Home > Foreclosure News > Bank Induced Defaults….and What the Government Knew

Bank Induced Defaults….and What the Government Knew

For so long, every time a homeowner was told “You need a modification.  However, we can’t help you get one because you are current on your payments.  You need to get behind payments to show us a hardship so we can modify your loan.” and the homeowner thought they were being considered for HAMP it was a lie.  HAMP didn’t require homeowners to miss payments.

From the HAMP page “Administrative Website for Servicers”, “Administered by Fannie Mae” there is a document called the “HAMP Resolution Matrix” apparently for servicers to follow.

In paragraph 26 it states:  “Homeowner Advised to Miss Payment (1) Confirm with homeowner (or homeowner advocate) that the property is the homeowner’s principal residence. (a) If no, explain that a homeowner can never be required to miss a payment however, under HAMP Tier 2 there is no risk of imminent default review when the mortgage loan is secured by a rental property. Explain the HAMP Tier 2 eligibility criteria and close case. (b) If yes, advise homeowner (or homeowner advocate) that they are NOT required to miss a payment. (Advise homeowner that they will be reviewed against imminent default criteria for principal residence.)(3) Obtain evidence that homeowner was advised to miss payment(s) including name and contact phone number of servicer’s representative.(4) Confirm with servicer. (a) If servicer acknowledges error, require servicer to communicate correct status to homeowner (or homeowner advocate). (b) If servicer denies allegation, communicate misunderstanding to homeowner (or homeowner advocate), discuss next required actions before closing case.”


How dare they?  “If servicer denies allegation communicate misunderstanding to homeowner…”?  Are you kidding?  Forcing a homeowner into default by misrepresenting the HAMP requirements and then dragging them through a fraudulent modification scheme to collect government funds and foreclose instead of modifying (as seen in the BOA affidavits) to profit.  And relying on the servicer to admit or deny it?  That is a “misunderstanding” to communicate to a homeowner?

NO – it is estoppel.  PERIOD.  And court decisions will show you that the court has the power to put homeowners in situations like this right back to where they were when the bank uttered those “stop payment” words.  If they are out arrearages and fees, it is their own doing.  Recently I encountered a case, not on “stop payment” grounds but on the grounds that the homeowner made the trial payments and the bank sent them back.  And the Judge didn’t like that so much, so the bank will answer for their own causing of arrearages and fees, along with sanctions and attorney’s fees because had it not been for their behavior the client would not have had to hire me.

Bank of America contracted out a lot of their HAMP work to third party vendors such as Urban Lending Solutions.  The problem?  They instructed the third party vendors on what to do to violate what they took government money to do.  Those vendors, along with Bank of America induced defaults, and then thwarted the modification process in a fraudulent scheme.   The employee affidavits show just as much.  Other banks did just the same, and the defaults were their own doing.

Let’s get real clear.  What this document labels a “misunderstanding” is no misunderstanding at all.  In law, we call it fraud.

  1. July 4, 2013 at 1:40 am

    The banks wrote more loans than they can legally hold… and it is getting tighter with the new regulations for the banks to have more funds on deposit… utterly impossible under their current financial circumstances and the debt that the [banks] have created. Think of it as a big rain cloud and Noah’s Arch can only hold 2 of each. Banks that entered into judicially forced modification programs and settlements are reneging left and right – and won’t accept payments. Probably because they can’t and never could.

    We need another form of agency housing to carry the loans. I said this 3 years ago. It is obvious that the banks can’t handle the fallout and the fraud… and the states lost their pension funds – so the ONLY frickin’ way to recover the pension funds would be to set up housing agencies and take over the loans (eminent domain for the fraud and abuse), reconstruct them with the homeowners like we do in Chapter 13s. The states construct reasonable monthly payments and guidelines (these people would have to pay rent or go on welfare so we might as well make it as equitable as possible) and accept the payments which will replenish their coffers. 20,000 loans at $900 a month (remember these people have been damaged) is $216 million a year. I think the state(s) could use that revenue.

    I would strip out the rigged LIBOR interest, apply all the payments that the homeowners have made during the life of the loan including the downpayment – against the principal, construct a formula to compensate for frauds (fabricated and robo signed documents, UETA violations, modification abuses, emotional distress etc… I’d like to write that algorithm myself) and come up with a new principal for a new traditional mortgage and note – or “state securitized” loan with adequate UETA clauses.

