Posted on 10/14/2014 10:06:40 AM PDT by Olog-hai
Many thousands of Americans who lost their homes in the housing bust, but have since begun to rebuild their finances, are suddenly facing a new foreclosure nightmare: debt collectors are chasing them down for the money they still owe by freezing their bank accounts, garnishing their wages and seizing their assets.
By now, banks have usually sold the houses. But the proceeds of those sales were often not enough to cover the amount of the loan, plus penalties, legal bills and fees. The two big government-controlled housing finance companies, Fannie Mae and Freddie Mac, as well as other mortgage players, are increasingly pressing borrowers to pay whatever they still owe on mortgages they defaulted on years ago.
Using a legal tool known as a “deficiency judgment,” lenders can ensure that borrowers are haunted by these zombie-like debts for years, and sometimes decades, to come. Before the housing bubble, banks often refrained from seeking deficiency judgments, which were seen as costly and an invitation for bad publicity. Some of the biggest banks still feel that way. …
(Excerpt) Read more at reuters.com ...
Government manipulation by liberal politicians to put ordinary people in inextricable debt doesn’t/didn’t happen?
Fact is the government leaned hard on banks to lend money to people unable to pay it back—and used the race card to do it on top of that. Why were these ordinary people in the kind of fiscal straits to be unable to pay back loans? Because of government policies driving jobs overseas, among other bad government policies. This is reality.
They ought to pay what they contracted to pay. There is no provision in these contracts, willingly entered upon, that says all is forgiven if circumstances change for one party.
Yet another reason why I believe Lizzy Warren is going to turn out to be a formidable candidate in ‘16.
These voters won’t care about the long term consequences. They’ll just want to punish them which is doin’ it to them.
Ultimately what we do as individuals is our own responsibility. This is a conservative principle. No one was forced to sign loan documents. This is reality.
Well now, that doesn't make a very good story, does it?
Yet another reason why I believe Lizzy Warren is going to turn out to be a formidable candidate in ‘16.
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Fauxahontus Warren will be formidable candidate. She is more leftist than Hussein and looks like a soccer grandma. She is if anything, more of a manipulated sock puppet than Hussein.
Scary times.
We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness; that to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed; that whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form as to them shall seem most likely to effect their Safety and Happiness. …No government has the right to create conditions under which people would be so desperate as to sign a document that incurs debt slavery.
The discussion was about repaying loans that one signed for.
Not the same thing as when a President violates the Constitution - I've never been shy on Freerepublic about expressing my thoughts on "watering the tree of liberty"
Some states are judicial foreclosure with deficiency judgement and some states allow mortgage holders to turn in the keys and walk away with terms satisfied by returning the property that secured the note, with merely a damaged credit history and no further obligation.
Guess which states had the biggest bubbles and which states didn’t?
That says to me that there was a whole lot more fraud than is admitted, because the legal consequences obviously played into the bidding wars and the purchase decisions.
Since the big American banks are operating hand-in-glove with the fascists in the federal government to deny us our freedom, I have a hard time separating the two. They can all go to hell!
That woman is such a POS. God help us if she wins.
And I’m always surprised at the level of ignorance out there, of people who listen to the smooth talking ‘experts’ telling them that there are no risks.
While I agree that its not right to place all the blame on the salespeople (and that’s what so many are), the lack of sophistication is astounding. I suppose that’s why there are so many successful cons.
That's where a lot of this gets messed up. Banks might like to move things around as they see fit but a growing number of local governments only recognize the rights of the recorded holder of the first deed of trust. And anymore a growing number of local governments will only enforce foreclosures for the recorded holder of the first deed of trust.
Which is as it should be because that prevents, say, Wells Fargo from foreclosing on a mortgage that's actually held by Bank of America.
Why bother? If the bank can't prove that he owes the money, I can see trying once or twice to get him to admit it, but after he tells them to eff off and gives every indication of continuing to tell them to eff off in the future, what's the point?
I can only repeat what I was told.
OK, fine for you - maybe I'm "old-fashioned", but my word is my word. Even to scoundrels.
A lot of people lost their biggest investment when the Liberals’ experiments with the housing market went kaput. They artificially inflated prices and value, forced loans to people who should not have had them, and bankrupted businesses when their antics caught up with them. Lost in the mix was the hardworking homeowner.
This is why I am not a Libertarian. I don't think “tough luck, now get out!” is the answer here. This is a person's home, not a big screen TV. I am all for forcing the banks to negotiate - the same banks that got billions in bailouts partially paid by that taxpayer borrower they are trying to kick out of their home. The issue is far more complex than some want to admit. There has to be a way to get the borrower and bank to come to an agreement - otherwise, demand the banks all write checks back to the taxpayer for the amount of their bailouts.
Warren is way far Left, but that’s where the base of her party is these days. Hillary is now too conservative for them (God help us)
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