As many as 9 million U.S. mortgages in the foreclosure pipeline or already through the process may face legal challenges because of questions about the validity of documents, according to Morgan Stanley.
It is only fitting that America, now on the verge of being a fully-blown communist country, is also abrogating property rights, courtesy of the much discussed foreclosure scandal. Dylan Ratigan provides a concise explanation of just how our bankers..
The real issue is ownership of these loans and who has the right to foreclose. By the way, despite various comments from the Obama administration, foreclosures are governed by state law. There is no real federal jurisdiction.
If the counterfeit is big enough, the whole system collapses, because you can't tell what's real from what's counterfeit and so confidence collapses.
Barry Ritholtz: There is simply no reason we should tolerate unlawful property seizure merely when it is done by banks. They are not the State, not the King, and not above the law.
Japan struggled for 20 years with "zombie banks"—so called because their debts, if properly recognized, made them insolvent. Here in America, we have millions of zombie homeowners. Why is this any better?
It is hard to imagine a time in U.S. history when housing was actually perceived as cheap for an entire generation. Yet this is the exact experience that occurred from 1915 to 1945. Home values were cheap in relative inflation adjusted terms.
America is supposedly governed by the rule of law. Our most treasured asset is not gold, it is our Constitution. Article 14 says: No State shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States
A U.S.-wide foreclosure moratorium would be "catastrophic" and could unjustly impose losses on investors in the housing market, a major securities lobbying group said Monday.
Jim and others suggest that the problem is far deeper and more profound. Specifically, they suggest that the ownership records on millions of houses are now gone for good. Which means that no one knows (or can prove) who really owns them.
I should have expected this, Team Obama is so predictably bank friendly that it was inconceivable that the Administration would ever decide against them on anything other than the occasional sop to maintain plausible deniability.
Mike Konczal of RortyBomb puts together a spectacular series of flow charts that explain in the simplest of terms how the bank foreclosure process went off of the rails, in Foreclosure Fraud For Dummies.
In the meantime, here is a soon to be viral, and all too real, parody of foreclosure gate. At this point the guilty parties are irrelevant. All that matters is that America's terminal collapse into a banana republic is now obvious for all to see.
There is every reason to believe that the people of this nation will come to the conclusion that the bedrock of society - private property ownership - has been intentionally destroyed by a band of brigands with the explicit cooperation and permission
Foreclosuregate is one part of a far greater problem
Has anyone considered that if we no longer have a rule of law and we no longer have due process that there are 330,000,000 Americans who just became empowered, under the very standards put forward by The Journal's Editorial Board, The Banks...
There's every possibility that Brunner managed to stop an enormous **** upon the public - that is, an attempt to force judicial foreclosure states to accept non-judicial process! (These psychopaths may try to override the veto in the lame duck sessio
Consumer advocates and lawyers warned federal officials in recent years that the U.S. foreclosure system was designed to seize people's homes as fast as possible, often without regard to the rights of homeowners.
More people realize that the fake title transfer aspect of foreclosure fraud is just the tip of the iceberg which runs, via MERS conduits all the way to the core of the securitization system, and thus $10 trillion in first level debt (and who knows..
If we don't get on the ass of the politicians, prosecutors and judges now you can bet the banksters will try to find some way through the legislature to make this all retroactively legal by bribing them with campaign "contributions", as they have man
Excerpt from OP: the entire intent of these loans was not to be a mortgage at all. It was, I allege, more akin to an asset-stripping scheme where the borrower would be effectively forced to come back to the lender after a couple of years when the tea
This country cannot stand as a democracy if there is one set of law for the banks, corps, elites and another set of law for the rest of us. Perjury and fraud on the court is very serious matter. It is not a mere paperwork problem.
State attorneys general led by Iowa’s Tom Miller are in talks that may lead to the announcement of a coordinated probe as soon as Oct. 12, said the person, who declined to be identified because a final agreement hasn’t been reached.
4closurefraud is reporting that The Senate session is still formally open, and if so, our President may have just lied - directly - to The American People.
Janet Tavakoli: This is the biggest fraud in the history of the capital markets. And it’s not something that happened last week. It happened when these loans were originated, in some cases years ago.
1:30 The next three to six months is when things are going to get out of control; banks servicing departments don't have the capacity to own and operate the real estate. Dodd-Frank legislation may be used to restructure banks.
Both banks are responding to political pressure on the matter. Yesterday, President Barack Obama vetoed a bill that would make foreclosure proceedings easier for banks.
“This crisis takes a situation that’s already bad and kind of cements it into place,” said Joshua Shapiro, chief United States economist for MFR, an economic consulting firm.
Sure enough, Diana Olick has just reported that BofA has just expanded its foreclosure halt from the 23 judicial states, to all 50 states. And so, the pendulum swings from populist anger to adulation. The only question is when will Tarp 2 be enacted.
Finally, the last and most important why: Why isn't the government dealing with it now? Simply because it could reveal systematic criminal and civil fraud at the highest levels of America's banks and in its political corridors.