Faces Of Foreclosure

True story.

Homeowners received notices January 18 and 29 from Wachovia saying home loan is being considered for HAMP modification and stating it will not be sold as long as it is under review.

It was sold on January 18.

The home is owned by a mother/daughter; the mother is going through chemo for cancer right now.

I suggested to the young woman that she call the bank immediately. She did.

Wachovia representative said: “Oops, we’ve never seen anything like this happen before.”

Really? Liar. We see it all the time.

Through a local non-profit, we will file a complaint with HAMP on her behalf.

If you are in California and if you are in a position to get a modification through Wells Fargo/Wachovia, please read the following.

Even if they do agree to work with you, they will likely start with a three-month forbearance period. A word of caution: Even when that starts, you will have to stay on top of them. They will screw up, probably by losing your paperwork. They will blame it on you and, as a result, they will try to deny a modification agreement, thus the importance of keeping copies and sending everything registered/certified.

As soon as you pay your second month forbearance payment, request a copy of the permanent modification offer; they will try to get out of it. You won’t believe it, but I’m not going to let you go into denial of how botched it all is. It is worse than you could possibly imagine. America is in fact in trouble financially and big banks such as Wells Fargo are part of the problem.

When you make your first payment of the forbearance, send a letter confirming that to Wells Fargo, along with a receipt, and copy bank regulatory agencies such as:

• President Obama, WhiteHouse.gov; 1600 Pennsylvania Ave., NW, Washington, D.C. 20006
• If you are in California: Governor Edmund G. Brown, State Capitol Building, Sacramento, CA 95814
• Federal Trade Commission, Consumer Response, 600 Pennsylvania Ave, NW, Washington, D.C. 20580
• Office of Thrift Supervision, 1700 G Street, NW, Washington, DC 20552
• Your local senators 
• Your local Better Business Bureau
• Your local newspapers

My story: After a year of “negotiations,” Wells granted me a forbearance agreement in December 2009. I paid January/February/March and then it became totally screwed up for months.

If I did not keep accurate records I would not have my home. (That’s my binder on the right — 6 inches thick, 20 pounds, 22 pages of single space types notes indicating who said what to whom during this process.)

AFTER I started paying the forbearance agreement, it took from April 2010 to December 2010 for Wells Fargo to finalize the agreement; I have 10 pages of single-spaced notes during that period alone indicating glitches made by Wells! Excerpts from those notes follow. YOU will need to stay on top of it. The lenders have undertrained staff dealing with processes new to them that they don’t understand and don’t want to follow, and from executives who are larcenous on an international level.

I learned a new concept today from a investment research firm relating to this . . . the average American is in denial about the severity of our nation’s finances because it has never happened to us before. We just can’t believe it so we have tunnel vision.

A sample timeline starting with the 3-month forbearance period:

• April 2010:  Meeting w/Wells Fargo to discuss modification. Five times during that meeting they said they had missing paperwork. Because of that huge binder I had with me, I was able to pull out the appropriate paperwork and give them a copy to duplicate. In addition to showing them the paperwork, I was able to supply either a receipt from Kinko’s indicating when it was FAXed and received or a copy of my FedEx receipt indicating when it was received by Wells Fargo.
• January-March, 2010: Forbearance payments made. They did NOT offer a permanent modification.
• April 26, 2010: Attended meetings Wells Fargo had in Oakland and brow-beat them into signing a modification agreement with me.
• May 2010: Modification Agreement received in the mail from Wells with incorrect amounts — interesting to note tha tthe modification agreement was dated April 22, thereby predating the April 26 meeting with them.
• June 29, 2010: No statements received reflecting new terms.
• July 19, 2010: Notices on front door saying Wells wants to talk with me.
• July 19, 2010: Fed Ex delivered a package from Wells with NEW blank modification agreement. I called Wells to see what is going on. Was told that my loan is an “unconverted brokerage account,” and the modification had not been approved. Bottom line is that they did not want to honor the signed agreement.
• July 23, 2010: Letter from Wells saying I was in default, that the modification agreement they signed was not “approved” on their end. I met with two attorneys who verified that the document I have will hold up in court, so I told Wells to back off.
• July 24, 2010: My calls/issues could only be dealt with by one person — an “executive specialist” in the Office of the President. Works for me.
• July 29, 2010: First payment under this agreement sent w/USPS tracking system. They received in July 31, but had not applied it as of August 1.
• August 13, 2010: They tried telling me again that the modification was “moving through settlement right now.” I again reminded them that I have a modification agreement that will hold up in court.
• Phone calls on August 31, September 6, 13, 17 to straighten them out.
• October 9, 2010: 10:31 a.m., Melissa Slater called. Account is in “escrow analysis.” Seems they did not account for taxes and that is why there are discrepancies in the figures. They made a mistake (another one). Account is showing $2609.65 due instead of $2567.76 due. It is also showing that the October payment is still due – it is not.
• November 17, 2010: Still inaccurate. Executive said that 11/02 payment was not applied, she did not know why. She then said it was applied to the wrong account.
• December 1, 2010: Mortgage statements are finally accurate.

