News Oct 23, 2013 at 4:00 am

Two Days Before Eviction, Phyllis Walsh Killed Herself and Left a Note About the "Foreclosure Vultures"

Comments

1
They wouldn't even slow down the foreclosure when the woman died. These heartless bastards. There are million and one different things they could have done to prevent her death. They could have delayed her payments. They could have only foreclosed when she died a natural death. They could have had mercy on an elderly widow.

Fuck these bastards. US Bank killed this woman.
2
obviously she should have moved into microhousing
3
I am dedicating this Monday's (28 Oct) Seattle Council Candidate Forum to Phyllis Walsh, particularly because she appears to have MERS as a Beneficiary in her Chain of Title, which of course is questionable under Bain.
http://bbjtoday.com/blog/attorney-james-…

A short promo video will be posted later today but for more background on the event follow at SAFE in Seattle FB and at Mortgage Movies Journal.

http://mortgagemovies.blogspot.com/2013/…

https://www.facebook.com/SafeInSeattle

Peace.
4
If US Bank was half as concerned about protecting Phyllis Walsh's life as the are now about protecting her confidentiality, she might be alive today. Such are the priorities of Wall Street.
-- Stephen Price
5
Indeed Stephen, indeed. Here's today's promotional movie for Mondays candidate forum. The forum is dedicated to Phyllis Walsh.

https://www.youtube.com/watch?v=9-edYzp5…

Peace. And Justice.
6
So they bought the house in 1992, but then took out two mortgages in 2004 and 2006... and now she doesn't have the money to keep up with the payments? They took out all their home equity at the top of the market, and SPENT IT ALL? And instead of short-selling the house and moving to an apartment or rental, she got $15,000 behind on the mortgage and didn't move out even after the foreclosure auction? It's sad that she killed herself over this (needlessly), but she and her late husband made multiple terrible financial decisions repeatedly for many years.
7
@6: No, no, no! The BANK is the bad guy here! THE BANK! Because they're...they're...they're so banky!
8
This breaks my heart.

And #6, you suck.
9
#8, Why are you being nasty to #6? He/She is telling it like it is. I'm not saying we shouldn't have sympathy for this poor woman and others like her but she and her husband DID make some crucial mistakes. Yes, the evil banks are often interested only in the bottom line but consumers ought to be more educated so that they don't get into these financial messes in the first place. And before you call me a heartless bitch, know that I never learned how to manage money and I'm in debt up to my eyeballs. I am, however, trying to pay off what I owe so I don't lose MY condo. If I left a bunch of phone calls and/or emails to the banks and they didn't get back to me, I would sure as hell go down there in person and demand to speak to someone. It kind of sounds like this woman just got too bogged down, depressed about the whole thing and gave up.
10
This is meowing sensationalism, its bad when people kill themselves, but if you devoted even one paragraph to the math of this story you wouldn't get nearly as many tears.

Post #6 nailed it, and since all of the info is in the tax record its public information.

Average home price in south Seattle* ( code for raineer/skyway ) in 92 was around 80k. In the 12 or so years to 2004-2006 it was closer to 200k

Left out of this is the amount of money this woman and her husband withdrew from this property like a ATM and spent. Did they have health issues? or did they enjoy carnival cruises, we will never know.

Either way its the fault of the bank that let them miss 15k worth of payments, while still living in the house( ha ha SUCK IT RENTERS ) or the third party person who bought it after the fact.

spot on reporting guys!
11
This is like some old Bob Dylan song. There are 100 places where you want to cry. You want to be mad at the banks for foreclosing, but you know without foreclosure there wouldn't be mortgages and without mortgages there wouldn't be houses. But I'll tell you something. We have a very good and very expensive social services system here in the Northwest. Somebody could have seen this coming and they could have made a phone call. Somebody could have spent 10 minutes and said to herself, "Yep, this one's going down." And she could have made a call and someone could have driven out and knocked on a door and said, "Phyllis, how's it going? May I come in and chat for a second?"

You know who knew this was going to happen maybe a year, maybe two years, maybe even three years before it did? The bank. The person managing her loan could have made a phone call and sent someone we pay a modest salary to (given their ungodly amount of education) to do just this thing, and maybe could have helped Phyllis see the inevitable and sell the house before it all came crashing down and then had some resource left over in appreciation to keep her head above water.

It's insane how long the banks give you after they know damn well you're so deep underwater you'll never get out. Two, three years after you stop making payments. Somewhere in there can't they make a call? It's not like the phone numbers are secret or anything. And we all know that someone who suddenly becomes homeless suddenly costs us all a bunch of money or worse, makes us realize just how inky black are the dark corners of the richest nation on earth.
12
wow, there are some seriously stupid people here, with no experience or knowledge about foreclosures, why the housing bubble happened,MBS, MERS, robo -signers, etc...- before you judge someone... educate yourselves!
13
#6, 9, 10, 11 -- Sensationalism my tuchis. You can't pull that BS on me buddy I'm a lawyer. Even if there were imprudent financial moves by the family (and we don't know all of the facts) I have CONCRETE examples where people have not missed a single payment, yet the banks have screwed them by not applying payment and by falsifying escrows. This even happened to a local attorney who tells you about it right here:

http://www.youtube.com/watch?v=x9mOBEUX0…

Here's a women in Illinois on the escrow tip:

http://youtu.be/6qDtVpRdLlc

And in this case you have MERS and Countrywide on her Deed of Trust; they probably didn't even have provable standing to foreclose in the first place because they have used her signature to generate untold sums in the derivatives market without telling her that she was an undisclosed third party participant in this elaborate ponzi scheme. Watch another industry professional who sold stocks and bonds explain it all right here:

http://www.youtube.com/watch?v=4tsYCU7uj…

And what about the examples I have seen where banks refuse to negotiate for loan mods even when people are CLEARLY qualified but they get dual-tracked on out the door while the bank stalls on their "mods?"

