Homeowners Can Afford Those Homes and Should Stay: Largest IPO in History

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THE OBAMANOMICS MYTH THAT BORROWERS NEED TO BE FORCED OUT OF HOMES THEY CANNOT AFFORD:

Therefore, they argue, there should be no stopping the foreclosures. Here is where this writer and other contributors to the blog and the Ivory Tower collide. And here is where the Democrats are going to take a hammering if they go along with the mantra coming from this administration. Caught up in the flood of foreclosures are mostly people who at one time or another in the drama COULD afford the deal they were offered. By focusing on the inability of people to pay for a deal they didn’t know they were getting into, we are avoiding the sordid truth of the continuing fraud accomplished through foreclosure and credit bids from non-creditors.

The foreclosures MUST stop. The destruction of documents was intentional, a cover-up of a much larger fraud. Let the chips fall where they should, Mr. President, and the end of this game will be in sight. Continue on this path and we will be dealing with financial and property title chaos for decades. Ignore the obvious revenues and profits that were never reported, the transactions that were never recorded, and you sustain an untenable deficit of revenues to costs at all levels of government. The benefits flow only one way right now — to Wall Street, the members of which club are making money hand over fist while the rest of the country is mired in false debt. It’s us or them, Mr. President. Either we leave the bank oligopoly in charge of our lives or we take back that control.

The White House is ignoring the fraudulent aspect of this scheme and the further it  goes down that path, the further the disconnect from the American people. The people know it and Washington doesn’t. There was outright fraud on all end of this thing perpetrated by the banks and the question is whether, as Terry Goddard AZ AG said yesterday, whether we have “the gumption to simply pull the trigger.” How is it that the attorney general from one of the most ridiculed (unfortunately my state) states in the union understands the issue and the White House doesn’t?

This is not rocket science or conspiracy theory. The financial loan product sold to the homeowners was essentially an unregistered security sold under false pretenses. The promise was that the house was worth more than the loan and the loan would enable them to gain passive returns through continued increase in market values that were false to begin with. Everyone knew it was a false premise except the homeowner. Now the homeowner is stuck with a security investment that actually has a negative value because it leaves him investing even more in the project than the original deal — through liability in excess of the real value of the property. The risk factors spelled out even in the prospectus given to mortgage bond buyers had more information than what was given to the homeowners. If this was an IPO, which it was in actuality, the SEC would have frozen it immediately, for failure to disclose obvious risks and false premises.

Up until now, the Courts and the SEC, and the agencies regulating banks had no problem with what to do in these cases. You seek to make the victims whole again. Viewed from that perspective, few if any people are living in homes they cannot afford. Rescinding the transaction with the banks who committed the fraud only reverses the money part between the homeowner and the bank. It does not reverse the transaction between the homeowner and the seller from whom he purchased the home. That leaves the homeowner with a house he or she or they can very much and easily afford. If there is an obligation still outstanding after set-offs for the fraud, predatory lending, punitive damages, attorneys and costs, I’m sure we can work something out.

Larry Hagman, star of Dallas, just won an award against Citi for $1.1 million in compensatory damages and $10 million in punitive damages. Thousands of other investors, many of whom went into those fake mortgage bonds are getting the same relief. Why? Because they put Hagman in bad investments. Why should Citi be absolved of guilt for doing the same thing to homeowners? We are treating homeowners as “qualified investors” when they are the persons with the least information, the lowest qualifications, and the least sophistication in assessing financial risks associated with a security. Mr. Obama, you are getting bad advice from people who are making bad assumptions based upon incomplete facts. Just do what we always do to fraudsters and do what we always do for their victims, and the housing market, as well as a large part of the economy will be saved.

Folks, if you do it any other way, you might as well give Madoff back the money he stole. It’s the same thing.

34 Responses

  1. There are people such as myself who were not in arrears and still lost our home due to an illega lsale. We were not even aware of it until weeks later and their excuse was we signed an agreement to change our due date which we never did and they could not prove. The truth and proof mean nothing these days. Society allows these unethical actions to continue. Its been 2 years and our home is still vacant

  2. Fraudulent documents? Messed up chain of assignments? Clouded Title? Litton does not care, it has MERS.

    Assignment of Deed of Trust FIVE YEARS late? No problem. Deb Lyman of Litton can do it. (But does she ever loose her bar membership?) Isn’t MERS just WONDERFUL?

