Tag Archives | Mortgages

Major U.S. Banks’ Checks Sent To Homeowners Bounce In $3.6 Billion Improper Foreclosure Settlement

improper foreclosureHere’s fair warning that if Bank of America, Citibank, Goldman Sachs, HSBC, or Wells Fargo illegally foreclose on your home, the piddling compensation check sent to you a few years later may bounce when you attempt to cash it. Via ABC News:

A bunch of big banks agreed to a $3.6 billion legal settlement a few months ago to halt a review of improper foreclosures, in which banks’ law firms fabricated and robosigned documents.

Under the settlement, checks will be sent to more than 4 million homeowners who lost their homes to foreclosure in 2009 and 2010.

The first wave of checks was sent Friday. And, according to the Federal Reserve, at least some of them bounced. The Fed phrased it this way: “Some early recipients of checks informed the Federal Reserve’s consumer helpline on Tuesday that they were told their checks could not be cashed.” The Fed says the problem has been solved.

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Elizabeth Warren’s Foreclosure Settlement Bombshell: Banks Determined the Number of Victims of Their Own Foreclosure Frauds

via Wall Street on Parade

elizabeth warren

There is only one thing more Kafkaesque than the ongoing Wall Street frauds and that is watching a live United States Senate investigation of a diabolical settlement the banks themselves concocted to repay the victims of their own fraud. Such was the case yesterday when Senators Sherrod Brown, Jack Reed, and Elizabeth Warren grilled regulators from the Office of the Comptroller of the Currency and Federal Reserve along with outside consultants over allowing banks to hand pick the consultants to do their foreclosure reviews, negotiate confidentiality agreements with them and pay them directly.

Hundreds of millions of dollars in checks from the Foreclosure Review settlement will start going out today, eventually topping $3.6 billion in the cash portion of the settlement, and yet it was revealed during yesterday’s Senate hearing that it was the actual banks that engaged in the illegal foreclosure actions that tallied up and classified their wrongdoing under various degrees of harm; deciding themselves how many people would receive $300 and how many $125,000.

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Obama, Housing and the Next Big Heist

Picture: The Truth About (CC)

Mike Whitney writes at Counterpunch:

For those who missed President Obama’s latest giveaway to the Bank Mafia, we’ll repeat what he said here. This is an excerpt from Tuesday’s State of the Union Speech:

“Part of our rebuilding effort must also involve our housing sector. Today, our housing market is finally healing from the collapse of 2007. Home prices are rising at the fastest pace in six years, home purchases are up nearly 50 percent, and construction is expanding again.

But even with mortgage rates near a 50-year low, too many families with solid credit who want to buy a home are being rejected. Too many families who have never missed a payment and want to refinance are being told no. That’s holding our entire economy back, and we need to fix it. Right now, there’s a bill in this Congress that would give every responsible homeowner in America the chance to save $3,000 a year by refinancing at today’s rates.

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Homeowners Foreclose On Negligent Banks

Via CNN, in areas of the United States hit hardest by foreclosure, turning the tables on banks who turn deadbeat after repossessing homes:

Since the housing bubble burst in Florida five years ago, more than 400,000 borrowers have had their homes foreclosed on by their lenders. But for some, it’s payback time.

Hundreds of homeowners and condo associations are foreclosing on banks that have failed to pay dues and other expenses on the properties they’ve repossessed. When banks foreclose on a home they become responsible for paying fees to the homeowners association — both any unpaid fees going back as far as 12 months and all expenses going forward. In many cases, however, banks are failing to pay, leaving these associations short on cash, according to Miami-based attorney Ben Solomon. Now, homeowners groups are putting liens on the properties until banks pay up and foreclosing on them if they don’t.

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Woman Sues 12 Of The World’s Largest Banks Over Libor Rate Manipulation

In short, the pillars of finance are accused of illegally boosting Libor at the start of each month in order to inflate the interest rates (based on Libor and calculated at the beginning of the month) paid by as many as 100,000 mortgage holders, in what would seem to be the bilking of a pretty immense sum of money, CNBC reports:

A pensioner whose home was repossessed is taking on some of the world’s leading banks in the first known class-action lawsuit claiming that alleged Libor manipulation made mortgage repayments for thousands of Americans more expensive than they should have been. The subprime mortgages of Annie Bell Adams and her four co-lead plaintiffs were securitised into Libor-based collateralised debt obligations and sold by banks to investors.