Huh? What about THAT, guys.

Moreover, how many homeowners took the bait that was spread about back in the day when I was a closing attorney that the market was only going up, up, up, up, up!!!!

BS BANK is right. And the forum on Monda in her Honor is going forward.

http://mortgagemovies.blogspot.com/2013/…
14
And oh while I'm at it what about Lamar Gunn, a financial planner Series 7 who never missed a payment....

http://mortgagemovies.blogspot.com/2012/…

At least we got a notary decomissioned for life with his investigation.

http://youtu.be/-kTDONNC5rI

So you can take your trash talk elsewhere, these banks are criminals, witness the Lorraine Brown incarceration as noted in the movie.

http://www.justice.gov/opa/pr/2013/June/…

Yup. Say something now. I'm here. I'm waiting.
15
@14: You are not a lawyer. You are a crazy person. Please avail yourself of the social services mentioned by an earlier poster. Get well soon.
16
@15: I have nothing to prove to you. You know who I am and I readily identify myself and interview Scott Stafne an area lawyer who knows I have won criminal trials and settled civil suits. You are an Internet troll.

Scott and me:
http://www.youtube.com/watch?v=-W3iQR8z3…

Me winning a First Amendment Trial:
http://www.youtube.com/watch?v=PP0AhTuKJ…

You have nothing to say about the proven facts of corruption I demonstrated and you have nothing to say about the lawyer I interviewed about her case so you can pretty much commit an expletive against yourself. There is no getting well for you because you are a Troll. How much did the banks pay you to come to this page with your little COINTELPRO bullshit boy?

You're stale.
17
@15 Unregistered comment. So lame. Grow a pair, identify yourself and let's meet for a principled debate in public about your assertions. Otherwise stop wasting bandwidth.
18
@17: If you're a lawyer, would you mind providing your Washington Bar Association member number?

Ha ha, just kidding! I already looked you up by name, and you're not a member. But you confirm on your website that you do live in Seattle, so the Washington Association is the one you would have joined as an attorney.

I repeat: you are not a lawyer. You are a crazy person.
19
Hey you idiot did it ever occur to you that I am not from Washington?
I just moved here in July you idiot. Road my bike here as a matter of fact, it was a blast.

http://christopher-king.blogspot.com/201…

I suppose I made up that courtroom video I showed you, hired an actor who looks JUST LIKE ME and my client and I never closed those 200 residential mortgages either......

You are a complete tool. Even if I were not a lawyer or a closing attorney you have NOTHING to say about the examples of criminality and other white collar wrongdoing I just showed you.

Focus. I know you can do it. Well actually I don't know that.... because you are a troll, wasting bandwidth and everyone can see it. As I said grow a pair, get off the banks' jock and engage in a public debate with me on your ummm, position.
20
@19: So you are an ex-lawyer. But you are now not a lawyer. In fact, I find that an attorney with the same name as you was suspended by the Ohio Bar Association in the late 1990s and has been barred (ha!) from practicing law ever since. I suspect that former attorney is you.

I say again: you are not a lawyer. You are a crazy person.
21
I am suspended so what. I am still a lawyer whether or not I practice, fool. Just as when a doctor is suspended or stops practicing she or he is still a doctor. There was so much corruption involved in that suspension that Law Professor Lou Jacobs opined that much of it was due to "reactionary politics and racism." Judges lied and made up facts just as I see happening all across America today and my troubles started in a case where I was guess what...... suing a bank.

So if you're proud of that, so be it. As far as all of the attorneys I work with they are well aware of said suspension from more than 10 years ago and couldn't care less because they know I am not a crazy person.

Now then, rule me out of the equation and respond to everything else I presented.

Wait, I know.... you cannot. That's why you run subterfuge against me, because you are a complete troll, and a shill for the banks, which is why you stay in hiding :)
22
"took out two mortgages in 2004 and 2006... and now she doesn't have the money to keep up with the payments? They took out all their home equity at the top of the market, and SPENT IT ALL"

Woo hoo, F150 baby!

Maybe banks shouldn't loan to mentally unstable people. Or poor people. Credit is a privilege, not a right.

Oh, and guns.

"This is like some old Bob Dylan song"

Like this one?

