Strategic Defaults Scaring the Pants Off the Giants

From Mandelman Matters Blog:

Mandelman Blog

A few weeks ago, Fannie Mae issued an outright threat to homeowners in this country, creating a new rule that would punish anyone who stops paying their mortgage and walks away from their home, referred to as a “strategic default,” by not allowing those who choose that path to get a Fannie Mae loan for seven years.

They call it their “Seven-Year Lockout Policy for Strategic Defaulters,” and if you haven’t realized it already… look what’s been accomplished here: Homeowners have scared the heck out of industry giant, Fannie Mae.  I mean… these guys are shaking like leaves, absolutely running scared.  I know homeowners have been feeling like they have no power against the bankers, but this should prove otherwise.  It’s like we pushed the bully, and the bully ran home and got his Mom to come lay down a new rule in response.

On Fannie’s Website, Terence Edwards, Executive Vice President for Credit Portfolio Management has the following to say about the new rule:

“Walking away from a mortgage is bad for borrowers and bad for communities and our approach is meant to deter the disturbing trend toward strategic defaulting.”

Bad for borrowers, Terrence?  Really, how so?  Are you trying to say that people who walk away from their underwater mortgages are doing it because it’s bad for them?  Because I don’t think they think that, Terence.  I’m pretty sure that those that choose to walk away from their mortgages do so because they’ve figured out that it’s better for them… in their own best interests, as they say.

Hey Terrence, you disingenuous prick, I understand that my walking away from my mortgage is bad for you, but that’s only because my house is now worth half of what I owe.  You wouldn’t mind if I walked away from my mortgage if I had equity, right?  So, in other words, you want me to lose the couple hundred grand instead of you, does that about sum up your position here?  Yeah, well… I’m sure you do.  But I, on the other hand, would prefer that you lose the money instead of me.  Sorry about that.

Terrence, last I checked you’re just a giant failed mortgage lender who is as much a part of why we’re in this mess as any, and you’re going to need $1.5 trillion in taxpayer dollars to bail you out.

I’m a taxpayer, Terrence… isn’t that enough of a loss for me to take on your behalf?  You want me to contribute my tax dollars and probably my child’s future tax dollars to your $1.5 trillion bailout.  And on top of that, you also want me to eat the loss of a couple hundred grand on my house?

Geeze… when are you guys planning to kick in on this?  Your CEO gets a $6 million a year salary, I looked it up, and best I can tell he gets paid to say “yes” to just about everything.  I don’t know, Terrence, but I’m pretty sure that I could have bankrupted Fannie Mae for a lot less than $1.5 trillion.

Walking away from a $500,000 mortgage on a house that’s now worth $250,000 isn’t bad for the borrower, it’s good for the borrower… it makes all the financial sense in the world, for the borrower.  I mean, would you recommend that someone hold onto a stock that’s lost half its value.

Then you say it’s bad for communities, Terrence, why do you think that’s the case?  I mean… bad is a relative term, wouldn’t you agree.  And, in terms of doing bad things to communities, aren’t you guys at Fannie Mae pretty much the poster children?  Like if the Olympic Games had a “Damaging Communities” event, wouldn’t you guys at Fannie be like the Michael Phelps of gold medalists, at the very least?

Yes, I’m afraid you would at that, Terry my boy.  You guys are responsible for wiping out more communities than say… I don’t know… Joseph Stalin comes to mind.  So does the bubonic plague.  So, now you’re all of a sudden so concerned about my community, are you?

Terry, my home appraised at the peak of the insanity at $925,000.  Last week, we heard there was a short sale about eight homes down from us.  Any guesses, Terry?  Well, I doubt you’d come close to $360,000 Mr. Fannie Mae spokesperson and executive VP.  I bought this house in 1990 for $340,000 you insensitive jackass.  Your incompetence has cost me a fortune.

You and your peers owe me money… or at the very least an apology… or something else, but how dare you attempt to “punish me” should I decide to become a productive member of society sooner by choosing not to take $300,000 and set it on fire.  And what would you like me to do, Terrance, if I spend the next twenty or thirty years paying for this house only to find out that I’m still under water by some amount at that time?  Any thoughts on that, you housing genius?  Maybe, try to do better in my next lifetime, Terrence?

