Foreclosure-Gate: Robosigning And Non-Judicial States

12-30-2010 • Market-ticker.org

I am regularly surprised at how many people of otherwise-reasonable intelligence and understanding keep professing that all this robosigning and bogosity in various documents are "no big deal", especially in non-judicial states. In point of fact while the foreclosure may be non-judicial if there's someone in the house you still need a writ or other judicial act, even if perfunctory, to evict the current resident. Since the "robosigned" (or just plain bogus) documents are used as the predicate of that proceeding they are in fact used in a court proceeding and thus still constitute knowingly-false swearing before a court - the definition of perjury - as well. For those who live in a non-Judicial state and thus think they have no recourse, they're wrong. You do. What I'd really like to see is more attorneys like Mr. Rooney start digging into the conveyance aspect of things, because I continue to assert (as I have since this all began four years ago) that the real problems lie there. We will only clear the market, and resolve the problems with land titles and lending, when these deals are all fraud-audited and we find out who has the paper, what was and what was not delivered as required by the PSAs in these deals, and thus, who currently in legal and actual fact is owed money at this point in time. If these investigations disclose that the securitizer or originator still has the loan but was paid for it in full then the MBS buyers have every right and reason to force the unwind of the transaction. What they don't have the right to is the cash flows, including payments and recovery during foreclosure, on a note they don't actually own!