PENNSYLVANIA COURT REVERSES BORROWERS’ MOTION TO SET ASIDE SHERIFF’S SALE AND STRIKE DEFAULT JUDGMENT IN FORECLOSURE BROUGHT BY WELLS FARGO AS SECURITIZED TRUSTEE: COURT NOTES SUSPECT ASSIGNMENT
December 2, 2010
December 2, 2010
A Pennsylvania Superior court, in an appeal from an Order of the Court of Common Pleas of Allegheny County, has reversed a trial court order which denied the borrowers’ motion to set aside a sheriff’s sale and strike a default judgment in favor of Wells Fargo as the trustee of a securitized mortgage loan trust. The case, Wells Fargo Bank N.A. as Trustee for the MLMI Trust Series 2005-FF6 v. Lupori, 2010 PA Super 205 (November 12, 2010) was confined to one issue: that being whether the trial court committed error as a matter of law in denying the borrowers’ motions because the record on the date of judgment lacked any evidence whatsoever to establish that Wells Fargo was the real party in interest and possessed standing to prosecute the foreclosure. The court held that the trial court so erred.
The Court noted that the Complaint alleged an assignment of the mortgage loan from First Franklin to First Franklin Financial Corporation, but made no mention of any other assignment, and nowhere in the Complaint did Wells Fargo identify itself as the owner of the mortgage. In opposing the borrowers’ motions, Wells Fargo asserted that it received an assignment of the Corporation’s rights to the mortgage on April 1, 2005. The Court found, however, that the Complaint did not comply with Rule 1147(a)(1) of the Pennsylvania Rules of Civil Procedure, and that the April 1, 2005 assignment was not in the record at the time of the default judgment, thus warranting reversal of the trial court’s order.
In reversing the trial court’s order, the Court cited to Pennsylvania law which holds that where a defect or irregularity is apparent from the face of the record, the prothonotary will be held to have lacked the authority to enter a default judgment and the default judgment will be considered void.
The Court noted in footnote 2 of its opinion that “The alleged assignment from the Corporation to Wells Fargo predates the assignment from the Bank to the Corporation. Wells Fargo argues on appeal that its assignment from the Corporation was a valid equitable assignment, despite the Corporation’s lack of an interest in the mortgage at the time it purportedly assigned the mortgage to Wells Fargo.” As the Court disposed of the matter on other grounds, the Court stated that “we need not reach this issue”.
We will thus say here what the Court hinted at with its descriptive language but which it declined to reach: the “purported” assignment to Wells Fargo was a fraud, period. It is readily apparent that Wells Fargo dummied up a fraudulent assignment in an attempt to cure the standing issue after the fact. Here, then, is proof positive of fraudulent conduct on the part of Wells Fargo in an attempt to sustain a foreclosure attempt, as we have seen time and time and time again across different jurisdictions in our cases.
Wednesday, December 22, 2010
Friday, November 12, 2010
Reality Check
Hey, it's true that some of the foreclosures out there are not necessarily caused by the banks...in other words, the homeowner may be at fault for trying to buy too much house...but the vast majority of homeowners have legitimate reasons for being upset about the process...
1. Big Banks get lots of cash (TARP funds), put into its coffers and earn big interest among many other perks.....
2. Big Banks are supposed to do a good faith review of a borrowers need for a modification...bank doesn't do that but rather it's servicers lose paperwork not once, not twice, not even three times...but in many cases up to four or five times...all the while telling the borrower they need to start over again...or they need more information...
3. The reality check: the servicers are overwhelmed, have concocted ways to tell desperate people that they can't find their paperwork...it's in process...it's in suspense or fulfillment or in the vault...all the while knowing that they are stalling until the borrower is out of money (often unemployment) and then no modification because you are not eligible, or happens to get a better job and things start looking up then not eligible because you make too much money to qualify...credit damaged significantly, heartache, emotional pain and suffering...embarassment...you name it, the borrowers are experiencing it.
