3 Million More on the Brink of Foreclosure

Seniors Leading the New Wave of Foreclosures

Editor’s Comment: I think the figure is closer to 10 million, but I went with the title of the article by Mandi Woodruff on Business Insider. Unless the mortgages are corrected to reality in the marketplace instead of the fiction that prevailed when they were defectively “originated”, households are going to be doubling and tripling up because nobody is going to keep paying on a mortgage debt that they know was already paid off by bailout, insurance and credit default swaps. The creditor is only entitled to one payment. The Banks are holding those payments and claiming it as their own when at no time did they ever fund or buy a mortgage loan. This is crazy.

Another reason is that nobody is going to pay on a loan, even if it was real, where the principal balance is twice the value of the property. If you owned stock in a company where the CEO did that, you’d want him fired, claiming that he is depleting and diluting the assets of the company. Why does any other principle apply to reduction of principal? This is crazy.

And a third reason out of many more is that seniors were lured into these nutty mortgages and trusted the liars who sold them these loan products only to find themselves with payments they cannot afford on their fixed incomes — in homes they already were living without debt or with very little. Whether you want to call that moral hazard, or theft or bad judgment on the borrower’s part the facts are that millions of these people are going to be forced to walk away from their homes abandoning them to the completely bogus foreclosure process. And the fact is that the more foreclosures we have, the worse the economy is going to be.

Unless unemployment goes down and median income goes up, the problems are only going to get worse. It really is that simple. If people don’t have the money, they can’t afford to pay. Tens of millions of Americans have now depleted all their savings, retirement funds and credit. Where do you think the money is going to come from to buy goods and services? Perhaps the Moon. We haven;t securitized that yet, at least not that I know about.

NIGHTMARE ON MAIN STREET

BY MANDI WOODRUFF, WWW.BUSINESS INSIDER.COM

As many as 3 million American seniors, arguably the most vulnerable consumers in the country, are on the brink of losing their home, according to a recent AARP study.

In its report “Nightmare on Main Street,” the group looked at the mortgage crisis’ effect on the over-50 sect for the first time. As the title suggests, the outlook is far from bright.

Americans over the age of 50 accounted for 3.5 million underwater home loans as of December 2011––about 16 percent of all loans issued to that age group.

“The homeownership experience has changed from the American dream to the American nightmare for millions of older homeowners,” the report says. “The collapse of the housing market that began in 2006 continues to be reflected in rising numbers of mortgage delinquencies and foreclosures.”

Between 2007 and 2011, 1.5 million older Americans lost their homes to foreclosure during the mortgage crisis, while the foreclosure rate for homeowners over age 50 ballooned from from 0.3 percent in 2007 to 2.9 percent in 201. For those with seriously delinquent loans – those in foreclosure or more than 90 days past due, the percentage went from from 1.1 percent in 2007 to 6.0 percent in 2011.

And the older the homeowner, the more susceptible to foreclosure they are, the report shows, with the biggest jump in mortgage debt occurring in those over age 75.

“The collapse of the housing market has been especially painful for older homeowners,” said Debra Whitman, AARP Executive Vice President for Policy.  “Older homeowners often rely on their home equity to finance their needs in retirement – things like health care, home maintenance and other unexpected needs. The fact that so many older Americans have no equity at all is troubling.”

The group pins most of the blame on public policy programs it says have been “inadequate” in helping older consumers out of unhealthy mortgage situations.

23 Responses

  1. @Martha: that’s the only thing title insurers do: robo-signing.

  2. since 1999 I, and my elderly husband have been preyed upon by agents acting under the cloak of First American. Loan after loan, sometimes two per year was foisted upon us. After 2003, whne i refused to sign one time, and rescinded inside three days, i was no loanger alowed to look at the loan documents, and only foreced to sign deeds of trust, documents they sent over with just a notary, of that they HID, and forged my name to a totally different set.