    The human cycle moves or refinances every 7 years – these loans will take a natural cycle and eventually, if need be, after the economy rebounds, the state agency can be repealed. But for now – either a public bank or a state agency is necessary in order to handle the mess – or just turn the state over to China and be done with it!

    Most of these trusts are nearly all paid off. The REMICs are empty and this is the banks’ problem – not the homeowners.

  2. July 4, 2013 at 1:47 am

    Agreed! And I 100% agree on the REMIC issue – their problem not the homeowners. Yet in courtroom after courtroom I’m watching them punish the homeowner for a system set up to fail. BOA wouldn’t accept payments because as the affidavits show they had no intention of modifying anything – but like you said – not that they are in a position to modify or accept payments. People who assume BOA bought all CW loans are misleading themselves.

  3. July 4, 2013 at 12:01 pm

    What is the evidence that the trusts are paid off and the REMICS are empty??

    • July 4, 2013 at 3:13 pm

      Right now I can say that the bond issue is being looked into heavily, and also by the media. A few weeks ago we learned that BOA was still collecting monthly fees on the property in question in Pino (the case that went to the Florida Supreme Court and was heavily reported on) – and that loan was gone a while ago. Inside the bonds the interest rates have been misrepresented, as are the loans themselves – it is a mess, and people are starting to catch on. Investors and shareholders are demanding answers – but we will see where that leads. The truth in fact is there may still be loans there, but they are already paid off as in Pino’s case. Why the investors are still having to pay fees on them is just more evidence of the bad behavior the banks are engaging in.

  4. Rob Harrington
    July 4, 2013 at 1:42 pm

    3rd annual Independence Day Reminder of “Lawful” Property Confiscation in America

    – Independence Day?

    Posted by Rob Harrington July 4, 2010 at 7:00am

    July 4th, 2010 —

    Today, I will remember my father who passed away so recently. He was a retired officer of the United States Air Force. A fervent defender of the Constitution and of fact and law, and an avid student of History, this highly decorated, honest man devoted his entire life to preserving our noble freedoms.

    Last Memorial day in Washington D.C., as my mother and I visited Arlington National Cemetary where he is to be buried with full military honors, 100,000′s of Vietnam veterans were also visting D.C. for “Rolling Thunder” to also pay their respects to fallen brothers and sisters of the Vietnam War. This was the same War my father earned a Bronze Star among many other decorations for valor and dedication while risking his own personal safety and life.

    It was that Sunday I picked out a book in his vast historical library to begin a read for the long, sad trip home back to Florida. Florida is where I have been fighting fraud and for property rights for several long, frustrating years. The book I chose was written about the Vietnam War entitled “The War of the Innocents,” by Charles Bracelen Flood. Published in 1970, Mr Flood foresaw the main reason WHY the South Vietnamese and the U.S. would EVENTUALLY LOSE the war against the Communist Viet Cong. The ex-Army, Harvard graduate keenly observed that the poor Vietnamese peasant farmers were CONSTANTLY having their PROPERTIES SEIZED ILLEGALLY BY A CORRUPT GOVERNMENT AND THEIR CORRUPT, WEALTHY BUSINESS PARTNERS.

    The constant harrassment, removal, and dislocation of the poor, peasant farmers and their families contributed greatly to the lack of support of their corrupt Saigon Government, and indeed the lack of responsibility of its own soldiers and citizens to fight effectively against the Communists.

    In 2010, even an 8 year old being removed from their home due to a questionable foreclosure could draw the same conclusion regarding a corrupt system that aids and abets illegal and fraudulent harrassment, removal and dislocation of too many families who’s unalienable rights are being denied. Today, I will remember the millions of Americans who were defrauded by the Banks and are now being removed from their homes by the very governments who were supposed to protect them. Their protections are DENIED almost daily by the very consumer laws that are NOT being enforced nor upheld.


    Tomorrow, I begin researching “Fraud on the Courts” on forged complaints and so-called “supporting” documents made by so-called “officers of the court” in yet another legal battle on a case already dismissed once before.

