Tag: Foreclosure

Massachusetts Supreme Judicial Court Deciding Hundreds of Years of Real Property Law Regarding MERS

Massachusetts Supreme Judicial Court Deciding Hundreds of Years of Real Property Law Regarding MERS

By Daniel Edstrom
DTC Systems, Inc.

In Eaton vs. FNMA, the Supreme Judicial Court is asking for additional briefings to help with the following “issue”:

1/16/2012 #17

ORDER :Having heard oral argument and considered the written submissions of the parties and the various amici curiae, the court hereby invites supplemental briefing on the points described below. Supplemental briefs shall not exceed fifteen pages and shall be filed on or before January 23, 2012. 1. It has been claimed that requiring a unity of the mortgage and the underlying promissory note, in order for there to be a valid foreclosure, would cloud any title that has a foreclosure in the chain of title, regardless of how long ago the foreclosure occurred. The parties are invited to address whether they believe that such a requirement would have such an effect, and if so, what legal or practical measures exist that might limit the consequences of such a requirement. 2. It also has been suggested that, if the court were to hold that unity of the mortgage and note is required under existing law, the court’s holding should be applied prospectively only. The parties are invited to indicate on what authority they believe (or do not believe) the court could make such a holding prospective only.

Texas Ropes One In: Motion to Dismiss Denied

Texas Ropes One In: Motion to Dismiss Denied

By Daniel Edstrom
DTC Systems, Inc.
http://www.dtc-systems.net

From April Charney:

…”If the holder of the deed of trust does not own or hold the note, the deed of trust serves no purpose, is impotent, and cannot be a vehicle for depriving the grantor of the deed of trust of ownership of the property described in the deed of trust….[finding that]…inherent in the procedural steps outlined in the Texas Property Code is the assumption that whatever entity qualifies as a “mortgagee” either owns the note or is serving as an agent for the owner or holder of the note; and, the statute assumes that when a foreclosure is conducted by someone other than the owner or holder of the note, the person conducting the foreclosure will be acting as agent or nominee for the owner or holder…Otherwise, the Texas statutory law would make no sense, and would be directly at odds with long-standing, basic principles governing the relationship between real estate borrowers, on the one hand, and their corresponding secured real estate lenders, on the other.” (edited from the below decision):
JANE McCARTHY, Plaintiff, vs. BANK OF AMERICA, NA, BAC HOME LOANS SERVICING, LP, and FEDERAL HOME LOAN MORTGAGE CORPORATION, Defendants. NO. 4:11-CV-356-A December 22, 2011
 

Nevada Attorney General Sues Lender Processing Services for Consumer Fraud

Nevada Attorney General Sues Lender Processing Services for Consumer Fraud

By Daniel Edstrom
DTC Systems, Inc.

The Nevada Attorney General released the following information today:

Carson City, NV – Attorney General Catherine Cortez Masto announced today a lawsuit against Lender Processing Services, Inc., DOCX, LLC, LPS Default Solutions, Inc. and other subsidiaries of LPS (collectively known “LPS”) for engaging in deceptive practices against Nevada consumers.

The lawsuit, filed on December 15, 2011, in the 8th Judicial District of Nevada, follows an extensive investigation into LPS’ default servicing of residential mortgages in Nevada, specifically loans in foreclosure. The lawsuit includes allegations of widespread document execution fraud, deceptive statements made by LPS about efforts to correct document fraud, improper control over foreclosure attorneys and the foreclosure process, misrepresentations about LPS’ fees and services, and evidence of an overall press for speed and volume that prevented the necessary and proper focus on accuracy and integrity in the foreclosure process.

“The robo-signing crisis in Nevada has been fueled by two main problems: chaos and speed,” said Attorney General Masto. “We will protect the integrity of the foreclosure process. This lawsuit is the next, logical step in holding the key players in the foreclosure fraud crisis accountable.” Continue reading “Nevada Attorney General Sues Lender Processing Services for Consumer Fraud”

Another Giant Foreclosure Mill Shuts Down – Steven J. Baum PC

Another Giant Foreclosure Mill Shuts Down – Steven J. Baum PC

By Daniel Edstrom
DTC Sytems, Inc.

From:

http://www.businessweek.com/news/2011-11-21/steven-j-baum-pc-new-york-foreclosure-firm-to-shut-down.html

One of the largest law firms in New York State is shutting down after losing business from Fannie and Freddie.  Apparently the firm agreed to pay the U.S. $2 million and change its practices to resolve a probe of faulty foreclosure filings.

Homeowner Taxpayers are Third Party Beneficiaries of HAMP

Homeowner Taxpayers are Third Party Beneficiaries of HAMP

By Daniel Edstrom
DTC Systems, Inc.

