CITIZEN RESEARCHERS: PLEASE HELP WRITE THIS ARTICLE
WHY INVESTORS, HOMEOWNERS AND THE ECONOMY
BENEFIT FROM PRINCIPAL WRITE-DOWNS
Principal write-downs have been condemned as morally hazardous. Failure to include such write-downs may well sink any chances of an economic recovery. To demonstrate the value of write-downs, this research documents the history of homes now on the market due to foreclosure, and the losses to investors from failure to negotiate a meaningful modification.
1. Please limit your research to homes owned by Trusts (look for the words “trustee for” in the name of the plaintiff.)
2. Search official records (or, in Florida, for a much easier search, use findthefraud.com) and search document type “Jud” (Judgments).
3. Find the amount of the judgment.
4. Be sure to include the county, CFN or Book and Page Number for easy verification.
5. The actual street address almost always follows the legal description of the property.
6. Final step: enter the address of the property on Google. If the property is on the market, a listing will almost always appear from the street address.
7. Please send your research to: szymoniak@mac.com for compilation.
8. Please include your name if you would like to be listed in the authors section of this article.
Example:
106 Devonshire Circle
Royal Palm Beach, FL
Sold for $510,772 on April 15, 2005
Final Judgment of Foreclosure Entered for $537,415 on 12/29/2010
Palm Beach County CFN: 20110000161 in favor of Deutsche Bank National Trust Co., Trustee for IMH Asset-Backed Bonds, Series 2005-5
Now Empty and on the Market for $229,900
THANK YOU FOR PARTICIPATING!
~
There must be a way to GET THE MONEY OUT of politics.
It is what controls everything.
We need those of us that are smart enough to come up with a way to get something voted on in the general public
elections that can build on it.
The people are ready. They know money has become the Master.
We need to get the best minds together to work on this movement.
A write-OFF is applicable in some cases where the entity cannot prove that they own the loan but also so they don’t incur greater wrath of the trust investors.
If they admit fraud and errors in my own loan – the investors will have them admitting securities fraud right on the record. In our case, the trust our mortgage has been placed in has been sued now at least 3 times of this date.
They’ve already slandered our title once – when the servicer caused to have filed a foreclosure (thereafter canceled) when they knew they were not the rightful owner. Thereafter, the trustee sued, then canceled – and they didn’t properly cancel the foreclosure according to state law….but more importantly, they can no longer rely on a non-judicial foreclosure – they will have to file it in court now in accordance with state law. If they wish to proceed – we will fight them – so they are looking at protracted litigation in which we can prove securities fraud in addition to common fraud (e.g. not my income, not my assets and not my signature on documents).
you have to pay tax on the principal that is written down.
then, a new loan is created (a second loan).
to me, this is not the solution.
the solution is full restitution to the swindled homeowners.
restitution is not taxable.
it should include money lost that was put into the home. the home should be returned if that is the wish of the
conned homeowner.
When a home owner can’t prove they have paid off their home and the bank can’t prove they are owed any money because they have lost or destroyed the original documents, presents a stale mate situation in the courts. This is where a national formula is needed just like child support to determine if the home owner could afford to stay at any reasonable payment amount. The formula should determine if cash for keys or a cram down would solve this problem based on the home owners ability to pay. We do cram downs every day with Chapter 13 Bankruptcy and short sales and the only place it can’t be used is where it is needed most. ?????? Why
Why could Obama not get cram downs passed to solve this problem? Simple, just look at the Republicans, Tea Party and Democrates that the wealthy, libertarian Koch brothers donate money to and you will see who is really controling all three parties and explains why we can’t move forward. We voted them in, we must accept the blame and me must vote them out, as it is our fault. The president can only work with the people we give him to work with.
“We do cram downs every day with Chapter 13 Bankruptcy and short sales and the only place it can’t be used is where it is needed most. ?????? Why ”
You’re correct. This has been proposed two or three times in legislation and each time it unleashed an unbelievable bank lobbying effort.
It will never pass as long as the banksters own our legislature.
The global economy continues to deteriorate. It is time to stop thinking of principal write-downs as “moral hazard” and start thinking of them as a guarantee program to stabilize the economy, in the same way the FDIC curbs runs-on-the-bank. There has been a mass panic in the United States and housing markets will never stabilize without a program to prevent the type of mass psychology that dominates today’s housing market. Panics like we are experiencing make markets susceptible to fraud, profiteers, wild swings, and finally mass exodus. The largest investment the average citizen will ever make should have some provision for the safety of the homeowner’s equity. This is a disaster of the magnitude of the Great Depression. An FDIC for mortgage equity needs to be considered the same as savings in a bank.
These so called write downs are nothing, because the servcer will have either have to track the real creditor down , or make up the difference in the original contracted payment in a writedown. Seeing that most have no skin invested in this game, the last thing they want is to be left holding the bag. So, foreclosure is the obvious path
to take where the borrower is left holding the bag and not the servicer.
Principal write downs: Not only is it the right thing to do, it is financially prudent.
