Foreclosure Fraud – An Interesting Variation of Mortgage Fraud – Comments Ethics Speaker Chuck Gallagher

 Chuck Gallagher, Ethics Speaker

Recently I receive an e-mail related to several of my more recent posts on Mortgage Fraud – note this will be one of the hot topics in 2008!  The writer gave permission to share so in the interest of the readers of this post I am reprinting the e-mail content.

The worse factor of the Mortgage Mess is FORECLOSURE FRAUD committed via DEBT COLLECTION abuse and deception.  It is HIGHLY COMMON for a DEBT COLLECTOR attorney to file a foreclosure naming a DEFUNCT mortgage company, or naming a mortgage company which is NO LONGER holder of the promissory note; or file a foreclosure affixing a “ransom” amount (the collector’s fee) far exceeding the “Acceleration Clause.” Even worse, when homeowners sue for “Unfair Debt Collection Practices,” and various damages, the collector gets to make even more $$ through prolonged litigation while leading mortgage companies to believe the homeowner is the reason for those multiplied costs. Irrefutable proof of foreclosure fraud and judicial collusion is posted on www.lawgrace.org

For these very reasons any representation about $$$ billion dollar losses due to people defaulting on mortgages should be weighed against the fact that certain mortgage giants needlessly pay DEBT COLLECTION firms outrageous legal fees for their lawyers to outmaneuver -and even persecute people who file court proceedings in opposition to fraudulent foreclosures.

EXAMPLE:  In one actual situation, for a purported debt of $86,000.00, through use of a non-existent mortgage company, attorneys racked up more than a quarter of a million dollars in legal fees.  Afterward, that property was sold to a 3rd party for $37,000.00. (The dollar amounts are rounded off.)  Thus, Securities Investors realized nothing, and nothing practical was accomplished by evicting the homeowners (except for the collectors). Even property value declined in that neighborhood.  Additionally, some collectors even file in Bankruptcy Court falsified motions To “Lift Stay” pleading for purposes of accomplishing SIMULATED AUCTIONS of real estate properties.  Also, as an added measure to heighten chances of judicial
favor, these collectors propagate that the defaulted property owners are costing their clients all those legal expenses.  But the true culprit is the collectors’ fraud and racketeering conduct. (This has to be the meanest exploitation and malignment against persons faced with becoming homeless!)

Furthermore, this kind of debt collector enables MORTGAGE COMPANIES to ILLEGALLY FLIP property, and thereby  deceive Securities Investors about the real estate market.  Thus, unscrupulous mortgage companies do not care what the collectors do, even when they loose money off the foreclosure. In States such as Louisiana, 2 particular mortgage
companies which benefit from fraudulent foreclosures are Wells Fargo and FREDDIE MAC.

Securities Investors need to become more knowledgeable, responsible and take action about debt collectors as well as mortgage servicers’ misdeeds which hurts borrowers as well as siphons incalculable amounts of money from what Investor profits.  Also, see “Limiting Abuse and Opportunism By Mortgage Servicers,” AND  “Private Property Rights
Deferred: Has Predatory  Mortgage Servicing Destroyed The American Dream” by Rawle Andrews, Jr.,  Esq.,and Leroy Jones, Jr., J.D.  at http://www.msfraud.org/index.html.  In the near future because of negligence, Investors will likely be subject to liabilities for the above-described misdeeds.

While most of the mortgage frauds I follow have similar patterns (many of which mean that those involved end up in prison), I have not seen substantial abuse in foreclosure fraud.  That said, it doesn’t mean it isn’t an issue (likely it is).  It is I don’t find it on my radar screen for review and comment. 

Additional links were provided by the author Barbara Ann Jackson.  Thanks for Barbara for her work and the information contained herein:

Mortgage Mess, Foreclosure Fraud and Impediments to Justice
http://newsblaze.com/story/20071203130614tsop.nb/newsblaze/TOPSTORY/Top-Stories.

“ILLEGAL REAL ESTATE FLIPPING…”
http://www.lawgrace.org/2007/06/21/illegal-real-estate-flipping-unfair-enrichment-etc/

Comment on the Foreclosure of Judge Reginald Badeaux’s Home
http://www.lawgrace.org/2007/12/08/my-december-7-2007-comment-posted-to-the-times-picayune-blog-about-the-news-article-entitled-%e2%80%9cjudge-gets-debt-reprieve-badeaux-has-skipped-mortgage-payments%e2%80%9d-the-foreclosure-of-this-lo/

Casualties From New Orleans Ineptness and Corruption Coming To A City
Near You http://www.lawgrace.org/2006/06/30/casualties-from-corruption/

Federal Judges’ Pay Raise; New Orleans Federal Judiciary Call To
Impeach
http://newsblaze.com/story/20080101084831tsop.nb/newsblaze/TOPSTORY/Top-Stories.html

Business Ethics Speaker http://www.chuckgallagher.com  – Chuck Gallagher – off for now!

