Faces Of Foreclosure

Here is a story representative of the people that need our prayers . . . and they need justice. Is our country so far amiss that this is allowed to happen without recourse?

I am 62 and have owned an over-the-water duplex in Marin County for 13 years. In 2007, I contracted a staph infection in my knee after an arthroscopic surgery at St. Francis hospital. The infection required an additional 4 surgeries to rid the infection, followed by a total knee replacement. I was bedridden for nearly six months followed by six months of rehab.

At the same time I became ill, my neg-am adjustable loan reset, and my mortgage payment tripled virtually with no notice. The bank, at that time IndyMac, and later OneWest, would not negotiate with me at all.

They filed an NOD, and followed with NOS with a sale date in Mid-March. I filed a Chapter 7 the day before the sale. The bank then filed for relief of stay, and submitted an erroneous appraisal to convince the court that there was no equity and therefore they should be allowed to proceed with the sale.

The appraisal was for a 4bd/2ba 2200 sqft property. Mine is a 6bd/4ba 3045sqft property. I advised the Trustee as to the bogus appraisal, but somehow, they approved the relief of stay – BUT only giving them permission to refile an NOD, followed by another NOS – specifically to allow me time (about 4 mos)to sell the property.

Without anyone’s knowledge, and none of the required filings, the bank sold the property for $1.0M. It had appraised in 2007 for $2.7M and the Trustee signed a listing agreement at $2.8M. We appealed the sale, but the Judge decreed that the buyer was in good faith, the sale would stand, and I could recover my losses from the bank.

In the meantime, I have been evicted – out of here by Monday. The trustee also seized my ’57 T-Bird that my Dad bought new, and a 30′ Catalina sailboat that I have owned for 28 years, as now I have no equity and no cash.

The law firm representing the bank has acknowledged misleading the Trustee, and all of these errors are well documented.

To add insult to injury, the property was then sold for $300,000 to a local company . . . sounds like money laundering. We have tried locating the company purchasing these homes at these low costs to little avail; they are flying under the radar, but we will scope them out. This is especially questionable because the area in question has dropped little in value; it is desirable on the world market.

A group in Marin County is behind this gentleman and is encoraging him to file a complaint with his local District Attorney’s office, which he will do if we have to drive him there!

The same group that purchased the above-mentioned home also purchased a home for $387,680 and is now offering it around $200,000 at a foreclosure auction on the assumption that it will create a buying frenzy.

By retreating to outsider angst the left forgets one of the most exciting lessons of the Obama campaign: that ordinary people working for common purpose wield tremendous power. For those of us who work for our income and have modest means, it was unbelievable to watch ourselves become donors to a political campaign and find that those donations made a difference.

Through Marin Family Action, I’ve been working with a group of homeowners from Marin, Napa and Sonoma Counties . . . most are in danger of losing their homes, some with obvious charlantry on behalf of the mortgage lenders, some with obvious incompetence on behalf of the lenders. I don’t know the background of the following or who really said what to whom, but I would think it quite impossible for an individual to be this far off in the understanding of a home loan, so one can only think that something is amiss (again) in the lenders’ paperwork.

I am a licensed real estate agent, and I do not understand much of what I’m being told is or is not true on behalf of the lenders. How does someone elderly (actually, I guess I’m elderly — is 66 elderly?), or ill, or with a low IQ understand all this. (That is not a slur; the average American has an IQ around 98 and mine, for example, is 143, and I don’t understand much of what the lenders are doing.)

The following was sent to Marin Family Action:

I spoke to you a few weeks ago. I could not make it to your office because I was sick. I live in San Rafael and my home loan was remodified in May of this year, with Washington Mutual which is now Chase or J.P. MORGAN CHASE.

The remodification terms in May were that I would pay $2348.51 for three years and
then would gradually increase. They also told me that they would include my taxes which they new they were two years delinquent. Anyway they sent me a letter on October 26th that my Mortgage would increase to $3700.00 by December 1st 2009 and then I received another letter dated October 28th that my mortgage payments would increase to $4700.00 on December 1st 2009.

