Land Rights Network
American Land Rights Association
PO Box 400 - Battle Ground, WA 98604
Phone: 360-687-3087 - Fax: 360-687-2973
E-mail: alra@pacifier.com
Web Address: http://www.landrights.org
Legislative Office: 507 Seward Square SE - Washington, DC 20003

Part Two - FDIC Foreclosure Victim Coalition Forming

Here are e-mail addresses for Senators and Congressmen
To Help Stop Foreclosures

-----Updated -Urgent Action—You Could Face FDIC & Lennar Foreclosure

Unwitting Landowner Bank Closure Victims Face FDIC Foreclosures.
FDIC & Partner Lennar Corp Foreclose On Thousands of Bank Closure Victims.

-----Attention—FDIC Banking Closure And Foreclosure Project.

You can help: Call and write your Congressman and Senator today. 

-----Please also send a letter to the Members of the Senate Banking Committee and the House Financial Services Committee. We have listed their names, e-mail and fax contacts below. 

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Here is the personal letter from a victim of the FDIC Lennar foreclosure process, John Fazzolari to Sheila Bair, head of the FDIC (Federal Deposit Insurance Corporation.

March 14, 2011

To: Ms. Sheila Bair, Chairman of the Federal Deposit Insurance Corporation (FDIC)

Fr: John Fazzolari, Fazzolari Custom Homes & Renovations

Dear Ms. Bair

In January of 2010 I wrote a letter to my Senator Patty Murray, asking for help in a matter concerning the closing of the Bank of Clark County in Vancouver, Washington, and what I thought was very poor management of the process by the FDIC. I had three loans with the bank, and none of my loans were in default. I have attached a copy of that letter, as well as the response by the FDIC. 

Unfortunately for me and my community, as well as I am sure countless others around the country, my predictions of what the outcome of the way your agency would handle the loans we had with the Bank of Clark County would prove extremely accurate. The steps your agency has taken have been extremely damaging to our region financially. 

You have shut down projects, eliminated jobs, lowered property values beyond what the already poor economy was doing, and stolen years and years of personal sacrifice, hard work, and small business investment…and turned it ALL over to a large well connected east coast corporation interested only in maximizing their financial gain from the “paper” they now own. 

Ms. Bair – the FDIC and the Federal Government should be ASHAMED of what has been done to these small communities and the people in it. Remember – we had not defaulted on our loans – yet the FDIC prevented us from moving forward on our projects and essentially stopped our business in its tracks. 

And all this happened because a bank in the community we live in was over leveraged. The bankers have moved on, but the small business people and individuals of this community are still here trying to put our community back together, while at the same time the well-connected large financial corporation that is benefiting from this is still taking what they can – sound familiar? See financial bailouts 2008.

Since I wrote my letter and received your agencies response the loans have been handed over to RIALTO Corporation, a creation of Lennar Homes of Florida. Is RIALTO that well-connected east coast Corporation I referred to in my letter in January 2010? 

If upping political contributions in 2008 to 2009 from around $200,000 to just over $1.2 million (500% increase) is being well connected, if being able to work out a deal with the FDIC in 2010 to hand RIALTO $3.05B in loans to manage and give them 40% ownership in those loans for a $200M investment, and if getting a $700M interest free loan from the FDIC is being well connected – then I would say yes, that is them. 

What is even more disturbing is that Lennar Corporation has a financial arm that they use to help their customers finance the homes they buy from Lennar. That financial arm is one of the many companies that pushed the risky mortgage loans on a large scale in the late 90’s and early 2000’s – which are largely at fault for the financial and real estate crisis we have faced in this country for the past few years. And now they are being rewarded. 

At one point I had hoped that working with RIALTO Corporation would provide the ability to work out some type of manageable arrangement that the FDIC through all its regulation could not do. And I suppose I still hold out some hope of that. But the experience of my counterparts tells me that is highly unlikely. 

