Over the past few months, we’ve been following perhaps the worst abuse by the banks in the foreclosure crisis – breaking and entering homes where they are foreclosing, changing the locks, and terrorizing the owners. The banks claim that they only do this with vacant homes, in an effort to keep out squatters, but it hasn’t worked out that way. There have even been reports of break-ins on homes where the borrowers are current on their payments.
Borrowers who have seen their homes broken into are fighting back and even suing the banks over this practice. If signing false documents and lacking standing to foreclose is too technical for the courts, perhaps breaking and entering will be what stops the banks’ reign of terror.
When Mimi Ash arrived at her mountain chalet here for a weekend ski trip, she discovered that someone had broken into the home and changed the locks.
When she finally got into the house, it was empty. All of her possessions were gone: furniture, her son’s ski medals, winter clothes and family photos. Also missing was a wooden box, its top inscribed with the words “Together Forever,” that contained the ashes of her late husband, Robert.
The culprit, Ms. Ash soon learned, was not a burglar but her bank. According to a federal lawsuit filed in October by Ms. Ash, Bank of America had wrongfully foreclosed on her house and thrown out her belongings, without alerting Ms. Ash beforehand.
Ash was in the middle of working out a loan modification when this happened. “This is in essence a burglary,” Ash remarked. The bank took her late husband’s ashes.
You can talk about tacked-on late fees, wrongful denials of loan modifications, lost paperwork, and people aren’t particularly moved. When you mention that the banks are breeaking and entering into homes, clearing them out of possessions, and changing the locks, people get it. This is a criminal enterprise on the part of the banks.
In Texas, for example, Bank of America had the locks changed and the electricity shut off last year at Alan Schroit’s second home in Galveston, according to court papers. Mr. Schroit, who had paid off the house, had stored 75 pounds of salmon and halibut in his refrigerator and freezer, caught during a recent Alaskan fishing vacation.
“Lacking power, the freezer’s contents melted, spoiled and reeking melt water spread through the property and leaked through the flooring into joists and lower areas,” the lawsuit says. The case was settled for an undisclosed amount.
The banks claim they must do this as part of the normal process of inspecting foreclosed properties and protecting them from vandalism. And there is an obligation in most mortgage contracts for the bank to secure the home within 60 days of default, if the house has been abandoned. But there are so many instances of them getting it wrong. And let’s be clear, the real number of wrongful breaking and entering should be ZERO. We had 200 years of a precise title recording system, where the county, the bank, and everyone involved knew exactly who owned the home, who lived in it, and what the payments were. That time has come and gone, broken by greedy bankers who wanted to securitize mortgages quickly and save money on recording fees. They caused this problem, but they’re not feeling the pain as a result. The suffering is borne by homeowners who are getting robbed, literally robbed by the banks.
In this world of confusion and thug tactics from the banks, the least that the federal government could do is set down some legitimate rules to protect homeowners from servicer abuse. The Fed is fighting that.
Top policymakers at the Federal Reserve are fighting efforts to rein in widely reported bank abuses, sparking an inter-agency feud with the FDIC and the Treasury Department. The Fed, along with the more bank-friendly Office of the Comptroller of the Currency, is resisting moves to craft rules cracking down on banks that charge illegal fees and carry out improper foreclosures. The FDIC supports such rules, according to an FDIC official involved in the dispute.
The new regulations would rein in debt collection, loan modification and foreclosure proceedings at bank divisions called “mortgage servicers.” Servicers have committed widespread fraud in the foreclosure process. While the recent robo-signing of fraudulent documents has received the most attention, consumer advocates have complained about improper fees and servicer mistakes that lead to foreclosure for years.
“Given that we’ve seen a massive failure in servicing practices and a massive failure to address servicing in an honest way, I think this is important,” says Joshua Rosner, a managing director at Graham Fisher & Co., and longtime critic of the U.S. mortgage system.
When you read that the Federal Reserve is resisting rules on servicers, consider this story. They don’t want to stop the banks from breaking into your house.




45 Comments

Support this site!
Subscribe to the newsletter
Advertise on Firedoglake
Send
us your tips
Make us your homepage
About FDL News Desk
Brutal, just brutal . . . hope this explodes and heads roll and people demonstrate their rage at The Fed And Bankers by letting their elected offals know how they feel.
Not to mention take your money out of the big banks and go with a smaller local community bank . . .
This shit’s just unacceptable . . . SOMEthing must stir the masses so they voice their dissatisfaction with present elected’s, officials and the business community.
-W. Guthrie
Yeppers. How much doubt is there left that NOLA was the first, planned regional test case for programmed law breaking as this?
Tangential– “Funds and individuals taking physical delivery of silver have forced JPM to increase their silver shorts and break reporting laws more aggressively.” (more here)
It is just horrible that our Government Agencies should be more interested in engaging in internecine squabbling than protecting the citizenry from yet another example of corporate thuggery. Not surprising, but horrible, nonetheless…
I was just mentioning BOA below. So glad you put this one up, David.
