Comments on: Internal Documents Show Fannie Mae Believed Principal Reduction Would Save Taxpayers Money https://4closurefraud.org/2012/05/01/internal-documents-show-fannie-mae-believed-principal-reduction-would-save-taxpayers-money/ - Fighting Foreclosure Fraud BY SHARING THE KNOWLEDGE Tue, 01 May 2012 21:24:22 +0000 hourly 1 https://wordpress.org/?v=7.0.3 By: readdocs https://4closurefraud.org/2012/05/01/internal-documents-show-fannie-mae-believed-principal-reduction-would-save-taxpayers-money/#comment-373060 Tue, 01 May 2012 21:24:22 +0000 https://4closurefraud.org/?p=46455#comment-373060 There is lots of cya’ing going on. The very perps who devised, and pushed this scandal, going back before
the savings and loan crimefest are now scrambling to cover their asses because it’s all going to come
back and bite them.

]]> By: talktotennessee https://4closurefraud.org/2012/05/01/internal-documents-show-fannie-mae-believed-principal-reduction-would-save-taxpayers-money/#comment-373034 Tue, 01 May 2012 18:49:29 +0000 https://4closurefraud.org/?p=46455#comment-373034 This was such common sense that to suppress it was pure ignorance. Reading it now is no surprise. Do lenders resist because, having no money in the process, stopping foreclosure decreases their fee intake? Do the attorney mills that process the foreclosures resist modification and principal reduction because it stops their income? All of the above? I surmise that investors holding the end credit derivative product present little resistance to principal reduction. WHY? Because what they are holding is essentially paper investments and not houses to them. Investor interest is based on results. How do you equate REO liquidation at 50-60-70% of value a win-win for investors or homeowners? Who benefits from confiscating houses and liquidating them? Destroying tax base, prevention of housing recovery.
You guessed it? FOLLOW THE MONEY!
The people gaining fees from handling are the main resistance to principal reduction or modification.
Investors, Assessors, the general public are ambivalent to principal reduction. There is no huge outcry of moral hazard. This is the mantra of lenders who want to protect their cash cow! Servicing the foreclosure. Real Estate property management companies-agencies, attorneys, lenders, all profit from servicing REOs from foreclosure action to final sale. You have to remove greed from an industry that prefers to see people fail and cares little or nothing about the tax base, homeowners, equity holders or investors.

Appraising houses in livable condition that can’t be replaced for the liquidated sales prices going to newly formed investment corporations who pool purchases of houses in bulk at 25% of original foreclosure trust deed sales price! Do banks write off debt to investors, charge servicing, pocketing profit on liquidation? Where are the whistleblowers who can expose this massive second generation fraud and scam completely gutting the housing market? People just don’t realize YET where housing is headed or the end result!

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