    I now have the truth of what was occurring, and I did not notice this before, as i never had a reason to check the recorded documents, and never, for the most part personally oaid the bills.

    time after time, year after year, the deeds were sent out were for DIFFERENT LOTS, then what was the actual lot i was living in.
    I now can recall signing deeds on over three different lots over the years, up until 1999, when i was only living in what was actually lot 392.

    how many other secret hidden mortgages are out there attached to my name or household?

    now one ever pays attention to the lot number…. and this was how they did this to me.

    they even mDe loan after loan, when they had knowlege i did not even legally own lot 392.
    A man in Israel owns it, and this court system has no jurisdiction to take away his right to property, as it was not his fault a grant deed was forged in his name.

    lot, after lot I can now remember signing on, and those loans are out there… sooner or later, the truth comes out.

  3. @Mass R: please copy past link of your browser address of: “Freddie and Fannie decoy assignment”

  4. More and more finance officials are clamoring for the breaking up of TBTF. The endless party bickering is being replaced by an across-the-isle consensus. Look at some of the names involved. Entire article can be read here.

    http://economix.blogs.nytimes.com/2012/08/02/under-pressure-megabanks-rely-on-three-myths/?ref=economy

    And Barclays – which had bulked up on the strength of its capital-market activities – acknowledged that traders from that part of the company had conspired to rig Libor (the London Interbank Offered Rate), a crucial benchmark for global interest rates. In the ensuing public outcry, its top two executives were forced out.

    And last week Sanford I. Weill, who amassed a vast fortune building Citigroup and pushing to dismantle the constraints on such megabanks’ activities, acknowledged that the entire exercise had been a mistake: “I’m suggesting that they be broken up so that the taxpayer will never be at risk, the depositors won’t be at risk, the leverage of the banks will be something reasonable.”

    According to American Banker (whose coverage is available by subscription only), former top executives calling for the biggest banks to be broken up now include Philip J. Purcell, the former chief executive of Morgan Stanley; John Reed, the former chairman of Citigroup; and David Komansky, the former chief executive of Merrill Lynch.

    Backed into a corner, representatives of these too-big-to-fail banks and their allies are forced to fall back on perpetuating three myths.

    First, their critics are “populists” who do not understand banking or economics. But this is belied by the credentials of the people raising serious issues with how global megabanks currently operate.

    American Banker highlights the critiques of Richard W. Fisher, president of the Federal Reserve Bank of Dallas and an experienced financial industry executive; Thomas Hoenig, former president of the Federal Reserve Bank of Kansas City and now the No. 2 official at the Federal Deposit Insurance Corporation; and Sheila C. Bair, former head of the F.D.I.C. and now the chairwoman of her own Systemic Risk Council (of which I am a member).

    As I wrote here last week, Sarah Bloom Raskin, a governor of the Federal Reserve, has emerged as an important voice calling for rethinking crucial aspects of big banks, including why they should have implicit government backing for their securities and trading operations. Mervyn King, governor of the Bank of England, and Jon Huntsman, the former Republican presidential candidate, have also expressed articulate and well-informed proposals for making big banks less dangerous – primarily by forcing them to become smaller.

  5. I believe I may have a much clearer idea of whom I will vote for. Entire article can be found here:

    http://www.thenation.com/blog/169204/presidential-candidate-whos-willing-get-arrested-fight-foreclosure-abuse#

    A Presidential Candidate Willing to Get Arrested to Fight Foreclosure Abuse
    John Nichols on August 2, 2012 – 11:26 AM ET

    It is not quite true that a third-party presidential candidate has to get arrested to get attention from the media. Dr. Jill Stein, the Green Party’s nominee for the presidency this year, has gotten her share of attention — in part because she is a genuinely impressive contender, in part because her campaign has been strikingly focused and professional in its approach.

    But Stein got a good deal of attention Wednesday for a good reason. She was busted with fellow Greens and activists from the Poor People’s Economic Human Rights Campaign outside the Philadelphia office of Fannie Mae, the government-backed mortgage lender that is foreclosing on precisely the people it is supposed to help.

