "robo-signing."

To foreclose on someone's home, an authorized bank employee must sign the foreclosure document, swearing that the facts in it are true. But that requires hiring people to review each case. To avoid that cost, they take an illegal shortcut by signing the name of someone who has not read the document and might not even exist. ............(more)

The complete piece is at: http://www.commondreams.org/view/2011/08/15-6

[Donnachaidh]

1. kick and Rec! n/t

[Sarah Ibarruri]

2. We need more than one CEO in jail. nt

[Hassin Bin Sober]

3. It just amazes me how the courts will let banks take property without the legal paperwork.

They seem to have the attitude of "well, you know you owe the money so too bad". Sadly, we see that attitude here from some DUers.

If I walked in to my bank today and asked to "withdraw" $50,000 I "know" I have on deposit but had no record of, the bank would laugh me out the front door and probably have me arrested.

I've spent twenty plus years in consumer finance (10+ in auto F&I and 10+ in mortgages). My biggest fear, when handling contracts, has always been losing original notes AND having a simultaneous dispute with a customer.

Paperwork gets lost or mis-signed or spoiled - it happens all the time. Customers usually have no problem re-signing. But have a dispute with a customer and, at the same time, need signatures for a lost note, you are screwed blue and tattooed. It happened to me a few times in the car business - it usually costs money or costs the house a deal.

NEVER would I try and cash a copy contract or, worse yet, forged contract.

Guess I needed better lawyers... and faith in a pro-business crooked court.



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[Shagbark Hickory]

4. Does anybody know if this is happening in other countries?