Get em before they shred… remember 18 wheelers moving boxes at David J. Sterns when they were closing down?

“We will fulfill all of our obligations under WARN and during this process we will also fulfill our remaining work on behalf of our clients,” Baum said in a prepared release. “Disrupting the livelihoods of so many dedicated and hardworking people is extremely painful, but the loss of so much business left us no choice but to file these notices.”

Buffalo Business First-

The embattled Steven J. Baum P.C. law firm is the closing its doors after a series of missteps that included mortgage industry giants Freddie Mac    and Fannie Mae    cutting off business with the Amherst-based firm.

[BUFFALO BUSINESS FIRST]

“This action concerns far more than the financial interests of a few sophisticated investors,” Pauley wrote. “And the intervention of the State AGs in this action will protect the interests of absent investors.”

 WSJ-

The federal judge presiding over the landmark $8.5 billion settlement between Bank of America Corp. (BAC) and major investors in mortgage-backed securities has allowed the state attorneys general of New York and Delaware to intervene in the case.

In a ruling dated Friday, Judge William H. Pauley agreed with the state lawmakers that the massive settlement carries implications for the nation’s financial markets, not just the investors who will be impacted by the pact.

“This action concerns far more than the financial interests of a few sophisticated investors,” Pauley wrote. “And the intervention of the State AGs in this action will protect the interests of absent investors.”

[WALL STREET JOURNAL]

Prof. Adam Levitin –

This last week the Permanent Editorial Board of the Uniform Commercial Code came out with a report bering the none-too-thrilling title of “Report on Application of the Uniform Commercial Code to Selected Issues Related to Mortgage Notes“. There’s an awful lot to say about this awful document, and I’m not going to attempt to cover it all in a single blog post. This post is going to cover what the report is, what authority it has, and why it is completely irrelevant (namely that it deals with negotiable notes, when virtually all mortgage notes are non-negotiable). Subsequent posts will deal with the substantive flaws in the report and with the motivation behind the report and with the way the uniform law making process has become completely hijacked by monied interests.

[PART 1]

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[PART 2]

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[PART 3]

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I think we all can agree with this post… but those who benefit from real estate.

Where is Bill Hultman these days?

MLive-

A ruling this week by the Michigan Supreme Court put an end to some uncertainty in the real estate market, but it was a disappointment to local housing advocates.

The high court reversed an April state Court of Appeals decision that prevented the Mortgage Electronic Registration System, or MERS, from bringing foreclosures against Michigan homeowners.

The system was widely used by the lending industry to streamline the packaging and selling of mortgages as securities without recording the deeds at county offices. In that role, it also started countless foreclosure proceedings.

The appeals court ruled that MERS did not own legal title to the properties and could not be the foreclosing party. That decision called into question the validity of thousands of foreclosures across the state, wreaking havoc in the housing market. Closings were canceled and homeowners who had purchased foreclosed houses wondered whether they had clear title to the property.

[MLIVE]

Credit Slips –

By Lynn E. Szymoniak, Ed., Fraud Digest

The crash of the housing market has left families with an insurmountable debt problem. Palm Beach County, Florida, is one of the counties hardest hit by falling home prices.

In many cases, the Palm Beach County homes are now selling for less than 50% of the home prices in 2005-2006. Even when families are willing to forfeit their homes to their lenders, they still face significant deficiency judgments – the difference between the total amount owed and the amount “recovered” by the bank by a resale.

Bankruptcy is the only way to escape a deficiency judgment, but a bankruptcy will disqualify a family from eligibility for another mortgage. With fewer eligible borrowers, and an increasing number of homes being sold by the lenders, the price of homes continues to plummet and even more homeowners find themselves owing more than the current value of their home.

This cycle will only be ended by principal reductions by banks, for families willing to stay in their homes. More foreclosures will exacerbate this problem and prevent any real widespread economic recovery.

To prevent further deterioration of neighborhood home values, banks must demolish abandoned, moldy homes that have been gutted of plumbing, wiring and appliances. Banks must also limit their home sales in any one neighborhood so that prices may stabilize.

Fannie, Freddie, securitization, predatory lending, and extreme profiteering destroyed economic hope for the majority of Americans.

It is time for the banks to implement a policy of principal reductions to fair market value, with low-rate, fixed rate mortgages, and responsible home sales.

The following Palm Beach County homes were listed for sale in November, 2011. The price in 2005-2006 is listed after the current price.