Wiggle, wiggle, wiggle like a gypsy queen
Wiggle, wiggle, wiggle all dressed in green
Wiggle, wiggle, wiggle ’til the moon is blue
Wiggle ’til the moon sees you

Wiggle, wiggle, wiggle in your boots and shoes
Wiggle, wiggle, wiggle, you got nothing to lose
Wiggle, wiggle, wiggle like a swarm of bees
Wiggle on your hands and knees

Wiggle to the front, wiggle to the rear
Wiggle ’til you wiggle right out of here
Wiggle ’til it opens, wiggle ’til it shuts
Wiggle ’til it bites, wiggle ’til it cuts

Wiggle, wiggle, wiggle like a bowl of soup
Wiggle, wiggle, wiggle like a rolling hoop
Wiggle, wiggle, wiggle like a ton of lead
Wiggle—you can raise the dead

Wiggle ’til you’re high, wiggle ’til you’re higher
Wiggle ’til you vomit fire
Wiggle ’til it whispers, wiggle ’til it hums
Wiggle ’til it answers, wiggle ’til it comes

Wiggle, wiggle, wiggle like satin and silk
Wiggle, wiggle, wiggle like a pail of milk
Wiggle, wiggle, wiggle, rattle and shake
Wiggle like a big fat snake
23
@1,

They had already sold the house.
24
@20, considering his pompous and condescending tone, it is plausible that KingCast is indeed a lawyer.
25
PS: Still closed those 200 residential sales, and I still cleared title on countless properties for American Tower Corporation and I was also a zoning manager in New England for TMobile so I still know exactly what is going on here when it comes to property rights and I probably know your IP address as well but we'll get to that later.
http://i41.tinypic.com/vmtyc4.png
http://i42.tinypic.com/29wu1lk.png

So you can talk to the town of North Andover about some of that if you want to continue your research with something more recent:

http://www.townofnorthandover.com/pages/…

And who are you again?

Oh, that's right. The unidentifiable troll,

Sucking on a bank sugar tit,
Sucking on a bank sugar tit,
Sucking on a bank sugar tit.....
26
@21: Your suspension means that you cannot represent any party in a legal action. You have been judged unfit to practice law. If you do attempt to practice, you will face charges of contempt—as you have in the past, judging from records available online.

So, no. You are not a lawyer. You are a crazy person.
27
If this woman was still on disability and didn't have a regular job, refinancing the mortgage was going to accomplish nothing. SSI is around $600/month. You aren't going to be able to service two mortgages on that income, period.

I feel really sorry for this woman. She was sold a bill of goods nine years ago and made a bunch of bad financial decisions, when she would have been much better off cashing in her equity by *selling* the house and then scaling back her living situation, especially given that both she and her husband were dealing with health issues. But this story still isn't about the financial sector's malfeasance. Recessions happen all the time. Housing loses value all the time, especially in conjunction with a recession. Unless someone can provide evidence of malfeasance in this case (such as the blood-sucking practice of offering ARMs), she lost her house fair and square.

If you're going to blame anything specific, blame the government for offering shit disability coverage. Blame the government for not offering single-payer health care.
28
@26.... No problems here mate. Still an unlicensed lawyer just as I said, when courtroom representation is called for I refer cases out to lawyers in my circle but I guess you don't get it. And funny not one of the complaints came from my clients, only from big business lawyers and the banks for whom you are likely working. Same modus operandi I see everywhere -- show absolutely no concern for the subject matter and attack the messenger. But thanks for your concern and have a nice day!

@27.... As I mentioned I do not know ALL of the specifics in this case but right off the bat seeing MERS on her Deed of Trust and Countrywide in her chain of title leads to an inference that they may not have even had standing to foreclose or to be the real party in interest. And the larger picture is what these banks did using your signature without you knowing it. To get it you really have to list to Jerry explain it as we drive through the streets of Manhattan.
http://youtu.be/4tsYCU7ujPU

Do you understand that the whole thing is malfeasance, I don't know how old you are but look back at similar scandals with Enron and in the decade before that, the S&L scandal and the Keating 5.

Peace.
29

Sad, but many people in Seattle should have sold and moved out.

Even now people should do that.

Leave for Tri-Cities or Prosser.

Cities are not what they were...especially Seattle, America's (formerly) Last Middle Class City.

30
When we went through the refinance nightmare with WF we were advised to stay in default but only by a month, to improve our eligibility. We worked the system for 18 months, forced to fax hundreds of pages of documentation monthly(to keep the file open). Our sin? We both lost our jobs for nearly two years and ONLY had 60k in savings. If you haven't been through it, you have no clue how Kafkaesque it is.
31
How selfish of her to kill herself. Poor thing.
32
17.4 percent of all households are underwater.


THIS is the money quote. 20%!
Jesus Christ. If that's true it's clearly proof that the crisis is totally manufactured by predatory lending.

BTW. The number one cause of personal bankruptcy (and the often subsequent home foreclosure) is a serious health crisis. And MOST of those people have insurance and jobs.

You have this toxic cocktail of predatory lending, unaccountable banking, and no healthcare safety net. And boom! Impoverishment. Go USA!
33
@30 lucyboots

Did you make it into a new Agreement? You know what dual tracking is, right? They fake you into default to help you get a modification, then try to boot you anyway. If you don't know just Google it.
34
PS: I'll feed the troll one more time.

People said I was crazy when I said I would prove that two cops made my client a victim of violent crime. Three years later I made them all eat crow and the Ohio Court of Claims agreed.

http://christopher-king.blogspot.com/201…

And true enough people said I was crazy to think that Al and Jessie Hamm would win their property dispute to install housing for the frail, elderly handicapped but they too, ate crow.

http://i43.tinypic.com/34pcox0.png

Then I sued a bank and my troubles started with a bunch of lies and deceit. So you can call me crazy all you want to, but not one client will agree nor would any of the attorneys I work with now because they know how corrupt the system can be. So any time you are ready, willing and able to discuss the impact of Bain, MERS and Countrywide fraud give a holler.

