Click Through to View
>>> well, more now on the housi housing crisis in this country. the federal reserve is proposing another kick in the pants for american homeowners. they’re looking to do away with part of a 42-year-old law that allows homeowners facing foreclosure to get out of bad loans and refinance them,nge, homeowners would have to pay off the entire principle before that process could begin even if the loan can’t be proven as valid. as “the new york times” puts it — this just a latest blow to struggling americans and would you believe our judicial system– it was theer etically based on innocent until proven guilty, the burden of proof being on the one who would jail you or take your home. well, now the government the flipping that. helping banks pull off foreclosure by presenting a transparent paper trail. i asked mike ole nick about the level of difficulty facing homeowners who are trying to get the documents they’ve need.
>> we’ve seen thousands of docket entries to say it was a typo. it was that they filed for foreclosure or were on banks ti name. we’ve seen enter tris were we’ve seen, we’d like to be replaced. one judge summed it up best when they wrote back, this is not a typo.
>> and if you were to look at the other part of the legal system, murder trials, violent crime, rape trials, and the ease with which an accused murdererist can ge t away with a crime that is clearly connected to them based on a technical failure of the judiciary, compare that to the size of the technical failure op the banks part relative to people they are throwing out of their houses.
>> banks would be finished. they would even be finished if treated by the same standards as any other litigant in a regular civil case, which these are supposed to be. the only way they’re able to make this happen is because we’ve adopted basically completely different rules. we haven’t officially adopted them. they’re just being paid attention to. you’ve heard about florida’s infamous rocket docket where every presumption is held against the borrower, which is exactly backwards. absolutely. it goes back to the earliest days of the found of our country where they said, we’re not going to do this, where they set down many standards and for whatever reason, we decided to let this in our court system.
>> is it the whole point of this system that the banks use the retirement funds of everybody in america, the teachers, judges, cops, as the blackmail leverage to get the taxpayer to give them trillions of dollars and basically be able to take that money out and tell everybody to screw off?
>> absolutely. it’s a back door bailout. if we look at the likelihood of modification, a bank negotiating in good faith, the bigger a bank, the less likely the bank is to grant a permanent modification.
>> what is a little guy to do? you get to this point and you’re starting to describe a centrally controlled government bank-run country where they decide who gets to live where and who does what based on who’s paying out of our politicians. what do we do about it?
>> dig in and try to work.
>> work to find the documents. hustle for the documents. z zwl.
>> yeah, and also try to support people who are actively trying to work on this. a small group in florida really are the ones that have blasted this out to the whole country. people thought we were crazy six months ago. we were looking at document after document after document, but we see clearly forged signatures. we saw people being run over in rocket docket– absolutely. wasn’t uncommon to see you know, the retirees of florida who were taken by subprime thieves, some of them didn’t even know they were taking out mortgages, hobble out into homelessness on a rocker after a judge saying, good-bye. who were supposed to be hearings, where the judge would say, have you paid and the judge never, i never once saw a judge, even when lawyers were there, say, okay, bank, will you swear to me that you lent them this money. they can’t. they didn’t. the people are investors who would prefer, strongly prefer, to work with those borrows because they want to mitigate their losses.
>> something worth checking out. we thank him for his time to continue our exploration of the ongoing housing issues.