Predatory Lending and Foreclosure Fraud Impacts Minorities Most

GreaterDiversity.com

D.C. Resident files $3 Million Federal Lawsuit against ABN AMRO Mortgage Group and Baltimore-based law firm for fraud, civil conspiracy and consumer protection violations

Washington, D.C. — At a time when home ownership rates are soaring, a quiet epidemic is swirling through urban America: predatory lending and foreclosure fraud by unscrupulous mortgage companies seeking to swindle urban homeowners out of properties with appraised values that dramatically exceed the value of the mortgages held. Mr. Calvert M. Wilson, an African American and a lifelong Washington, DC resident, was one such victim.

On Jan. 19, 2005, Mr. Wilson and the Washington, D. C. office of Tennessee’s Andrews & Bowe, PLLP, filed a three million federal lawsuit against ABN AMRO Mortgage Group, Inc. and certain attorneys with the Baltimore-based law firm of Friedman & MacFayden, PA alleging that ABN AMRO and representatives of the law firm concocted a scheme to defraud him out of his residence in the lucrative Northeast Capitol corridor of D.C.

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Comments

[Barbara Ann Jackson]

Real estate foreclosures are predatory lenders' bonanzas because foreclosures enable PROPERTY FLIPPING, and flipping enables misleading investors concerning housing market profits. Debt collection fraud is the prime method for accomplishing fraudulent flipping. In fact, because of FRAUDULENT FORECLOSURE PROCEEDINGS, SCORES OF PEOPLE HAVE NOT LAWFULLY LOST OWNERSHIP OF THEIR PROPERTIES, AND LEGALLY ARE STILL THE OWNERS, but they do not know it. Even worse, some homeowners are being sued under "DEFICIENCY" judgments although the foreclosure itself is null.

Despite the many probes into factors of the mortgage crisis, there has been almost no investigation of the most lethal mortgage mess component: DEBT COLLECTION ABUSE and JUDICIAL COLLUSION. The Feds need to seek the whereabouts of perhaps billions of dollars and massive amounts of real estate that winds up in the collector attorneys' possession -as well as examine the scores of attorney bankruptcy court frauds.

Collector Attorneys deliberately file foreclosures naming defunct mortgage companies, or companies which no longer hold the notes; or affix collectors' fees exceeding "Acceleration Clauses." If homeowners sue or "Unfair Debt Collection Practices," collectors make more $$ through protracted litigations. Additionally, some collectors file in Bankruptcy Court falsified motions to "Lift Stay" pleadings for purposes of accomplishing SIMULATED AUCTIONS of real estate properties.

Additionally, as an added measure to heighten chances of judicial favor, collector attorneys propagate that defaulted property owners are costing their clients a lot of money, while the true culprit is collectors' fraud and racketeering. Exploiting distressed property owners for purposes of making money from their predicaments and then misrepresenting the facts has to be the cruelest exploitation and maligning against people faced with becoming homeless!

In States like Louisiana, because Wells Fargo and Freddie Mac greatly benefit from fraudulent foreclosures ANY representation about $$$ billion dollar losses due to people defaulting on mortgages should be weighed against needless payments of legal fees to law firms which outmaneuver -and even persecute people who file court proceedings in opposition to fraudulent foreclosures and repossessions.

In August 2005,Freddie Mac evicted Louisiana property owners because Freddie Mac falsely claims to have purchased their property in year 2005, from a mortgage company which has been defunct since year 2002. *See Proof at:
www.lawgrace.org/2008/01/05/united-states-chief-justice-robert%e2%80%99s-aim-to-raise-to-raise-federal-judges-pay-is-revolting-new-orleans-federal-judiciary-call-to-impeach-judge-g-thomas-porteous/ *Also posted on the lawgrace.org site is the "successor in interest" Affidavit for that defunct mortgage company.

Lastly, 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 litigation fees. Later, the property was sold to a 3rd party for $37,000.00. Investors got nothing, nothing practical was accomplished by evicting the homeowners, and neighborhood property values declined.
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Here's a few more links:

*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/

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

[janiece]

I'm with litton and they are screwing us big time !!!!!!!We had to file bankrupcy and don't know where extra charges for this and that.We I asked them they couldn;t give me a explaination always the run around. and not fixed rate so very time I turn around Our house pty is going up. I'm on the verge of fighting to keep my house like other peolpe that are with litton we need help they need to be stopped. janiece

[Marilyn Howard]

LITTON LOAN SERVICER, LP RANKS NUMBER "1" WORST PREDATORY MORTGAGE SERVICER!

Posted: January 7, 2006

Consumers Need Local, State and Federal Government Laws To Combat Predatory Lending!