I didn’t think anyone could be in worse shape than the U.S., but the crooks that are crippling America will bring Ireland to her knees — Spain is expected to follow on Ireland’s heels. Neither government has sufficient funds to bail out these poor people. Ireland has been bandied about so much during the centuries that this is painful to read, particularly for someone with Irish heritage.

Excerpts from International Living:

In short, the mother of all real estate and banking bubbles has imploded. The Irish government guaranteed the entire financial system’s liabilities. The extent of banking losses is breathtaking. Losses will be in the region of two to three years’ worth of the country’s total tax take.

Official statistics tell us that real estate prices have fallen by 40%. This is misleading. It hides the fact that there is no liquidity . . . no buyers whatsoever in many cases. To find a buyer you may have to drop prices by 70% or more. And if you do find a buyer, chances are the sale will fall through anyway. Financing is almost non-existent.

Let me give you an example of how bad things are. Earlier this year I met an old friend for lunch in a Dublin hotel. He just bought a new home in central Dublin. He paid $1 million. His neighbor paid $2.5 million for the same house a couple of years ago.

To clear unsold inventory of new apartments on the outer reaches of Dublin’s commuter belt, developers now need to cut prices to the $96,000 to $110,000 range. This is a fire sale. The list price on the same units would have been much higher—somewhere in the $274,000 to $356,000 range.

Before taking the plunge you need to understand the foundations that Ireland’s real estate market sits on.

In September 2008, fearing a run on the banks, the government guaranteed all deposits and liabilities of Irish banks. This put Irish taxpayers on the hook for every bad loan made and every bond issued.

After guaranteeing these loans, the government created a “bad bank” called NAMA (National Assets Management Agency). Years—maybe even decades—of inventory are now in NAMA’s hands. We have no idea what NAMA will do with it. Will NAMA offload at fire sale prices? Whatever it decides will have a dramatic impact on the market.

Foreclosures (or repossessions as they’re called in Ireland) are rare. The legal process for foreclosures is difficult. And the banks are worried about the bad publicity. But this situation may not last. This means that even more inventory could come on stream on top of excess supply. If it does, there will likely never be a level of demand that will meet current supply levels.

We all know by now that mortgage lenders can’t lose on those loans no matter what, don’t we?

However, I have not been able to do the math — it makes my mind reel. So these wonderful gentlemen have done the math for us and even illustrated it in large letters and numbers. It’s difficult for me to believe that America’s financiers are this crooked, but, as “they” say, it is what it is.

A major bank is now offering an “associate discount program” to their customers.

Just what is an “associate discount program?”

Well, they basically are on-line retailer shops selling items such as books, shoes, luggage, cruises, vacations, etc., via the internet. They are in direct competition with local businesses and they — in this case Bank of America — gets a percentage of everything you buy from their “associate discount program.” Local retailers will lose business as a result of any purchases you make through Bank of America.

Whomever thought of this should be asked “What ARE you thinking?” Or, “Are you thinking?”

Banks are purportedly taking care of our money; they are not an affiliate marketing program/retail gateway for consumers. This program makes no sense from a banking institution — are you really that hungry/desperate? Oh, don’t answer that — we all are, I suppose.

Why is banking institution allowed to conduct business in such a manner. Affiliate marketing links are consumer gateway, NOT banking products. Again, this puts the bank in direct conflict with various local businesses that are their clients.

Wouldn’t it be more appropriate for today’s banks/lenders to run their business in more professional “bankerly” manners, as in paying attention to the millions of fraudulent real estate loans handed out in the past 4-6 years.

Due to poor lending practices by banks, by the time all is said and done, more than 60 million people will have been displaced in America — that is more forced movement than any time in the recorded history of the world from any source, including war, persecution, hurricanes, floods, fire and earthquakes.

PLEASE get back to what you are supposed to be doing, which is managing money, not selling retail products through affiliate marketing programs.

If this particular lender proceeds with this instead of managing its business, we need to complain to appropriate authorities, i.e. Federal Trade Commission, Office of the Comptroller of the Currency, Office of Thrift Supervision, etc.

