Banks Lose to Deadbeat Homeowners as Loans Sold in Bonds Vanish
Feb. 22 (Bloomberg) -- Joe Lents hasn't made a payment on his $1.5 million mortgage since 2002.That's when Washington Mutual Inc. first tried to foreclose on his home in Boca Raton, Florida. The Seattle-based lender failed to prove that it owned Lents's mortgage note and dropped attempts to take his house. Subsequent efforts to foreclose have stalled because no one has produced the paperwork.
``If you're going to take my house away from me, you better own the note,'' said Lents, 63, the former chief executive officer of a now-defunct voice recognition software company.
...
Lents's attorney, Jane Raskin of Raskin & Raskin in Miami, said she has no idea who owns Lents's mortgage note.
``Something is wrong if you start from what I think is the reasonable assumption that these banks are not losing all of these notes,'' Raskin said. ``As an officer of the court, I find it troubling that they've been going in and saying we lost the note, and because nobody is challenging it, the foreclosures are pushed through the system.''
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Awesome article.
45 comments:
Simply wrong from the start,... or first.
Dang it! I come in second again! That's what I get for getting some work done.
Oh well. The VPs wanted this report today before noon... better finish up...
Perhaps people should start requesting a copy of their notes. If the bank cannot produce it, stop paying them and put the money into a savings account until they can.
Somebody whose house is in foreclosure, but yet they have enough money to retain a lawyer?
As awful as the bank has been, its incompetence is only matched by the audacity of someone living rent-free in a $1.5MM house, and retaining a lawyer to ensure that the free living arrangements continue indefinitely at the bank's (and its shareholder's) expense.
But PV, that's the American way!!!
Got a problem in your life? It's not really yours, find someone else to (sue / blame / pay for it / handle it) (pick all that apply).
I am fascinated by the McCain corruption stuff coming out at this moment. The probability is it will blow over. But if it is real and McCain self distructs over the next week, Huckabee will win Texas and lay claim to being the Republican Front runner.
Praise the Lord!
The only sane thing then would be for Romney to re-enter the race and McCain to give him his delegates.
McCain hates Romney. Besides, how many more states are there after March 4th?
My first read is that the hit pieces on McCain are backfiring.
Romney is a smart fella. He entered with three outcomes possible he could look like Reagan or Clinton or both. Turns out he is Reagan '76 and will be in position to be Reagan '80 and '84.
No, McCain will stroke himself and the media will give him the rope. Why anyone would want to be President for the next 4 years is beyond me.
McCain could drop dead at the opening of the convention and Huckabee STILL wouldn't get the nomination. The delegates would find someone else.
Let's face it, Huckabee could not beat Obama or Clinton under any circumstances. The Repubs are not going to hand the White House over to the Dems.
1st read indicates they are backfiring. But if there is truth behind them, McCain won't get the nomination. The hit is also dragging up Keating 5 and McCains use of lobysts
Romney is smart, but a significant portion of the Republicans would have conniption fits if Huckabeee became the candidate. I also think the Democrats are going to be in for 8 years after Bush.
Hopefully global warming will raise the oceans and clean up this mess in Florida. Anyone want to wager on whether or not Joe has kept up his insurance ?
I wonder why Bloomberg didn't mention that he was CEO of company involved in pump and dump scheme.
http://www.sec.gov/litigation/admin/34-50479-o.pdf
the only Democratic candidates to win in more than 40 years have been white guys from the south.
unless you think either Clinton or Obama is more charismatic than JFK.
no, it isn't different this time.
I am not feeling fine; in fact I'm feeling pretty f-ing far from fine.
What I'd like to see is Dick Cheney wrapped in duct tape like a Pandora's box from hell.
Akubi, I understand your frustration. If I am a conservative and upset with the way the current administration has handled the economy it must really hurt liberals. That being said, I would completely prefer to hang out with Cheney than Gore.
Rob, I hope you appreciated the pitch fork needling. I also am convinced we are in for a long (generational) swing towards protest socialism and inevitable fiscal break down as a consequence. There was a reason we had 90% tax brackets on the wealthy after the depression. There is nothing we can do about it (just like global wraming).
Akubi, don't get upset about global warming. There is nothing we can do except invent alternative energy if it is possible. Driving a Prius instead of an SUV makes little difference. So what if it takes 200 years to use up oil instead of 100 years? If we transfer sequestered carbon out of the Earth's crust into the carbon cycle on the surface then it is not going back for 100's of millions of years.
W, you might want to rethink that. Gore can be a wet blanket, but past performance suggests that he's somewhat less likely to shoot his friends in the face.
W,
How about not driving?
I've been saying it my entire life and I'm fucking sick of saying it.
In addition, ballroom dancing is on PBS and it annoys the hell out of me. What's the point?
Now, how does Israel fit in?
Israel?
You are right no driving. No computers. And 90% of our population behind a plow/loom/lathe. With just a little modern technology we could really lead lives similar but much more improved than our ancestors pre 20th century.