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10 Responses to Foreclosure Fraud – An Interesting Variation of Mortgage Fraud – Comments Ethics Speaker Chuck Gallagher

  1. ninemoonjupe says:

    What ever happened to keeping things simple, clean, ethical and above all honest? Good Grief! Why am I not surprised that some sleazebags will do whatever they can to make money off of grief and sorrow?

  2. tim mccandless says:

    I’m looking for pleadings so I can go after these guys in California. Any sugestions

  3. Tim says:

    Mr. Gallagher, if you would get your nose dislodged from the banks and servicing companies rectums maybe you might then be empowered to discover the treacherous world of mortgage servicing and mortgage lending fraud! It is disgusting that you have done apparently no homework on the subject matter but claim to possess an expert opinion on these scummy pigs and their lack of business ethics and continuing acts of fraud!

    It happened to us! We were never delinquent, ever! But, the originator of the loan, scummy Lehman Brothers and their piggy servicing company, Aurora Loan Services committed mortgage fraud; i.e., they forged loan documents after closing changing our loan from a conventional mortgage to a usurious payment option loan. These scummy pigs were paid over 23k in less then 10 months and prior to referring our loan for fraudulent foreclosure proceedings on a 1500.00 a month loan. The sums we paid were far in excess of what they were legally due under the loan we agreed to and that was disclosed! The scum then filed a fraudulent foreclosure action against us and we took the bait and filed for bankruptcy protection only to be met by their corrupt Judge who was a law partner to the law firm who touted Lehman and Aurora as their reprehensive clients. Faced with our 50 million dollar claims, he dirty rotten corrupt judge then lambasted us, ignored evidence and was intent on aiding and abetting with the theft of our property by looking the other way while the BK trustee colluded with OUR, CORRUPT LAWYER! We dismissed the bk seeing where it was going and discovering we were being victimized further by what is know as the Bankruptcy Foreclosure Scam and their handlers the corrupt courts, trustees and lawyers! And, these participants, the corrupt scummy judge, the scummy trustee and their DOJ along with our lawyer were all in on the take and in on the scam!

    So, again, if you looked for facts about mortgage servicing fraud and lender fraud and collusion you did not look hard enough as I suspect your nose remained wedged tightly in the anuses of the lenders and servicers asses as had you bothered to really investigate and become the supposed expert as you falsely misrepresent above, then you would have discovered this common, every day scam wrought against the innocent and honest consumers who are being subjected to it!

    Yes, we reported this to Calvin Wink, of Maryland, an FBI agent who acknowledged the feds know all about this scam but cannot help innocent consumers as THEY FOCUS ON THE BIG FISH! P.S. WE HAVE SEEN NO BIG FISHES YET AND SUSPECT OUR GOVERNMENT IS IN OR THIS SCAM AS THE CORRUPT BUSH ADMINISTRATION HAS NOT YET FAILED TO LIVE UP TO THEIR SCUMMY REPUTATION.

    I suggest you start at Mr. Neil Garfield’s web blog before you run off at the mouth again about something you do not want to know anything about as is apparent in your bullshit article above! Mr. Garfield is a lawyer who is an expert in this area of law so we suggest you do your dam homework first; his web site is http://livinglies.wordpress.com/

    We now have ethical, honest counsel and are suing the manure out of these greedy bastards; so please do not sit up here on your web page and lament over what you know nothing about or, because you have your nose stuck up the banking and financing industries asses as crummy reporters like you proliferating propaganda such as you have above are also part of the problem here to!

  4. Tim…obviously you have not read my blog in great detail or you would know I have my nose up no one’s ass. I have reported on mortgage fraud in many blog posts.

    That said, I appreciate your comments and hope that all goes well. Fraud is rampant especially in a down economy so I suspect that there will be more stories like yours. Keep me posted on the outcome.

  5. from Barbara to Chuck, as well as interested viewers:

    Although I sent you that email quite some time ago, it is incredible how little attention is being given to the BIG foreclosure defrauders –the debt collector attorneys who file bogus foreclosure pleadings! Constantly there are misleading media reports foreclosure “scams” as if those types are all that exist. Thank you for allowing me to raise awareness of this valuable information about the mammoth foreclosure fraud! The awareness of which, thousands of people actually HAVE NOT lawfully lost ownership of their homes! They just think they did because no authorities are going after the lawyers who are filing those bogus foreclosures and taking people’s property via extortion and any other method!. . .

