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Judge Rules Against Bank In Mortgage Modification Suit
Forbes ^ | 2/10/11 | Shah Gilani

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 ...


TOPICS: Business/Economy; Crime/Corruption; US: California
KEYWORDS: housingbubble
Well, well, well
1 posted on 02/10/2011 9:20:11 AM PST by Kartographer
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To: RideForever; FromLori; blam; Chunga85; Lurker; azhenfud; Wolfie; UCFRoadWarrior

PING!!!


2 posted on 02/10/2011 9:21:08 AM PST by Kartographer (".. we mutually pledge to each other our lives, our fortunes, and our sacred honor.")
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To: Kartographer

Judge ignores all contract law, including statute of frauds, to find a way to keep the market from operating. Must be a rat.


3 posted on 02/10/2011 9:27:46 AM PST by kbennkc (For those who have fought for it, freedom has a flavor the protected will never know.)
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To: Kartographer

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?


4 posted on 02/10/2011 9:28:53 AM PST by MrEdd (Heck? Geewhiz Cripes, thats the place where people who don't believe in Gosh think they aint going.8)
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To: Kartographer

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”...


5 posted on 02/10/2011 9:30:45 AM PST by Abathar (Proudly posting without reading the article carefully since 2004)
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To: Kartographer
The EPA will overturn this decision...


Today is a good day to die.
I didn't say for whom.

6 posted on 02/10/2011 9:31:03 AM PST by The Comedian (Muslim Brotherhood = A.N.S.W.E.R = Soros = Obama)
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To: Kartographer

The promise of a loan modification does not mean the modification is necessarily beneficial to the buyer.


7 posted on 02/10/2011 9:38:18 AM PST by Abathar (Proudly posting without reading the article carefully since 2004)
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To: Abathar

True but what do you call a promise of a loan modification followed by a quick foreclosure action?


8 posted on 02/10/2011 9:40:14 AM PST by Kartographer (".. we mutually pledge to each other our lives, our fortunes, and our sacred honor.")
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To: Kartographer
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.

9 posted on 02/10/2011 9:42:35 AM PST by PapaBear3625 ("It is only when we've lost everything, that we are free to do anything" -- Fight Club)
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To: Kartographer

In the mortgage industry, it’s called “dual-tracking”.

Ostensibly helping the homeowner with one hand, while simultaneously pursuing foreclosure with the other.


10 posted on 02/10/2011 9:43:24 AM PST by NOVACPA
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To: kbennkc

“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.


11 posted on 02/10/2011 9:44:28 AM PST by businessprofessor
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To: businessprofessor
I am not sure about contract law in this situation.

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.

12 posted on 02/10/2011 9:59:12 AM PST by kbennkc (For those who have fought for it, freedom has a flavor the protected will never know.)
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To: kbennkc

“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.


13 posted on 02/10/2011 10:04:12 AM PST by businessprofessor
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To: businessprofessor
If the debtor has no equity in the property, and Chapter 13 allows him to avoid foreclosure, then the law is an ass, an idiot.
14 posted on 02/10/2011 10:10:44 AM PST by kbennkc (For those who have fought for it, freedom has a flavor the protected will never know.)
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To: Kartographer
To ALL! Here is why banks do not do modifications They say they do but there is too much profit from foreclosures or short sales. Please watch http://www.youtube.com/user/fiercefreeleancer
15 posted on 02/10/2011 10:12:32 AM PST by 70th Division (I love my country but fear my government!)
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To: kbennkc

Yeah cause we know the banks always do whats moral and right.


16 posted on 02/10/2011 10:14:17 AM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: driftdiver
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.

17 posted on 02/10/2011 10:22:47 AM PST by kbennkc (For those who have fought for it, freedom has a flavor the protected will never know.)
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To: Kartographer
"True but what do you call a promise of a loan modification followed by a quick foreclosure action?"

She got screwed, of that there is no question.

