The details: Where foreclosure fraud happens
Barry Ritholtz gives the best explanation of foreclosure fraud I have seen, not to mention trenchant criticism of what's going on. Below are the steps of the foreclosure process that have been contaminated by fraud, according to Ritholtz. His whole post is worth reading.
4) Affadavit by the bank’s representative are signed attesting to: Ownership of the note, who the borrower is, the property in question, the date of last mortgage payment, amount of delinquency, tax escrow owed, other payments (such as homeowners insurance);5) Notarized documents: A Notary Public affirms that the affidavit was actually signed by the signatory, and this allows it to be entered into the court as documentary evidence;
6A) Notice of Pendency (Lis Pendens) is filed with the County Clerk putting the world on notice as to the foreclosure action;
6B) Summons and Complaint are prepared by bank attorneys, who further verify the specific information attested to by the bank executives. The attorneys then file the Complaint, commencing the Foreclosure Action;.
7) Service of Process is filed, either hand delivered to the home owner, or nailed to the door of the home;
Comments
Mike Konczal at Rortybomb has a longer version which is also quite good. (Five parts; first here, with links to the rest.)
Posted by: hilzoy | October 12, 2010 8:16 PM
ear All:
Please pay close attention to a recent california published opinion, Malkoskie v. Option One Mortgage Corp., 188 Cal. App. 4th 968, 2010 Cal. App. LEXIS 1658 (Cal. App. 2d Dist. 2010; which upheld THE "RIGHT " of a stranger with no assignment of the note and deed of trust, to foreclose and evict, when the trustor stipulated to possession
The complaint meticulously laid out the fact, (and the Court recited same in its summary of the case) that Wells Fargo had no standing to foreclose or evict due to the fact that the assignment of the note it received from Option One was void due tot he fact that Option One received its assignment four months AFTER the foreclosure and TWO month after the eviction……rather than focus on the standing issue the Court claimed the seminal issue was an irregularity of the sale ( a trustee without a power of sale foreclosed) which was cured by the stip for posssession,,,,,,,,,,In essence in californian if you don't own the note YOU CAN FORECLOSE as long as you are willing to perjure yourself in a verified UD complaint.
There are rules for trustors BUT no rulesfor strangers without standing…they now can foreclose in California due to the “largesse” of Div 8 of the Second District Court of Appeals…………………{PLEASE NOT TWO JUSTICES,jUSTICE GRIMES AND BIGELOW OF THE THIS COURT ARE UP FOR REAFFRIMATION IN THE NOVEMBER ELECTION….GET RID OF THEM!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Posted by: fred | October 18, 2010 12:33 PM