This is about a month old, but it was updated last week, and the scarred lives of foreclosure fraud victims resonates regardless of date.
“It makes mafia’s organized crime look like fifth-grade math,” said Patrick Powell of Cumming.
Powell said he became a victim of massive foreclosure fraud when he attempted to modify the loan on his Forsyth County home. He said the bank told him not to make his mortgage payments while it worked out the loan modification, then lost his 60-page modification application six times [...]
Powell was about to lose his home when he saw a 60 Minutes report in 2011 that blew the lid off the industry’s big secret.
The report revealed banks used phony documents to push people out of their homes. The documents were apparently created because banks lost the original documents when Wall Street bundled mortgages into trusts and sold them to investors.
Bank attorneys and foreclosure firms forged the documents, called assignment of mortgage, which sometimes contained incorrect information about the true owner of the mortgage. The signers that provided signatures of bank vice presidents and notaries were called robosigners.
60 Minutes exposed one prolific robosigner named Linda Green.
“I saw that and I said ‘Linda Green!’ I pulled out my assignment and it’s Linda Green,” said Powell, who thought courts would quickly toss out the case since the bank was trying to foreclose using fraudulent documents.
The rest is familiar. The judge refused to allow Powell to consider the fraudulent assignments in his foreclosure case, and in fact reacted with anger when Powell tried to explain it in court. The response of the judges in Georgia resemble reactions around the country. And really only a handful of anti-foreclosure activists and some registers of deeds have clued into this massive fraud. The woman responsible for mortgage transfers in this area of Fulton County, Georgia, said she’s basically not responsible for authenticating the documents she receives into her office.
The biggest issue here is that the foreclosure fraud settlement was supposed to wipe the slate clean, with immunity given on past assignment fraud along with a promise to change the behavior. The dirty secret is that it hasn’t changed. Registers of deeds paying attention, like John O’Brien in Massachusetts, still routinely receive faulty or fabricated assignments.
Sam Olens, the Attorney General of Georgia, justified this by saying that, once July 1 of next year hits, the banks will truly, really not engage in foreclosure fraud, because the state passed a law empowering district attorneys to prosecute the matter criminally. This is a frequent refrain, and it assumes that false documents submitted to a court were somehow legal at one time, which should be news to everyone. Here was Olens’ response:
“Look. It’s more complicated than that,” Olens said. “When you’re dealing with the foreclosure process most of the time the documents weren’t being changed in the state.”
But Powell’s assignment was signed in Georgia along with untold thousands of others inside an office in Alpharetta.
Local news, paradoxically, has done most of the best journalism on foreclosure fraud. They actually get public officials on the record on their evasions and unwillingness to prosecute. And they listen to the stories of the people whose lives have been shattered by fraud and abuse.





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Thanks so much, David, for staying with this vital story, and for appreciating the — well, call it valor — of Southern Essex (MA) District Register of Deeds John O’Brien, http://www.salemdeeds.com.
O’Brien has tirelessly sounded the alarm for years about how big banks’ forged, purported assignments of mortgages (e.g., to mortgage-backed securities), with forged notary public signatures, and other documents affecting title with forged signatures, have damaged the chain of title for countless American homes, and have facilitated banks’ widespread taking of homes by fraud.
It’s of course not just “Linda Green.” Banks have used, and may well still be using, many more “robosigned,” that is, forged, names.
Registers of Deeds can do a lot more to protect American homeowners than most are doing now.
My understanding is that Register John O’Brien refuses to record documents bearing any signatures reliably vetted to establish that a person of a given suspect “robosign” name was NOT employed on the date in question by the institution in question — unless the bank or lawyer or title examiner proffering the documents executes an affidavit attesting to the genuineness of the suspect signature(s).
Apparently, in literally hundreds of such cases, in this single Registry of Deeds, no such bank or lawyer or title examiner ever has. Enough said.
If an established “robosign” name appears in documents concerning a foreclosure, my understanding furthermore is that O’Brien will give the homeowner a letter saying so.
This issue could scarcely be more serious.
The current Register of Deeds contest in Hampshire County, Mass. pits an inexperienced Democratic loyalist against former Democrat and now Independent George Zimmerman, at present Finance Director of the city of Northampton.
I’ve heard the inexperienced one say at a large public candidates’ event that, as Register, she’d record robo-signed documents, and that it’s time to put aside what she called the “fearmongering about robosigning,”
Words fail.
On the other hand, George Zimmerman’s extensive financial and real estate background, and what seems a real concern for Hampshire County homeowners, appears to augur well for them if he wins on Nov. 6.
How in the world our law enforcement officials fail to understand that “robo-signing” is, in Mass., the 10-year felony of forgery, beats me. Mass. General Laws Chap. 267, Section 1. Fortunately, George Zimmerman gets it.
Alas, our Hampshire County DA apparently does not. He strongly backs the inexperienced one.
We’re going to be fighting this one for a long, long time.
The whole system is corrupt to the very core itself.
The exceptions, can count with fingers on one hand, only prove the rule.
Fraud is legal.
Fraud is not legal. It’s just that precious little of it is prosecuted, in the U.S., at least!
For a handy list of “robosign” names approved by McDonnell Property Analytics, http://www.mcdonnellanalytics.com, updated to 9 May 2012, see: http://www.salemdeeds.com/robosite/pdf/robosigners.pdf
If starting from http://www.salemdeeds.com; scroll way, way down the homepage and click under the green heading, “To Search the 31,783 Robo-Signed Documents, click here.”
Then click on the red heading, near the top of the page, saying: “Click here to view the list of active robosigners identified by McDonnell Property Analytics in Our Registry.”
This list should be useful nationwide to help stop fraudulent foreclosures.
Correction to 1, above: Southern Essex (Mass.) District Register of Deeds John O’Brien will provide robosigning victims with an affidavit, not a letter,”as proof that a document being used to take your home contains a fraudulent or surrogate signed document.” Ibid.