I even like the particular bank “offering” this “service,” but this is way out of line and I was in court just yesterday with a woman trying to save her home from this very bank . . . the court ruled in the woman’s favor due to lack of responsiveness from this lender.

Rather than helping customers, they are setting up affiliate marketing programs to further make money from their clients and to compete with local retailers.

CALIFORNIA LEGISLATURE FINDINGS

1. Recently, the California Legislature found and declared the following in enacting California Civil Code 2923.6 on July 8, 2008:

(a) California is facing an unprecedented threat to its state economy because of skyrocketing residential property foreclosure rates in California. Residential property foreclosures increased sevenfold from 2006 to 2007, in 2007, more than 84,375 properties were lost to foreclosure in California, and 254,824 loans went into default, the first step in the foreclosure process.

(b) High foreclosure rates have adversely affected property values in California, and will have even greater adverse consequences as foreclosure rates continue to rise. According to statistics released by the HOPE NOW Alliance the number of completed California foreclosure sales in 20’07 increased almost threefold from 2002 in the first quarter to 5574 in the fourth quarter of that year. Those same statistics report that 10,556 foreclosure sales, almost double the number for the prior quarter, were completed just in the month of January 2008. More foreclosures means less money for schools, public safety, and other key services.

(c) Under specified circumstances, mortgage lenders and servicers are authorized under their pooling and servicing agreements to modify mortgage loans when the modification is in the best interest of investors. Generally, that modification may be deemed to be in the best interest of investors when the net present value of the income stream of the modified loan is greater than the amount that would be recovered through the disposition of the real property security through a foreclosure sale.

(d) It is essential to the economic health of California for the state to ameliorate the deleterious effects on the state economy and local economies and the California housing market that will result from the continued foreclosures of residential properties in unprecedented numbers by modifying the foreclosure process to require mortgagees, beneficiaries, or authorized agents to contact borrowers and explore options that could avoid foreclosure. These Changes in accessing the state’s foreclosure process are essential to ensure that the process does not exacerbate the current crisis by adding more foreclosures to the glut of foreclosed properties already on the market when a foreclosure could have been avoided. Those additional foreclosures will further destabilize the housing market with significant, corresponding deleterious effects on the local and state economy.

(e) According to a survey released by the Federal Home Loan Mortgage Corporation (Freddie Mac) on January 31, 2008, 57 percent of the nation’s late-paying borrowers do not know their lenders may offer alternative to help them avoid foreclosure.

(f) As reflected in recent government and industry-led efforts to help troubled borrowers, the mortgage foreclosure crisis impacts borrowers not only in nontraditional loans, but also many borrowers in conventional loans.

(g) This act is necessary to avoid unnecessary foreclosures of residential properties and thereby provide stability to California’s statewide and regional economies and housing market by requiring early contact and communications between mortgagees, beneficiaries, or authorized agents and specified borrowers to explore options that could avoid foreclosure and by facilitating the modification or restructuring of loans in appropriate circumstances.

2. “Operation Malicious Mortgage’ is a nationwide operation coordinated by the U.S. Department of Justice and the FBI to identify, arrest, and prosecute mortgage fraud violators.” San Diego Union Tribune, June 19, 2008.

The Justice Department announced that it has been quietly conducting a nationwide sweep of the real estate industry for the past three and a half months, dubbed “Operation Malicious Mortgage.” Withing the first three months of operation, it charged 406 defendants with mortgage fraud in 144 cases, Deputy Attorney General Mark R. Filip said at a news conference this afternoon, and the fight against white-collar crime is far from over.

Between October 2008 and June 2010, the FBI opened 23 local mortgage fraud task forces around the country with the purpose of curtailing the illegal misstatement, misrepresentation or omission of material facts on mortgage applications.

As of June 2009, suspicious mortgage-related activity for the year was on track to exceed 70,000 cases, a 10 per cent increase over 2008 levels, according to preliminary FBI estimates. Mortgage fraud-related losses totalled $1.4bn in 2008, an 83.4 per cent rise over the previous year.

In the first six months of 2009, losses exceeded levels for the same period in 2008 by $208m. California and Florida, two states that played a key role in the subprime meltdown, had the most mortgage fraud in 2008, according to the latest data. Los Angeles, Miami, San Francisco, Chicago, Sacramento, New York, Tampa, Detroit, Minneapolis and Atlanta were the top cities in descending order for mortgage fraud.

3. “Home ownership is the foundation of the American Dream. Dangerous mortgages have put millions of families in jeopardy of losing their homes.” CNN Money, December 24, 2007.