    In case you haven’t visited my website lately, not long after the Lehman Brothers fiasco first came to light, I posted on my site some facts and proof about COLLUSION involving Lehman, Wells Fargo, and a specific outrageous Louisiana debt collector attorney. Succinctly, against a property mortgage one Clement Bailey –on behalf of Lehman Brothers, debt collector attorney A_____filed foreclosure case #2007-5610 in Parish Court. Concurrent with the Lehman foreclosure, that same attorney began a series of attempts to collect Katrina insurance benefits from Allstate Insurance Company –amazingly on behalf of Wells Fargo Bank, NA. Wells Fargo helped him out by filing a federal lawsuit #08-3881 to get that insurance money. It does not take a law degree to realize that the Katrina insurance money, if due, would be owed to Lehman Brothers and a federal lawsuit would have been filed by Lehman.

    The letter that the collector attorney wrote to Allstate, Sheriff foreclosure statement, and the federal lawsuit is posted on my website, along with more facts and proof of why I feel certain that Wells Fargo (and probably other mortgage companies connected with Hurricane Katrina damage and insurance payouts) is absolutely guilty of deliberately defrauding the IRS and receiving perhaps billions in undeserved tax write offs while abetting debt collectors attorneys who file illegal foreclosure and bankruptcy court pleadings in order to fraudulently FLIP real estate which enables mortgage companies to deceive Wall Street Investors, and pillage homeowners. Here are links to the Lehman Brothers’ and the IRS fraud by Wells Fargo postings:
    ▬http://www.lawgrace.org/2008/09/14/lehman-brothers%E2%80%99-mortgage-troubles-nationally-evidence-of-foreclosure-fraud-deception-and-conspiracy-with-wells-fargo-deceptive-judicial-filings/
    ▬http://www.lawgrace.org/2008/08/08/my-august-8-2008-statement-to-the-louisiana-secretary-of-state-office-of-financial-institutions-concerning-wells-fargo-irs-and-mortgage-frauds-sham-foreclosures-and-judicial-collusion-and-national-app/
    _________________________
    Barbara Ann Jackson
    Law & Grace, Inc

  6. Raj Yaokeem says:

    Attention:

    We represent the management of G and T trading Company Limited, Tokyo Kotsu Kaikan Bldg. 7F. 2-10-1 Yurakucho Chiyoda-ku Tokyo 100-0006 JAPAN ,”Engaged in international marketing of Painting & Crafts Tools, Power Tools and Outdoor Equipment since 1992″ G and T trading Company Limited, JAPAN have supplied Painting & Crafts Tools, Power Tools and Outdoor Equipment to many American and Canadian customers, total invoices in excess of US$3.6million since Last the year.

    Some of the American and Canadian companies have defaulted in their payment to G and T trading Company Limited, the Chairman of G and T trading Company Limited contacted me last month and through a Power of Attorney, appointed me to collect their overdue payments. I therefore require you’r legal representation in order to collect on the supplied invoices from the American and Canadian Customers.

    We understand that a proper Attorney Client Retainer will provide the necessary authorization and we are most inclined to commence talks as soon as possible. Your consideration of our request is highly anticipated and we look forward to your prompt response.

    Sincerely,

    Raj Yaokeem
    Yaokeem Consultants.
    No 33-35 Queen Square BS1 7LU, London

  7. Mike Dewine says:

    I am a victim of this also…. I want to fight. Does anyone have the pleadings for Ohio and California?

  8. Mike Dewine says:

    I am just starting my research. Exactly what law are the mortgage lenders breaking when they use defunct mortgage companies in their filings. I know it is morally, fraud, but what is the law (Ohio? California?).

    Thanks,
    Mike

  9. Tim says:

    Well Mr. G, thank you for the concern and comments however nothing has changed…..we are now another 15-20k poorer and chewing thru our 5th set of lawyers and, the BEST IS, we have discovered the presiding judge in our NOW case that was removed to FED Courts, OWNS STOCK IN CITIMORTGAGE/SMITH BARNEY, RENAMED UNDER LEGG but the scum bag has no business presiding over the case because he has a CONFLICT PURSUANT TO HIS CANONS AND MUST STEP DOWN…….WELL, DO THINK THIS JUDGE HAS DONE THIS? NO, AND, GUESS WHAT, HE IS CHAMBER BUDDIES WITH THE ROTTEN BK JUDGE WHO TOUTED Lehman Brother, Wells Fargo, CitiMortgage and Aurora Loan Service, Lehman’s bastard child; FACT IS THIS IS WHAT IS GOING ON IN OUR COURTS AND CASE!

    WE ARE NOW 7 YEARS, NEVER MISSED A PAYMENT, THERE WAS NO, DEFAULT AND, OH, CHUCK, THESE SCUM BAGS PULLED THIS POOHOLA IN THE UP MARKETS BECAUSE WE CAUGHT WELLS FARGO STEALING OUR PRINCIPAL AND INTEREST PAYMENTS MADE FOR THE SIX YEARS PRIOR TO THE LEHMAN LOAN……What happened is amazing to us and now our 5th lawyers but we threw money at ALS and Lehman and demanded, though never received, accounting from Wells.