Ciao.
35
Them old schollers are too proud to ask for help...how sad, she could have moved into affordable housing and filed Bankruptcy and lived another twenty years with no more stress about owing a bank..
36
@33 Not for the federal program because we didn't owe enough on the first. Now that was the government's fault because they wrote the rules to exclude 2nd mortgages as part of the consideration of whether or not you were under water. I challenge ANY of them to try to buy a house in SF without a 2nd if your middle class. We did get a decent refi and fixed through a WF program and only because our rep knew about it and put us in for it.

Here's what really frightens me about the whole mess: we clearly didn't learn any lessons. Our house has now gone from underwater to ~$150K over in less than a year. That's nuts.
37
what equity did they pull out?

why not short sell, move into apartment?

if retired btw often can locate in cheaper place, too. if not working.
38
@36
So you know what kind of determination, luck and skill you must have in order to get anywhere and that is by design. Without using all of those tools in the shed you would have been out of your shed!

Beware the false market inflation, there's all kinds of voodoo behind that..... and if you're ever into hearing a great guitarist my law school pal Trent Berry is down there -- he used to play with Robert Lockwood I won't link him here but look him up!
39
@MPphx #6

The only terrible decision is your comment.

Mortgaging one's home to pay for medical debts is the misfortune of so many Americans caught between the blades of two thieves, the banks that issue debt in your name and the banks that have transformed the health care system to do the same.

Your lack of empathy and compassion have been noted.

As you've sown here, so may you reap.
40
@39

Solid. Hope to see you Monday.
41
"Here's what really frightens me about the whole mess: we clearly didn't learn any lessons."

What's this "we " shit?

"Mortgaging one's home to pay for medical debts is the misfortune of so many Americans"

There's no evidence she did that or spent it on an F150
And Disney cruise. Only evidence I see is she was a bit of a moron who should have never been given second and third mortgages. Luckily the banks won't give fuckups loans anymore.
42
@38 by "we" in that last I meant America. I realize that SF is a bit like Manhattan due to fixed land size, but a 250K swing in two years? I don't want to think what will happen when Twitter IPOs. I'll look up your friend. New music is always of interest to me.
43
@suckleworm #41

Banks will print as much money into existence through debt as the government will allow.

This unfortunate soul simply did not understand how false her belief was in this system.

Your dance upon her grave will not serve you well.

One, who feasts on another's sorrow, hungers for their own.
44
Thank you @27, my thoughts exactly. If the bank did something illegal or unethical, then find out and report it. Otherwise it's just an unfortunate situation.

Also FYI, “underwater” doesn't mean someone is behind on their payments. It only means their mortgage is higher than the house is currently worth. Tons of people are underwater right now because house values dropped in the past 10 years. If they can keep making their mortgage payments, they’re in no danger of foreclosure. If they can’t, or need to sell the house, that’s a separate issue. So it’s not accurate to connect the underwater statistic to this case, or even foreclosures in general for the most part.
45
@KingCast, MERS had zero to do with the foreclosure of this house. MERS was on the 2nd deed of trust from 2006. US Bank foreclosed on the 1st deed of trust from 2005, which was never assigned to MERS. So from the foreclosure perspective there was nothing "questionable" about the title chain.

But since you brought it up, is no one going to talk about the "swiss cheese" of loopholes that is people crying "MERS! MERS!" to stop foreclosures of mortgages that they aren't making the payments on? Why exactly should people be allowed to keep houses that they don't pay for??

And good grief, @11, some customer service rep at a bank should have noticed the lady on the phone sounded unstable and alerted someone to it? Not the neighbor, or her church congregation, or the family members emptying out her house now, but someone at the bank?!

None of this is to say that the situation isn't terribly sad, but despite the dramatic end, this story isn't the poster child for helpless foreclosure victims as the article and some of the comments make it out to be.
46
@KingCast, MERS had zero to do with the foreclosure of this house. MERS was on the 2nd deed of trust from 2006. US Bank foreclosed on the 1st deed of trust from 2005, which was never assigned to MERS. So from the foreclosure perspective there was nothing "questionable" about the title chain.

But since you brought it up, is no one going to talk about the "swiss cheese" of loopholes that is people crying "MERS! MERS!" to stop foreclosures of mortgages that they aren't making the payments on? Why exactly should people be allowed to keep houses that they don't pay for??

And good grief, @11, some customer service rep at a bank should have noticed the lady on the phone sounded unstable and alerted someone to it? Not the neighbor, or her church congregation, or the family members emptying out her house now, but someone at the bank?!

None of this is to say that the situation isn't terribly sad, but despite the dramatic end, this story isn't the poster child for helpless foreclosure victims as the article and some of the comments make it out to be.
47
45 and 46 The bottom line is that you assume facts not in the Record. How do you know that there was standing to sue and real party in interest ever proved, or provable? That could be a matter for post foreclosure relief my friend because that was never adjudicated because she didn't know her options.

You ARE aware that many many cases have been thrown out because of this.... and I have seen multiple banks try to foreclose on the same property so there are issues there my friend, I keep a Lexis account just for that very reason.

