WITHOUT THE F-WORD, THIS CAN’T BE FIXED

EDITORIAL COMMENT: It’s nice that the media understands that foreclosures are a problem. It’s nice that the media recognizes that none of the efforts so far have produced anything other than window dressing for political points. But it isn’t nice that the media is controlled by information and spin from Wall Street.
The plain truth is that the 7 million homes that were taken were probably all falsified in some way using mortgages that were false documents with false content and in clear violation of Federal and State lending laws. The next 3 million will be done the same way.
And that is the tip of the iceberg. Besides the 10 million foreclosures they are counting now there are another 70 million mortgage transactions that are equally defective as the ones that were foreclosed. Any refinancing, satisfaction of mortgage, sale or trade that is based upon the validity and veracity of mortgage documentation that was part of the securitization PONZI scheme is as defective as any of the foreclosures. And it’s all happening because the lawyers people consult and the politicians who make laws and policies don’t know or don’t care about the absurd state of our marketplace. Virtually every transaction is done with credit and virtually every credit transaction is subject to some sort of securitization scheme — a scheme that never actually came into being.
Virtually every transaction that DID occur is “without portfolio.” There is no documentation of the transaction despite clear requirements of Federal and state law. What the media doesn’t get is that just because you have a document that is dated the same day a transaction took place doesn’t mean that document is THE document that memorializes the transaction — even if ONE of the parties on the documentation matches ONE of the parties in the transaction.
The bottom line is that there was a single transaction with lots of intermediaries. The parties were the borrower (the homeowner) and the lender (the investor in MBS). There is no document recording that transaction. The borrower and lender don’t know each other and don’t even know the existence of each other. The borrower thought he/she was doing business with the loan originator which was merely acting as a second mortgage broker. The Lender thought he/she was doing business with a Wall Street group that each had liabilities and obligations to the lender making the investment safe. If either the borrower or the lender actually knew the true facts of the transaction, the appraisal fraud, the ratings fraud, and the securitization fraud achieved through insurance, credit default swaps and government bailout would have been undermined.
These were not honest transactions and the the defaults don’t exist any more than the notes or mortgages upon which they are predicated. In many cases the lender is still getting paid by the servicer in order to justify outsize servicing fees that allows the servicer and other parties in the foreclosure game to keep the house, screwing both the investor and the homeowner. If the fraud was not continuing, this mess could be cleaned up. But the media, Wall Street and government keep starting with the wrong premise — that original transaction with the homeowner and the original transaction with the investor were bona fide transactions when in fact they were fraudulent. WITHOUT THE F-WORD, THIS CAN’T BE FIXED.

NY TIMES EDITORIAL

Foreclosure Follies

Recent price data show home values at nearly their lowest levels in the postbubble era, and a coming tide of foreclosures means prices will drop further. Seven million families have lost their homes so far, and another three million foreclosures are expected through 2012.

The ongoing crash is further evidence that the government’s antiforeclosure efforts have fallen short and America’s struggling homeowners need more help.

So what are House Republicans proposing? They want the government to get out of the antiforeclosure business altogether and leave homeowners to fend for themselves. The result would be hundreds of thousands of additional foreclosures and steeper price declines.

House Republicans have introduced bills to eliminate four federal antiforeclosure programs and replace them with — nothing. Here is a list of those programs and ways they could be improved:

HOME AFFORDABLE MODIFICATION PROGRAM No one disputes that HAMP, the Obama administration’s main antiforeclosure plan, is lagging behind its goal to modify troubled loans for three million to four million homeowners. Of the $30 billion intended for the effort, only $1 billion has been spent so far to permanently modify 608,000 loans.

Much of the problem lies with the participating banks. Widespread errors and abuses include the improper delay and denial of modifications, excessive fees, and violations of borrowers’ legal protections. Legislation and regulation that gets tougher on the banks could help fix those problems, including enactment of a transparent process for homeowners to challenge banks’ decisions, stiffer penalties for banks that don’t meet HAMP standards and a streamlined process for converting trial modifications to permanent ones.

THE NEIGHBORHOOD STABILIZATION PROGRAM This Bush-era program provides money to states, cities and nonprofits to buy and rehabilitate abandoned and foreclosed properties. It helps curb the blight that comes with empty properties and, in the process, preserves the value of nearby homes and the municipalities’ tax base.