4. Truth is on its way...we hope. Banks are being held accountable and in time, homeowners will be vindicated...class actions...attorney general investigations and individual lawsuits to seek a remedy for bad faith, unfair trade practices, misrepresentation...
For more information on Foreclosure litigation contact AllieDonham.com
1. Big Banks get lots of cash (TARP funds), put into its coffers and earn big interest among many other perks.....
2. Big Banks are supposed to do a good faith review of a borrowers need for a modification...bank doesn't do that but rather it's servicers lose paperwork not once, not twice, not even three times...but in many cases up to four or five times...all the while telling the borrower they need to start over again...or they need more information...
3. The reality check: the servicers are overwhelmed, have concocted ways to tell desperate people that they can't find their paperwork...it's in process...it's in suspense or fulfillment or in the vault...all the while knowing that they are stalling until the borrower is out of money (often unemployment) and then no modification because you are not eligible, or happens to get a better job and things start looking up then not eligible because you make too much money to qualify...credit damaged significantly, heartache, emotional pain and suffering...embarassment...you name it, the borrowers are experiencing it.
4. Truth is on its way...we hope. Banks are being held accountable and in time, homeowners will be vindicated...class actions...attorney general investigations and individual lawsuits to seek a remedy for bad faith, unfair trade practices, misrepresentation...
For more information on Foreclosure litigation contact AllieDonham.com
Friday, November 5, 2010
When are they going to tell the whole truth...tip of the iceberg!
JPMorgan Chase & Co., which had put foreclosures on hold in 40 states and the District of Columbia to assess whether it was following proper procedures, plans to resume seizures of homes "in a couple of weeks," the New York bank told a meeting of analysts.
Chase, the third-largest U.S. mortgage lender, imposed the freeze on about 127,000 delinquent loans last month in 23 states that require court orders for foreclosures as well as in states with more complicated non-judicial processes. California, which has a streamlined process, was not among the states where Chase stopped foreclosing.
The bank told analysts Thursday that it found problems: Court affidavits supporting foreclosures had been completed without signers' knowing the facts, and documents had been notarized without being properly witnessed. Getting the documents properly completed and refiled will take three or four months at "up to a couple million dollars a month or so just in additional work," said Charlie Scharf, the bank's chief of retail services.
But in a meeting Thursday with analysts in Boston, Scharf insisted that the errors were procedural. He said that foreclosures were justified and had been preceded by extensive reviews, repeated attempts to contact borrowers and attempts to modify loans.
The average borrower losing a home has made "not one payment in 14 months," Scharf said. "You know, in Florida it's 22 months, and in New York it's 26 months."
Problems with so-called robo-signed foreclosure documents have caused several other big loan servicers, including Bank of America Corp., Wells Fargo & Co. and Ally Financial's GMAC Mortgage unit, to impose freezes or amend huge amounts of paperwork. The companies each say that underlying circumstances justify the home seizures and that they intend to proceed with foreclosures as they sort out procedural problems.
Chase described its foreclosure issues in a lengthy presentation to a meeting of bank analysts in Boston, which also included an update on demands by investors and loan buyers that it repurchase large numbers of loans it had sold or had bundled up to back mortgage securities.
Bank of America, also addressed the demands to buy back mortgages in its presentation at the Boston conference. It said holders of mortgage securities, including Newport Beach bond investing giant Pimco and the Federal Reserve Bank of New York, were pressuring it to foreclose on borrowers faster.
Chase, the third-largest U.S. mortgage lender, imposed the freeze on about 127,000 delinquent loans last month in 23 states that require court orders for foreclosures as well as in states with more complicated non-judicial processes. California, which has a streamlined process, was not among the states where Chase stopped foreclosing.
The bank told analysts Thursday that it found problems: Court affidavits supporting foreclosures had been completed without signers' knowing the facts, and documents had been notarized without being properly witnessed. Getting the documents properly completed and refiled will take three or four months at "up to a couple million dollars a month or so just in additional work," said Charlie Scharf, the bank's chief of retail services.