How exactly will my strategic default harm my community?  How exactly, Mr. Edwards?  Because I’m thinking two things here:

One… If I let the home go into foreclosure, it’ll be an REO and the bank will resell it at the market price, or maybe a little below.  But, no one is going to give it away for free, right Terry?  The market price is the market price, right you mumbling mathlete?

If I’m allowed to short sale it, maybe it will sell for a little bit more, but then again, it might not sell at all, in which case I’ll still end up in foreclosure, but I won’t be able to stay in the house, saving money as a result of not making payments, while I pay a lawyer to prolong my free stay for as long as possible.  By the time I walk away, I’ll have maybe $100,000 saved up, which will make moving and renting an absolute breeze… to say nothing of my mental state, much improved as a result of controlling my destiny and screwing you.

Two… a strategic default only creates a foreclosure, and if you were so concerned about the impact of foreclosures on communities, we wouldn’t be in the situation we’re in today.  I hope you’ll forgive me if I laugh at you feigning concern about how foreclosures affect our communities.  I’ve been watching quite a few loan modifications up close and personal, and I haven’t seen Fannie Mae lift a finger to help a single homeowner.  Banks are abusing homeowners left and right, every single day of the year, with the exception of a few who take Christmas off, and where has Fannie Mae been?

Now that I finally decide to take matters into my own hands, in the best interests of me and my family, now you’re going to try to punish me, you worthless piece of trash, how dare you?  Go to hell, Terrence Edwards.  You’re an insolent punk for saying what you said, for trying to scare homeowners who are trying to survive this inconceivable catastrophe that you and yours created.  You’re an empty suit hiding behind some overpaid government job, nothing more.

You, of all people, claiming that strategic defaults are harming communities is absolutely hysterical.  Like cautioning people to take an umbrella when going for a walk into the eye of Hurricane Katrina.  Don’t forget your umbrella… you wouldn’t want to get wet.  Yeah, thanks for that advice.

Your approach is to “deter the disturbing trend” towards strategic defaulting?  Is that what you said?  Well, that’s the best damn news I’ve had in at least three years.  You and the rest of the self-important louts at Fannie Mae are actually disturbed by something.  Well, thank the good Lord, I am glad to know that.  Because you certainly haven’t seemed very disturbed at the carnage that’s been destroying the housing markets to-date, Mr. Terrence Edwards.

If strategic defaulting is disturbing you and Fannie Mae in general, well then that’s just about the best reason I could possibly think of for doing it.  You talked me into it, Terrence, and God willing quite a few others in this country whose lives have been ruined because of Fannie’s ruinous policies and incompetent management.

And then, as if Mr. Terrence Edwards hadn’t said more than enough, he went on to say:

“On the flip side, borrowers facing hardship who make a good faith effort to resolve their situation with their servicer will preserve the option to be considered for a future Fannie Mae loan in a shorter period of time.”

On the flip side?  The flip side?  I swear, someone needs to give you such a slap.  On the flip side, you actually have no idea what you’re talking about, do you?  You think people are walking away because they didn’t talk to their servicers?  You think, in that distorted little brain of yours, that it’s homeowners who need to act in “good faith” more often?

Well, that’s it for me.  I don’t know what to say in response to that, except to say that I can’t believe Terrence Edwards has a management job anywhere, let alone at the world’s largest source of lending.  After a statement like that, this guy should be asking women if they’d like to see something in a pump or a loafer.

Homeowners aren’t the ones failing to act in good faith, Mr. Ed.  Homeowners would all try to work with their servicers to resolve something in good faith.  Homeowners, and I’ve personally talked at length with thousands of them, have “good faith” written all over them.  They exude it from their pores.  That’s why they didn’t storm the castle when you and the other banksters needed to be bailed out after you guys decimated the global financial system.  But… on the flip side… their servicers consistently, and by that I do mean all the damn time and every damn day… continually lie, intimidate, bully, flagrantly break promises, and exhibit a lack of caring that would make Mary Poppins look like Dr. Mengele.

Are you unaware of this, Mr. Ed, you horse’s ass?  Has this somehow escaped your attention?  Missed it?  Busy watching the World Cup or something?  Come on, no way… you know exactly what’s going on between servicers and homeowners out there, and if you really don’t, well then you most certainly should.

