Stop! Thief! Foreclosure Prevention 101

Neil Garfield LivingLies

Nobody ever thought that returning a lady’s purse to her after a purse snatcher ran away with it was a gift. So why is anyone contesting returning the purse to homeowners who had their lives snatched from them?

The baby steps of the Obama administration are frustrating. Larry Summers, Tim Geithner and those who walk with Wall Street are using ideology and assumptions instead of reality and facts.

First they started with the idea of modifications. That would do it. Just change the terms a little, have the homeowner release rights and defenses to what was a completely fraudulent and deceptive loan transaction (and a violation of securities regulations) and the foreclosure mess would end. No, it doesn’t work that way.

The reality is that these homeowners are being drained every day and displaced from their lives and homes by the consequences of a scheme that depended upon fooling people into signing mortgages under the false assumption that the appraisal had been verified and that the loan product was viable. All sorts of tricks were used to make borrowers think that an underwriting process was under way when in fact, it was only a checklist, they were even doing title checks (using credit reports instead), and the viability of the loan was antithetical to their goals, to wit: to have the loans fail, collect on the insurance and get the house too without ever reporting a loss.

Then it went to modification through interest rate reduction and adding the unpaid monthly payments to the end of the mortgage. Brilliant idea. The experts decided that an interest rate reduction was the equivalent of a principal reduction and that everything would even out over time.

Adding ANYTHING to principal due on the note only put these people further under water and reduced any incentive they had to maintain their payments or the property. Reducing the interest was only the equivalent of principal reduction when you looked at the monthly payments; the homeowner was still buried forever, without hope of recovery, under a mountain of debt based upon a false value associated with the property and a false rating of the loan product.

Adding insult to injury, the Obama administration gave $10 billion to servicing companies to do modifications — not even realizing that servicers have no authority to modify and might not even have the authority to service. Anyone who received such a modification (a) got a temporary modification called a “trial” (b) ended up back in foreclosure anyway (c) was used once again for unworthy unauthorized companies to collect even more illegal fees and (d) was part of a gift to servicers who were getting a house on which they had invested nothing, while the real source of funds was already paid in whole or in part by insurance, credit default swaps or federal bailout.

Now the Obama administration is “encouraging” modifications with reductions in principal of perhaps 30%. But the industry is pushing back because they don’t want to report the loss that would appear on their books now, if a modification occurred, when they could delay reporting the “loss” indefinitely by continuing the foreclosure process. The “loss” is fictitious and the push-back is an illusion. There is no loss from non-performance of these mortgages on the part of lending banks because they never lent any money other than the money of investors who purchased mortgage-backed bonds.

You want to stop the foreclosures. It really is very simple. Stop lying to the American people whether it is intentional or not. Admit that the homes they bought were not worth the amount set forth in the appraisal and not worth what the “lender” (who was no lender) “verified.” Through criminal, civil and/or administrative proceedings, get the facts and change the deals like any other fraud case. Nobody ever thought that returning a lady’s purse to her after a purse snatcher ran away with it was a gift. So why is anyone contesting returning the purse to homeowners who had their lives snatched from them?

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Comments
3 Responses to “Stop! Thief! Foreclosure Prevention 101”
  1. Karma Dorje says:

    So why am I fighting my second foreclosure in 6 years pro se. I got the first one thrown out on standing, but DeutcheBank has come out of the shadows to claim a 2007 securitization. How is this NOT AB– USE OF PROCESS since by their own admission, they orchestrated to 2010 forclosure and LOST. Can someone help me with a motion to Dismiss. blane at blaneland dotcom

  2. rick says:

    “So why is anyone contesting returning the purse to homeowners who had their lives snatched from them.”

    “Anyone” is contesting because of Greed, Power, Wealth, and Stature. All provided by today’s society.
    “Anyone” thought,and well thought out i might add, that they could get away with it. And, sad to say, they are.
    Now this fraud is being noticed in a few “legal circles” and by some “aware” people in the real estate business. The internet….amazing, is it not?
    The word needs to get to the judges nationwide. Especially the areas that have been affected the most, like: CA, FL, NE, AZ.
    It will not be easy because the big banks have the big money to hire the big attorneys to perpetrate the big fraud.
    Now, the question is, which judges are being paid by the banksters? I think we are going to find out.
    “To have loans fail, collect on the insurance, and get the house too, without ever reporting a loss.”
    I can not describe to you the anger a statement like this brings out in me.
    “I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.” – Thomas Jefferson

  3. Storm says:

    Loan modifications are a joke, and should not even be considered by a homeowner. There are too many other methods for positive outcomes for homeowners!

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