18 posted on 02/10/2011 10:26:43 AM PST by Abathar (Proudly posting without reading the article carefully since 2004)
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To: kbennkc

“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.


19 posted on 02/10/2011 10:30:54 AM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: driftdiver
The banks bought and paid for the laws which allowed them to destroy our economy.

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

20 posted on 02/10/2011 10:48:02 AM PST by Notary Sojac (We have had three central banks in America's history: two of them failed and so will this one....)
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To: Kartographer
I don't put this into the same category as the other foreclosure frauds.

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".

21 posted on 02/10/2011 10:54:58 AM PST by Notary Sojac (We have had three central banks in America's history: two of them failed and so will this one....)
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To: NOVACPA

They may call it that but it is still bait and switch.


22 posted on 02/10/2011 10:57:49 AM PST by Domangart
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To: driftdiver
There most certainly is morality in business. To think otherwise demonstrates a black heart.

To see things as you wish they were, instead of how they are, must make fixing blame easy but problem solving hard.

23 posted on 02/10/2011 11:02:04 AM PST by kbennkc (For those who have fought for it, freedom has a flavor the protected will never know.)
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To: Notary Sojac

“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.


24 posted on 02/10/2011 11:04:04 AM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: kbennkc

“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.


25 posted on 02/10/2011 11:07:05 AM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: driftdiver
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.

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?

26 posted on 02/10/2011 11:15:04 AM PST by kbennkc (For those who have fought for it, freedom has a flavor the protected will never know.)
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To: Notary Sojac

“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.


27 posted on 02/10/2011 11:16:49 AM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: kbennkc; driftdiver

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.


28 posted on 02/10/2011 11:19:18 AM PST by Ratman83
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To: kbennkc

‘Please explain to this black hearted ignoramus, as you have called me”

yep

“how you decide the amount you pay your employees or the prices you place on your goods and services.’

Negotiations

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.


29 posted on 02/10/2011 11:20:20 AM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: Ratman83

“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.


30 posted on 02/10/2011 11:21:25 AM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: driftdiver
When an intermediate appellate court rules , reversed in part, affirmed in part, remanded with instruction, it rarely means THE END.
31 posted on 02/10/2011 11:24:25 AM PST by kbennkc (For those who have fought for it, freedom has a flavor the protected will never know.)
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To: driftdiver
Well the large banks and bank policy are largely run by leftists.

That would have to include Henry Paulson, who created TARP, the GOP controlled Senate that confirmed him, and GWB, who signed the legislation.

32 posted on 02/10/2011 11:29:45 AM PST by Notary Sojac (We have had three central banks in America's history: two of them failed and so will this one....)
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To: Notary Sojac

Yes GWB signed the bill.

Do you have a point? Are you trying to say GWB is part of Al Queda?


33 posted on 02/10/2011 11:50:30 AM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: kbennkc

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.

/s


34 posted on 02/10/2011 11:51:31 AM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: driftdiver

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.


35 posted on 02/10/2011 11:53:23 AM PST by Notary Sojac (We have had three central banks in America's history: two of them failed and so will this one....)
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To: driftdiver

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


36 posted on 02/10/2011 11:58:19 AM PST by kbennkc (For those who have fought for it, freedom has a flavor the protected will never know.)
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To: Notary Sojac

“I’m 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.


37 posted on 02/10/2011 12:00:27 PM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: kbennkc

“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.


38 posted on 02/10/2011 12:03:21 PM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: Notary Sojac; All
UPDATE 1-Freddie Mac COO Witherell resigns

Dude probably wants more quality time with his family...

Ok, What's The Real Story? (WFC)

$nip>

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.

$nip>

Same for this sleaze...the fraud bubble is getting close to popping...and they know what's coming.

39 posted on 02/10/2011 12:15:06 PM PST by Chunga85 ("Foreclosure Fraud", TARP, "Mortgage Crisis", Bailout)
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Comment #40 Removed by Moderator

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