BUYING OR LENDING ON A HOUSE IS STILL RISKY

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Editor’s Analysis: It all started with flooding the market with money in deals that even Alan Greenspan couldn’t understand with an army of over 100 PHD’s. Median income was going down, median expenses were going up, and people were having an increasingly difficult time making ends meet even with 3 jobs per household.

Along came Wall Street and convinced millions of homeowners that they could afford “payments” that would reduce their monthly rent or current mortgage payment and give them an investment that would rise in value without any work on their part. It was a lie.

For a while it worked. Between the flood of money coming in, the absence of underwriting standards and the complicity of developers who raised prices to give greater credence to the actual price of the house, people were lured into deals where the value of the house was falsely inflated by bank manipulation of appraisers and then die was cast.

The payments would go up beyond anything the borrowers could ever afford, the house values would go down leaving the borrowers with a debt much higher than the house would ever be valued for the foreseeable future and the good and bad loans would collapse, providing a payoff to banks and other speculators who bet on a sure thing: foreclosures would rock the nation, the value of the bonds sold to pension funds would plummet and the payoff on the bet went to the banks instead of the investors and borrowers who were defrauded.

So now we are back we we started from in 2001 — median home prices at around $154,000, which was still out of reach for many borrowers. Home prices had been falsely inflated to a median price that was over 140% of the starting prices. While realtors are trumpeting the low prices as the reason for  growth in the volume of home sales, Zillow continues to forecast a continued slide in prices for 2012.

The Banks made a mountain of money doing the deal telling investors that these were Triple A rated insured investments while knowing that the bulk of the loans were garbage and that for good measure they created transactions within each pool where the best tier of loans would still be brought down in a crash because they had guaranteed the worst tier. There was no way for the Banks to lose — and plenty for them to make, especially when the U.S. Government paid off the bets.

Most of us who analyze the real figures and apply the context of illicit behavior on the part of the banks realize two things: (1) as long as wrongful foreclosures continue, the housing market will continue to drag down our economy and (2) the balance sheets of the large banks who created this mess is vastly overstated on assets and vastly understated on liabilities.

At some point, this will all come home to roost. In the meanwhile, buying a house is risky not only because the value is mostly likely going down, but because of the corruption of title by the Banks through the nation, there is no assurance that buying a house will actually get you clear title unencumbered by prior mortgages of record.

NEW YORK (CNNMoney) — Home prices fell to their lowest point in more than a decade in January, which helped to lift the pace of home sales, according to a report from an industry trade group.

The National Association of Realtors reported that the median home price in January fell 2% from December to $154,700. That’s the lowest price reading since November 2001, before the run-up in home prices that became known as the housing bubble.

The median price is the point at which half of homes are sold for a higher price, and half are sold at a lower price. (Multi-million dollar foreclosures)

Serving as a drag on existing home prices is a large inventory of homes in foreclosure. Distressed home sales, which includes homes in foreclosure and so-called short sales in which the home is sold for less than what is owed on the mortgage, made up 35% of sales in January.

“Prices will continue to fall through the first half of 2012 due to the high share of distressed sales,” said Stuart Hoffman, chief economist with PNC Financial. “The recent agreement between the big mortgage servicers, state attorneys general and the Obama administration will also result in more homes going to foreclosure over the next few months, adding to downward pressure on prices.”

But the pace of sales rose to the highest level since May of 2010, helped by the low prices and rock-bottom mortgage rates. The seasonally-adjusted annual sales pace of 4.57 million homes was up slightly from the revised 4.38 million in December. The last time homes sold at that pace, buyers were rushing to qualify for an $8,000 homebuyer’s tax credit that was about to expire. The latest reading was roughly in line with the expectations of economists surveyed by Briefing.com.

“The uptrend in home sales is in line with all of the underlying fundamentals — pent-up household formation, record-low mortgage interest rates, bargain home prices, sustained job creation and rising rents,” said Lawrence Yun, chief economist for the Realtors.

