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25 October 2011 38,772 views No Comment


The following viewpoints are made by the author.  Any representation made is made by the author and should not be considered as an endorsement or an admission by anybody else involved.

Local couple’s, James and Judy DeHarts’, home was sold at Sheriff Sale while they were current with their mortgage payments and while Wachovia/Homeq knew the home wasn’t foreclosed upon.  Bank’s attorneys, Michael Milstead at Milstead & Associates, claims bank made him do it and that he is blameless.  Plaintiffs’ attorney says that this was no mistake; it was done to cover up the past.

James and Judy DeHart are, in many ways, a typical middle class family in America.  Judy is a nurse who works outside the home taking care of those who can’t take care of themselves.  Judy also cares for their daughter who has both physical and mental handicaps.  James is currently disabled from a work-related injury and he still suffers from back spasms and pain.  Unfortunately for James and Judy, they have been the victims of the criminal activities of Wachovia and Homeq.  Sadly, the attorneys at Milstead have intentionally aided the banks.  Let’s take it from the beginning.

Years ago, the DeHarts obtained a mortgage from The Money Store.  You remember The Money Store; they became TMS, then Homeq, and then Wachovia.  Now they’re Wells Fargo and in some cases Barclays.  In all cases it involves the secondary mortgage market and the US Government.  Unfortunately, when the DeHarts bought a home and received a mortgage they became part of the greatest theft of wealth in the history of mankind.  How can that be you ask?   Read this article and see if you have the guts to accept the TRUTH.

TRUTH 1.  In order to get a mortgage you first must have a credit score that meets minimum guidelines that are set by the secondary mortgage market.  You remember them, Fannie Mae, Freddie Mac, etc., the quasi-governmental agencies that hire the dumbest, pay the most, and cause the greatest losses.  Oh, lest I forget, pay the biggest “bribes” to politicians and bonuses to executives that manipulate earnings data.  Hey, anybody gone to jail yet?  Although they deny it, banks won’t even look at your financial information unless your credit score is sufficiently high.  It makes no difference whether you want to put 80% down on a home and take a 20% loan because unless your credit score is high enough the banks won’t be able to sell your mortgage on the secondary market. In the good old days banks would give “no-doc” loans if you put down 25% or more but now, due to government regulations, they claim those loans aren’t permitted.  What a shameless lie, no-doc loans were perhaps the safest loans for a bank to make.  After all, the more equity a person has in his home the more likely he’ll want to honor his mortgage commitments.  It’s just like the government, kill what works and leave the ineffective and obsolete.   

TRUTH 2.  Credit scores, FICO scores, are determined by Fair Isaac and then leased or sold to creditors and to the credit reporting agencies, Equifax, Experian, and TransUnion.  The basis for the credit score seems to be a mystery that eludes even the credit reporting agencies because none of them know exactly how a score is determined.  It seems odd that something with so much affect on the world’s economy can be so vague.  Anyway, we all have experience with the “credit score”, it’s the thing that goes down really fast but takes forever to go back up.  The truth, credit scoring is negatively biased, it is designed to go down quickly and to be slow to react positively; specifically, so lending institutions can justify higher lending rates to consumers and create even more of an unequal bargaining position and higher profit margin.  Some of its workings may be counterintuitive, for example, when you pay your mortgage off early your score will go down.  When you pay your car off early your score will go down.  When you apply for a loan with a lower interest rate your score will go down.  When you apply for credit cards but don’t get any your score will go down.  When you pay-off your college loans early your score will go down.  Finally, credit scores don’t take into consideration whether or not you have a job, how much wealth or equity you have, how long you lived in your area, your education, the number of loans you paid, as well as a host of relevant factors.  Fair Isaac will say their system is “fair” but in truth it has very little to do with probability of default, it’s just a way for Fair Isaac to make money. The score is not designed for lending money but rather it is by far one of the greatest cons of our century and is responsible for many of the loan defaults, yet it is still being used today. 

