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Anatomy of a Foreclosure

Institutional mortgage juggling leads to disabled Altadena woman’s eviction

Originally posted on Pasadena Weekley on June 5th, 2013

harolyn_eviction_scene.jpgIn spring 2003, Harolyn Rhue, then employed as an administrative assistant at Bank of America, was ready to sell her condo in Altadena. A rambling three-bedroom ranch-style home near the foothills was offered in a probate sale so Rhue made a $100,000 down payment and, though troubled by its terms, took a World Savings mortgage arranged by her broker for the balance.

But last week, around her tenth anniversary there and after several years of seeking loan modifications from Wells Fargo Home Mortgage — which absorbed World Savings’ assets when it acquired Wachovia Bank in 2008 — Rhue was kicked out of her home.

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Harolyn Rhue Wrongfully Evicted

harolyn_evicted_20130530thumb.jpgHarolyn rhue was wrongfully evicted on May 30, 2013 from her home by the Los Angeles Sheriffs Dept. They violated Harolyn’s bankrupcty stay and kicked this disable homeowner out to the streets.

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Open Letter to Kamala Harris

Open Letter To California Attorney General Kamala Harris on Two Year Anniversary of Her Mortgage Fraud Strike Force

Dear Attorney General Kamala Harris,

ag-kamala-harris-official.jpgYour state's homeowners, who know first-hand the vast injustice of the mortgage / foreclosure crisis, are here today, the two-year anniversary of your Mortgage Fraud Strike Force, to demand that the Strike Force live up to its name and prosecute and bring to trial the big banks for their mortgage crimes.

Your office took close to $90 million of the $18 billion that came to CA from the 49-state mortgage settlement—five times the minuscule $18.4 million that reportedly went to homeowners. Yet we see zero important prosecutions of bankers at the helm of creating this crisis of mortgage fraud—a crisis of fraud you yourself said is directly linked to our state's budget woes. We do not understand why the crimes behind the tanking of our entire state's economy, the consequences of which have devastated entire neighborhoods and created extreme hardship for millions of Californians, are not important enough to prosecute and bring to trial.

You have just brought suit against JPMorgan Chase for fraudulent and unlawful debt-collection practices against credit card borrowers But you know as we know this is a tiny tip of the iceberg. Chase and other big banks do identical unlawful debt-collection practices when collecting on the debt of a mortgage / deed of trust by foreclosing. Robosigning is at the heart of the credit card suit. Robosigning of fraudulent documents is at the heart of virtually all foreclosure cases in all courts.

Foreclosure mills have recreated deeds and mortgage documents out of thin air and used them to steal people's homes. The San Francisco Assessor Recorder's audit proved that 99% of foreclosures had questionable documents and 84% had clear violations of law. You have a letter from Los Angeles County Recorder Dean Logan saying he believes the illegal activities described in that audit are systemic and common throughout California, including Los Angeles County. That letter was delivered to you March 9, 2012, over a year ago. You received on your desk last month 18 cases from Home Owners for Justice of criminal acts committed by Recontrust Company of forged, altered and fraudulent documents proven to have been recorded into county records in violation of the Homeowners Bill of Rights. Where are the indictments?

Whatever your reasons are that no prosecutions have gone forward against the big banks for mortgage fraud, we are here today to say that those reasons are not good enough. Credit card debt-collection fraud did not tank our state's economy. We call on you to within six months bring identical prosecutions against the big banks for the identical practices in mortgage and foreclosure crimes as you are prosecuting for credit card crimes. We demand you prosecute the foreclosure mills and third party debt collectors who are doing much of the dirty work for the banks.

We also expect you to issue a public call to judges to regard allegations of robosigning as a serious cause of action. We have seen judges repeatedly dismiss or ignore these egregious crimes in court. As chief law enforcement officer in the state, we insist you communicate that this dismissive bias ends today.

Investigations have also shown that the $18 billion settlement did not go into principle reductions or compensation for damages, as you have claimed. It was a bait and switch—the funds have been siphoned into CA's general fund to blunt the hemorrhaging budget. We call on you to publicly address this giant misappropriation of funds.

Finally, we are here to point out the obvious. As Senator Elizabeth Warren said, when banks can break the law and take in billions and billions of profits, then turn around and settle using tiny sums of money out of those profits, they don't have much incentive to follow the law. Trials give us days and days of testimony when bank employees are grilled to find out exactly what they've been up to. That information needs to be public record. The Homeowners Bill of Rights is not enough. We ask you what Sen Warren asked regulators: how tough are you?"

Sincerely,

Homeowners of California
Occupy Fights Foreclosures

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[Press Release] Homeowners and Occupy Fights Foreclosures Ask Attorney General Harris, "How Many Banks Have You Brought To Trial?"