    Most politicians avoid saying — let alone doing — anything of consequence regarding the foreclosure crisis. But Stein, her vice presidential running-mate (Cheri Honkala, who last year mounted a campaign for sheriff in Philadelphia as part of an anti-foreclosure fight), labor lawyer James Moran and Sister Margaret McKenna of the Medical Mission Sisters were arrested after attempting to gain access to the Fannie Mae office through an adjacent financial institution on Philadelphia’s “Bankers Row.”

    The charge was one that any activist would be proud of: “defiant trespassing.”

    Why get aggressive with Fannie Mae?

    Art a point when an estimated eight million American families face eviction from their homes due to the threat of foreclosure, and when roughly one third of all mortgage holders are “underwater” — that’s the term for when a homeowner owes more to his or her lenders than their property would be worth if they attempted to sell it — the answer is obvious enough.

    But what makes Stein put things is perspective Wednesday when she explained that: “The developers and financiers made trillions of dollars through the housing bubble and the imposition of crushing debt on homeowners. And when homeowners could no longer pay them what they demanded, they went to government and got trillions of dollars of bailouts. Every effort of the Obama Administration has been to prop this system up and keep it going at taxpayer expense. It’s time for this game to end. It’s time for the laws be written to protect the victims and not the perpetrators. It’s time for a new deal for America, and a Green New Deal is what we will deliver on taking office. “

  6. Anyone not yet convinced that pharma and the financial sector have destroyed this country, prepare for big surprises.

    The entire article can be found at http://www.nj.com/business/index.ssf/2012/08/bristol-myers_squibb_exec_arre.html

    Bristol-Myers Squibb exec arrested, charged with insider trading

    Published: Thursday, August 02, 2012, 10:15 AM Updated: Thursday, August 02, 2012, 11:50 AM

    A Bristol-Myers Squibb executive was arrested this morning and charged with insider trading, federal authorities said.

    A Bristol-Myers Squibb Co. executive, Robert Ramnarine, illegally made $311,361 by buying stock options in three companies targeted for acquisition, the Federal Bureau of Investigation charged in an insider-trading complaint.

    Ramnarine, 45, was arrested this morning by the FBI and will appear today in federal court in Newark, New Jersey, according to a statement by U.S. Attorney Paul Fishman. Ramnarine held high-level positions including executive director of pensions and savings investments and assistant treasurer for capital markets, the FBI said.

  7. For all of you,

    Some of us are in suit. Some of us aren’t. Some of us have even lost our houses already. It still doesn’t stop there. Even if you believe that it is “water under the bridge”, it isn’t. Some of us will drag that skeleton for years to come and will, eventually, still need to approach the court to be, if not made whole, at least left alone once and for all.

    Even if the house is gone, if you had a MERS atrocity, the data keeps on changing even after foreclosure. It wouldn’t hurt to regularly go on MERS’ site and check the property address with your name. You may be surprised to see that there are still active loans under your name, some new ones having been entered after foreclosure (yes!), some new players showing up out of nowhere, etc. I just found out a new entity in my MERS records for my 2nd loan as well as a new trustee, 6 months after a recordation was done by yet another entity (JDB) to retroactively justify a previous alleged assignment. Note that the new MERS data is less than 2 months old. i don’t know who created it and when. I keep printing everything I find. Eventually, MERS will have to produce a complete timeline of every information ever entered in its system for every single property. You might as well get ahead of the game: that will give you amunitions to ask the right questions when time comes.

    The idea I propose is to gather a maximum of documents showing complete chaos everywhere in mortgages. The more chaos we can document and the more likely courts will get fed up. The tide is already turning but there is no harm in speeding up the process.

  8. The reality is: the majority of these foreclosures are in non-judicial states. If anyone went to the DMV with a copy of a signed title, you could not register the vehicle. If you use the car title comparison it becomes easy to get and explain to a judge. The fact is, the DMV has more oversight than the magistrates, judges and deed custodians.