Does it make sense to pay fees for acquisition and foreclosure, pay to winterize or secure a house, pay a Realtor for a BPO or appraiser for an appraisal, a Realtor to market and sell the house and a Real Estate commission on the sale plus closing costs? Estimate the cost of acquisition, eviction, evaluation, repairs, marketing, commissions. All of these fees and charges extracted from the foreclosure ‘price’ and what do you have? Maybe 30-50% or more below original value from foreclosure to recovery. Reality is in some areas the house price is discounted 50% for a cash buyer, even without total acquisition costs exacted. Now again, does it make sense to discount the property 30-50% and refuse to discount principal to market value so a homeowner can stay in his or her home? Elderly people who let their kids refinance and collect the equity, duped into an ARM on a fixed income. Is it fair to help people like that?
It is a punitive action to rip people out of homes just to resell them at a loss yet it is done in almost 100% of foreclosure cases! Servicers are making more money on the default than in servicing. There is no financial or moral motivation to modify or lower principal.
But wait. . . .
Why would investors who own these notes want to lose money on their investment? These investors own paper, not homes. They have no control because banks are in the driver’s seat retaining servicing rights. The servicer is making money on the foreclosure, the attorney mill foreclosing is making fees, the Realtor, appraiser, clean up crew, etc. all making money on a default and don’t forget MERS, they are making money too! None of these people have any skin in the game to help a homeowner. These people are paid if the property forecloses. Not only this but how often are investor trusts charged back for expenses incurred by the loan servicer?
What motivation is there to help a homeowner modify, much less write down principal? Once more the banks are skimming the cream from all parties and getting by with it. They have no motivation to modify your loan, in fact they will find ways NOT to do so.
Investors, it is time to take back servicing rights on YOUR investments!
talktotennnessee..Principle write downs WLL NOT WORK in this economy….If you lose your job…they will steal your home in 3 months..WITH AN ALL NEW MORTGAGE AND NOTE..It will be fraudclosure with ease for these pretender lenders whonever lent us any money…. An attorney gave me a good piece of advice…WALL STREETS DEBT IS UNSUSTAINABLE….DO NOT SIGN OR AGREE TO ANYTHING…THESE FIRMS ARE BANKRUPT…..INSOLVENT ON PAPER….People who are continuing to pay the mortgage are unknowingly aiding and abetting their crimes….STOP PAYING AND NEGOTIATING WITH THESE FINANCIAL TERRORISTS WHO ONLY WANT TO SEE US FAIL….AND LOSE EVERYTHING…THIS IS A HITLER PLAN…THEY ROBBED US AND THEY HAVE TRILLIONS HIDDEN AWAY IN OVERSEAS BANKSTER ACCOUNTS AND INVESTED IN OTHER COUNTRIES, NOT OUR OWN….THEY ONLY WANT TO BANKRUPT AMERICA…TO STEAL ALL OF OUR HOMES AND BUSINESSES ILLEGALLY AND THEREFORE OUR NATIONAL SOVEREIGNTY…..!
WHAT GOOD IS A PRINCIPLE WRITE DOWN IF YOU LOSE YOUR JOB? THIS ECONOMY IS GETTING WORSE….NO ONE IS SAFE….! DON’T SIGN OR AGREE TO ANYTHING AND JUST STOP PAYING FOR THE LOVE OF GOD……!!!!!
I vent…My daughter’s foreclosure does not say ‘ trustee for ‘ next to the plaintiff….does yours? It seems everything that is brought up does not pertain to her papers/documents………and as far as the principal write down goes……just what are they trying to prove…no one is promised their job will be there tomorrow….so with a job they get a principal write down…a complete new mortgage…and like I vent said…months down the road you are out of work….things are expected to be worse in 2012…..so consider that before jumping into anything…I would not agree to sign anything…fight the foreclosure….work on proving the fraud….that you must prove in court…..if others feel they want to go for principal write down…go for it. Just remember…the bank did not lend any money to begin with…they have nothing to lose.
Marilyn, there is no trustee named in the fraudclosure complaint on the house…the attorney for the Plaintiff who is PHH mortgage is being repped by Fannie Maes attorney network..Fisher and Shapiro….Fannie Mae is obviously hiding behind the servicers to steal homes they do not own….With the commercial property there was not trustee named until after the fraudclosure was filed and they bank “sold” the loan off to another servicer, Bayview Loan Servicing…who have since then filed $ assignments after the fraudclosure was filed and reconveyed the loan back to First Midwest Bank…their obvious attempt at trying to create a new chain of title is a failure…Could their crimes be any more bold..?
I meant to say they filed 4 assignments….after the fraudclosure lis pens…they are criminals…and they are not trying to hide it.
I vent…Can they do all that after they filed the foreclosure? Course…they know the courts shut a blind eye to whatever……disgusting……
Exactly Marilyn!…it is like they are screaming to be stopped but no one does because of too much corruption….That is why I blame the POLITICIANS…AND THE U.S. GOVERNMENT for the ongoing robbery of the American people…it is all being done sneaky, strategically and under the guise of too much debt…and it is not even our debt it is WALL STREETS DEBT and the GSE’s debt…….We need to throw these politicians and these judges out Marilyn….they are sneaking in COMMUNISM…!