The housing market has been showing signs of recovery in recent months. The combination of low mortgage rates and a decline in home prices means homes are more affordable than they’ve been in decades. PNC’s Hoffman agreed that the report is a further sign of recovery in the market, although he cautioned “it will remain a long process.”

21 Responses

  1. I’m in Los Angeles county, California.

  2. No problem, jg—I’ve already been kicked out of my house by the fraudsters—I’ve got nothing to lose at this point…and I would have NO problem going on TV or in front of people and telling it like it is—justice is the MOST important thing to me—I’ll talk to anyone who wants to know anything about my situation, and they can see any of my docs… cariemac9@gmail.com

  3. “We people that lost houses will never be given the opportunity to get them back”, said Stanley. The fat lady aint signing on that one, Stanley. Yet. Here I do have to note that the banksters are hard, hard at work lobbying for legislation like that piece of crap in Florida to make that statement true. Floridians must take the fight to the street, take it to the media, picket government offices, do something (if I got that proposed legislation right) We just are out of excuses for stuff going on ‘while we sleep’. I know it’s not fair, you know it’s not fair, but there it is. I don’t see myself as exempt. I was also sleeping. We all know it’s a big battle to fight organized crime. There’s already been an awful lot of that bankster-friendly bs legislation and believe me, it’s hurting us big time. The deed of trust has been so mangled, not only by MERS, but by our own dear legislators.

    I have an idea and I humbly call on all attorneys who might contribute some time and effort. There is a way to arrange that even if I’m not the one who finds that way.
    Maybe one attorney could be the attorney of record, even if it means pro hac vice, and everyone else interested could contribute. “Do it for one, do it for all”. Carie has a situation which could be the case to take on by a consortium of homeowner attorneys. Some paralegal who knows s from shortcakes could review the non-record attorneys contributions to the record attorney. If there aren’t deficiencies, etc. in her foreclosure docs, for starters, I’d be pretty surprised. I know you homeowner attorneys are busy, but would you not benefit from a concerted effort and the pooling of resources? Is there anyone who will step forward? This wasn’t carie’s idea – it’s mine. Carie, if you’re on board, post your email address and your state here and so state? Time may be of the essence. If attorneys will at least consider the idea, please contact carie if she posts her email here for that purpose. And carie, if no one takes me up on this, I’ll be more than sorry to have given you any false hope.
    Again, do it for one, do it for all.

  4. And, of course, with all that printing of money and bonds going on, worldwide, a few people go overboard with US fake bonds…

    What a global mess!!!

    http://edition.cnn.com/2012/02/17/world/europe/italy-counterfeit-bonds/index.html?hpt=hp_t3

  5. Lien Law Clause & Settlements! Read it and weap1
    Deed of Mortgages
    Coveant Section 13 of Lien Law
    Covenant not required in Deeds from Referees and persons appointed by court like the auditor ratification of audits!

  6. To check the newest bank resignations worlwide with dates, go to

    http://gizadeathstar.com/2012/02/news-and-views-from-the-nefarium-feb-23-2012/

    Note that Kenya, Credit Suisse, Pakistan and Blankfein (Goldman Sachs) didn’t make the first list. The new one has updated news since last week.

  7. […] Filed under: bubble, CDO, CORRUPTION, currency, Eviction, foreclosure, GTC | Honor, Investor, Mortgage, securities fraud Tagged: 60 minutes, affidavits • attesting • Daniel Edstrom • DTC-Systems • fabricating • false information • false sworn documents • foreclose • illicit business practices • improper statements • imp, AHMSI, appraisal fraud, attorney general, auction fraud, Chris Koster, credit bids, DocX Indictment, foreclosure fraud, FORECLOSURE SETTLEMENT, foreclosures, forgery, housing market, housing prices, investors, linda green, LPS, Missouri, mortgage fruad, mortgages, Robo-Signing, settlement, strategic default, Wells Fargo Livinglies’s Weblog […]

  8. MERCHANT BANKS NOT BIBLICAL WARBURG & ROCERFELLA’S DOING! OH THEY ARE NOT DOING THEY JUST OWN AND THEIR ‘INSTITUTIONAL PRIVATE INVESTOR/BROKER DOING’.
    THEY DON’T BELIEVE IN AFTER-LIFE AND SOW WHAT THEY REAP.

