Judge: Deutsche Bank does “crappy work” on US foreclosures

And not just in Brooklyn.  Across the US homeowners are crying foul over Deutsche Bank's substandard practices.  In Los Angeles a young student, Zenat Ali, dropped out of medical school to help her mother fight a foreclosure notice from Deutsche Bank:

In an order filed Tuesday, Los Angeles County Superior Court Judge R. Bruce Minto said the family had "shown a probability of success" in its claim that fouled-up paperwork invalidated the transfer of the mortgage in 2006 when it was sold in a bundle of loans that were used to create mortgage-backed securities.

If that's true, Deutsche Bank — the trustee for the pool of loans where the Ali mortgage wound up — might not have been legally entitled to foreclose on the Ali loan, as the big German bank did last December.

When Deutsche Bank does succeed in foreclosing and asssuming ownership of a proprety, it is often a terrible landlord: 

For 22 days earlier this year, Gilbert Aguilar lived without gas and electricity in his one-bedroom rental apartment here in East Oakland. The building went into foreclosure and the bank (Deutsche Bank) that took it over was his new landlord.

It comes as no surprise that foreclosures are exacting a terrible toll on the health of millions of Americans:

• Almost one-third of tenants in foreclosed properties said they were living in sub-standard conditions with mold, pests and utility shut-offs.

• Rates of stress, depression and anxiety were twice as high for foreclosed residents as others.

• Nearly 90 percent of foreclosed residents were struggling to make ends meet. Many have to decide whether to pay for food, health care or utility bills.

• The foreclosure rate is twice as high among the unemployed as those working full-time or part-time.