TRUTH 3.  Credit reporting agencies were designed, by the credit market, to institutionalize the new slavery of the world.  We are all victims of this and we have been trained to accept the “company store” as our only method to achieving our capitalist dreams.  Let’s be honest, Americans have been shopping and buying unneeded luxury items for years just like a drunken sailor buys booze.  Our savings rate is sickening and our waste even more horrible. Getting back to the credit agencies, the credit reports are the lifeblood of lending institutions, along with credit scores, because Banks and Credit Card Companies can use this information to charge significantly higher interest rates then would normally be justified.  Also, the politicians that take bribes from the lending institutions can justify the policies they legislate, on behalf of the credit market, by repeating the meaningless data derived from credit scores and reports.  Yes Alice, just like the cigarette companies and their political crones did, we all know how that turned out.  Did you know doctors used to prescribe cigarettes to women to fight depression after the birth of a child?

TRUTH 4.  Mortgage-backed Securities are by their very nature secure and only by the least competent among us being employed by the government OR only by intentional acts that aided the greatest theft of wealth known to man could the past events have transpired. What happened?  Let’s take a look at the greatest theft of wealth known to man.  We can’t actually see it all because much of it is still going on today.  Here’s how it begins:

  1. The secondary mortgage market decided that it isn’t enough for Wall Street and the Banks to just make money selling and buying mortgages so they break apart those mortgages, they hybridize them.  They have at least three parts; the principle, the interest, and the servicing rights.  Most of us are familiar with the first two, principle and interest, and scratch our heads concerning the third, servicing rights.  Don’t feel bad, your government and all of its employees don’t know anything about it either. Government employees collect money from you each payday to allow Mortgage Servicing Agencies and their attorneys to screw all of you, just like they’re screwing the DeHarts.
  2. The government, with its bailout, lied to all of us by saying the mortgage market was collapsing.  Nothing could have been further from the truth.  It wasn’t the mortgage market; it was their personal mortgage derivative investments that were collapsing.  You see, when you build a pile of crap next to an ocean it will eventually be swept away by the tides.  What does that mean?  Most mortgages in this country are solvent, a minority went into foreclosure, some of the foreclosures were valid and some were not.  Foreclosures can happen one of several ways, they are:
    1. You stop paying your mortgage and the bank forecloses on your home due to your default and the appropriate contractual provisions contained within your mortgage documents and loan note.
    2. You’re paying your mortgage but violate some other provision of the loan contract.  For example, you sell your home to someone else and take their money but you don’t pay the money to your loan but rather you transfer the deed to the new owners, who apparently are insiders or just stupid, and then you use the payment for the home for your own purposes and pay or don’t pay on your original loan.
    3. Mortgage Service Companies have discovered that it is much more profitable to screw with a homeowner and extort money from them as opposed to simply taking a small fraction of each month’s payments for their services.  Here’s one of the ways it works, the Mortgage Servicing Company, let’s go out on a limb and call them WACHOVIA, establishes a business to service loans.  Wachovia buys the rights to service a certain number of those loans, which by now represent several or many Series’ of Mortgage-backed Bonds.  This is the best of all worlds because it starts just like stealing sand from the beach, nobody notices.  You see Grasshopper; if you’re going to steal money you don’t steal it from a bank.  Banks don’t have lots of money on hand and they have a lot of security cameras and auditors and government officials that are sometimes nosey.  Besides, why would a bank steal money from itself, it already has the keys to the Federal Reserve and all the money it takes from them it is supposed to pay back.  Anyway, Wachovia starts its new mortgage servicing branch and starts to take payments from all the nice homeowners out there in idiot land.  We all send our payment to Wachovia because that’s what we’re supposed to do.  Why wouldn’t we?  Wachovia takes your check and they throw it in a drawer, no payment made.  Next month, Wachovia takes your check and they throw it out the window, OOPS!   Now, Wachovia, heck let’s not just pick on Wachovia, now Wachovia/Homeq sends you a letter and they tell you that they haven’t received last month’s mortgage payment and that this month’s payment is late. You’re stunned, how could that happen? You tell them that you sent the payments and they tell you that maybe they got lost so either you can send them again or just wait to see if they arrive.  Now, you know you sent them so you decide to wait.  Next month a letter comes from Homeq/Wachovia and they tell you your mortgage is three months in arrears, in breach of your contract, and you receive Act 91 Notices as well as other default required notices.  You call the company, speak to someone who tells you not to worry and that Wachovia/Homeq has a “workout” department that will help you get current with your payments.  Now you’re speaking with the devil himself, these workout departments are trained to delay, extort, deceive, and basically do anything they can to get as much money out of you as possible.  Next thing you know you’re signing an agreement to pay a certain amount each month on top of your regular payment AND you have to pay a host of fees, many times including legal fees that were never incurred.  This will go on and on many times and will continue with the new mortgage servicing company that becomes involved because your mortgage is almost assuredly going to be transferred again to a different company.  Many times the same bank or individuals have ownership rights in the next company.  The types of deceptions and unfair business practices vary but they all share one common trait and that is extortion.  Bottom line is that rather than making a couple of bucks each month, by properly servicing your mortgage, these banks just pocketed thousands of dollars by screwing with you.  If you don’t have the money to pay Wachovia/Homeq then your home will go into foreclosure.
