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Foreclosure Fraud: 6 Things You Need To Know About The Crisis That Could Potentially Rip The U.S. Economy To Shreds

The foreclosure fraud crisis seems to escalate with each passing now.  It is being reported that all 50 U.S. states have launched a joint investigation into alleged fraud in the mortgage industry.  This is a huge story that is not going to go away any time soon.  The truth is that it would be hard to understate the amount of fraud that has gone on in the U.S. mortgage industry, and we are watching events unfold that could potentially rip the U.S. economy to shreds.  Many are now referring to this crisis as "Foreclosure-Gate", and already it is shaping up to be the worst thing that has ever happened to the U.S. mortgage industry.  At this point, it seems inevitable that some financial institutions will go under as a result of this mess.  In fact, by the end of this thing we might see a whole bunch of lending institutions crash and burn.  This crisis is very hard to describe because it is just so darn complicated, but it is worth it to try to dig into this thing and understand what is going on because it has the potential to absolutely decimate the entire U.S. mortgage industry.

The truth is that there was fraud going on in every segment of the mortgage industry over the past decade.  Predatory lending institutions were aggressively signing consumers up for mortgages that they knew they could never repay.  Many consumers were also committing fraud because a lot of them also knew that they could never possibly repay the mortgages.  These bad mortgages were fraudulently bundled up and securitized, and these securitized financial instruments were fraudulently marketed as solid investments.  Those who certified that these junk securities were "AAA rated" also committed fraud.  Then these securities were traded at lightning speed all over the globe and a ton of mortgage paperwork became "lost" or "missing". 

Then, when it came time to foreclose on these bad mortgages, a whole bunch more fraud started being committed.  The reality is that the "robo-signing" scandal is just the tip of the iceberg.  The following are six things that you should know about how deep this foreclosure fraud crisis really goes....   

#1 According to the Associated Press, financial institutions were hiring just about whoever they could find, including hair stylists and Wal-Mart employees, as "foreclosure experts" to help them rush through the massive backlog of foreclosures that were rapidly piling up.

Apparently many of these "foreclosure experts" barely even knew what a "mortgage" was according to the AP....

In depositions released Tuesday, many of those workers testified that they barely knew what a mortgage was. Some couldn't define the word "affidavit." Others didn't know what a complaint was, or even what was meant by personal property. Most troubling, several said they knew they were lying when they signed the foreclosure affidavits and that they agreed with the defense lawyers' accusations about document fraud.

#2 There is soon going to be a colossal legal scramble to figure out who actually owns millions of U.S. mortgages.

In his recent article entitled "Invasion Of The Robot Home Snatchers", Robert Scheer described the complete and total mess that the U.S. mortgage industry has created....

How do you foreclose on a home when you can't figure out who owns it because the original mortgage is part of a derivatives package that has been sliced and diced so many ways that its legal ownership is often unrecognizable? You cannot get much help from those who signed off on the process because they turn out to be robot signers acting on automatic pilot. Fully 65 million homes in question are tied to a computerized program, the national Mortgage Electronic Registration Systems (MERS), that is often identified in foreclosure proceedings as the owner of record.

Meanwhile, more organizations are stepping forward to help homeowners fight foreclosures.  National People's Action, PICO National Network, Industrial Areas Foundation, Alliance of Californians for Community Empowerment and the Northwest Federation of Community Organizations have all partnered with the SEIU to launch the "Where's The Note" campaign which is going to encourage homeowners to demand to see the note before submitting to a foreclosure.  Campaigns such as this are going to make foreclosures much more costly for banks.

#3 Legal battles over foreclosure documents could soon spawn thousands upon thousands of lawsuits across the United States.

Adam Levitin, a Georgetown University Law professor who specializes in mortgage finance and financial regulatory issues was recently quoted in an article on CNBC as saying the following about the situation we are currently in....

