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Archive for October, 2010

More Foreclosure in Nevada and Continuous Rob-

Signature Controversy

In Bankruptcy by Malik Ahmad, Complaint and Answers To Complaints, Foreclosure: How to Avoid Them?, How to Stop Foreclo

in Nevada?, Loan Modification on 10/03/2010 at 3:29 pm 

WE had been stressing throughout this foreclosure ordeal in Nevada that there is something more messier the

what is visible on the face ( prima facie). WE are witnessing more bad news as JPMorgan Chase halted 56,00

foreclosures amid doubts that it had correctly followed laws on the foreclosure process. This news came soonafter the announcement from GMAC Mortgage when suspended an undisclosed number of foreclosures to ga

time to check its legal procedures. Now, Bank of America has announced similar measures. No one cared for

this before the bubble as that was the notorious days for “no doc”, “low-doc” loans. Unfortunately, same spirwas shown in creating rapid foreclosures by mass production of these forged signatures, and foreclosure defa

notices and avoidance of states notice laws. After the bubble, banks, mostly large banks had consistently app

all kinds of tactics to frustrate federal government help in denying loan modifications of all sorts by either 

straight denial, or by hiring incompetent people, not supporting enough telephone lines or asking too much an

needless paperwork. Now we learn that foreclosures, the end of the mortgage pipeline, have also been handlewith a disregard for rules and standards. Here, we can see nothing but a continuous pattern of ineptness and

incompetence. At issue now are affidavits that a foreclosing lender must file in many states’ courts. The persosigning the affidavits attests to having knowledge of important facts, like the lender’s legal standing to forecl

and the amount owed. But in a rush to process hundreds of thousands of foreclosures, it turns out that the sign

at Chase and GMAC processed 10,000 or more documents a month — “robo-signing” in industry parlance —without personal knowledge of the facts. They were like signature machines affixing their signatures on

thousands of documents without testing its reliability or authenticity.

We can not satisfy ourselves that hundreds and thousands of families have lost their homes while legal proces

was denied to them by these rob signature machine production of documents. Now, most of these crooked ba

had stopped this process but what about people whose homes has already been foreclosed and their credittarnished for the rest of their lives. Let us hope that banks learn some lesson. Some 700 or more of them had

already closed, and some of them are still teetering on the brink of a disaster, but of course they never learn. Tthe extent the suspensions ensure a process that is legal and fair, they are to the good. But delays feed

uncertainty, and that could be bad for the economy. Will they result in fewer foreclosures, helping to prop up

 prices? Or will they create a backlog of foreclosed homes that will push prices down when they come to mark

As we know that the central weakness in the administration’s antiforeclosure efforts is that participation bylenders has been voluntary. Banks should be advised to have their participation mandatory. The robo-signing

scandal is yet another reminder that it is folly to rely on banks that got us into this mess to get us out. The Ob

administration needs to revise its ways to help people. It would be good to fire Treasury secretary at this time

That would revive some of the lost expectations of Obama administration. 18 months is too long to have somteeth in the administration hands to curb this rising trends of foreclosure in Nevada. A recent article publishe

 NY Times indicates how bad the economy is in Nevada at this time.

http://www.nytimes.com/2010/10/03/us/03vegas.html?hp

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Robo-Signing Controversy? What is it?

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In Bankruptcy by Malik Ahmad, Complaint and Answers To Complaints, Foreclosure: How to Avoid Them?, Loan Modification,

 Nevada bankruptcy attorney Malik Ahmad on 10/02/2010 at 1:33 pm 

The “robo-signing” controversy over lenders’ allegedly lax foreclosure procedures is picking up momentum,

with the Office of Comptroller of the Currency ordering the nation’s largest lenders to review their foreclosur

 processes. The robo signature identifies a process where a signature is affixed on the default notices, or othermortgage documents without reliable means or authenticity thus accelerating the foreclosure process. This

denies all the legal avenues available to a distressed homeowners. The OCC has directed Bank of America, J

Morgan Chase, Citibank, HSBC, PNC Bank, U.S. Bank, Wells Fargo and GMAC Mortgage to make sure theare following proper procedures. Basically, this robo controversy is alive when banks foreclosure departmentstreamlined the foreclosure process by falsely submitting affidavits, and forged signature. Also, this included

 bypassing state foreclosure procedure and notice laws. The foreclosure machinery in the banks are slowing d

the process of streamlining this foreclosure process of rapid home repossessions.

This would also slow down evictions sharply. The questionable foreclosure would considerably slow down if

completed halted. Also, this would slow down resolutions of short sales and outright eviction. Of course this

mass denial of distressed homeowners rights and destroyed the homeownership values throughout USA.

It may have some better consequences as this may help somewhat recovery of the real estate market. Of cour

that is a far-fetched thought. Most of the states, including Nevada, are facing large number of foreclosed homcontinuously coming to the market and depressing the neighborhoods. Some economist think that it may as

shock therabpy. This can be a happy ending but still there is lots of confusion.

As more defaulting homeowners become aware of the lenders’ problems, they are expected to hire lawyers anchallenge the proceedings against them. And if completed foreclosures were not properly done, families who

 bought the troubled homes could be vulnerable to claims by the former owners. This in nutshell a continuous

saga of despair and hope mixed together.

Old Republic National Title already sent a bulletin to its agents NO no any insurance to policies issued byGMAC Mortgage.

GMAC has acknowledged legal missteps in processing mortgages, and JPMorgan Chase has acknowledged t

 possibility of missteps, and both have suspended all foreclosures in the 23 states where they need a court’s

approval.Attorneys general in half a dozen states are demanding action or opening investigations. The Treasury

Department said Thursday it was asking regulators to look into “these troubling developments.”

GMAC and Chase are in trouble because, overwhelmed with foreclosures, they tried to process them as quick

and cheaply as possible, defense lawyers say. The companies say they are reviewing their procedures to takecare of any violations.

The missteps stemmed from the affidavits the lenders file as they seek a quick or summary judgment inthousands of foreclosure cases. The affidavits state certain facts about the case, including the amount owed,which the signer indicates he has personal knowledge of. Without the affidavit, the lender would have to prov

the facts at trial.

In depositions taken by lawyers for homeowners, executives at GMAC and Chase said they or their teams sig

10,000 or more affidavits and related documents a month. That did not give them time to review the cases.Many necessary documents have disappeared, with defense lawyers saying the lenders often do not even hav

standing to foreclose.