    Assignment of a loan in default into the Pool? No problem. Deb Lyman of Litton can do it. Isn’t MERS just WONDERFUL?

    Assignment of a loan into a Pool that can not take a late assignment? No problem. Deb Lyman of Litton can do it. So what if the tax status of that REMIC are now clearly questionable. Isn’t MERS just WONDERFUL?

    Find someone to sign for a defunct D/B/A of a company no longer is in business for itself? No problem. Deb Lyman of Litton can do it. Isn’t MERS just WONDERFUL?

    CountryWide generated the loan docs in 2005 as “America’s Wholesale Lender”, breached a mortgage mod and servicing was moved to Litton just in time for Litton to start action as a debt collector.

    Litton generated the substitution of Trustee in 2009. Isn’t MERS just WONDERFUL?

    After filing to foreclose in 2009 via that trustee, Litton now attempts to generate an assignment to the pool in 2010. They did not even bother to try to show the normal ‘chain’ of assignments. Isn’t MERS just WONDERFUL?

    Does anyone else notice the smell? Has anyone thought of the full consequences of this order of events?

    For all those Pools that apparently never had any right to the favorable tax treatment, I believe congress needs to act to force the originators and their initial MASTER SERVICER to share the tax burden that was improperly avoided on the payments the investors have received. Now the way that congress could exact some clout would be to provide BORROWERS on those mortgages with a nice fat reduction in principle and knocking the interest down to a fixed rate of 2% for the duration of the loan. ANY arrearages would be FOREGIVEN. This would be in lieu of the banksters having to deal with suits from both the borrowers and the investors (who would be suing at this point to be reimbursed for the tax consequences of the REMIC no longer being non-taxable).

  3. Anonymous,
    read the recent post from http://foreclosureblues.wordpress.com/

    * VIDEO: ELIZABETH WARREN “THIS IS A VERY BIG PROBLEM” On FORECLOSURE FRAUD
    * Dylan Ratigan On Property Rights Gone Wrong And America’s Descent Into Central Planning Hell
    * Findsen Letter to Arizona AG Terry Goddard
    * THE ATTORNEY FULL EMPLOYMENT ACT…Josh Rosner: “Could Violations of PSA’s Dwarf Lehman Weekend?”
    * White House warns against broad foreclosure moratorium

    #

  4. frankielee

    First, the investors have already opened their “packages” – and written them off. They are no more “security” pass-through investors in these notorious trusts – except, maybe, the US Government. This is what the investors lawsuits are about.

    Second, Bank of America cannot ask Fidelity to insure fraudulent title – and that they will cover them for the fraud. This is absurd. Who – in their right mind – would purchase a title insurance from Fidelity? Bank of America just does not know what to do. Trying whatever they think they can to cover the trail..

  5. Lucy

    Got the site. Have been a big supporter of Elizabeth Warren. Afraid Elizabeth Warren is now only going forward – that is, trying to prevent future problems. Cannot correct future potential problems unless past problems have been fully addressed. Not happening yet. But, – to Elizabeth Warren – if one is still paying – and has problems – is that part of CURRENT potential problems??? And, will that help you address past problems that are ongoing??? And, correct them??? Hope so, or future protection will not be effective.

  6. As far as B of A as the title insurer, I’m sure their thought is, “What have we got to lose?” I’m convinced they believe that the fact that they’re still TBTF makes it pretty easy for them to take on this risk. Pretty soon, they’ll anounce that they’re getting into the regulatory business.

  7. When the investors finally get to unwrap their packages and find, instead of AAA mortgage backed beauties, heaping piles of ****, they will have to repurchase them.

    At the same time, when it is revealed that they have no claims on the fraudulent mortgages that didn’t secure anything, they should be forced to return every dime to the homeowner….interest, principal, fees, you name it….every dime. The homeowner is then whole, the investor is then whole. That should just about do it for these idiots.

    These whore banks should then be parted out, what’s left of them, under the Dodd-Frank bill. Foreclose on the banks…what a sweet thought! I’d love to see the signs up and down Wall street. Motivated seller! Price reduction!

    And then, LET THE PERP WALKS BEGIN! We need a quota. Bill Black is suggesting 40,000 is the number who should be facing serious charges here. I’ll start with that figure.

