Posted on 10/11/2010 9:13:41 AM PDT by ex-Texan
OK, I stand corrected. Thank you for illuminating my misuse of terms.
Let me restate: Deadbeat borrowers are scumbags who deserve to get screwed just as much as a bank with shoddy records deserves some sort of penalty.
what’s everyone worried about? Obama will make sure you get a free house, free car and free gas..
This too, shall pass. Like a kidney stone, but pass it will.
Money was chasing Tech for the longest time. Dot-coms that consisted of nothing but a dubious idea and a roomful of servers had market capitalizations in the billions.
After 2000, money chased housing, leading to today's problems. After that, it was oil. Now, it's gold. My bet? Sooner or later, it will gradually flow back into real estate. Might need to wait for the current gold bubble to deflate, and whatever the Next Big Thing is to start inflating.
All those dollars need to wind up somewhere.
>>The problem is that this may be too big, by several orders of magnitude, to resolve while following the US constitution or preserving the US as we know it.<<
The Constitution is a powerful document which is more than capable of withstanding an economic crisis.
The only thing it ISN’T capable of withstanding is a tsunami of idiocy washing out from the population.
About 5 years ago I posted excerpts from statements Bozillo had made about his homeland in Sicily. Rumor has it he has a huge private compound there. If people know anything about the history of Sicily they soon learn the Mafia controls all virtually commerce. 'Nuff said here.
Like the Mortgage Bankers Assocation, who bought a nice shiny new headquarters building in DC, then walked away when they decided they couldn't afford it, strategically defaulting to the tune of about $40 million.
What about the rest of us? It follows logically that if the people forclosing on the home do not have clear title, then neither do the people being forclosed upon, AND neither does anyone else who purchased or refinanced a home since the creation of this system whereby the different pieces of a mortgage were split and sold off into tranches.
If people who never could own a home end up keeping theirs because the bankers goofed on the foreclosure papers what do you think all the people who keep paying for their homes will do? Say? Vote for? Vote against?
Here’s Bush in a speech, pushing home loans for totally unqualified minorities.
http://www.youtube.com/watch?v=MqR15H0gNBU
I agree. The “fraud” seems to be that officers of banks have been signing off on foreclosure documents,without properly reviewing the files.
Right or wrong, this sort of thing is common in all areas of business. Does anyone think the CFO of some Fortune 500 company actually reviews all the checks his signature gets printed on?
In essence, what the robo-signers were saying is “I trust that the the professionals working for me properly checked the documentation I am signing.” Not a wise practice, but not “fraud” in the sense that they are trying to rip anyone off.
Now, the shoddy record keeping may cause huge losses for banks, give a huge break to thousands of deadbeats, and directly or indirectly taint or put a shadow on nearly every home title in the country, but this is NOT a massive effort to seize homes that don’t rightfully belong to the banks.
What if people are paying a mortgage to someone who doesn’t actually hold title to the property? Sounds to me that most lenders are not capable of selling an unencumbered deed.
It’s not about the deadbeats, but about those who are paying to the wrong person. It’s a complete and utter scam.
.......This too, shall pass......
It will be unwound. The procedures bypassed aren’t germane to the payments missed nor the original unsold contract.
The original note holder will make the forclosure and provide the proceeds and title to the one holding the bag, less of course a foreclosure handling charge.
You know, it isn’t even a question of who holds “title.” The purchaser holds the title. The purpose of a foreclosure is to obtain that title. The only thing possibly fuzzy because of all the transfers of the loan is who holds the note and trust deed. But the trust deed isn’t “title,” it is a lien.
What is absolutely clear by the time these things get to foreclosure is that the one person who has no right to the house is the one sitting in it, who hasn’t made payments on it for many, many months. If two banks ultimately end up fighting over who owns the loan, it would not affect the home purchaser at all.
>>The Constitution is a powerful document which is more than capable of withstanding an economic crisis.<<
I agree, but it gets its power from the blood of patriots. And sometimes it requires real blood to survive. I’m speaking academically here. I’m trying to find some sort of “soft landing” solution to all this stuff (and the OP is only a piece of it) and am just not finding one.
What if the original lender has gone bankrupt without assigning or selling the note? Does the Bankruptcy court hold temporary title until the note is sold? Who does the property owner legally pay? Without an assignment, who has the right of enforcement?
to me it seems these obligations have to be split from the real estate.
The borrower continues to own the obligation to “somebody” however, the lien should be stripped off the property.
I also think the judges who rubber stamped these forclosures should be stripped of their robes and if needed law licenses. The judges who rubber stamped these cases should be held to account. In FL the FLSC should be held complicit with their “rocket docket”.
I am amazed how nobody on CNBC “gets it.”
Any banker who sells property to which they do not actually own title to the deed, should lose the value of the entire house in a court settlement.
That seems fair to me.
>>Meanwhile, the other 80-90% of the people who played by the rules to the best of their abilities (like you and I) will continue to get along just fine. <<
You’re right.
I can kiss my hubby, hug my kids and sleep at night.
Cause the house isn’t as important as they are.
You are absolutely right. This whole “fraud” and “scandal” hysteria is just ridiculous.
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