    Today, on the morning of the 4th of July, I will miss my father terribly. Today, I weep in utter despair as I write this message to whoever cares to read it. I sincerely question that his whole life was dedicated to being deceived by a collosal lie?

    On July 4th, 2010, this is NOT a happy day for me. Is this really Independence Day in foreclosureland?

    -Rob Harrington

    Co-Founder / National WAMU Homeowners Support Group


  5. July 4, 2013 at 2:05 pm

    Rob, that was so touching. And I’m speechless. I have to believe that it is Independence Day. Many battles have been fought for us to be where we are. And this is a battle that is not fought by the military or in another country but in courtrooms case by case, and most importantly by raising awareness of what is going on, and telling the homeowners stories – we have to speak for them and make sure they are not forgotten. A $300 settlement check cannot silence what happened to them. I have to believe that this nation has survived such corruption before and will again, only because good people were willing to stand up and do something – and that includes you. Prayers to you friend.

  6. pat farrell
    July 4, 2013 at 2:36 pm


    1. SUMMARILY, Plaintiff PATRICK FARRELL a Democrat, states defendant [SOF] STATE OF FLORIDA REPUBLICANS falsely arrested and maliciously prosecuted him [case 94-2430CF] for 3 felonies, to “make money” by a fraudulent PROBABLE CAUSE AFFIDAVIT, made by the Lee Co. Sheriff, who procured an Arrest Warrant, which caused the 20th Circuit STATE ATTORNEY to fabricate a criminal charge, stealing $20,000 from Plaintiff, under color of law.
    2. S.O.F. took bribes and statements from ISKCON child molesters, who had IRS 501C3 status.
    3. SECONDLY, Plaintiff filed case 07-CA-14942, a case of Mortgage Fraud into the [R] 20th Circuit, against [R] parties of the MBS; IMPAC SECURED ASSETS-2005-2, who also had bogus IRS tax exempt status, only to have the Republican judges refuse to grant Plaintiff relief of any kind, despite Federal Court Orders to do so, and allow WELLS FARGO to file case 07-CA-16767, based upon a false AFFIDAVIT, and sustain said case, based entirely on false pretenses.
    4. All [R] lawyers and judges are merely Corporate Franchise Court, Revenue Collection Agents, working for the REPUBLICAN C.E.O.’s JOHN STUMPF-WFB; THOMAS MARANO-GMACM BRIAN MOYNIHAN- B.O.A., who are agencies of the private FEDERAL RESERVE BANK.
    5. In both and all cases, [R] lawyers and judges violate the UCC, Constitution and statutes to facilitate the taking of equity, property, credit and money by bias, prejudice and phony AFFIDAVITS.
    7. Plaintiff confers, consents, accords only to Common Law jurisdiction and DEMANDS A JURY
    8. Jurisdiction of this court is invoked under Article III, Section 2 of the United States Constitution, 28 U.S.C.1331 and Amendment VII of the Constitution of the USA.
    9. This court has supplemental jurisdiction over all other claims, including state law Venue is proper in this district as the defendants illegal acts and omissions occurred here.
    11. PATRICK FARRELL in propria persona; of Sovereign capability, Secured Party Creditor under Security Agreement #SA-080619535666-PLF, with a Fidelity Bond of $100,000,000,000; and Citizen de jure, without prejudice,2904 NW14th Terrace; Cape Coral,Fl.33993.
    12. Plaintiff is a Free Born Sovereign, under the Jurisdiction of GOD & a Constitutional entity, he is NOT a U.S. Citizen, or “franchisee” or employee or statutory citizen or any other corp. designation that enjoins Admiralty/Maritime/Corporate Franchise Court jurisdiction.
    13. Plaintiff is a “consumer” and “natural person” for the purpose of this complaint within the meaning of The Federal Truth in Lending Act 15 U.S.C. §1601 et seq., Regulation Z, § 226.2(11) and 15 U.S.C. § 1692, Fair Debt and Collection Practices Act.
    14. Plaintiff is the SECURED PARTY CREDITOR, holder-in-due-course of the title to the vessel in Admiralty, and the sole beneficiary to the $1,000,000 asset created from his Birth Certificate.
    15. DEFENDANTS-STATE OF FLORIDA REPUBLICANS, For actions by their employees/agents, LEE CO. SHERIFF, 20th circuit STATE ATTORNEY, and CIRCUIT JUDGES of the 20th Circuit; these persons are sued in their individual capacity. Fraud is not an Official function.
    16. GOVERNOR RICK SCOTT- The Capitol-400 S. Monroe St.-Tallahassee, FL 32399-0001

