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If you work in the mortgage industry or for a title insurer, you might not want to make any plans for the next six months.  Foreclosure-Gate is about to explode.  It is being alleged that many prominent mortgage lenders have been using materially flawed paperwork to evict homeowners.  Apparently officials at quite a few of these firms have been signing thousands upon thousands of foreclosure documents without even looking at them.  In addition, it is being alleged that much of the documentation for these mortgages that are being foreclosed upon is either “improper” or is actually “missing”.  As lawyers start to smell blood in the water, lawsuits challenging these foreclosures have already started springing up from coast to coast.  In fact, some are already calling Foreclosure-Gate the biggest fraud in the history of the capital markets.  JPMorgan Chase, Ally Bank’s GMAC Mortgage and PNC Financial have all suspended foreclosures in the 23 U.S. states where foreclosures must be approved by a judge.  Bank of America has actually suspended foreclosures in all 50 states.  Now, law enforcement authorities from coast to coast are calling for investigations into this controversy and it could be years before this thing gets unraveled.

This thing just seems to escalate with each passing day.  It is being reported that the attorneys general of up to 40 U.S. states will be working together on a joint investigation into this foreclosure crisis.  Lawmakers in both houses of the U.S. Congress, including Nancy Pelosi and Christopher Dodd, have called for an investigation to begin on the national level.  U.S. Attorney General Eric Holder said last week that he is looking into the issue.  Things are certainly getting very serious out there.  Never before has there ever been such a national focus on foreclosure paperwork.

But apparently there are good reasons for such scrutiny….

*One GMAC Mortgage official admitted during a December 2009 deposition that his team of 13 people signed approximately 10,000 foreclosure documents a month without reading them.

*One Bank of America employee confessed during a Massachusetts bankruptcy case that she signed up to 8,000 foreclosure documents a month and typically did not look them over “because of the volume”.

But the “robo-signing” aspect of Foreclosure-Gate is just the tip of the iceberg.  Apparently there is a whole lot more going on than just a bunch of bad signatures. 

Peter J. Henning, a professor at Wayne State University Law School in Detroit, was recently quoted by MSNBC as saying the following about Foreclosure-Gate….

“You’ve got so many potential avenues of liability. You don’t even know the parameters of this yet.”

The sad truth is that potentially millions of foreclosures across the United States could potentially be invalid because the securitization process has muddied the chain of ownership.  In fact, an increasing number of judges from coast to coast have been ruling that the “owners” of the mortgage have no right to foreclose on a property because they lack clear title.

At the core of this title controversy is MERS – Mortgage Electronic Registration Systems.  MERS is based in Reston, Virginia and it was created by the mortgage industry to enable that big financial firms to securitize and swap mortgages at high speed.  MERS allowed these big financial firms to largely avoid the hassle of filling out more forms and submitting new filing fees every time that a mortgage was traded.

But now MERS is facing some very serious legal challenges.  A recent article in Businessweek described the situation this way….

A lawsuit filed on September 28th in federal court in Louisville on behalf of all Kentucky homeowners claims that MERS was part of a conspiracy to create false promissory notes, affidavits, and mortgage assignments to be used in mortgage foreclosures. Similar class actions have been filed on behalf of homeowners in Florida and New York. Karmela Lejarde, a MERS spokeswoman, declined to comment on any pending litigation.

The reality is that as millions of U.S. mortgages have been bunched together and traded around the globe at lightning speed, it has become increasingly unclear who actually has title to them and who actually has the right to foreclose on these properties.

Title insurers have backed the titles of millions of these foreclosed properties and now potentially find themselves in a heap of trouble.  Some of the biggest title insurers have already begun circling the wagons in an attempt at damage control.  For example, one of the biggest title insurance companies in the United States, Old Republic National Title Insurance, has already declared that it will no longer write new policies for homes that have been foreclosed on by JPMorgan Chase and GMAC Mortgage.

So what happens if nearly all title insurers start avoiding foreclosed properties? 

Won’t that make it much more difficult for the banks to sell the massive backlog of foreclosed properties that they have accumulated?

In addition, Americans that have purchased foreclosed homes may now be facing some serious problems themselves.  Millions of Americans may now “own” homes that they do not have clear title for.  When it comes times to sell those homes, many Americans may find themselves unable to do so. 

Needless to say, this is a complete and total mess.

Already, U.S. banks have a record number of foreclosed properties that they need to clear out, and now all of this scrutiny on foreclosure paperwork and all of these lawsuits are going to grind the process of getting these homes sold off to a standstill.

In fact, the true legacy of Foreclosure-Gate may be the massive amount of bank failures that it causes.