I’m still searching for the article I read this morning where they are betting on women going into 2011.
I wonder what the end game is…
After throwing all the owners in to the streets, who do they think will buy all the empty houses?
Probably do not think that far ahead.
There are always two sides to every story. I am a Realtor in Northern Virginia. A few years back, at the beginning of this mess, I was retained to sell a foreclosed home on behalf of a bank where they had a mortgage in excess of $1 million. The previous owners had simply gutted the place. All of the appliances, including a hood over the range and every knob on all the doors and drawers in the kitchen, were taken out. The back-up generator was gone. Two vanities in the main floor baths were gone. A tub had been removed from the basement. Outside water was left running. The propane tank was left open and about 800 gallons of LPG vented into the air. The garage door opener machines were taken.
with the approval of our sheriff’s office we did change the locks after the prior owners had left. Our law states that if there is anything left in the house worth over $500, it must be advertised in the paper, then put on the curb, then after 24 hours, removed from the curb. There were bits and pieces of essentially junk left n the home. To be completely safe we did all of the required steps. Together with the sheriff, I oversaw all that, trooping out to the home on many days.
Insofar as I know, there were never any repercussions to the prior owners.
I did feel for the folks that lost their home, but there is always a second side to the story and malicious damage is not a good response, no matter the case.
and what I am saying is that not all participants in the real estate business are either evil or bad.
At ZeroHedge.Com — “Bank Of America’s Latest Decoupling Strawman: Go Long Women”
—-
Hmmm … “Advice From a Fraudster – White Collar Crime and Criminals” (Posted by Foreclosure Fraud on November 27, 2009):
The apparently forthcoming Wikileaks info about BoA couldn’t happen to more deserving people. Reprehensible notions about man traps just inside the door flicker through my noggin. The banks’ behavior is little removed from rape.
Yeah, because that is exactly what the post said.
So you think they should be allowed to break the law? The post didn’t mention anybody going to law enforcement or any legal avenues – unlike you. So quit whining
Thank YOU! I knew it was there somewhere. I looked at so many places this morning, I forgot where it was. You just proved that I wasn’t telling tall tales on the biggest banker/crooks in our area.
Heh.
“There is a stigma that we go in, kick the door in and throw grandma out head first and board up the windows,” Mr. Jaffa said.
Wrong + Wrong ≠ Right
I have family members in real estate. No they are not bad. This bank screw over has nothing to do with them. They are for the most part doing their jobs the way it should be done. I have no qualms with RE agents. They themselves do not predatory lend or trick people into bad loans.
Yes, some of them have to change locks and do what is necessary in order to keep the property marketable.
However the article does say:
I’m not clear how these break-ins work and somehow I doubt David will fill in the details. But forcible entry requires an officer of the court. Which means that the courts in the jurisdiction of the bank and homeowner authorize these break-ins. Or are we living in the wild west where officers of the courts and gangsters are one and the same?
Deepest apologies, but I couldn’t resist.
The banks seem to be sidestepping the legal procedures. Because they own the mortgage and feel they own the property, they can smash the door in if they feel like it.
You’re welcome.
OT– Greg Palast was temporarily jailed recently:
“For the safety of the people with whom we operate, we are taking this post ‘private.’ And by the way, Palast and those with him are safe and away. Happy holidays – The Palast Investigative Team.”
Jones said “Greg Palast Arrested — Busted by BP in Azerbaijan” (Dec. 21, 2010)
Ever heard of the “repo men”? Bankers have an on-hand stable of such folks (and, yes, some of them are women). I’ve had chilling interactions with bank execs. They will only deal with you via your counsel once you know they want to make a deal. Getting things legally retrieved that have been legally determined as stolen then moved across state lines is quite non-trival.
It’s way past time to start jailing bank “executives.” Punitive actions that are only about the dispensing of cash are considered a mere nuisance and cost of doing business. Hard jail time, on the other hand, would have a decidedly more tangible effect.
Palast is one gutsy fellow. Azerbaijan is not one of the most hospitable places to visit.
Where does it say that, according to the article:
Good Lord there are some boorish men in that comment thread. ” Women aren’t financially savvy?” Heh. Yeah those men sure have been doing a bang up job running the economy. Last I checked the majority of economists that got it right were freakin’ women. Have I mentioned that there were a bunch of boorish men in that comment thread? :)
Thank you for posting this, David.
These practices are eroding the legitimacy of our government. Once a certain line has been crossed in the violation of individual rights, the government becomes just a gang of crooks, even if it still has majority support. It has no more moral authority than the Sheriff of Nottingham. Our government is dancing perilously close to that line.
I also find it ironic that hypocritical “libertarians” and “conservatives” who claim to hold private property rights sacred, and to detest government interference in the market, will defend and rationalize our government’s tolerance of, and complicity in, this kind of brigandage. The Fourth Amendment “right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures” has moral authority. The right of private property as such – where that includes corporate wealth, and vast individual fortunes that extend far beyond “houses, papers, and effects” – has no moral authority.
