What LIES behind Truth in the ongoing Foreclosure and Mortgage crisis?

There's no compelling reason for big corporations, banks, credit bureaus, debt collection agencies, [or home builders] to TELL THE TRUTH.

By Denise Richardson, consumer advocate, 7/26/2010
http://www.givemebackmycredit.com/blog/2010/07/what-lies-behind-the-truth-in-the-ongoing-foreclosure-and-mortgage-crisis.html

Lawyers learn it in law school:

• When the facts are on your side, argue the facts.
• When the law is on your side, argue the law.
• When neither is on your side, attack the plaintiff' (a/k/a consumer).

It works for lawyers, and apparently it works for corporations, mortgage servicing companies and Wall Street bankers too.

When it is a little ol' consumer up against a big corporation, there just doesn't seem to be any compelling reason for that corporation or bank or credit bureau or debt collection agency to TELL THE TRUTH. The consumer believes that the truth will set him free, that justice will prevail. All the while, the opposing counsel is throwing their heavy weight on the scales of justice, bending the situation--and the facts--to suit themselves.

Richard Zombeck, in an earlier Huffington Post blog; When Facts Aren't on Your Side, Lie Like Banks Do, points out yet another instance of how the big guys get away with the big lies;

"When you're a bank and the facts aren't on your side, it's apparently perfectly acceptable to just lie. No side-stepping, no spin, no double talk. Just flat out lie as if no one will ever check your facts or assume that by the time they do it'll all have blown over. It's a lot like a five-year-old covered in chocolate denying he ate the cake."

Many people feel that's exactly the scenario playing out across this country in courtrooms and on Capitol Hill. With continued reports of unfair and wrongful foreclosures and use of fabricated title documents cropping up in courtrooms across the country, it adds up to trouble. A whole lot mistruths, twisted facts and personal attacks designed to cover the truth -and someone else's butts.

In fact, here's a great example of how they do just that;

"Legal Tips for Servicers" is a guide that essentially teaches mortgage services how to side-step liability. This can be considered as a little "cheat sheet" in what one can easily view as a handbook designed to show how serviers can legally get out of owning up to one's own mess. Nice. Too bad consumers didn't have the same ready made manual.

Consumers are playing against a stacked deck. Though the recent financial reforms will help prevent a lot of the worst predatory lending practices, most believe it didn't go nearly far enough. One example; Fannie Mae and Freddie Mac and the auto financing industry all got big get out of jail free passes. And, we now have a huge 2,500-page bill set to be law, without full understanding as of yet, what these reforms will mean for the consumer. One thing is certain out of this: there will now be a much needed Consumer Financial Protection Agency - an agency designated to act as the consumer's watchdog.

To help ensure this agency will be a place where consumer voices matter and truth and honesty prevails, I believe there is only one person for the job! And the person to head this agency should without question be the tell-it-like it is consumer champion, Professor Elizabeth Warren.

If you agree that she is the best person for this position, support the nomination of Professor Warren as leader and head the new Consumer Financial Protection Bureau. Sign Petition to appoint Elizabeth Warren to lead the Consumer Financial Protection Agency.

Recently, Steve Dibert, founder of MFI-Miami [Mortgage Fraud Investigation], wrote a piece about his client fighting an illegal foreclosure while fighting against cancer as well. Here's a short excerpt Steve offers in an attempt to show what lies behind the truth in the ongoing mortgage and foreclosure crises.

BofA & Fannie Mae Illegally Foreclose on Michigan Cancer Victim

           By Steve Dibert, MFI-Miami

What would you say to a situation where Bank of America not only lied to a homeowner about giving her a modification that has been diagnosed with Lung Cancer and has only been given a 25% chance of surviving the next 18-24 months and then illegally foreclosing on her?
 
Lynne Lucas and her partner, Patrick approached Bank of America early last year about doing a loan modification because they saw their incomes decline due to the recession. They contacted Bank of America and after nearly a year, Pat and Lynne were approved for a loan modification in January of 2010. When they opened the letter from Bank of America they discovered that the bank was lowering their interest rate from 6.5% to 4.75% which sounded great until they read Bank of America's terms and saw their payments actually increase by $570 per month.

Lynne and Pat again tried to negotiate a modification. On March 29, 2010, Bank of America denied the modification claiming "investor denied" and without warning sold the house at foreclosure the next day. There are two problems with this; BAC Home Loan Servicing (Bank of America's servicing arm) owns the note.

Bank of America's attorneys sold the property at Sheriff's Sale less than 24 hours after being denied a loan modification.

However, Bank of America's servicing company BAC Loan Servicing didn't sell the property.

Fannie Mae sold it and they sold it to themselves for the filing fee of $35.00.

According to representatives in Barbara DeSoer's office and the Office of the Benzie County Register of Deeds, BAC Home Loan Servicing owns this note not Fannie Mae. Fannie Mae also has no record of owning this note.

Lynne and Pat are now victims of an illegal foreclosure that was done without advertisement and by a non-involved third party. So now they are forced to fight Bank of America, Fannie Mae and a ravaging disease.

You can read all the sordid details and complete article here.