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TOP TEN REASONS THERE SHOULD BE A NATIONWIDE MORATORIUM ON FORECLOSURES

By
Real Estate Attorney with The Law Offices of Steven C. Vondran, P.C. Attorney at Law

UNTIL THE LENDERS CAN PLAY FAIR IN REGARD TO LOAN MODIFICATIONS, FOLLOW THE LAW OF FORECLOSURE, AND OTHERWISE BRING INTEGRITY INTO THE SYSTEM, THEY SHOULD "COOL THEIR FORECLOSURE ENGINES"

(1) WHERE IS THE NOTE? The Lender’s cannot show they have the note in most cases where a securitized loan is involved.  Without being able to produce an original copy of the note, there can be no right to collect the debt, and no “secured” interest permitting foreclosure.  Tiny detail the lenders hope goes unnoticed, and which has gone unnoticed in most non-judicial foreclosure states.  What this also means, is that so called "lenders" are filing motions to "lift the automatic stay in bankruptcy" where they cannot legally prove they are entitled to enforce the debt.  Often, this goes unchallenged by bankruptcy lawyers.

(2) BOGUS LOANS LEADING TO INCREASED FORECLOSURES. The so-called “lenders” created the foreclosure mess by originating loans to anyone with a pulse who could fog a mirror, now the glut of foreclosures is killing the marketplace and reducing values of homeowners who are paying their mortgage.

(3) BAILOUT ABUSE. The lenders and servicers were bailed out with taxpayer funds and these funds were supposed to be used for loan modification, instead it appears they are using the money to appease loan investors so they do not get their pants sued off for selling worthless mortgages to wall street investors.  These financial institutions should be forced to modify where legitimate hardships are shows, and the ability to afford a reasonable mortgage, based on current interest rates, is present.

(4) MERS NONSENSE. MERS is transferring Deeds of Trust and the “notes therein” when MERS has never held any promissory note.  The transferring of a Deed of Trust by itself is a legal mullity.  If the “lenders” don’t have the note, (as discussed above) or the Deed of trust (the security to foreclose via the power of sale), then there should be no foreclosure.

(5) ROBOSIGNER EPIDEMIC. Where banks have to cheat and have people singing documents without reading them, making declarations when there is no personal knowledge, or having notaries put their notary stamp on documents where the signor of the document did not actually appear before them or present identification, no foreclosure should be allowed to proceed.  These large financial institutions need to figure out how to comply with the law before foreclosing on people.

(6) FRAUD IN THE CHAIN OF TITLE. False declarations of compliance with California Foreclosure laws, 2923.5 declarations and robosingers on critical foreclosure documents such as Notice of Default, Notice of Sale, Susbtitution of Trustee, and Assignment of Deed of Trust (often using “Vice Presidents” who never worked for any of the companies they are purporting to sign on behalf of), etc.  These shenanigans taint the foreclosure process, and no foreclosure should proceed before the law is followed.  We are a nation of laws, not men.

(7) HAMP SCAMS. Lender and Loan servicers engage in HAMP scam and HAMP fraud.  Making people believe they qualify for a loan modification, when objectively speaking, they do not.  Or, even where borrowers do qualify, they are given the HAMP trial plan (sucking out additional mortgage payments) and then foreclosing anyway.

(8) NOTARY FRAUD. Now, when challenged with the above shenanigans, we are finding notaries that are claiming “we cannot find our transaction log” even though they have an obligation to keep their notary records.  To me, some notaries are aiding and abetting in foreclosures that do not comply with the letter of the law.

(9) ATTORNEY GENERAL LAWSUITS. Why should lenders be allowed to proceed in foreclosures when they are settling foreclosure and predatory lending lawsuits with a large number of State Attorney Generals who are calling them out for their lending practices that are crippling the economy of many states?  The lenders settles these cases for millions of dollars, and then go right back to cranking up the foreclosure machine and telling everyone else (including judges), that they have done nothing wrong.  As longs as they are speaking out both sides of the mouth, and we know they are owning up to wrongdoing, they should not be allowed to continue foreclosing on people who are victims of the mess the lenders created.

(10)               INTEGRITY IN THE SYSTEM. Until the above problems get fixed, Americans, and even foreign investors, cannot have realistic confidence in the integrity of our financial markets.  Now this is not to say that foreclosures should halt indefinitely, but until such time as the law can be followed, and bailout money be put to legitimate uses, and until the lenders care more about communities than in their own personal financial gain (remember all the big bonuses that they are paying themselves with YOUR tax dollars) they should not be permitted to run around and rape and pillage California and Arizona communities.

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