12935 North 57th Road, The Acreage, West Palm Beach
11/11 Sale Price: $150,000
Sold for $335,000 on 4/20/2005

312 Putnam Ranch Road, West Palm Beach
11/11 Sale Price: $150,000
Sold for $360,000 on 4/22/2005

1135 Imperial Lake Road, West Palm Beach
11/11 Sale Price: $99,900
Sold for $270,000 on 7/31/2006

142 Rowley Drive, West Palm Beach
11/11 Sale Price: $99,000
Sold for $250,000 on 6/15/2006

4818 Poseidon Place, Hypoluxo West, Lake Worth
11/11 Sale Price: $150,000
Sold for $240,000 on 8/30/2005

5436 Gene Circle, Summit Run, West Palm Beach
11/11 Sale Price: $95,000
Sold for $250,000 on 8/24/2005

5254 West Canal Circle, Lake Worth
11/11 Sale Price: $94,900
Sold for $252,000 on 6/2/2005

400 Superior Place, West Palm Beach
11/11 Sale Price: $95,000
Sold for $205,000 on 2/14/2005

3706 Shoma Drive, West Palm Beach
11/11 Sale Price: $95,000
Sold for $269,000 on 4/28/2006

952 32nd Street, West Palm Beach
11/11 Sale Price: $95,000
Sold for $340,000 on 5/27/2005

6263 Blue Baneberry Lane, Buttonwood West, Greenacres
11/11 Sale Price: $99,999
Sold for $160,000 on 7/20/2004

10735 LaStrada, Ibis, Palm Beach Gardens
11/11 Sale Price: $299,900
Sold for $473,207 on 8/18/2006

6315 Bischoff Road, West Palm Beach
11/11 Sale Price: $98,500
Sold for $235,000 on 11/17/2006

313 North Ware Drive, West Palm Beach
11/11 Sale Price: $99,900
Sold for $209,000 on 6/21/2006

1005 SW 17th Street, Boynton Beach
11/11 Sale Price: $99,000
Sold for $172,500 on 6/30/2006

2859 Kentucky Street, West Palm Beach
11/11 Sale Price: $99,000
Sold for $179,000 on 7/20/2005

1701 Village Blvd., West Palm Beach
9/11 Sale Price: $53,000
Sold for $188,900 on 3/28/2005

8679 Falcon Green Drive, Palm Beach Gardens
11/11 Sale Price: $299,000
Sold for $550,000 on 7/24/2006

2912 South Olive Avenue, West Palm Beach
11/11 Sale Price: $299,000
Sold for $520,000 on 10/19/2005

10241 Orchard Reserve Drive, #1D, Ibis, Palm Beach Gardens
11/11 Sale Price: $299,000
Sold for $478,577 on 7/29/2005

616 Westwood Road, West Palm Beach
11/11 Sale Price: $299,000
Sold for $449,000 on 5/18/2005

There are many more examples of home with significantly reduced
value. Most of these homes have been on the market for over six
months. In November, 2011, there were 659 homes listed for sale in
Palm Beach County for less than $75,000, and nearly 2,000 homes for
sale for less than $500,000.

It is time to find ways to keep families in their homes.

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“Mr. Nocera — You have destroyed everything and everyone related to Steven J. Baum PC. It took 40 years to build this firm and three weeks to tear down.”

There is blood on your hands for this one, Joe,” he wrote at the end of that second e-mail. “I will never, ever forgive you for this.”

I think that’s what they call shooting the messenger.

 NYT-

Thus began a lengthy e-mail that I received, on Thursday evening, from Steven J. Baum, the owner of his eponymous law firm, the largest “foreclosure mill” in New York State. Foreclosure mills, of course, are firms that represent banks and servicers trying to foreclose on the millions of homeowners who have defaulted since the housing bubble burst.

[NEW YORK TIMES]

image: New York Times

In case you wish to read the transcripts from this story check it out: FULL DEPOSITION TRANSCRIPT OF LENDER PROCESSING SERVICES “LPS” SCOTT A. WALTER PART 1 &

FULL DEPOSITION TRANSCRIPT OF LENDER PROCESSING SERVICES SCOTT A. WALTER PART 2 “STEVEN J. BAUM, P.C.”, “O. MAX GARDNER”, “US TRUSTEE”

NY POST-

The stink is growing around the state’s largest foreclosure mill.

The Steven J. Baum law firm, which last month agreed to pay a $2 million fine to settle a federal probe into bogus foreclosure case filings, has now been barred by federal mortgage giants Fannie Mae and Freddie Mac from getting any more referrals of home loan defaults owned by either company.