But in a meeting Thursday with analysts in Boston, Scharf insisted that the errors were procedural. He said that foreclosures were justified and had been preceded by extensive reviews, repeated attempts to contact borrowers and attempts to modify loans.
The average borrower losing a home has made "not one payment in 14 months," Scharf said. "You know, in Florida it's 22 months, and in New York it's 26 months."
Problems with so-called robo-signed foreclosure documents have caused several other big loan servicers, including Bank of America Corp., Wells Fargo & Co. and Ally Financial's GMAC Mortgage unit, to impose freezes or amend huge amounts of paperwork. The companies each say that underlying circumstances justify the home seizures and that they intend to proceed with foreclosures as they sort out procedural problems.
Chase described its foreclosure issues in a lengthy presentation to a meeting of bank analysts in Boston, which also included an update on demands by investors and loan buyers that it repurchase large numbers of loans it had sold or had bundled up to back mortgage securities.
Bank of America, also addressed the demands to buy back mortgages in its presentation at the Boston conference. It said holders of mortgage securities, including Newport Beach bond investing giant Pimco and the Federal Reserve Bank of New York, were pressuring it to foreclose on borrowers faster.
Wednesday, October 20, 2010
BOA: EVER HEARD OF THE TITANIC?
NEW YORK (Dow Jones)--Bank of America Corp. (BAC) remained under pressure Wednesday as investors and analysts pulled back on its shares after mortgage-bond holders ratcheted up efforts to force the bank to repurchase loans.
Chief Executive Brian Moynihan has vowed to fight in court the allegations the banking giant didn't properly service bond deals, but his comments did little to appease investors, who sent the bank's stock down to another 52-week low--or Wall Street analysts, at least three of whom cut their stock-investment ratings on the company.
Bank of America shares were recently off 2.8% to $11.48, earlier trading as low as $11.17--a level not seen since May 2009. In the last week alone, the stock has dropped 14%, and it is the worst performer in the Dow Jones Industrial Average so far this year, off 24%.
The concerns stem from how much capital loss the bank may incur from issues pertaining to the loans. Many government-sponsored entities, such as Fannie Mae (FNMA) and Freddie Mac (FMCC), as well as monoline insurers and private investors are calling on the bank to repurchase loans and compensate for losses due to inadequate mortgage servicing.
The issue of put-backs, or mortgage returns, was exacerbated by a letter sent Monday by a group of institutional bond investors. The investors demanded the bank take back billions of dollars in failing mortgages originally issued by affiliates of Countrywide Financial Corp., which was acquired by Bank of America in 2008.
While praising Bank of America's fundamentals, Stifel Nicolaus & Co., Deutsche Bank Group and Oppenheimer & Co. reluctantly downgraded their ratings on the stock.
Stifel, which cut Bank of America to hold from buy, said the action "goes against our better fundamental analysis/judgment" but pointed to uncertainty surrounding capital losses.
And Oppenheimer warned that while put-backs from government-sponsored enterprises are contained at manageable levels, it is still concerned about other loan-repurchase suits, saying "there will be lots of suits with big numbers." It lowered its rating to to perform from outperform.
Deutsche Bank repeated some of the same concerns.
But not all firms are as pessimistic. FBR Capital Markets said concerns surrounding the company--and the mortgage lawsuits it is likely to face--are overblown.
The analysts said it will be difficult for private investors to prove fraud and encouraged investors to overlook the negative headline risk, adding it may take two to three years before the issues surrounding loan repurchases are resolved.
Worries about sloppy mortgage underwriting and servicing practices clouded the discussion of the bank's results Tuesday. Excluding a $10.4 billion charge, which the bank attributed entirely to an amendment in the Dodd-Frank financial-overhaul law that limits debit-card income, its third-quarter results exceeded Wall Street estimates. Its $3.5 billion in fixed-income revenue also beat rivals Citigroup Inc. (C) and J.P. Morgan Chase & Co. (JPM), and credit costs showed improvement.
