Ghost Equity — the House Next Door

The biggest problem I encounter when speaking with people who are up to date on their payments is why should the others get a break when they are still paying. My answer of course is that they probably shouldn’t be paying because their debt was probably paid long ago through multiple sales of the same loan.

The OTHER major reason is that whether you think the person next to you is being foreclosed and is not deserving any relief, is that while you are standing on principle, the banks are standing on your money. Homes that were unaffected by direct foreclosure lost nearly $2 Trillion in equity as a result of the foreclosure mess and the unwillingness of the banks who created it, to cure it.

So your equity just flew out the window with the guy who is being foreclosed. But it doesn’t stop there. Housing drives the economy as the biggest consumer item offered for sale. The entire economy went into a near greatest of all time depression because the housing sector had, as President Lincoln once remarked (“the bottom has fallen out of the tub”).

So ALL marketplace activities were depressed which caused massive layoffs of up to 800,000 jobs per month as Bush handed the problem off to Obama. This caused an even greater loss in real median income, making it unlikely that your house will ever see the equity that you thought it had — at least not in your lifetime.

Then you have pension funds who have already announced they are under funded because of losses associated with buying the mortgage bonds that are being used as an excuse to foreclose on your neighbor and thus depress the value of your home. 2013 will be the year that pension funds cry for bailout because they don’t have the money to pay current pensioners their share of the pension money that they were promised. People on fixed income of social security plus pension won’t be happy. Are you one of those people?

foreclosures-wipe-out-2-trillion-equity-neighboring-homes

17 Responses

  1. DON’T YOU KNOW THAT OBAMA IS THE HEAD OF THE FED….THE CIA ….THE FBI……& ALL FEDERAL AGENCIES……HE IS A PROXY SECRET AGENT OF THE VATICAN…..! FOR THE LOVE OF GOD PEOPLE….GET A CLUE….!

  2. Obama is a radical subversive…..& it is well documented. Both of his parents were communist atheists as well….Obama is a red diaper baby……brainwashed from birth…….We have no choice…..it is the pick of the lesser of two evils………..and OBAMA FAILED….THEREFORE……I pick Romney because of Obamas radical beliefs & his card carrying membership to the COMMUNIST NEW PARTY OF AMERICA……. http://commieblaster.com

  3. Vote this administration out America….!

  4. A lot of Americans believe a lot of b.s. That is the real problem in the U.S.A…..

  5. Blazing the Trail

    Posted on October 31st, 2012 by Mark Stopa

    Have you ever made an argument in a foreclosure case, and you think it’s a solid, well-taken argument, but there is no case law directly on point? It can create a sinking feeling. “I think I’m right, but how will I ever get a judge to agree with me when there aren’t any appellate court decisions which have ruled this way already?” The tendency, when presented with such a situation, can be to shy away from the argument. To back down. To let someone else try to make the argument first. “I don’t want to look foolish.” “I don’t want to be wrong.” “If this is such a good argument, why aren’t there any cases that have ruled this way already?”

    While I understand this feeling, this is absolutely and unequivocally the wrong mindset.

    As foreclosure defense lawyers, many of the issues with which we are confronted are novel. That’s just the nature of the beast. Just think of it this way – when, prior to now, in the entire history of America, have property values collapsed by half (or more), causing millions of Americans to face foreclosure, essentially all at once? Obviously, the answer is “never.” These are unprecedented times, so it should come as no surprise that, in the history of jurisprudence, our court system has never before been confronted with some of the legal issues with which we now deal on a daily basis. As a result, to defend homeowners the right way, we have no choice but to argue things we may have never argued before – to present arguments to judges they may have never heard before, for which there is no case law.

    One such example? Asking a judge to enter summary judgment for a homeowner in a foreclosure case.

    In Florida, I know of no appellate decisions that directly authorize this. Such case law may exist, for example, if it’s undisputed the homeowner paid the mortgage in full all along, but that’s not what I’m talking about here. I’m talking about cases where homeowners are behind on their mortgage payments, perhaps significantly behind, and the bank has filed suit for foreclosure, but the homeowner is entitled to prevail on that case anyway.

    I introduced this concept a few months ago,via this blog post. In the ensuing months, I’ve made that same argument many times before Florida judges, often before judges who had never heard it before.

    Sometimes, quite candidly, it’s not easy. A few times, the judge seemed to think I was nuts, at least at first, when I told the court that I wanted summary judgment for my client. Typically, however, once I get into the argument, and explain why my client should prevail, that initial skepticism is replaced with intrigue at the argument. Often, in fact, these judges have agreed with my position, entering orders granting summary judgment and dismissing the case.

