Randomly Distributed Trial Court Justice: A Case Study and Siren from the Consumer Bankruptcy World

Randomly Distributed Trial Court Justice: A Case Study and Siren from the Consumer Bankruptcy World
Forthcoming in American Bankruptcy Institute Law Review
by Gary Neustadter*

Mortgage_fraud_hd“Between February 24, 2010 and April 23, 2012, Heritage Pacific Financial, L.L.C. (“Heritage”), a debt buyer, mass produced and filed 218 essentially identical adversary proceedings in California bankruptcy courts against makers of promissory notes who had filed Chapter 7 or Chapter 13 bankruptcy petitions. Each complaint alleged Heritage’s acquisition of the notes in the secondary market and alleged the outstanding obligations on the notes to be nondischargeable under the Bankruptcy Code’s fraud exception to the bankruptcy discharge. The notes evidenced loans to California residents, made in 2005 and 2006, which helped finance the purchase, refinancing, or improvement of California residential real property. When issued, the notes were secured by junior consensual liens on the real property, but subsequent foreclosure of senior consensual liens, precipitated by the mid-decade burst of the housing bubble, left the notes unsecured.

This article reports an empirical study of these bankruptcy adversary proceedings. Continue reading

Homeowners SuperPAC Has Launched Facebook & Twitter

Homeowners SuperPAC has launched Facebook and Twitter and is socially acceptable! Spread the word.

HomeownerSuperPACWe need to reach and every homeowner in the nation to help us become the powerful lobby needed to make the necessary changes in the mortgage lending industry. Now is the time to “Friend” Homeowners SuperPAC on Facebook and Tweet all of your friend to follow at https://twitter.com/HSuperPAC

More people – more power! Share the knowledge.

Fed Recognizes Foreclosure Abuse – Admits Errors (well, some of them anyway)

Press Release

FED ReportRelease Date: July 7, 2014

The report released today provides information on the process for the review of the foreclosure files during the IFR and file review results, including servicer error rates during the IFR, up to the time the IFR was replaced. The report also contains updated information on direct borrower payments and other assistance from the Payment Agreement and discusses the Federal Reserve’s ongoing supervision of corrective actions the mortgage servicers are required to implement. The report focuses primarily on servicers regulated by the Federal Reserve. Continue reading

America’s Homeowners’ SuperPAC Launched!

By Sydney Sullivan

wewilluniteDuring the weekly Sunday afternoon Foreclosure Hour broadcast, Honolulu attorney Gary Dubin and former Governor John Waihee announced the formation of the Homeowners’ SuperPAC.

“The time has come,” said Mr. Dubin, “where the voice of the American homeowner needs to be heard and the rights to live in their homes protected.”

In the United States, a political action committee (PAC) is a type of organization that pools campaign contributions from members and donates those funds to campaign for or against candidates, ballot initiatives, or legislation. Gov. Waihee and Mr. Dubin have designed a Homeowners’ Bill of Rights and plan to organize the Homeowners SuperPAC initiative in every state. If you missed the broadcast – click to listen here: Click link to the left for entire Inverview Continue reading

Former Gov. John Waihee launches new Homeowner SuperPAC on Sunday Radio

BY GARY DUBIN, ATTORNEY AT LAW

Gov. WaiheeDon’t miss this Sunday’s 3 p.m. Foreclosure Hour on KHVH-AM radio, featuring former Hawaii Governor John Waihee.

John and I are launching the HOMEOWNERS SUPER PAC on Sunday — a national political action committee providing financial muscle for what heretofore has been a sleeping giant.

This is the final solution, giving homeowners for the first time a seat at the nationwide decision making table. Continue reading

State AGs settle with LPS for $113 million; Only Nobody Knew

cluelessIn an investigative post, MSFraud.org exposed an unknown state Attorneys General settlement with Lender Processing Services (LPS) for $113 million dollars in an El Paso district court.

One would wonder how, for example, the State of Hawaii (who received a pittance compared to the damage to titles LPS has caused) could even begin to agree to a settlement when they have NEVER even bothered to audit its own Hawaii Bureau of Conveyances! Hawaii is a mortgage lien state where the homeowner holds the deed, unlike a Deed of Trust state where the deed is held by a (fishy) beneficiary.

Millions of homeowners never knew that LPS fabricated and falsified documents that could still cloud their titles for years to come – even if they received a modification. The point here is that many states, including Hawaii where land rights are a very precious subject, have turned a blind eye to fraudulent assignments of mortgage or the fact that the mortgage   Continue reading

20 Cities That May Face Bankruptcy After Detroit

City Of Compton, California Considers BankruptcyGenerated from a Newsmax post:

Think Motown is the only major U.S. city in a boatload of financial trouble? Think again. By Stephen Moore

Detroit’s bankruptcy filing sent shivers down the spine of municipal bondholders, government employees, and big-city urban residents all over the country. That’s because many of the 61 largest U.S. cities are plagued with the same kinds of retirement legacy costs that sent Detroit into Chapter 9 bankruptcy this summer.  Continue reading

Grotesque Plan for Detroit: Fleece Working People to Save the Banks

Hands-off-our-Pension-June-10Municipal workers could be robbed of pension funds to pay big banks for payments due on interest rate swaps.

The Detroit bankruptcy is looking suspiciously like the bail-in template originated by the G20’s Financial Stability Board in 2011, which exploded on the scene in Cyprus in 2013 and is now becoming the model globally. In Cyprus, the depositors were “bailed in” (stripped of a major portion of their deposits) to re-capitalize the banks. In Detroit, it is the municipal workers who are being bailed in, stripped of a major portion of their pensions to save the banks.

Continue reading

Assault on Wall Street – The Movie…the dream…COMING SOON!

Assault on Wall Street covrMOVIE INSIDER: A security guard for an armored truck, Jim (Dominic Purcell) is a blue-collar New Yorker who works hard to earn a living. His wages support himself and his wife Rosie (Erin Karpluk), who is on the upswing recovering from a near-fatal illness. Yet things start to fall apart after Rosie’s health insurance stops covering her treatment and Jim’s life savings are lost via a disastrous investment his stockbroker had advised him to make. As a row of professional and personal dominoes falls, Jim is confronted by the realization that, after being abused and exploited by financial institutions for far too long, he has only one choice: to strike back. Sounds all too familiar?

Here are the movie trailers that are more than compelling drama. Assault on Wall Street is a stirring and probably a recurring dream for many foreclosed homeowners and pension-less employees that have been stripped of their savings, equity, homes and security. Continue reading