Foreclosure and Politics

We have an odd sort of political system in practice and maybe in design. The founders assumed that we would be distracted most of the time and that those most adept at distracting us would assume power. I address here those people who have an interest in the outcome of the foreclosure mess, whether they are in foreclosure, have a family member in foreclosure or just have an opinion about it.

We could, if we wanted to, find the things we all agree about regardless of political ideology. For example, most of us would agree that bringing the housing mess to an end would be beneficial to the nation, the economy and therefore to oursselves nd our loved ones.  We could agree that the least number of people as possible should be hurt and that the taxpayer cost of bringing this to an end should be minimized as much as possible. And we could agree that the foreclosure mess and the investor/financial sector side is causing us all problems. Perhaps the readers could submit other areas of agreement, regardless of political ideology or party affiliation.

My perception is that competing ideologies prevents us from perceiving and considering the facts. For example, many readers here would argue that the entire financial services industry is based on something close to evil intent (greed) when in fact it is there to provide liquidity to the marketplace — the keystone of any succesful economy. The worst of the players certainly knew what they were doing and should be punished. The horror stories of abuses by financial insitutions are matched by horror stories of scam artists who created dozens and sometimes hundreds of fictitious transactions.

Those with the most power and money are usually closest to the microphone, so the story we hear is the one they spin out to the public, in endless loops, is that borrowers suddenly set out en masse to defraud innocent lenders. I think we have shown here that this was not a case of millions of people conspiring to short-cut their way to the American Dream of homeownership (refi’s outnumbered purchases) but rather a case where Wall Street was too successful at selling mortgage backed securities, created a fund of $13 trillion dollars (almost the same amount as the total gross domestic production of the entire U.S. economy)and could only justify their historic and unprecedented fees if they moved the money. For that they needed borrower signatures, even if some were forgeries. So it wasn’t borrowers suddenly increasing demand for money or housing, it as money suddenly increasing demand for borrowers. The facts show that very clearly.

Yet all sides of the multifaceted issues are correct when they focus on any one link of the “chain of blame.” there is plenty to go around. The question comes down to whether you want to spend time on blaming someone or if you want to spend time and effort fixing the PRESENT problem (as opposed to most proposals that seek to fix future problems).

For that, foreclosures must stop. It is ripping at the fabric of our society, creating societal isssues that are costing taxpayers billions of dollars already and getting worse. I’m all for fairness and justice and the rule of law, as you know from reading this blog. But those terms are relative and seen differently by different people. We need to agree that BOTH sides shuld be fully informed of all facts of this dispute so they can both have an opportunity to heard.

It is in that spirit that I refer to attorneys as the first responders in this emergency. And unless the attorneys are fully informed, the public will not have equal access to information to confront or work out there issues with the “lenders.” This Blog is dedicated to bringing that information into the public domain and increasing the number of people who challenge their lenders from under one percent of all foreclosures to 100%. walking away from your house, or just emplpoying delay tactics are not enough (although appropriate in some circumstances). You must seek to win.

If you look at the recent news, you can see that all the financial players are getting attention and bailouts — lenders, investment banks, and investors. It is quite clear that borrowers will ONLY get to be heard in court. If there was another, better way, I would advocate it.

4 Responses

  1. OK, I have asked you to respond three times by email and have not heard back from you since, can you please explain to me why Countrywide is now listing MERS as a defendant in their lawsuits? I have noticed this since May 2008.

  2. The Genesis of it all is the “GSE Business Model”.

    Paulson said it in the Wall Street Journal this past week: Mr. Paulson has correctly noted that Fannie and Freddie operate on flawed business models —

    The Business Model Mr. Paulson refers to simply does not work for a million reasons that starts with “the government guarantee”.

    The “guarantee” dictates the errant behavior of all the players involved. Servicers bread is buttered in fees, fees and fees. There is no “customer” relationship, etc.etc.

    Unless and until the “guaranteee” is removed there can be no resolution to the foreclosure debacle as all the players are gaming the system.

    Mr. Reagan said it correctly….”the governemnt isn’t the solution…..government is the proplem”.

    May God protect us from thier “help”.

  3. Mr. Garfield, I agree 1000%,

    I had 35 families in my office today, where I had the chance to share the information I have learned in this blog in a seminar. I am proud of having had the opportunity to have been educated by th best teacher I have ever seen in any subject, Mr Neil Garfield.

    we started the fight in the Washington D.C. Metro area, I challenge you to do the same where you live, I understand hat this is a very personal issue, however just consider he effect it is being generated when the crooks are having a field day lunching and dinning with the Feds.

    Money is being given left and right to hem and nothing to you, no answers no solutions.

    Mr. Garfield as you well know I have a personal commitment to this issue, being a victim myself, I could have gone the easy way and folded, but I am fighting and educating others as to their rights and their options.

    I challenge you to challenge the legal community , your local governments, your State governments, your Senators and representatives, we as the real parties in the center of the storm need to be the driving force.

    I challenge you to go after those who took advantage of you and your family.

    I challenge you to live not stone unturned to seek the truth and all the remedies available to you.

    I challenge you to be strong, and to encourage other to join the fight.

    challenge others to see the light, to see what was hidden from you and which may very well be the solution for your , neighbors, county, and state.

    The thirty some families that joined me today, heard about a seminar through a series of interviews I had on several radio station locally, we could not let more people i because we ran out of room.

    Next Saturday we will be renting a meeting room in a local hotel, and all the people who came in made commitments to bring at least three people more.

    Next week I will have lawyers and auditors to assist them all.

    Once again, I heard a phrase in the seminar that stuck with me:

    In a world full of lies, to tell the truth is considered a revolutionary act!

    Dear Mr. Garfield, Mr. Keiser, Mario Kenny and everyone who contributes, may god bless you and keep you healthy, we need your energy and inspiration.

    Thanks!

  4. Sadly, the playing field is not a level one by any means. Big business, in this case the banks and lenders, will always have the advantage coming from a position of power and money. It’s always the little people at the bottom of the food chain who end up getting screwed over. It’s the age-old “big fish eats little fish” scenario; it’s the elite wealthy few, standing on the backs of the poor.

    But … it can also be David and Goliath. If we as individuals stand up and fight for our rights, and encourage others to do so as well. The banks and lenders do not expect anyone to stand up to them. Sadly, so very many are intimidated by them, including a lot of attorneys. They fear being blackballed, among other things. Screw them; find one who has a set, or learn how to defend your case pro se if need be. The banks and lenders are greedy and disorganized, and those can be two huge advantages to us.

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