At this point I know that usually anytime you refinance title knows about your taxes, etc., and they were aware of it and they told me because of the economy, etc. they would take care of it. I hope your office can help me.I am a single parent and have two daughters that I took care after my wife Diana past away in a Car accident. The last one just graduated and is started attending College.

I will not be able to make these payments and they would most likely take my home.
Please tell me what my option are. I know you have helped a lot of people in this stressful situation. Thank you.

Many people are going to try to pick that story apart . . . How could anyone have mis-read a note to that extent? Have you actually read your mortgage papers? Every word? Do you actually understand what you have agreed to and do you know — actually know — who holds your note? I’m quite sure that you do not. As for the changes in terms from Chase, I promise you that there IS, in fact, that much confusion in the world of mortgage lending. My own examples are proof of that; a letter one day saying a modification proposal is underway; another letter within days saying the holder of the note does not want to negotiate; followed by yet another lender saying that a modification proposal is underway.

WHAT is in our water? WHAT are the lenders drinking?

A group of high-spirited, well-organized, caring and sometimes scared neighbors at Marin Family Action in San Rafael, California have been working to help save homes for a couple of months. They have covered quite a bit of ground (and uncovered a considerable amount of duplicity) in a short time.

Their immediate focus: Dennis, a dapper 60-something-year-old gentleman who has owned his home for 37 years is facing eviction somewhere between 9 a.m. and midnight on Monday, November 2nd.

Dennis’ story: Dennis has lived in his house for 37 years. Due to economic downturns, he asked lender for a restructure. The lender said “You are current. Miss three months and we will talk.” After missing three months’ worth of payments, lender said no to restructure and said they were going to foreclose. Dennis sent them full payment to catch up. They refused the payment. Dennis went in with his attorney and a check. The lender again refused payment (which, apparently, is against the law). Bank sold the house to an investment group (soon to be named . . . and who have reportedly purchased 80 homes through shortsale, some LESS THAN other all-cash offers, which is also questionable).

Dennis is supposed to be out of his house on Monday. We are staging a sit-in on that day. Papers have been served on the Sheriff’s department to cease due to illegal activity, and on the purchaser of the note. Local media will cover, as will PBS out of Canada.

Through Marin Family Action, Dennis has been working with Jeff Smith. Jeff is neither an attorney nor a paralegal; he is a brilliant legal advocate that has had success in saving homes by documenting the illegal machinations of lenders . . . particularly through the Common Law court in Washington DC.

Lawsuits are underway: The first was FedEx’ed to Washington, D.C. for filing and returned within 24 hours. The paperwork was faxed to all parties involved and a group of us went to Marin County Sheriff’s Department on Thursday, October 29th, to apprise them of the situation with a request to hold the eviction until there is time to prove that Dennis is wrongfully being evicted. This suit includes a petition for declaratory relief and an order to cease and desist. This should stop the eviction and allow time to follow up with the second suit which will be an “action to quiet title.”

At this point, it’s a matter of what the sheriff’s department decides to do.

The group supporting Marin Family Action has grown from a few people three months ago to more than 150 concerned residents of Marin and Sonoma Counties . . . is prepared to “sit in” at Dennis’ house on Monday.

Once this fire is put out, the group will continue working with others who have been or are being duped by lenders. Some of the illegal activity going on with foreclosures is surely due to staggering incompetence; other activities are clearly coverups on the lenders’ parts; sadly, I have proof of this and will be naming names soon.

Update: November 4, 2009
Dennis is still in his home. Eviction papers have not been served. It is down to the wire and the legal advocate is waiting for papers from the Federal Court in Washington to see about a stay a “cease and desist order,” something.

If it matters, the person writing this has never been an activist, not even during the Vietnam War when it would have been appropriate to speak up. I prefer anonymity, have always kept my head down, worked hard, and volunteer to help endangered animals. But it is clearly time to speak up at the injustices being inflicted upon American homeowners.

As I’ve written throughout these pages, I don’t care if lenders have hearts; I do care that they are ethical and fiscally responsible; neither of those traits are being exhibited by todays mortgage lenders in America.

PLEASE keep in mind: “There But For God Go I” and “You.”

This IS an unprecedented time in our country; if we don’t stand by each other, if we do not work to halt illegal activities, what is the point of this country?

