Foreclosure Mills Continue to Sweep Up America's Homes Despite Evidence of Fraud
Last week, Yves Smith caused a stir with this post, "Fannie and Freddie Continue to Rely on Foreclosure Mills Despite Evidence of Fraud." The 64 comments are worth a read, if anything to ferret out the boys from the men in terms of skill level in dealing with the legal issues. Smith gives acknowledgment to O. Max Gardner, who is the nation's go-to bankruptcy litigation attorney and, I am proud to say that, I am a Lieutenant in his army. So, what's all the scuttle butt about? 
Smith's post referred to another piece published by Mother Jones, "Fannie and Freddie's Foreclosure Barons," which provides a peek inside the shady document fabrication operations to cover up past mistakes in the mortgage industry and post foreclosure clean-up. What a mess.
Looking at the securitization issues from a California standpoint, we have both federal and state law to contend with. From a bankruptcy position, here in the Central District we have the In re Foreclosure cases , In re Hwang, In re Walker, and In re Vargas. Since the mortgage follows the note, we need a complete, and unbroken chain of custody of the note and adherence to the California Commercial Code. We are arguing the Creditor has no standing and even if they did, there are major computation errors in their claims. The fight goes on for now. Results may vary in California. Side effects include general frustration; nausea; possible foreclosure; and guilt for not paying your mortgage.
http://www.huffingtonpost.com/social/lawgrace/weekly-audit-foreclosure_b_677068_57349461.html
CASE IN POINT: FORECLOSURE MILLS, JUDICIAL FRAUD, CONSUMER EXPLOITATION, GOVERNMENT SHAMS (an abstract)
Unscrupulous foreclosure mill activities are more criminally exploitive than what becomes reported not only in Florida. Appalling collection abuses have resulted in mill lawyers (or their affiliates) obtaining ownership of fraudulently foreclosed properties via purported bids at auctions. Certain fraudulently auctioned properties become illegally to Freddie Mac. Some mill lawyers file into court records fee-making pleadings (summary judgments, etc) when Freddie Mac is not party to cases, and they bill $$$$ fees pretending to represent Freddie Mac. As manifest throughout my website, mills have cooperation and applause of federal and state courts.
Through falsified Bankruptcy Court pleadings, some foreclosure mill lawyers wrongfully, illegally impede homeowners restructuring debts, and discovery of the actual owners of mortgage notes. Such lawyers file falsified bankruptcy Lift Stay motions in names of either defunct lenders or lenders with no ownership of property notes. To the contrary, bankruptcy lift stay should not be granted where there's no standing since ranking and secured debt factors come into play. False bankruptcy pleadings not only help illegal property repossessions, any other creditors whom debtors owe, becomes deprived wrongfully of entitled shares of proceeds from those auction frauds; and ILLEGITIMATE deficiency judgments ; and third party debt-buyers seeking money after unfairly low bids resulted in large debt balances are also problems.
Plus, foreclosure mills work in concert with Wells Fargo. Among other things, Wells Fargo has tax advantage from fraudulent foreclosure proceedings after placing distressed homeowners names / social security numbers on false IRS (acquisition) form 1099, even when no lawful acquisition of properties occurred; such homeowners wrongfully become forced to explain these turn of events to the IRS after surprise receipts of tax bills.
People think that people who can no longer afford their mortgage should pack up and move out ignore that it is unjust to render people homeless by use of intentional, dishonest, illegal foreclosure proceedings. Foreclosure mill illegalities like David J. Sterns actually accounts for illegal foreclosures and Tent Cities which could be Anyplace, USA. Consider: Former homeowners Lawrence and Linda Elin, gave up their home after becoming victims of Bernie Madoff. (Former Wells Fargo executive Cheronda Guyton held parties after the Elins moved out; and astonishingly, permitted Guyton personal, free access to that home. A foreclosure auction had not occurred which made proprietor of property that supposedly went back to Wells Fargo (how did Collin get it?) The point being, it is possible that the Elin's unwittingly aided a foreclosure fraud which displaced them people unknowingly do it all the time! These situations are salient reasons why foreclosure fraud (on farmers, businesses, as well as residences) MUST be investigated.
it can cripple peoples abilities to move forward with their lives for a very long time and the cloaked perpetrators are often millionaires; those perpetrators are as bad as, or worse than Bernie Madoff.