Ogg, definitely something to be aware of! But doesn't change my thinking at all.
Rob,
Do you have stats on the percentage of home owners that are now in financial trouble because of HELOCs?
Harish,
You ask an impossible question. Not just teasing out cause and effect but precedent and antecedent. The number of 20% down 30yr fixed 3.5x income buyers in trouble is next to nothing. At the other end of the spectrum is the family who took out a large but responsible loan for medical expenses only to have prices crash and income dwindle. Are the latter in trouble because of the HELOC? I'd say no but there's no way to tell just from data.
Thanks for the answer.
I rent in a Portland suburb, waiting for prices to fall more before buying. It's clear to me that many folks in the neighborhood are desperately trying to sell. Since they've been in their homes for 6+ years, my guess is that their problem isn't a NINJA mortgage but an out of control HELOC. That's why I'm interested in finding out how pervasive this situation is.
The Republican Party is essentially a religious cult, taken over ny Sun Young Moon and others. Huckster will prevail.
@W,
Nevermind, I'm just in a bad mood because I'm doing my taxes this weekend and I hate seeing my $ go to Iraq.
Harish,
Portland is going to be an interesting case in the next few years. They tried to become a big city but may end up with only big city problems. The Pearl is a showcase for New Urbanism and MAX is a transit wet dream. I personally think they are both going to prove embarrassments in a downturn.
By not participating fully in the run up Portland doesn't have as far to fall but as you noticed lots of the new residents were/are living beyond their means and their demise is going to hurt everything from Powell's to light rail.
BTW, would anyone happen to know if dual cell honeycomb shades fall under the energy-efficient home improvement deduction?
It seems to be a bit of a "gray area".
Take the deduction, IMHO.
The IRS never blinked when I was deducting almost 6 figures on my mom's taxes (nursing homes are expensive)
Rob,
I moved to the Portland area in 2005, and so I'm not fully aware of its history. For your comments, it sounds to me that continue renting for the foreseeable future might be a better option.
I wouldn't want to see the effect of big city taxes or big city problems in a place which doesn't have a solid economic base/support.
@Bill,
Take the deduction, IMHO.
Yes, after further research I think it probably falls under the insulation category. Now I just need to find the receipt...
Akubi, I believe fishnets are at least a type of indoor insulation. Perhaps worthy of some consideration?
Whatever happened to that undead lobbyist?
I simply do not understand English humor.
@w,
Elina is making the most of her energy efficient fishnet deduction.
http://www.mercurynews.com/realestatenews/ci_8344134?nclick_check=1
Is this selective statistics to make a story or the sort of news some people don't want to hear?
Is it accurate? Possible line of enquiry for you, Rob?
RobDawg said:
No, McCain will stroke himself and the media will give him the rope. Why anyone would want to be President for the next 4 years is beyond me.
I'll concur with both parts of the post. The one worth discussion is who would want to govern the meltdown?
I know its an older article, but when California has its bond rating dropped and is forced to cut spending... It will rock the state. But it won't be anything compared to Florida.
Got Popcorn?
Neil
Personally, I'm feeling fiscally angry and pissed off - and seeking other deductions.
Fishnets are a pleasant Jane Austin side-story, but I'm still pretty fucking pissed off...and I do not like Pop CORN!
Coincidence that banks are unloading VISA right now?
I wish I could collect a dollar for every time the phrase "sovereign wealth funds" will be mentioned in connection with the VISA IPO.
Rob -
Might be worth a top post of its own.
http://www.cnn.com/2008/LIVING/personal/02/22/financial.security/index.html
Second wave starts to hit - now that the HELOC ATM has been shut off, credit cards balances (and problems) are climbing FAST.
Doing your taxes without being fully prepared is pure folly. By “prepared” I mean first calculating your T.R.I.P., i.e., The Refund I Prefer.
Calculating your TRIP requires an in-depth analysis of your future expenses for home improvements, consumer electronics, vacations, hookers, and recreational drugs. You then take this number and multiply it by a “stick it to the man” factor of between 1.1 and 100.
Of course if everyone did this we would no doubt have to sell our hospitals to the ChiComms, so let’s just keep this amongst us girls. Not that the IRS is completely blind to this widespread practice, hence new legislation allowing Agents the power to hold people upside down and shake them until all the money falls out of their pockets.
The new powers were deemed necessary after it emerged that some people still had the odd penny left in their clothing. A friend of mine working for the IRS said: “It is obvious to me from the way stuff keeps getting bought that many people in this country still have money after we have supposedly finished with them. That is as unacceptable as it is astonishing.”
@Funny Circus Bears
I hate taxes.
There is a hooker write-off? Is that like energy efficient fishnets and such?
Thankfully one of my dogs has been amusing me with his poop art.
If things don't change I refuse to pay taxes any longer.
@ Akubi:
Hookers and blow are a legitimate deduction if they're used for business purposes, but not for personal use.
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