It should come as no surprise that B of A would impose such a moratorium by halting all of its foreclosure actions in light of the scrutiny of its documents that are being filed in courthouses all over the country. Just because Bank of America, along with PNC Bank, Ally Financial (formerly GMAC Mortgage), JPMorgan Chase and others are allegedly examining their foreclosure paperwork for flaws doesn’t mean they don’t know what’s really going on. And while Wells Fargo Bank N.A. isn’t admitting to any of this alleged fraudulent paperwork, this author has uncovered at least one foreclosure paper mill network in Eagan, Minnesota, full of the robosignors that all of the other lenders are accused of utilizing.
All of this is called damage control but it’s a far cry from the damage that all of these foreclosure actions have done in creating the real estate chaos in the nation’s county courthouses with the clouds on title. Despite the efforts of MERS, an acronym for Mortgage Electronic Registration Systems, Inc., a Delaware corporation whose parent MERSCORP, Inc., operates as a stock company with 17 known employees out of Reston, Virginia, the mess that MERS has made utilizing “authorized signers” on documents has still not been fully investigated. This author is seeing robosignor activity wherein the trustee will sign for the lender as a ìVice President for MERSî and appoint himself as a trustee so he can foreclose. In virtually all states, the trustee and beneficiary (the holder of the note) must be two separate entities.
The challenges to slanders and clouds on titles are only the beginning and title companies are starting to get nervous. The people who think they are getting a great deal on buying foreclosures may find themselves in more trouble than they bargained for when the evicted families find out that the bank that foreclosed on them used fraudulent paperwork and their titles were clouded and now these investors are going to have to spend money quieting their titles, not to mention being caught in a legal crossfire between the foreclosed homeowner and the lender that sold them the foreclosed home. The author predicted in 2007 that this would start happening after the foreclosure meltdown. The frauds are now starting to come to light with the whistleblower activity surrounding Florida attorney David J. Stern. Florida AG Bill McCollum is getting closer to hitting the mark in demonstrating that the banks haven’t been totally honest with the judges there.