As far as the occasional "free" ride, how about the ride the banks took us on with that undisclosed third party contract that in turn was built on fraud because the notes never reached the tranches?

And how about the failure to negotiate we see repeatedly, with the dual tracking?

*****
@ the troll -- The bottom line is whether you like it or not I crafted two of the four questions presented and I will continue to do so at future forums.

I'll post the questions here shortly.
48
I'm off to the SAFE protest at BoA. Meanwhile note that they jailed bankers in Iceland for these actions.

http://www.youtube.com/watch?v=he4YaDH6X…

And here are the questions, whether the troll like them or not.

QUESTIONS FOR PHYLLIS WALSH UNDERWATER/FORECLOSURE FORUM #1
BETHANY COMMUNITY CHURCH 6230 BEACON AVENUE 98108
DOORS AT 5 QUESTIONS AT 5:30

1. From SAFE in Seattle.

Do you understand that the foreclosure crisis has been manufactured to steal people’s homes? How will you represent, US, the tax paying public to secure our rights and property for living civilized lives? Whose side are you on? The People or the Profit?

2. From Financial Revival Group.

It is alleged that Phyllis Walsh was attempting to work on a refinance or what is considered a loan modification with U.S. Bank prior to her death, and that she killed herself because she couldn’t get anywhere. We all know that this is a common problem throughout the Country. In New York a State law was written in 2009 that requires banks to negotiate in Good Faith. Several judges have punished banks for failing to do so. Would you support a City, State or Federal Effort to compel banks here to negotiate in Good Faith, and what would you do to help increase consumer knowledge of all of the available programs that include state assisted mediation, bankruptcy and litigation?

3. From KingCast.net and Mortgage Movies Journal.

The banks have shown us that this is not an area where free markets work, often because of the sort of corruption we are seeing that led to the imprisonment of Lorraine Brown at Lender Processing Services, a robo-signature document mill. Many are saying that it is time for local and state governments to step in. In Oregon U.S. Senator Jeff Merkley is setting into play the Merkley Mortgage, where homeowners refinance through the government at a 4% rate. The government borrows the money at a 2% rate and the difference pays for the program. Testing in limited number of places. Moreover, in California the City of Richmond is moving forward after a failed legal challenge by Wells Fargo that would stop them from seizing homes by eminent domain at Fair Market Value and then offering homeowners refinanced Agreements. Eminent domain of course is the age-old law that allows cities to forcibly acquire properties for the good of the public. This is an unusual application of that age-old rule.
Have you formed an opinion on either of these initiatives and if not, what would you need to know in order to make your best judgment?

4. From Stafne Law Offices.

RCW 61.24.040(5) requires a trustee's sale to be at a designated "public place."

How does the candidate feel about Trustees, purportedly acting as a neutral judicial substitute, selling houses on private property in violation of RCW 61.24.040(5), where such a sale results in a lowered sale price of the home?

Would the candidate be willing to strengthen this requirement by passing a law requiring the sheriff to stop such illegal sales?
49
RIP Phyllis Walsh

50
@ 44 - Thanks for your comment regarding the use of 'underwater' in the context of this story. You are absolutely correct in that being underwater does not mean that foreclosure is imminent or going to ever happen.

The 20,000 people underwater in Seattle makes me wonder how many of that number are second homes that a lot of people bought in the mid-2000's to hold as rentals, 'flips' or 'investments'. I have no sympathy for those speculators if they lose those houses. I do have sympathy for the poor neighborhoods where those 'investment' houses are located because they are the least able to handle yet more instability that comes from additional foreclosed houses.
51
@50 I wouldn't go so far as to say that I have zero empathy for speculators trying to live the American Dream that was put forward by the banks and the entire phony market. But yes obviously I feel worse for the nuclear family/single property owner who now has no money to take out of their home to send their children to college.

But wait: They can take out student loans.... and the REMIC games continue.... same game different name.

Also the correlation between underwater and foreclosure is such that many homeowners faced skyrocketing payments when their Adjustable Rate Mortgage payments soared.... as their property values dipped. So now they can't take out money to pay the ridiculous adjusted rate.... and BOOM out go the lights a/k/a foreclosure.
52
This is sadly what happens when the banking industry told everyone your house was an ATM and everyone believed them. Your house is your home: you need to be responsible for it and your bank needs to respect you and your home even if there is a mortgage on it.

The banks have most of the blame for playing games with people's lives but the homeowners share in the responsibility as well.
53
52 Agreed there were some homeowners who, out of ignorance or greed, thought that they could do things well beyond their means. But the saddest thing is that these banksters and their pals knew that the market could not sustain itself like that and that everything would crash but it didn't matter to them as long as they had your signature so that they could go make money with it on the derivatives market.
54
As I read through the comments, particularly the early one posted at #6, I am struck with how much education we need to do. For 4 years I have been beating the "awareness and education" drum and I still am shocked how much ignorance there is as to the reality of the situation.

Relative to #6's comment. The decisions many homeowners made, were predicated on inaccurate or down right untruthful information. Homeowners had no knowledge of the fact that they were participants in one of the largest ponzi schemes in all of history see: http://www.rollingstone.com/politics/blo…. They had little understanding that this scheme would soon have such a devastating effect on the economy that they would have little ability to recover from any financially hardship that might come their way. Historically, if a family experienced loss of income, health crisis or death in the family they could access equity or at worst sell their house. These options are often no longer available. Additionally, they were unaware that negotiating a loan modification is often a lose lose proposition and h/o fall in to the trap of duel tracking whereby the bank tells them to stop paying,pre-qualify them for a temporary payment plan and then in the end deny the permanent modification and foreclose on them. At least 50 percent of the files I review fit this scenario.

