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Texas AG moves to halt foreclosures
Houston Chronicle (via mysanantonio.com) ^ | 10/05/10 | Nancy Sarnoff and Purva Patel

Posted on 10/05/2010 6:32:41 AM PDT by Pearls Before Swine

Txas Attorney General Greg Abbott called for a halt on foreclosures Monday amid nationwide scrutiny over the way they are processed.

Notices to suspend foreclosures were sent to 27 loan servicers doing business in Texas, including Bank of America and JPMorgan Chase, the attorney general's office said. It did not have the full list of companies available late Monday.

The office also called for a halt on the sales of properties previously foreclosed upon, which might affect auctions scheduled today, and on evictions of people living in such properties.

(Excerpt) Read more at mysanantonio.com ...


TOPICS: Breaking News; Business/Economy; Crime/Corruption; News/Current Events
KEYWORDS: foreclosure; foreclosuregate; forgery; fraud; housing; mortgage; mortgate; realestate; title
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Here's more news on the unfolding foreclosure documentation disaster.

It looks like a lot of people are going to be living payment free until this mess is cleared up, and it may go Federal, as each state has its own real estate recording laws. This is an incredible mess.

In a related piece of news, I read that a number of title insurance companies will not write insurance for properties written on any homes purchased in foreclosure.

Legal eagles: I was wondering what happens if someone lives in a home, doesn't pay the mortgage, and also doesn't pay RE taxes. Normally if you don't pay RE taxes, the town forecloses, kicks you out, and auctions the property. Can they do that if the title isn't clear?

1 posted on 10/05/2010 6:32:44 AM PDT by Pearls Before Swine
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To: Pearls Before Swine
Economic Shock Therapy For Wall Street As Mortgage Lenders Could Start Falling Like Dominos
2 posted on 10/05/2010 6:36:05 AM PDT by blam
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To: Pearls Before Swine

Normally if you don’t pay RE taxes,...

In Texas if you are over 65 and you do not pay your property tax, Texas cannot take your property.

The tax accrues with interest until you die or sell the property.

This tidbit came out in a meeting from an appraisal representative of TX at a community meeting.


3 posted on 10/05/2010 6:37:31 AM PDT by Hang'emAll
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To: Pearls Before Swine

JPMorgan and another bank REALLY f**ked up on their paperwork. I wonder how many foreclosures have been completed by banks who don’t even own the property.


4 posted on 10/05/2010 6:42:07 AM PDT by montag813 (http://www.facebook.com/StandWithArizona)
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To: Pearls Before Swine

I know a guy here that got his house free and clear by order of the bankruptcy judge. B of A could not show it held the mortgage. The guy just handed $300K. I wonder if the IRS will tax him on it and start the process all over again.


5 posted on 10/05/2010 6:43:24 AM PDT by raybbr (Someone who invades another country is NOT an immigrant - illegal or otherwise.)
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To: montag813

There has been more than paperwork screw ups.....try outright fraud


6 posted on 10/05/2010 6:52:04 AM PDT by misterrob (Thug Life....now showing at a White House near you....)
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To: Pearls Before Swine

Of course what this will ultimately achieve is that homeowners will continue to live in the home, yet make no payments probably for years.

How much $$$ will this put into the economy? Living mortgage free will allow that homeowner to use the money for living high on the hog.

The banks will be the ones who get screwed, although - they already have been to the public trough numerous times in this and the last administration.


7 posted on 10/05/2010 6:52:40 AM PDT by adm5 (AMERICA HAS ONLY GOD AND THE SECOND AMENDMENT LEFT TO SAVE THE REPUBLIC. by: LibLieSlayer 3/18/10)
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To: Pearls Before Swine

Halting foreclosures here and there, because of faulty paperwork, is step one.

Step two is Barack Hussein buying votes with tax money by bailing out some of the foreclosed, using the pervasiveness of faulty paperwork as his excuse for his vote-buying.


8 posted on 10/05/2010 6:57:07 AM PDT by flowerplough (Thomas Sowell: Those who look only at Obama's deeds tend to become Obama's critics.)
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To: Pearls Before Swine

Can they do that if the title isn’t clear?


Good question. I think that you get a clear title once it goes through the tax foreclosure sale but again I’m not positive of that.


9 posted on 10/05/2010 7:01:05 AM PDT by deport (TEXAS -- Early Voting begins OCT. 18, 2010 (vote early and often)
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To: adm5

Moral hazard - people will be more tempted to not live up to their obligations...

and, in the future, who in their right mind would lend mortgage money to anyone who just might not EVER be collectible?


10 posted on 10/05/2010 7:03:03 AM PDT by MrB (The difference between a (de)humanist and a Satanist is that the latter knows who he's working for.)
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To: Pearls Before Swine

Halt foreclosures, Jail the lenders, Zeroize all debts, Cut taxes, Stop government spending, Issue a gold-based currency.


11 posted on 10/05/2010 7:18:32 AM PDT by Rapscallion (Obama - Arrogant, blaming, incompetent, anti-American, Muslim,racist, and Marxist....Is that enough?)
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To: Pearls Before Swine

I really wanted a home on the lake but I knew I couldn’t afford it. Now I’m kicking myself for being stupid enough to act responsibly, I could be fishing now.


