Foreclosure Fiasco headed to a courtroom near you

[marmar]

from the NY Times:




About a month after Washington Mutual Bank made a multimillion-dollar mortgage loan on a mountain home near Santa Barbara, Calif., a crucial piece of paperwork disappeared.

But bank officials were unperturbed. After conducting a “due and diligent search,” an assistant vice president simply drew up an affidavit stating that the paperwork — a promissory note committing the borrower to repay the mortgage — could not be found, according to court documents.

The handling of that lost note in 2006 was hardly unusual. Mortgage documents of all sorts were treated in an almost lackadaisical way during the dizzying mortgage lending spree from 2005 through 2007, according to court documents, analysts and interviews.

Now those missing and possibly fraudulent documents are at the center of a potentially seismic legal clash that pits big lenders against homeowners and their advocates concerned that the lenders’ rush to foreclose flouts private property rights. .......(more)

The complete piece is at: http://www.nytimes.com/2010/10/21/business/21standoff.html?_r=1&hp

[walldude]

1. I heard today that the FBI was going to start looking into

the foreclosure frauds. One can only hope.

[tridim]

2. This article is a nuclear bomb.

At least page one is. Still reading.

Watch the TBTF bank stocks tomorrow.

[dixiegrrrrl]

3. MSM on the story, at last!!!!!

like light on cockroaches.
See the banks scurry.