The mortgage is still owed, but there's going to be a problem figuring out who actually holds the mortgage, and they would be the ones bringing the foreclosure. You have a trust that has been getting payments from borrowers for years that it has no right to receive. So you might see borrowers suing the trusts saying give me my money back, you're stealing my money. You're going to then have trusts that don't have any assets that have been issuing securities that say they're backed by a whole bunch of assets, and you're going to have investors suing the trustees for failing to inspect the collateral files, which the trustees say they're going to do, and you're going to have trustees suing the securitization sponsors for violating their representations and warrantees about what they were transferring.

#4 The problems with foreclosure paperwork may be more widespread than anyone would have dared to imagine.

Attorney Richard Kessler recently conducted a study in which he found "serious errors" in approximately 75 percent of the court filings related to home repossessions that he examined.  Now he says that the foreclosure crisis could haunt the U.S. mortgage industry for the next ten years....

"Defective documentation has created millions of blighted titles that will plague the nation for the next decade."

#5 If some banks discover that they are missing the paperwork for large numbers of mortgages (as is currently being alleged), those banks could be forced to significantly revalue those assets (as in "close to zero") on their balance sheets. 

John Carney of CNBC recently described it this way....

The most damaging thing that could happen to banks would be the discovery that they simply cannot prove they hold a mortgage on a house. In that case, the loan would probably have to be written down to near zero. Even for current loans, the regulatory reserve requirements would double as the loan would no longer be a functional mortgage but an ordinary consumer loan. Depending on the size of the “no docs” portion of the loan portfolio, this might be a minor blip or require a bank to raise new capital to fill the hole in the balance sheet.

#6 Renowned investor Jim Sinclair is actually warning that the collapse of securitized mortgage debt could be the "final shot" that will wipe out many financial institutions across the United States. 

The recent warning that Sinclair posted on his blog is more than a little sobering.... 

I am asking for your attention again because of the depth of the fraud and now the size of the securitized mortgage debt OTC derivative pile of garbage that is in the trillions. This entire mountain of weapons of mass financial and social destruction is now in question. I have been telling you this for more than 2 years since the manufacturers and distributors of this crap were called by the NY Fed due to the loss of control over the paperwork.

I had dinner with my former partner, then lead director of and CEO of Bear Stearns. I could not contain myself so I asked him why he did so much business in OTC derivatives which were certain to bankrupt them. The answer I got was it was more than 50% of their profit. The right answer should have been it was more than 80% of their earnings.

Securitized mortgage debt is going to be the final shot that kills all kinds of financial entities in the Western world. The biggest holder of this putrid junk is pension funds.

Meanwhile, the stock market continues to go up, up, up as if everything is right in the world and as if a juicy new bull market is now upon us.

Well, let's all join hands and sing happy songs around the campfire.

Perhaps if we all close our eyes and wish real hard all of this foreclosure fraud will just go away.

Then again, maybe not.

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  • NadePaulKuciGravMcKi

    Lost homes with nothing left.
    Destroyed Families
    Damaged Children

  • Avatar7

    Welcome to 2011.

    You will need:

    1. A bunker/fort/homestead FAR away from everyone else.
    2. Firearms.
    3. Food supplies.
    4. A fresh water supply.
    5. A good book, to pass the time.

  • Lennie Pike

    All the foreclosure fraud will go away in an instant – the time it takes for the President to sign the law he is ordered to sign that will place it on the backs of the taxpayers by devaluing the currency. There’s only one other option and it is unacceptable to the oligarchy. Why would anyone think differently?

    It must be a great feeling to know that whenever your attempts to defraud are unsuccessful that your marks will still lose no matter what since you can just change the law at will and they’ll just sit there and take it.

    There must be something they’re putting in the food supply in the U.S. and not in France, Spain, Greece, etc where millions are out protesting (aggressively) in the streets as we speak. I sure can feel a huge difference mentally within a month of arriving in Brasil for the six months I live there every year. Also I experience a big weight loss and feel better physically even though I eat more and drink a lot of beer there and none here. The obesity/stupidity epidemic is due to what is in our food.