    Invariably, do you know what happens when I go back before that same judge a second time? Or a third time? It’s easier. The judge is familiar with the argument. The judge understands the legal issues and knows how they apply. I’m no longer the crazy lawyer asking for a client who hasn’t paid his/her mortgage to prevail, but the lawyer making sound, legitimate arguments that are perfectly consistent with the law.

    Do you know what makes all of this a bit easier? When the judge I’m arguing before sees that other judges have agreed with my argument. That’s why, whenever I have a hearing on this issue, I bring the Orders I’ve obtained which entered summary judgments for my clients in other cases. It’s one thing for me to argue something – it’s another for the judge to see that 5, 10, or 15 other, Florida judges have agreed with my argument and dismissed the case as a result.

    In the grand scheme of things, my “success” here is limited. I know that this argument isn’t being made everywhere in Florida. I know there are many capable judges who have yet to hear the argument. I can’t argue this for everyone.

    It’s time to get the word out, folks.

    Below are several of the Orders I’ve obtained upon making these arguments. By posting these Orders, I am not suggesting that the same result will happen in any particular case. That said, it’s certainly possible, and I have to think the chances for any particular homeowner will improve if/when the judge sees that numerous other, Florida judges have agreed with this argument. Hence, that’s the point here – to blaze a trail. To help everyone (including judges unfamiliar with the argument) realize this argument has worked, and can work in the future. Everyone in foreclosure-world should be aware of these arguments.

    Order Granting Summary Judgment – Judge Carven Angel (Hernando County)

    Order Granting Summary Judgment – Judge Amy Williams (Pinellas County)

    Order Granting Summary Judgment – Judge Pamela Campbell (Pinellas County)

    Order Granting Summary Judgment – Judge John Schaefer (Pinellas County)

    Order Granting Summary Judgment – Judge Amy Williams (Pinellas County)

    Order Granting Summary Judgment – Judge W. Douglas Baird (Pinellas County)

    Order Granting Summary Judgment – Judge Robert Foster (Hillsborough County)

    Order Granting Summary Judgment – Judge Donald Evans (Hillsborough County)

    Order Granting Summary Judgment – Judge Michele Sisco (Hillsborough County)

    Order Granting Summary Judgment – Judge Frank Gomez (Hillsborough County)

    Order Granting Summary Judgment – Judge James Barton (Hillsborough County)

    Order Granting Summary Judgment – Judge J. Rogers Padgett (Hillsborough County)

    Order Granting Summary Judgment – Judge Robert Foster (Hillsborough County)

    Order Granting Summary Judgment – Judge James Barton (Hillsborough County)

    Order Granting Summary Judgment – Judge Donald Evans (Hillsborough County)

    Order Granting Summary Judgment – Judge Donald Evans (Hillsborough County)

    Order Granting Summary Judgment – Judge George Shahood (St. Lucie County)

    Order Granting Summary Judgment – Judge Thomas Kirkland (Orange County)

    Order Granting Summary Judgment – Judge Lynn Tepper (Pasco County)

    For those of you counting, that’s 14 different Florida judges who have entered summary judgment for a homeowner in a foreclosure case. (Undoubtedly there may be more of which I’m not aware.)

    So take these arguments. Use them and apply them, as appropriate. Keep fighting. And, more than anything, realize that there are virtually always defenses that homeowners can utilize, even those facing foreclosure.
    Mark Stopa

  6. Allow me to clarify……..BECAUSE OF THE ORIGINATION FRAUD……WHICH WAS …..THE FED DEFAULT………ALL SUBSEQUENT SALES & TRANSFERS WERE & ARE FELONIES……INCLUDING FRAUDCLOSURE………FORECLOSURES, SHORT SALES, LOAN MODS, DEED IN LIEU ARE ALL UNLAWFUL REMEDIES FOR THE ORIGINATION FRAUD & THE SUBSEQUENT QUADRILLION DOLLARS IN CREDIT FRAUD DEBT CREATED BY THE FED VIA WALL STREET….THE FED OR ANYONE AIDING & ABETTING THEM ARE FELONS……& TRAITORS.

