The Market Ticker – “Put It All Back” Gains Mainstream Credence

COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary

EDITOR’S COMMENT: Wray has it right. This is the way it should turn out. And if the shoe was on the other foot it would happen because consumers usually take the hit. Yet it seems unlikely that this scenario will play out in the manner that Randall imagines. It should happen because it would turn the economy right-side up, because it would reflect reality and because it would enable us to regain the confidence and hope of the world powers.

Politics doesn’t seem to work that way. It seems to me we might get close to this type of resolution if the courts continue to respond to their duty to enforce the law rather than react from ideology or fear. One thing I know for sure is that without people standing up for their rights, they won’t have any rights to stand up for — because things tend to escalate. If Wall Street actually gets away with this, in the end, then they will do more of the same and it is always bigger and worse.

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The Market Ticker – “Put It All Back” Gains Mainstream Credence

Today, December 27, 2010, 1 hour ago | genesisGo to full article

From Randall Wray @ Bengiza (also writing at Huffington Post)….

It is time to push the reset button.

All foreclosures should be stopped immediately. The REMIC trustees should be audited to see if they have properly followed the requirements of the PSAs and laws applying to REMICs. If they do not have the notes, the securities should be put back to the banks. If the banks cannot absorb the losses, they must be closed and resolved. The FDIC in turn will end up with the mortgage backed securities and underlying mortgages. Working with Freddie and Fannie, all of these should be modified, into new fixed rate mortgages with a clawback to reset principal to current market value of the homes, and with new notes. Investors are going to take losses so there will be fall-out that government will have to address. There will be hundreds of billions of dollars of losses. Congress must find a way to mitigate effects on the economy as well as on investors in MBSs and other assets related to real estate. This is a big problem, but it is not insurmountable.

7 Responses

  1. Deb I am with you I am not getting free rent, I am not a deadbeat either. I have a legal battle to pay for plus I made a 10% down payment and four years of loan payments in my home that I stand to loose. If I loose my house now I will have paid close to 4700.00 a month rent in a market that would bear 3,000 rent for the exact same house down the street!

    I admit I got behind due to lost income, I did my part I contacted what I thought was my lender to discuss options before I was ever late. I cashed in my 401K to make my payments I did not have to but I was trying to do the right thing. I tried to work out a modification which was denied. Lost 3,000 to a modification company. The only option offered was to double my payments as their workout on a mortgage I already could not handle due to income reduction. I filed for Chapter 7 to try and keep my income for my house payment only. I got behind and caught up three times after discharge until they knew I had no more to give and they filed NOD. I was denied a workout due to securitization by three different servicer’s as they passed my loan around over a two year period. Never telling the next that the loan was in default and borrower had filed Chapter 7. Each servicer told me the investor does not allow modification and continued to try and collect on a discharged debt.

    My income has finally started to stabilized in the last month but now I am living in a home waiting for whoever will try to foreclose. I have no idea who if anyone has the right to foreclose we leave in fear, we have been denied the abilty to work out a resolution. I have over 277,000 plus legal fees in this home and if someone is going to take it they need to show me they have the right to do it. My family has been through hell. The emotional stress alone has been daunting.

    I signed for a home loan or so I thought, There was and should be an obligation. Due to securitization and the shell games that have been played behind the scenes now the question is to whom and how much? My loan was table funded and the original loan broker who was also named the Trustee on my loan is out of business, the lender the loan was table funded by is also gone. I believe what remains now is an unsecured debt most likely owned by a debt buyer who purchased it almost two years after chapter 7 discharge. I have a clouded title for sure since it is MERS loan and I have a loan number that has been changed by the third servicer and a lost note affidavit that was sent over a year ago from the previous servicer before the loan was sold again.

    How this will end is anyone’s guess. I am in a non-judicial state and will fight with everything I have, this is my home! If someone tries to foreclose I am going to fight to have them to prove they have the right to do so.

    Stand up and fight AMERICA do not let them take your homes!! Educate everyone you can on what is going on! As A Man is right when he says we need to be active posters on blogs like this.

  2. So the banks use other peoples money to fund the loans ( investor) they securitze the money pay the investor out if their own money do a spin ( I know that’s oversimplified) on the guy that signs the promissory nite, burn the promissory note because they don’t wsnt to bother about that in the intrim do what the he’ll they want behind the mers screen which we can only guess about bubble bursts and they stuck their hand out for tax dollars then they pretend to use hamp to help homeowners all the while taking homes as fast as they can pulling judges out of retirement! Then Fannie n Freddie get bent outta shape cause it looks like they are in on the deal ( aka ponzi scheme) they wsnt their money well actually it’s our money those tax dollars thru got first time around or was it the second time… So what’s next. We get to rent our own homes oh I forgot we alreay dud thst it cost me 90 k to rent for 28 months. I ” lived free” for about a year … Now if anyone tells me I lived there for Free one more tome …. ( I had put a lot down and upgraded and paid high dollar to hoa …and then… I lost everything to the united states government basically… and the banks get bailed and Fannie freddie Ginny get bailed and crdit Suisse and deutsche get bailed
    I remain in shock

  3. In order to keep home prices up (at a decent level), a foreclosure moritorium must be put in place. Otherwise, the properties will continue to free fall. As the above post indicates, the government will have to step in the modify these loans with principal reduction (correction) make new notes that are legal. Make sure all of the transaction goes into the county records properly, and give the homeowner a mortgage payment he can pay. That is the way out, and Wall Street be damned. We need those orange jumpsuits. http://www.challengingforeclosure.com Sirak@challengingforeclosure.com

  4. Wall Street is the axis of evil and we can live without them.

  5. Home prices are down and will not come back for 15 yrs. We just lost 3 more in our neighborhood. The frustration continues while home owners opt to walk away.

  6. US Home prices fell in October. Okay guys and gals lets start commenting on this blog.

    http://online.wsj.com/article/SB10001424052970203513204576047491075731426.html?mod=WSJ_hp_LEFTWhatsNewsCollection#articleTabs%3Darticle

    NEVER AGAIN

  7. WITH ALL THE MONEY WE DEADBEATS GAVE THEM FOR FREE THE BANKS ARE GETTING READY TO FAIL

    http://www.huffingtonpost.com/2010/12/27/rescued-banks-failing_n_801548.html

    NEVER AGAIN

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