Posted by ikando on 2/5/12 10:41pm
Msg #410980

Long, but interesting, NY Times article on foreclosures

Published 2/4/12.

http://nyti.ms/ysjBx5

Reply by jba/fl on 2/6/12 7:22am
Msg #410996

Page 2: "“From my own personal experience and 20 years of research and investigation, nothing — and I mean nothing — that a bank, lender, loan servicer or their lawyer says or puts on paper can be trusted and accepted as true,” Mr. Lavalle said. "

Page 4: "The potential for mayhem, the report said, was serious. Anyone who gains control of a note can, in theory, try to force the borrower to pay it, even if it has already been paid. In such a case, “the borrower would have the expensive and unenviable task of trying to collect from the custodian that was negligent in losing the note, from the servicer that accepted payments, or from others responsible for the predicament,” the report stated. Mr. Lavalle suggested that Fannie return the paid notes to borrowers after stamping them “canceled.” Impractical, the 2006 report said. "

Gives new meaning to those duplicate notes some want and the argument that the numbers are identical and therefore cannot be collected twice. Since there is already so much fraud and abuse, this appears to be just another method. Impractical to return note marked paid?! What a small thing to do....or so one would think.

Good article icando - thank you. Food for thought for the week.

Reply by rolomia on 2/7/12 6:33am
Msg #411072

It's unfortunate that the federal government took over control of Fannie Mae and Freddie Mac. Because, in so doing, they protected both companies, their officers and shareholders from ALL lawsuits. As anybody who pays attention knows, you cannot sue the federal government or any institutions or entities under their control. And, you thought the federal gov't. did this to help homeowners/borrowers?! Yeah. Right. Get a clue. It's too bad that even this forum cannot generate much interest in this article. Just goes to show that such improper and illegal banking practices continue to flourish because Americans would rather bury their heads in the proverbial sand than take action. Hopefully, the problems mentioned in the above article will be corrected. But, probably not. Maybe you'll care when it happens to you. But, I suspect not, even then. How sad!

Reply by JanetK_CA on 2/7/12 9:15pm
Msg #411108

Wow! Great - but sobering - article. Tks for posting! n/m