60 Minutes Mortgage Paperwork Mess, From Bread Lines to Mortgage Lines, New Housing Crisis?

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I was glued to the tube Sunday night watching Scott Pelley, who once worked at WFAA-TV in Dallas,¬† reveal something so awful I still cannot believe it. We all know how Wall Street cut corners when it created Credit Default Swaps, those mortgage-backed investments that some bet for, some bet against, AIG “insured” and which ultimately triggered the financial collapse in 2008 that almost brought on another Depression. And we’ve heard how mortgages were sold so quickly from one bank to another as they were shuffled into (what we thought were) rated “tranches” that paperwork got sloppy — remember robo-signing? Well, now come the foreclosures, a million last year, probably a million this year. But in some cases, the legal documents behind the mortgages don’t exist or are not drafted correctly. So you won’t believe this: the big banks in our country may be forging names and throwing together paperwork to CYA by outsourcing to document companies that re-create documents and pay people $10 an hour to sign their names — and notarize — these documents. They do this so they can go to court and foreclose on the home.

As Scott Pelley reports, in the 1930’s we had bread lines. Today, we have mortgage lines. In Miami, Fla. in February, 12,000 people showed up at a convention enter event to ask banks to lower payments on what are probably adjustable rate mortgages they can no longer afford. Pelley talked to FDIC Chairman Sheila Bair, who thinks rotten mortgages are so threatening to our economy the government should force banks to pay into a massive fund:

“You think there needs to be a cleanup fund like for a natural disaster?” Pelley asked.

“I do. Yes, somewhat like that. Yes, this is yes this is one of human-making, but yes,” Bair said.

“You don’t want to give an exact dollar amount for this cleanup fund, but what are we talking about. Is it billions?” Pelley asked.

“Yes. I would assume it would be billions. Yes,” she replied.

Bair’s proposed cleanup fund would pay homeowners to accept a bank’s ownership claim without a lawsuit. She says this could be cheaper for banks than trying to recreate the missing documents legitimately – not through document mills.”

Candy Evans, founder and publisher of CandysDirt.com, is one of the nation’s leading real estate reporters.

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  1. grassroots4homes on April 7, 2011 at 3:43 am

    Grassroots Assembly for Mortgage Fraud Victims, LLC NEEDS YOUR SUPPORT!

    The underlying truth on what the banks (servicers) have been hiding and wrongfully foreclosing and collecting mortgage payments on is what we call…“UNCLAIMED PROMISSORY NOTES”

    The Investors do not own these loans, all of which have been forged, securitized, lost and never assigned. The investors (THE PEOPLES: pensions, 401-K, mutual funds, etc.,) who have paid for the majority of these “fake” loans, are being told by the Government, to walk away from the BAIL OUT money and it’s not to be used to pay for their losses.

    We ASK THAT YOU PLEASE JOIN Grassroots in its fight against this Crime handed down by Wall Street and the Banks, where they have intentionally stolen the American Dream.

    STAY IN YOUR HOME! FIGHT FOR JUSTICE AND FAIRNESS! THE BANKS DO NOT OWN YOUR LOAN! WE ARE TAKING ACTION NOW!

    For more information on our Organization view our video on youtube. http://www.youtube.com/grassroots4homes – and contact us at 1.888.547.8885.

    FRIEND US ON FACEBOOK at Grassroots Assembly

    Below is a link to one of our members case brewing in the Rancho Cucamonga Superior Court House for almost 3 Years where Goldman Sachs (Litton Loan Servicing) embezzled $118,800 from the Property and backdated/robo-signed the Assignments and then Foreclosed. http://bushnellcomplaint.blogspot.com/

  2. grassroots4homes on April 7, 2011 at 3:43 am

    Grassroots Assembly for Mortgage Fraud Victims, LLC NEEDS YOUR SUPPORT!

    The underlying truth on what the banks (servicers) have been hiding and wrongfully foreclosing and collecting mortgage payments on is what we call…“UNCLAIMED PROMISSORY NOTES”

    The Investors do not own these loans, all of which have been forged, securitized, lost and never assigned. The investors (THE PEOPLES: pensions, 401-K, mutual funds, etc.,) who have paid for the majority of these “fake” loans, are being told by the Government, to walk away from the BAIL OUT money and it’s not to be used to pay for their losses.

    We ASK THAT YOU PLEASE JOIN Grassroots in its fight against this Crime handed down by Wall Street and the Banks, where they have intentionally stolen the American Dream.

    STAY IN YOUR HOME! FIGHT FOR JUSTICE AND FAIRNESS! THE BANKS DO NOT OWN YOUR LOAN! WE ARE TAKING ACTION NOW!

    For more information on our Organization view our video on youtube. http://www.youtube.com/grassroots4homes – and contact us at 1.888.547.8885.

    FRIEND US ON FACEBOOK at Grassroots Assembly

    Below is a link to one of our members case brewing in the Rancho Cucamonga Superior Court House for almost 3 Years where Goldman Sachs (Litton Loan Servicing) embezzled $118,800 from the Property and backdated/robo-signed the Assignments and then Foreclosed. http://bushnellcomplaint.blogspot.com/

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