    COMMECIAL CLIENTS OF MERCHANT BANKS WHO SPIN OVER Internet for nationwide commerical clients business for valuation of loan flips for private owners of the land the beneficial rights of the title or deed is held by trustee of insurance company eVault.

    A legal agreement where a trustee is appointed to maintain ownership of a piece of real property for the benefit of another party: namely, the beneficiary of the trust. Land trusts are used by several different types of organizations for several reasons; nonprofit entities use them to hold conservation easements, and corporations and investment groups use them to accumulate large portions of land and related assets.

    These agreements can also be known as Illinois-type land trusts.

    Corporations and other institutional buyers sometimes use these trusts to discreetly purchase large tracts of land so as to avoid publicity. Publicity could cause the price of further land purchases to increase and potentially disrupt the firm’s plans for developing or profiting from the land. Individuals usually use land trusts for privacy and to avoid probate.

    And all of the ‘Entitlements’, and ‘Encumbrances’, and ‘Restrictions’, and ‘Liens’ are valuable commodities in the Secondary Market where CONGRESS left you and I to fend for ourselves!

    In the Seoncary Market intangible rights are governed by individual contracts, sales contracts in exchange, for — deed for example of title broker insures ‘sales contract that grants the lessee of a right to extend the period of the lease beyond the original length of time care of structured investment vehicles, real estate mortage investment conduits loan flips why? The OWNERS of real property benefit and continue to hold ownership or garner additional properties over time in a profitable pyramid scheme.

    CONGRESS ‘FORCED’ TO PROTECT IT’S ‘CENTRAL BANK’ OBLIGATIONS, USING PUBLIC MONEY TO PAYBACK, ATTACH ALL KINDS OF CONCEALED FEES PAYABLE TO ‘FDIC’, FHA, HUD, PROTECTING COMMERCIAL CLIENTS.

    EVERY HEAR OF NATIONAL DEFAULT TITLE SERVICES $50 TECHNOLOGY HUD1 FEE YOU CONSUMER PAY FOR! INFLATED RECORDING FEE OF $10 WHERE DOES THE $40 GO?

    WHEN Financial institutions faced the risk imposed by private loan flips the placed on the books a civil remedy to protect the private equity positions and obligations of real investors, real creditors including all backed by Full Faith and Credit of These United States of America whose ‘private investors’ like Variable Investors Trust Fund are investing directly in the land and hold same obligations of creditor and consumer!

    And because CONGRESS exempted all laws and regulations and left unregulated the secondary market, its been a free for all! Leaving nationwide consumers harmed by ‘loan flips’ alike land flips.

    FREDDIE ‘Mortgage Loan Participation Certificates’ Investors and Trustees self-insurance of real estate mortgage investments conduits by SERVICERS Fannie Mae of Trust Funds, Direct Servicers ‘Wells Fargo & Chase’ private equity investors’ REIT LLC’s and REMIC Loan Flips, and Company, Inc, c/o First American Title …Servicers, Dealers, Brokers, Distributors, Agents do business selling and reselling intangile rights and the real owners of beneficial interests hold real title.