    Fat, drugged, and stupid, that’s no way to go through life. I think I’ve heard that before somewhere.

  • ric morris

    HELLO!… the U.S. economy is ALREADY in shreds for various reasons. This is another brick in the wall. Unfortunately, we have a meltdown of morality here at the political, business and personal levels. Every person (and company) for themselves! About the only shred of nationalism we have left is tolerance. We are not without hope, but we will have to “dig deep” into our own personalities and become accoutable. “You did run well, who did hinder you?”

  • David Forde

    Why am I not surprised in the least!!

  • Stephen

    One statement is inaccurate. The average buyer did not lie on their loan application. This was exposed on 60 minutes, 20/20 and many other media long ago. Mortgage brokers and lender’s agents altered the numbers after the fact.

    Americans don’t routinely go through their daily lives lying on legal documents. In fact, they’re terrified of committing a crime. But the real estate “Professionals” believed they “Owned Washington” and were encouraged by the lenders to submit anything on paper and it would be approved.

    Brokers flat out lied about the terms and conditions of the loans to the borrowers, hustled them through the signing process, didn’t allow them to read the docs (wouldn’t have mattered anyway) and knowingly submitted fraudulent loans to the banks. I was there, I saw it, daily.
    Read the Declarations of Mark Bomchill (Ameriquest) and Christopher Warren (Countrywide).

  • Stephen

    Secondly, if these investigations are complete and thorough, they will expose to the world that the banks have been stealing homes with payments current and stealing homes they don’t even own. How do you think they became solvent again so fast.

    Mortgage lenders are masters at manufactured foreclosures. They fabricate a foreclosure out of thin air, inflate the payoff, pile on the bogus legal fees, then falsify the reselling price to soak up as much of the equity as they can.

    Happened to me.

  • http://ariel.org Stiler

    the LOVE of $$$$ is the root of all evil.

  • http://www.suburban-self-reliance.com Jerry

    “the “final shot” that will wipe out many financial institutions across the United States.”?

    I can’t wait!!

    Bring on the collapse!!

    Fun times for everyone!!

  • http://www.grandmasdepressionmemories.com/ Leigh Kimmel

    Ric Morris: You’ve got it right about the morality meltdown. And we don’t even realize it because American society has focused its understanding of the word “morality” almost entirely in terms of sexual morality, and specifically a heteronormative sexual morality that condemns the LGBT community in spite of mounting medical evidence that our orientation and gender identity are the result of the hardwiring of deep structures in the most ancient parts of our brains, and a gay person or transperson no more chooses their orientation/gender identity than a person with autism chooses to be autistic.

    As a result, we’ve completely ignored the moral and ethical questions of other aspects of life, particularly the financial. The old saw about the guy being able to lie, cheat and steal and being still considered a moral man because he was faithful to his wife is becoming too true — and the vultures are coming home to roost and it won’t be pretty.

    We have got to get back to a moral culture in which square dealing in the financial arena is an important part of being a good person. Otherwise we’re going to continue pursuing voyeuristic hypocricy to our doom.

  • http://www.SHTFplan.com SHTF Mac

    Fourth quarter real estate sales should be interesting.

    The media will be happy to report that the 4th quarter foreclosures, compared to the record breaking 3rd quarter (100,000+), will drop significantly — perhaps 90%? give or take.

    But, as RealtyTrac CEO points out, if they don’t get the paperwork under control ASAP, then we are going to see foreclosure home sales collapse – essentially come to a standstill. These account for 30% of real estate sales.

    As ZH points out, it will be “a complete housing market collapse.”

    Yikes. Buckle up folks. It ain’t going to be pretty.

  • Tony

    Stephen is right. In 2004, when my wife and I first looked into a mortgage on our current property, a “salesman” from Countrywide tried to encourage us to take out a subprime loan for more than the house was really worth so we could “get money back”. Thank God I refused and went with another company for a 30 year fixed rate with 30% down.
    Some of those brokers were real scumbuckets back then.