In addition, the 70-lawyer firm is linked to the first criminal case brought against alleged robo-signers.

The criminal case was brought by the Nevada attorney general against two title officers — Gary Trafford and Gerri Sheppard — charged with forging signatures on 606 foreclosure-related mortgage documents.

Oh Really…Strange from Pg. 91

“the “New Man at MERS,” Bill Beckman was just
interviewed by Mortgage Technology Magazine and he
frankly admits:

“We did not have a robust process to
make sure that all the data on our system was
accurate, timely and reliable. Our view was that is
the servicer’s data and they’re relying on it for
their own transactions, they’re using their own
systems, so we don’t have to double check…Well, the
regulators took the perspective of, ‘No. You’ve got
your name on it. It’s your system. It is being used,
but you don’t know exactly the way it’s being used, so
there’s no reason those two things shouldn’t line
up.’”

Delaware Online-

Unfortunately, MERS has been making national headlines recently as the subject of politically motivated rhetoric and litigation, including in Delaware with Attorney General Beau Biden’s recently announced lawsuit. Critics of the MERS database are publicly blaming it for just about everything that went wrong in the housing industry, for local revenue problems, and even for some of Wall Street’s transgressions.

[DELAWARE ONLINE]

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.

Decided on November 15, 2011

APPELLATE DIVISION : SECOND JUDICIAL DEPARTMENT

MARK C. DILLON, J.P.
RUTH C. BALKIN
RANDALL T. ENG
JEFFREY A. COHEN, JJ.
2010-06292
(Index No. 3007/08)

.

[*1]Citimortgage, Inc., respondent,

v

Usher Stosel, appellant, et al., defendants. Sanford Solny, Brooklyn, N.Y., for appellant. Katz & Rychik, P.C., New York, N.Y. (Bennett R. Katz of counsel), for respondent.

DECISION & ORDER

In an action to foreclose a mortgage, the defendant Usher Stosel appeals, as limited by his brief, from so much of an order of the Supreme Court, Kings County (Velasquez, J.), dated April 12, 2010, as granted those branches of the plaintiff’s motion which were for summary judgment on the complaint insofar as asserted against him and for an order of reference, and, in effect, denied that branch of his cross motion which was to dismiss the complaint insofar as asserted against him for lack of standing.

ORDERED that the order is reversed insofar as appealed from, on the law, with costs, those branches of the plaintiff’s motion which were for summary judgment on the complaint insofar as asserted against the defendant Usher Stosel and for an order of reference are denied, and that branch of the cross motion of the defendant Usher Stosel which was to dismiss the complaint insofar as asserted against him for lack of standing is granted.

Where, as here, a plaintiff’s standing to commence a foreclosure action is placed in issue by the defendant, it is incumbent upon the plaintiff to prove its standing to be entitled to relief (see US Bank N.A. v Madero, 80 AD3d 751, 752; U.S. Bank, N.A. v Collymore, 68 AD3d 752, 753). A plaintiff establishes its standing in a mortgage foreclosure action by demonstrating that it is both the holder or assignee of the subject mortgage and the holder or assignee of the underlying note, “either by physical delivery or execution of a written assignment prior to the commencement of the action” (Aurora Loan Servs., LLC v Weisblum, 85 AD3d 95, 108). Moreover, “an assignment of the mortgage without assignment of the underlying note or bond is a nullity” (U.S. Bank, N.A. v Collymore, 68 AD3d at 754; see Bank of N.Y. v Silverberg, 86 AD3d 274, 280).

Contrary to the determination of the Supreme Court, the plaintiff failed to demonstrate that it had standing to commence this foreclosure action, since it failed to establish how or when it became the lawful holder of the note either by delivery or valid assignment of the note to it (see e.g. Bank of N.Y. v Silverberg, 86 AD3d at 280-283; Aurora Loan Servs., LLC v Weisblum, 85 AD3d at 109; US Bank N.A. v Madero, 80 AD3d at 752-753; U.S. Bank, N.A. v Collymore, 68 AD3d at 754). Accordingly, under the circumstances presented, those branches of the plaintiff’s motion which were for summary judgment on the complaint insofar as asserted against the defendant Usher Stosel and for an order of reference should have been denied, and that branch of the [*2]cross motion of the defendant Usher Stosel which was to dismiss the complaint insofar as asserted against him for lack of standing should have been granted.

In view of the foregoing, we do not reach the remaining contentions of the defendant Usher Stosel.
DILLON, J.P., BALKIN, ENG and COHEN, JJ., concur.