The problem is there isn’t enough money. Congress appropriated $4 billion in 2008 and $2 billion in 2009; all has been obligated. House Republicans want to eliminate a third round of financing — $1 billion — promised in the financial reform law. They say the program may provide a perverse incentive for banks to foreclose. That is absurd. Banks foreclose when they deem it in their interest, not because a small federal program entices them.

THE EMERGENCY HOMEOWNERS LOAN PROGRAM This $1 billion effort, which has not yet been implemented, would grant loans to homeowners who are unemployed, or who have lost income because of illness. Joblessness is the main reason homeowners fall behind, so alleviating such temporary hardship is crucial to curbing foreclosures. Republicans claim that such loans only encourage indebtedness. The claim is overwrought because the loans are not onerous; they are no-interest and are forgiven in installments over five years for homeowners who remain in the home. A short-term and manageable increase in debt is a prudent way to save one’s home.

F.H.A. SHORT REFINANCE OPTION Many of the 14 million homeowners who are “underwater” — owe more on the mortgages than the homes are worth — are current in their payments. But because they lack equity, they cannot refinance their loans at lower rates. The Federal Housing Administration option would facilitate the much-needed refinancings by insuring the new loans.

The program, which began last fall, got off to a slow start, mainly because of technical problems that have been resolved. Wells Fargo and GMAC/Ally recently announced pilot F.H.A. programs, and other lenders expect to be on board by midyear. Ending the program would squander an important chance to prevent foreclosures.

All of the targeted programs address serious unmet needs. If House Republicans get their way and shut these programs down, all Americans will pay the price.

11 Responses

  1. There are only two differences between Republicans and Democrats. 1) The spelling. 2) The lies they tell. And they ALL have one thing in common, GREED! Which brings me to this question, ‘why do politicians want gun control?’

  2. Funding for the banker’s bailout was swift and without input from you and me, bailout for the debtor has little funding and they still argue that is not a good idea, who in the hell do they think they are. Republicans and Democrats are the same, not for the people. Bankers must be laughing!

  3. Well when it’s 7 bucks a gal and loaf of bread triples and people have lost everything material including their job guess what they have nothing to loose but the fear and guess what when they become so uncomfortable with what our governments past and present set us up for and with their backs in the corner and there is no other option well history will tell you the rest
    it’s going to come and we are so unprepared and the untouchables have secured their future and they give nothing nor care nothing about the common man the masses or whatever you want to call me and my brothers and sisters
    The denial has to stop thr f word is spoken

  4. Many real people operating under the guise of doing business for the fiction, PNC Mortgage, stole my home.

    For the MERS comment (MERS in the hot seat).

    news.firedoglake.com/2011/03/02/mers-tapped-for-federal-investigation/

    Light and Love,
    Trespass Unwanted

  5. I know nothing and if I think I know something, I know nothing. I do not give legal advice because I don’t know legal things.

    Sometimes to clean up a mess, you have to remove the incentive that allowed the mess to be made in the first place. We’ve spent over 200 years under a messed up system. Backing out of all that control and funneled money for specific interests will be difficult for the average one to accept, but they only way to get the guys in the middle out of the way, so it mano-a-mano, life to life and not corporation to corporation where there is no accountability because they’ve hidden behind security agreements for the CEO and board members.

    I know this seems bad, but no one was there when all of this slowly built up, and to tear it down bit by bit and piece by piece, we’d have to see something different than what we’ve always seen.

    Of course some will say this is part of some grand plan by the hidden ones, and make us fight tooth and nail to not see things change. I’ve stopped listening to outside sources. With all the Earth changes and social and political changes, we are going through physical changes from our environment (natural and unnatural environment). If we use our ‘be-lie-f’ system to decide how we will handle things, they can still get you to be part of the problem. Look inside yourself, you have more power than you know. Use your higher energies to thwart their activity. Remember there is more at stake than a home here. There is a spiritual battle going on. One for your soul. The winner will be on both sides. This is a dual world. The spiritual ones who stay in the higher frequencies while dealing with them will advance and win in one way, and the ones who have kept the masses in the lower frequencies of vibration will win in their activities.