4. “Finding ways to avoid preventable foreclosures is a legitimate and important concern of public policy. High rates of delinquency and foreclosure can have substantial spillover effects on the housing market, the financial markets and the broader economy. Therefore, doing what we, can to avoid preventable foreclosures is not just in the interest of the lenders and borrowers. It’s in everybody’s best interest.” Ben Bernanke, Federal Reserve Chairman, May 9, 2008.

5. “Most of these homeowners could avoid foreclosure if present loan holders would modify the existing loans by lowering the interest rate and making it fixed, capitalizing the arrearages, and forgiving a portion of the loan. The result would benefit lenders, homeowners, and their communities.” CNN Money, id.

6. On behalf of President Bush, Secretary Paulson has encouraged lenders to voluntarily freeze interest rates on adjustable-rate mortgages. Mark Zandl, chief economist for Mood’s commented, “There is no stick in the plan. There are a significant number of investors who would rather see homeowners default and go into foreclosure.” San Diego Union Tribune, id.

7. “Fewer than l%• of homeowners have experienced any help “from the Bush-Paulson plan.” San Diego Union Tribune, id.

8. The loss belongs where it was created — on Wall Street and Main Street Banks that rented their charter to Wall Street operatives who caused an unprecedented collapse of loan underwriting standards and crossing the line into fraud, forgery, and creation of false documentation. Companies SHOULD fail. Banks SHOULD fail. Borrowers CANNOT fail — because they are the backbone of the country and the economy.

9. There are plenty of lenders, investment bankers and money managers who did not play the game and are perfectly healthy. Bailout money should go to the players who played by the rules and are healthy. They are the ONLY ones who can and will lend, thus freeing up, somewhat, the tightening death grip of no credit and thus no commerce.

We are being “internally displaced” (meaning having to move within our own country) and our displacement rivals or exceeds international numbers:

• 2009, Sri Lanka: 300,000 war-displaced Tamils forced into camps;
• 2009, Yemen: 150,000 people fled fighting;
• 2009, Sudan: 250,000 displaced;
• 2009, Georgians: 192,000 displaced (Moscow, Reuters);
• 2008, Columbia: 380,000 forced off their farms by guerillas, paramilitaries or drug traffickers;
• 2008, World: 4.6 million from armed conflicts;
• 2008, World: 20 million displaced because of natural disasters such as flooding, earthquakes and storms.

Unfortunately History Does Repeat Itself

It is time to stand up and be heard.

"If you are not part of the solution, you are part of the problem." — Eldridge Cleaver

“All that is necessary for the triumph of evil is for good men to do nothing.” — Edmund Burke

"Justice is itself the great standing policy of civil society; and any eminent departure from it, under any circumstances, lies under the suspicion of being no policy at all.” — Edmund Burke

From Leo Tolstoy, one of the world’s greatest writers:

"Government is an association of men who do violence to the rest of us."

"I sit on a man’s back, choking him and making him carry me, and yet assure myself and others that I am very sorry for him and wish to ease his lot by all possible means – except by getting off his back."

"If you want to be happy, be."

"In all history there is no war which was not hatched by the governments, the governments alone, independent of the interests of the people, to whom war is always pernicious even when successful."

"In the name of God, stop a moment, cease your work, look around you."

A significant number of our families who are facing home loss by the agents of lenders are America’s senior citizens; these individuals are the very people who have spent 40 or 50 years working and paying taxes to underwrite our society, including underwriting the recent bank bailouts.

Emotional abuse includes: “Subjecting an individual to fear, isolation or serious emotional distress.”

Few things are worse than losing your home, particularly one you have been in for decades. Emotional abuse also includes “Verbal assaults, threats or intimidation.”

One of Marin Family’s Action’s members (image right) was taken from her home, handcuffed and sent to the county jail. This woman is A 74-year-old California native with degrees in economics and welfare from University of California at Berkeley. No notice was given. Earlier that week her pacemaker was replaced.

When asked what it was like to be in jail, she said she was “stunned as the reality of my circumstance had not yet sunk in.” Because her pacemaker had been replaced earlier that week, stress was to be avoided. Her arms were already bruising from rough handling and handcuffs “All I could do is wait. There is nothing to do, no means to go to the bathroom. I sat handcuffed.” The nurse checked her pulse: 195 over 97, pronounced the pulse rate “okay” and asked if the bruises on Mary’s arms were “needle marks.”

