Skip to comments.Judge Rules Against Bank In Mortgage Modification Suit
Posted on 02/10/2011 9:20:07 AM PST by Kartographer
A recent ruling by a California appeals court clears the way for fraud charges against a lender that promised a loan modification but then foreclosed on the borrower.
The ruling throws into question the legality of hundreds of thousands of foreclosures.
Not only was the ruling a frontal assault on the empty promises made by servicers and banks, the case highlighted some despicable tactics often employed to force foreclosures.
(Excerpt) Read more at blogs.forbes.com ...
Judge ignores all contract law, including statute of frauds, to find a way to keep the market from operating. Must be a rat.
Anyone still surprised?
Perhaps some of the Freepers who were trying to claim there was no housing bubble back in 2007 will now tell us this is fake?
How dare this judge, thinking he has a right to impugn and sully the good reputation of the mortgage industry with accusations like “despicable tactics”...
The promise of a loan modification does not mean the modification is necessarily beneficial to the buyer.
True but what do you call a promise of a loan modification followed by a quick foreclosure action?
At a time when many borrowers responding to impending foreclosure by trashing the property, I would call it wisdom.
In the mortgage industry, it’s called “dual-tracking”.
Ostensibly helping the homeowner with one hand, while simultaneously pursuing foreclosure with the other.
“Judge ignores all contract law, including statute of frauds, to find a way to keep the market from operating. Must be a rat.”
I am not sure about contract law in this situation. It seems that both parties were looking for advantage. The gullible home owner was duped by the bank. The bank’s tactics were clearly underhanded although I am not sure if the practices were illegal. She was trying to gain leverage by filing Chapter 13. It is easy to take her side because she is an individual against a large corporation. I see this case as a battle between the note holder and home occupier.
None of us can be really sure without reviewing the documents and facts , but I am pretty sure of one thing. If the home buyer had made his payments as agreed there would not have been a foreclosure.
“None of us can be really sure without reviewing the documents and facts , but I am pretty sure of one thing. If the home buyer had made his payments as agreed there would not have been a foreclosure.”
I agree so my sympathy does not go with the home occupier. I am not sure about the morality of Chapter 13 to avoid foreclosure. One could argue that Chapter 13 provides incentive by home occupiers to stiff the note holders.
Yeah cause we know the banks always do whats moral and right.
Banks are not trying to get into Heaven. There is no such thing as moral in their world and right means what a court allows them to do.
She got screwed, of that there is no question.
“Banks are not trying to get into Heaven.”
Banks are run by people.
” There is no such thing as moral in their world and right means what a court allows them to do. “
There most certainly is morality in business. To think otherwise demonstrates a black heart.
The banks bought and paid for the laws which allowed them to destroy our economy. The same economy which now impacts so many people.
Question for discussion:
In the first decade of the twenty first century, which group did more damage to the United States?
A. Al Qaeda
B. The investment banking industry
If I'm being foreclosed on, I have a legal right to insist that the bank produce provenance to the mortgage note.
I don't think I have a right to demand that the bank keep a "promise".
What the bank has done here is legal, even though we may not like the attitude expressed by their action.
But --- sauce for the goose, sauce for the gander. If someone is way underwater on their mortgage to this bank and simply mails in the keys, the bank has forfeited any right to talk about "lack of integrity".
They may call it that but it is still bait and switch.
To see things as you wish they were, instead of how they are, must make fixing blame easy but problem solving hard.
“In the first decade of the twenty first century, which group did more damage to the United States?”
Well the large banks and bank policy are largely run by leftists. The leftists and radical islamists are working together.
“To see things as you wish they were, instead of how they are, must make fixing blame easy but problem solving hard. “
To pretend that money is the only factor in business is a sign of ignorance. I’m a small business owner and know a LOT of business owners.
All a bean counter does is run a business into the ground.
Please explain to this black hearted ignoramus, as you have called me, how you decide the amount you pay your employees or the prices you place on your goods and services. The Bible? Moral authority? What they truly need in your opinion? Or what the market will bear?
“I don’t think I have a right to demand that the bank keep a “promise”. “
I disagree, if you enter into negotiations with the bank both parties should meet the conditions as agreee. Both parties contend the purpose of the negotiations is to correct the default status and keep the owner in the home.
The bank tells the owner that if they make payments of a certain amount then the bank will modify the mortgage amount and bring them current.
The owner meets the requirements of the negotiations but the bank fails.
Well the bank just found out what they did was wrong, according to the judge so you should have no problem with the bank being slapped on the wrist.
‘Please explain to this black hearted ignoramus, as you have called me”
“how you decide the amount you pay your employees or the prices you place on your goods and services.’
People buy based on emotion. Money is only one of the factors which will generate emotions. Study after study has shown that money is not the primary motivator for most employees. Nor is money the primary motivator in most sales.
In this case the banks only focused on the short term financial gain. They collected their bonuses but have decimated their market and a significant portion of their customers. Hows the housing industry doing? If your theory were correct the housing market would be doing great.
“Well the bank just found out what they did was wrong, according to the judge so you should have no problem with the bank being slapped on the wrist.”
Whats good for the borrower is good for the lender.
That would have to include Henry Paulson, who created TARP, the GOP controlled Senate that confirmed him, and GWB, who signed the legislation.
Yes GWB signed the bill.
Do you have a point? Are you trying to say GWB is part of Al Queda?
Yes we would not want the banks to be subject to the rule of law. They have good lawyers, the law should be whatever they want it to be.
I’m saying that the corruption of our government by the banking industry is completely bipartisan. The GOP is as much to blame for the bubbles and busts as are the Rats.
Since you claim to possess such superior moral knowledge,
May Heaven forgive you for negotiating. The inequality of bargaining positions has been among the most abusive of all the capitalist exploitations.
I hope your expropriating of the surplus value of labor does not require you to spend eternity in a lake of fire. Oh I almost forgot/s
“Im saying that the corruption of our government by the banking industry is completely bipartisan.”
I agree there are people on both sides. However the left is far far worse. The sheer numbers of corrupt leftists far outweighs the ones on the right. Perhaps they are just more practiced.
“Since you claim to possess such superior moral knowledge,”
Well it doesn’t take much to know there is more to business than just the worship of money. Heck even most 3rd graders know that.
“May Heaven forgive you for negotiating”
Negotiation is not a sin.
Dude probably wants more quality time with his family...
Wells Fargo & Co. Chief Financial Officer Howard I. Atkins resigned for personal reasons, taking an unpaid leave of absence, and will be replaced by Chief Administrative Officer Timothy J. Sloan.
Same for this sleaze...the fraud bubble is getting close to popping...and they know what's coming.