This will get real nasty.
There have been movements in many of these states to simplify the foreclosure process. Meaning the banks are lobbying to eliminate the requirement for courts. I know there has been a lot of activity on this in Florida.
I wonder whether those actions will move forward. Turns out we just might need some oversight of these banks.
“If we the people are picking up the tab, we should insist on owning the banks.”
No we should let them fail.
Yes, it will, and not necessarily right now or all at once.
The end result of this Charlie-Foxtrot is that titles to real property that have been foreclosed upon might not be quiet. Purchasing a property that has been through a foreclosure based on documentary fraud upon the court(s) is going to be fraught with hazards for investors, banks and homeowners alike.
All of this is a by-product of Wall Street’s “financial innovation” since the mid-80’s and the securitization “industry.” They wanted to pass around blocks of mortgages very quickly, so these mental deficients invented MERS. Unfortunately, they designed it to work when foreclosures were well under 2% of all mortgages, not when they’re running nearly 10% of the market in some areas. Now that there is a substantial number of foreclosures to be processed, they realize that the system designed to facilitate free exchange of the MONEY behind the note does not facilitate actual exchange of, you know, THE NOTE ITSELF.
And now they’re screwed. So to try to get around the deficiency in the “design” of the MERS system, the bank fraudsters are resorting to outright fraud: Fraudulent affidavits of foreclosure, fraudulent affidavits of process service, fraudulent claims of lost titles, etc.
PING!!!
Yeah, I suspect it will. If judges start seeing a pattern of fraud here, then it’s going to be the pucker heard across the country.
The good news is that the banks are going to be forced to come to the table and hammer out a deal. The collateral damage will be the housing industry, though. You’re looking at a future where no private party is going to be willing to make a mortgage except under very stringent guidelines that few will be able to meet. And it’s going to get much more expensive.
Interesting summary of the issue(s). Greed slaps the big shots up side the head, yet again.
It will only be nasty if the handouts continue. The sooner they fall, the better.
The market always works, if left alone.
Thanks for this article! This is the first article I’ve read that even begins to explain what the hell is going on that I’ve even been able to half-way understand. It’s flat out incredible.
Find later.
Following is a table of the affected states.
Connecticut
Florida
Hawaii
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Nebraska
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Pennsylvania
South Carolina
South Dakota
Vermont
Wisconsin
The fact is that the banks loaned the money and the borrower defaulted. There was a contract. The banks certainly did many things wrong, but is it right to allow the borrower to keep his house for free? This will potentially bring down the entire system if it is not fixed. No one will make another mortgage payment again, whether they can afford it or not.
This is nothing short of judicial repudiation of virtually all mortgage debt that has been securtized or sold off. While some home debtors will no doubt be happy with this outcome, it could well be the final nail in the American Economys coffin.
And do you really want the Bamster taking full control of the too big to fail banks?
LOL...I almost missed this one. Ellen Brown, Grayson and the foreclosure crisis. The answer has got to be state banks or Grayson’s devastating video.