PRESS RELEASE 
IMMEDIATE RELEASE 

WHO:       Homeowners, Economic Justice Advocates, Occupy Fights Foreclosures

WHAT:     Homeowners to Occupy A.G. Kamala Harris' Los Angeles Office to Ask A.G. Kamala Harris How Many Big Banks Has She Brought To Trial?

WHERE:  Ronald Reagan State Building, 300 South Spring Street, Los Angeles CA  90013

WHEN:    11:15 AM Thursday May 23, 2013

HOMEOWNERS AND OCCUPY FIGHTS FORECLOSURES ASKS ATTORNEY GENERAL HARRIS HOW MANY BANKS HAVE YOU BROUGHT TO TRIAL? 

At two-year anniversary of Mortgage Fraud Strike Force, we demand AG Harris and the Strike Force live up to its name and prosecute big banks who've broken the law for mortgage crimes

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Wells Fargo: Show Me the Commitment!

QUOTE FROM A WELLS FARGO REPRESENTATIVE REGARDING THE PROTEST ACTION OF MAY 1ST:

“We understand they have a right to protest and we also hope that they understand that our customers have a right to come into our branch to do business. We are hoping that they respect the right of our customers to come in and do that. Wells Fargo is committed to keeping borrowers in their homes. We work toward that end with borrowers every day, since 2009 we’ve been able to save numerous amount of borrowers, in fact we have written 841,000 modifications. And we have provided 6.3 billion dollars to lower principle amounts, that’s with a “B”, billion dollars of principle forgiveness.”

Video: http://www.tout.com/m/qpeh43?ref=fbzcbj2l

Words adapted from the movie: My Fair Lady – “Show me” by Alan Jay Lerner and Frederick Loewe

SHOW ME! 

Words!
Words! Words! I'm so sick of words!
I get words all day through;
First from them, now from you! Is that all you blighters can do?
Don't talk of mods, reductions in price; If you do right,
Show me! Tell me no dreams
Filled with more lies. Lowered principle price,
Show me! Here we are together, in the middle of this blight!
You behind the line! Telling us lies!
Everyone who’s been in a liar loan will tell you that
This is no time for a chat!
Haven't your lips
Longed for the truth? Don't say how much,
Show me! Show me! Don't talk of all the good you have done.
Make me no undying vow. Show me NOW!

Like the song says – show us. Words are easy and we have had many years of words. Words are easy to say and statistics are easy to make up. 90% of the population knows that! (see what I mean?).

So where is that 6.3 billion dollars committed to lower principles? Someone ought to tell Eric Schneiderman, because he is planning on going after Wells Fargo and Bank of America for violations of the 25 billion dollar national mortgage settlement deal.1

Perhaps Wells Fargo’s representative was referring to the 175 million paid out for predatory lending allegations.2 Or maybe the principle reductions he was referring to have something to do with the bias lawsuit Wells Fargo settled for $425,000,000, in Memphis and surrounding Shelby Country, TN.3

In a recent article, Whistleblower: Wells Fargo fabricated mortgage documents on a mass basis, It is cited that:

“Over the last two and a half years, Wells Fargo, like most of the major mortgage servicers, claimed that it had a “rigorous system” to insure that mortgage documents were accurate and complete. The reason this mattered was that there was significant evidence to the contrary. Foreclosure defense attorneys found repeatedly that, for securitized mortgages, the servicer or foreclosure mill attorney would present documents to the court that failed to show the borrower’s note (a promissory note) had been transferred properly to the trust. This mattered not only on a borrower level, but indicated that originators of the mortgage securitizations hadn’t bothered transferring the notes properly to the trusts that were to hold them. This raised the ugly specter of what was called “securitization fail,” that investors had been sold securities that they had been told were mortgage backed when they might in practice not be.” Read more at http://www.nakedcapitalism.com/2013/03/whistleblower-wells-fargo-fabricated-mortgage-documents-on-a-mass-basis.html#6jG8bmxXS2lCm8KF.99

These fabricated documents were not fabricated so that Wells Fargo could write modifications, these documents were fabricated so that Wells Fargo could foreclosure on the homes of families.

Wells Fargo was singled out because the bank is "responsible for handling more delinquent loans than any other servicer."4

If Larry Delassus heart hadn’t stopped while sitting in a court room fighting for the home that Wells Fargo had foreclosed upon, we could have asked him about how willing Wells Fargo was to work with borrowers.