-By Corrie Driebusch, Dow Jones Newswires; 212-416-2143; corrie.driebusch@dowjones.com;
Chief Executive Brian Moynihan has vowed to fight in court the allegations the banking giant didn't properly service bond deals, but his comments did little to appease investors, who sent the bank's stock down to another 52-week low--or Wall Street analysts, at least three of whom cut their stock-investment ratings on the company.
Bank of America shares were recently off 2.8% to $11.48, earlier trading as low as $11.17--a level not seen since May 2009. In the last week alone, the stock has dropped 14%, and it is the worst performer in the Dow Jones Industrial Average so far this year, off 24%.
The concerns stem from how much capital loss the bank may incur from issues pertaining to the loans. Many government-sponsored entities, such as Fannie Mae (FNMA) and Freddie Mac (FMCC), as well as monoline insurers and private investors are calling on the bank to repurchase loans and compensate for losses due to inadequate mortgage servicing.
The issue of put-backs, or mortgage returns, was exacerbated by a letter sent Monday by a group of institutional bond investors. The investors demanded the bank take back billions of dollars in failing mortgages originally issued by affiliates of Countrywide Financial Corp., which was acquired by Bank of America in 2008.
While praising Bank of America's fundamentals, Stifel Nicolaus & Co., Deutsche Bank Group and Oppenheimer & Co. reluctantly downgraded their ratings on the stock.
Stifel, which cut Bank of America to hold from buy, said the action "goes against our better fundamental analysis/judgment" but pointed to uncertainty surrounding capital losses.
And Oppenheimer warned that while put-backs from government-sponsored enterprises are contained at manageable levels, it is still concerned about other loan-repurchase suits, saying "there will be lots of suits with big numbers." It lowered its rating to to perform from outperform.
Deutsche Bank repeated some of the same concerns.
But not all firms are as pessimistic. FBR Capital Markets said concerns surrounding the company--and the mortgage lawsuits it is likely to face--are overblown.
The analysts said it will be difficult for private investors to prove fraud and encouraged investors to overlook the negative headline risk, adding it may take two to three years before the issues surrounding loan repurchases are resolved.
Worries about sloppy mortgage underwriting and servicing practices clouded the discussion of the bank's results Tuesday. Excluding a $10.4 billion charge, which the bank attributed entirely to an amendment in the Dodd-Frank financial-overhaul law that limits debit-card income, its third-quarter results exceeded Wall Street estimates. Its $3.5 billion in fixed-income revenue also beat rivals Citigroup Inc. (C) and J.P. Morgan Chase & Co. (JPM), and credit costs showed improvement.
-By Corrie Driebusch, Dow Jones Newswires; 212-416-2143; corrie.driebusch@dowjones.com;
Mini-Armagedon in Bank Shares
Oct. 15 2010 - 6:09 pm
By ROBERT LENZNER
The mortgage foreclosure scandal threatens the profits of the nation’s leading banks, Bank of America (BAC), JP Morgan (JPM), Citigroup(C) and Wells Fargo(WFC) and will delay the recovery of the housing market in the US.
In the market action today, the share prices of the major money center banks were hit badly; Bank of America fell 6.5% to $11.78 a share, the lowest price for the nation’s largest bank since July, 2009. Jp Morgan Chase fell 4% to $37.16. A major blow to all the major investors who were counting on a sterling recovery in bank shares.
The freeze on foreclosures threatens another $1 trillion of losses to the banking system if all these mortgages cannot be cleared out of the system. It means that pending sales of properties that were foreclosed are now of dubious legality, explains Charles Hugh Smith in his blog post yesterday, “The Coming Collapse of the Real Estate Market,” (asoftwominds.com) At the very least, this scandal over the paperwork on foreclosures is another serious black eye for banks in the eyes of the public. No doubt, investors will continue to dump shares because the future resolutionn of this mess is so uncertain.
