Wells Fargo admitted it made mistakes in roughly 55,000 foreclosure cases.  Surprise, surprise, surprise!

Wells announced Wednesday that it will quickly “fix” these issues and re-file the necessary documents by the middle of November.

Wells called the mistakes “technical“, and it says “it has no plans to halt the foreclosure process”.

Of course, they won’t stop the foreclosure process.  I mean why stop when you can plow ahead – right or wrong.

What exactly is a technical mistake?  Is that like the time I forgot to put a stamp of my payment and it came back?    Will you credit my payment as on time because of my technical mistake?   I doubt it.   But your “technical” mistake is not just a snafu.  It is a LIE!!!  Affidavits that state items like, “I have personal knowledge of this account and the balance owed.  I have personal knowledge that the owner of the debt is XYZ.”    Really?

Depositions of two Wells Fargo employees have called the company’s foreclosure practices into question. One employee said that she signed between 300-500 foreclosure documents a day, while another employee admitted to only verifying dates on the documents he signed daily.

The entire foreclosure application and judicial process is supposed to be built around substantiated facts.  Rolling into court, holding up a sworn affidavit which no one has read it, and declaring who owns the debt and the amount owed is just wrong.

We're coming for you!

It really gets me fired up when they say, “We don’t believe that there are instances in which the foreclosures would not have occurred otherwise,” Teri Schrettenbrunner, a Wells Fargo spokeswoman, said.

If this is so then why do we have people in our office facing foreclosure when they have MADE THEIR PAYMENTS!   Innocent as well as “guilty” people are being swept up in the rush to foreclose.  The facts need to be verified!

Why don’t we just lock people up because they appear so guilty that it is obvious that they deserve jail time.  What happened to due process?

- The Bank Slayer

Stay tuned as Bank of America has started pulling foreclosures in 23 states just as Chase & GMAC/Ally.

On the other hand, Wells Fargo claims that they have the documents in order.   Really, hey Wells Fargo, watch this blog as on Monday I’ll post your fraudulent Notice of Sales here in Texas.

- The Bank Slayer

Bank of America Halts Foreclosures in 23 States

An Official at Bank of America Acknowledged She Signed Up to 8,000 Foreclosure Docs a Month and Typically Didn’t Read Them

Bank of America will halt foreclosures in 23 states because of document problems. A Bank of America official acknowledges in a legal proceeding that she signed up to 8,000 foreclosure documents a month and typically didn’t read them.

The executive’s admission adds the nation’s largest bank to a growing list of mortgage companies whose employees signed documents in foreclosure cases without verifying the information in them.

Two other companies, Ally Financial Inc.’s GMAC Mortgage unit and JPMorgan Chase, have halted tens of thousands of foreclosure cases after similar problems became public

The Bank of America executive said in a February deposition in a Massachusetts bankruptcy case that she signed 7,000 to 8,000 foreclosure documents a month.

“I typically don’t read them because of the volume that we sign,” the executive said.

In statement, Bank of America said, “We have been assessing our existing processes. To be certain affidavits have followed the correct procedures, Bank of America will delay the process in order to amend all affidavits in foreclosure cases that have not yet gone to judgment in the 23 states where courts have jurisdiction over foreclosures.”

The disclosure comes two days after JPMorgan said it would temporarily stop foreclosing on more than 50,000 homes so it can review documents that might contain errors. Last week, GMAC halted certain evictions and sales of foreclosed homes in 23 states to review those cases after finding procedural errors in some foreclosure affidavits.

After GMAC’s announcement, state attorneys general in California and Connecticut told the company to stop foreclosures until it proves it’s complying with their state laws. The Ohio attorney general this week asked judges to review GMAC foreclosure cases.

And in Florida, the state attorney general is investigating four law firms, two with ties to GMAC, for allegedly providing fraudulent documents in foreclosure cases.

In some states, lenders can foreclose quickly on delinquent mortgage borrowers. But 23 states use a lengthy court process for foreclosures. They require documents to verify information on the mortgage, including who owns it. Florida, New York, New Jersey and Illinois are the biggest states with this process.

What’s involved?

When: The first Tuesday of every month.

Where: Usually at County Courthouse.

When: Auction typically starts at either 10am or 1pm

Primary Instruments: Promissory Note & Deed of Trust

Type of Foreclosure: Both Non-Judicial & Judicial

Timeline: Typically 60 days.  As fast as 21 days.

Right of Redemption: No, unless tax only foreclosure

Deficiency Judgments: Yes

In Texas, lenders may foreclose on a Note in default through the powers granted in the Deed of Trust (different from your Warranty Deed).  This can be either a judicial or non-judicial foreclosure process.

What’s the difference?

Judicial Foreclosure
The judicial process of foreclosure, involves the lender filing a lawsuit against you and trying to obtain a court order to foreclose.  This is used mainly for Home Equity loans and Cash out refinances.  Generally, after the Judge grants the lender permission to foreclosure, your property will be auctioned off to the highest bidder the same way as a non-judicial process.   These types of foreclosure can be stopped dead in their tracks if attacked early.

Non-Judicial Foreclosure
The non-judicial process of foreclosure is the default process for purchase loans as well as refinances that did not involve cash out; usually called rate and term refinances (you just wanted a better deal not cash out).    In the deed of trust, you pre-authorized the sale of your property in the event of a default.  The power given to the lender to sell the property will be executed by a Trustee.  This is typically the lawyer’s office sending letters informing you that you are in default the time and place they will sell the property.  These are tough to stop without the right kind of help or you paying them the monies they claim you owe.

What happens?

Prior to proceeding with a foreclosure, Texas laws state that the lender must mail the borrower a letter of demand, informing the buyer he has twenty (20) days to pay the delinquent payments or foreclosure proceedings will begin.

At some point after the borrowers twenty (20) days have expired, but at least twenty one (21) days before the foreclosure sale, a foreclosure notice must be: 1) filed with the county clerk; 2) mailed to the borrower at their last known address; and 3) posted on the county courthouse door.

The foreclosure sale will take place on the first Tuesday of any month, even if said Tuesday falls on a legal holiday.  The sale is by auction to the highest bidder for cash.  Anyone may bid, including the lender.  After the sale, the Trustee records a Deed conveying your property to the buyer even if it is your lender.  If you are still in the house, they will remove you.

The lender may then seek a judgment against you for any remaining balance owed on the Note.  The fact that they “took back” the house doesn’t necessarily relieve you of the money they claim you owe.  If they sell the house for less than you owe, they may track you down and make your life miserable by trying to extract it from you.