“Delassus and his attorney did not discover until May 2010 that a mis-entered number had dragged Delassus into this spiral. As court documents obtained by L.A. Weekly show, after admitting its error, Wells Fargo foreclosed on Delassus anyway and sold his condo.5

According to the Consumer Financial Protection Bureau, Wells Fargo was #2 of the most complained about lenders. Bank of America still first, (because they took over Countrywide (Who can do what no one else can) Home loans) holding place at #1.6

Ask Harolyn Rhue, a disabled woman who has lived in her home for over 9-years about how hard Wells Fargo is working to keep her in her home. She had $175,000 in equity. Wells Fargo put her through the duo tracking modification scam and brought her out the other side to foreclosure. While she is still currently in her home, and the Independent Foreclosure Review Committee has sent her a check for $2000 for wrongful foreclosure, Wells Fargo still refuses to do anything that will help her stay in her home. Where is the principle forgiveness for Ms. Rhue? Where is the “every effort to help her stay in her home?

Can we forget about the Rosseau’s? A couple who paid their mortgage with a cashier’s check that was lost by Wells Fargo Bank. Wells Fargo foreclosed, the couple offered to pay the penalties and charges (even though it was not their error). Wells Fargo foreclosed anyway. The husband committed suicide. The suicide is technically not Wells Fargo’s fault…but the foreclosure leading up to it…is.7

Then later, we have the eviction of a terminally ill woman, Niko Black, who, on the morning of October 10th, had her door kicked open by the Orange County Sheriff’s Department at the request of Wells Fargo in spite of a Federal Court Order forbidding such action.

Ms. Black had to drag herself to her wheel chair and the sheriff’s wheeled her out onto the sidewalk, not even allowing her to go back in and get her much needed medication.

Fraudulent paperwork was used to foreclose on her home. She did not even have a mortgage with Wells Fargo!

Then there is Richard Castaldo, a young man who fought for his life 13 years ago at Columbine High School. Occupy Fight Foreclosure reached out to the CEO of Wells Fargo to negotiate a way to save Richard’s home. The office of the CEO told them that they would try to work something out, the next day they sold Richard’s condo to an investor.

Wait…let’s do just one more…from May of last year – Patricia Martin, a 73 year old widow, remember her, Wells Fargo? You foreclosed on her home of 43 years because of a late charge of $104.23. Wells Fargo spent well over $50,000 booting her out of her home, when she wasn’t even late on her payment and didn’t even ask for a modification.8

Now what was it the Wells Fargo representative said again, “Wells Fargo is committed to keeping borrowers in their homes.”

So, we’re thinking, Wells Fargo has another opportunity to give life to their words, and work with Harolyn Rhue. Harolyn Rhue, a handicap woman who has been taken advantage of due to an injury to her brain several years ago. She believed she was signing for a 30-year fixed rate, but was given a teaser rate instead. Nevertheless, she did her best to make payments on time, until she sought out a modification. On the advice of Wells Fargo, she withheld payment while she awaited her modification. (Does this story sound familiar yet?)

NACA has already worked out a program that would keep Harolyn Rhue in her home, but Wells Fargo refuses to budge. So our question is…Is Wells Fargo really committed to keeping borrowers in their home?

Then……“Don't talk of all the good you have done.
Make us no undying vow.
SHOW US NOW!”

The most elementary conceptions of justice and public policy require that the wrongdoer shall bear the risk of the uncertainty which his own wrong has created”. See, Bigelow v. RKO Radio Pictures, Inc., 327 US 251 - Supreme Court (1946), See Package Closure Corp. v. Sealright Co., 141 F.2d 972, 979. That principle is an ancient one, Armory v. Delamirie, 1 Strange 505

Contact: Carlos Marroquin 323-592-4663


List of Citation:

^1 http://www.forbes.com/sites/halahtouryalai/2013/05/06/25-billion-later-bank-of-america-wells-fargo-still-face-mortgage-trouble-from-ny-ag/

^2 http://www.usnews.com/news/blogs/home-front/2012/07/13/in-financial-tragedy-wells-fargo-to-pay-175m-over-predatory-lending-allegations

^3 http://money.cnn.com/2012/05/30/news/companies/wells-fargo-memphis/index.htm

^4 http://www.scpr.org/blogs/economy/2013/03/13/12908/housing-advocates-accuse-well-fargo-damaging-commu/

^5 http://www.laweekly.com/2013-03-07/news/wells-fargo-typo-victim-dead-larry-delassus/

^6 http://www.investinganswers.com/investment-ideas/real-estate-investing/5-most-complained-about-mortgage-companies

^7 http://mandelman.ml-implode.com/2012/05/husbands-suicide-yesterday-wells-fargo-to-evict-wife-tomorrow-anyway/

^8 http://mandelman.ml-implode.com/2012/05/doer-update-patricia-martin-v-wells-fargo-court-grants-injunction-injustice-on-trial-ahead/


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ALERT: Come Amend LA Foreclosure Ordinance On Wed

ACTION ALERT: This Wednesday, amendments to LA's Foreclosure Registry Ordinance to improve enforcement and make banks pay up will be introduced to the the LA City Housing and Community Economic Development Committee. Come and speak out in favor for tougher penalties to deal with foreclosures and blight in our city.