In the spirit of leaving nothing to chance, allow me to explain how this whole mess happened.  We, the taxpayers, sat by and watched our elected representatives bail out Fannie Mae, and every other bankster in the country, we sucked it up and then watched Goldman et al, pay out $120 billion in bonuses last December.

Our President said he had a plan, and that banks would modify loans… there was hope.  But there wasn’t, was there, because the banks and servicers proceeded to treat homeowners like something stuck to the bottom of their custom made shoes.  They lied all the time, like constantly.  They bullied and made people feel badly, and in general they proved beyond any doubt that they could not be trusted.

No one is walking away from their home because they weren’t willing to make a good faith effort to find an alternative resolution by working with their servicer.  Never happens, or happened.  And if it has started to happen, which I still don’t believe, it’s only in response to the treatment of homeowners by their servicers. And true to form, the Wall Street Journal writes a story about homeowners happy about their decision to strategically default, some other news program interviews someone going to Hawaii as a result of not having to pay a mortgage payment, and you… you don’t bother to find out what’s really going on… you start with the threats.

Here’s what you said on Fannie’s Website:

Fannie Mae will also take legal action to recoup the outstanding mortgage debt from borrowers who strategically default on their loans in jurisdictions that allow for deficiency judgments. In an announcement next month, the company will be instructing its servicers to monitor delinquent loans facing foreclosure and put forth recommendations for cases that warrant the pursuit of deficiency judgments.

Troubled borrowers who work with their servicers, and provide information to help the servicer assess their situation, can be considered for foreclosure alternatives, such as a loan modification, a short sale, or a deed-in-lieu of foreclosure. A borrower with extenuating circumstances who works out one of these options with their servicer could be eligible for a new mortgage loan in three years and in as little as two years depending on the circumstances.

Oh, so let me get this straight… a Deed in Lieu, a short sale… those are just fine in your mind, but a strategic default is bad for borrowers and bad for communities.  Do you hear yourself?  How would a Deed in Lieu be better for the community, Mr. Edwards?  Never mind… you don’t know.

However, in your top paragraph above, you are saying that you’re going to go after deficiency judgments in states that allow deficiency judgments?  Well, goodie for you.  But, does that mean that you won’t go after deficiency judgments in states that allow them if the borrower simply attempts, in good faith, to work it out with his or her servicer, but fails?  I doubt it, don’t you Terrence?

And you’re going to ask the servicers to “put forth recommendations” as to who should be pursued for a deficiency judgment?  The servicers?  The group of companies and individuals that have, perhaps more than any group in history, proven that they cannot be trusted to follow rules, keep promises, or tell the truth.  I suppose they will also be the final arbiters of whether the homeowners attempted to work it out in “good faith,” as well.  Yeah, that’s about right actually.  Par for the friggin’ course.

Well, I’ll tell you what, Mr. Terrence Edwards.  You think you can threaten millions of American homeowners?  Why you would presume to have such authority is beyond me, but I’ll promise you this… you’ve certainly motivated me in a big way.  How many homeowners do you suppose I can reach through my 300,000 readers if I try really hard?  Because that’s precisely what I now am more committed than ever to doing.  Just because of you and your threats.

What was the threat anyway?  Oh yeah, those that you or the servicers deem strategic defaulters won’t be allowed to get a Fannie loan for 7 years, but the “good faith” people… which I would guess are those who agree to whatever their servicer demands, might get one in two or three years.

First of all, who cares about getting another loan in 2-3 years?  No one I know.  But even more to the point, what in the world makes you guys at Fannie Mae think you’ll be around in seven?

Mandelman out.

27 Responses

  1. […] Cross linked with Mandelman Blog […]

  2. THESE MORTGAGE “NOTES” have been counterfeited and sold multiple times to multiple investors and insured with MULTIPLE SETS OF CREDIT DEFAULT SWAPS. That is why “WE THE PEOPLE” have paid more than $10 Trillion Dollars to fix a $1 Trillion Dollar problem.

    Now – we can send these foreign LLC’s back to Europe with their FAKE PAPERS IN HAND.

    The notes are fake and forensics can PROVE IT – THE MICROSCOPE DOESN’T LIE!