  • Ken

    The Community Reinvestment Act is at the heart of this foreclosure mess, made worse when the Clinton admin essnetially put it on steroids. It should be shredded immediately. I’m not giving the banks a pass, mind you, but thousands of people that applied for mortgages had no business doing so. The banks shouldn’t have approved them, but in many cases had no choice because the CRA demanded that these losers be approved.

  • ObamaIsANazi

    Well, gee…I wish I had bought a house before all this went down so I didn’t have to pay my mortgage

  • Silence Doogood

    According to BOFA, Their assets include 41% of loans (with majority of loans from real estate) Most people would look at loans (especially REAL ESTATE LOANS) as liabilities NOT ASSETS…. With the current foreclosure fraud with BOFA being a great participant in this fraud, adds to the Jeffersonian WARNING LONG AGO; A BANK is more DANGEROUS than a STANDING ARMY….. Go Thomas!!!
    Comment from Barbara J. (Oct. 6, 2010 8:29PM)
    IMPORTANT FACTS ABOUT FORECLOSURE AND MORTGAGE FRAUD

    Foreclosures via DECEPTIVE and FRAUDULENT PROCEEDINGS enables repetitive, and illegal property flipping; it enables lenders to falsify IRS form 1099-A”s; it enables unscrupulous foreclosure mill lawyers (especially because of judges who purposefully abet deceit) to deceptively hold auctions and make insider bids to acquire those properties; and blighted neighborhoods. Fraudulent foreclosures ensure the success of FABRICATED BANKRUPTCY COURT ‘Lift Stay motions’ and false ‘Proof of Claims’.

    Foreclosure via fraud is the reason for illegitimate homelessness and underhanded evictions, unjustified IRS tax bills due to false 1099-A’s, and unfair “Deficiency Judgments.” Ironically, some people who express their anger at “deadbeats” appear to be more acceptable about the manifest fraud and criminal activity being carried out by people with credentials to practice law. Equally ironic is the reality that some people pretending to be annoyed about “deadbeats”are the actual people who are participating in real estate racketeering -fully sanctioned by the majority of courts, especially Bankruptcy Courts! (Barbara J.)
    Sounds like Barbara can see through the smoke and mirrors of BANKS and OTHERS…..

  • William Matz

    As a Calif atty helping borrowers with this mess, I see several different segments of this crisis. Borrower attys have been screaming about these “revelations” for 3-5 years. (I ran ads over 5 years ago warning that pay option ARMs were inherently fraudulent.) All these problems have been uncovered by borrowers and their attys, not by govt action, which has been notoriously ineffective or even counterproductive. Here are the major problems:

    1. “Robosigners” – Bank officers were signing affidavits necessary to initiate foreclosure in 23 judicial foreclosure states, falsely swearing to personal knowledge of defaults. Such false statements under penalty of perjury are felonies in most states. Where are the prosecutions?

    2. Foreclosure mills – law firms/companies have been caught using phony notarizations, backdated or fabricated documents, and false signatures. These mostly passed undetected because judges might have to “review” 500 foreclosure filings in one hour.

    3. MERS – potentially the most serious problem because it affects who really owns the loans. Securitization mandates that loans be transferred into REMIC trusts within a strict timeframe. Late transfers are not allowed. In spite of the supposed “ease” of transfer through MERS, it now appears that perhaps 60% of US loans were never properly transferred. Absent remedial legislation, it is impossible to do so now. And the former owners may be out of business or bankrupt. So how do we get these loans to the trust beneficiaries who were supposed to own them? This is no simple paperwork correction. The train has left the station, with no more to follow.

    4. Bank violations – Mortgage lending involved massive violation of state and Federal lending laws/rules, including OCC/OTS, RESPA, TILA, as well as commonlaw fraud.

    5. Investor claims – The mortgage-bcked securities were sold with massive misrepresentations to the investors. E.g. the loans that never made it into the trusts and residential loans that were actually on commercial properties. The banks, Wall St. investment banks, and ratings agencies are jointly culpable here in at least three different types of securities fraud.

