Begging to Lose Money? Think About It!

There are two morals to this story. First always use a legal and financial adviser if you are about to make the largest investment of your life. Second, there is no such thing as boilerplate or standard clauses.

So you have a “lender” who is offering to lend you money, even though you have trash credit and no visible means of support, at a very low rate and they offer to further reduce the monthly payments for as much as five years, and they are paying wild commissions and salaries to everyone involved while spending hundreds of millions of dollars just to get your signature. And good news the appraisal came in $20,000 higher than expected so you already have “equity!”

Some of the rates have been as low as 2% or even less in certain cases. Many if not most of the loans in certain classes were nearly certain to fail. Yet onward and upward the banks persisted in driving up the money supply and raising housing prices like the tulip craze back 400 years ago.

It was all coming from Wall Street investment banks who caused the 1929 crash. The investment banks made money lending money like that starting around 1996. The loans failed and still they made money. They didn’t need the bailout but they took it anyway.

So I ask you to consider the fact that the investment banks were indeed making a lot of money on 2% loans. How? By selling your signature, your name and your financial reputation all without disclosure or even a wink at getting your consent. That’s because they don’t want to share the bounty with you. They didn’t just make money. They practically invented a printing press without the need for physical printing. All the contracts, all the notes, all the mortgages, all the closing documents exist only in digital images and data.

So those 2% loans, even though they failed, made about $20 for every dollar loaned. And that’s the dirty secret they are hiding behind the “free house” myth that most people believe.  And now, adding insult to injury, they want your house too, even though the proceeds of sale will not be used to pay down the debt.

 

13 Responses

  1. Neil and Ian — yes. The investment banks bought the “default debt” and claimed to securitize it. But, one CANNOT securitize something that was never on anyone’s balance sheet. Securitization is simply the removal of on balance sheet assets to off balance sheet conduit. Without it ever being ON balance sheet — there was NO ASSET to securitize. How did this all happen? Freddie Fannie not making enough money on fixed rate loans. Voila — “Investment banks” come in with a fix. The only way to get loans out — is to report them in default. Then never goes to an actual balance sheet – -just a transfer of debt (by assignment – not a negotiable note) to a debt buyer — the investment banks. Skipped the on-line asset part. Whoa — the Fed didn’t care? No one cared? Effect – MASSIVE Fraudulent documents and title. That is the effect we have to live with. Unless get Neil’s help.

    I have past payoff many years ago that NEVER got to GSE. I have the darn cancelled check to servicer. A miracle that I have it. Won’t name name here. But, it left me on a PERMANENT distressed debt path for a VERY LONG TIME. Still there. And, there is more. This did not occur once. More than once. THERE WAS NO DEFAULT BY ME. NONE. MONEY VANISHED INTO THIN AIR. Of course, got stuck in high rate that cannot get out of. KEEP PAYING. I am the stupid deadbeat to keep paying but not all under my control.

    I am slowing putting my story out there. Will be more.

    Ian – the application has the property net worth. No one cared about income. All they cared about was the property worth. And, Ian — YOU OWE NOTHING if the prior loan was not satisfied by you. People don’t understand — another party satisfying the prior loan (insurance proceeds likely) does not mean satisfied by the borrower. “Paid Off” by borrower with a true refinance is NOT the same as “PAID OUT.” by another party. THIS is what has been concealed. “Satisfied” does not necessarily mean satisfied by the borrower. Tricky rabbits.

  2. The warehouse loans were a sham. The substance of the agreements, taken together made it a table funded loan for the benefit of an undisclosed lender who was in fact an investment bank.

  3. Securitization was in fact claimed before the first application was accepted. The assignment and assumption agreement before the applications came in made it clear that the originator would not touch the money and the incoming applications were to be considered assigned and assumed by an aggregator (like Countrywide) with the investment bank standing behind the curtain.

  4. And they sold the original mortgage many times plus they sold the new mortgage many times.

  5. ANON- the fact that “refinances “ only entailed the small cash out amount,as the “mortgages” having long a go defaulted, had nothing to refinance.what bothers me is that I had absolutely no idea that when I “refinanced” my $200,000 mortgage and got 12000 atclosing, there was no $200,000 left on my existing mortgage, the balance there was
    Zero. So the originator wrote me up for a $243.000 mortgage, and set the monthly amount due as $1797.60 for 30 years. But the mortgage was just the cash to borrower, $12,000. But we all took their word for it.