12 posted on 10/05/2010 7:18:36 AM PDT by Oshkalaboomboom
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To: Pearls Before Swine

Halt foreclosures, Jail the lenders, Zeroize all debts, Cut taxes, Stop government spending, Issue a gold-based currency.


13 posted on 10/05/2010 7:21:21 AM PDT by Rapscallion (Obama - Arrogant, blaming, incompetent, anti-American, Muslim,racist, and Marxist....Is that enough?)
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To: Rapscallion
Halt foreclosures, Jail the lenders, Zeroize all debts...

You can't be serious. Foreclosures need to be straightened out, and nobody loves lenders.... but zero all debts? What about personal responsibility?

14 posted on 10/05/2010 7:30:31 AM PDT by Pearls Before Swine
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To: raybbr
got his house free and clear by order of the bankruptcy judge

I wouldn't say that he was handed 300 large. He got a place to live, but he won't be able to convert that to cash.

Not when there's a possibility that the true mortgage holder may swoop down at any time in the future.

15 posted on 10/05/2010 7:30:42 AM PDT by Notary Sojac ("Goldman Sachs" is to "US economy" as "lamprey" is to "lake trout")
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To: Oshkalaboomboom

Or bank one could sell your mortgage to bank 2, and you end up like this guy:

SAN ANTONIO — A man is in danger of losing his home, after his house was mistakenly valued at more than 10 times its worth.
Roque De Leon says he paid $30,000 in mortgage payments since he bought the home back in 2002. Now, the bank is foreclosing on the house.

“His house is about to be auctioned off tomorrow at the courthouse,” explained De Leon’s friend, Jorge Ramirez.

The west side home is on W. Laurel Street near Culebra. “This house, in this neighborhood… it’s very obvious, it’s not worth $350,000,” commented Ramirez.

According to the Bexar Appraisal District, De Leon’s home is worth less than $30,000.

“The bank made a mistake,” De Leon said, between tears. According to De Leon, after Washington Mutual sold his mortgage to Chase Bank in 2008, his $35,000 loan turned into a $350,000 nightmare. “Chase started rejecting my $350/month payments, and demanded $2,000 per month,” explained De Leon.

“I don’t know if I would call it computer error or language barrier,” said Ramirez, who is trying to help his friend sort out the mess. “He’s afraid he’s going to lose his house, and if we don’t do anything about it, he’ll be out in the street,” said Ramirez.

De Leon’s lawyer is advising him to file for bankruptcy, in order to stop the bank’s collection efforts. “Because of the mistake that [the bank] made, they’re going to ruin his credit,” commented Ramirez. “He won’t be able to buy anything.”

News 4 WOAI made several calls to Chase Bank. Monday, they got back to us with this statement:

“We have corrected the insurance coverage and apologized to the customer. The sale [of the home] has been postponed so we can explore all options with the customer.”


16 posted on 10/05/2010 7:32:06 AM PDT by sockmonkey (LCP: Little Cute Pistol)
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To: MrB
who in their right mind would lend mortgage money??

There are plenty of regional/local banks and credit unions that made mortgage loans to creditworthy buyers with down payments, and held the loans themselves. By and large they are doing ok.

It's the international investment banks that bought big bowls of mortgage souffles that are in trouble.

Or rather, it's us taxpayers who in trouble, since it's the big banks who have the Bush/Paulson/Obama/Geithner blackmail photos stashed away.

17 posted on 10/05/2010 7:37:08 AM PDT by Notary Sojac ("Goldman Sachs" is to "US economy" as "lamprey" is to "lake trout")
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To: Pearls Before Swine

This is a disaster for the RE market. Unless a way can be found to clear the defaulted debt, the market won’t rebound because of the foreclosure overhang.


18 posted on 10/05/2010 7:55:12 AM PDT by achilles2000 ("I'll agree to save the whales as long as we can deport the liberals")
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To: achilles2000
This is a disaster for the RE market. Unless a way can be found to clear the defaulted debt, the market won’t rebound because of the foreclosure overhang.

I agree, although I heard one opinion that this would temporarily boost prices, because it would remove foreclosure inventory, or at least slow its entry, from the market. A different interpretation of supply--available supply versus impending supply.

19 posted on 10/05/2010 8:02:32 AM PDT by Pearls Before Swine
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To: Pearls Before Swine

Maryland is poised to do the same thing

The people who will be living payment free will end up owning those homes with debt forgiveness and maybe even cash in their pockets- in lieu of class action “damages”

my prediction

meanwhile good point- who WILL pay the property taxes and homeowner’s association bills etc? Once a deadbeat....errr...poor hapless victim of evil banks... gets a free house, will he/she EVER pay another bill or assessment due on that property? Just TRY to evic’ me sucka.

Apparently honest stooges will get jacked to pull the load.

All Hail obama! mmm mm mm


20 posted on 10/05/2010 8:02:57 AM PDT by silverleaf (The lesser of two evils is still evil.)
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