Elder abuse covers several areas. We are working with groups that focus on abuse as relates to one’s home and loss of one’s home through predatory lending, through lack of cooperation with homeowners with regard to loan modifications, home improvement scams, and illegal fees paid to individuals professing to be able to help with home loan modifications or restructures.

The State of California is quite clear on definitions of elder abuse. Their 39-page citizens guide may be important if you or someone in your family is a senior citizen and is being subject to harrassment by lenders — this includes loan modification agreements that are ignored by lenders and lenders’ agents.

Financial Elder Abuse: Financial abuse is the theft or embezzlement of money or any other property from an elder. It can be as simple as taking money from a wallet and as complex as manipuating a victim into turning over property to an abuser.

This form of abuse can be devastating because an elder victim’s life savings can disappear in the blink of an eye, leaving them unable to provide for their needs and afraid of what an uncertain tomorrow will bring.

California has designated $25 million to help senior individuals for elder abuse:

Anyone age 65 or older, who is suspected of being abused or neglected, is eligible for APS without regard to income. If you suspect that an elderly or dependent adult is being abused or neglected, call your local adult protective services.

America’s working men, women — and often children — shaped this country into the great place that it is (was?).

Why aren’t we being protected? How did we become “the enemy” and “inconvenient?”

We are being “internally displaced” (meaning having to move within our own country) and our displacement rivals or exceeds international numbers:

• 2009, Sri Lanka: 300,000 war-displaced Tamils forced into camps;
• 2009, Yemen: 150,000 people fled fighting;
• 2009, Sudan: 250,000 displaced;
• 2009, Georgians: 192,000 displaced (Moscow, Reuters);
• 2008, Columbia: 380,000 forced off their farms by guerillas, paramilitaries or drug traffickers;
• 2008, World: 4.6 million from armed conflicts;
• 2008, World: 20 million displaced because of natural disasters such as flooding, earthquakes and storms.

Unfortunately History Does Repeat Itself

It is time to stand up and be heard.

"If you are not part of the solution, you are part of the problem." — Eldridge Cleaver

“All that is necessary for the triumph of evil is for good men to do nothing.” — Edmund Burke

"Justice is itself the great standing policy of civil society; and any eminent departure from it, under any circumstances, lies under the suspicion of being no policy at all.” — Edmund Burke

From Leo Tolstoy, one of the world’s greatest writers:

"Government is an association of men who do violence to the rest of us."

"I sit on a man’s back, choking him and making him carry me, and yet assure myself and others that I am very sorry for him and wish to ease his lot by all possible means – except by getting off his back."

"If you want to be happy, be."

"In all history there is no war which was not hatched by the governments, the governments alone, independent of the interests of the people, to whom war is always pernicious even when successful."

"In the name of God, stop a moment, cease your work, look around you."

I thought I had a 7-year loan modification from Wells Fargo. Well, maybe not . . . I don’t believe this.

VERY IMPORTANT: The very second you start negotiating with your lender regarding a loan modification, get a large binder and put everything in it. You will need it. During the Home Modification workshop with Wells Fargo, they repeatedly said they did not have this or that document. I did AND I had the FAX confirmation that it was sent to them and received. I handed it to them and said, “please make a copy and bring this right back to me.” We did that four or five times. I’m sure they were looking for a reason to NOT modify.

On May 24, 2010, I met with Wells Fargo at a Home Modification workshop they held in Oakland, California. I had been trying to get a loan modification for 18 months. This started out in December 2008 as a projected six months of financial strife, after which time two retirement incomes would kick in and I could get back on track financially. My goal when I purchased my home in 2006 was to pay it off in five years because of the retirement incomes. It was all looking good until cancer (through which I worked), followed by a job layoff in 2008.

Wells Fargo helped stretch my potential six-months of strife into 20 months so far and I don’t see an end to it. (That image is of my 20 pound, 6 inch thick — and growing — binder.)

I came away from the modification workshop quite pleased and thinking I actually had a decent loan modification for five years — time to help me find the money to pay off this loan and get away from Wells Fargo for the rest of my life. And an opportunity to help others figure out their way through this financial maze.

Wells Fargo is either the most crooked corporation I’ve seen in more than 50 years of working in corporate America — including a stint in the corporate finance department at a major bank — or they are the most inept.

In either case, if they have your money, you should be worried. Wells Fargo is featured in various class actions across the nation and are an international financial collaborator with HSBC out of London, which is being investigated on three continents.

At that workshop, I signed an agreement with Wells Fargo, figured I bought a five-year “stay of execution,” and started to work on increasing my income with the prayer of being able to pay them off in the five year period. (The modification is actually for seven years, but it is not good in year six or seven.)