Buyers who closed on foreclosed homes now face legal challenges to their ownership and may even face a clawback of the property. If all these homes enter a legal limbo, then the overhang of homes will be so troubling, home prices could continue to weaken, and the crisis in housing be extended.
The repercussions to the economy, to homeowners, to consumers, and the banking system will be even more devlish to unwind. This nightmarish scenario is bound to impact the stream of fees and interest that banks like Bank of America and JP Morgan Chase collect on their vast mortgage portfolios.
At the very minimum bank earnings will be effected negatively. But, in a larger sense, the imperative to stop home prices from falling nationwide must be delayed. Let’s hope that Smith’s prediction of a total collapse in the real estate market will be met boldly by the Obama administration.
By ROBERT LENZNER
The mortgage foreclosure scandal threatens the profits of the nation’s leading banks, Bank of America (BAC), JP Morgan (JPM), Citigroup(C) and Wells Fargo(WFC) and will delay the recovery of the housing market in the US.
In the market action today, the share prices of the major money center banks were hit badly; Bank of America fell 6.5% to $11.78 a share, the lowest price for the nation’s largest bank since July, 2009. Jp Morgan Chase fell 4% to $37.16. A major blow to all the major investors who were counting on a sterling recovery in bank shares.
The freeze on foreclosures threatens another $1 trillion of losses to the banking system if all these mortgages cannot be cleared out of the system. It means that pending sales of properties that were foreclosed are now of dubious legality, explains Charles Hugh Smith in his blog post yesterday, “The Coming Collapse of the Real Estate Market,” (asoftwominds.com) At the very least, this scandal over the paperwork on foreclosures is another serious black eye for banks in the eyes of the public. No doubt, investors will continue to dump shares because the future resolutionn of this mess is so uncertain.
Buyers who closed on foreclosed homes now face legal challenges to their ownership and may even face a clawback of the property. If all these homes enter a legal limbo, then the overhang of homes will be so troubling, home prices could continue to weaken, and the crisis in housing be extended.
The repercussions to the economy, to homeowners, to consumers, and the banking system will be even more devlish to unwind. This nightmarish scenario is bound to impact the stream of fees and interest that banks like Bank of America and JP Morgan Chase collect on their vast mortgage portfolios.
At the very minimum bank earnings will be effected negatively. But, in a larger sense, the imperative to stop home prices from falling nationwide must be delayed. Let’s hope that Smith’s prediction of a total collapse in the real estate market will be met boldly by the Obama administration.
Tuesday, August 24, 2010
FORECLOSURE ASSISTANCE
America is seeing unprecedented default rates on homes and foreclosures. Unfortunately, many of the banks that received massive amounts of Troubled Asset Relief Funds (TARP) from the Federal Government, have chosen not to follow the rules and assist homeowners in obtaining modifications as created through Homes Affordable Modification Programs (HAMP). Of course this means homeowners are facing sheriff sales, embarassment and stress.
You are not alone! There are literally millions of others who are experiencing these hard times. The banks have duties and our law firm is engaged in various forms of litigation to attempt to help homeowners to resolve the issues with their homes.
We are presently filing lawsuits and looking into potential class actions against the banks and mortgage servicer companies that have chosen to accept massive amounts of money but will not follow the rules. Contact our law firm today for more information on how we can assist you! Allie & Donham, LLC - 717.881.2284
You are not alone! There are literally millions of others who are experiencing these hard times. The banks have duties and our law firm is engaged in various forms of litigation to attempt to help homeowners to resolve the issues with their homes.
We are presently filing lawsuits and looking into potential class actions against the banks and mortgage servicer companies that have chosen to accept massive amounts of money but will not follow the rules. Contact our law firm today for more information on how we can assist you! Allie & Donham, LLC - 717.881.2284
Subscribe to:
Posts (Atom)