They also had no idea that the banks would make money whether or not they defaulted on the loan and in many cases the default triggers significant cash flow thereby relieving the banks of any real risk and so there was little concern about whether the borrower was actually qualified. But typically the borrowers trusted what they were told. Surely that banker/broker would not talk them in to a loan they could not pay back.....

I could go on and on and on but suffice to say, #6 is ignorant of the true nature of the situation. In fairness, I too would be in disbelief if I did not see what I see on a daily basis. Truth is stranger than fiction....it is disgusting.

I suggest he/she spend a few hours researching the issue before making a knee jerk judgment. He can start with a google search of foreclosure suicide and he will learn that Ms. Walsh is one of thousands who have fallen victim in this tragic war. Better yet, come to our event and we would be happy to educate.

People like 6 need to decide whose side they are on. You are either on the side of justice, basic decency, the integrity of our systems AND the People or you are in support of exploitation, greed and corruption on steroids. I will give you a pass this time and assume you simply are not educated. -Michelle Darnell Foreclosure Defense Paralegal
55
@52: Sorry, but @6 is correct. You cannot borrow hundreds of thousands of dollars of other people's money, spend it all, cease payment, and then expect them not to collect the collateral you put up. That is simply not a reasonable expectation.

It is sad that this woman killed herself. It sounds like her problems got to be too much for her. And even self-inflicted problems...are still problems.
56
@55

You miss the point. As I noted throughout, there are people who never missed a payment being booted by the use of manufactured escrows.

Further, it is not a reasonable expectation to have the banks lie to you about what your signature is doing, make tons of money off of your signature on the derivatives market (as the gold and silver standards have long since been disolved) without any consideration being given to you as unwitting participant.... and then lie about the notes even getting into the REMIC and you know I'm right. There's no room for debate about this.

And it is not a reasonable expectation to believe the banks should follow the LAW when it comes to documentation to foreclose as well as the mandate to negotiate instead of dual tracking the qualified homeowner right on out the door. There's no room for debate about that, either. It's the god*** LAW.

As to the homeowners, most of them are NOT deadbeat. They had no idea what their rates would do when the ARM hit, and why is that, in part because of the LIBOR scandal.

Sorry my friend but I was there. I closed those LIBOR loans and now I know the true impact.

And so do you, instances of some irresponsible homeowners notwithstanding.
57
@56: Those other people are not the subject of this article. Apples and oranges.
58
Another sad story of folks taking all the cash out of their house before the Great Recession, then being underwater AND unable to pay their new, much higher house payment.
I'm sorry she lost her husband and wasn't able to cope with that and losing her home. She's at peace now.
59
Walsh had a huge record collection, "all kinds of Beatles and Rolling Stones."

So, am I the only one who caught this? Why the heck didn't she sell her record collection? Even if she only got $10 each she might have made enough for the first and last months rent + deposit on an economy apartment. Why cling to this house? I know she probably had fond memories of being with her husband but, in the end, it's just a building.

I have a feeling this lady's problems were more to do with depression than bank foreclosure.
60
@57 -- You can look at things as narrowly as you want to, but again some of those issues ARE at stake here, including but not limited to the allegation that the bank would not work with her as she was trying to refi. You did see that allegation, correct?

As far as the rest of the corruption goes, eh, whatever I guess it's not really important and has absolutely no bearing on any potential corruption in this case. Right.
62
@60,

Is there a law I'm not aware of that requires banks to work with borrowers in default? I've been googling, but I've found nothing other than programs meant to "encourage" negotiation.

Maybe US Bank was just being an asshole, but Phyllis Walsh was previously on disability and was likely on Social Security, trying to pay two mortgages that added up to $15,000 (minus fees and interest) after three months. Refinancing is a useless endeavor if the borrower has no assets and limited income.

Looking at that house, I can't believe it's worth much more than $200k, definitely not over $300k, which makes me wonder how much equity Walsh and her husband took out of their house to make her mortgage payment that high, and whether they took out an ARM.
63
"This is sadly what happens when the banking industry told everyone your house was an ATM and everyone believed them."

Nope, only the idiots believe them. Some of us were smart in our investments but apparently we need to be punished to bail out the morons. At least this one did us a favor and blew her brains out rather than demand someone else pay off her ATM bills.
64
I am so sad to hear the news, and I hope the old woman will have a better life in the heaven. In my opinion, the state must improve the law, and formulate more perfect law to protect vulnerable groups, especially the old!
65
63: Your comment shows how ignorant you really are because we are ALL paying off the banks for TARP fool. Not to mention that fact that you just gloss over the outright fraud and manipulation that was foisted upon the American public and the investors along the way. Waaaa Waaaa that bro.