  8. Lucy

    Get “failed to connect” for your site.

  9. Pat

    Thank you for the post. And, we all know now not to use Fidelity National as a title insurer. This is just a bribe by Bank of America – who is being pushed against a corner. The documents and title are fraudulent – PERIOD. Cannot bribe a title company to insure it – knowing the documents are false – and then indemnify the title insurer for actions for fraud. NO insurance covers fraud – and if Bank of America has made a contract with Fidelity to conceal fraud – this is very serious.

    Big problems out of Bank of America – they are grasping for straws. Do not know let them get away with it. AGs- hopefully – are on to it.

    BSE,

    Not stopping payment yet – using it. Too much to explain.

  10. WHAT DOES FRAUD AND PERJURY HAVE TO DO WITH BEING ABLE TO AFFORD A HOUSE?

    Plus who is the idiot that gave us a loan we cant afford?

    The idiot that misrepresented and had got a commision and did not care if we could afford the loan.

    ZOE YOU ARE AN AMERICAN PATRIOT.

    America is or was a country of Law and Order. The Banksters are UnAmerican and those who let them get away with it are guilty of Treason amongst other crimes.

  11. Zoe

    You are not a deadbeat. But truly a Patriot.

    EVERYONE STOP THEIR MORTAGE PAYMENT
    AND JOIN THE MOVEMENT !

  12. Bartlett’s report on Bloomberg clearly illustrates that he
    either an idiots or is participating in the cover up. Maybe he belongs on one of those orange jump suits. He needs to come out to my neighborhood and see that these banks want to foreclose as quickly as possible so they can auction the home then pocket the cash. If this is not the caes the home sets while the documents are fabricated . In the mean time I have to put up with deflated values, meth labs and a neighborhood that continues
    to collapse. THIS IS DESTRUCTION OF PROPERTY and these bastards want me to pay for their crime. BULL $HIT , Hell I think I will foreclose just to get the HELL out of here. Dirty Bastards

    Order the ORANGE JUMP SUITS

  13. zoe you are a prophet

  14. Bring out the champagne !!!!

    http://foreclosureblues.wordpress.com/

  15. “Everyone STOP YOUR MORTGAGE PAYMENT !”

    YES! I’ve been posting this for weeks on every site I could post a comment. Let’s start a movement. They can’t foreclose on all of us, and 60 million of us have broken titles anyway. Stop mortgage payments and FORCE our corrupt politicians to face WE the People. This is THE biggest stimulus we could give our country. Put the mortgage money back in the hands of hard-working American citizens.

    Thank you, Neil, for all you have done to help us recognize our dilemma, and our options.

    I am 60 years old and I have bought and sold several homes, but I never paid a late mortgage payment in my life, until two months ago. My credit score was over 800 when my home was purchased in 2006, I don’t care what it is now. I will NOT pay another dime to confessed criminals! I will save my money to pay my attorney and my forced move, but I will delay the foreclosure as long and as surely as I can. Sure I’ll be called a deadbeat, and some will say they are paying my free stay, but I am a taxpayer too, and have likely paid taxes longer than many of those who yell the loudest. My husband and I did qualify for our mortgages–WITH documentation–but I will no longer support this mortgage fraud, and I’ll do everything I can to find out other ways I can stop contributing to the vulgar riches of Wall Street crooks.

    It’s just plain stupid to keep paying mortgage payments and wait for the same crooks to come up with a solution to get us out of this.

    Yes, I’ll be painted with the “deadbeat” brush, but that’s okay. I’d rather be called a deadbeat than stupid.

  16. Hello Neil , why we dont have somebody , who set
    up a protest letter ,what we could copy here online , and send it tho the White House and the AG .

  17. DITTO

    Let the banks subtract any alleged losses from their profits.

  18. fellow Americans please do not buy homes that have been foreclosed on, these homes do not belong to the banks and imagine the pain a suffering the previous homeowner went through! don’t be part of it!!!!!!!!!! boycott foreclosed homes its not worth the profit of the pain it has caused the american people.

  19. I think I am going to bust a vein today !
    I am madder than HELL !

  20. […] Foreclosure Tightrope for Democrats Posted on October 11, 2010 by Neil Garfield SEE homeowners-can-afford-those-homes-and-should-stay October 11, […]

  21. Maybe I will post this another dozen times, hopefully some S.O.B. on capital hill will get the message.

    Now I am madder than hell ! I must post this again, and again and again !