It would be difficult to understate how much of a nightmare Foreclosure-Gate is going to be for U.S. mortgage lenders.  Having to go back through the paperwork of millions of old mortgages is going to be a complete and total disaster.  If banks end up being unable to foreclose on a large number of bad mortgages, it could potentially be enough to put many banks out of commission for good.  Not only that, but the legal fees that many of these banks will accumulate defending lawsuits related to Foreclosure-Gate will be astronomical.

The U.S. mortgage industry was already on the verge of death, and Foreclosure-Gate may just be the straw that broke the camel’s back.

The reality is that U.S. banks are drowning in foreclosures and this current crisis is just going to make things a lot worse.  Back in 2005, there were approximately 100,000 home repossessions in the United States.  In 2009, there were approximately 1 million home repossessions in the U.S. and RealtyTrac is now projecting that there will be an all-time record of 1.2 million home repossessions in the United States this year.

For the U.S. mortgage industry, Foreclosure-Gate must feel like someone has dropped a bomb on them after they have already been beaten up and doused with gasoline.

Attorney Richard Kessler, who recently conducted a study that found serious errors in approximately three-fourths of court filings related to home repossessions, says that Foreclosure-Gate 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.”

While it may be easy to beat up U.S. mortgage lenders and say that they deserve all this, let us not forget that this is going to impact a whole lot of other people too.

It is going to become much harder to get a mortgage.  It is going to become much harder to buy a home.  It is going to become much harder to sell a home.  The U.S. housing industry is likely to suffer a significant downturn due to all of this.  There is even a good chance that the entire U.S. economy could be dragged down for an extended period of time.

So no, Foreclosure-Gate is not good news for anyone. 

Well, except maybe for lawyers. 

But for virtually everyone else this is really bad news.  Any hope that the U.S. housing industry would experience a quick recovery is completely and totally gone.

  • Mike

    Devastating. So many homes lost. We need to pull together. The religous right wants us divided so they can gain power. Abortion, Gay Marriage, and wedge issues are used to separate us and distract us from what is going on.

    The rich are taking everything. We will be left with nothing and no jobs as well. Just make sure we reduce the tax on the rich, something about a few dollars trickling down…

  • Is it going to be that difficult to go back and show that the mortgagor was not paying their mortgage.. and therefore the mortgagee had every right to foreclose on the property?

  • tyler

    I feel sorry for my neighbor her house has been on the market for well over six months and shes in foreclosure. Within a week of foreclosure gate hitting the bank sold the property and the woman and her kids had to leave. I tried to tell her about foreclosure gate but she is a sheeple and its either over her head or I didn’t explain it correctly. Shes gone now and we got a new family moving in next week.

  • CJFYuma

    One more nail in America’s coffin. Did I happen to read the phrase “rampant fraud” again? Nawh, really?

    Are the banksters up to their old shenanigans again? Is the “moral hazard” starting to show up in the financial industry again so soon after the immoral fed bailouts?

    Pity us poor American citizens who are preyed upon daily by the same immoral Wall Street crooks and DC dirty politicians. What about all that financial reform crap?

  • The mortgage industry was making record breaking profits from 2002-2007 from Quickie-No-Credit-Check-No-Down-Payment-No-Job-No-Income-No-Collateral-Robo-Mortgages…Now they are paying piper for it! It will take 10 years to untangle this collossal real estate mess that they created back in 2002-2007!

  • Truth

    Wait….this is only part of it. What about the banks who bought back these properties because they didn’t sell enough? Those statistics still show as a sell. Liken this to the census workers who were hired and fired on a daily basis just to prop up the employment figures. For banks and real estate the true accounting is still broken and they are doing everything possible to keep the truth hidden.

  • bob

    “But for virtually everyone else this is really bad news”

    Oh really ? If big banksters parasites will go belly up and millions working folks will not be evicted. is it bad?

    Its not gonna happen Obama and congress again will rescue big banks and “save housing industry”
    They not call it capitalism for nothing.

  • Very useful summary article. It is hard to imagine that things will not get worse if the U.S. Government and Legal System both are focused on this problem. All this will do is lead to more inefficiency in the U.S. economy, and the elevation of the hill up which ‘recovery’ molasses is flowing has just achieved a more acute upward angle. I will be linking this article tomorrow morning for the Subscribers of the Resource Research Website

  • Odin’s Raven

    Maybe the Americans will need a Domesday Book to establish good title to property, showing who used to own it and who claims it now.

  • ticket

    They’ll just change the law on Title and carry on reposessing …

  • stacy

    does anyone know how this affects people who are paying their mortgage on time? 15 years from now when i make my last mortgage payment, will someone send me the title? will I have ownership? i am starting to doubt that i will, and in that case, what is the point of continuing to make payments. any comment is appreciated.

  • This emergency will not be allowed to go to waste. It will not be long before someone calls for the entire mortgage industry to be nationalized to get it out of the hands of greedy bankers.