62: Basically in the consent decree banks were supposed to eliminate all the dual tracking nonsense, much of which was precipitated by the bank telling homeowners to go into default in the first place, so that they could then allegedly qualify for loan mods. BoA and other whistleblowers have made this practice public as noted in a feature-length movie I am working on back on the East Coast. Watch the interview with a guy who almost died in a propane explosion explain who BoA put him through hell, the same way that Candidate Shen noted last night.
http://youtu.be/lXlHu2002Vc

Much of this was discussed last night at the Candidate forum.
http://mortgagemovies.blogspot.com/2013/…
67
Audits were also discussed at the forum. Audits are what led PA Recorder of Deeds Nancy Becker to file her ongoing Class Action suit against MERS

http://agbeat.com/housing-news/pennsylva…

Just sayin'.
69
so many assholes on here but wow #63 you really take the asshole of the year prize. If I were more heartless like you perhaps I would hope for your suicide so as to rid the world of one more hateful cold hearted douchesack wasting valuable space. As much as I would love to see less hatred spewed from the mouths of people like you, I would be sad to hear of your suicide as well because suicide is sad. I do however hope that you eat some Foster Farm chicken, get horribly ill, and end up in the hospital. Why? Because although I'm not heartless enough to hope for your death I'm also no angel either, and somehow imagining you writhing in pain while the doctors tell you that you have been infected with a antibiotic resistant strain of salmonella makes me giddy with glee. Especially after reading your hideously disgusting remark for the third time.
70
69

I hear you. Some people.....
71
We are living is a sad time when banks seem to have lost sight of the human component of doing business. That being said, people should know that Washington State passed the Foreclosure Fairness Act or FFA in 2011. The FFA provides FREE housing counselors to all home owners to help them navigate the modification process. It also established a foreclosure mediation program to help home owners who qualify to avoid unnecessary foreclosure. Foreclosure mediation forces the banks to do a complete, thorough, and timely review of the home owner’s finances while putting any pending trustee sale on hold until the review for modification has been completed. For details about this program you can visit the WA Department of Commerce website and select the program link, or contact a free housing counselor at 1-877-894-HOME (4663). As the manager of a Dispute Resolution Center foreclosure mediation program, I have been shocked by how few people know this program is available.
72
We are living is a sad times, banks seem to have lost sight of the human component of doing business. That being said, people should know that Washington State passed the Foreclosure Fairness Act or FFA in 2011. The FFA provides FREE housing counselors to all home owners to help them navigate the modification process. It also established a foreclosure mediation program to help home owners who qualify to avoid unnecessary foreclosure. Foreclosure mediation forces the banks to do a complete, thorough, and timely review of the home owner’s finances while putting any pending trustee sale on hold until the review for modification has been completed. For details about this program you can visit the WA Department of Commerce website and select the program link, or contact a free housing counselor at 1-877-894-HOME (4663). As the manager of a Dispute Resolution Center foreclosure mediation program, I have been shocked by how few people know this program is available.
74
A quick review of the KC records shows that she previously lost a significantly (3X) more expensive house in Broadview to foreclosure in 1992 shortly before inheriting the Skyway house mentioned in the article. This house had 5 mortgages taken out on it between 2004 and 2006, and 2 of these were discharged at foreclosure - a first for $94K and a second for $58K. The house is currently listed for sale, newly remodeled, for $189K.

Sad story all around. I suspect if you look back at the 5 mortgages from the bubble era they're probably not loans a bank would make today.
75
#69, I love you! But I don't love 69. Is that too much information? Ha ha.
76
@ 51

Unlike you I have zero sympathy for the speculator crowd. My neighborhood has paid a big price for decades because of these assholes who are interested in themselves only. You may call their greedy and neighborhood destabilizing scams 'The American Dream' but I surely don't.

They weren't 'buying' what the banks were selling them, they knew it was a house of cards. And if they didn't know it was a house of cards they were fools and idiots that deserve to learn the hard way. They did their speculating and flipping with hopes that they would get out before it all collapsed.

They focused a lot of their speculation on houses in poor parts of the city because that was where the cheap goods were. They did tons of unpermitted and really shitty work by people who couldn't pound a nail straight if their life depended on it.

May they all rot in what I hope are now shitty lives along with BOA, Wells Fargo, Chase, WAMU/Kerry Killinger, Long Beach Mortgage, etc.
78
76

I don't think we are in disagreement. I was referring to the kind of speculator who maybe stretched the budget and bought their first and only investment property..... and then got WHAMMED. I totally concur with you on the slumlord types who bought multiples, etc.
Peace.
79
Seattle City Councilor and Candidates discuss underwater home ownership, fraudulent foreclosure, the right to protest and more last week in Beacon Hill:

http://www.youtube.com/watch?v=-ALaG6sGo…
81
I Will never forget that day..PHYLLIS WALSH Her body was found on the lawn of her South Seattle home.. the foreclosure mill Vultures are a Seattle Firm on olive way.. Bishop-Marshall & Weible (BMW) with lead attorney Annete Cook.
PHYLLIS WALSH was a NURSE .. Protest groups and SEIU (the nurses union) can not let this story be removed from the internet. the banksters are still trying to sweep this under the rug

the story of PHYLLIS WALSH must live on ... can we please see a family interview and follow up story
82
for those that may have forgotten http://www.rollingstone.com/politics/new…
there are some really uneducated people who read and comment on this thread. cowards hide behind a screen and cyber bully, with nothing better to do than pass judgement and spread poison.
hypocrisy breeds well and strong among the ignorant
83
I live right behind Phyllis Walsh and never knew what happened to her until now, very sad. :(

My parents bought our house in 1969 and we moved in February, 1970, when I was a toddler, so I never knew the older woman that lived behind us. I only knew that she worked at the Skyway Library ever since I could remember until I left for college in 1989.