God Bless Us All! And God Help Us All!

Realized — just today actually — that I’ve been upset for the past several months ’cause for the First Time In My Life I am scared. “Frightened” is not in my nature. I’ve actually had nightmares and dreamed of the “Wolf at The Door,” in banker’s clothing.

Of course that made me mad at the mortgage lenders scaring me, so I’m reaching out to the only people I think that can do anything about it, which would be producers of movies and television series. (Book publishers could also, but the traditional book publishing process is staggeringly slow, and too many people no longer read.)

One of the most important things to many (most) of us is housing. For millions of Americans, that is now threatened and little is being done about it. Lots of diatribe; no actual results. If I . . . as the 5th generation of my family in California (and 7th in Maine) . . . am frightened, how do the new(er) immigrants feel about moving to the Land of the Free and the Home of the Brave with the promise of a home, a chicken in every pot and two cars in every garage? Many escaped from Wherever to find peace, opportunity and freedom only to be told “Oh, too bad, you have to move. You have lost your home. Oh, you didn’t read the mortgage papers correctly. All 9,000 words. So sorry.”

Recently in The San Francisco Chronicle, Matier and Ross commented about a man who has lost his home because the “bank” wouldn’t negotiate. What about naming the banks when these stories are told. Matier & Ross must have wanted to as they are responsible journalists, but I’d bet my eye-teeth that they were stopped at the corporate level because that “bank” is probably an advertiser. So much for truth in journalism.

Some weeks ago, the Santa Rosa Press Democrat told the story of James Madison, a Santa Rosa Coldwell Banker agent, who is proud of how much money he is making by “helping” people get out of their homes so he could sell them to someone else. He has approached CRYING men who have to leave their homes. I don’t know James Madison. I don’t want to know him. He is a shark swimming in blood-filled waters. I feel sorry for his wife and children. I feel sorry for him. What goes around comes around.

If magazine/newspaper advertisers cover the expenses — and they do with print as subscriber income has never even covered the cost of paper — then the paper sells out as appropriate to underwrite the bottom line . . . especially now with dwindling dollars from all directions. Hey, it’s business.

Some banks need to have their Charters pulled (which was suggested to me by a successful politial activist.) I have filed a Congressional Inquiry into the bank I am most upset with (name to come later). They are taking tax-payer dollars and they are not helping taxpayers.

Danny DeVito produced Erin Brockovich. First letter is going to him. Hollywood Reporter reaches everyone we need. Letter went to them this a.m. Clint Eastwood kissed me once at a cast party — his idea, not mine — however, maybe I can get through to him (and occasionally I’m sorry I missed what that might have lead to; I left for yet another party).

Of course, I wrote to Dr. Phil — in the section asking to send in stories about American cities that have parties that disagree . . . well, the whole of America disagrees on this one, although we have recently been diverted by news attention to flagging underwriting for medications (this IS a seriously drugged society . . . whether it be with actual prescriptions or food or “toys). People who have secure housing, be they apartment dwellers or home owners, think those of us in danger did “something to deserve it.” Well, they would be wrong. And I understand the “comfort” in thinking, “I did nothing wrong ever, so this dreadful economy won’t touch me.” Guess again. For 16 years I ran a successful fundraiser with this at the top of my mind: “There but for God go I.”

I love “Leverage,” “Burn Notice,” “Bones,” various “CSIs,” all of “Law and Order,” Lie to Me,” etc. A story on one or all of these is precisely what is needed to bring the expletive deleted banks to their knees (while somehow preserving jobs for all the fine people that are actually on the front lines).

Do you know that Wells Fargo has TWO, count ‘em two, class action suits against them? And do you know that Wells is now owned by a Texan? What IS it with that state?

More later . . .

And if you happen to be connected to a producer, PLEASE let me know and/or forward this.

What hard-working people are going through is positively insane. It’s just plain wrong. In a recent Twitter post, William F. Kane noted that according to Cuomo – Yahoo! News “Bonuses paid to executives at nine banks that received U.S. government bailout money in 2008 were greater than net income at some of the banks, the office of New York Attorney General Andrew Cuomo said on Thursday.”