    4. Foreclosure Law Firms:  These are the houses of the devil himself/herself.  These attorneys do not care if you’re current with your payments, if the bank screwed with you to cause your delinquency, or if you were ever late on your payments.  Mortgage foreclosure attorneys are only interested in the four to six percent of the mortgage balance they will receive by foreclosing on your home due to the contractual provisions of your loan note/mortgage contract.  Wake up Beaver, June isn’t running this show anymore and Ward long since passed.  It’s Judy over at Phelan (pronounced Felon) that’s helping run the flesh-feeding.  Did I say Phelan or did I say Milstead?  (By the way:  Chrisovalante Fliakos – the Attorney that allowed Milstead to sign his name to the DeHarts’ Sheriff Sale is now working over at Phelan, small world eh?  I wonder what the Greek Orthodox Church thinks of his negative contributions to humanity?)  These types of firms are by far, aside from the US law firms that represent China and other foreign nations to bribe/lobby our politicians to send our money and jobs overseas, the lowest of the low. 
      It’s true that many of the foreclosures that occur in this country are soundly based and I have no problem with Capitalism at work; however, there are a significant number of foreclosures that are not based upon solid grounds.  Moreover, in the DeHarts’ case, Milstead and Associates decided to schedule a Sheriff Sale on the DeHarts’ home without any justification and with clear evidence indicating no legal right existed to complete the Sheriff Sale.
    5. Foreclosures that result in a Sheriff Sale:  The end result of a proper foreclosure in Pennsylvania, and many other states, is an execution sale on the foreclosure judgment, the Sheriff Sale of the home.  This process allows additional opportunities for Banks/mortgage servicing agencies, Wachovia/Homeq and Milstead, to screw with you again.  Let’s not forget, the private owners of the bonds, those poor souls will never know what hit them.  You see, foreclosures that end in Sheriff Sales often result in deficiencies, this all means that after Wachovia/Homeq is paid and after Milstead is paid there isn’t enough money to cover the remaining balance of the mortgage note.  Hence, mortgage bond owners face a decrease in the underlying value of their security.  It’s just like stealing sand from the beach, if it starts out small nobody will notice but when the theft occurs by a larger number of mortgage servicing agencies and foreclosure attorneys, all with front-end loaders, some people will begin to notice.  Now people, smart people, begin to notice that the beach is dwindling down and losing the inherent value that defined its security.  Shoot, we’re not talking about millions or billions, we’re talking worldwide financial security here baby.  Picture me this Robin, what would happen if the entire US Mortgage Market would be perceived by the world as threatened and unsecure?  Golly gee Batman, I guess people would lose faith not just in mortgage-backed securities but also with US Treasuries.  Good work Batboy, that’s right, Treasury is either directly and/or indirectly responsible for saving the butts of the idiots over at Freddie Mac and Fannie Mae.  Let’s have a party, Democrat or Republican, and start printing money.  Huh, you say, but that’s the Federal Reserve, we can trust in them.  Wrong again Bratboy, we can only trust in god and lately I haven’t seen him hanging around D.C. or NYC.  You’re in good company because the people of the United States have all been hung out to dry after getting soaked with the debt of the devil himself.  Correct, you and I, our grandchildren and their children, just lost our financial legacy because as we speak the trillions of dollars that was created is being pilfered by the same banks, mortgage servicing agencies, large owners of mortgage-backed securities, foreign nations, wealthy people, and the like who have political connections sufficient enough to get their money back that they lost.  Oh it gets much better, while we’re paying every ingrate with political connections, the sharks on Wall Street, and around the world, are lining up to buy large amounts of Mortgaged-backed Securities from the US Government.  Yup, your government pays its buddies face value for their bonds, that are valued significantly lower, and then your government sells those same bonds to speculators at a significant discount.  Silly speculator, where did you get the money to buy those bonds?  What, from our government!  You see Dorothy, the whoricane, commonly known as D.C., contains an unlimited ability to screw anything and everything they get their hands upon.  But wait, there’s no need to fear, the FTC and the SEC are here.  Good one, last time I heard something so funny I fell off my dinosaur holding my real estate investment trust, high yield mutual fund, and my junk bond.  Wait a minute, I bet if you look you’ll see a common thread that permeates each and every financial crisis in the last fifty years, they get the goldmine and we get the shaft.  Bend over and take it Martha Stewart, you know you’ll go to jail if you lie to Congress in any way shape or form; well, that is, only people who aren’t members of Congress will go to jail, Congress is allowed to lie to itself.  Oh yes, and they get paid even though the government shuts down.  Heck, they’re like herpes, you’ll never get rid of them, they’re immune to anything we could throw at them. 

