Just How Many Fraudulent Foreclosures Are There?
The press services are blowing up today with reports of the Chase Foreclosure case that was dismissed with a finding of fraudulent documents. The case is great for consumers is great, but the larger question is just why there are not more reported cases out there? The reason of course is that courts are reluctant to call the kind of widespread document fabrication what it really is…..it’s fraud.
Here’s the Story:
JPMorgan Chase (JPM) created and recorded false documentation that showed the bank owned the mortgage of two California residents in order to foreclose on their home, the California Court of Appeals stated in a ruling Monday.
In 1998, Jan and Rosalind Kalicki obtained a mortgage loan from Headlands Mortgage Company for a home in San Marcos, California. Headlands originated the loan and Washington Mutual became the servicer of the loan. When WaMu was placed in receivership in 2008, Chase purchased “certain interests” of WaMu in the Kalicki’s loan, according to court documents.
The Kalickis sued WaMu in 2009, alleging that the bank wrongfully foreclosed on their property in 2008. In 2010, Chase was granted a motion to intervene because it had purchased WaMu’s assets and held the interests in the loan.