Join us: Wed, May 15: 8:30 am, Rm 1010, City Hall, HCED committee.

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OFF Joins May 20 Action in D.C.

May20DCactionNotice_thumb.jpgOccupy Fights Foreclosures, Occupy Our Homes, Home Defenders League, and many more home defense groups will be bringing JUSTICE TO JUSTICE by joining hundreds of homeowners from around the country in Washington D.C. to demand Wall Street be held accountable and that we start seeing real relief for homeowners!

May 20th, 2013 at Freedom Plaza, Washington D.C. [map below]

Event Page: https://www.facebook.com/events/145304668982688/

 

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May Day 2013

On Wednesday, Occupy Fights Foreclosures joined May Day and protested endless fraudulent foreclosures by the top predatory lender, Wells Fargo at one of its branches at Olympic Boulevard and Figueroa Street in Los Angeles downtown. May 1st is the internationally-recognized workers' day when workers around the world stand up and unite for their rights. Here are live recordings, photos, and press coverage links.

Live Recordings

Climax of Our Action!

by PMBeers

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[Press Release] On May Day Occupy to Stand up for Working Families, Immigrants, Seniors and Disabled

PRESS RELEASE
IMMEDIATE RELEASE

OCCUPY MOVES TO SHUT DOWN WELLS FARGO BRANCH IN PROTEST OF WELLS FARGO ABUSES AGAINST WORKING FAMILIES, IMMIGRANTS, SENIORS AND DISABLED HOMEOWNERS

WHO: Occupy Fights Foreclosures, concerned community members, economic justice activists, and homeowners.
WHAT: Occupy Fights Foreclosures will be shutting down a Wells Fargo branch in the Los Angeles area in protest of Wells Fargo abuses against working families, immigrants and homeowners with disabilities.
WHEN: Wednesday, May 1st, 2013 at 3PM-4PM
WHERE: Wells Fargo Bank, 717 Olympic Blvd. Los Angeles, CA

LOS ANGELES, CA - Occupy Fights Foreclosures will be shutting down a Wells Fargo branch in response to Wells Fargo's abusive measures taken against immigrant workers and homeowners with disabilities. Not only has Wells Fargo reigned in being the bank with the most foreclosures nationwide, but it also is evicting and throwing into the streets the most vulnerable people in society.

Occupy Fights Foreclosures will be shutting down Wells Fargo bank to bring forth the struggle that immigrant workers face when seeking housing. Immigrant homeowners are taken advantage of due to language barriers and are usually the victims of predatory lending, a fraudulent practice Wells Fargo is known for.

Occupy Fights Foreclosures activists are committed to holding Wells Fargo accountable for it's criminal actions against homeowners who remained loyal to their mortgage payments, but were taken advantage of due to their inabilities.

"We have seen first hand how Wells Fargo Bank has taken advantage of immigrants, we have seen them throw people out into the streets, and we have seen those immigrant homeowners resisting eviction and being deported because they have resisted." said Carlos Marroquin, a homeowner advocate with Occupy Fights Foreclosures.

Following their bank shut down of Wells Fargo, Occupy Fights Foreclosures will be joining the Southern California Immigration Coalition to march for full Immigrants rights.

####

Contact: Carlos Marroquin, (323) 592-4663


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Harolyn's Home Occupied

Foreclosure fighters occupied Harolyn's Home in Altadena according to plan from 5pm on Sunday evening of April 14th 2013. Here are some footage from our occupation launch and more to be added here soon.

At Harolyn's home, 267 Laurel Dr. Altadena, CA 91001, occupiers held press conference to expose infamous Wells Fargo's fraud scheme.

Occupy Harolyn's at 267 Laurel Dr. Altadena, CA 91001 to defend against Wells Fargo's fraud scheme.

RADIO featuring Harolyn's case:
Fighting 2 Battles - The Time is Running Out For Harolyn

Location: 267 Laurel Dr. Altadena, CA 91001

Occupy Harolyn's Home Notice:
http://www.occupyfightsforeclosures.org/occupy_harolyn_s_home

Learn more and stay updated at Save Harolyn's Home on Facebook
https://www.facebook.com/pages/Save-Harolyns-Home/476617869058894


permlink | Related post | Save Harolyn's Home on Facebook

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Why stay home when you can save a home?
Occupy Fights Foreclosures, affiliated with OccupyLA, stands up against the nationwide foreclosure crisis. We support, educate and empower homeowners at risk to save their homes from fraudulent foreclosure.