    It will be so easy that it will be done in the blink of an eye. The promise of a fair government run mortgage system will have mass popular support.

    Think of a mortgage system that mirrors our tax system, lower priced mortgages get near zero rates while higher end mortgages pay much higher rates, for example a 50K mortgage is at 1% while a 500K mortgage is at 10%.

    No need to verify income or do a title search, the government knows all and guarantees all. Marx is smiling.

  • Anon

    Another great article that explains this complex matter in simple terms. One minor point though, this line here:

    “Won’t that make it much more difficult for the banks to sell the massive backlog of foreclosed properties that they have accumulated?”

    No, it does not make it much more difficult, it actually, it makes it impossible to sell a foreclosed property. No title insurance, no sale.

    If I am factually incorrect, please someone explain it to me.

  • Just Observing

    Yep….truly a mess. And doesn’t mention all the folks that have bought foreclosed homes in the last couple years: do they REALLY own them if the bank didn’t have the right to sell it ?

    What happens if the previous owner shows up, lawyer in tow, and wants to move back in ?

    What a certified mess !

  • Not so Mad Max

    This is what happens when you put the bottom line ahead of doing things right the first time (Didn’t their dads ever teach them that?). It would have cost less money to staff these departments properly and do the job right the first time, than to cut coroners and now these dimwits are facing Billions in losses. The banks had other options like expanding cash for keys, working with people who where employed and could make their mortgage payment at a lower rate. This could be the event that tips the whole mess into the abyss just because a bunch of senior VP’s didn’t want to hire extra people, or have a teaspoon of imagination.

  • me

    So what about all the CEOs and other officers who were the best and brightest who directed that the mortgage industry change the way they did business. Securities sold that generated all the “profit” that provided the basis for their BONUSES and increased pay packages.

    I would think some jail time would be appropriate, since the securities were based on apparently nothing.

  • Gary

    greedy capitalists wrongdoing exposed yet again. What a surprise! NOT! When will people learn that capitalism is inherently a flawed system? We need to be more like Western Europe-a social democracy that puts people before profits.

    I hope all these banks go down hard and this time no bailout. No more too big to fail.

  • VegasBob

    We don’t really have capitalism in the US. We have corporatism and crony capitalism. Both political parties are corrupt to the core, and neither represents the interests of everyday middle-class Americans.

    Foreclosuregate is just the latest in a series of financial crimes committed by the banksters and the government against the people.

  • Flubadub

    A despicable display of the system’s lack of integrity. Terrible news for both buyers and sellers of existing homes. Not quite as bad for new home builders. Might even be considered good news if you own rentals or some of the REITs.

  • Bill Gillespie

    Gary, get a clue first before you make such bold and incorrect statements such as “capitalism is inherently a flawed system”. I honestly doubt you know what capitalism truly is, because believe or not the US is not a capitalist system…not even close. Capitalism believes in competition. The big banks have done everything they can to reduce the competition. They want control, manipulated markets, not free markets. Greedy people do not survive in FREE markets, they thrive in corrupt, manipulated markets. Where were the government regulators all during this crisis?

    Some will argue we need to overlook this crisis and not halt foreclosures for the sake of the economy. Already that mantra is out there and in these comments. It’s BS. These foreclosures need to stop…..NOW. This is a Constitutional violation of our 5th Amendment rights and if you are clueless about that, take a look and read the document. We cannot allow our rights to be continually trampled upon. We demand “due process” because it is our Constitutional right. Added to this are State’s rights regarding property. Any attempt to gloss over this strips a State of its fundamental right to protect it’s own property, something that will never cross state boundaries and therefore fall under federal jurisdiction of interstate commerce. We are not talking about goods and services but physical property, land, something remains where it is.

    The Bankers, the politicians, all lied. They got caught with their hands in the cookie jar. Regardless of the effects on the economy, we must correct this, regardless of the cost. Failure to do so means we are slaves to the banks and our politicians. It is time to show them they work for WE THE PEOPLE.

  • Joe

    With the current focus on the Mortgage Foreclosure mess, aka Foreclosuregate, I would venture to say the same thing has happed in the Credit Card industry as well. After all, why would greedy banks stop at home mortgages when they could extend this fraud to the millions and millions of credit cards that have been issued. If this is the case then where is the original contract signed by the customer when they applied for a credit card? Most likely wrapped up in some type of Collateralized Debt Obligation (CDO) or some other Asset-Backed Security (ABS) instrument? If true, wait until this hits front page news. Talk about tip of the iceberg.

  • Grumpy

    First, kids, this is not an example of capitalism – it’s fascist croneyism, nothing more, nothing less. Please educate yourself on the definitions of word before spitting them out of you mouth/keyboard.