  6. ANON- the 1003 is Fannie Mae’s residential uniform loan app. So Deadly Clear is saying that the applications were securitized ? This makes sense for a couple different reasons, I’ll gather my thoughts and post later

  7. No money was lent during foreclosure financial “crisis” fraud on non bank loans. Only cash out is what was actually table “funded”, with warehouse lines of credit, and this was dollar amount was just added to the already created “charged off” debt. When the lines of credit were shut down, the non banks still owed the warehouse big lender bank – who remained the property collateral holder.

    The non bank loans were first GSE charged off, with debt collection rights sold to the banks. Refinances were NOT refinances in the traditional way where the borrower pays off the prior loan with a new loan. NO – this did not happen – although all paid for a “true” refinance. The debt was restructured based not on ability to pay, but, rather on the inflated home appraisals. Then the “debt” became inflated itself. Neil is right — no trustee or trust owns the debt. But, I think Deadly Clear is right on. I think she means the “property” rights were buried in the fake securitization, with the true debt buyers (the banks themselves) concealed forever. Foreclosure was always the goal.

    Deadly Clear – what is the 1003? The application? Are you saying the home/property itself was securitized? That makes sense, as the loans were not, and could not be securitized as they were never on the balance sheet of any bank. This is because it was already GSE charged off.

    The Fed? Brain Tracy is correct. The Fed missed the warning signs of what happening. It was too late to stop. Then they pushed the administration for the bail out to the banks. Any publicity that the homeowners were the true victims, or of the true criminal nature of what was done would have negated the Fed’s poor resolution to the crisis.

    I suspect that since Waters was there at the time decisions were made, she is not willing to revisit the issues. I am not in CA so she won’t talk to me. My state won’t talk to me. No one will talk to me. I have proof of what I say. I have never missed a payment in 30 years. Have proof of all payments. BUT, loan took a bad path anyway. Not in foreclosure. NO LOAN MOD. Pay high interest. Have always had equity. TITLE is the problem why I can’t get out. For those who do take a loan mod, unless the true debt buyer creditor is disclosed and recorded, title is permanently destroyed.

    Stand by all in foreclosure because I know what happened. Just can’t get to anyone in authority. It would help many if I could. .

  8. We have proof of exactly what was securitized on the “mortgage Loans” exhibits A. It was everything on your 1003 Application.

  9. Neil ,

    I don’t doubt your assertion ,, I’ve been here since late 2007 or 2008 .. I know you’ve outlined this before but can you elaborate on it a bit and make this easier to understand… Trump’s DOJ is cleaning up a great deal of the mess of the prior decades… it’ll take time but this is a great example of the fraud perpetrated by the Federal Reserve (their member banks and the other banks that are “second tier”) to support the investment industry… The Federal Reserve is on the chopping block… This could be what gains traction from the public.

    The IRS pub 938 is a great tool… it can be judicially noticed and for most of us proves the trust is not operating in a valid manner.

    Judges don’t need to find for homeowners ,,, they’re unlikely to bite the hand that feeds them… but it would be great if they would simply do their job and require the pltf to state a valid substantiated claim , produce and prove their case. That can be done by enforcing discovery.

  10. Tell your story to Congresswoman Waters at House Finance committee

  11. Also, why JUDGES never ask ‘Plaintiffs” for TWO simple documents – Trusts current Registration with IRS P. 938 (which MUST be done for ANY legit REMIC every year) and registration with SEC, like 10K report??? If YOU would go to the bank, they always ask for ID and a utility bill to identify your address and persona.

  12. So, what about JUDGES who actually operate this fraud? Without a Court order nobody can get your house, specially a fake plaintiff. Judges know what is going on it and still steal properties for banks

  13. Even though their names never come in fraudclosures complaint as plaintiff. Does Fannie and Freddie get the “free house”. If so. That’s basically the people fraudclosing against themselves. It’s insanity!!!

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