    The issue goes to the original documents. My deed says, New Century as the “lender”. That is a lie. New Century is a broker-originator and has no financial interest in the property/deed. If the originator-broker borrowed money to fund my loan, they in essence are responsible to pay this loan…now, if they did not properly include the “lender” and name them as the “party in interest” their authority is moot, does not exist, making the deed unenforceable, under contract law.

    If you have no loss, or monetary interest in a loan, under the law you have no right to foreclose…you have no loss, you’ve invested nothing. Fees were paid to compensate the originator.

    Now, further this with lines of credit, which cannot establish with certainty which line of credit funded, which property (sloppy record keeping). Additionally, if they named the lender, they would not be able to sell copies of the notes, multiple times, very specific behavior. Then they default on their obligations to pay back the lender and file bankruptcy or go out of business, then the homeowner is the only place to go for compensation. But, if you have no idea where the funds were dispensed, you cannot follow the lien perfection process, making the note unsecured. Also, the only way to get the deed of trust is to fabricate documents. Because most originators kept or shredded the original documents to further the financial theft.

    So, when the judge says, he is not going to give a homeowner a free house, he is actually giving an unidentified party a “free house” with no verifiable paperwork and no proven loss in court proceedings. The thing is: the DMV would not allow a vehicle to be transferred this way and we are talking about a home.

    This behavior, under the constitution is a violation of due process and every rule of law. Homeowners have a RIGHT to properly defend the accusations against them as “deadbeats” and have a solid right to present any evidence proving the “intentional” conversion of their property.

    And the last point: there cannot be a proper assignment of rights under the note and deed if the lender was not properly designated and or the borrower did not know who they owed at the time of closing and contractually agreed to those contract provisions. Everything from the signing of the closing documents is a lie, intended to deceive, even the lender and investors. The sub-prime originators “intentionally duped everyone, to steal BILLIONS. Footnote: no sympathy here, as the default insurance, FDIC payouts and TARP money has paid all of these cats, long ago. Most of your notes are paid in full and lie in some other county’s deed office.

  9. Did you check out the “Freddie and Fannie decoy assignment” ? Google it. It was on Mandelman’s Blog. Listen to the podcast with him, and an Attorney in Maine. It’s a must hear. It was touched upon in the Eaton case.

  10. Here is Judge Stearn’s Order on the Mtn to Dismiss the HAMP
    class-A complaint. Took me awhile to find that sucker! I’ll probably put the mtd at scribd, and I’ll be sure to link it else you might not find it since it belongs under “creative writing”.

    http://www.scribd.com/doc/101825327/JP-MORGAN-CHASE-HAMP-CLASS-ACTION-ORDER-ON-MOTION-TO-DISMISS

    I haven’t read the complaint(s) yet. We need a ruling in this deal which results in some stinking changes based on reality.

  11. @enraged – that was uplifting, the lt gov thing. You’re so good at finding certain things that I’m not….could you find any material on the plan which was approved, a link, something? thanks

  12. JPMorgan Chase fails to end US mortgage modification lawsuit

    Tue Jul 31, 2012 2:36am IST

    * Homeowners claim bank misled them about modifications

    * Excess fees, unnecessary foreclosures alleged

    * Judge dubs some fee justifications “gibberish”

    By Jonathan Stempel

    NEW YORK, July 30 (Reuters) – A federal judge rejected JPMorgan Chase & Co’s bid to dismiss a lawsuit accusing it of misleading thousands of cash-strapped homeowners nationwide about modifying their mortgages.

    U.S. District Judge Richard Stearns in Boston on Friday let homeowners pursue claims that the largest U.S. bank systematically failed to keep its end of the bargain after signing up borrowers hoping to modify their mortgages under the federal Home Affordable Modification Program, or HAMP.

    Stearns also let stand claims that Morgan’s Chase unit drove homeowners deeper into debt by prolonging the modification process through “gross ineptitude,” sometimes adding fees to loans already in default and starting foreclosures while modifications were being negotiated.

