We can all remember Dustin Zacks and all of his attacks in the last election regarding Waterman and her foreclosures. It has heavily come to light, as we all knew then but not to the same degree as we do now, all the fraud that was committed by banks in the mortgage loan business. People were victims of the corrupt banking system.
Now Obama has a new scheme to help out the banks, and foreclosures are predicted to rise again because of this latest plan.
"State and federal governments have condoned forgery, perjury and fraud in what’s been called the “robo-signing” foreclosure debacle. Last week, the five biggest banks in America signed on to a $26 billion deal that, basically, lets them off with a slap on the wrist for fraudulently foreclosing on homes in the last few years. I am not going to go on and on about how unfair and unjust this deal was or how the rule of law has been thrown down the stairs. I am going to focus on the fallout of this morally corrupt deal."Obama says that this is good for struggling homeowners.
Read more at USAWatchdog that disputes Obama's claim. If true, our city will be affected in a big way. The commission will either have to special assess or worse; it will have to reduce spending to a degree that is unimaginable and Mr. Zacks will have more business than he can handle as mortgage defaults are projected nationally to rise over 10 million over the next decade.
2 comments:
Is it curious that almost NO... NONE.. ZIPPO ... banks, appraisers, real estate brokers, mortgage brokers or any others in the regulatory agencies that helped to cause the bubble or the bursting of same have been criminally charged or gone to jail when $$$$TRILLIONS of our collective retirements and equity disappeared?
How about fraudulent buyers? Those who fraudulently got appraisals and loans on houses only to walk away as soon as they closed?
We hear of only a disparate few.
I don't think we have capacity in jails to handle them all.
c
What do you mean by criminal foreclosure? Do you mean these folks had not signed a note, had paid off their note and the bank took their house?
Or do you mean, these people, for personal reasons (i.e. loss of job, divorce), for business reason (i.e. investment property, second home, house now worth less than they owe) stopped paying their mortgage and many months, if not years later, a court entered a foreclosure order (in Florida the foreclosure process is judicial, the bank can no simply take your house) and the collateral (i.e. the house) for the note was returned to the bank?
I don't see how its criminal for the banks to seek foreclosure orders from the courts when people stop paying the note on their home. Are you instead referencing problems with the signing of affidavits, i.e. robo signing, or problems with the securitization of loans, i.e. home loans have been repackaged as investments such that some people challenge who actually owns the loans?
While there may be problems with the foreclosure process, there have been very few instances that someone has lost a home to foreclosure when they were not months, if not years, behind on their mortgage payment.
Further, there is no requirement that a bank has to foreclose on the home, they can sue on the note, and seek collection via judgment. What most people prefer is rather to return the home and avoid the judgment.
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