Today I received a statement dated July 5, 2010 (it is July 15 as I write this). It is 9:56 p.m. ’cause I just finished working from 8 a.m. this morning building Websites. (I am DETERMINED to pay off these bankers. There has to be a way.)

The agreement, which I have paid for two months, is roughly $2500/month (or $2,000 a month depending on which document I read); this statement is for $4,074.54 per month, and has tacked onto it $170.36 as late fees, two unapplied payments, the statement that $76,683.40 is due by August 1st.

I have the original agreement; it does NOT escalate to $4,074.54 per month in August of this year and $76,683.40 is NOT due on August 1st. This is insane, and it is NOT me that is insane.

Where is our government and/or our system of justice through this — either local judges or supervisors or governors or anyone? Have they all decided we are “wrong?” Are they married to lenders?

I can barely breathe. For the first time in my life I know what a “battered wife” must feel like. My back between my shoulders aches as though someone were pummeling me. I’m actually not a dramatic person, but I am a fighter. Put me in a corner and I will come out kicking. At this point, I don’t know who I am fighting. Wells Fargo agreed to a modification. This paperwork ignores that agreement. Who runs this company? Dumb question?

An aside. I heard someone at a meeting last week mention that Wells Fargo was going to institute drug testing to its employees — given his level, I assumed he meant middle-level executives. Turns out that 80% of them, per his information, tested positive for cocaine. Given that coke is the middle-level executive drug, and given how Wells Fargo is currently operating, I don’t doubt him.

I contacted Wells Fargo’s executive offices in Des Moines, Iowa. They had no answer as to why this continues, but said they will remedy it. Sure.

Following that conversation, I came home on Sunday, July 18th, 2010 to see a notice stuck in my front door . . . no name, no signature and no envelope. A good breeze would have blown it away . . . so much for “effort to make contact” and confidentiality.

That notice reads:

Please Call: Wells Fargo Home Mortgage
Contact: Loan Administration
At: 800 766 0987
Notice: Our Representatives called on you today while you were out. There is an important matter we would like to discuss with you. This inspection is not in any way an attempt to collect a debt.

I called on July 19, 2010 at 8:27 a.m.: Lolitha (EN5) in Wisconsin couldn’t help. She didn’t know why the notice was on the door. I called and left a voice mail for Teresa Warnock in the offices of the President of their mortgage in Des Moines, Iowa. Teresa called back and sounded as confused as am I. My “case” is being monitored by someone else in their offices as there is an “internal issue” they are trying to resolve.

And, no sooner do we hang up then I get yet another “Loan Modification Agreement” delivered via FedEx from Wells Fargo. This one seems to duplicate the one dated April 22, 2010 and it is, in fact, dated that same date. And it STILL is not per my understanding from the April meeting of a fully amortized PITI.

Dreaming Up America by Russell Banks

“A thoughtful and provocative meditation on our history, with a chilling look at what has happened to the American dream.” –Howard Zinn

Because my background is English literature and I worked for years in media and my operating word is “why,” I couldn’t help it. I looked up the word evil. Wikipedia has it as:

Evil is the intention of causing harm or destruction while threatening or deliberately violating morality. Largely due to the subjectivity of the word morality (which may refer to a society’s moral code, one’s own moral system, relative morality, absolute morality, etc.), there is no agreement about whether evil is a matter of social custom or universally correct principle that overrides custom. Evil, however, is most commonly used to refer to any intention that is socially perceived as the antithesis of a morally right or good intention.

Yes, this is subject to interpretation, and my interpretation — along with millions of Americans — is that these lenders may be evil. And while you are ruminating over whether or not they are evil, please know that they are absolutely inept; if you are not yet worried about who has your money and/or investments, you should be.

This is so sad. Many people, me included, worked 50-60 years for a gracious retirement. What am I doing? Fighting with an institution that I know beyond the shadow of a doubt is inept and crooked if you view their history — they cut a deal with Pancho Villa is the early 1900s — and that was documented by university libraries.

Does anyone have a clue as to what we do? We KNOW what is going on. How are these lenders stopped?

My notes keeping track of this fiasco started in December 2008; they are now 15 pages long.

I told them I am billing them for my time spent on trying to clear up this mess and the repeated FAXing of documents that they repeatedly lose. I now average $100/hour working from home. I have spent easily 2 hours per day keeping track of this. So: $100/hour x 2 hours per day x 5 days per week x 20 months = roughly $80,000 . . . not counting all the money wasted in FAXing documents to them repeatedly.