TRUTH 5.  Back to DeHart of the matter:  If you made it this far then you are ready to accept what is undeniable truth; James and Judy DeHart weren’t behind on their mortgage payments and they weren’t the subject of a valid mortgage foreclosure when their home was sold at Sheriff Sale in Northampton County, PA.  Mistakes happen you say?  Not likely, weeks prior to the Sheriff Sale the DeHarts contacted their mortgage service provider and told them, days after receiving the first notice of the Sheriff Sale, that their payments were current.  Wachovia/Homeq directed the DeHarts to Milstead & Associates, the lawyers at Milstead insisted that the DeHarts were twenty-two payments in arrears and told the DeHarts that they had to pay the monies or their home would be sold at Sheriff Sale.  Next, the DeHarts’ attorney called the bank to provide proof of all the payments and proof that the payments were received, deposited, and that they cleared.  Not coincidentally, ten months earlier the DeHarts faced similar problems with Wachovia/Homeq in another case, there the DeHarts successfully proved that Wachovia/Homeq improperly foreclosed upon their home years earlier, the result of said hearing was the full reinstatement of the DeHarts’ mortgage.  The DeHarts proved that more than twenty percent of the amount the bank alleged was owed on the DeHarts’ mortgage was, in fact, not owed and was improperly added by Wachovia/Homeq.  On or about November of 2006 the DeHarts fully reinstated their mortgage in open court with the Wachovia/Homeq attorney accepting a certified check for the full reinstatement amount [Keep in mind the DeHarts were only behind on their mortgage at that time because Wachovia/Homeq improperly foreclosed on their home and they were not applying the DeHarts’ mortgage payments properly, the aforementioned litigation occurred and the DeHarts prevailed].  Nine months later, after the DeHarts sent every check by certified mail to Wachovia/Homeq, receiving confirmation of each payment’s arrival and confirmation of the depositing of each payment, Wachovia/Homeq scheduled the DeHarts’ home for Sheriff Sale alleging that the DeHarts were twenty-two months in arrears.  As mentioned previously, DeHarts’ attorney spoke to Milstead’s office and provided everything required to give notice to Milstead that the scheduling of a Sheriff Sale was not justified, information of all previous litigation, and notice of all payments submitted.  Notwithstanding any of the information/notice given to Wachovia/Homeq or their attorneys at Milstead, the DeHarts home was sold at Sheriff Sale.