    INK & PAPER HAVE CODES EMBEDDED IN THEM… so when PLAINTIFF’S MILL LAW FIRM claims to have possession of the note – tell them you would like to see it and never touch with your hands – always use latex gloves!

    http://gingolaw.com
    http://mariokenny.wordpress.com

  3. So who the heck at Fannie/Freddie decided to give the shi**iest MILL LAW FIRMS all over the US Power of Attorney? Could they (Fannie/Freddie) have possibly picked any shi**ier law firms to give POA to?

    I think not!

    & since we own Fannie/Freddie – can we have someone look into this issue?

    Mr. Edwards – what say you?

  4. There need’s to be an invetigation of PHH’s relationship with Lender One and the Stern Brothers (owners) and the possible connection with aka the Stern law firm in FL.

  5. Here is an e-mail that I just sent to Terrance about the Housing Crisis. Let me know what your thoughts are also!

    Hi Terrance

    I would like to have your feed back (from You) on this proposal that I e-mailed in 2006 to the President, Vice President, Secretary of Treasury and various Congressman and Senators! I have also e-mailed this to the Tampa Bay Tribune and as of today (2-23-2010) I still have not heard anything back from anyone! I would like to know what your thoughts on the following!

    HOW TO STOP THE HOUSING CRISIS!

    It is estimated that there are about 23.6 million households with negative equity in the country (toxic assets for the Banks), and if we use the median house price from the Census Bureau of $216,000.00 per home, we get $5.098 (rounded) trillion in potential mortgage losses for the lenders. This information was obtained in 2006! The following is how this Housing Crisis Could Have Been Avoided!

    Proposal: The Government begins to refinance the mortgages (at their original loan amount) of these 23.6 million homeowners at a (4%, 30 year fixed rate).
    Conditions for the Loan: Homeowner cannot sell the home in the first (5) years of the loan. After the (5th) year the home can be sold and the loan can be assumed provided the buyer can qualify!

    This Government refinance would bailout the 23.6 million households and I would also include speculators at this time because it is estimated that 20% of the 23.6 million homes are owned by speculators!
    This would have a TWO FOLD EFFECT!
    (1) It would have STABILIZED the housing market! How by paying off the existing Mortgages!
    (2) Paying off existing Mortgages would RID the BANKS of ALL their TOXIC ASSETS! None of the CDO’s, CDS’s Derivatives would have failed! Bear Stearns, Lehman Bros.and Merrill Lynch would still be in business!

    ALL THE LOANS GOING FORWARD (once the 23.6 million were refinanced) WOULD ONLY BE PROVIDED TO HOMEOWNERS! [NO SPECULATORS or 2nd homes!(This would be done through the Banks)]
    Example of a Homeowners Savings on a $216,000 Loan
    Current mortgage rate: 9.6% Estimated
    Current Payment: $1832.03
    Adjusted Payment: $1031.22
    Monthly Savings: $800.81
    Annual Savings to Homeowner: $9609.67 Average
    X 5 years
    Savings over 5 years $48,048.33

    Housing Prices are now Stabilized! Why because the 23.6 million homes that are underwater can’t be sold for 5 years! Homeowners can now afford their mortgage! Homes are no longer being Foreclosed!

    Homeowner in example has an extra $48,048.33 to spend over 5 years!

    Here is what the Government receives for their $216,000.00 loan

    Over 30 years:$371,239.20 is repaid this is an increase of $155,239.20 (Interest) Now multiply $155,239.20 X 23.6 million and you get $3,663,645,100,000!

    By the government Lending to the 23.6 million home owners, The Banks that now have the toxic loans, no longer have ANY TOXIC ASSETS on their books because their “LOANS” have been PAID OFF!
    Now [The Banks have $5.098 TRILLION to lend out]! The downward spiral of home values has stopped, and home ownership has been stabilized and the economy has been restarted and will flourish! A big plus for Taxpayers! Because the Taxpayers are no longer on the Hook to pay for TRILLIONS OF DOLLARS FOR WALL STREETS SCREW-UP!
    Over time the Government receives back the initial $5.098 trillion plus an additional: [$3.633 TRILLION DOLLARS!] THIS IS A WIN-WIN SOLUTION!

    Instead here is what has happened: The GOVERNMENT gave the money to the Banks, and instead of getting rid of “THE TOXIC ASSETS”, THE TOXIC ASSETS ARE STILL ON THEIR BOOKS, and we the Taxpayers are now on the hook for more than $11 TRILLION and the TAB keeps on INCREASING!

