Due to the segment that was aired on Nightline July 4. 2012 we are experiencing high call volumes and an overwhelming number of emails from homeowners asking for our assistance.
If you are trying to contact us please be sure to let us know if you have a sale date on your home by including that in your phone message or typing it into the subject line of your email.
Please be patient. We will do our best to get in touch with everyone who has contact us.
While we all knew the problems in our housing markets were severe — just how severe had never been thoroughly quantified until my office in San Francisco released the results last week of an independent audit of nearly 400 foreclosures over the past three years.
The audit findings show that irregularities are not just frequent — they are pervasive.
Like just about everyone else involved in this issue, I knew there were widespread problems. But the independent audit commissioned by my office showed fully 84 percent of the foreclosure files contained at least one clear legal violation and more than 66 percent of the files contained multiple violations. Nearly 60 percent of documents were backdated in some fashion, which is significant in an environment in which documents are filed under penalty of perjury. As far as we know, this is the first comprehensive audit of foreclosure files.
Why does this matter so much? First of all, the widespread fraud in mortgage lending and documentation that led to the epidemic in foreclosures was abetted by lax legal and regulatory standards that failed to spot, stop and prevent abuse.
Here in California these lax standards are particularly damaging because lenders (and the subsequent mortgage holders who frequently acquire loans) do not need to seek a court order to force a foreclosure. With little direct court oversight, we must rely on the administrative procedures and state regulations to protect owners from fraud.
This matters because families facing foreclosures are entitled to know exactly who holds their loan and to see for certain that the foreclosure is justified. In one case, our audit showed a foreclosure initiated by a party that had no title to the property — and in a number of other cases, we found two competing claims to the title.
This new data matters to all of us because the wave of foreclosures that broke over California affected every single Californian, not just those losing their homes. The massive loss of housing value meant we lost billions in tax revenues needed to fund our schools, protect our communities and invest in our future. And the administrative and recovery costs alone are staggering — with some estimates showing that each foreclosure costs local cities up to $20,000 for each home.
And finally it matters because transparency matters. The state constitution created assessor-recorder offices like mine in every county because economic security and basic justice were advanced by creating clear and transparent property records.
Wells Fargo is blatantly discriminating against our Hispanic client. They clearly qualify for a HAMP loan modification, but Wells Fargo is refusing to modify the loan and postpone the auction that is scheduled for Thursday, February 23, 2012. We are very disappointed with the treatment our clients are experiencing. This loan is predatory and discriminatory. We will update with more information and the complete story tomorrow.
Update: Wells Fargo postponed this auction. The new date is March 26, 2012. Our hope is that Wells Fargo will follow the guidelines and modify this mortgage.
The bill would require those county judges who are reviewing foreclosure cases to first ascertain that the bank attempting to gain title to the property has the right to do so. Only then can the home be ordered to be sold at public auction.
These are appropriate safeguards that should not be overly burdensome to lenders.
A foreclosure can be a traumatic event for homeowners who are struggling to find work and put food on the table.
It’s not too much to ask lenders to dot every “i” and cross every “t” before turning them out.