TRUTH 6.  DeHart of the crisis:  The FTC has a website where you can file complaints and a complaint was filed on behalf of the DeHarts.  In fact two were filed on behalf of the DeHarts, one following the Sheriff Sale and one was filed several years earlier.  Neither complaint received any response.  The SEC is responsible for regulating securities, before 2004 many knew of the impending mortgage crisis and I for one sent a letter to the SEC outlining most of what has since occurred including complaints surrounding the practices of mortgage servicing agencies, their lawyers, and the effects that will be felt by the bond owners and the people of the United States.  No response was received.   The FTC and the SEC knew everything and chose to ignore the truth.  Now the government is embracing the destruction of the US economy and the end of the US currency as a worldwide trading mechanism.  Ask the Brits how well they did following the end of the British Pound Sterling as the international currency of trade.  It seems to me they suffered a huge economic crisis and forever lost their position in the world economy.  Yes, I know, England isn’t the US, thank goodness for that but please ask, why would anyone in the US government be cheering for the end of the influence of the US in the world?

TRUTH 7.  WE ARE ALL CONNECTED:  WE all share a common connection in this country, no matter how tenuous it may be.  Take for example the DeHarts, they are now suing Wachovia/Homeq, Milstead and its attorneys, and several other Defendants.  It is highly likely that taxpayer money, your money, is paying for the defense of those banks.  It is highly likely that taxpayer money, your money, has paid to keep the FTC, the SEC, the FBI, and each and every enforcement arm of this government from poking their noses into this type of case.  It would seem appropriately charitable for Wachovia/Homeq and Milstead to quietly admit the errors of their ways and offer to compensate the DeHarts for the suffering caused not just upon James and Judy but also upon their family.  James and Judy have now faced years of legal battles because YOUR/OUR government looks the other way and allows banks, mortgage servicing agencies, lawyers, and their staff to operate above the law.  I would be willing to bet that in the last ten years few have gone to jail for the above-listed behaviors/crimes except the occasional scapegoat.  I’d be very surprised if anyone in the government lost their jobs or was fired.  Wachovia, during the bailout, is reported to have taken billions of dollars per week from the Federal Reserve to support its operations due to its own bad investments and gambles.  Now, Wells Fargo merged with Wachovia, they’re birds of a feather, they’ll flock us together. 

Let’s look at the DeHarts and how this all affects them:

  1. The DeHarts’ credit has been screwed, they have been turned down for other loans because of the information Wachovia/Homeq provided to the credit agencies.
  2. The DeHarts’ have been harassed and faced extortion from their mortgage company for over seven years.
  3. Strangers have stopped by their home on numerous occasions asking about the Sheriff Sale and foreclosure and whether they can buy the home prior to the sale.
  4. Bank employees would randomly stop by their home and take pictures.
  5. The DeHarts’ name and address has been reported several times in the local newspaper regarding foreclosure and Sheriff Sales.
  6. The DeHarts were forced to file several bankruptcies to save their home from the attacks of Wachovia/Homeq.
  7. The DeHarts’ lives and the lives of their children have been negatively affected at a precious time of life that they’ll never get back. 
  8. The stress in their household forced James and Judy to seek counseling, their handicapped daughter nearly died, it has affected their health, added extreme emotional distress and basically made their lives hell because they were constantly in fear that their home would be taken away, etc.