    INSTEAD OF A WIN-WIN SOLUTION WE NOW HAVE WHAT IS CALLED: “THE TAXPAYER KEEP GETTING SCREWED SOLUTION!!”

    RICHARD MAHAN
    E-MAIL:rpm3425@comcast.net
    208 Ibis Ave., Sebring, FL 33870 phone: 863-288-8723

  6. Here Terrance read this, Give it some thought then stick it up your A$$

    The International Bank Activities Reform Commission is charging Wells Fargo, partly owned by Warren Buffet and the Gates Foundation with fraud in their global involvement with the mortgage morass which continues impacting the global economy.
    In a complaint filed with the European Monetary Commission and the World Court in the Hague, Gabor S.Acs. one of the founders of IBARC stated, “Wells should get a Wells Notice from the United States Securities and Exchange Commission soon if they are on top of this investigation at the Justice Department.”
    The complaint alleges that Wells Fargo, their Directors, Officers and Major Institutional Stockholders including Goldman Sachs knew or should have known that billions of dollars in first and second mortgages originated, packaged and sold as securities by Wells Fargo contained false financial information provided by real estate brokers. And mortgage brokers making it impossible for the borrowers to pay back the loans or to be qualified to even make the monthly payments without refinancing over and over during a 30 year period that falsely inflated the cost of housing in the United States and the world over as a result, causing serious economic damage to hundreds of millions of humans around the world.

  7. PHH Mortgage Coproration & Fannie Mae that’s all you need to know about Mr.Edwards!

  8. Its rediculous of big lender companies to expect the tax payers to bail them out when they started this mess. They want to create a disaster and throw their hands up saying “it wasn’t us” and then expect pity at their loss, when in reality its the people who take the bigger loss. I say suck it up and take the hit.

    collection services

  9. Maybe Mr. Edwards would like to discuss;
    Frank Raines, Timothy Howard and Leanne Spencer!

    http://seattletimes.nwsource.com/html/businesstechnology/2004358433_webraines18.html

  10. Little Johnny understands the program and will do well some day working for a bank, Wall Street or the government.

    HOW TO SELL a MORTGAGE

    The kids filed back into class Monday morning. They were very excited. Their weekend assignment was to sell something, then give a talk on productive salesmanship.

    Little Sally led off: “I sold girl scout cookies and I made $30,” she said proudly, “My sales approach was to appeal to the customer’s civil spirit and I credit that approach for my obvious success.”

    “Very good,” said the teacher.

    Little Jenny was next:

    “I sold magazines,” she said, “I made $45 and I explained to everyone that magazines would keep them up on current events.”

    “Very good, Jenny,” said the teacher..

    Eventually, it was Little Johnny’s turn.

    The teacher held her breath …

    Little Johnny walked to the front of the classroom and dumped a box full of cash on the teacher’s desk. “$2,467,” he said.

    “$2,467!” cried the teacher, “What in the world were you selling?”

    “Toothbrushes,” said Little Johnny.

    “Toothbrushes!” echoed the teacher, “How could you possibly sell enough tooth brushes to make that much money?”

    “I found the busiest corner in town,” said Little Johnny, “I set up a Dip & Chip stand and gave everybody who walked by a free sample.”

    They all said the same thing, “Hey, this tastes like dog shit!”

    Then I would say, 的t is dog shit. Wanna buy a toothbrush?”

    “I used the governmental approach of giving you something shitty for free, and then making you pay to get the taste out of your mouth.”

  11. Fighting this foreclosure IS MY CIVIC DUTY!

  12. I enjoyed this article so much and was so inspired. I wonder what will become of these banking shysters 3 years from now? Wish I had a crystal ball, I’m sure its not pretty. But you know what? I think they know it.

  13. Maybe Mr. Edwards would like to discuss;

    Frank Raines, Timothy Howard and Leanne Spencer!

    http://seattletimes.nwsource.com/html/businesstechnology/2004358433_webraines18.html

    …then there was Mr. Kellerman over at Freddie;

    http://247wallst.com/2009/04/22/cfo-death-only-clouds-freddie-mac-fannie-mae-further-fre-fnm/

    COME ON TERENCE – WHO DO YOU THINK YOU’RE FOOLING?