    Second, who doesn’t think that the political class(less) won’t be bribed into sweeping this whole thing under the banksters’ rugs? If you don’t already know, there are two sets of rules – one for them, one for us. Their rulebook is much smaller and far more permissive; it includes seizing, stealing, or lwayering all wealth and property away from you. Our rulebook tells us to sit back and let them, and to do what they tell you to do because you’re too dumb to think for yourselves (and, judging from some of the commentary I read around here, the may be onto something with that – at least for a not insignificant percentage of the populace).

    I really appreciate the stories and links posted on this blog, but some of those that post comments are as dense as a concrete barricade and twice as thick. If you keep blaming the ‘right’ or the ‘left’, you’re still playing by their rulebook for you. Pull your heads out of the tiny little box they’ve constructed for you via the media and paid shills that blog and learn to think critically for yourselves.

  • Mr Carpenter

    Gary, go to Europe (and the UK) and all you see is profits before people. I’ve lived there, so I can tell you from first hand experience. Nine years total. OK?

    The sham you think of as “social democracy” is just the re-arranging to deck chairs on the Titanic.

    If only we had something resembling capitalism instead of fascism in the world of business.

    You know, where everyone essentially starts on a level playing field (instead of having advantages by luck of birth into “landed gentry families” and /or wealth) and where results would largely come from skill and ability rather than silver spoons in the mouth.

    Don’t blame what doesn’t exist for the problems we have!

    Fascism = the combination of corporate and governmental interests (to the exclusion of benefits for the general population).

    In case it has escaped your attention, BOTH major parties and almost all major political parties worldwide have been going down this trail for many decades.

  • Mortgage securitization is to the current recession what buying stocks on very small margins was to the Great Depression. Both were the result of dangerously loosened regulatory control over their respective industries and allowed people to buy things they couldn’t really afford, entirely on the promise that they would appreciate in value enough that the buyers could pay off the loans and still come out ahead. The resultant bubbles both inevitably burst, but in the Great Depression many of the worthless stocks simply vanished when the corporations that issued them went under. The mortgage securitization mess is in many ways worse because the mortgages aren’t purely paper wealth like stocks — each of them is tied to a piece of real estate that isn’t going to go away short of a natural disaster like a river shifting its banks to wipe away a whole subdivision or a meteor turning it into a giant smoking crater. That means that recovery is going to be even harder because we somehow have to sort out who is the legitimate owner of each of these parcels of land with houses on them. Until we can cut through the lies and fraud (and it was happening at all levels, from loan officers telling applicants to fill out their applications based on wishful thinking about future raises instead of current income to senior bank officers pulling Enron-style manipulations of numbers), we can’t even begin to move forward to repairing the damage and getting back to housing markets that represent the fundamentals of the value of the properties.

    Not to mention that the faith of the American people in the honesty and integrity of those in high places has taken yet another body blow. Back in the 1930’s, people still believed that most authority figures were genuinely worthy of the respect accorded to their official titles. Now, most people have become increasingly cynical, and there’s a very thin line from that to each-man-for-himself lawlessness.

    I’m trying to have faith in the ability of the American people and American spirit to once again pull together like our grandparents and great-grandparents did in the 1930’s, but when I look around my neighborhood, I’m finding it harder and harder.

  • lostinmissouri

    Zero hedge is reporting that Commercial Real Estate, has been handled by MERS also. An even bigger mess in CRE foreclosures is coming.

    The mortgage business in America is f*cked!, along with our economy. This could very well be the “black swan” that brings everything down.

    Blame lies at the feet of our corrupt government, corrupt regulators, corrupt Congress, corrupt Senate, who are all bought and paid for, by the TBTF banksters, who are the FED RESERVE.

  • lostinmissouri

    Someday I wish I could sit down with you, buy you a beer or two, and talk.

    Capitalism is an inherently flawed system, but the best system ever devised….history proves that.

    Don’t You know, that Mississippi, which has the lowest standard of living, in all of America, is higher, than that of western Europe’s? Ever seen the dumps, people of Europe, live in?

    And You say we need to be more like western Europe? NO THANKS. At least here, there is still a chance to move up the latter of success….that is not so in Europe.

    You are either born rich, or you remain a “peasant”, with that “enlightened social democracy” of Europe’s. Of course, in Europe, you can sit on your ass all your life, and still be fed, if that is what you call living.

    Give me true capitalism anytime.

    (ps: America has already bailed Europe out twice and looks like we may very well have to again.)

    imho. I might be lostinmissouri, but independent and free.