  7. WE THE PEOPLE WERE THE ORIGINATORS. THE FED NEVER PAID WE THE PEOPLE……..THE U.S. TREASURY……… BACK FOR THE ORIGINAL LOANS…….THEREFORE THE FED ARE IN DEFAULT & ALL SUBSEQUENT TRANSFERS WERE & ARE FELONIES. There is no legal remedy for the ORIGINATION FRAUD……THE DEFAULT BY THE FED & there is no monetary cure for a QUADRILLION DOLLARS in CRIMINAL FRAUD created by the FED after the ORIGINATION FRAUD occurred. IN REFIS THEY HANDED YOU BACK SOME OF YOUR OWN EQUITY IN ORDER TO FINISH YOU OFF BY CHOPPING UP & SWAPPING & SELLING INVESTMENTS IN MORE RUBBISH. THEY WERE SELLING INVESTMENTS IN ABSOLUTELY NOTHING……..NO COLLATERAL BACKED UP ANY SALES TO INVESTORS BECAUSE OF THE ORIGINATION FRAUD. THEY SCREWED US ….. AND NOW THE FED INVESTORS VIA THEIR POLITICAL APPOINTEES…..THE TRAITORS FROM WITHIN ARE TELLING WE THE PEOPLE……WHO FUNDED & PAID FOR THE WHOLE SCAM TO GO SCREW OURSELVES……..THE TRAITORS ARE GIVING THESE FED INVESTOR CROOKS, A LAWLESS LICENSE TO STEAL EVERYTHING FROM US. THESE CROOKS ARE THE MONEY PRINTERS……THE CROOKS WHO ARE COUNTERFEITING & PRINTING THEIR OWN MONEY……NOW THEY ARE COUNTERFEITING WITH UNCERTIFICATED MORTGAGES & NOTES……THE MONEY PRINTERS AT THE FED ARE COMMITTING MORE HEINOUS CRIMES BY USING COUNTERFEIT….UNCERTIFICATED SECURITIES TO STEAL OUR PROPERTY……THAT WE THE PEOPLE PAID FOR UPFRONT…….THEY NEVER HAD ANY SKIN IN THE GAME…….NOT EVEN THE GSE’S BECAUSE OF THE ORIGINATION FRAUD………THESE FED CROOKS PRINT THEIR OWN MONEY…..AND GAVE US WORTHLESS CREDIT IN EXCHANGE…….CREDIT IS NOTHING OF VALUE….AND THE FED ARE INSOLVENT BECAUSE OF IT….YET, THEY CAN PRINT THEIR OWN MONEY AND PAY THEIR OWN LOUSY DEBTS…..YET THEY ARE BEING ALLOWED BY THE TRAITORS FROM WITHIN TO STEAL EVERYTHING FROM US……..!

  8. Zur,

    Thanks. If you read that article in the context of what is going on worldwide (you know, that part of the world encompassing 95% of humanity and land but that people here want so desperately to forget or ignore…), there is no doubt that that system is crumbling, starting with BRIICS and their gold-based money and Germany pestering the US to return its gold. Put that Strauss-Kahn scandal in context as well (i.e., the purpose for the guy’s visit to NY was to inspect the US gold reserves, since IMF already knew England had none left and everything originated in London and NY) and you can see that it is the end of what some call “the cabal”.

    Fiat worked for a time but it has run its course. American banks are desperately trying to cover up their imminent demise but it is coming.
    That’s why I don’t fret over foreclosure and my own, temporary situation: it is getting better behind the scene and I know it. I can feel it in every cell of my body. Things are in the works. And they will get so much better!

    Anon is right and, from the onset, she was well-aware that Neil has been consistently stopping short of denouncing the greatest financial scandal every visited upon humanity for what it is. I have never denied her that much. (My difficulty is only with people throwing her information out without putting it in the proper context and presenting it as the key to a free house). Everything for the past 50 to 80 years has been a game of transposing empty numbers from one account to the other and I refuse to hold homeowners and consumers responsible for it: unless one was privy to the shenanigans and manipulations, one was in no position to imagine and fight what was happening. We all got hit by surprise, world governments included. And the US trying to settle part of its debt with China with gold-plated tungsten bars was the last nail on America’s coffin.

    It’s moving in the right direction. It has been for 10 years.

  9. @ zurenarrh

    We were not loaned money from an originator. The contracts are with the lender and lines of credit to the originators, who were supposed to sell them forward in pools and put them in the REMIC trusts for the lenders protection and properly lien the ONE property. This was not accomplished, per the contract with the lenders and the originators. To me, we have not met the parameters of an enforceable contract, as we the homeowners’ were not lent the money, hence no consideration is present. In my case, the originators took the money and filed bankruptcy to protect themselves from repurchase agreements with lenders and further held back payments due to cash flow problems.

