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State AGs And Banks Prepare Fraudclosure Settlement... What the hell?

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posted on Nov, 16 2010 @ 04:46 PM
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Seriously? Those AGs are corrupt scum...as bad as congress.

Totally disgusting..


While sources say there is no universal solution to shoddy foreclosure practices at some of the nation's largest mortgage banks/servicers, the three largest, BofA, JPM and Wells Fargo, may be agreeing to the same solution.

First, banks would pay into a fund used to compensate borrowers who have claims after their home has been sold in foreclosure. The borrowers would have to prove they were wronged in the process, and the attorney's general would allocate the funds. In other words, the AGs would be the administrators. The amount of said fund is still undetermined, and likely still in negotiation. Each bank could settle on its own amount, or there could be a joint agreement.

Secondly, the banks would do away with the dual track of modifications and foreclosures. That means that only after all options of modification are exhausted can a bank begin foreclosure proceedings. Many borrowers currently complain that they are in the midst of the modification process when they get a notice of foreclosure sale. The drawback to eliminating the dual track is even greater extended timelines to foreclosure for borrowers. As it is, borrowers on average can be in their homes for a year and a half without making mortgage payments before eviction.

Finally, there would be some kind of agreement to third party mediation for review of all the cases in the first part of the agreement where borrowers are seeking compensation from the AG fund.


So basically, nobody goes to jail, all the tens of thousands of felonies are forgotten and their only punishment is to put taxpayer money borrowed from the FED at 0% into a ``settlement fund``.

Totally sick.




posted on Nov, 16 2010 @ 11:53 PM
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This is disgusting.
These banks, and their attorneys intentionally broke the law.

There ought to be prison time, and huge, huge penalties.



posted on Nov, 16 2010 @ 11:59 PM
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Originally posted by Oaktree
This is disgusting.
These banks, and their attorneys intentionally broke the law.

There ought to be prison time, and huge, huge penalties.


Completely agree, but when you own everything how can you get in trouble? Got enough money? It's a get out of jail free card.

People go to jail for one millionth the theft that these guys committed.

Pathetic system we have. They own the legal system.

Pred...



posted on Nov, 18 2010 @ 08:33 PM
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I know it's popular to beat up the state attorney generals and all, but this is what they SHOULD be doing. Fraud (except under RICO and similiar state laws where it would be necessary to find individuals which would not help out victims of the fraud) is a tort/contract law affair, and not a criminal action. Fraud typically does not entail jail time, and corporations cannot be put in jail. The best the law can do is give people the money they lost and sometimes a little more for time and hardship.

I do not understand society, on the one hand many want to get rid of punitive damages (like giving a victim of fraud a 250,000 award ontop of his money he lost back to punish the person who committed fraud), and at the same time hate the AGs for settling the cases to create a fund so the average victim who cannot get an attorney will have a state organization that can dispense the money. The best way to punish the banks is hit them in the pocket book, I love to see victims of the foreclosure fraud to go find an attorney, NOT settle the case, get compensation, perhaps some emotional distress, and finish it off with punitive damages against the bank. The total a decent attorney could get for a case like that would be well into the six figures on a home loan. Imagine all the victims getting those kinds of settlements, and I guarantee you this type of action would NEVER repeat itself.

Instead, thanks to people hating the very system that has been doing the punishment they have asked for the courts now in response are trying to reduce those types of damages so banks can settle and can pay pennies on the dollar. Every person who has hated a lawyer... I hope you enjoy what you get.

Remember in Shakespeare, the people who said "The first we do, let's kill all the lawyers" was said by a butcher and a tyrant




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