"Documents submitted to a court are supposed to be true as submitted. As an attorney, if I file with a court a document in which I swore that I personally verified the information contained within the document is true, but I didn't actually do that, I'd get in real trouble. It's simple: That's fraud in the eyes of the court. GMAC, JPMorgan Chase (JPM), Bank of America (BAC) and One West Bank employees routinely sign hundreds of documents without verifying what they're signing. Those documents are then submitted to courts as if the documents were true, to enable the banks to foreclose on delinquent properties. Wells Fargo (WFC) and Citigroup's (C) CitiMortgage told The New York Times their employees do not engage in similar practices. Yet, new evidence I've found shows they have. At deadline, I was still awaiting a response from CitMortgage..." http://www.dailyfinance.com/story/c...-documents-show-citi-and-wells-also/19657686/
2 Questions First of all, how does this all end? What happens to people who have been illegaly foreclosed and what of the buyers of these foreclosed properties? Secondly, this seems to me yet another win win for the legal profession. Lawyers get paid to write laws and then they get paid again to litigate cases that arise due to poorly written laws. Surely that's what gone on here. The sheer volume of foreclosures wasn't for seen and due to this lack of vision the application of the law became impractical. What were the lenders supposed to do? Hire armies of foot soldiers to humor every little facet of the law? Am I looking at this right?
the banks - loaned money - too cheaply to too many unqualified people, that was the scam. It caused the asset to become overpriced by 300 percent in CA in my opinion. Can you imagine loaning so much risky money you can not foreclose without perjury?
---------------------------------------------------------------------------------- "Can you imagine loaning so much risky money" Hmm, banks do not understand risk? Or they bet who care if they can not pay this loan, I will package this loan and sell the risk, make money, so who care? Jem, they make a bad bet. Now they take bailout money, but still will not take the loss from home remodification to lower principal. They win on the front end, they win on the back end.
They have had 3 years to ramp up employees to locate these documents and as of yet have failed there due diligence. One would think a few free homes to homeowners would encourage these corps to ramp up employment. I mean 3 years guys, geez
The government has ordered 14 different financial institutions and lending institutions to repay homeowners which were wrongfully foreclosed on in the robosigning foreclosure controversy. The number of wrong foreclosures is not known yet, but hopefully those people will be totally recompensed. The proof is here: <a title="14 financial institutions required to pay property owners back for foreclosures" href="http://personalmoneystore.com/moneyblog/2011/04/13/banks-bad-foreclosures/">14 banks ordered to pay homeowners back for bad foreclosures</a>
Whatever fine is levied on the banks, will amount to a slap on the wrist. If the fines are large enough, and render a bank insolvent, the Fed will bail them out with taxpayer money. Win-Win. The free-market no longer exists in finance. Socialized losses, private profits...