  7. pat farrell
    July 4, 2013 at 2:37 pm


    Plaintiff, possessor, Droit-Droit,
    vs. G.M.A.C. et al, Date; Nov.3,2011

    1. The Vatican is the headquarters of the Holy Roman Empire. The sitting Pope is the ‘Pontifex Maximus’ (captain of the make believe ship) – a position ‘assumed’ after the last Caesar of the Roman Empire. (around 500 to 600 AD).
    2. The Rothschilds are the bankers of the Vatican. The primary financial agent and secular control center for the Vatican is the City of London, wherein the Rothschilds make their primary bastion of banking power. The affairs of the Holy Roman Empire is conducted through the Temple (old Knights Templar temple confiscated after the Knights Templar were destroyed by the Inquisition) located in the City of London, which is still a Roman city with its own crown, laws and customs (See Magna Carta 1215 -Section 13).
    3. It is from this Temple that all lawyers are accredited (BAR – British Accreditation of Regency) with the title ‘esquire’ and pledged to uphold the Holy Roman Empire’s One World scheme.
    These lawyers control political parties, all corporations and comprise practically all judges.
    4. Thus, the One World Government is controlled by the Vatican’s banks and lawyers.
    5. The American BAR Association is a branch of a national organization titled “The National Lawyers Guild Communist Party” and can be found recorded in the United States Code at: 28 U. S. C. 3002, section 15a.
    6. The Monarchy of Great Britain have been pawns of the Vatican since the Treaty of Verona in 1213, and the Crown of the City of London was made superior to the Crown of Great Britain when King John signed the Magna Carta, thus violating the terms of the Treaty of Verona.
    7. The United States abandoned the Constitution in favor of British International Merchant Law.
    8. The USA, a corporation of the English Crown, is bankrupt, has been since at least 1788.
    9. The Articles of Confederation states in Article 12: “All bills of credit emitted, monies borrowed, and debts contracted by, or under the authority of Congress, before the assembling of the United States, in pursuance of the present confederation, shall be deemed as considered a charge against the United States, for payment and satisfaction whereof the said United States, and the public faith are hereby solemnly pledged.” The “Founding Fathers,” as constitutors, acknowledged and reorganized the debt in the US Constitution 1787, Article VI, hence “constitution.”
    10. Bankruptcy occurred on January 1, 1788 based on 21 loans that the United States of America received from the King of England dating from February 28, 1778 through July 5, 1782, the repayment of which had been ratified by Congress on January 22, 1783. The United States Bank, created in 1791, was a private bank, with 18,000 of 25,000 shares owned by England.
    11. U.S. Law is Private Merchant Law, Public Law 88-244, leaving the people as Surety and Debtor on the bankruptcy, enjoined in 1933. PLAINTIFF REVOKED THIS PREMISE JAN. 2008.
    12. No de jure, constitutional Congress has existed since March 27, 1861 when seven (7) Southern States walked out of Congress leaving Congress without a quorum for adjourning and therefore ending sine die. That which is called “Congress” today assembles and acts under the authority of the President acting in capacity of being Commander-In-Chief of the Armed Forces, under emergency war-powers rule, i.e. “law of necessity,” i.e. no law (see 12 Stat 319, which has never been repealed and exists in Title 50 USC §§ 212, 213, 215, Appendix 16, 26 CFR Chapter 1 § 303.1-6(a), and 31 CFR Chapter 5 § 500.701 Penalties).
    13. Since the above-referenced date, March 27, 1861, Americans have been under Fascist rule via presidential executive order under the aforementioned Emergency War Powers, 12 USC 95 a, b. Every “citizen of the United States” is now “legally” established as an “enemy” via the Amendatory Act of March 9, 1933, 48 Stat. 1, amending Trading With Enemy Act of October 6, 1917, H.R. 4960, Public Law No. 91.
    14. December 6th, 1865, the 14th Amendment was proclaimed as ratified, even though it never was. The 14th Amendment, which is private Roman Catholic Ecclesiastical Trust Law, constitutes a constructive, cestui que trust, a PTC-public charitable trust, that was expressly designed to bring every corporate franchise artificial person called a “citizen of the United States” into an inseparable merging with the government until the two are united (with the power inhering in the government, not the people). Redemption reverses this mess.