After 18 months of trying for a loan modification through Wells Fargo Bank, and after 8 months of working with a group fighting lenders, it is painfully clear that we have been duped across the nation. (The image is of the binder I have been keeping since December 2008. Wells Fargo lost one of my payments in 2007; it took weeks to straighten that out. So it seemed prudent to begin keeping a file of all correspondence with that lender. The binder is now six inches thick and weighs 20 pounds. My conclusion is that Wells Fargo is either insanely incompentent or frightenly corrupt — it is definitely one or the other or both, but their actions have nothing to do with good business practices and/or ethics.)

Yesterday, during a conversation with a worldly and knowledgable couple, who read the New York Times, Wall St. Journal, San Francisco Chronicle and the Marin Independent Journal, it was clear that they knew little of our national debacle (which has created an international debacle). Because newspapers cater to advertisers — even though they will swear they do NOT — the news you read is couched so as to not overly offend major advertisers and banks ARE major advertisers.

From Living Lies:

THE INCONVENIENT TRUTH: Profits piled up off-shore that are being repatriated on a gradual basis showing incredible gains at the Wall Street Banks that supposedly lost hundreds of billions of dollars. The truth is they never lost a dime. The truth is the loan was sold multiple times through multiple intermediaries each of whom in each “sale” were paid fees and profits vastly exceeding any prior compensation to those who arranged or made loans prior to securitization.

Second Hidden Yield Spread Premium: As I have pointed out before the hidden yield spread premium was jaw-dropping (when the loans were packaged by the aggregator and then sold to the Special Purpose Vehicle that issued and sold the mortgage-backed securities. This second YSP was sent off-shore to the Bahamas or the Caymans to Structured Investment Vehicles with their own trustees, who scattered the actual depository accounts all around the world. The beneficiaries were the 100 Club — the main players in the creation, promotions and protection of the scheme through government contacts, plausible deniability, and simple non-disclosure sometimes achieved through the sheer complexity of the arrangements.

Know Your Rights: The U.S. Constitution: And Fascinating Facts About It If you are new to the fight to save your home, you are going to think some of us who have been in the midst of this for 1-2 years are nuts. We’re not. We are hard-working responsible citizens who are being trampled on by not only lenders, but sometimes by local officials, some of whom have interests in the very banks we are up against. One of my early stops in the effort to get help was to Legal Aid of Marin County. The director of that agency, Paul Cohen, who has received funds to help people, handed me a one-page sheet on when I could expect to lose my home. He offered no help. Were it up to Mr. Cohen, I would be living under a bridge in a tent with a feral cat or two. My Cohen and his Legal Aid are a disservice to community. Were it up to me, he would be seeking new employment. My surname is Jewish, thus this is not from any type of prejudice; he is simply incompetent, he had my life in his hands, and he did NOTHING. I’m at an age where recovering from losing my home would be impossible.

Nobody wants to acknowledge this fact because it would be admission that the con game is still on and that government is still part of it. They took many trillions of dollars to “bail out” banks that had arranged the bad loans but never underwrote them.

The repercussions of what lenders have done during the past decade is playing out across the nation. People who worked hard to grow and provide for their families are sinking.

From the New York Times:

. . . The mayor and former bank loan officers point a finger of blame at large national banks — in particular, Wells Fargo. During the last decade, they say, these banks singled out blacks in Memphis to sell them risky high-cost mortgages and consumer loans.

(Editor’s Note: I don’t think the banks were as picky as stories would have it. It seems to me that people of ALL races have been hurt and wrote about this as Equal Opportunity Prejudice!.) The group I work with — Families Fighting Forelosure is pretty well balanced between Black, Hispanic and White and everywhere from around 30 years of age to 73 years of age. There does not seem to be a common denominator except that, perhaps, we trusted our lenders and did not read every single word of those loan documents. I was just told that I have an interest-only loan. In my opinion, negative-am loans and/or interest-only loans are insane. How does one ever own one’s home. I would not have agreed to an interest-only loan . . . thus my reason for having a forensic audit undertaken.

The City of Memphis and Shelby County sued Wells Fargo late last year, asserting that the bank’s foreclosure rate in predominantly black neighborhoods was nearly seven times that of the foreclosure rate in predominantly white neighborhoods. Other banks, including Citibank and Countrywide, foreclosed in more equal measure.

In a recent regulatory filing, Wells Fargo hinted that its legal troubles could multiply. “Certain government entities are conducting investigations into the mortgage lending practices of various Wells Fargo affiliated entities, including whether borrowers were steered to more costly mortgage products,” the bank stated.