    6. Borrower claims- Many borrowers received loans that – incredibly – never disclosed the actual interest rate. Others were victims of bait and switch, forged documents post-closing, and deliberate overselling of inappropriate products through fraud or misrepresentation. And yes, some borrowers knowingly participated in this system. But they did not create the candy store; they were just told that there was free candy.

    Many other avenues are developing. But the emerging details only add to the overall portrait of fraud and avaricious greed on Wall Street and its allies, political and otherwise.

  • Jimbo

    Get, in this order:
    1) Accept Jesus Christ as Lord.
    2) Water & Water Purifier
    3) Food
    4) Fuel
    5) Firearms (shotgun, pistol)
    6) gold/silver for bartering
    7) Sanitation facility
    8) First Aid kit
    9) Trusted family & friends to work together.

    This economy is toast-there is no way to recover!

  • CW CORR

    This has been around a long time. I remember my first home purchase in 1997. I filled out a questionnaire, and the mortgage broker – a VP and Bank of America (NationsBank at the time) used it to fill out the application. I caught a glimpse of it later, and he had added about 35% to my monthly salary. I was young and dumb and didn’t make a stink. Anyway, I paid that off many years ago, but I still think about the boldness of the lie.

  • lostinmissouri

    “Meanwhile, the stock market continues to go up, up, up as if everything is right in the world and as if a juicy new bull market is now upon us.”

    Just remember that the best preforming stock market in the last 10 years was ZIMBABWE! Everyone, in that market, became trillionaires!
    (in Zimbabwe money)…..and we know how that worked out.

  • http://www.danielrevelationbiblestudies.com Robert Stout

    The word is “Greed.” The day of reckoning has finally come!!! Talk about law suits, the courts will never be able to hear them all!!! Revolution II is coming to a neighborhood like your real soon!!!

  • http://www.FedUpUSA.org Steph

    Stephen is correct: The average buyer did NOT lie on his loan application – oftent he BROKERS did it without their knowledge if they were having trouble getting a mortgage approved. MANY buyers found out AFTER the fact that their application documents had been altered without their knowledge before submission.

    Also forgot to mention the BIGGEST issue we are facing: The Complete Breakdown of The Rule of Law

    If the government attempts, like they did with their little HR 3808 scam trying to make electronic affidavits legal across all state lines, to paper over this with some sort of retroactive legislation making what the lenders did ‘legal’ in some fashion, we will have TOTALLY lost the rule of law and a complete breakdown of orderly society in this country will be the result.

  • tyler

    Other than dylan ratigan were in the hell is the media on this story? I felt like all the non stop coverage they were giving to those miners should have been just as non stop on this story. Every night its still the same old crap republicans good democrats bad or vice versa. This is an important story on so many levels the number one being the lies and crimes committed right out in the open and against american citizens with kids. Number two being the long term affect on the housing market, I mean this story impacts every american who owns a home for a number of reasons least of which the value will go down. At the end of the day I know its not gonna be that big of a deal because obama is a bankers best freind and so are the republicans you think when they take the house their gonna investigate this? Keep dreaming. The other reason this story won’t have the impact it should have is because of the judges, slimy bastards are already throwing cases out just like they did with the oil spill.

  • mondobeyondo

    Greed and fraud are endemic in today’s American society.
    Mom, baseball, apple pie, Chevrolet… now you can add greed and fraud.

    Fraud is so endemic that “honest politician” is now an oxymoron. Right up there with “sanitary sewer”, “jumbo shrimp” and “military intelligence”.

    We literally expect politicians to be dishonest. Bankers and lawyers too. And given their recent history, there’s no reason to believe any differently. It’s almost at the point where in order to succeed, you have to lie, cheat and steal… or work for the government. The game is rigged. 99 percent of us are going to lose.

    They live the American Dream. You get to live the American Nightmare.