    My neighborhood has been deflated by over 60%. I will be God Damn if I continue to pay for crimes committed by the banksters, Wall-Street and allowed by this f&&*king Government. These S.O.B.s sit on Capital Hill have no idea what it is like making two house payments ( the one you live in and the foreclosure down the street). Of course not, they do not live in the real world and not my ghetto that they created. Get every one of these S.O.Bs out of office by November.

    GOD DAMN BASTARDS !

    BE A PATRIOT and STOP YOUR MORTGAGE PAYMENT

  22. A must read.
    http://mandelman.ml-implode.com/2010/10/alright-banker-people%E2%80%A6-that%E2%80%99s-enough-you%E2%80%99re-not-making-sense-and-you%E2%80%99re-making-me-dizzy/

    All these banksters and and anybody that is affiliated with these crooks should STFU !!!!!

  23. Better yet, Ask Greenscum to resolve this mess. He promoted securitization for 20 years. He has the experience of trading the flow of debt with out consideration to the home owner and the US taxpayer. Millions are now in the position of usury.
    .

    This is the only way to resolve the issue “Everyone STOP YOUR MORTGAGE PAYMENT !”

  24. Better yet, we need to deflate Deflate Phil Grahm’s neighborhood, kick his family to the street, change his lifestyle and deport his kids to another school district. Homeowners are being forced to the streets for crimes committed by Congress and Wall Street.
    Criminal Charges must be filed on Phil Graham . This is another S.O.B that needs to get a real job !

    BE a Patriot and STOP your MORTGAGE PAYMENT !

  25. AND Again!

    Now I am madder than hell ! I must post this again, and again and again !

    My neighborhood has been deflated by over 60%. I will be God Damn if I continue to pay for crimes committed by the banksters, Wall-Street and allowed by this f&&*king Government. These S.O.B.s sit on Capital Hill have no idea what it is like making two house payments ( the one you live in and the foreclosure down the street). Of course not, they do not live in the real world and not my ghetto that they created. Get every one of these S.O.Bs out of office by November.

    GOD DAMN BASTARDS !

    BE A PATRIOT and STOP YOUR MORTGAGE PAYMENT

  26. Now I am madder than hell ! I must post this again, and again and again !

    My neighborhood has been deflated by over 60%. I will be God Damn if I continue to pay for crimes committed by the banksters, Wall-Street and allowed by this f&&*king Government. These S.O.B.s sit on Capital Hill have no idea what it is like making two house payments ( the one you live in and the foreclosure down the street). Of course not, they do not live in the real world and not my ghetto that they created. Get every one of these S.O.Bs out of office by November.

    GOD DAMN BASTARDS !

    BE A PATRIOT and STOP YOUR MORTGAGE PAYMENT !

  27. To use an arab proverb

    you dont spit or piss in the well you drink from

    An American Proverb

    You dont throw stones at a glass building

    NEVER AGAIN

  28. My neighborhood has been deflated by over 60%. I will be God Dam if I continue to pay for crimes committed by the banksters, Wall-Street and allowed by this f&&*king Government. These S.O.B.s sit on Capital Hill have no idea what it is like making two
    house payments ( the one you live in and the foreclosure down the street). Of course not, they do not live in the real world and not mu ghetto that they created. Get every one of these S.O.Bs out of office by November.

    GOD DAMN BASTARDS !

    BE A PATRIOT and STOP YOUR MORTGAGE PAYMENT !

  29. The genie is out of the bottle. The big problem is that the Government was allegedly part of the Ponzi Scheme.

    Maddoff was a private company so the government was not involved and he was easy to take down.

    The Banks have made Obama W. Bush look the fool so the Banksters days are numbered not to mention big hitters like Pelosi Boxer McCain Dodd whose careers are on the line because of the Banksters.

    Obama will be a one term President unless he puts the Banksters out of business.

    It is also time to look at Crimes against Humanity 1.4Million illegal foreclosures this year alone is grounds for an international Tribunal. Not to talk about National Security issues.

    This is a great article

    http://www.zerohedge.com/article/janet-tavakoli-biggest-fraud-history-capital-markets

    NEIL GARFIELD AND CO ARE TRUE AMERICAN HEROES AND TRUE HUMANITARIANS

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