In a significant number of cases — 85 percent — documents recording the transfer of a defaulted property to a new trustee were not filed properly or on time, the report found. And in 45 percent of the foreclosures, properties were sold at auction to entities improperly claiming to be the beneficiary of the deeds of trust. In other words, the report said, “a ‘stranger’ to the deed of trust,” gained ownership of the property; as a result, the sale may be invalid, it said.
In 6 percent of cases, the same deed of trust to a property was assigned to two or more different entities, raising questions about which of them actually had the right to foreclose. Many of the foreclosures that were scrutinized showed gaps in the chain of title, the report said, indicating that written transfers from the original owner to the entity currently claiming to own the deed of trust have disappeared.
Almost no foreclosures were conducted properly. One cause is the issue we have been writing about for nearly two years: the failure of the parties to the original securitization to convey notes properly to the securitization trusts. That failure can’t be remedied at this late date, so the only way to create the appearance that the trust has the right to foreclose is either by filing improper documents and hoping no one notices, or document fabrication and forgeries.
One in every 624 U.S. households received a foreclosure filing in January, up 3 percent from the previous month, according to a new report from RealtyTrac. Foreclosure activity froze in many states in 2011, due to processing delays after fraud, or so-called “Robo-signing,” were uncovered in the fall of 2010. The thaw is now on.
“We expect the pattern of increasing foreclosures to continue in the coming months, especially given the finalized mortgage and foreclosure settlement reached in early February between 49 state attorneys general and five of the nation’s largest lenders,” said RealtyTrac’s CEO Brandon Moore in a written release.
The chief regulator and conservator of Fannie Mae and Freddie Mac is adamantly opposed to principal forgiveness, a key element of the foreclosure settlement. But analyses show he’s wrong.
Europe & Economy
Hedge fund manager Kyle Bass, who made $500 million betting against subprime debt in the crash, is raising a fund to buy home loan securities.
Europe Demands More Greek Budget Controls – Bloomberg
MFGlobal Reveals You Are A Bank Counter-Party - Barry Ritholtz
Austerity Policy Destroying Greek Society - Yves Smith
Consumers not fooled by gov’t. stats - NY Post
Consumers, it turns out, were a lot less optimistic in early February, according to a University of Michigan survey. And they didn’t spend nearly as much during Christmas or in January as the geniuses who follow this stuff for a living thought.
And — surprise! — the Federal Reserve yesterday showed more nervousness than expected in the minutes of its recent meeting.
What? They aren’t thrilled that so many jobs were created in January?
San Francisco Bay: a garbage can for 7 million people – Mercury News
Bay Area residents pollute San Francisco Bay every year with enough trash to fill 100,000 kitchen garbage bags, according to the first comprehensive study of the volume of litter flowing into the bay.
The Prophets of Linsanity – BusinessWeek
BAD WEEK FOR FREEDOM - James Quinn
Over the past century, tiger numbers have dropped from about 100,000 to about 4,000 tigers in the wild today.
And over the past decade, there has been a 40% decline, with conservationists warning that some populations were expected to disappear completely within 20 years unless urgent action was taken.