Trying to work with RIALTO is difficult to say the least. First they require me to sign an agreement that is very one sided and tilts the balance of discussion all in their favor. Every single person that I have spoken to that has signed this pre-negotiation agreement has indicated that it was a mistake and that RIALTO has used it against them later. 

Secondly – communication with them is very difficult. I initially contacted them in March of 2010, only for it to take 3 weeks to receive a return call. I then put together a work out plan that I submitted it to my contact at RIALTO and I received no contact in return. After calling repeatedly I found that my contact was no longer with the company, and that my loans were turned over to another person. 

It took this new contact more than 3 months to contact me back, during which time I called and e-mailed repeatedly, and also had sales offers on the properties that I owned that were never reviewed. Recently I asked for their pre-negotiation contract to be modified – and they promised me it would and was – only to find out they just moved the language I wanted changed to another part of the contract. I call that deceptive. I do not trust RIALTO.

Ms. Bair – I could go on in detail of how all this is being handled by RIALTO…and if you would like me to I will. I document every call, mailing and e-mail. But that is not what this letter is about. This letter is to ask for you to do what is right. I realize your agency could not have foreseen all of what was to unfold over the past few years, and this has been a very difficult time for all of us. But the only thing worse than doing what the FDIC has already done through this process, is to say what’s done is done and sweep it under the rug. 

If the job of the FDIC is to ensure the highest rate of return – why would you hand over 40% of everything without first inquiring with people like me if we can get you a greater return? 

Interestingly enough, I had submitted offers that your agency rejected that were for more than this. And you have not and will not maximize your return the way the FDIC, Lennar and RIALTO are handling this. I can guarantee that you will however destroy the lives of so many small business people and individuals in this community.

From Washington D.C. and the offices of Lennar Homes and RIALTO Corporations you may not see the actual damage that this has done, but I do. I see it every day from my home office and truck. 

While those well-connected are having expensive lunches and catered meetings in their nice offices determining what more they can squeeze from Clark County, Washington, I work out of my home and truck, bringing my sack lunch to work that my wife packed me along with the lunch she made for my children. 

I don’t trade paper that has the names of people I do not know for money. I pick up a pencil, a shovel, a broom, and a paintbrush – whatever it takes. I watch first hand as people I used to employ are laid off, forced to sell or move out of their homes, and uproot their families. 

But perhaps that is because of the macro approach you have used to look at this issue. We are just carnage in the war on the economy, and we are the remains of a plan gone wrong. Take a hard look at what has occurred. You are not getting the most return for your money, you are hindering the economy, and you have utilized a process that rewards those that are wealthy and well-connected and punishes those that simply took out a loan with the wrong bank. 

Ms. Bair – I am asking you to stop what is happening and make it right. The time is now.

Sincerely,

John A. Fazzolari – Fazzolari Custom Homes & Renovations


Addendum: 

While it may be too late, I do think it is important to point out a few additional items, specifically the response of the FDIC to my original letter, and the incorrect information contained within your response, as well as an update on my personal financial situation. My final list really sums up everything I have been going through since the Bank of Clark County was closed by the FDIC.

First and foremost – the FDIC response to my letter in early 2010 indicates that I stopped the completion of a sale of one of my properties because I would not agree to a 1099 for the part of the loan that was being forgiven. Nothing could be further from the truth. In fact I agreed wholeheartedly with the 1099 and always said I would. After all, there is no difference between me receiving an offer that would pay off the entire balance of my loan and receiving a short sale offer and a 1099.

Initially I was told the offer I received would be accepted and I would receive a 1099 for the short portion of the sale. The FDIC, through its servicer then came back and was requiring me to carry a note for the difference. That is what I was not agreeable to and why I denied the offer. Ironically, this offer was for just over 65% of the value of the note, more than the FDIC will ever receive with the agreement made with Lennar Homes and RIALTO Corp.

Secondly – in my last letter I shared how I was now trying to work through a loan modification with my bank on my personal residence. While the bank I have my mortgage with has just over $29B in Federal funds at their disposal, they are currently denying my modification because it does not work within their 4% minimum interest rate guideline…a minimum they previously told me was 2% that I do qualify for. 

