Fraud, Feudalism and (Edited)-Up Foreclosures

Without Due Process Of Law we are nothing as a nation. We have descended into a feudal system where the only real law is that which someone enforces at the end of a rifled barrel.

– Karl Denninger (HT: The Market Ticker)

When I first heard talk about the possibility of a foreclosure moratorium, slammed down hard, 1 month before the 2010 midterm election, I immediately reacted in a manner similar to RS Diarist Nikitas3. I figured it was an utter fiction invented to save a colossally arrogant Congressional and Senatorial majority from crushing defeat.

If only the malfeasance were just political in nature. The Democrats may try to use this scandal to “rescue” lots of idiots from poor financial decisions scant weeks before an election, but no. Something this (redacted)-up requires far more intellectual firepower than that at Barbara Boxer’s disposal to properly engineer.

The Jack-Ass Party had good reason to want to stop foreclosures. They hold the White House and both Houses of Congress. They’ve publically stated that they don’t want to keep hearing from the same people who created this mess. They’ve written OP-EDs entitled “Welcome to The Recovery.” They’ve christened the 3-month period from June to August 2010 Recovery Summer. It’s against this leafy-green backdrop of False Enthusiasm Bull-(Redacted) Attitude, that RealtyTrac announced the following jolly-good news.

Banks foreclosed on 102,134 properties in September, the first single month above the century mark, RealtyTrac said. There were 347,420 total foreclosure filings in September, 3 percent higher than August and 1 percent higher than a year earlier.

HT: Reuters.

Yet political conveniences aside, something truly is rotten in the State of Denmark. According to The Canadian Television Network CTV:

An avalanche of home foreclosures in 2007 required US financial institutions and their mortgage departments to hire hair stylists, retail workers and people who had worked on assembly lines to handle homeowners’ papers even though they did not have any formal training.

(HT: Business Insider.com)

This is a breakdown in law and order. Court depositions of some of the so-called “Robo-Signers” revealed many interesting factoids. The nice attorneys had to explain to the people who signed foreclosure papers what exactly affidavits were. Predictably, the individuals signed them. There were even incidences of the attorneys patiently explaining to the Robo-signers what private property is. They, quite literally, did not know what in the (edit) they were foreclosing on!

The results of hiring Beavis and Butt-Head to sign all the nice, technical legal documents have manifested themselves in a predictably chaotic fashion. David Goldman, an attorney for the Apple Law Firm, describes what (Redacted) looks like with lid ripped off for enhanced ventilation.

“I think it’s safe to say that 95% of the foreclosure cases in Florida involve some form of fraud on the part of the bank,” David Goldman of Apple Law Firm, PLLC told The Daily Caller in a phone interview. “It’s probably closer to 99%. And the court system is helping them get away with it.”

“One of the most common things we see is a paper with a notary stamp that gives the bank the legal authority to foreclose. Well, anyone can buy those stamps. I can buy those stamps. A lot of what’s going on is law firms desperate to win a case are hired by banks who don’t know what those law firms are up to. Then the bank thinks it can foreclose, even though other banks also think they have that right, and those banks might not figure out what happened for a long time because the system is absolutely overloaded with foreclosures. And even if they do figure it out, suing to repossess a property that another bank already sold is a long and arduous process. So you wind up with a scenario in which the left hand doesn’t know what the right hand is doing.”

(HT: The Daily Caller)

This means that financial institutions are now making bogus claims that they served property owners and supporting these claims with forged legal documents. There is a simple, one-word term for this practice – larceny. If I put on a Barack Obama Mask and knock over the local Wells Fargo, there is a simple, one-word street address for where I would then wind up living – prison.

This leads us all to a precarious dilemma. Wells Fargo, with its merry band of robo-signers, is still foreclosing. The question that decides whether we live in a Feudal or a Democratic Republic is two words long. The question of the day becomes “So what?”