Wells Fargo officials are not backing down in the face of the legal attacks. They say the bank made more prime loans and has foreclosed on fewer homes than most banks, and that the worst offenders — those banks that handed out bushels of no-money-down, negative-amortization loans — have gone out of business.

Brown Prosecution Sends Phony Foreclosure Consultants To Jail And Recovers Stolen Funds

SANTA ANA – In a clear “warning shot” to unscrupulous loan-modification consultants, Attorney General Edmund G. Brown Jr. today announced that two women have each been sentenced to one year in jail and ordered to repay dozens of homeowners who were charged thousands of dollars in up-front fees for non-existent foreclosure-relief services.

Is your lender in this picture?

Marianne Curtis, 69, of Costa Mesa and Mary Alice Yraceburu, 46, of Riverdale, who operated Fresno and Orange County-based Foreclosure Freedom, pleaded guilty last month to 71 criminal counts, including grand theft, conspiracy and unlawful foreclosure consulting. Both will serve one year in Orange County jail and an additional four years of probation.

“Curtis and Yraceburu shamelessly exploited homeowners desperate to avoid foreclosure, charging up to $1,800 in up-front fees for loan modifications that were never delivered,” Brown said. “Today’s jail sentences send a warning shot to loan-modification consultants: If you swindle homeowners, you face serious time behind bars.”

Brown’s office initiated its investigation into Curtis and Yraceburu in early 2008 after receiving a complaint from the Tulare County District Attorney. Charges were filed in Orange County Superior Court on March 19, 2009, against the defendants, and both pleaded guilty on March 24, 2010.

Brown’s investigation located victims in many California towns and cities: Antelope, Avenal, Bakersfield, Crows Landing, Elk Grove, Fairfield, Fresno, Galt, Hanford, Hayward, Hollister, Kingsburg, Mendota, Modesto, Petaluma, Placerville, Richmond, Ridgecrest, Rio Linda, Sacramento, Salinas, San Leandro, Simi Valley, Stockton, Taft, Vacaville, Vallejo and Ventura.

In addition to today’s jail sentences, Curtis and Yraceburu were ordered to repay 36 victims a total of $32,040. If eligible victims not named in the complaint come forward, the court can order additional repayment throughout the defendants’ probation term. As a condition of today’s sentence, both defendants are also prohibited from any future work in the telemarketing and real estate industries.

Brown’s investigation found that from April 2007 until February 2008, the two women paid for access to foreclosure listings so they could directly solicit hundreds of homeowners underwater on their mortgages with mailers promising relief.

When homeowners called the number on the mailer, they were told their mortgages could be renegotiated to a lower monthly payment. Victims, however, were required to pay up to $1,800 in up-front fees and were instructed not to contact their lenders.

Victims were assured the company had “private lenders and specialists exclusive to their company who are very experienced in the options and methods used to renegotiate home loans,” yet neither of the women who operated the company had real estate licenses, legal training or any experience in the home mortgage market.

Investigators found no evidence they had negotiated any successful loan modifications, and most of the victims were either forced into bankruptcy or lost their homes to foreclosure. Bank account records revealed the defendants took over $120,000 from unsuspecting homeowners.

Both Curtis and Yraceburu pleaded guilty to all 71 criminal counts including:
- 34 counts of unlawful foreclosure consulting
- 29 counts of grand theft
- 7 counts of attempted grand theft
- 1 count of conspiracy

By law, all individuals and businesses offering mortgage-foreclosure consulting or loan-modification and foreclosure-assistance services must register with Brown’s office and post a $100,000 bond. It is also illegal for loan-modification consultants to charge up-front fees for their services.

Non-profit housing counselors certified by the U.S. Department of Housing and Urban Development provide free help to homeowners. To find a counselor in your area, call 1-800-569-4287.

If you are a homeowner who has been scammed, contact Brown’s office at 1-800-952-5225 or file a complaint online at: www.ag.ca.gov/consumers/general.php.

Brown has sought court orders to shut down more than 30 fraudulent foreclosure-relief companies and has brought criminal charges and obtained lengthy prison sentences for dozens of other deceptive loan-modification consultants. Last month, Brown secured a court judgment that shut down two Orange County-based foreclosure-assistance companies, secured $1 million in restitution for victims and prohibited three individuals from ever working in the real estate industry again.

For more information on Brown’s action against loan-modification fraud visit: http://ag.ca.gov/loanmod.

A copy of the amended complaint, filed in Orange County Superior Court, is attached. # # # You may view the full account of this posting, including possible attachments, in the News & Alerts section of our website at: http://ag.ca.gov/newsalerts/release.php?id=1896