The class action, filed in New York, alleges that traders at 12 of the biggest banks in Europe and North America – including Barclays, Bank of America and UBS – were incentivised to manipulate the London interbank offered rate to a higher rate on certain dates on which adjustable mortgage interest rates were reset.

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Whistle-Blowing Financial Website Screwed Over by Wells Fargo

Via ML-Implode:
ML-Implode.com discovered in the course of its normal banking activities that Wells Fargo had frozen its bank account with no warning. Upon inquiring at the local branch (which had no direct knowledge of the incident), it was discovered the account had been flagged “credit risk”, and slated to be immediately closed. These actions are more than slightly unusual because ML-Implode’s account was a plain checking account and was not an underwritten account. In fact, ML-Implode paid a monthly fee for the account, so Wells Fargo was certainly doing it no favors. While the site is effectively insolvent (due to the impact of multiple frivolous libel suits from corrupt mortgage, e.g. by the outlawed Grant America scheme) and thus typically had a minimal balance, there had been no problems with overdrafts and all charges and obligations were always dutifully covered...
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21st Century Folk Art: Foreclosure Quilts

quiltsQuilts often contain symbolic worlds reflecting aspects of the broader community or society. Artist Kathryn Clark creates “foreclosure quilts”, which are based on maps of cities, with holes representing foreclosed homes:

From 1999 to 2004, I worked for a private urban planning firm designing New Urbanist neighborhoods throughout the US. In 2007, as foreclosures began to occur I questioned my work. Did I add to this in some way? I was aware early on that these foreclosures were just the beginning of something bigger yet I felt alone when I mentioned it. Few agreed with me or seemed concerned.

It was important to me to present the whole story in a way that would captivate people’s attention and make a memorable statement. Making quilts seemed an ironic solution. Quilts act as a functional memory, an historical record of difficult times.

The quilt is pieced together using patterns of neighborhood blocks taken from RealtyTrac maps.

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Bank Of America Now Suing Itself In Foreclosure Cases

4501651351_6540d48316_nIn the latest phase of the foreclosure crisis, our nation’s biggest banks have reached a Zen-like state in which they resemble snakes eating their own tails, reports Forbes:

Here’s a sign of just how big and messy the foreclosure problem is: Bank of America has sued itself at least nine times in April.

That’s what lawyer and fraud expert Lynn Szymoniak discovered recently during a search for foreclosure filings in Palm Beach county Florida.”There are likely at least 100 examples of the same thing happening across the state,” Szymoniak says. “The company is literally seeking damages from itself in order to foreclose on the condo owner.”

“We are servicing the first mortgage on behalf of an investor and we own the second mortgage,” said Bank of America spokeswoman Jumana Bauwens [in regards to one case].

bankofamerica

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Can’t Pay Your Mortgage? Turn Your House Into An Ad

The latest manifestation of the broken housing market and the thousands of homeowners who can’t afford their mortgage payments is an eye-grabbing advertising scheme from marketing company Brainiacs From Mars. If you let them paint your house like this…

brainiacsfrommarshome

… they’ll pay you up to $2,000 a month. Here’s the deal:

We’re looking for houses to paint. In fact, paint is an understatement. We’re looking for homes to
turn into billboards. In exchange, we’ll pay your mortgage every month for as long as your house remains painted.

Here are a few things we’re looking for. You must own your home. It cannot be rented or leased. We’ll paint the entire outside of the house, minus the roof, the windows and any awnings. Painting will take approximately 3 – 5 days. Your house must remain painted for at least one month and may be extended up to a year. If, for any reason, you decide to cancel after one month or if we cancel the agreement with you, we’ll repaint your house back to the original colors.

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Top Foreclosure Firm’s Homelessness-Themed Halloween Party

homelesssqSometimes Halloween costume choice can offer an interesting window into people’s mindsets. Via the New York Times:

The law firm of Steven J. Baum, which is located near Buffalo, is what is commonly referred to as a “foreclosure mill” firm, meaning it represents banks and mortgage servicers as they attempt to foreclose on homeowners and evict them from their homes. Steven J. Baum is, in fact, the largest such firm in New York; it represents virtually all the giant mortgage lenders, including Citigroup, JPMorgan Chase, Bank of America and Wells Fargo.

A former employee recently sent me snapshots of last year’s party. In an e-mail, she said that she wanted me to see them because they showed an appalling lack of compassion toward the homeowners — invariably poor and down on their luck — that the Baum firm had brought foreclosure proceedings against. When we spoke later, she added that the snapshots are an accurate representation of the firm’s mind-set.

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