Evicted Family Breaks Lock, Reclaims Foreclosed House While New Owners Wait (Bizarre Video)
Foreclosure fraud could be the culprit. Unclear at this point. Interesting that the police chose to let them stay.
The new owners were expected to take possession of the home in a few days, but the Earls and their attorney hired a locksmith to open the doors so they could reclaim the house.
"This is a really exciting day, a day we've been waiting for," said Danielle Earl. "My kids have been begging to go home and we're finally home.
This comes at a time when some banks are halting foreclosures across the country due to flawed paperwork. The family and their attorney said the bank used fraudulent paperwork to force them out.
The Earls said they had been working with the bank to catch up on payments, but discovered a $25,000 difference between the amount they thought they owed and what the bank claimed they owed so they stopped making payments.
"This is only the beginning of this," said the Earl's attorney, Michael Pines. "I chose this family because we needed to get back in before the investor and the real estate broker defrauded a new family by having them move in, which would have created a bigger mess. (The Earls) have done absolutely nothing wrong."
Police arrived at the home Saturday but did not take action to make the family leave.
Reader Comments (14)
http://www.truthdig.com/report/item/how_democracy_dies_lessons_from_a_master_20101011
http://www.washingtoncitypaper.com/blogs/daskrapital/2010/10/11/5-things-david-axelrod-must-have-missed-about-the-foreclosure-thing/
http://www.ft.com/cms/s/0/8c845ae4-d567-11df-8e86-00144feabdc0.html
http://www.ft.com/cms/s/0/fd62a344-d56f-11df-8e86-00144feabdc0.html
Any idea how that would even work? There would only be one set of mortgage payments coming in, no matter how many times you sold the mortgage. If you did that on a scale large enough to be worth the effort and risk, it seems that you would also have to do it on a scale large enough to be readily noticeable. I can imagine this happening accidentally -- which would lead to invalid foreclosures, but to do it on purpose would expose your plan almost immediately -- I would think.
Still, even a few accidents here and there is enough to cause major havoc.
The Earls paid $500,000 for the house in 2001 and then refinanced to pull out cash. They fell behind on their mortgage and at the time of their eviction they owed about $880,000 on a no-interest mortgage.
Investors at Conejo Capital bought the house for $697,000 at a lender’s trustee sale and put $40,000 of work into a remodel, replacing carpeting and appliances, as well as upgrading the kitchen. They flipped it to new buyers for $800,000. Those buyers were supposed to move in this week; those plans are on hold.
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OK, so they're not the poster children for foreclosure "victims," but it is nice to see the banks on the receiving in of this kind of crap.
I wonder what they did with the hundreds of thousands in refi cash.
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i've had the same thought...first time i've been excited about something like this in a awhile...man i hate these banks...i hope the sharks tear them to bits...i think the mortgage bond liability that faber and salmon talked about could be huge...