Courts authorizing the break-ins. That’s funny.
The entire scandal of foreclosure fraud features fake summonses and fake documents and fake notarizations. Here too. The banks aren’t studiously getting authorization from the court before breaking and entering and changing the locks. They’re mostly going ahead and doing it.
Yes, the boorishness jumped right off the page. ZeroHedge can be an odd place at times.
Risky business on the part of the intruders. It’s just a matter of time before an armed occupant takes aim at an intruder in “self defense.” Even in the cases the intruder is killed, courts routinely rule in favor of the occupant.
considering that FRAUD and PERJURY were/are committed in a court of LAW, hundreds of thousands of times, does anyone believe this issue will somehow be seen differently?
no, of course not.
this will also be brushed under the table and/or retroactive immunity.
they do own the place. they own the lawmakers, the regulators and inspectors, and even the judges.
things will get a lot worse.
good luck to us all.
But will that still continue to hold when the intruder is working for the Powers That Be?
This is America, the land of the Golden Rule:
He who has the gold, makes the rules.
Fantastic post, DDay.
I hope you’re right about that. But I’m not sure. I keep asking: How much pain can the American people endure before they snap out of it, stop eating the lotus and drinking the Kool-Aid, and start realizing that they need to do something? An awesome amount of pain, apparently.
Indeed, that’s the point – and even when it is brought to the attention of the courts after the fact, they rationalize the violence and fraud, or just look the other way.
When I first read this post, many proposals for changes in the law sprang to my mind, and I felt the impulse to write comments about them. But what’s the point of new laws, when the courts – and the general population – don’t see the need to enforce the laws that are already on the books? Changes in the law will indeed be necessary, but they’re a tertiary consideration. The first step is just to get people to wake up!
We used to have a DOJ….& a congress that represented the people.
It’s now “Corporations R US”.
I’m sure obama will find a way to excuse these actions as a simple paperwork error. Then the next day hold a press conference preaching about accountability. If it was the average Joe doing this he’d be all for indefinite detention as the punishment.
Crocodile tears, compared to the largess of criminal and corrupted banks and their cronies.
You do a disfavor for each and every family that’s lost their homes due to loss of employment and criminal minds . . . IMHO.
Class war.
The bad guys are winning . . . the good guys do whatever they have to do.
Poor bankers and sheriff’s.
And poor you, getting paid all along from others misfortunes.
Crocodile tears.
Nicely said . . . arguing for a moral ground about the immorality that’s taking place (social, legal and civil immorality) is pure Rovian bullshit.
Citizens v. United was the official game changer . . . it legitimized corporate ownership and theft of the masses (not that any of that was lacking going back to Nixon thru Bush’s).
Great comment, thanks.
In case I didn’t mention it, great read David . . . your work on a daily basis is voluminous.
You do journalism proud with your breadth and attention to detail.
Wish I could say anything close about the MSM’s hacks across all mediums.
And what will happen when Wikileaks releases yet more documents? Will anyone be put on trial? Will anyone be jailed as a result of the fraud that has been committed against honest homeowners? Probably nothing. We will allow the criminals to be free while a whistle blower sits in solitary confinement because he believed in doing the right thing. How many of us could be confined for most of the day and only be allowed to walk around for up to an hour? Solitary confinement would be my sentence to all the bankers/wall streeters who caused this mess along with their cousins the rating agencies.
Ms Ash did not abandon the home. It was a second vacation/ ski weekend home. Just like the other example of the Texas home with the salmon in the freezer, vacation home. Being not at home, or not living there does not mean the house is “abandoned”. Surely, the bank knew Ms Ash’s home was a second home. They knew she might not likely be there. They took advantage and probably jimmied the lock. Who would not recognize a box of ashes? I hope the Wikileaks info proves this kind of thing is sanctioned, mean-spirited retaliation by B of A just to show people who’s in charge. B of A is the worst one for agreeing to modify a note and then 3 months later, even when payments are being made on time, re-starting the foreclosure process.
WTF? How is your story another side to the post? Is it too much fucking trouble for the Real Estate Industrial Complex storm troopers to MAKE SURE THEY’RE BREAKING INTO THE RIGHT HOUSE before they launch the blitzkreig?
Just more evidence that the real estate and financial industries are corrupt, sleazy and sociopathic from top to bottom.
I heard he’s not only confined, he’s being denied things like sheets and pillows.
Yup.
Heck, I’d just put up a wall around lower Manhattan. Dollar for dollar, more crime has taken place there in the last 100 years than the rest of the nation combined.
@greybeard — there is a McMansion stripped out like the one you describe on the highway into town. It was originally the showpiece home for a whole development that has now pretty much been repo’d, one by one.
The lovely things that came out of that McMansion were sold at the local Habitat for Humanity all during the summer.
Now, wasn’t that nice of the bank? And people say they’re such greedy SOB’s . . .