January 08, 2011

US Banks Lose Foreclosure Case

Some of my early posts were about the blatant fraud of banks and the way they handle the paperwork after your mortgage payments begin. I wrote that they sold on those mortgages to other financiers but omitted to tell the home-owner. Should the home-owner fall on hard times or a change in their circumstances means that they miss a few payments, the banks in the US foreclose. The folks are booted out of their homes and the bank then resells the property. Except that they do not have the deeds in their possession. That's because they gave them to the new "owner" when they sold the mortgage on. The trouble is that the buyers also sell the mortgages on, and often, there can be multiple owners of the same property. One man found that 9 different companies around the globe claimed ownership of his home. The judge decided to give the man his deeds and threw the nine companies out of his courtroom. He did not have to pay another penny for his home. A good result.

Yesterday a supreme judicial court upheld a decision by a lower court which alters the game entirely. For a change, it is the banks that will suffer.


"A ruling like this will slow down the foreclosure process" for banks, said Marty Mosby, an analyst at Guggenheim Securities. "They're going to have to be really precise and get everything in order. It doesn't leave a lot of wiggle room."

Wells Fargo and U.S. Bancorp lacked authority to foreclose after having "failed to make the required showing that they were the holders of the mortgages at the time of foreclosure," Justice Ralph Gants wrote for the Massachusetts court.

In a concurring opinion, Justice Robert Cordy lambasted "the utter carelessness" that the banks demonstrated in documenting their right to own the properties.

Courts in other U.S. states are considering similar cases, and all 50 state attorneys general are examining whether lenders are forcing people out of their homes improperly."

The whole story can be found here.

This is a victory for the little guy. Banks have thrown good people out of their homes and they have subsequently been unable to prove that they even have the right paperwork to support their actions.

Our banks are no different. They operate in the same way and it is highly likely that they would be unable to prove that they still owned the "debt" on your home. Remember this if you are ever threatened with eviction. Demand proof. Demand that they can demonstrate a loss because you stopped paying your monthly amount. Demand also to see all the paperwork leading up to the granting of the mortgage and the paperwork generated after it was granted. People have found that their signatures have been "lifted" from one page and inserted on additional pages. This is one of the reasons you are told to "sign in the box, and don't go outside the lines". Your signature is worth millions. Keep an eye on every piece of paper you sign. Get a copy of agreements on the day you sign them just in case they decide to play silly buggers with your moniker.

Banks are not above a little fraud here and there.

So it's really satisfying when they get caught out.



mescalito said...

people 1 - banks 0

Anonymous said...


Jacobite said...

Mortgage scandal runs so deep it could spell doom for the big banks as home owners could halt paying their mortgages, I have no doubt the lanwyers are rubbing their hands togething thinking happy days, although it would not surprise me if their congress rushed through a new law to try and stop what is about to happen in other words legalise the banks fraud.
The truth is folks if fraud and complicity is removed from the finamcial sector its game over for the banks the whole house of cards comes crashing down. This is where we are, hard to believe that so called free market capitalism has come to this.

Caratacus said...

Jacobite - good points... however, free market capitalism has got fuck all to do with the banks, they are immune. In good times they slurp up the gravy and piss all over us. In bad times, they pick up their skirts, run for the hills and wait until their lackeys in government organise a bail-out. Then they come back ... and piss all over us.

If FMC applied, half the grasping corrrupt bastards would be broke and their chief execs found on street corners with a can of special brew in one hand and the other outstretched for handouts.

Going to work now - hope no-one attempts to engage me in merry badinage ref. banks today...

Jacobite said...

Caracatus I totally agree with you,we need a banking system that serves the people, what we have is a merger of goverment/bussines in other words corporate facism.

James Higham said...

Having been with Wells Fargo, I know what they mean. What worries me is that they are going to come down on the little banks but the big ones will still remain the banksters.

defender said...

Ranty, a discraseful and unlawful event happened today.
Have a look,


FireballXL5 said...


I saw this on another site, couldn't believe what my eyes were telling me. The way the WPC manhandled the BNP candidate to escort him away from the seat he was entitled to be occupying was the operation of a stasi state drone. A white idingenous candidate wanting to speak up in defence of his homeland denied free speech. Incredible.

Watching the video made my piss boil. I looked all over the MSM for coverage of this in vain, maybe it'll be on Newsnight later (lol).

If this is really what we've come to then we really are fucked. Utterly fucked.

Can we have the uprising now please. I've had enough.

Anonymous said...

Corporations and Israel between them have created a Perfect Storm.

One Black Swan in the right place and everything changes.

Look how Nations are quietly positioning themselves behind the scenes!

I rarely make predictions, but this is one everyone should know:

The Powerful have only one play left.

To pull the trigger on tyranny.

And it is not Hitler that will destroy them. It is us!

One Genghis Khan is very bad news.

Many Genghis Khan's, with a few Hitlers' thrown in will cause the mother of all shit storms.

Sorry Humanity, it is 2011 you should fear.

Balance is inevitable now.

Pull the damn trigger, cowards!

And see what really happens.

I cannot stop smiling.

It is OVER.

We will not go quietly into the night.

We ARE the night.

Anonymous said...

Work your way out of that one with your so called intellect.

You just lost the game.

I am just waiting for the penny to finally drop.

Never fuck with Mother Nature.

Darwin believed in God.

You lose!

Found A Voice said...


I've just seen the article below claiming that Statue Law is superior to Common Law. I'm at work right now and can't join in the fun, but thought you or your readers might..


Hope you're well.