  • sonnyboy

    Why can’t the banks just lower the interest rate without a costly refinance or reduce the principle of the mortgage and or both? Is it because they are only servicing the mortgage after it has been traded who knows how many times worldwide? Why do the banks change the account number of the mortgage from one 10 digit number to another for no apparent reason and without prior notification? Where EXACTLY are the titles (deeds) to all of these properties? Are they in a bank safe or in a dumpster halfway around the world?
    The banks should have never been allowed to trade these mortgages electronically worldwide. The only possible solution is to have some type of Homestead Act whereby these mortgages are declared null and void. In other words if you are living in it, you own it. Basically this is no different then a 19th century land grab out West. This certainly is a better solution than shutting down the real estate market and throwing people out of their homes. Of course the government can create an entity which picks up the tab. After all we wouldn’t want the banks to absorb a loss like the middle class. To Stacy, do the best you can to find out exactly where the title to your home is now.

  • jdanger

    as long as you bought “Title Insurance” the individual homeowner should not worry too much about not ‘owning a home they bought’ in a foreclosure. That’s basically the whole point of title insurance; you or the person making the claim against you will be indemnified, depending on the terms of settlement. Now if large Title Insurance Underwriters like First American or Fidelity stop insuring Trustee’s Sale Guarantee’s (foreclosure sales) due to a large amount of claims; then there will be a huge problem…. Which looks like it might happen, or title fees could skyrocket and increase the purchase price.

  • The banks know that the $US will soon be worthless, so they are going after the real property to shore up their balance sheets. In fact they planned it this way years ago – a la, the cheap rate mortgages that they designed with full knowledge of foreclosures on a massive scale being the result. Investing in a dwelling that has had a mortgage on it would be a bad idea as the investor can never know for sure if they really own it. Titles on mortgage infected properties are now defective throughout the USA. A title that has MERS on it is now a broken chain of title with a “cloud” on the title that will take years (possibly decades) to clear up, and only if there are no challenges to the claim. Clear title on mortgage infected properties will become rare. Invest in tax defaulted land without a dwelling and/or a mortgage on it, as people will have to live somewhere and will be looking to put their money into property without the cloud hanging over them threatening them with the loss of it in a title dispute.

  • All i can see is the whole housing mess. Was all preplanned to just bail out the gov. You see any of the tarp money? The buy trillions of dollars of goverment debt. Meaning the gov is actually its self. An the gov still gets your home at the end. Through the owner ship of freddie an fannie may. The gov get more from the american people. With outv raising taxes on you.

  • Rooster

    I am a real estate attorney licensed to practice in the State of Texas. 10 years ago a group of attorneys won a massive judgment against a few of the country’s largest mortgage servicers because they, not MERS, foreclosed the properties. One year after that appeal finished, the Texas legislature passed new legislation enabling mortgage servicers to process foreclosures for MERS. Moral of this story: Texas saw this coming and fixed it ten years ago.

    Next, when this article claims buyers of foreclosed properties could destroy the title industry, the author misses both the nature of title insurance and the bona fide purchaser (BFP) doctrine. A BFP is a buyer that pays value for property without notice of another party’s claim to the property. The vast majority of buyers of foreclosed property will be BFP’s, thus, the title industry should not face many claims. If anything, a wrongfully foreclosed homeowner’s measure of damages is the equity in the property, which in most cases will be little to nothing.

    What is “Foreclosure Gate” all about? Lets just call it October surprise. Only people that win are the plaintiff attorneys and the media.

  • This was fraud. Pure and simple.

    Banks have no intention of lending money to lend money and make an honest living – they were DEFRAUDING people. Anyone who takes on a loan at this point is a fool.

  • Ziggy

    These lenders deliberately FAILED to complete the LEGAL steps required by LAW to have the legal right to foreclose. They THEN destroyed the documentation to FORCE the courts to rely upon convenient COPIES…

    HOWEVER what about the Mortgage Insurances they’ve ALL CASHED “illegally?” They knew these loans would fail – defrauded the investors by claiming these were AAA rated loans – defrauded the borrowers by using all sorts of trickery to deceive these borrowers and this is already admitted via depositions from multiple lawsuits across the nation.

    Countrywide admitted to selling 142-Billion Dollars of Mortgage Loans to borrowers that Countrywide KNEW could NOT repay. They admitted to deceiving these borrowers – using teaser rates to calculate their mortgage payments – giving the borrowers summarized amortization docs – and KNEW these borrowers would ultimately default.

    Using Countrywide’s own data that equates to over 965-Thousand families being tossed to the streets for loans that Countrywide deliberately sold them. These people have NO IDEA how their loans work… These are just regular folks targeted by these lenders. How many marriages will this destroy – how many folks thrown into such a spin they go back to drugging & drinking..? How many lives will be destroyed these greedy bastards who knowingly sold these folks loans they could not figure out nor repay…

    What about the mortgage insurance already collected but these lenders. What about the other 5-10 insurances these liars purchased – why aren’t they being prosecuted for Insurance Fraud…?