Baltimore, Maryland. While everyone is undecided on what level of government should best protect consumer from predatory lending, Litton Loan Servicer, LP/U. S. Bank, NA and other predatory mortgage servicers, banks, mortgage lenders, etc. are reeking havoc and victimizing the most vulnerable homeowner’s i.e., African Americans, disabled, elderly, single woman and others. These predatory lenders engage in all or any of the following predatory behaviors i.e., loan flipping, equity stripping, ending in wrongful foreclosures which may result in illegal deflated public auctions, property flipping, RICO, RESPA and other violations.

There are horror stories in almost every state on Litton Loan Servicer, LP, formally a debt collection agency turned mortgage servicer is very aggressive in their attempt to take the number one spot in mortgage foreclosure. These predatory servicers are no longer in the business of performing loans. LITTON AND OTHER SUB PRIME LENDERS HAVE NOW FOCUSED THEIR ENERGY IN THE REAL ESTATE BUSINESS AND TEAM UP WITH UNSCRUPULOUS INVESTORS WHO PURCHASE FORECLOSED PROPERTIES AT AUCTIONS FOR A LOW PRICE. These fraudulent outfits or rings do low ball repairs, turn around, and sell homes for twice the amount paid to unsuspecting consumers. This is far beyond capitalism, but an outright rip-off!

Litton Loan Servicer, LP executive offices are located in Houston, Texas and will take your home not in a New York minute, but a Houston, Texas second! It seems lawmakers fail to get involved or are just looking the other way. For more info click on http:// www.prweb.com/releases/2005/11/prweb312926.php.

Litton has been allowed to run rampant, from not applying mortgage payments, forced placed insurance, failing to issue pay off notices and filing wrongful foreclosures. Litton also, allows its sub trustee’s (attorney’s) to engage in fraudulent misconduct with regard to wrongful foreclosures actions by low balling auction sales, property flipping, equity stripping circumventing state laws and court procedures, resulting in thievery, breaking and entering.

In one case, Litton Loan Servicer, LP/US Bank NA and Washington Mutual may have known reason why a homeowner in Baltimore City was not making his mortgage payments was because of his death and not refusal to pay his mortgage company. Instead of appropriately notifying the probate court of the man’s death, Washington Mutual sold his loan to Litton. Inappropriately, Litton filed a foreclosure action in circuit court circumventing the law by taking possession without a court order, illegal breaking and entering the man’s home and took whole contents of household without the man’s family’s permission. More conduct that is reprehensible is attorney’s for Litton were involved with bidder/purchaser that defaulted on their loan finance obligations and all argued over the deceased man’s home for (6) six months. The defaulted purchasers may not even be U. S. Citizens that are involved in this real estate property flipping scam. The deceased man’s family contacted Litton Loan Servicer and its attorney’ trying to recoup his home from foreclosure. However, Litton’s Attorney, Friedman Law firm, refused to speak with her and did nothing to return home back to family. The Friedman Law firm has engaged in the same fraudulent behavior in another case regarding D. C. resident. Click on: www.emediawire.com/releases/2005/2/emw206198.htm.

Lawmaker’s and all else are missing the boat on this one! Predatory lending is not just a state or a federal issue, but laws are needed at all levels of government. In the case of deceased man mentioned above, his rights could have been better protected if Baltimore City government had predatory lending laws in place. The State of Maryland should require mortgage lenders to define what a default is in all mortgage notes and contracts. As in the case of a FHA loans, homeowners must have at least (3) consecutive missed payments before any foreclosure action is filed in court. All states should have a uniform minimum standard requirement, much like the FHA default standard before any foreclosure action is filed.

Currently, in State of Maryland, a hearing is not mandatory and lender is not required to define what a default is, which leaves the homeowner vulnerable to abusive power by mortgage company’s. All states should require mandatory hearing after foreclosure action is filed in court. In the state of Maryland, the laws are more favorable toward the lender. If you cannot afford to hire an attorney to represent you, your case may not be heard and you probably will lose your home. States need to pass new laws to protect homeowners throughout the whole foreclosure process. As it stands now, lenders and it’s lawyers use the legal system to engage in fraudulent behavior during the foreclosure sale process by violating redemption rights, illegal possession, illegal auction process, bidder/purchasers scams, etc.

Predatory lending is no different then any other consumer protection issue whereby if the local government or state government fails to protect consumers rights then the next step for justice is to the federal government. This is what the founding fathers had in mine, which has always been the natural progression in this country. Checks and balances is what make this country great and reason the civil rights movement was brought about!

Marilyn E. Howard - Advocates for Justice
Email Address: Lynnlindsey46@yahoo.com