    REMIC is a structured investment vehicle for loan flips in which ‘Beneficiary’ and “Trustees’ and “Investors’ Self-Insures in their self-governed and “Unregulated Secondary Market” related structured products investments NOTES ‘SALE’ C/O BAILEE WHO CREATES A CUSIP, WHO PLACES ‘CUSIP’ INTO TRANCHE, WHO SELF INSURES EACH ‘CONTRACT’ WITH SURETY GUARANTOR WHO HOLDS THE STOCK AND CASH! AND IS THE BOARD OVER ‘arms length’ trust funds and certificates who hold insurance rights as trustee, grantee, guarantee, leaving ‘grantor, trustor/homeowner left sucking downwind loan flips which are organized to default by organized group of underwriters of private wealth who have organized and orchestrated the biggest ponzi scheme in America’s history, Phase I successful S&L Bailout, and existing obligations of Resolution Trust Company exist today and tomorrow through exchanges of like kind property.

    Commodities: Secondary Market buyers trade everything! Whether land among its members, loans, insurance policies, entitlements (structured settlement buyouts a great example), in essence controlling value of futures ‘ENRON-Like’ promising to pay inflated value of today during expected short sale of tomorrow! The increasing price with each transaction yields quite a spread, cornucopia. Each group will then finally unload the loans and real property onto an unsuspecting outside buyers at prices the unsuspecting buyer will likely never be able to recoup from its own sale.

    STATE OF CALIFORNIA GOVERNMENT BID ACCEPTED BY ‘FIRST AMERICAN TITLE’ HAZARD DEFAULT REPORTS IF YOU WANT TO BUY ‘REO’ FROM FREDDIE – GOT TO BUY THROUGH THE SPECIFIED VENDOR STATE IN AGREEMENT.

    DOCSTOC COM VALUABLE INFORMATION. THAKK YOU AMY

  9. I can not read well whether the government is on the borrower’s side or the criminal enterprise’ side to lie to the borrowers.

    http://finance.yahoo.com/news/shaun-donovan-why-mortgage-settlement-110600083.html?l=1

  10. A Foreclosure Trial Transcript, Evidentiary Objections Made and SUSTAINED, Judgment for Defendant!
    February 23rd, 2012 | Author: Matthew D. Weidner, Esq.
    http://mattweidnerlaw.com/blog/2012/02/a-foreclosure-trial-transcript-evidentiary-objections-made-and-sustained-judgment-for-defendant/

    I want to share with the class a transcript of a foreclosure trial where defense counsel rattles off the evidentiary objections, many of which were properly sustained by the judge.

    Servicers have a very real problem proving their cases over proper and clear evidence objections….they just cannot link up their evidence from one servicer to another without real effort…and in some cases they will not be able to do it.

    So this is a roadmap that shows how to do it correctly….bone up folks, work hard.

    Fight like every single case represents the very fate and future of the entire American judicial system.

    because every case does

    PARRISTRANSCRIPT
    http://mattweidnerlaw.com/blog/wp-content/uploads/2012/02/PARRISTRANSCRIPT.pdf

  11. http://www.hudclips.org/download/HUD-27011 (this is the link to Part A form)

    “There are two primary components to filing an FHA insurance claim via HUD Form 27011. The first stage, Part A, notifies HUD that the property is coming and

    triggers the title transfer of the property.

    jg: huh?

    It is through this process that a servicer receives the unpaid principal balance and debenture interest related to a foreclosed loan.

    The second part, Part B, is processed after the title work is approved by HUD and requests reimbursement to servicers for all out-of-pocket advances – both escrow advances and corporate advances (court and attorney costs, preservation and protection expenses) – incurred throughout the delinquency of a loan and the foreclosure process.