  8. pat farrell
    July 4, 2013 at 2:38 pm

    CASE NO. 2:12-CV-00026-JES

    vs. DEC. 17,2012
    1. Plaintiff is suing for Whistleblower Retaliation, Trespass upon SECURITY AGREEMENT, COPYRIGHT INFRINGMENT; Fraud; Several Constitutional violations, and refusing to reward Plaintiff for his QUI TAM complaints exposing Mortgage and Securities Frauds.
    2. JULY 2001-Plaintiff filed QUI TAM against IRS and their tax exempt client ISKCON.
    3. NOV 2007-Plaintiff filed a Fraud lawsuit against IRS tax exempt client IMPAC-2005-2, [an MBS].
    4. JAN 2008- Plaintiff filed Sovereignty Documentation into the Courts and public records.
    5. JAN 2009- Plaintiff filed QUI TAM 2:09-CV-FTM-16-29SPC named the U.S. Congress, the US Treasury, and TARP recipients as defendants, and the IRS fabricated an illegal $20,000 penalty.
    6. The $20,000 penalty is retaliation by the IRS, for naming IRS tax exempt entities/defendants; ISKCON and IMPAC SECURED ASSETS-2005-2 parties, in violation of RRA-Sec.1203[b][6], and for Plaintiff claiming his Sovereignty and Secured Party Creditor tax exempt status.
    7. Defendant IRS then took $527 from Plaintiff’s 5th 3rd bank account on false “penalty” pretenses.
    8. The UNITED STATES and FEDERAL RESERVE have agreed with Plaintiff’s QUI TAM .
    9. Plaintiff seeks redress to be rewarded financially, and nullify the IRS bogus penalties.
    10. PARTIES
    11. PLAINTIFF-PATRICK LORNE FARRELL©, a registered SOVEREIGN AMERICAN and SECURED PARTY CREDITOR by Security Agreement #SA-080619535666-PLF, with a Fidelity Bond of $100,000,000. Plaintiff is NOT a U.S. Citizen, a taxpayer, a franchisee, a federal employee, a wage earner, a debtor, a surety, or accommodation party of the debts procured by the UNITED STATES and owes nothing to the IRS, or the U.S. Govt. in any way shape or form.
    13. Defendants are “persons” who under Color of Law, Deprived Plaintiff of Constitutional Rights.
    14. TIM GEITHNER- Treasury Sec. 1500 Pennsylvania Avenue, NW Washington, D.C. 20220, has received numerous documents from Plaintiff over the years and has chosen to punish Plaintiff instead of rewarding him, acting on behalf of the Department of the Treasury.
    15. DOUG SHULMAN-Comm of IRS-1111 Constitution Ave., NW-Washington, D.C. 20224, has received numerous documents, and IRS form 211, from Plaintiff over the years and has chosen to punish Plaintiff instead of rewarding him, acting on behalf of the Internal Revenue Service.
    16. STEVEN MILLER is the new IRS Comm. and assumes responsibility for the I.R.S. actions.
    17. DeAnn Bender, ACS SUPPORT STOP 5050-PO BOX 219236-KANSAS CITY, MO. 64121-9236, has signed a document illegally charging Plaintiff $20,000 in fines for alleged “frivolous” files, acting on behalf of Department of the Treasury-Internal Revenue Service.
    18. Dennis McCarthy-IRS-15 New Sudbury St.-PO BOX 91123,M/S 20800-Boston, MA 02203, has illegally filed Proof of Claim in a bankruptcy case, acting on behalf of Department of the Treasury-Internal Revenue Service. The DOT and the IRS are PRIVATE CORPORATIONS.
    19. Nowhere on any documents is the UNITED STATES, or the United States of America named.
    20. Plaintiff is NOT suing the UNITED STATES or the United States of America.