  14. google Cendant… now PHH and you will find fraud.. fraud and more fraud… cooking the books and other SEC violations… a few went to jail.
    Mr Edwrads got the boot last year from PHH and miraculously land’s on his feet in a high paying job at Fannie

    PHH Mortgage Corporation and affiliates & Fannie will be the next big story.

  15. THE A MAN
    Very soon something will happen.”NEWTON’S THIRD LAW OF MOTION” For every action there will be a reaction” The days of these thieves have been numbered and they will have to pay back. Please do no loose heart. Save your bullets and use them wisely.judges are getting the message now.They can not play with us any more.Keep your horses ready and help the others in the similar situation. Be unite.

  16. Be a patriot !
    ****** STOP YOUR PAYMENT ********

    I think Terence Edwards needs get off his ass and take a tour of duty. He needs to fly out to my Phoenix neighborhood and see what Freddie and Fannie’s appetite for MBS created…Basically, they
    turned my neighborhood into a glorified Mobil home park. Homeowners are walking away and will continue to walk away. We purchased homes based on an appraised value. Little did we know these were hyper inflated and now these homes are worth 60% less. The strategic defaults have the ability to pay but refuse to flip the bill for the crimes others committed.
    Get a real job Terrance Edwards ! I prefer to live in a tent and remain a patriot than to be enslaved to the usurious government assholes who have no clue.
    Next time you butt heads remove regulations, please make sure some one has some skin in the game before they loan out the cash.

  17. Re Fanny Mae threat and T. Edwards “bad for communities” comments and attitude….
    Strategic Default! Really? Are you insane and gee, I wonder who made up that inflamatory language.

    Sure, keep acting like tag lines that compartmentalize the situations most represented are the folks that ‘walk away’ from there home…..(in this scenario the various details end in Mr. & Mrs. Strategy and family shouting YIPPY!!)

    You dogs! Now can we talk about the real situation only use the real numbers, real people, THEN let’s ALL talk of appropriate punishments.

    P.S. (about BS and default from actual reality)
    The other 80% have owned their homes for decades and have significant equity, are on a fixed income such as retirement , disability, or Social Security. They were sucked into loans (refinance’s gained using fraud) as a vehicle to the home equity, the spoils of working the loan at several levels, finally foreclosure and return to the bank. (may or may not stop here either)

    What about not being behind on payments, but being TRICKED into applying for HARP and after being told you qualify, asked not to send the payments during the processs which they delay. (along with the loan mod companies and attorneys you paid to make sure all went correctly instead helped servicer push you into default, add more fees you have not had the opportunity to question, then use the disengenuous offer of help to advance the manipulation used to acquire the property. After bleeding for whatever money or payment’s can be had during this ‘good faith process’, several additional tactics, (modification negotiation included), are engaged to make sure it ends with the sale of your home.

    Punish me! You have lost your mind if you think the primary thought possessing my mind is, “OOOOOue, I wonder when I can get another mortgage loan, go through some similiar BS down the road, (even though I bought this home 32 years ago), subject myself to further torment, worry, stress, loss, and rage. The American Dream.
    hardy har,
    Kimmie

  18. Just an FYI on Terrance Edward’s… he was a former top VP at PHH Mortgage Corporation (formally Cendant) an under the radar non-bank mortgage aggregator, darling of Fannie Mae with dubious ties to shadow investment trusts such as Bishops Gate Mortgage Trust.

    Connect the dots here from Fannie to PHH and all their entities and a real story will unfold.They have been lurking in the shadows for way to long.