TRUTH 9.  MOST OF THE MEDIA IS IN LOVE WITH ANYTHING BUT THE TRUTH:  What in the world happened to the Press?  How is it that my letter to the New York Times or the Philadelphia Inquirer went unnoticed?  It’s clear that many people have voiced concerns over many questionable activities and yet the media remains silent.  Of course, it’s highly likely that the owners of the media have increased their fortunes by ignoring said activities so I guess I can see why they’d prefer to sit this one out.  What is undeniable is that the silence of the media has allowed the current financial crisis to occur unchallenged.

TRUTH 10.  THE DEHARTS WON’T BE THE LAST TO BE IGNORED BY THE MEDIA, THE GOVERNMENT, THE COURTS, ETC.:  What saddens me the most is that “the Law” has been pushed aside and what was once the cornerstone of our Republic is now routinely ignored.  There is no doubt that our current government believes itself to be above the law and not constrained by its limitations.  There is no doubt that the government doesn’t give a lick about the DeHarts’ rights and for that matter it doesn’t care about your rights or my rights.  The government only cares when it’s forced to care or when its interests warrant it.  Let’s take the DeHarts’ case as an example:

  1. Following the setting-aside of the Sheriff Sale in the DeHarts’ case I approached the District Attorney’s office in Northampton County and they showed no interest in the case.
  2. The Judge that signed the Order setting-aside the Sheriff Sale, to my knowledge, didn’t refer the matter to the Pennsylvania Disciplinary Board to review the actions of the attorneys involved.
  3. No person or persons from any investigative body regarding banking, securities, law enforcement, or anywhere has ever approached me on any case involving this case or any other case I handled where it was clear both the bank and their attorneys were behaving dishonestly.  The letters I sent and the complaints I filed fell on deaf ears.
  4. Most of the Media, supposedly the fourth branch of government, is in league with politicians and finds no benefit protecting constitutional rights, unless the rights affected are its own.

NEWLY ADDED TRUTH 11. The Consumer Financial Protection Bureau, our newest “savior” doesn’t handle any mortgage matters yet.  Yup, I was watching our Commander-in-chief the other day and he touted the benefits we’ll all enjoy because of the Consumer Financial Protection Bureau, the CFPB, and I decided I’d take him for his word, silly me.  I called the CFPB and was directed to a nice young lady who couldn’t give me her name, couldn’t tell me what state their offices were located in, couldn’t give me anybody’s number to call that could help me, couldn’t give me her supervisor’s name, but she could tell me that she was given a laminated sheet that told her everything that she couldn’t give me and that the CFPB only deals with credit cards at the present time.  Well, with help like that it’s no wonder why things operate so smoothly for the crooks in the government and Wall Street.  Let’s be honest, do we really expect the crooks in the government to investigate their golden goose?  Man, we can’t even get Charley Rangel and Frank Raines in jail.  Ok, the previous administration may also have been involved in these activities but that doesn’t excuse them.  Sadly, in the government, two wrongs do make it right or at least make it untouchable.

WE TRUTH:  There was a time in this country when Politicians worked without regard to compensation but rather because of duty and honor. Today, government officials believe they not only deserve their inflated salaries but they also believe they are due large benefit packages and as much money as they can receive from lobbyists for favors and beneficial treatment in the procurement of government contracts.  Today, the government believes they can invade our privacies and take our property without limitation and without cause.   To make matters worse, “friends” of the government are given carte blanche to take our property without fear of government intervention.  We are at a point where we must decide what we stand for.  We can sit back and hope things will get better or WE can stand for the TRUTH. 

May God bless the USA and may God save Jimmy and Judy DeHart’s home.

READ ABOUT THE CASE:  By the way, Plaintiffs’ attorney is the main witness and he seeks the assistance of a law firm to assist with questioning on the stand, etc.  Get up off your butt and help us!  WE need you.  For that matter, we could use a law school or two to go through the documents that will be obtained through Discovery.


JAMES S. DEHART et al.,                                                    :

                                                Plaintiffs                                 :

                                                                                                :  Civil Action No. 11-416(MSG)

HOMEQ SERVICING CORPORATION, et al.,                    :  Jury Trial Demanded

                                                Defendants                              :

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