This after 24 months of being told there is a great chance of us receiving a loan modification so we kept down this path, only to ruin our credit and find out they are unwilling to work with us. Now – what at first would have been a simple home sale has turned into me possibly losing my home to foreclosure and ruining my credit, all because I contacted my bank and shared with them the uncertainty of my financial future when the Bank of Clark County was closed.

Thirdly – The length of time this has taken is taking immeasurable tolls on our financial life. What was a successful subdivision with homes being built and profit being made, is now, absent of a different solution from the FDIC, destined for huge losses and failure. 

Tax burdens that would have been relieved long ago with the properties being disposed of are being increased due to the length of this process. I have had to spend the last 6 months working with the IRS to work out a payment plan on taxes that I will not owe once this is all wrapped up – but until then the law says I do. 

Ironically – even the IRS has stated to me that what is happening to us in regards to the closure of the Bank of Clark County and the FDIC is terrible, and the sooner I get it wrapped up the sooner I will be relieved of my tax burden.

Fourth – Through this all, one thing has remained constant…none of my clients, subcontractors or suppliers have had to feel the effect of this problem. Their projects have all been completed, their bills paid, and they will work with me long into the future. 

Our business is growing and has a bright future – my personal financial situation however may take a few bumps and bruises along the way. But I know in the long term that is the only way this will work.

So in a nutshell: 

1) The FDIC shut down my bank and shut off my business as it relates to loans I had with my bank because the bank failed – not me.

2) The IRS is asking me for money that I ultimately will not owe them.

3) I give this money to the IRS and the Federal Government then gives it to large banks and well-connected corporations.

4) The large banks on my home loan has received $29B in Federal aid (my tax money) that they have not yet paid back, and is unwilling to work with me to keep me in my home. They would rather see my home taken away from me and foreclosed on than me stay in the home.

5) That same large bank that my mortgage is with contacted me last week because they want to know if they can introduce their products to my clients that may need mortgage loans! That’s irony!

6) The corporation that lined the pockets of my government was given a sweetheart deal to go after everything I and others in this community have worked for so many years. A deal that was not available or afforded to me…even if I would have returned more to the FDIC.

7) Through it all, as crazy as it sounds, I will persevere…and this will only slightly change who I am!


And did I mention – this all happened because I chose the wrong bank to take loans with, not because I had defaulted on my loans.

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Here are the Congressmen and Senators you need to write:

US House of Representatives Financial Services Committee 

Republicans

Michele Bachmann (R-MN) Fax (202) 225-6475 Email: chase.kroll@mail.house.gov
Spencer Bachus (R-AL) Fax (202) 225-2082 Email: warren.tryon@mail.house.gov
Judy Biggert (R-IL) Fax (202) 225-9420 Email: kathleen.lydon@mail.house.gov
John Campbell III (R-CA) Fax (202) 225-9177 Email: wes.mcclelland@mail.house.gov
Quico Canseco (R-TX) Fax (202) 225-2237 Email: scott.yeldell@mail.house.gov
Shelley Moore Capito (R-WV) Fax (202) 225-7856 Email: aaron.sporck@mail.house.gov
Bob Dold (R-IL) Fax (202) 225-0837 Email: eric.burgeson@mail.house.gov
Sean Duffy (R-WI) Fax (202) 225-3240 Email: matt.seaholm@mail.house.gov
Mike Fitzpatrick (R-PA) Fax (202) 225-9511 Email: patrick.lyden@mail.house.gov
Scott Garrett (R-NJ) Fax (202) 225-9048 Email: amy.smith@mail.house.gov
Michael Grimm (R-NY) Fax (202) 226-1272 Email: rich.hoffmann@mail.house.gov
Nan Hayworth (R-NY) Fax (202) 225-3289 Email: jonathan.day@mail.house.gov
Jeb Hensarling (R-TX) Fax (202) 226-4888 Email: ed.skala@mail.house.gov
Bill Huizenga (R-MI) Fax (202) 226-0779 Email: marliss.mcmanus@mail.house.gov
Robert Hurt (R-VA) Fax (202) 225-5681 Email: jerr.rosenbaum@mail.house.gov
Walter Jones (R-NC) Fax (202) 225-3286 Email: joshua.bowlen@mail.house.gov
Peter King (R-NY) Fax (202) 226-2279 Email: kevin.fogarty@mail.house.gov
Frank Lucas (R-OK) Fax (202) 225-8698 Email: courtney.box@mail.house.gov
Blaine Luetkemeyer (R-MO) Fax (202) 225-5712 Email: chris.brown@mail.house.gov
Donald Manzullo (R-IL) Fax (202) 225-5284 Email: adam.magary@mail.house.gov
Kenny Marchant (R-TX) Fax (202) 225-0074 Email: scott.cunningham@mail.house.gov
Kevin McCarthy (R-CA) Fax (202) 225-2908 Email: shelby.hagenauer@mail.house.gov
Thaddeus McCotter (R-MI) Fax (202) 225-2667 Email: arthur.suchorzewski@mail.house.gov
Patrick McHenry (R-NC) Fax (202) 225-0316 Email: jennifer.flitton@mail.house.gov
Gary Miller (R-CA) Fax (202) 226-2962 Email: john.rothrock@mail.house.gov
Randy Neugebauer (R-TX) Fax (202)225-9615 Email: cliff.roberti@mail.house.gov
Ron Paul (R-TX) Email: paulmartin.foss@mail.house.gov
Steve Pearce (R-NM) Fax (202) 225-9599 Email: kate.schmucker@mail.house.gov
William Posey (R-FL) Fax (202)225-3516 Email: nicole.mccleary@mail.house.gov
Jim Renacci (R-OH) Fax (202) 225-3059 Email: brian.werstler@mail.house.gov
Ed Royce (R-CA) Fax (202) 226-0335 Email: michael.ahern@mail.house.gov
David Schweikert (R-AZ) Fax (202) 225-3263 Email: matthew.tully@mail.house.gov
Steve Stivers (R-OH) Fax (202) 225-3529 Email: marybeth.carozza@mail.house.gov
Lynn Westmoreland (R-GA) Fax (202) 225-2515 Email: kevin.doran@mail.house.gov

Democrats

Gary Ackerman (D-NY) Fax (202) 225-1589 Email: jedd.moskowitz@mail.house.gov
Joe Baca (D-CA) Fax (202) 225-8671 Email: john.cummins@mail.house.gov
Michael Capuano (D-MA) Fax (202) 225-9322 Email: noelle.melton@mail.house.gov
John Carney (D-DE) Fax (202) 225-2291 Email: elizabeth.hart@mail.house.gov
Andre Carson (D-IN) Fax (202) 225-5633 Email: nida.zaman@mail.house.gov
William Lacy Clay (D-MO) Fax (202)226-3717 Email: richard.pecantte@mail.house.gov
Emanuel Cleaver (D-MO) Fax (202) 225-4403 Email: cassandra.young@mail.house.gov
Joe Donnelly (D-IN) Fax (202) 226-6798 Email: jessica.mcewen@mail.house.gov
Keith Ellison (D-MN) Fax (202) 225-4886 Email: karen.johnson@mail.house.gov
Barney Frank (D-MA) Fax (202) 225-0182 Email: bruno.freitas@mail.house.gov
Al Green (D-TX) Fax (202) 225-2947 Email: gregg.orton@mail.house.gov
Luis Gutierrez (D-IL) Fax (202) 225-7810 Email: evelyn.rodriguez@mail.house.gov
Jim Himes (D-CT) Fax (202) 225-9629 Email: brian.kelly2@mail.house.gov
Ruben Hinojosa (D-TX) Fax (202) 225-5688 Email: greg.davis@mail.house.gov
Stephen Lynch (D-MA) Fax (202) 225-3984 Email: cara.camacho@mail.house.gov
Carolyn Maloney (D-NY) Fax (202) 225-4709 Email: kristin.richardson@mail.house.gov
Carolyn McCarthy (D-NY) Fax (202) 225-5758 Email: georgette.sierra@mail.house.gov
Gregory Meeks (D-NY) Fax (202) 226-4169 Email: milan.dalal@mail.house.gov
Brad Miller (D-NC) Fax (202) 225-0181 Email: corey.frayer@mail.house.gov
Gwendolynne Moore (D-WI) Fax (202) 225-8135 Email: andrew.stevens@mail.house.gov
Edwin Perlmutter (D-CO) Fax (202) 225-5278 Email: amanda.slater@mail.house.gov
Gary Peters (D-MI) Fax (202) 226-2356 Email: jonathan.smith@mail.house.gov
David Scott (D-GA) Fax (202) 225-4628 Email: alysson.vogt@mail.house.gov
Brad Sherman (D-CA) Fax (202) 225-5879 Email: rebecca.korman@mail.house.gov
Nydia Velazquez (D-NY) Fax (202) 226-0327 Email: aixa.aleman-diaz@mail.house.gov
Maxine Waters (D-CA) Fax (202) 225-7864 Email: kathleen.sengstock@mail.house.gov
Melvin Watt (D-NC) Fax (202) 225-1512 Email: hilary.west@mail.house.gov

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US Senate Banking Committee

Republicans

Bob Corker (R-TN) Fax (202) 228-0566 Email: michael_bright@corker.senate.gov
Michael Crapo (R-ID) Fax (202) 228-1375 Email: gregg_richard@crapo.senate.gov
Jim De Mint (R-SC) Fax (202) 228-5143 Email: jeff_murray@demint.senate.gov
Michael Johanns (R-NE) Fax (202) 228-0436 Email: sarah_novascone@johanns.senate.gov
Mark Kirk (R-IL) Fax (202) 228-3333 Email: lester_munson@kirk.senate.gov
Jerry Moran (R-KS) Fax (202) 228-1265 Email: alex_richard@moran.senate.gov
Richard Shelby (R-AL) Fax (202) 224-3416 Email: graham_smith@shelby.senate.gov
Pat Toomey (R-PA) Fax (202) 228-1229 Email: christopher_gahan@toomey.senate.gov
David Vitter (R-LA) Fax (202) 228-5061 Email: tonya_newman@vitter.senate.gov
Roger Wicker (R-MS) Fax (202) 228-0378 Email: emily_ferris@wicker.senate.gov

Democrats

Daniel Akaka (D-HI) Fax (202) 224-2126 Email: stacey_wong@akaka.senate.gov
Mike Bennet (D-CO) Fax (202) 228-5036 Email: brian_appel@bennet.senate.gov
Sherrod Brown (D-OH) Fax (202) 228-6321 Email: graham_steele@brown.senate.gov
Kay Hagan (D-NC) Fax (202) 228-2563 Email: andrew_devlin@hagan.senate.gov
Tim Johnson (D-SD) Fax (202) 228-5765 Email: todd_stubbendieck@johnson.senate.gov
Herb Kohl (D-WI) Fax (202)224-9787 Email: karolina_arias@kohl.senate.gov
Robert Menendez (D-NJ) Fax (202) 228-2197 Email: michael_passante@menendez.senate.gov
Jeff Merkley (D-OR) Fax (202) 228-3997 Email: michael_zamore@merkley.senate.gov
Jack Reed (D-RI) Fax (202) 224-4680 Email: kara_stein@reed.senate.gov
Charles Schumer (D-NY) Fax (202) 228-3027 Email: jonah_crane@schumer.senate.gov
Jon Tester (D-MT) Fax (202) 224-8594 Email: alison_odonnell@tester.senate.gov
Mark Robert Warner (D-VA) Fax (202) 224-6295 Email: nathan_steinwald@warner.senate.gov


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