Georgia judge provides colorful order denying motion to dismiss against US Bank.  Phillips asserts that compliance with HAMP is a condition precedent to foreclosure.

http://dtc-systems.net/wp-content/uploads/2011/11/Phillips-vs-US-Bank-Homeowners-are-3rd-Party-Beneficiaries-of-HAMP.pdf

Interagency Independent Foreclosure Review – File Your CLAIM

Interagency Independent Foreclosure Review – File Your CLAIM

By Daniel Edstrom
DTC Systems, Inc.

The following regarding the numerous Cease and Desist Consent Orders issued against servicers and others for unsafe or unsound foreclosure policies and practices is available here: http://www.independentforeclosurereview.com/

Independent Foreclosure Review

Looking for information about the Independent Foreclosure Review? Si usted habla español, tenemos representantes que pueden asistirle en su idioma.

Homeowners whose primary residence was part of a foreclosure action between January 1, 2009 and December 31, 2010, and whose home loan was serviced by a participating servicer, may be eligible for an Independent Foreclosure Review.

The Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency (federal bank regulators) have required an Independent Foreclosure Review by an independent consultant to identify eligible customers who may have been financially injured due to errors, misrepresentations or other deficiencies in their foreclosure process. If the review finds that financial injury occurred, the customer may receive compensation or other remedy.

To qualify, your mortgage loan would need to meet the initial eligibility criteria: Continue reading “Interagency Independent Foreclosure Review – File Your CLAIM”

Notice Must Provide the Name and Address of the Lender

Notice Must Provide the Name and Address of the Lender

By Daniel Edstrom
DTC Systems, Inc.

Thanks to StopForeclosureFraud.com for this gem (http://stopforeclosurefraud.com/2011/08/09/bank-of-new-york-vs-laks-nj-appeals-court-reversal-a-notice-of-intention-is-deficient-if-it-does-not-provide-the-name-and-address-of-the-lender/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+ForeclosureFraudByDinsfla+(FORECLOSURE+FRAUD+|+by+DinSFLA))

The Notice of Intention did not contain the name and address of the lender so the New Jersey appeals court reversed and remanded for entry of an order granting relief (the motion to vacate the judgment of foreclosure and dismiss the complaint without prejudice).

View this case here: http://dtc-systems.net/wp-content/uploads/2011/08/BONY-v-LAKS_Lender_Must_Provide_The_Name_and_Address_of_Lender.pdf

Title Crisis

Title Crisis

By Daniel Edstrom
DTC Systems, Inc.

If you thought this was a foreclosure crisis brought about by the Mortgage Meltdown, you would be wrong.  If this were a foreclosure crisis only those in foreclosure would be the ones having problems.  And only those loans in foreclosure would be the ones having title issues and “robo-signer” issues.  I cannot say this loud enough: FORECLOSURE IS NOT THE PROBLEM.  Homeowners not making payments is not the problem.  “Freeing up” credit to stimulate lending is not the problem.  If you didn’t get a subprime loan, and yours is a 30 year fixed, you are at risk of a clouded title almost as much as anyone in foreclosure.  In fact, if you have refinanced or purchased your house from 2000 or later, you could easily have a defect in title.  Since I am not a lawyer and can only give myself legal advice, I will only discuss my own case.  And of course these are only my opinions based on my knowledge, education, training and research.  Apparently my title company thinks my title is good.  I know because somebody asked them and they said it was good.  At the end of the article I will explain why they would say that.  What they meant to say was “Everything is great because we, as a title company, are not at risk at all based on our review of your title”. Continue reading “Title Crisis”

FTC Consent Judgment and Order against BAC Home Loans Servicing

FTC Consent Judgment and Order against BAC Home Loans Servicing

By Daniel Edstrom
DTC Systems, Inc.

Am I the only one who missed this Consent Judgment and Order against BAC Home Loans Servicing, LP (hereinafter “BAC”) and Countrywide Home Loans, Inc. (hereinafter “Countrywide”) from the Federal Trade Commission?  They seem to have put quite a damper in what they can and cannot do.  Has BAC complied with the following since this order dated June 15, 2010:

IT IS FURTHER ORDERED that, within one-hundred fifty (150) days from the date of entry of this Order, Defendants, their officers, employees, agents, representatives, and all other Persons or entities in active concert or participation with them who receive actual notice of this Order by personal service or otherwise, directly or through any corporation, subsidiary, division, or other device, are hereby permanently restrained and enjoined, in connection with the Servicing of any Loan, from failing to disclose Clearly and Prominently the following information: Continue reading “FTC Consent Judgment and Order against BAC Home Loans Servicing”