  • sonnyboy

    Obviously, there is no sensible way to sort out this mess other than to declare all mortgages null and void and give these properties to the current “homeowners”. The government can pick up the tab as they have picked up the tab for so many other programs in the past. No different than a 19th century land grab out West. What is the alternative? The complete collapse of the real estate market! Exactly who would benefit in a scenario such as a total collapse. Certainly not the average American. if this situation is n’t corrected soon, we could have total chaos in this great land. God help us.

  • Chris Burton

    OH MY GOD!

    Seriously folks, this is HUGE!

    About as big as the Revolutionary War.

    This will not go away.

    I agree with many posts:

    1. Re-consider Jesus, Check out John Chapter 3, and read all of Ecclesiastes, to the END! (Humor me even!).
    2. Prepare yourself and family for survival.
    3. This is the tip of the iceberg of a MAJOR shift in the USA.
    4. Turn OFF your TV.
    5. Check out “http://www.youtube.com/watch?v=eAaQNACwaLw”
    6. Also check out: http://www.youtube.com/watch?v=NO24XmP1c5E
    7. What was once ‘extreme, fringe and radical’, is now the Reality.

    Did I mention, turn off your tv?

    CB

  • SimonP

    Looking from outside the USA, most of us are amazed at how much you guys are prepared to put up with from your corrupt establishments.
    What ever happened to the American spirit which yelled from the rooftops “We’ve had enough, and we’re not going to put up with it anymore”
    Why don’t those huddled in Obamaville tent cities all over American walk back into their fraudulently foreclosed homes and tell the bailiffs to “F-off!”

  • Mike

    The Jimbo crowd is scary. Pushes one religion and endorses guns. Christians want to take our freedom.

    Id rather live in a broken system than spend a day with these christian nuts spreading hate and division.

  • Sanguine

    Ripping off the band-aid. AAAUGH! Ewww, that’s gonna leave a scar.

    I know some good people who would say this article outlines why even more draconian regulation of the financial world is called for. But the question must be asked: if it weren’t for government guarantees via Fannie & Freddie, the political coercion of the Communi…ty Reinvestment Act, and the profligate money creation by the Frauderal Reserve, would the mortgage crises have happened in the first place?

  • Cramer

    There’s something really stinking about this whole mortgage mess. You can go to this site and find out who really holds the note on your mortgage. I would do this to PROTECT yourself and family in the LIKELY event they call in the loan. It’s better to know up front if they have the documentation to proceed.

    Go to http://action.seiu.org/page/speakout/wheresthenote?js=true and follow the directions and DEMAND TO SEE YOUR MORTGAGE NOTE. You’re going to be surprised at your loan service company’s response.

    By law, they have 20 days to respond and 60 days to produce the document.

    SHARE THIS SITE WITH EVERYONE YOU KNOW TO STOP THIS FRAUD UPON US!

  • Puzzled

    Ok, I admit it, I don’t get it. Fine, if there’s no proof you own it, then you can’t foreclose, but what’s all the screaming about? Take me for instance: I chose to rent because housing prices were absurd. I paid my rent for years. I was laughed at, but knew that I was doing the economically sane thing. Now I’m told that the people who bought houses that were too expensive were the victims? Granted, the loan officer shouldn’t lie on the application, but as far as the borrower is concerned, they went into the bank wanting to borrow X dollars at Y interest for 30 years, and they got it. Do we really want to say that they have a right for the bank to be their parent and tell them no?

    So, now, those victims are getting a free house, and I continue to pay rent. How exactly is it worth screaming about how poor and ripped off they are? Where’s my free house?

    Basically, my question is this. Why the morality play? Why do we hear terms like “indifference to the suffering of homeowners” when the people in question took out a loan they wouldn’t be able to pay, expecting the impossible, and in fact are not homeowners at all? There are lots of possibilities as to where home ownership went in the mess, but why on earth should it be presumed to go to the one person we know did not pay for it?

  • Kevin

    Question:
    Would you rather invest time and money in preparation for a disaster that dosent happen?