I came back to live with my widowed mother in 1998 and never even knew that the older woman that lived behind us had a daughter until last summer.

Oddly enough I didn't meet Phyllis until July of 2013. I recall that beautiful July morning distinctly, as I had been out walking my brand new rescue Chihuahua up the street and I noticed what looked like a Chihuahua coming from the other direction, so we met at the crossroads. We introduced ourselves and our chihuahuas and talked a bit, remarking upon the lovely morning, and talking nonstop about our chihuahuas, finally ending with where we lived, and Phyllis laughed and said "oh, you live behind me" and I replied back (laughing) "oh you live behind me". :D Then we parted and I went home to happily impart to my mother that I met the woman that lives behind us, and how nice and kind she was, her eyes sparkling, et al. My mother wondered if perhaps she was the daughter of the librarian whom used to live behind us? That's when I find out that the older woman had a daughter who was around my mother's age. I thought nothing of it until a few days later, as all of a sudden the house behind us was getting a brand new roof and being fixed up and poof it was put up for sale, which struck me as very odd, as I just talked to Phyllis the other week and she never mentioned about moving. This is why it comes as a complete SHOCK to find out what really happened to her! I never even knew, she seemed so happy that morning with her & Arnie, and it makes me think I saw her two days before she died because I recall it was a weekend when I met her, mostly likely Sunday, and she died on a Tuesday.

My prayers go out to Phyllis and her family.

With sincere heartfelt condolences, Nadine & Family
84
To the folks who seem to think Phyllis Walsh was at fault. Please talk to homeowners who have applied for modification, as encouraged by the banks themselves and the government, and found themselves dual tracked into foreclosure. This is planned banking behavior. When I applied in June 2010, I had never been late, wrote to the President and CEO of Bank of America for advice since I couldn't talk to a human being at the modification line. Followed advice by 'go to person' who responded to my letter. 16 months later, after accepting my reduced payments as directed, they started foreclosing. It turns out that the Office of the CEO and President of Bank of America was sold to a third party...see attached link. 45 months later, my health is ruined and I know exactly how Phyllis Walsh felt. Do your research before you blame homeowners.
http://www.bloomberg.com/news/2013-12-16…
85
To the folks who seem to think Phyllis Walsh was at fault. Please talk to homeowners who have applied for modification, as encouraged by the banks themselves and the government, and found themselves dual tracked into foreclosure. This is planned banking behavior. When I applied in June 2010, I had never been late, wrote to the President and CEO of Bank of America for advice since I couldn't talk to a human being at the modification line. Followed advice by 'go to person' who responded to my letter. 16 months later, after accepting my reduced payments as directed, they started foreclosing. It turns out that the Office of the CEO and President of Bank of America was sold to a third party...see attached link. 45 months later, my health is ruined and I know exactly how Phyllis Walsh felt. Do your research before you blame homeowners.
http://www.bloomberg.com/news/2013-12-16…
86
in 2006 I met with CitiResidential`s loan officer in a part in Miami I told him that the banks needed to lower the interest rate, reduce the principal and redo the loan all together, they did nothing. I, in my little way tried very hard to sound an alarm that the foreclosures would cause many people to lose their homes and their lives, no one listened. Here we are 8 yrs later and the foreclosures have only just began.
87
Let me begin by saying how saddened and stunned I am to hear the news of Phyllis Walsh. I recall driving by the old neighborhood last fall and seeing the For Sale sign, and wondering, "what had made Phyllis sell??"

My husband and I lived next door to Phyllis and Gerry for 10 years. They were some of the most frugal and simple folks I've known. We cared for them during Gerry's illness, brought them food, and took them places when their cars weren't running. BUT they gave to us, too! She always shared the bounty from her garden, we traded gardening tools, she was a very well-read person whom I always enjoyed being in conversation with. We were there for Phyllis when Gerry died, after his botched back surgery, and subsequent heart attack. There were no carnival cruises or new cars! This couple had always owned cars that were at least 15 years old, which were unreliable so when Gerry got very sick, and needed to have reliable means to get him to/from his MANY doctor appointments, they decided
to suck it up and buy a "newer" car. It was an 8 year old used Kia Spectra. They were giddy since it was the first time in their married lives they had bought a "newer" car! BTW, they bought that house from her parents. It was the house she grew up in! They took 1 very special "trip of a lifetime" to Tibet back in the late 90's. They loved sharing their pictures and stories about that trip to anyone who'd listen!!! IT was a very special event in their lives. Also, they were artisans. They made handcrafted silver and gemstone jewelry that they sold out of a shop in Issaquah. It was a super swanky shop, and THEY were NOT swanky people, but they made very beautiful jewelry.

I'm posting here because I just don't want anyone to lose sight of how very precious PEOPLE are no matter their mistakes, poor choices, socio-economic status. Phyllis and Gerry were very human people. They loved each other dearly. I'm super duper sad Phyllis felt compelled to end it all that way, yet, it's her style...right down to a note pinned to her shirt! She did it her way. Rest in Peace Phyllis, enjoy your reunion with Ger!

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