Tuesday, January 12, 2010

An open letter to Seth Waugh, Deutsche Bank

Seth Waugh
Deutsche Bank AG
60 Wall Street
NEW YORK, NY 10005

Mr. Waugh:

I am writing to call your attention to a position being taken on behalf of Deutsche Bank that represents a troubling example of how financial institutions can engage in socially irresponsible practices that promote home foreclosures. In this matter, DB is being represented by GMAC as the investor in a second mortgage on a home that is involved in a short sale transaction with Bank of America.

There is no equity in the home and the owners have fallen deeply into financial ruin. Yet GMAC is obstructing the short sale by demanding an unreasonable payment for releasing the lien. GMAC will act as a spoiler -- forcing a foreclosure that will in not in any way benefit Deutsche Bank or its shareholders, because Deutsche Bank will recover nothing in the foreclosure.

[I then go into the gory details....from which I will spare you, dear reader]

It is widely acknowledged that foreclosures promote neighborhood deterioration and further destroy home values. It is national policy to work to prevent foreclosure, and I'm sure it is the publicly stated position of Deutsche Bank that foreclosure should be averted if possible. The Treasury Dept. has formulated rules governing short sales, to take effect in a couple of months, that stipulate a $3,000 standard payoff to the second mortgage holder in short sales.

I hope you will help me resolve this matter in a way that will best serve both your shareholders and the public interest. I have filed authorizations from the homeowner and the credit card holder that give the bank permission to discussion this matter.

[more gory details]

I have written to you in hope that your office can intervene constructively in the case. I would prefer to resolve this by working cooperatively with Deutsche Bank, rather than to escalate my grievance and bringing it to the attention of my congressmen, Senators, and regulatory officials at the Federal Reserve and Treasury Dept.

1 comment:

  1. Very well written. Did you receive a response and were you able to help the client?