ENTER:

Matthew G. Kiernan

Clerk of the Court

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Want to break the law over and over again and promise never to break that law you first broke?

Work for Wall Street!

Rolling Stone –

Had a quick piece of news I wanted to call attention to, in light of the recent developments at Zuccotti Park. For all of those who say the protesters have it wrong, and don’t really have a cause worth causing public unrest over, consider this story, sent to me by a friend on the Hill.

Now you know why the others have fled as CeO’s and have done so since last year. Their days are numbered and they might be getting inside information from employees?

As for FL AG Pam Bondi, where are you and why haven’t you come to these conclusions being LPS HQ is in your state?

From the announcement:

The Nevada Attorney General has elected to charge two Lender Processing Services (NYSE: LPS) employees for document execution and notarization practices related to notices of default and deeds of trust filed in Clark County, Nevada from 2005 to 2008.  Based on the company’s reviews, LPS acknowledges the signing procedures on some of these documents were flawed; however, the company also believes these documents were properly authorized and their recording did not result in a wrongful foreclosure.

“I am deeply committed to ensuring that LPS meets rigorous standards of professional conduct and operating excellence,” said newly appointed LPS President and CEO Hugh Harris. “I have full confidence in the ability of our leadership team and more than 8,000 dedicated employees to deliver on that commitment.”

HuffPO-

A recent editorial in the LA Times, “California Should Make that Mortgage Deal,” admonishes California Attorney General Kamala Harris for her insistence on ensuring that the big banks that caused the foreclosure crisis in our state pay their fair share to our homeowners. The editors urge Attorney General Harris to take the deal that’s currently on the table, even though she knows–and California’s homeowners know–that the deal isn’t good enough.

[HUFFINGTONPOST]

Information is sought on the mortgage giants’ roles as landlords who own thousands of foreclosed properties in California. Also sought are details of their mortgage-servicing and home-repossession practices, a source says.

LA Times-

Investigators with the California attorney general’s office have subpoenaed information from mortgage titans Fannie Mae and Freddie Mac as part of a wide-ranging inquiry into lending and foreclosure practices in the state.

The subpoenas ask the government-controlled finance companies to answer a series of questions about their activities in California, including their roles as landlords who own thousands of foreclosed properties. The attorney general’s office is also seeking details of Fannie and Freddie’s mortgage-servicing and home-repossession practices, according to a person familiar with the matter.

In addition, investigators want to learn more about the companies’ purchases and sponsorship of securities holding “toxic mortgages” in the Golden State, said the person, who was not authorized to speak on the matter and requested anonymity.

[LA TIMES]

LPS must know by now, they are getting closer and closer to their top Executives.

FOR IMMEDIATE RELEASE 

Contact:  Jennifer López

702-486-3782

DATE: November 16, 2011       

Office of the Attorney general ANNOUNCES indictment in massive clark county robo-signing scheme

Defendants to be Held Criminally Accountable for Filing Tens of Thousands of Fraudulent Foreclosure Documents

Carson City, NV – The Office of the Nevada Attorney General announced today that the Clark County grand jury has returned a 606 count indictment against two title officers, Gary Trafford and Gerri Sheppard, who directed and supervised a robo-signing scheme which resulted in the filing of tens of thousands of fraudulent documents with the Clark County Recorder’s Office between 2005 and 2008. 

 According to the indictment, defendant Gary Trafford, a California resident, is charged with 102 counts of offering false instruments for recording (category C felony); false certification on certain instruments (category D felony); and notarization of the signature of a person not in the presence of a notary public (a gross misdemeanor).  The indictment charges defendant Gerri Sheppard, also a California resident, with 100 counts of offering false instruments for recording (category C felony); false certification on certain instruments (category D felony); and notarization of the signature of a person not in the presence of a notary public (a gross misdemeanor). 

 ”The grand jury found probable cause that there was a robo-signing scheme which resulted in the filing of tens of thousands of fraudulent documents with the Clark County Recorder’s Office between 2005 and 2008,”said Chief Deputy Attorney General John Kelleher.

 The indictment alleges that both defendants directed the fraudulent notarization and filing of documents which were used to initiate foreclosure on local homeowners. 

The State alleges that these documents, referred to as Notices of Default, or “NODs”, were prepared locally.  The State alleges that the defendants directed employees under their supervision, to forge their names on foreclosure documents, then notarize the signatures they just forged, thereby fraudulently attesting that the defendants actually signed the documents, which was untrue and in violation of State law.  The defendants then allegedly directed the employees under their supervision to file the fraudulent documents with the Clark County Recorder’s office, to be used to start foreclosures on homes throughout the County. 