    Or do nothing and put your trust in the government and its agents – and find disaster enveloping you, your family, and society?

    Recall New Orleans and Katrina.
    This may be the straw that broke the camels back.

    Better

  • Ike Hall

    That’s all well and good for those of you who are facing foreclosure. However, I am one of the fortunate majority who still has a job and has a reasonable mortgage payment since I didn’t buy above my means. What I want to know is, how do I find out who’s got my mortgage? I assume, perhaps wrongly, that it’s the same bank I’ve been paying all this time, but what if it isn’t? Can some bank that thinks it has the mortgage foreclose without notice, even though I’m current on all payments?

  • Lester

    Those of us who kept up our mortgage payments throughout all this mess may have been handing over hard-earned money to institutions which very possibly may not, it seems, even own our mortgages.

    If a borrower can determine that nobody really knows who owns his mortgage (and it seems this will take decades to unravel) what does he have to lose by going for a strategic default if the economy really is going down the pan?

  • daveco

    My question is what happens if you bought a foreclosure? Can the original people come back and take the house even if they did not pay the mortgage and now the paperwork is bad?

  • justin case

    It is a shame those who caused this will be very well protected when the times get desperate. They are the ones who should be targeted first! Unfortunately they will be untouchable…just as they are now.

  • Achanz

    daveco…
    Check your title insurance policy or call your escrow officer on your concern; she/should be able to give you credible answers.

  • Achanz

    Remember “World Saving”
    They were one of the pioneer for the “pick a payment plan” and majority of their loans were variable rate programs. Their crystal ball guided them to sell ($35 billion)just before this chaos began.

  • Achanz

    Funny that in the past 25 years there was at least one “No money down” or “OPM” seminar per month throughout America. Their famous motto “If you have no equity what do you have to lose if/when shit hits the fan?” Everyone answered “Nothing”.
    These seminars also taught the public to purchase their homes in only one spouse’s name and preserve the other for urgent need to purchase a separate property.
    By statistic 45% plus of foreclosures are “strategic foreclosures” 25% are victims with loan they didn’t understand or were railed into by some “real estate agent/loan officer” and in many instance by non-licensed independent loan officers worked under corporate roofs.
    The last 30% are investors with 10 year hybrid loans who walked away from their overvalued properties after years of rent profit at interest only payment as investment.
    Fed’s general tactic in correcting the problem will not work. They should invest our tax dollars in case by case, remedy per situation method with strict interrogation to authenticate each case.

  • Achanz

    Ike Hall…
    You should consult a title company to print out a summary of your property. I do that every six months or so.

  • Achanz

    By the way, I am not an attorney. I am just a licensed realtor and a notary public.
    I cannot give advice but only say what I would do if I was in such situation. My believe is: there may be such thing as “minimum by law” but there’s no such thing as “minimum by ethic”

  • Novista

    OK, someone connect the dots. Where does Fannie and Freddie fit in, in all this? I had the impression that between them, they bought the majority of mortgages issued during the housing bubble.

    And, how do you make RMBS, CDOs etc., without mortgages? If F&F bought so many did they sell them to the Wall St slice’n'dice machine? So what’s on their balance sheet now?

  • Tony

    Lennie Pike is right. Remember we are talking about fraud here, this is a legal issue and so it can be solved very easily w/ a new law that will make it all go away. There is no way they will let the banks fail. They will pass a law that pretty much says the owner of the mortgage is whoever the bank says the owner is. The people get screwed. I bet this law will be votedd on and signed before new years & every rep that is on their way out of office will co-sponsor it.

  • Bill

    Collapse of housing and commercial real estate means collapse of American dream. Good heavens!

  • http://crux ROY

    The larger our government grows the more the corruption grows within our government. These large financial institutions should be allowed to fail and not bailedout by the gov’t or the taxpayers.Those who run those institutions should be held accountable for their actions, proscuted and jailed. The major problem is that most of our congress are in the pockets of those large financials. The only way to rectify the financial reform is put back the 12 page GlassSteggal Act and remove the 2400 page Financial Reform Bill which is a joke.