    The timeline-sensitive Part A tracks all of the milestones a loan hits between the 60th day of delinquency and the completion of a foreclosure action. Servicers’ claims processors must take painstaking care to ensure their calculations for

    **accrued-interest reimbursement**

    correctly reflect the activity on a given loan, applying timeline forbearance, when necessary (e.g., due to bankruptcy or other approved hold reason).

    jg: reimbursement because it was paid by the servicer to whom and WHY? guarantee or some other reason which is ?? If payment were advanced to the investor, then the investor is getting paid, so “loan” / payment stream, whatever, is not in default as to investor, is it? If investor got his, then what default could the sec’n trustee call? None, at least certainly not on behalf of the trust.
    So WHO is calling default? It may well say somewhere that party A who makes payment stream to investor as guarantee or alt to taking loan from pool – got me – may take some action on the loan, the UCC and statute of frauds notwithstanding. Okay, just where is this to be found? Where is the evidence of the authority, if that is the reliance?
    We just can’t attack an unknown and this has created patently unfair bargaining power and I think it could be tied to denial of due
    process.
    We need to learn everything little thing we can about any kind of insurance claim (pmi, fha insurance, va guarantee) at least til we figure out how to get at credit default swaps and their ramifications in any meaningful way. We need facts.

  12. Yes, the Trustee’s Deed is recorded…but—my “all caps” Grant Deed was recorded after that…

  13. carie, I don’t have anything to offer. Wish I did. X: Is the trustee’s deed recorded? You’re not divested of your title and interest IMO until it is.

  14. John Gault.

    FHA sues MortgageIT for FHA origination violations. At one point they discovered A CLOSET full of FHA violation letters unopened at MortgageIT’s office in NY. Anyhow sue them for billions.

    Now FHFA/Fannie Mae sues MortgageIT for $15 billion or something for same stuff.

    Yet I am supposed to keep paying those crooks at M.IT when I have same junk on my origination??????

    No no and no.

  15. This is interesting. It’s from an article which mentions the dept of justice’s suit against Deutsche and MortgageIt under the False Claims Act. Apparently FHA is fighting back about claims on defaults and they are auditing files to see what crud was pulled at origination, etc. for the purpose of denying the bankster’s claim. If I remember correctly, last week or so I read about FHA telling one claimant to eat a rock on a bunch of FHA-insurance claims because the claimant was not FHA approved. Here is a quote, which the article says is from
    FBR Capital Markets analyst Paul Miller:

    “We’ve heard anecdotally that FHA can pretty much get whatever they want from banks, because nobody’s doing anything right,” Miller says.”

    I’m good with FHA getting some relief, but it would be nice if the
    homeowner got some of that relief. Am I nuts or couldn’t FHA and VA
    have declined claims or however that would be, bought out the allegedly defaulted loans and modified the loans themselves with some of that good old HAMP money and sold bonds like is proposed in I think Arizona right now? (and NO Mers) How tough would it have been to set up a servicing arm or contract one? If HAMP could be legislated, why not this route? Or do we get back to the same old issue which is that no one knows who the right party to pay is, so let’s foist it on the American homeowner? They would have at least had the clout to get an indemnification. Grrrrrr.
    FHA requires (remember I mentioned licensing and that any co. which services FHA loans must be FHA approved to do so) that servicers have “face-to-face contact with delinquent homeowners within a prescribed amt of time” (which is news to me) , and gee shockaroo, they haven’t done this that I know of and must not have because the article seems to indicate they’re a tad concerned about it given FHA’s
    posture to deny claims just now.
    When they don’t, they are clearly in violation of their contract with FHA. I don’t know if the provision exists as a right to the homeowner leading to a cause of action by the homeowner for its violation, but if one had an FHA loan and missed out on the required ‘face-to-face contact’ FHA requires of servicers on delinquent loans, it might be worth finding out. I have to think the borrower is at least an intended
    beneficiary of that provision. The bankster might argue it’s merely
    loss mitigation to solely benefit FHA or anyone BUT the borrower. Bah humbug! I don’t know what the purpose of the face to face is. It’s not for nothing, tho, so maybe it was to work something out. Here is a link to see if your bankster-servicer and or your original lender is FHA approved:

    http://www.hud.gov/ll/code/llslcrit.cfm

    If your bankster-servicer (of your FHA loan) is not on this list, does this indicate something, like that your loan has been written off, yet still had some collection rights allegedly sold nonetheless to a non-FHA approved default servicer? Is the non-FHA approved status a clue? (I stumble thru those words – not my thing, this write-off but sold collection rights. )
    If you had an FHA loan and ‘missed out’ on your face to face, you might at least file a complaint with FHA if nothing else to put the pressure on some more. It seems to me if the borrower were a beneficiary of that provision, FHA should take SOME kind of action and/ or you could find out how it might benefit you. I wouldn’t admit default; I’d just say so and so said I was in default and then failed
    to give me or apprise me of my right to a face to face.

  16. Thanks, I’ll check it out.

  17. Carie,

    Have you ever tried to contact the attorneys on Mandelman’s list of trusted attorneys? Those are the guys who really fight foreclosure and they may have some ideas to give you before you go there.

  18. The real estate agent and his lawyer who “bought my house” at the (illegal) trustee’s sale are attempting to evict me, but I am using various delay tactics…I will leave soon, but I sent them an email basically telling them I won’t fight them over title in the future–for a PRICE…anyway, the lawyer emailed me and said let’s have a meeting…what should my price be, friends? Any ideas? It’s only me and my husband on the Grant Deed…which I re-recorded with our names in all caps…

  19. We people that lost houses will never be given the opportunity to get them back. We homeowners lost one of our inalienable rights edowed by the Creator. The right to buy, obtain,own and dispose of property. In Florida they want to pass a law that says if the house was foreclosed on (stolen) and sold, the former homowner has no right to it. So any lesser stolen property will be returned to its rightful owner. Servicers who stole the homes can afford to sell them at anartificially low rate since the servicer obtained the home for nothing. In addition the servicer says no relative of the foreclosed homeowner can rent or buy the home. So after the servicer ruins the credit of the foreclosed homeowner who can afford to purchase such a deal. To further demise the person who lost the home will futher receive a 1099a by the servicer or, whomever was deeded the home in the illegal foreclosure process, and be required to pay more taxes because of this loan forgiveness.
    Stan

  20. Yes titles are beyond repair. Title reports are a joke. They will only tell you what is recorded on record. What about the title company that is still listed as the “trustee” on record telling you where the loan went? Wouldn’t they know this? Wouldn’t they be able to tell you the dates they were “substituted” or replaced? When I got my breach letter on a rental property, It stated the DOT you have with the “Original trustee” is in breach of contract. (Not verbatim just typing what I remember). So were the original title companies just “leasing” their names like the “originators” of these loans?

    Anyway, what to do in this scenario. Lender on Record (originator) is long gone. 10 G’s later Went to court got a default judment against him. In the process of recording the judgement on the County Recorder/Register of deeds.

    To date no assignment has been done. Aurora has provided me with an “unrecorded” assignment. This “assignment” was supposedly done on the last day the original “lender” was in business. Anyway MERS is the beneficiary.

    O and the original title company was purchased by one of it’s parent companies. I’m not exactly sure. The parent company LandAmerica went bankrupt on Nov 26,2008. Part of the company was sold to fidelity. (Not exactly sure where transnation went in the transaction) The subsiday Transnation is still listed on my DOT. Anyway with both of these parties gone only leaves MERS.

    I would think that this would be enough to make the note unsecured not to mention the Mers bifurcation argument. (O wait AZ has reasoned that MERS is legit. They don’t split the note from the deed.) Our beautiful state has also determined that the DOT follows the note automatically. In Hogan versus wamu the judge asked the banks attorney, why he didn’t just show the plantiff a “copy” of the note. Yes a copy.

    WTF. Any ideas what to do from here? Any suggestions? Thanks!

  21. i still say we have to go down to 1997 prices for the reset just to begin (and of course that doesnt count for all the fraud of the past 10 years)…..there is going to have to be a debt jubilee…..FOR EVERYONE

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