Spotting the Bankers’ Latest Propaganda Campaign
Perhaps you’ve heard the line about not wasting a crisis. It means seize the opportunity to make big changes.
Well, the banks are doing just that: they are using their self-created foreclosure crisis to build pressure to dismantle judicial foreclosures. The bankers want it to be much cheaper and easier to take collateral with fraudulent documents. Which it is, in non-judicial foreclosure states.
Before I dissect an example from today’s news, I want to explain why I think the banker campaign to end judicial foreclosures is about easing fraudulent foreclosure, rather than, say, liquidating collateral quickly. It’s simply really– the banks aren’t swiftly liquidating the collateral they’ve already taken title to. The banks are letting the properties rot.
More than that: the banks are slowing foreclosures all on their own. Florida attorney Matt Weidner saw banks voluntarily dismiss some 50 foreclosure cases he defended in 2010. A year later, not a single one has been refiled, even though his clients remain in default. Or consider this anecdote from Michael Olenick of Seeing Through Data: