Michelle Malkin » Document drop: The truth about ACORN’s foreclosure poster child

Document drop: The truth about ACORN’s foreclosure poster child

By Michelle Malkin • February 23, 2009 10:10 AM

On Feb. 18, I warned about the ACORN civil disobedience mob working in ideological tandem with Barack Obama to bully Washington into passing a massive new foreclosure prevention/mortgage entitlement scheme. On Feb. 20, I noted that ACORN garnered nationwide media attention for breaking and entering into a foreclosed home in Baltimore at 315 South Ellwood Ave. ACORN vows to use “any means necessary” to stop foreclosures. Baltimore police have taken fingerprints at the break-in site and the current owner, William Lane, says he will sue ACORN. The home was sold in June 2008 for $192,000. This morning, ACORN official Louis Beverly will face a burglary charge. Look for the Left to turn him into a martyr.

It is not your home, ACORN.

Here is what the MSM won’t be telling you about the so-called “victim” in that case, ACORN worker Donna Hanks — all based on public records and court documents.

According to real property data search information, Hanks bought the two-story home in the summer of 2001 for $87,000. At some point in the next five years, she re-financed the original home loan for $270,000.

Question: Where did all that money go?

The house initially went into foreclosure proceedings in the spring of 2006. In July 2006, Hanks filed for bankruptcy and agreed to a Chapter 13 plan which was served to the following creditors: Americas Servicing Co, Bank Of America, Chase, Covahey, Boozer, Devan & Dore, and Discover. She agreed to repay $10,500 in arrears, which resulted in a halt to the 2006 foreclosure.

In September 2006, the bankruptcy court ordered Hanks’ employer to deduct $340/month from her salary as a bartender to pay down the debt (total net monthly take home pay of $1,228):

Hanks’ Schedule I showed additional monthly income of $1,625 for a second and third claimed jobs, plus pro-rated tax refund income.

Hanks did not comply with the plan. In December 2007, the servicer issued a notice of default on nearly $7,000 past due.

In February 2008, Baltimore City Circuit Court records show a second foreclosure action was filed.

She had two years to pay what she owed. She failed to comply.

When she told local TV station WJZ that her evil bank raised her mortgage by $300 (”The mortgage went up $300 in one month”), she’s talking about the amount in arrears that she agreed to pay back.

While she was reneging on her mortgage IOUS, she managed to collect rent on her basement (for which she was taken to court) and rack up a criminal record on charges of theft and second degree assault:

In the Huffington Post, ACORN’s Bertha Lewis crowed about the nationwide MSM attention their Baltimore break-in received:

In Baltimore, ACORN member Donna Hanks re-took her home. Foreclosed on last fall, the house has stood empty since then, a stark reminder of the failure of the system. But Donna joined with 30 ACORN Home Defenders to liberate her home from the bank. Her act of civil disobedience was covered by 2 radio stations, 2 TV stations, the Baltimore Sun, and the Huffington Post.

Donna used bolt cutters to break the lock to the door and re-enter the home. Unfortunately, in the six short months since the home was seized, it has been extensively damaged, essentially partially gutted. The toilets are missing, and the upstairs ceiling is badly damaged. The greatest tragedy here is that Donna worked for months with ACORN sister organization ACORN Housing Corporation to try to get the bank to modify the loan so it could be affordable, but they refused, taking the home and now allowing it to be a haven for squatters and a target of looters.

Bullcrap. The house was sold seven months ago after two years of court-negotiated attempts to allow Hanks to dig herself out of her debt hole. The only squatter here is Donna Hanks. The only looters here are the ACORN racketeers. The foreclosure is not the criminal act. This is:

And now you know…the rest of the story.

***

Now, look at this puff piece featuring Hanks in the Washington Post from October 2008. Will the reporter follow up or let the propaganda lie?

Update: Stuart Varney takes on ACORN instigator Bertha Lewis.

Posted in: ACORN Watch, Subprime crisis

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#630532

On February 23rd, 2009 at 1:36 pm, Patronedheart said:

On February 23rd, 2009 at 1:04 pm, Freddy said:
…
What it means is …. when someone else bought a house in that neighborhood for more money than she had paid for hers, she went over to the bank to collect her winnings!

I had to laugh at this, but the sad thing is that some people actually percieve a refi as just that – free money to spend on whatever they want without the repercussions of a payback (since the house is used as collateral).
Idiots.
#630560

On February 23rd, 2009 at 1:52 pm, max said:

this song sums it up
http://www.youtube.com/watch?v=hyipWCVPIeI
#630563

On February 23rd, 2009 at 1:52 pm, rambler said:

Every day the story just keeps getting better. When does ACORN get thrown under the bus? No drama Obama can watch his reelection slipping away…..
#630575

On February 23rd, 2009 at 1:56 pm, sonofdy said:

I would love to see a liberal try to defend this “action”.

Actualy scratch that. Im off to acorn to help me take over some millionaires home. Daddy needs a big screen and a view!!!

looter sonofdy out…
#630596

On February 23rd, 2009 at 2:09 pm, happyscrapper said:

Today at the “fiscal responsibility forum”, Obama said, “We cannot continue to maintain these deficits.” And just last week, he signed the porkulus bill. The man is certifiable. He really thinks he is fooling everyone with his rhetoric because everyone worships him, doncha know.
#630603

On February 23rd, 2009 at 2:13 pm, frostrt said:

Update courtesy of Foxnews:

“This is our house now,” ACORN member Louis Beverly reportedly said after cutting a lock with bolt cutters at the home.

Beverly will be charged with fourth-degree burglary, according to Anthony Guglielmi, a spokesman for the Baltimore Police. Attempts to reach his attorney, Justin Brown, were not immediately successful.

—————————————

Don’t know how serious a charge 4th-degree burglary is, but it’s a start
#630605

On February 23rd, 2009 at 2:16 pm, maurelius said:

She buys a house for $90,000 and then refinances it for $270,000.

Sometime ago I read about scams (out & out fraud) that this sounds like. I am not talking about their attempts to steal back the house either. I am talking about refinancing a house for way more than it is worth. It involves collusion of an assessor and perhaps even the lender.

Walang hiya si Donna talaga e!
#630608

On February 23rd, 2009 at 2:17 pm, sonofdy said:

Louis Beverly, You do know what stealing is right?????
#630612

On February 23rd, 2009 at 2:20 pm, Leatherneck said:

Within BLT, and Marxism ideology, there is no intestinal fortitude.

ACORN, and CAIR are almost as low as child rapists. Yea, I threw CAIR into my rant.

Over.
#630622

On February 23rd, 2009 at 2:29 pm, Misscheryl said:

I honestly feel this sort of thing does more for conservatism than anything else could have. Obama, stimulus package, Acorn – all of this nonsense has helped our cause tremendously.
#630625

On February 23rd, 2009 at 2:30 pm, sonofdy said:

And its driving the markets nuts!!!

At this rate we will be below 7000 by the end of the week!!!

HECKOFAJOB OBAMA!!!!
#630635

On February 23rd, 2009 at 2:40 pm, vargas said:

Good work MM. I know most of my comments on here are disagreeing with you, but this is truly fine investigative work, and an important story to tell. Well done.
#630661

On February 23rd, 2009 at 2:59 pm, scituate_tgr said:

Fantastic reporting MM!
——————————–
Below 7000 is Bush’s fault – Odumbo “inherited” this problem of failed republican policy over the past eight years…he said so himself.

/sarc off
#630662

On February 23rd, 2009 at 2:59 pm, mattm said:

Great job MM. Since the break in to someone’s (not the bank)house was caught on tape Donna and the ACORN person involved need to be given a nice home, approximately 8×10 with a little tiny window to the outside.
#630681

On February 23rd, 2009 at 3:14 pm, USN RET said:

So in a couple of days Michelle will have a new hate mail post courtesy of left wing nuts outraged by her finding out the truth.
#630686

On February 23rd, 2009 at 3:17 pm, Flyoverman said:

On February 23rd, 2009 at 2:59 pm, mattm said:
Great job MM. Since the break in to someone’s (not the bank)house was caught on tape Donna and the ACORN person involved need to be given a nice home, approximately 8×10 with a little tiny window to the outside.

You got your wish mattm. Posted on Drudge.

http://www.foxnews.com/story/0,2933,498669,00.html
#630690

On February 23rd, 2009 at 3:21 pm, Ed Mahmoud abu al-Kahoul said:

ACORN is the shock troops, the street rabble rousers of the Obama revolution. The Sturmabteilung, as it were.
#630698

On February 23rd, 2009 at 3:29 pm, Ed Mahmoud abu al-Kahoul said:

On February 23rd, 2009 at 12:30 pm, PKAmmoTroop said:
Just wondering what’s next on their list of tricks. Burning the Reichstag White House?

A failed ‘assasination’ attempt on Dear Leader would ‘justify’ all kinds of new domestic spying measures, the types of which the LLL imagined the Patriot Act to be in its worst incarnations. New gun control regulations, perhaps. Recall how Clinton blamed Limbaugh after the nutbag McVeigh bombed the Murrah Federal Building. It could lay the groundwork for an 22 hour/day local content rule (except for sports), killing AM talk radio.

Twofer for Obama, if the ‘failed’ “assasination” took out Sloe Joe, the embarrasing VP, and maybe Her Thighness, his potential rival inside the party.

Would Obama’s people do this? Let us think about the Fresh Prince of Bill Ayers. One of his mentors, Bernadine Dohrn, is a leading person of interest in two different San Francisco cop killings. Bill Ayers himself discussed having to liquidate unreformed capitalists after the revolution, and, of course, Ayers tried (and failed spectacularly) to build a bomb to kill dozens on enlisted men and NCOs and their dates at a Fort Dix dance, so would Obama kill people close to him for political gain….well, I just don’t know.
#630714

On February 23rd, 2009 at 3:37 pm, torabora said:

Where are the trolls?

crickets

chirping
#630720

On February 23rd, 2009 at 3:45 pm, wighttrasch said:

I wondered about the trolls in other threads too…but I just figured they were out helping ACORN or feeding the homeless, donating their time to rebuild New Orleans, or giving lgm a ride to work–you know; the stuff they always tell us that we don’t do…
#630724

On February 23rd, 2009 at 3:46 pm, katablog said:

To be fair, they will need the free broadband when they “visit” their new government physician in Bolivia or Turkey. (Choice!).

Love it. This will save so much money. I expect the government will at some point issue cameras and we can just point to where it hurts and the doctor on the other end can submit his/her diagnosis.

Apparently some of you are unaware at how much property values rose starting about 1995 through 2003 in some areas – which is exactly why we are where we are today. Values rose tremendously in places like CA, AZ, WA, TN, CO and FL (I’m sure there were many other places too) because everyone could suddenly get a loan – hence more demand than supply. In addition, the Japanese were buying up a lot of property along the west coast.

I don’t know where Hanks lived or the RE Market there, but yes, because of the demand, $80,000 houses actually rose to $300,000 houses in some cases.
#630725

On February 23rd, 2009 at 3:47 pm, Common Sense said:

However, if my house greatly increased in value, you can bet your buns that the first thing I would not do is run back to the bank and ask them to increase the mortgage amount!!!

People do this all the time to finance home improvements, buy cars, or go on vacation. Not usually for 3 times the value of the house though. It’s taking the equity out of the house, you can do it with a refinance as well as a line of credit.
#630736

On February 23rd, 2009 at 3:57 pm, Misscheryl said:

:37 pm, torabora said:
Where are the trolls?

school has let out yet.
#630739

On February 23rd, 2009 at 3:58 pm, Misscheryl said:

school hasn’t let out yet…

(I was distracted..sorry)
#630746

On February 23rd, 2009 at 4:03 pm, sonofdy said:

However, if my house greatly increased in value, you can bet your buns that the first thing I would not do is run back to the bank and ask them to increase the mortgage amount!!!

Unless it increased the value of the house.

Just saying…
#630832

On February 23rd, 2009 at 4:56 pm, AlohaGuy said:

Where are the trolls?

Nirvana. The Obamas are warm and fuzzy according to Kathleen Parker and that’s all they need…
#630900

On February 23rd, 2009 at 5:55 pm, HappyGene said:

I’m in my 50’s and my wife and I have owned several homes (ex-military). We’ve been underwater at some point for each one. We only sold one at a loss, the others we sold at a profit or rented out for as long as 15 years (curse you San Antonio). When we moved to Virginia the house payments were the same size as my paycheck. We put a full 20% down on our most recent house, and we have just gone underwater again. It still works just fine as a house. It is a little easier to keep the credit cards in my pocket. I hope we don’t get divorced or disabled now, but I have health and disability insurance. My wife was daft enough to marry me so the marriage is uninsurable but reasonably strong. The point of all this is just to ask “what is so unusual about being up-side down on a mortgage?”
Is the answer to ban home equity loans or tax the money taken out as earned income?
#630912

On February 23rd, 2009 at 6:09 pm, right_on said:

Trespassing? I think not. It is a clear case of burglary, and conspiracy to commit burglary.

Burglary: The entering of any building with the intent to commit any crime (in this case, trespassing.)

Conspiracy: When two or more persons conspire/plan to commit any crime, and said plan is put into action.

It’s too bad, however, that nothing will be done to these people…their lawlessness will continue until they go too far, and someone gets killed.
#630977

On February 23rd, 2009 at 7:05 pm, Bogtrotter said:

A few years ago I bought a very modest home for 87k, the market was headed up. A few years later it had increased a good deal in value and I took out a home equity loan for 10k after figuring what my plans would take to accomplish and put the money into concrete driveways (I use a wheelchair, dirt & gravel are my enemy), fencing, flooring, and a new a/c unit. What a chump I was! I could have gotten much, much more, blown the money in Vegas, cried poverty, rolled away and moved into Section 8 housing on all of your dime(s). Damn this pesky sense of right & wrong…..it’s holding me back. Guess I am stuck paying my mortgage every month.
#630981

On February 23rd, 2009 at 7:09 pm, Chief RZ said:

Wasted almost $200,000 of my taxpayer money. Broke into a private home. Felons must be prosecuted. We must fight these terrorists. No negotiations with terrorists.
#630995

On February 23rd, 2009 at 7:25 pm, Dimsdale said:

Note the smirk on her face as she is allowed to trespass by her ACORN sponsors.

Obviously someone who knows she has nothing to fear from the former ACORN mouthpiece, now president.
#631004

On February 23rd, 2009 at 7:33 pm, NestingHawk said:

Patronedheart,
Commercials for that kind of thing try to make it sound as though it’s exactly that; free money. They don’t mention the “payback bit” as far as I remember the ones I’ve heard.
There used to be one on the radio where I live encouraging people to take out loans, I think on their cars, for things like a new fishing pole, flowers for their dates, new dresses…I was driving, so banging my head against the dashboard would not have been safe.
#631032

On February 23rd, 2009 at 8:08 pm, bigboy said:

Orangutans!!! No more more chimps or gorillas…if you need a monkey, use the old man of Borneo! Being as how he’s profoundly red-haired, the only real class of people that can be offended are the Scots…and they’re a reasonably lot.
#631042

On February 23rd, 2009 at 8:18 pm, Helene said:

Sigh…
Before Christmas I found these really, really cool shoes. $150 and worth every penny.
I saw them on sale last weekend for $50 and tried to get the shoe store to give me $100 back. Jeepers…just because I wore them and nicked them up, should not matter. I just want the government or someone to give me the $100 difference. After all, I’m upside on my shoes.
Sigh… Help Obama! Help Obama….
#631075

On February 23rd, 2009 at 8:54 pm, karenhasfreedom said:

Wow, just wow, she pulled almost $200K in equity “profit” from this house and STILL went bankrupt???!!!!

