More Foreclosure Document Problems: Are Cram Downs the Answer?

From Daily Finance by Abigail Field.

Despite the deposition of Wells Fargo (WFC) employee Herman John Kennerty, in which he admits to signing off on foreclosure documents without verifying anything but their dates, Wells Fargo continues to insist it doesn’t have a documentation problem of the sort admitted to by its competitors, GMAC (GMA), JPMorgan Chase (JPM), Bank of America (BAC) and OneWest Bank.

But let’s consider the case of Frederico and Herlinda Guevara of Texas:

Consumer bankruptcy attorney Thad Bartholow defended the Guevaras in U.S. Bankruptcy Court against Wells Fargo’s claims that they owed $18,600 in mortgage arrears and fees. To prove that claim, Wells Fargo offered a sworn statement signed by employee Tamara Savery that Wells Fargo owned the Guevaras’ mortgage. After Bartholow pointed out that Freddie Mac claimed to own the mortgage, Savery signed a second sworn statement swearing that Freddie Mac owned the loan and Wells Fargo serviced it for Freddie. When Bartholow deposed Savery and asked her how she could swear to two contradictory things, Savery admitted she neither prepared the documents nor verified their contents before signing them.

Thad is a Bankruptcy Boot Camp graduate and let me tell you it is no coincidence that many of the stories coming out about the problems in the foreclosure industry include Max’s graduates.  Max has been teaching attorneys for several years about these practices that are only know starting to get the mainstream media’s attention.