  9. pat farrell
    July 4, 2013 at 2:44 pm

    ALL foreclosures are a fraud.
    ALL court cases are a fraud.
    ALL foreclosing banks their lawyers and the firms are liars and should be sued.
    ALL judges ‘processing” foreclosure cases should also be sued for money laundering and racketeering.
    ALL lawyers, judges, and govt. are Art. IV, corporate franchise court, revenue collection agents, seizing equity, to pay off the illegal interest to the Federal Reserve.
    ALL “citizens” borrowers, homeowners are slaves who must pay off debts, whether by fraud or not. That is how ALL these assholes make money.
    Now if a few of the cases have validity, who gives a fuck?
    Most of them are, and that is good enough.
    Am I starting to sound like the banks?
    Sue everyone for Fraud, because that was all this as, a RICO PONZI Fraud to steal all your equity, down payments, etc.

  10. Chris
    July 4, 2013 at 8:27 pm

    Pat, you’re a delusional nut job. Simply put. nothing else needed to be said

  11. July 6, 2013 at 9:58 am

    Chris read history book The Creature from Jekyll Island. You will find in history section. Pat Farrell is right all supported by varied Congressional acts and approval of varied Federal Statutes. I ran warehouse lines for my company and previous employer. There are state laws these mortgage companies elected to ignore prior to securitizing the partial 1 of three parts of mortgage loan package. Thus, by selling only 1 of three parts of Mortgage Loan Package to Wall Street and electing to not comply with State Laws concerning selling the entire tangible mortgage loan package – negotiating, selling and transferring, the bank people separated the future income streams which was converted to a transferable record and sent to Wall Street or Freddie and Fannie from the paper Deed of Trust which nullified the Deed of Trust. Also, stripping the note of its value – the future income stream prior to complying with the State Laws – devalued the paper NOTE per UCC 3203 (d) – no longer negotiable. Yet, these bank people and 3rd party debt collectors choose to play on ignorance of many – knowing paper note are involved with securities fraud on securities market and wave in court claiming all is good and no felonies committed. Truth is note is now counterfeit security and these people should go to jail. The judges know –but coddle felons. Laws were set for a reason and no one should be allowed to get away with crimes and ruin further a grand republic with their insane minds and greed. I know truth hurts. But it is up to us to stand up to felons. A very hard job and sometimes dangerous. Our future generation deserves to be taken out of dark–these people should have never been given our monetary system to manage as Greed is very common character of many bankers at executive level–how much can we squeeze out of anyone and everyone. Great writing Rob! Touches the soul and encouragement to change our system for the good of majority. It is very sad to see communities demolished and the harmed clueless of truth.

  12. July 6, 2013 at 10:04 am

    Meant to say …..fannie and separated from paper deed of trust…per Carpenter vs. Longhan …..Deed must always stay with complete note. The note does not follow the paper deed of trust after the securities fraud on securities market occurs – you cannot put humpty dumpty back together again. You have to give them a B+ to try to create fraudulent foreclosure documents and then bully and strip homeowners of their basic rights and encouraged misconduct by some courts.

  13. questioneverything40
    August 19, 2013 at 4:02 am

    Reblogged this on questioneverything40.

  14. September 7, 2013 at 11:50 am

    I seldom write comments, but i did some searching and wound upp here Bank Induced Defaults.and What the Government
    Kneww | Danielle Kelley, Attorneys at Law PLLC, http://www.dkelleylaw.com.
    And I actually do have 2 qiestions for you if it’s allright.

    Could it be just me or does it give the impression like some of these
    remarks appear like coming from brain dead visitors?
    😛 And, if you are posting at other places, I would like to keep up with
    anything new you have to post. Would you list of all of your public sites
    like your Facebook page, twitter feed, or linkedin profile?

  15. February 10, 2014 at 4:40 am

    Aw, this was an extremely good post. Taking the time and actual effort to create
    a good article… but what can I say…
    I hesitate a lot and never manage to get nearly anything done.

  1. July 3, 2013 at 8:25 pm
  2. July 4, 2013 at 3:42 am
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