  19. MANDELMAN
    I DID THE SAME THING EXCEPT I FILED A LAW SUIT IN ONE OF THE “USDC” (FEDERAL) COURTS AND HAVE BEEN PAYING AN ATTORNEY INSTEAD OF THE MORTGAGE. ONE OF SIX BANKING ENTITIES WHICH OUT OF ALL OF THEM THAT ARE MENTIONED ON THE “NOTE” NO ONE STOUD UP TO CLAIM THEIR PRISE.
    “VOIDED AND NULL”
    UNDER THE STATUTES OF NONDISCLOSURE
    “TRUTH-AND-LENDING-ACT”
    I BELIEVE THAT BY THE SHARE NUMBERS OF PEOPLE
    WHO WHEN THEY STOP THE FLOW OF CASH TO THESE RUTHLESS COWARDS (BANKSTA’S) THAT HIRE RUTHLESS LAWYERS TO DO THEIR DIRTY WORK. THE BANKSTERS WILL IN FACT HAVE NO WAY OF STOPPING THIS, IT IS NOT ILLEGAL, THIS IS A MOVEMENT THAT WILL TURN THIS MESS AROUND. NO BULLETS NO BLOODSHED
    WE THE PEOPLE DEMAND THEM TO STOP AND WE DEMAND CHAIN OF TITLE AND FULL RESTORATION OF OUR WEALTH (CREDIT RATING) AND DAMAGES, TREBLE, WITH CLEAR AND QUITE TITLE.
    SO TO YOU OUT THERE, LIKE “MANDELMAN”, AND MYSELF I CHALLENGE THE REST OF YOU TO GO TO
    CASH FLOW WAR.
    THIS WILL STOP THEM DEAD IN THEIR TRACKS, THEIR JOBS, THE PORNOGRAPHIC BONUSES. AND “WE THE PEOPLE WILL HAVE PONIED UP TO THE BAR AND DECLARED WAR. THEY CAN NOT STOP THIS STRATEGY. SO PASS THIS ON TO YOUR COMRADES
    AND START “THE CIVIL WAR OF 2010”.

  20. MANDELMAN
    I DID THE SAME THING EXCEPT I FILED A LAW SUIT IN ONE OF THE “USDC” (FEDERAL) COURTS AND HAVE BEEN PAYING AN ATTORNEY INSTEAD OF THE MORTGAGE. ONE OF SIX BANKING ENTITIES WHICH OUT OF ALL OF THEM THAT ARE MENTIONED ON THE “NOTE” NO ONE STOUD UP TO CLAIM THEIR PRISE.
    “VOIDED AND NULL”
    UNDER THE STATUTES OF NONDISCLOSURE
    “TRUTH-AND-LENDING-ACT”
    I BELIEVE THAT BY THE SHARE NUMBERS OF PEOPLE
    WHO WHEN THEY STOP THE FLOW OF CASH TO THESE RUTHLESS COWARDS (BANKSTA’S) THAT HIRE RUTHLESS LAWYERS TO DO THEIR DIRTY WORK. THE BANKSTERS WILL IN FACT HAVE NO WAY OF STOPPING THIS, IT IS NOT ILLEGAL, THIS IS A MOVEMENT THAT WILL TURN THIS MESS AROUND. NO BULLETS NO BLOODSHED
    WE THE PEOPLE DEMAND THEM TO STOP AND WE DEMAND CHAIN OF TITLE AND FULL RESTORATION OF OUR WEALTH (CREDIT RATING) AND DAMAGES, TREBLE, WITH CLEAR AND QUITE TITLE.
    SO TO YOU OUT THERE, LIKE “MANDELMAN”, AND MYSELF I CHALLENGE THE REST OF YOU TO GO TO
    CASH FLOW WAR.
    THIS WILL STOP THEM DEAD IN THEIR TRACKS, THEIR JOBS, THE PORNOGRAPHIC BONUSES. AND “WE THE PEOPLE WILL HAVE PONIED UP AND DECLARED WAR

  21. If the GSE’s are going to blacklist borrowers, isn’t that evidence of direct involvement with the origination of loans, something that they are prohibited by law from doing? Isn’t it admission of a concealed “joint venture” arrangement with pretender lenders?

  22. The determination as to who is eligible to be exempted from a strategic default “punishment” is a critical issue involving the taking of property. Consequently, the quasi govt agencies –now more or less completely got owned must meet standards of due process. Due process standards apply to the initial rule-making process that determines who is subject to what requirements along with a clearly defined appeals process, or else the decisions are invalid/voidable. As well, the adjudication of each case is subject to standards of due process. Questions arise such as whether the agency followed its own published rule-making procedure in rendering an “order” in respect of the specific case at hand. this whole process, once established , will face serious scrutiny particularly in respect of defaulting persons that were not aware that the promissory notes were not satisfied by proceeds of foreclosure, in part or in full if the lenders begin to fight over the rights to collect on notes included [or not included] in respect of mortgage loan lists that went unfiled with SEC and/or UCC state recording offices.

