Article Image
IPFS News Link • Housing

Foreclosure-Gate: To The States And The People - Stop The Madness

You have the power. To The States: During The Depression, States put "hard stop" foreclosure moratoriums on banks and other institutions that were attempting the same sort of thing that is being done now. Florida in fact still has a law on the books that permits the bondholders to petition the court to set up a creditors committee, redirecting all payments through the Court Clerk until issues of standing are resolved. This was put in place in the aftermath of the famous "Swampland" fiascos in this state. Since land title issues are issues of State Law, the States have the power to put a stop to this crap. They have the power to declare that judicial or not, foreclosures without hard proof of standing and conveyance may not proceed. Real property - the family home - is the bedrock of American Society. While it is true that most of the people being foreclosed upon and evicted did not pay, what is also true and now documented by statements made under oath is that The Banks intentionally loaned people money they knew they could not pay back. This, under long-standing precedent both in common law and in fact recognized in the UCC, makes the debt avoidable. This is not about free houses. It is about the rule of law. Our federal government has studiously refused to act as required by that law when it comes to safety, soundness and prudence in lending matters by our nationally-chartered banks. But the matter of land titles and security interests in them is a matter of state law.