    No one wants all, just enough to stay low is good enough for what they are trying to do.

    We are of Genesis 1. We are not of Genesis 2. If you can stand tall and remind them of who they deal with, they’d be gone out of your way.

    In a strange way, the problem is ours because we don’t use our solution. We’ve inherited the Kingdom of Heaven. We administer our own estate within the kingdom. They have no authority to administer our estate for us, yet they took it upon themselves to act on our behalf and remove us from what is ours through fraud.

    Claim your right. You are who you are waiting for.
    Open your mouth, claim your right, let them know you are the property of the one who created you and no other. Let them know what you have belongs to the Creator who created you. Let them know they cannot execute against your estate without your authority.
    Remind them that you are alive and that you live.
    Speak the language of Love. Only one who feels unloved does the horrendous things being done today. No one with a heart who cares would make another suffer. If you do the same, you are the same as they are, and in that game only one bad guy gets the goods, the others must step aside. First come first serve.

    Find “yourself” and we’ll find the existence we want for everyone alive, not just “us” as an individual.

    I love you no matter your choice.

    Light and Love,

    Trespass Unwanted, alive, allodial, corporeal, life, live born, born alive, free, freeman, in jure proprio, in jure divino, whole blood

  6. Pro Se Rights Denied! – by Catherine Ibarra – March 6, 2011

    It’s business as usual on Wall Street and Washington D.C. Tom Miller is a disappointment to all. What happened here Tom? You came off like a fire cracker promising to put these criminals in jail for their crimes then got soft on us? Money talks.

    Foreclosure Volume SOARS 50% In California And Arizona, As The Moratorium Ends
    Banks have resumed aggressive foreclosure and large inventories of are now scheduled for foreclosure sale. County Clerks report 1,000 foreclosures a day are recorded in San Diego alone. Bank foreclosure sales have jumped 51.2% in California. Oregon and Washington also recorded back-to-bank foreclosure spikes of 33% and 54%. Analysts have been warning for months that the decline in foreclosures was due to the robosigning moratorium, and did not signify an improving housing market.
    As a result our Federal District and Superior Courts are deluged with unprecedented number of Unlawful Detainers and consumer complaints related to foreclosure and aggressively seek to clear their dockets summarily pushing through legal actions related to foreclosure as quickly as possible.
    Our Statistical reviews of foreclosures cases in San Diego Superior Courts alone show the our San Diego Superior Courts push foreclosure cases through at lightning speed; frequently granting prejudgment right of possession in favor of foreclosing creditors, with a 98% ruling in favor of banks without even a pretense of a summary review of State of California property owner legal issues. Statistics Show* Pro Se (self-represented) property owners are 100% defeated and it is common knowledge that pro se pleadings are generally not considered worthy of review by our San Diego Superior Court Judiciary.

    “Power concedes nothing without a demand. It never did and it never will. Find out just what a people will submit to, and you have found out the exact amount of injustice and wrong which will be imposed upon them; and these will continue till they are resisted with either words or blows, or with both. The limits of tyrants are prescribed by the endurance of those whom they oppress.” – Frederick Douglass (c. 1818 – 20 February 1895), in an address on West India Emancipation (1857-08-04)

    MORE QUOTES FOR THE SOCIALLY CONSCIENCE

    “The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society. Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country.” – Edward Bernays

    “We are all born ignorant, but one must work hard to remain stupid.” – Benjamin Franklin

    “Human progress is furthered, not by conformity, but by aberration.” – H. L. Mencken

    More at CommuniversityMagazine.org

  7. Mers is simply the shell game that hides the illegality that is mortgage securitization. The problem is much bigger than Mers. Whether it’s student loans, credit cards, notes on any kind of financial obligation between you and the great unknown.

    If Joe6pack understood that he didn’t sign a contract for a car or a house, but instead signed a securities agreement that didn’t spell out any of the terms, didn’t identify the investment party, the fact that it has been sold multiple times therefore voiding the debt obligation, there would be riots in the streets.

    Instead, the government, Wall Street, and the media continue to hide the criminality and pretend that everything’s AOK. Their committees and sub-committees are a farce. Their regulations go unenforced. Their laws ignored. This can’t end well. All Ponzi schemes eventually implode. This one’s going to cause a massive black hole when it goes. Death to Wall Street.