  • Achanz

    Novista,

    First you’ll have to understand what Fennie and Freddie do and who ends up paying for it.

  • Achanz

    http://o.bamapost.com/

    A doctor from Israel says: “In Israel the medicine is so advanced
    that we cut-off a man´s testicles, put them into another man and in 6
    weeks he is looking for work”

    The German doctor comments: “That´s nothing, in Germany we take part of
    the brain from a person, put it into another person´s head and in 4
    weeks he is looking for work”

    A Russian doctor says: That’s nothing either. In Russia we take half
    of the heart from a person, put it into another person´s chest and in
    2 weeks he is looking for work.

    The US doctor answers immediately: That´s nothing colleagues, you are
    way behind us. In the USA (just over a year ago) we took a person with
    no brains, no heart and no balls and put him in as President. Now the
    whole country is looking for work.

  • JR

    Hey! Nuthing that a few mindless rounds of “Yes we can” by a bunch of unthinking leftist lemmings can’t fix!

  • Achanz

    “Left” and “right” hands lead to the same body… is America ready to replace both? Or is it possible at this point?
    One of the first thing needs to be done is to get rid of the Federal Reserve System that was created by Rothschild, Rockefeller, J.P Morgan, Warburg and Franklin D. Roosevelt. The word “System” is used because it was never a bank, Federal Reserve System is creating money out of nothing, loaning it to the U.S. government and then collecting interest on the loan. It is, perhaps the greatest private “ponzi scheme” in history.
    This intervention by the Federal Reserve System is keeping interest rates on U.S. Treasury bonds artificially low. In a true “free market” situation, the interest rates on U.S. treasuries would rise to reflect the rapidly declining economic situation in this nation.
    Due to the massive explosion in the size of the U.S. government debt and due to the very weak U.S. economy, interest rates on U.S. treasuries should have shot through the roof by now. Rational investors would normally require an increased return for the increased risk that U.S. treasuries now represent… But that is not happening. Instead when there are no buyers for U.S. treasuries at current interest rates, the Federal Reserve System just steps in and buys up all the excess bonds that need to be purchased. Remember that the Federal Reserve System is owned and operated for profit by a very powerful group of elite international bankers. Now can you link this to the foreclosure situation?

  • http://www.selftestengine.com ali

    “Left” and “right” hands lead to the same body… is America ready to replace both? Or is it possible at this point?
    One of the first thing needs to be done is to get rid of the Federal Reserve System that was created by Rothschild, Rockefeller, J.P Morgan, Warburg and Franklin D. Roosevelt. The word “System” is used because it was never a bank, Federal Reserve System is creating money out of nothing, loaning it to the U.S. government and then collecting interest on the loan. It is, perhaps the greatest private “ponzi scheme” in history.
    This intervention by the Federal Reserve System is keeping interest rates on U.S. Treasury bonds artificially low. In a true “free market” situation, the interest rates on U.S. treasuries would rise to reflect the rapidly declining economic situation in this nation.
    Due to the massive explosion in the size of the U.S. government debt and due to the very weak U.S. economy, interest rates on U.S. treasuries should have shot through the roof by now. Rational investors would normally require an increased return for the increased risk that U.S. treasuries now represent… But that is not happening. Instead when there are no buyers for U.S. treasuries at current interest rates, the Federal Reserve System just steps in and buys up all the excess bonds that need to be purchased. Remember that the Federal Reserve System is owned and operated for profit by a very powerful group of elite international bankers. Now can you link this to the foreclosure situation?

  • Tusense96761

    What we need in this country is a come back of morality. These fraud foreclosures could not continue if the people in the courts and the government were not complicit but were acting within the law of property rights that have existed since the 1700′s. Are the small payoffs worth destroying the greatest nation on earth to let the few greedy parasite banksters running the Federal Reserve steal American’s lifetime of hard work that they saved in their homes.

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