The silence about where that money went to is DEAFENING!!!!!!!
#631089

On February 23rd, 2009 at 9:12 pm, Republicanvet said:

So the banks are bad because they are being bailed out, but the banks are bad because they try uphold contracts to keep from having to be bailed out?
#631096

On February 23rd, 2009 at 9:20 pm, Republicanvet said:

On February 23rd, 2009 at 10:27 am, DagneyT said:

WT, Our net worth has been cut in half in less than a year. Many of my younger friends have seen their 401K’s go from healthy to dead! All of it due to the “you owe me” mentality of the left. Between Fwank & Dudd, they’ve man-handled the banks by twisting their proverbial arms to take loans that never should have been made, yet they refuse to take on their share of responsibility, nor has ACORN! They are disgusting pukes, and those who vote for them should be embarrassed. The idea that between 2 & 4 billion$s of OUR MONEY are going to be handed to the ACORN gangsters makes my head explode, and blood run out of my eyeballs!

Same here DagneyT. I guess the only thing I can be thankful for is that I am not a year from retirement and wondering where my investments went.

I wonder how many are in that position. I’m sure the media will get right on tracking down those people and asking them what they will do now that their retirement nest egg is gone.
#631119

On February 23rd, 2009 at 10:13 pm, Republicanvet said:

On February 23rd, 2009 at 10:35 am, bloghooligan said:

OK…the Donna Hanks I saw on TV was decidedly black. In those court papers, she’s white, indian, and arab…same person?

Depends on which precinct shes voting in.
#631132

On February 23rd, 2009 at 10:39 pm, maurelius said:

#104 Katablog,

Yeah, I know that there was a crazy rise in real estate values during the run up to the bubble burst. I heard a number of people on call in shows wondering what to do with the proceeds after doubling their money in one year (these were in the hottest markets e.g. beachfront Florida and the like).

Still, I have heard of swindles & fraudulent deals that work a lot like what this ACORN nut undertook. I just can’t fathom that a banker would refinance a house for something like 300% of its original purpose price even in the boomiest times, DESPITE, its “value”. I can see that happening if someone posing as a legitimate buyer (or a legitimate legitimate buyer) is offering the amount.

#112 Bogtrotter, has it figured out.

#110 HappyGene, yeah a lot is being made of this upside down mortgage bit of late. The only people who should be concerned of that are investors, those looking to refinance, & those who HAVE to sell. Otherwise, the home is just the same as before, no?
#631142

On February 23rd, 2009 at 10:55 pm, ITookTheRedPill said:

Alan Keyes on Obama

The whole 4 minutes is worth watching, but relevant to the topic of this thread, he discusses Obama’s mortgage plan starting around the 2:47 mark.
#631246

On February 24th, 2009 at 5:33 am, Bogtrotter said:

I read this story , then went to a few prominant leftist sites to see what they are saying. I was amazed to see that at Huff Post the comments, with the exception of two, were all negative toward ACORN. At DU I could find nothing on the story, they are avoiding it like the plague. That is normal, they do not discuss anything that could prove embarressing to them.
#631340

On February 24th, 2009 at 9:38 am, wighttrasch said:

only real class of people that can be offended are the Scots…and they’re a reasonably lot.

Och! That’ll be the fish that brrrrrrrrreaks the dooogie’s back!

I kenna doo it–I don’t have enooof power!

Just kidding–coming from a family of redheads and of Scottish descent, I am not offended, as the Scots don’t look like orangs.