  8. Where’s the police when you need them?” How many times have you heard or said that refrain??? Because it’s the truth…the police always show up AFTER the act and then the innocent spend time and money trying to prove the guilty party GUILTY!

    And that is where we are today in the case of this country’s financial collapse and the building of a company called MERS. Where was the SEC, where was the OCC, where were the FEDS…HECK where was just about ANY government agency??? Absolutely no government entity was on board ‘overseeing’ anyone in the covert operation of MERS.

    Now MERS appears to be the biggest culprit in the downslide of American trust (as it relates to banking and our government overseers at their worse). However, I ask you to contemplate the WHO, WHY, WHERE, WHEN and WHAT’s of this picture…remember the 5 W’s you learned in elementary school…well it still works to find the truth…Follow the 5 W’s to the beginning and clearly the ‘story’ of this crime will be the ‘bed-fellows’ that created MERS…the 5 W’s plus the ‘F’ word = Banksters and Government Overseers

  9. I’m guessing the controlling industries (Wall Street/Banks, realtors, insurance companies) will control any debate the same way they controlled and designed the bubble, the bailout, and destroyed any chance that cramdown legislation would pass – and most incredibly, unveiled a program that was essentially a cruel lie (HAMP). Is it cynical at this point to say congress doesn’t serve me or you – and that this authority is illegitimate.

  10. heres a “problem” with foreclosures that no one seems to be be talking about, HAMP itself. pretender lenders are using mods to get distressed homeowners to affirm debts that never existed. banks with no demonstrable right to your mortgage or loan are modifying loans with distressed homeowners which reaffirms the debt in the pretender lenders name. my lender went bankrupt, and never conveyed anything to anyone on the record. the servicer of my loan came to us when we were behind on payments and said they would modify our loan. we signed away only to later find out the mod said we affirmed and acknowledged our servicer as the lender and holder of our mortgage. the problem is, our servicer was never either one of those and has no evidence they were. they failed to tell us at signing of the mod that our lender of record had been bankrupt for 3 years. the servicer, through mers, then assigned the loan mod secured by the mortgage , not the original note mind you, to a securtiized trust in 2010 which had a close and cut off date in 2006. the assignment to the trust clearly says “mers hereby assigns the mortgage and loan mod secured thereby” to this trust. the day after the assignment, the trust filed for foreclosure. my point is, dont do a mod without a lawyer. it seems to me the servicer obviously scammed us into signing this to create fresh paperwork it then could assign to the trust for foreclosure purposes. i live in a non-judicial state (massachusetts) where the trust can walk in with the mortgage and loan mod to get a rubber stamp approval to foreclose, even though there are parties in the chain of title who obviously committed fraud. my original lender went bankrupt 4 months after i signed the loan, and they never assigned or conveyed anything to anyone in the land records. in fact, the trust used an “allonge to note” along with the mortgage and mod in their filings to forelcose, something ive never seen before. anyone who looks at the allonge would know its bogus. the person who signed it squiggled initials on the signature line that no one could decipher. my belief is this allonge was fabricated to strengthen the flimsy documentation they had. why would the original lender need to create an allonge to note when the main reason for the allonge is for space to endorse the document when no more space exists on the original? coming from the original lender, the note should have had plenty of space for endorsements. with all that being said, im hoping someone out there can answer this question: since i affirmed that my servicer was the lender and holder of my mortgage when they clearly werent, does the mod create a second debt? isnt my chain of title now flawed because there is a party on record modifying my mortgage and the record is devoid of any evidence the original lender conveyed it to them?

  11. I believe that even the fact that the Media recognizes and acknowledges we have a “problem” with foreclosures it’s part of the well organized plan, ” go out there and make seem as if we all know we have a problem, BUT don’t say the F word no matter what”, the manipulators thieves must be telling the media, because that’s exactly what they are doing. I find it extremely hilarious how they “dance” around the real issue; it is right there!!!!! and yet they choose to look the other way while the stink of the hot steaming pile of s**ht gets right under their noses!! unbelievable!! And that goes for EVERYBODY involved and somehow tied to the ponzy, and the ones that could and should be doing something about it.

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