 The indictment alleges that these crimes were done in secret in order to avoid detection. The fraudulent NODs were allegedly forged locally to allow them to be filed at the Clark County Recorder’s office on the same day they were prepared. 

 District Court Judge Jennifer Togliatti has set bail in the amount of $500,000 for Sheppard and $500,000 for Trafford.  The case has been assigned to Department 5 District Court Judge Carolyn Ellsworth who will preside over the case.                      

 Anyone who has information regarding this case is asked to contact the Attorney General’s Office at 702-486-3777 in Las Vegas or 775-684-1180 in Carson City.

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 Bobby Darin Sings Start of Something Big

Via: Max Gardner’s Boot Camp–

The report specifically indicates that “It should not be assumed that all mortgage notes are negotiable instruments” and  affirms that the requirements of  section 3-104 must be met in order for a particular mortgage note to be considered a negotiable instrument.

(If you’re not registered for the UCC seminar yet, there is space available:  get more information or register now!)

Introduction

Recent economic developments have brought to the forefront complex legal issues about the enforcement and collection of mortgage debt. Many of these issues are governed by local real property law and local rules of foreclosure procedure, but others are addressed in a uniform way throughout the United States by provisions of the Uniform Commercial Code (UCC).1 Although the UCC provisions are settled law, it has become apparent that not all courts and attorneys are familiar with them. In addition, the complexity of some of the rules has proved daunting.

The Permanent Editorial Board for the Uniform Commercial Code2 has prepared this Report in order to further the understanding of this statutory background by identifying and explaining several key rules in the UCC that govern the transfer and enforcement of notes secured by a mortgage3 on real property. The UCC, of course, does not resolve all issues in this field. Most particularly, as to both substance and procedure, the enforcement of real estate mortgages by foreclosure is primarily the province of a state’s real property law (although determinations made pursuant to the UCC are typically relevant under that law). Accordingly, this Report should be understood as providing guidance only as to the issues the Report addresses.4

Please click image for paper

HuffPO-

No other state has experienced the dizzying heights of the housing boom or the depths of the subsequent bust quite like California. Today, four metro areas in the Golden State have the highest foreclosure rates in the country, eclipsing — for the first time — even Las Vegas, Nevada. In last night’s look at the housing crisis that continues to cripple this country, we traveled to southern California and met Lise Johnson, a mother of four who’s been in the same home for 12 years and is desperate to stay put.

[HUFFINGTON POST]

Abigail C. Field-

Bank of America has treated Dr. Ira Neighbors with an elaborate, bureaucratic cruelty that would make Kafka proud. Neighbors’s story exposes just how blatantly BofA lies when it tells homeowners “we’re here to help”. After you read his story I dare you to think BofA is acting in good faith during the mortgage modification process.

Dr. Neighbors successfully completed a trial modification with BofA, but then it refused to make it permanent. BofA invited him to try again, and Neighbors did, successfully completing his second trial. This time Neighbors hired an attorney to help sway BofA into making the trial permanent, and his lawyer succeeded. BofA sent Neighbors a package of papers to sign.

Enter Kafka …

[REALITY CHECK]

As Always, thank you to MERS for giving this power to sign away any document for any lender at any notice to get the JOB DONE no matter how much fraud is involved!

LAS VEGAS — The nation’s largest banks stopped foreclosures last fall following allegations their employees cut corners while processing paperwork. A short time later — with promises to halt the illegal practices — foreclosures resumed.

The I-Team has learned “robo-signing” remains what some officials call an epidemic in Nevada. Robo-signing refers to a variety of practices. Among them: employees who sign foreclosure documents they haven’t read, employees who use fake signatures to process documents, or employees who fail to follow notary rules.

[8NEWS NOW]

“The Michigan Supreme Court decision on Mers is an embarrassment, to those of us who care about the property records of this state, and more importantly the citizens who are affected by these foreclosures. Mers created a shadow registry system that makes it impossible for individual citizens and their government officials to track who owns a mortgage. At the Michigan Chambers request, they now have the right to masquerade as a bank and take a citizen’s home . It is unfortunate that Justices Young, Markman, Zahra and Mary Beth Kelly decided to side with special interest groups instead of Michigan citizens.“

– Curtis Hertel Jr.

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During 2009-2010, Fannie Mae & Freddie Mac lost $121.6 Billion and took $94 Billion from US taxpayers, who paid the top six executives as the government-owned mortgage giants more than $35 Million.