New Jersey Now Moves Into the Lead in the Race to Didsaster

New Jersey moves into the lead. We have been comparing this to a ball game to make the point that we are only in the 5th inning of a very long game. We have many years to go before this spreading contagion of fake foreclosures is over. It might better be analogized to a horse race where one state leads in Foreclosures and then another takes the lead with the “leader” is a mess of cracking bones and split hoofs while the states “behind” it are in even worse shape.
Economic recovery cannot be real until we cure the housing crisis. Housing drives our economy. The real solution to housing is to simply apply the law and concede that in most, if not all states the mortgage lien was never valid and neither was the note. For that to happen, the banks must be thrown from government power. Yes, there will be some collateral damage — but nothing close to the continuing damage caused by this race to the edge.
Applying basic legal and long-standing principles of equity and law, the documents upon which the foreclosers are relying are invalid, void, and not even competent evidence of the monetary transaction that took place with the borrower, whose obligation is largely undocumented and certainly not secured nor securitized. Improper closing documents can not be laid at the doorsteps or the courts. This was the fault of the banks who transformed their role as intermediaries into being the principal on both sides of the transaction through identity theft and deceit.
The solution lies not in the forgiveness of debt but the elimination of the debt as being secured by perfected mortgage liens. This is all too complex for John Q Public but not for the government that is still getting it’s guidance from Wall Street. The intentional failure of revealing the real lender and the real terms of repayment enabled the banks to intervene, grab the gains and pitch the losses back at the real lenders and borrowers and eventually the government. If we elect a government where fewer people are beholden to the banks, we will have the opportunity to solve this crisis over much fewer years than otherwise.
Homeowners would be left in their homes not because the debt was forgiven, but because the noose around their neck had been given some slack. The obligation would still be owed as a demand loan giving the investors at least some clout and the homeowners would be more than happy to grant a real mortgage lien on a real note for a real obligation based upon fair market values and reasonable rates of return.
Some would be discharged in bankruptcy but the homestead exemption only goes so far in bankruptcy so the homeowner would still be left with an existing unsecured debt.
Not everyone can declare bankruptcy just because their house is in trouble. Most obligations could and should be resolved with the removal of the banks as intermediaries and a platform or marketplace where investor-lenders and homeowners can meet for the first time since the money hit the closing table.
If the false securitization structure is made real by pooling loans into those structures and doing it in a fair and equitable manner, the investors would minimize their losses, while retaining litigation rights against the banks for fraud and breach of contract. Who knows? Maybe the investors could be made whole!
The benefit to the investors would be the best possible recovery of money for the pension funds that we often forget ARE the investors.
The benefit to the homeowners would be that they would stay in their homes with a large income tax bill that could be laid over years in monthly installments but amounting to far less than the payments on the old fake mortgage, note and obligation.
The government and the economy would be infused with operating capital and wealth respectively, as the middle class suddenly reappears. The banks are removed from power simply by forcing them to recognize the losses on their books that are now reported as assets. Their collapse would mean the end of the banking oligopoly.

Thus I say again, dig deeper and you will often find your representatives I state and federal government in bed with the bankers blocking common sense solutions. Vote them out and start a new day!

New Jersey Housing Suffers as Defaults Exceed Nevada: Mortgages

2 Responses

  1. Well, I posted something a while back that was blocked and never saw the light of days.

    Appeal those taxes. Regardless what state you’in, appeal them. I haven’t paid one cent of my mortgage in over 3 years, escrow account included. Last March, i appealed my taxes on the grounds that property values had seriously gone down. Keep in mind that I hadn’t paid in a while. Somebody else did (corelogic) but not me!

    Well, I got a hefty refund retro to 2010.

    Corelogic is to money what Mers is to records: some long-armed octopus in complete disarray and hardly a leg to stand on.

  2. property taxes in NJ is the real killer of peoples ability to keep up any longer…..i tell people this everyday and yet all i get back is a blank stare !

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