    We suspect, this caused scummy ALS AND LEH to hold our payments in a suspense account, destroy our credit and force us into bankruptcy to stand before their JUDGE, JUST AS WE ARE NOW BEING FORCED TO DO AGAIN!!!!!

    Well Chuck we are here to promise you and your readers THAT WHEN OUR CURRENT JUDGE, COMMITS A TREASON UPON THE COURTS AND PUBLIC AND ORDERS A DISMISSAL OF OUR CASE, THIS TIME WE ARE FILING CRIMINAL COMPLAINTS AGAINST THEM ALL AND THEN WE ARE GOING TO INITIATE SUIT AGAINST THE VERMIN IS WHAT WE PLAN TO DO THIS TIME AND WE ARE NOT GOING TO STOP UNTIL WE EXPOSE THIS FOR WHAT IT IS, ORGANIZED CORRUPTION AT THE AMERICAN CITIZENS EXPENSE!

    IF YOU CAN IMAGINE MAKING YOUR PAYMENTS ON TIME AND HAVING NEVER BEEN LATE…….BY FACT AS OUR NOW LAWYERS HAVE CONFIRMED, WE WERE PREPAID OVER 8 MONTHS IN ADVANCE WHEN THEY INITIATED THE FIRST FRAUDULENT FORECLOSURE……..HOW WOULD YOU FEEL AND TO BE LAW BIDING CITIZENS, WE HAVE BEEN TREATED LIKE SCUM AND DEAD BEATS BY OUR VERY COURTS CHARGED WITH UPHOLDING OUR CONSTITUTION.

    We failed to tell you that we sent every payment certified return receipt, have every canceled check and bank statement due to the payoff balance discrepancy with Wells and, the new lender, Lehman is responsible to have disclosed the payoff was inflated by 25k!!!!!!!.

    OUR CURRENT JUDGE PAINTS THE POOR BANK DEFENDANTS ABOVE AS POOR VICTIMS BEING ENTHRALLED IN LITIGATION SINCE 2005, NAUSEATING STUFF FOR EVEN A BUZZARD……BUT, THIS IS WHERE THE WHEELS OF JUSTICE ARE TODAY AND, FORGOT TO MENTION WE ARE GOING TO TOP THIS WITH CRIMINAL COMPLAINTS WITH A STRONG CASE OF GOOD OLD MARYLAND MORTGAGE FRAUD ACT CLAIMS AND ARE GOING TO INCLUDE THE JUDGES IN THESE SUITS AS WE ARE OVER…….OUR CORRUPT REGULATORS, GOVERNMENT, CONGRESS, LAWYERS AND JUDICIARY SYSTEM THAT CARES ONLY FOR THE TOP 1% OF THE FOOD CHAIN……

    You may contact us for copy of the public lawsuit at the email address provided in this blogg.

    What we find amazing is this is a way of life for these judges and banks and this must stop! Even though we were never late, we could not get a judge to even look at our proof of payments as even our county circuit judge blew this off and, oh, by the way we are including this judge too as they must be stopped…

    We are ramping up our community work and are proceeding forward with filing pleadings in cases like ours alleging standing to sue and fraud as we have learned any……citizen may enter a relevant pleading in an appealed case as a friend of the courts and this is what we are now focusing our efforts upon as well as criminal charges for mortgage fraud against the judges who are enabling these thefts as they are nothing more than common criminals who need to impeached from the positions.

    God bless and please continue to bring stories like these as they are important and true stories. God bless all defrauded consumers, we know, they forged loan documents in our case after closing the how……WE CAME TO POSSESS NOT ONE, BUT 4……..First payment letters with not 1 but 4 varying monthly payments of $ 1500.00 1600.00 1700.00 and 1900 so you pick please and as for all those sobs who think everyone is a dead beat or got more than what they could afford, get off your lazy cans and do your homework as you people are also the problem mouthing mindless mantras of such, Tim

  10. Barbara Ann Jackson says:

    Here is ADDITIONAL info pertaining to foreclosure:

    “Case In Point: Foreclosure Mills, Judicial Fraud, Consumer Exploitation. . .”

    http://open.salon.com/blog/wwwlawgraceorg/2010/08/18/case_in_point_foreclosure_mills_judicial_fraud_consumer

    “Foreclosure mill fraud is exploitive. . .”

    http://www.huffingtonpost.com/social/lawgrace/homeowners-rebellion-coul_b_686921_57907192.html

    “Some Home Foreclosures are Actually Disguised Real Estate Extortions”

    http://newsblaze.com/story/20100411123047lawg.nb/topstory.html

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