Tag Archives: justice

The institutional manufacturing of the foreclosure process

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October 21, 2019. By Douglas Boggs

The institutional manufacturing of the foreclosure process begins with the servicer advising the borrower to stop payments to make sure it puts them in a better position for a modification. So, the servicer advises a homeowner to fall behind on their payments in order to qualify, if they wish to obtain any government sponsored relief. The distressed homeowner does as advised and falls behind in order to qualify for the government sponsored mortgage relief program and is subsequently placed in default. This is textbook and this common process has happened to millions of people across the United States.

The Servicer immediately cashes a credit default swap for some percentage of the mortgage balance and has some split with the investor. Now, make a note that the investor’s are those who invest in mortgage backed securities(MBS) and hedge funds that untilize MBS’s as investment vehicles. They are the owners of the note once the note is securitized. Also note, that if they are the owners of the note, this means that the chances that the foreclosing party holds a near 90% chance that they hold absolutely NO right to foreclose. But, this is a differentt story for later and some of which I have previously posted herein this blog. Ok, moving on now, then the servicer would send 10 or 15 sets of mortgage modification applications to the homeowner and collect payments of $300 each under their HAMP servicing agreement with the fed.

Following this, they offer a trial modification to the homeowner and promise that it will convert to a permanent modification if the homeowner makes all of their payments on time. The bank loses the paperwork 3 or 4 times and charges the fed each time they process a new application and charges the fed again for sending the 3 new applicatons to the homeowner.

The homeowner is approved for the temporary modification and starts paying the narrowly reduced payments while the servicer dual tracks the homeowner for foreclosure and hires LPS, the parent company to LSI Title to file some fraudulent assignments in the name of the deceased bank the servicer bought the servicing rights from (countrywide, world savings, indymac, whoever) .

The servicer shoplifts the temporary payments while the homeowner thinks they are going to the mortgage-backed-security(MBS) towards P&I thus putting the homeowner further behind, allthewhile fucking their own MBS investor. The servicer gets paid a fee by the fed for servicing the temporary mod under their HAMP servicing agreement. The servicer denies the modification and forecloses on the property and collects a fee from the investor for servicing the foreclosure and collects an 80% FDIC loss share payment from the FDIC which it splits with the investor.

The house is sold, usually to a company that buys foreclosure properties in bulk for less than their retail value which is done to manipulate the real estate market, and the investor recovers the REO value less the banks REO sale fee.  The company that buys the foreclosed property works with the servicers in order to manipulate the market as a whole. In my case, I found a corporate maze of over a dozen corporations tied to two individuals that use this process to hide assets. The judge was privy to this and quite friendly to the party in question. Perhaps on the take, or perhaps they play golf. However, well versed with each other.

The Non Judicial foreclosure process is a fast food style of law where the Unlawful Detainers get stream lined and rubber stamped by the Judges because the Judges are making a profit on each property in the process as a percentage to look away.

The only reason any of this could take place is due to the fact that the Legislation changed the Servicing powers and the ability to transfer the trusteeship of the Deed of Trust. The Registrars and everyone else mistook this legislation to mean that the Trustee can be reassigned by the Beneficiary or Servicer and possess the rights of the primary Trustee named on the Deed of Trust that was originally signed by all of the parties.

The illegal government rubber-stamped dismantling of the middle class. How can you ever stop a ruling class from doing something that is this lucrative???

So, to do a short recap. There are branches of the Wall Street financial institutions that are manipulating the mortgage back security markets, collateralized debt obligation markets, paying off the Security rating agencies. The government is complicit in the manipulation of the real estate markets, the modification programs, the rating agencies, the Security and Exchange Commission, and the FDIC. The Wall Street financial institution then work the other side of the con with the large foreclosure firms that are in bed with the judicial system. The back door payments to the judges, or as the padding of their retirement pension funds through the financial institutions, the justice system looks the other way. All of this happens when a borrower signs for a mortgage loan. Despite the fact that the financial institution is not even actually lending any money to the borrower, but simply manipulating the monetary process in its spreadsheet.

Little does the homeowner know that their signature also allows the trustee, who is partners with the financial institutions, to be able to steal their home any time, any day, no matter what. You think your home can’t be taken even if you are current on your mortgage payments, you a gravely mistaken. If you think your home can’t be taken from you even if you paid CASH, you are gravely mistaken. This is done through the systemic unregulated fraud that the financial institutions and the government are fully cognizent of and are complicit in order to work at such a massive systemic level. The legislation allowed this illegality to transpire, despite the settled (1978) CA Supreme Court decision that the trustee is to be independent of the transaction between the borrower and the lender. So, the government complicity is paramount from legislative to justice.

The fallout is not simply the defrauded homeowner. The economic fallout are the hundreds of millions of dollars that the County Registrars across the nation are defrauded from through the creation of MERS. The bailouts for the financial institutions will continue, plus they write off the legal penalties for the taxpayer cover. The tax payer feels a bit better when the banks are penalized for millions, only to find it hidden in the “make America great again” tax overhaul for the wealthy. Steve Mnuchin was previously a foreclosure king if you didn’t recall.

Nothing has changed. It all has become more streamlined from Wall Street, through the White House, onto the floor of the house, and “trickling down” into the Main Street U.S.A.’s across the country. The writing is on the walls of justice that the world is still turning the way the system was designed to do, as the Trump administration and the Supreme Court is looking into the constitutionality of the Consumer Finance Protection Bureau.

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