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Loading...Foreclosure Fraud Comes To Light
GAMC Mortgage unit told brokers and agents to halt foreclosures on homeowners in 23 states including Florida, Connecticut and New York. While GAMC disputed the characterization that the move was a foreclosure “halt”, insisting that residential foreclosures were moving forward it did acknowledge that it was dealing with a “potential issue” that was raised in some existing foreclosure proceedings dealing with “judicially required forms.”
The “potential issue” in the “judicially required forms” were fraudulent affidavits executed by an attorney named Jeffrey Stephan. Stephan works with, among others, the Florida Default Law Group, a collective that developed a rapid-fire response to foreclose on residential properties on behalf of lenders.
It turns out, hundreds of thousands of foreclosures happened as a result of falsified evidence, a fact GMAC and other lenders are now forced to admit as the actions of its attorneys come to light.
In the affidavits at issue, which the Florida Default Law Group has filed notices to withdraw, Stephan claimed to have “personal knowledge” of the facts of thousands of foreclosure actions. Yet as the actions of the Florida Default Law Group and Stephan gained closer scrutiny, he admitted, in sworn deposition testimony that he really had no personal knowledge of anything he swore to in those affidavits.
Stephan also admitted that the fraud was far-reaching in that he signed as many as 18,000 foreclosure affidavits per month. Not all of those cases are still active. In fact, many of those cases have gone to sale, meaning that hundreds of thousands of families have been rendered homeless due to falsified evidence on behalf of mortgage lenders.
Rep. Alan Grayson (D-FL) has asked the Florida Supreme Court to halt all foreclosures involving the Florida Default Law Group and related firms accused of document fraud. Newly-appointed consumer advocate Elizabeth Warren has long championed for tougher measures to protect homeowners from the continued predatory practices by the banking industry. Now it’s clearer than ever just why those reforms are needed.
Read more: florida, foreclosure, fraud, gamc, politics
photo courtesy of respres via Flickr
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Powerful story in so many ways!
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35 comments
+ add your ownThe Gov't is actually the one CAUSING my problems -- after promising to help with the Hardest Hit fund.
Please sign the petition to may the US Dept of Treasury stand by this program.
http://www.thepetitionsite.com/3/foreclosure-prevention-fraud/
These companies are just so not good. They even brought our soldiers into this.
Foreclosure Fraud :http://www.righttocancel.com
To Melissa D: I worked at FDLG. They were ruthless and without scruples. It was like working for Soviet Russia. I can see that from your well-heeled vantage point that you would rather "blame the victim," but in this case the blame is where it should be -- on this soulless, unscrupulous, money-mad bunch of scamming attorneys who belong behind bars.
It boggles my mind how people blame the lenders and law firms! Does everyone realize that these homes are in foreclosure because the mortgagors, that everyone feels so sorry for, executed documents to secure a loan many of them knew they could not afford. In the case of a re-fi you are granted a 3-day right to rescission. A smart homeowner, should have reviewed the docs within that time frame and cancelled the loan if they could not afford it. Yes the banks are at fault for approving loans to consumers who didnt have sufficient income... but what about the brokers who forged pay stubs and income verifications just to get the bank to approve these loans. Everyone played a part in the fiasco, but the mortgagors MUST take responsibility as well.
There are many instances where a death or a job loss has caused othwewise worthy homeowners to fall behind and to them I sincerely empathize and I pray that their situation improves.
In the case of GMAC and FDLG, the law firms represent the banks...yes. But how can the law firm be punished or assumed responsible for procedures and practices that they are unaware of? How is the law firm to know GMAC's internal process for executing affidavits?? How is the law firm committing fraud?
I empathize with every homeowner affected by the foreclosure crisis in our country, but as objective, intelligent people we must not jump on the bandwagon and point fingers. Everyone had a hand in creating this situation. The biggest responsibility f
IMPORTANT FACTS ABOUT FORECLOSURE AND MORTGAGE FRAUD
Foreclosures via DECEPTIVE and FRAUDULENT PROCEEDINGS enables repetitive, and illegal property flipping; it enables lenders to falsify IRS form 1099-A''s; it enables unscrupulous foreclosure mill lawyers (especially because of judges who purposefully abet deceit) to deceptively hold auctions and make insider bids to acquire those properties; and blighted neighborhoods. Fraudulent foreclosures ensure the success of FABRICATED BANKRUPTCY COURT 'Lift Stay motions' and false 'Proof of Claims'.
Foreclosure via fraud is the reason for illegitimate homelessness and underhanded evictions, unjustified IRS tax bills due to false 1099-A's, and unfair "Deficiency Judgments." Ironically, some people who express their anger at "deadbeats" appear to be more acceptable about the manifest fraud and criminal activity being carried out by people with credentials to practice law. Equally ironic is the reality that some people pretending to be annoyed about "deadbeats"are the actual people who are participating in real estate racketeering -fully sanctioned by the majority of courts, especially Bankruptcy Courts! *more @
http://www.lawgrace.org/2010/09/30/important-facts-about-foreclosure-and-mortgage-fraud/
These companies set the consumers up for failure.
Checks and Balances cost too much, say the BEANCOUNTERS!
Quality Control in all industries also hit the skids due to the same mentality.
Our illiterate CONGRESS makes rules and regulations that have NO ENFORCEMENT mechanisms.....gee?
So, all we have left is our conscience....and a knowing that we will screw ourselves if we own up, and report something that just isn't right. Enough is enough....maybe take pictures and send anonymous letters to where it counts? Yeah!
Sharon, did your friend lose her home because she was unable to pay her mortgage because of loss of job, mortgage terms, or did the bank just decide they wanted their home back? I can understand loss of a job that causes income to be lost-however, we walk a fine line placeing the blame entirely on a lender when a homeowner decides that they are going to take a risker loan because they are banking on increase in property values or an increase in salary before the arm is due. Dont get me wrong, I am in full support of consumer education AND the lending institutions being held accountable when they clearly have violated laws and regulations-however-not all subprime loans are predatory ones.
My friend lost her home to this foreclosure nonsense. The people, her included, that refinanced and had larger mortgages than normal, were the losers. The banks would not work with them so they could keep their homes. So the Industry lost almost as much as the homeowners. The banks were greedy and now they have umpteen unsold homes sitting on the books unsold. They got theirs in the end. hah.
Makes me wonder if there is evere gong to be any regress for the poor souls that had their homes stolen from them but these people? and in the end if there is it will end up being paid by the tax payers and probably not the banks. Sickning!
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