    “(Some plaintiffs) allege that they would have fared better economically had their homes been foreclosed by Chase at the outset instead of at the end of a drawn-out and ultimately futile modification process that Chase had no real intention of honoring,” Stearns wrote. “These are, of course, allegations — but for present purposes, the court must credit them.”

    http://in.reuters.com/article/2012/07/30/jpmorgan-lawsuit-modifications-idINL2E8IU87V20120730

  13. Stunning Crimes of the Big Banks: Worse than Your Wildest Imagination
    Posted on August 1, 2012 by WashingtonsBlog

    Preface: Not all banks are criminal enterprises. The wrongdoing of a particular bank cannot be attributed to other banks without proof. But – as documented below – many of the biggest banks have engaged in unimaginably bad behavior.
    You Won’t Believe What They’ve Done …

    Here are just some of the improprieties by big banks:

    http://www.washingtonsblog.com/2012/08/big-banks-worse-than-you-think.html

  14. Wednesday, August 1, 2012
    Another Way Banks Abuse Homeowners and Distort Markets: Refusing to Take Title to Foreclosed Properties

    If there’s any way for banks to cut the cake to work to their advantage, they do.

    One example that has not gotten attention is that servicers will complete all the steps of a foreclosure, sometimes even scheduling the sheriff’s sale, and then not put in a bid. The reason? The home is of so little value that at even a $100 price, the bank deems it to be not worth the trouble.

    But keeping houses in limbo is a horrorshow for the old homeowner, who unknown to them, still owns the property (meaning they could have lived in in it and maintained it, preventing neighborhood blight) and is still on the hook for property taxes. And of course, these abandoned homes damage the value of neighboring properties.

    Read more at http://www.nakedcapitalism.com/2012/08/another-way-banks-abuse-homeowners-and-distort-markets-refusing-to-take-title-to-foreclosed-properties.html#71wv5Pg6yftZys1t.99

  15. @Enraged.

    I signed this and several other petitions. This S.O.B DeMarco and his Fannie and Freddie brotherhood deflated my neighborhood and now he wants me to pay for the crime. Fire the bastard . BS put him in jail for conspiracy and the destruction of property.

  16. I just read a homeowner’s motion (rep’d by att) wherein it was alleged by the homeowner that MERS is chartered with the securities and exchange commission as a ‘loan servicer’. Anyone ever heard of this?

  17. BSE,

    Have you signed the petition?

  18. 15 million under water home owners financially molested by Freddie and Fannie directed by their gang of banksters. Sandusky is in jail. Now it is time to prosecute DeMarco and kick him to the curb !

  19. JAIL DeMarco !

  20. Yesterday, FHFA acting-director Ed DeMarco offered a simultaneous slap in the face to the President, the Congress, the American economy, and 15 million+ underwater homeowners.

    After months of delaying a decision on whether to embrace principal reduction –and his own agency telling him such a policy would make the best economic sense — Ed DeMarco announced that Fannie Mae and Freddie Mac would not be undertaking principal reduction to help millions of struggling homeowners who owe more on their mortgage than their home is worth.1

    Tell President Obama: If DeMarco won’t change his mind, he needs to change jobs. Fire him now!

    It is disgraceful that Ed DeMarco would play politics with an issue that affects millions of American families. Further, it is disturbing that Ed DeMarco is so willing to publicly contradict the Administration and make tired, long-debunked claims about homeowner responsibility and Wall Street solvency.

    President Obama can fire DeMarco today, without the approval of Congress. If the President is serious about standing up to Wall Street on behalf of homeowners and the 99%, rarely has there been a better opportunity to take a clear stand.

    Sign the petition to President Obama and ask him to Fire Ed DeMarco and replace him with an FHFA director committed to a functioning economy for all, not just protecting Wall Street’s bottom line.

    http://www.npa-us.org/fire-demarco

  21. California’s Lt. Governor Gavin Newsom on Eminent Domain – A Politician with True Grit

    What the heck was that? It’s so rare, that I could hardly recognize it, but sure enough, it was a politician with true grit. Go figure.