    If you want to learn the dirty secrets read the complaints by investors and insurance companies – Read the MBIA Lawsuit and find out how deceptive and deliberate these lenders were….

    Countrywide even created a separate Underwriting software program to APPROVE borrowers that COULD NOT otherwise be approved for ANY damn loan… THAT is why folks are seeing so many NINA & SISA loans flowing into the courts. These borrowers did NOT walk in the bank and ask for a Stated Income – Stated Asset Loan – these folks never heard of this stuff. Those loans were traditionally for business folks. They never heard of No-Income – No Asset mortgage loans and if they would have the bank would have likely asked for a damn drug test…

    Folks need to seriously look at this because THESE LENDERS controlled the entire ordeal except ONE little PIECE… YOUR SIGNATURE… that’s what they needed to create FAKE MONEY – Negotiable Instruments – that’s what this is about. They changed these loans to a Stated Income – Stated Asset to maintain deniability because they KNEW these loans were imploding which is WHY they were caught BETTING against their own investments. They are DIRTY through & through..

    The politicians are in bed with Wall Street and that’s why there are NO serious prosecutions even by the FBI. The WALL Banger-Bankers have the politicians BOUGHT & PAID for including Obama and Crew… It doesn’t matter democrat or republican – this is WAY beyond partisan bs –

  • breckandy

    O, imagine the repercussions

    Not only the lawsuits and claims against Mortgage and Title Co.s.

    Who will buy or sell any foreclosure after this?

    How will it affect people who have bought a foreclosure, sold one or are trying to sell one.

    Interesting to see if this will affect the normal RE market by bringing it to a halt or enhancing it by taking foreclosures off the market.

    Will people who are upside down be more likely to walk away. How will this affect the RE market?

    Our gov’t is thinking about this and will act properly to aid the Lobbyists and get back to business as usual.

  • Gary

    Maybe I need to clarify-Capitalism will ALWAYS evolve in to the crony capitalism/fascist we now have in the USA.(AKA BRA)

    This is why I say it is inherently a flawed system.

  • Kernel Klink

    Strange isnt it? Let’s just get to the heart of the matter OK?!?!?! So many assumptions when its all very plain to see from a Global standpoint as well… Not only is it going to start/degrade most of us to the point of joining the Govment to survive/join their team (grow their numbers for better control though all this, people and $$$ control = HELPLESS Droids) like Europe butt they have their numbers for Blah Blah Blah. Remember, even the rich globally lost some of their SH!T/minds rendering them helpless trying to make it through too.

    Our Destiny and Future of this planet is controlled by some of the smartest or dumbest underground people (we’ll never know so dont even go there) in the world and even with the most power/best technology they turn back to cold war tactics for global dominance… CRASH Everything!!!

    The poor puppets (all visible L or R Gov. figures, Banks, Fake OIL CO’s and Other Countries etc, etc.) mentioned, though paid well (they take all the heat and attention off the REAL underlying issues) dont even run this country “WE DO” or should (Some proper structure would be nice, Shall we take it back or “let it be”/dont get involved hun, SINdrome) cause the freaks will continue to joy ride us all from a mile or two down in the Earth somewhere think’n they may make it, may not be the case when everyone reads/understands this POST or nothings left of the Earth to enjoy because they were so smart! Did I just type that? Yes I went too DEEP again because it’s been lurking for too long now and should come out of this GATE portal!!! Dont be fooled again, WE OWN THIS COUNTRY… each and everyone of us. It would make sense to distibute the riches (even just the mortgage crisis cash) to the People and have free trade again. What a concept

    You know what they say (scare tactic) “dont put anything in writing” or dont start this little theory up again (butt I had to after reading comments) because Droids dont THINK for themselves Yet!

    In High Hopes, Honor, Respect and Disbelief of a POORly RUN AmericA that can or could change for REAL/truely be a great LEADER. KK

  • Fair E. Godmother

    Another election propaganda scheme brought to you by people wanting to tell us what to do and needing to stay in power. I know how to take care of myself, I don’t need the government or the media to do it for me.

  • Donna

    Make no mistake,the IRS does the same thing of signing without reading. I know. When asked if the agent I was speaking with had read my request and reason for an appeals hearing, he said “no I can’t say I did. I sign 50 of these a day.” Due process is but a good idea.

  • happy face

    The greedy ones were the ones that bought more house than they could afford and used a mortgage that was guaranteed to blow up in their face and assumed their jobs were steel plated and trees grow up to the sky.

    Boo hoo.

  • rebootd

    Hey, I am not especially a lawyer-lover, but I feel compelled to point out that we need them. If it weren’t for lawyers, the average citizen would have no way to file suit, no legal advice, and no power at all against these powerful corporate interests. Everybody loves to bash lawyers, until they need one.