    It would seem that the quaisi fed agencies are already exceeding legal authority by attempting to create arbitrary classes without support by legislation. there is no doubt that the agencies actions would be punitive. What power do they draw upon to make such distinctions? more than likely they will assert that their authority derives from their contractual rights as debt collectors to “waive” deficiency claims for persons that meet their standards. However, they exert power and authority as government agencies–funded by govt. So are these entities claiming the best of both worlds: full right to act as a free-wheeling capitalist entity plus the weight of color of govt? Super-agencies? Super companies? It would seem that these public institutions are running amuck. They were created to facilitate home-ownership. It is difficult to interpret this as anything other than a lender manipulated effort to remove public and Congress’ support from these institutions to put all decisions on capital rationing firmly in the hands of a few fortress banks. Instead these things should be buying up these loans for market prices and modifying aggressively. It makes no sense for government institutions to stand by while home prices are driven down by distress selling of homes by servicers attempting to build their “collection account” balances with proceeds of foreclosure, which the servicers may then use to generate revenue streams that they retain under the servicing agreements. The current waves of frantic foreclosure activity to suck in proceeds of foreclosure benefit nobody but the owners of the servicers. They will be left with all the capital, no competition, and huge inventories of homes that nobody is qualified to buy except the vulture investors that buy to rent. This was not the intended result of these institutions’ formation.

    Are strategic defaulters limited to those who purchased multiple homes for speculation? For investment but then cannot afford to hang on because the rental market prices are sinking along with housing prices and increased supply? What about those who are forced to relocate to get a job after they are laid off? Easy answer that one right? OK what if the person relocates to get a better-paying job–but not so much better that he/she can pay for 2 homes–and a split family? Is he a strategic defaulter because he is an well compensated 30 something male with no family? Is he now an indentured servant of his current employer as a result of govt agency action? What facts? Who decides? Are the decisions consistent? How does this square with equal treatment con-law where some states allow deficiencies and others do not?

  23. Yes, that is the only solution. Modify your own loan. Stop making payments to the lending institutions that brought this all upon us.

  24. I will make sure that my daughter, and her sons and daughters, never trust a national bank or GSE.

    How many of us do they think will be stupid enough to go back to them for another screwing? If a credit union won’t loan me the money to purchase a home, then I will be resigned to rent.

    I doubt I will ever even pay retail for anything ever again. I will rent, buy used goods, and remain debt free. I will not owe anyone a dime ever again.

  25. Give em’ HELL ! Stop your payments now !
    Let’s take back our country and teach these dirty S.O.Bs a lesson.

  26. Well said!!

  27. YOU GUYS ARE DREAMING. WE ARE IN SURVIVAL MODE.

    PAY MORTGAGE TO DEAD BEAT BANKSTERS-IT IS ALL OVER THE NEWS NEW YORK TIMES ETC… OR
    OR
    PAY UTILITIES BILL, PAY DOCTORS BILL AND MOST IMPORTANT FOOD AND EDUCATION FOR OUR CHILDREN.

    PEOPLE ARE BROKE THE PSYCHOPATH BANKSTERS AND THEIR CHRONIES THE JUDGES ARE ALL PSYCHOPATH CANIBALS. THE JUDGES DISREGARD FOR THE LAW.

    WELL I GOT A MESSAGE FOR THE JUDGES. THE BANKSTERS WILL TURN ON YOU IN A NEW YORK MINUTE. IT IS ONLY A QUESTION OF TIME.

    STRATEGIC DEFAULT EQUALS FOOD FOR OUR FAMILIES OR OURSELVES BECAUSE WE ARE ALL BROKE PAYING FOR PREDATORY LOANS AND OVERINFLATED APPRAISALS GIVING LOANS TO PEOPLE WHO COULD NOT PAY ETC…….

    WHY DO YOU THINK THE INVESTORS ARE GOING AFTER THE BANKS? BECAUSE THEY REALIZED THAT WE ARE BROKE AND YOU CANT GET WATER FROM A DRY STONE (UNLESS YOUR NAME IS MOSES FROM THE BIBLE).

    BE STRONG AND COURAGEOUS.

    GOD BLESS AMERICA.

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