    According to a story in Mortgage News Daily, California’s Lt. Governor Gavin Newsom took a couple of shots at a Washington D.C. trade group called the Securities Industry and Financial Markets Association (“SIFMA”) in response to their threatening San Bernardino County’s Board of Supervisors because they approved a plan to use eminent domain to seize and restructure underwater mortgages.

    And since San Bernardino did it, officials in Berkley and Chicago have done it as well, by approving similar plans. And that is just scaring the heck out of all sorts of mortgage banking types… so, how can that be a bad thing? Assuming that’s all the plan ever accomplished… I’d have to give it a ‘10’ and call it a resounding success. We need more like it.

    Now, wait until you hear what Lt. Governor Newsome said…

    Newsom basically said that banks have had plenty of time to fix the problems they largely created, and that he expected SIFMA should …

    “… cease making threats to the local officials of San Bernardino County.”

    And that was just the beginning…

    “The Washington D.C. special interest groups need to back off. We owe it to homeowners everywhere to see if the solutions being discussed in San Bernardino will work.”

    “We must think big and help our local governments develop solutions – because the industry and federal government have not. This (eminent domain) may be an aggressive idea, but communities such as San Bernardino, Chicago and others have no choice in these desperate times.”

    “We cannot allow Wall Street, who exploited the housing market for financial gain, to kill an idea before it is given a fair hearing. To untether homeowners from the anchor of underwater mortgages would restore consumer confidence, give a boost to the economy and to job creation.”

    “The true injustice of the last few years is that as banks were bailed out and government claimed it has done all it can, the homeowner, the backbone of our communities, has received nothing but eviction notices. We need to help the people that government bailout programs have left behind – ordinary folks that have worked hard to keep their homes even as values plummeted.”

    SIFMA started freaking out over the idea right after San Bernardino approved the plan, saying in a press release that…

    http://mandelman.ml-implode.com/2012/08/californias-lt-governor-gavin-newsom-on-eminent-domain-a-politician-with-true-grit/

    Click on the link to read the rest.

  22. tell that to scumbag DeMarco…….actually tell that to the bigger scumbag Obama

    but i am sure they both know all of this and its part of the master plan…..get ready to fight people !!!!!!

  23. “And a third reason out of many more is that seniors were lured into these nutty mortgages and trusted the liars who sold them these loan products only to find themselves with payments they cannot afford on their fixed incomes — in homes they already were living without debt or with very little. Whether you want to call that moral hazard, or theft or bad judgment on the borrower’s part the facts are that millions of these people are going to be forced to walk away from their homes abandoning them to the completely bogus foreclosure process. And the fact is that the more foreclosures we have, the worse the economy is going to be.”

    And the fact is that, but for banks creating that insanity and pushing and peddling it on seniors (still today. Their biggest mouth is Robert Wagner…), they would never, in their wildest dream, have come up with anything like that on their own. The same way that borrowers were lured into believing that they could borrow the purchase price of a house with no money down, seniors were lured into believing that they could borrow against their own assets. Seniors NEVER approached banks: that scheme never occurred to them! They were approached by banks and conned.

    Who holds the greater responsibility? The person being conned or the “experts” creating those monstrosities? Most civil tort laws state that the so-called “expert” owes a greater duty of care and diligence than the non-expert and that the standard of care owed by the expert is much greater. That’s what we learn. that’s what we are taught. A doctor holds a duty of care to a patient. Not the other way around.
    All of a sudden, because we are talking about banks, lenders, brokers and financial experts, the rule flies right out the window! Except that, when banks are done f*$#ing up with their money, they get to do likewise with ours. No expertise required. No standard of care imposed. Free money, no question asked.

    Many people who naturally don’t have a single mean bone in their entire body will see red when grandpa and grandma are kicked out. As it should be. If something is not done very fast, it will not end well at all. 25% of kids under 16 living in poverty. 10 millions seniors losing their houses. It will become bloody. It already should have. the longer it takes, the bloodier it will be.

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