  • orsobubu

    @ Gary

    “Capitalism will ALWAYS evolve in to the crony capitalism/fascist we now have in the USA. This is why I say it is inherently a flawed system.”

    Exactly. Liberalism and fascism are the 2 faces of capitalism. The fascist form (i.e. the old state-capitalistic soviet empire) is mandatory when irreparable crisis spread. But I have to add that in US the fascist form is not arrived yet.

    First of all, pure capitalism ended in the beginning of ‘900. Then it evolved in imperialism (see Lenin definition): monopolies, capitals exports, prevailing of financial sector over production, world fights for market and military influence spheres.

    Second, in US we can see imperial free-market capitalism evolving in imperial state-capitalism.

    Third, when crisis will worsen, protectionist measures will be mandatory, and fascist forms will consolidate.

    Fourth, when crisis will be systemic all over the world, imperial blocks will clash in big wars. Only alternative is a revolution to evolve imperialism in communism.

    US workers are failing to organize with other international revolutionary communist groups, because trapped in free-market and nationalistic ideologies, so the fascist evolution is a serious risk.

  • JJ

    Paul Francis
    October 11th, 2010 at 4:57 am
    Is it going to be that difficult to go back and show that the mortgagor was not paying their mortgage.. and therefore the mortgagee had every right to foreclose on the property?
    Not if the mortgagee can’t prove he owns the property he’s trying to kick you out of!!

  • JJ

    I read an article that suggested the real reason for stopping foreclosures in 50 states now is that if the ‘auditing men’ come in and see the real books, not the inflated ones, they will discover the top banks are actually ‘insolvent’ in that they have more liabilities than assets and since there are laws against operating under those conditions….TPTB will close those doors for good..

    So, how to stop the ‘real’ books being examined??

  • JJ

    Kernel Klink
    October 12th, 2010 at 7:40 am

    I agree–I think this was part of ‘the plan’ from day one years ago—just part of taking down the ole US of A by destroying its economy, what little that’s left…and who won??
    Those that set the system up for failure and followed through with a bet that the system would fail.

  • JJ

    Here we go!!!

    Evicted Family Breaks Into Foreclosed Home

    9 foster/natural children?? $880,000 house??


  • William

    Let’s see…BofA has halted ALL foreclosures in all 50 states, no one is sure who owns the titles, the utility company isn’t gonna shut off the power and water as long as the bills are paid, and the county isn’t gonna repo a house as long as the property taxes are paid? Soooo, Mr Banker, HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!!!!!!!
    Do I care if the stupid bank collapses? NO!

  • Progressive Ed

    Check out this short video from Yves Smith of Naked Capitalism for the nuts and bolts of the scandal:

  • JJ

    Lawyer: Finance industry hired hair stylists, Walmart workers to approve foreclosures

    Talk about cutting corners!!

  • jayson

    All low interest rates are applicable only to above water houses. Those who are above water are rich and will not foreclose yet banks will reduce the rate for rich people. Those who are below water are poor and bank will not allow to refinance to reduce their rate and they will continue to foreclose. Anyway, who give a sh..t about poor people. Banks is for rich people to become rich. Enjoy the ride if you are rich. Whine if you are poor. God Bless America.

  • Russell Good

    Capitalism and Communism. The end game is the same
    Enantiodromia – the process by which something is transformed into or revealed as the same as its opposite

  • orsobubu

    OK Russell, but I suggest you to take a further step from Eraclitus to Engels and dialectical materialism

  • Yes, this is a complete and utter mess. And why shouldn’t it be? We have allowed a debt-based, fiat money system that creates loans ex nihilo without the “lender” offering ANYTHING in consideration, to rule our lives, our country, and the whole world. Who are these people who have turned us into serfs?

    We need a stand-alone money, backed by gold and silver, with banks acting simply as warehouses and clearing houses for check transactions, with loans made ONLY from saved capital at interest rates not determined by a central bank.

    “Let Justice prevail, though the Heavens fall!”

    Allow honest money, not this Ponzi-scheme concocted by shysters.

    • Zoe Simmons

      and they made money all along – by getting the note they took the asset you with your signature and promise to pay – lenders then took it too a bond market and fed res gave them a bond 10x the amount of my note – the lender never had any skin in the game the money to lend came from the wholesaler aggregator / who wanted the notes sold to their trusts .. where did the money for the loan note come from – from the trusts who were induced into purchasing certificates. –

  • Your said:
    Paul Francis
    October 11th, 2010 at 4:57 am

    Is it going to be that difficult to go back and show that the mortgagor was not paying their mortgage.. and therefore the mortgagee had every right to foreclose on the property?
    Well Paul, you are correct that the mortgagee has every right to foreclose on properties which are not paid for – – But the real question is JUST WHO IS THE MORTGAGEE? That is the question presented by FORECLSOUREGATE. Who is he and what is his proof that he the “mortgagee” or bought the mortgage from the mortgagee. That is the crux of the problem here. They can’t prove it because the securitization industry has the whole system so screwed up that nobody can figure out who owns what and who has the right to foreclose. If you have an answer – let me know about please.

