The Herald’s’s Toluse Olorunnipa is good to point out that this was an Argent loan:
Argent, at one point the nation’s largest lender to people with low credit scores, crumbled under the weight of the subprime lending crisis and was sold to Citibank in 2007. A previous Miami Herald review of Argent mortgages found widespread evidence of mortgage fraud, with one-third of Argent loans in Miami-Dade County eventually falling into foreclosure.
And the paper ties it in to the more recent foreclosure scandal:
As Deutsche Bank motions for a summary judgment in the case, it suffers from many of the same problems that have led to stalled foreclosures across the country.
After acquiring the loan from the original lender, the bank’s representatives profess little knowledge about the details of the home loan, and its lawyers have not been able to close the case for four years.
A Miami-Dade County judge briefly threw out the case in July after a Deutsche Bank attorney failed to show up in court.
The Wall Street Journal found some anecotes, too, in an excellent story that calls BS on the banks. I was sharply critical of the paper a couple of weeks ago for not being in the game on this story, and it’s good to see it pick it up a lot in the last several days. I love this lede:
Some banks say their reviews of mortgage-paperwork procedures have failed to detect any borrowers who were foreclosed on wrongly. Some court filings, loan documents and mea culpa letters from mortgage servicers tell a different story.
And here’s one of its anecdotes:
In a Dade City, Fla., courtroom on Tuesday, Leah Aaseng tried to persuade a state-court judge to throw out Bank of America’s recent foreclosure of her five-year-old house in nearby Zephyrhills.
Ms. Aaseng told Judge Susan Gardner that the bank went through with foreclosure proceedings even though she had received a mortgage modification from the lender.
The bank even cashed her August mortgage payment two days after the foreclosure, Ms. Aaseng said. Judge Gardner agreed to the monthlong delay requested by the lawyer representing Bank of America.
“This is a big mess,” the judge said with a sigh as she signed paperwork in the case.
Add it all up and it looks ugly out there. Here’s hoping the press keeps digging up these cases and putting them front and center.
And send me an email if you see reports in your local papers.