    I cannot speak for anyone here, but I do not have a loan with my originator, that is enforceable. Again, the beginning is where the truth lies and many do not see that or are over thinking it. My issues are imbedded in my case, but the issues for me, as a pro Se is procedure…severely lacking in experience and the lawyers kick my ass. I have found many of the lawyers are not that good, but they know Court protocols and procedure, which is where you win or lose.

  10. and this is not a moot topic, the head of the beast being MERS
    i like zimmerman because he describes the job as it should be dohttp://stopforeclosurefraud.com/2012/10/30/william-k-black-why-are-there-no-famous-financial-whistleblowers-in-this-crisis/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+ForeclosureFraudByDinsfla+%28FORECLOSURE+FRAUD+%7C+by+DinSFLA%29ne

  11. Enraged,

    That is a great article that you posted. It explains that WE created the money that THEY say they loaned to us. I wish Neil, Matt Weidner, and others would take that to heart, because I really believe that this would be not just A way, but THE way to really stop foreclosures and to stop the predator creditors. I mean, Neil is willing to say that the securitization never happened, the pools are empty, and so forth, but he stops short of the whole ball of wax and insists that the money was real and was loaned. I don’t get that–if he can accept that everything else was fake, why is it such a stretch to believe that the very money itself is fake?

    Neil’s latest strategy is to deny everything, but he again stops short and says that we can’t deny that we were loaned money. We clearly weren’t, as explained not only in the article you linked to, but the Federal Reserve itself admits that money isn’t created until someone like you or I wants to “borrow” it. It’s no secret that our promissory notes and the banks’ funding checks just different names for the same thing–money from nothing. It’s the same thing as if I tell a friend that I’m hungry and the friend says “Would you like an apple?” I say “Sure!” The friend says, “Give me an apple.” Not quite understanding what my friend is doing, I agree and give him an apple. He hands it right back to me and says “Here’s that apple you wanted–now you owe me two apples by the end of the month.” Did the friend loan me an apple? Or did he trick me? Of course any reasonable person concludes that it was a trick.

    I think that it is time to start challenging the money itself in court, because no money was lent by banks to us, rather it always is and always has been the other way around. I have stated this here on Living Lies more than once over the years, and my statements were always met with guffaws, derision, and citations to case law. I hope that isn’t the case anymore, because once we show that no money was lent to us by banks–and that they know that–it’s game over for them.

    And that’s the lesson Neil has been trying to get across lately–posting about one poor sap or another who didn’t deny his note and mortgage and lost his house as a result. We have to go further than that, though–we have to deny the money itself because that is the final refuge of the banks, i.e. they’d say that they may be forced to settle over robosigning and such, but at least they really ARE lenders that lend real money. If we concede that, we’ve conceded everything. It’s time to grow a pair and realize that we will never have true relief from this economic crisis unless we deny the money itself. It’s not about principal reduction, it’s not about modifications–it’s about currency fraud.

  12. A Man is back! Right on! Great article, Neil–we ARE our brother’s and sister’s keeper!

  13. Excellent article available on http://www.chasechase.org/stories.html

    Debunking the Myth of the Deadbeat Homeowner
    by Margaret Carswell

    Excerpt: “Yet another myth is that of the deadbeat homeowner. The media, the government, the courts and the big banks seek to lay the blame for mortgage and economic failure on individual homeowners. The wall of shame that has been created is almost impenetrable. People feel isolated, afraid, convinced of their own wrongdoing and that they have an obligation to repay, not realizing the money would never have existed without them. They are ridiculed, made to feel wrong and then are evicted from their homes, when the act of their living in homes is actually the basis of a stable civil society.”

    A must read if you’re trying to save your home.

  14. Exactly Neil…don’t people understand the foreclosures are the banks “intentional” doing and they ARE affected. The people being foreclosed on are not deadbeats…do people really believe that millions of homeowners stood outside banks, waiting to apply for mortgages they could not pay? That isn’t even rational.

    Now, the next wave is reverse mortgages…80 year old’s are being thrown into the street, ’cause there ain’t no equity in their house now. And no one is outraged yet!

  15. Wall street journal reports rise in house prices

    http://online.wsj.com/article/SB10001424052970203880704578088512393798872.html?mod=WSJ_hp_LEFTWhatsNewsCollection

    NEVER AGAIN

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