    • Zoe Simmons

      and what if the insurance company paid out on your note five or six times – they are then the only ones to collect if they can sue and the loan is no longer secured to the deed – they did this to themselves they got paid over and over and they still want to take peoples homes – i ve been here over 20 years and I am still fighting –

  • Scott

    I have a proposal that could solve this whole mess and it is so simple that it just can’t work. But for the life of me, I can not see how it would not work.
    So here goes…
    There is enough blame to pass around for every one. The banks are at fault for bad book keeping. MERS, the Trust Account recording problems and the Rob-Signing issues. Not to mention that from an ethical stand point the banks had no right to loan money to people they new could never afford the payments in the first place. The people that applied for the loans had no business applying for a loan that they could not afford, etc etc etc. I could go on and on listing the errors and outright fraud perpetrate on both sides of this issue.
    The real problem, as I see it, is that this mess will destroy not only the guilty but the innocent too. It has the potential of taking down our entire economy, so everyone and I MEAN EVERY MAN WOMAN AND CHILD has skin in this game, whether they want to admit it or not.
    My proposal is so simple I can sum it up in one simple word – “AMESTY”! Amnesty for the banks, amnesty for the home owner and amnesty for everyone.
    It goes like this: Lets give the home owner the option to give the house back to the bank, even if the bank no longer legally owns it. If the home owner chooses this option, his credit record will not be affected in any way. The bank gets the house and the owner is free to purchase another house, at a much more affordable price.
    I know a lot of people will yell foul and demand that some one pay a price for this fraud, but if you go down that road, we may be looking at the end of our economy as we know it. Every body will lose.
    With this solution the home owner that surrenders his house will be free to buy another one, which most will do, (you have to have some place to live). This will immediately stimulate the housing market and help to stabilize home prices.
    The banks will get the house with no risk of future law suits. And since they have already written down the value of the mortgage thanks to TARP, they will immediately put the house on the market to evade any additional loses that would occur. The home owners who forfeited their houses will be free to buy them back from the banks, which would put an end to the glut of foreclosed houses on the markets and increase the value of YOUR house.
    Is this just too simple to work? What am I missing?
    For the people that say that the same thing will happen all over again, I say all we have to do it to change the laws that allowed it to happen in the first place. Re-regulate the market. Reinstate the laws that worked so well for the past 80 years, (the Glass Steagall Act for starters).

  • Milton Babb

    As President of these United States; I hereby cancel all mortgage claims in favor of the home owner forever. the last home resident is declared the legitimate owner free and clear and are not to be harassed.
    All banks are hereby closed, the GOV will operate banks for the next five years.
    All foreign debts are referred to the Federal Reserve Banking system.

    The Gold Bullion Center in London is declared a bomb target of opportunity by any Flag in the world.

    signed Milton Babb, President of the USA

  • It’s TIME to REPLACE the US ‘Dollar’!

    Let the promoters of the phony, monopoly monetary system go BACK to the HELL they slimed up out of!

  • jennyburger

    @ Scott…Funny you should actually say that out loud! I, too, have been thinking of a similar “solution”…yet I give it no credence as I’m sure it’s a dud! However, now that yours is aloud…I’ll go ahead and give you my brainy idea!

    We take “do-overs” all the time. For instance, golfers take mulligans! If your computer goes crazy, you can always set it to an earlier time…in essence, it’s a do-over! This is what got me thinking…WHAT IF…we took a mulligan in America’s financial/banking/mortgage crisis? Let’s just start over. Pick a day, back when we were doing well in our economy. EVERYTHING FROM BANK ACCOUNTS TO STOCKS WOULD REVERT BACK TO THAT SPECIFIC DATE AND TIME! If you had $50k in the bank…congrats (unless you had more) you have it again! Didn’t have that much? sorry! But, we all go from there and do-over! Crazy idea? Probably wouldn’t be so crazy if it wasn’t for the banking elite, who are the evils behind the wheels of this mess!

  • c. pages

    And the really sweet thing about this is that it doesn’t just throw a massive spanner in the works and cause trauma for all sorts of innocent victims in the good old USofA – it does major damage all over the world. So once again – thanks to the US financiers for not knowing how to be honest money merchants. They still carry on getting their pay checks AND their bonuses. Great.

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