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Monday, October 18, 2010

Free Mortgages Available? If the Banks Don't Fix The Mess, then.....

Property marketImage by alancleaver_2000 via Flickr
Financial institutions started to treat
the dream of Home Ownership like a game,
placing millions out of Americans out
of their homes.
On writing this post, we are channeling former homeowners or mortgage holders whom have not been as fortunate, as a neighbor or family member, within their local community. The former homeowner we will discuss is one that has been though two to three years’ worth of a form of "hell" on Earth.

These individuals were laid off from employment and had a mortgage rate risen to an un-affordable amount.  Today, they are either on the street, in a car, living in a shelter or maybe living with a family member.

Who Are These Former Homeowners, you say?

Many of these former homeowners are 99ers (jobless individuals who have exhausted between 73-99 weeks of supplemental unemployment payments) whom, are no longer being assisted by the Federal Government.

On September 30, S. 3706 "The Americans Want to Work Act" sponsored by Senator Debbie Stabenow (D-MI), was a last attempt on an up or down vote on the bill -before the Congressional Recess Period- to provide some type of income, back to these jobless Americans. The bill was sent back to the Senate Finance Committee, unsure if it would ever make it back on the floor for a vote again.

Senator George LeMieux (R-FL) who is not running for re-election single-handedly decided that former hard working Americans - many of whom were also homeowners - could not receive the 20 weeks of additional benefits and a $2000 tax credit for employers to stimulate hiring; because of the “harm” the payments would cause to future generations, on the nations' debt.

LeMieux's Actions; Along with the Banks are Beginning to Come From the Dark, Into the Light.

Ironically, it took a lawyer from Senator LeMieux's home state of Florida, Peter Tickin and his Associates, to expose what could turn out to be the biggest cause of mortgage fraud to face any generation, in America.

First, the large financial mortgage lending institutions of Bank of AmericaChase-ManhattanGoldman Sachs via Litton Loans and Ally (former GMAC) Monday October 11, announced that they would suspend foreclosure sales in a number of states. Bank of America then announced on Tuesday, October 12, that the bank would suspend their foreclosures in all 50 states. 

Basically, the issues are complex on why the banks would decide to take these actions. It would be safe to assume that with over 100,000 foreclosure actions taking place, to date this year, the financial institutions did not decide to take these never seen before actions out of the kindness of their hearts. Especially considering how many unemployed job seekers across the nation were foreclosed upon, with no-where else to go.

Where the Foreclosure-Gate of 2010, started. The Abridged Version.

A summary of the crisis began, when the banks decided making possibly illegal financial profits, where more important than keeping Americans' in their homes. Remember a term called Mortgage Backed Securities (MBS)? It is rearing its' ugly head again and this time, personalities like Sarah Palin probably will want to stand far away from this analogy.

Financial institutions far and wide, desired to get as many mortgages securitized as possible, during the "Housing Boom", now big fat bust of 2003-2007. To do this, those same banks took shortcuts with the paperwork necessary for the Mortgage Backed Securities.

Why? Well this is where commissions (money) got involved because everyone in the chain of this securitization process got paid, when the MBS was sliced and diced up.

So, to get this done, the banks needed to speed up the processes, too of course -met and exceed the demand. Financial institutions decided to use the technology of the computer age to digitize the mortgage notes, with the help of MERS. Within these actions, the banks did not physically endorse the notes, as required by various state and Federal laws. 

Here came "cover-up" time because why keep Americans, who through no fault of their own, found themselves unemployed or underemployed and hoped to work out a reasonable solution to pay their mortgage, in their homes? Especially since, the banks were going to be paid by the MBS the entire "housing boom" value amount, if they actually got the homeowner, out of their home and on to the street.

Foreclosures started to appear like flies in the summer on food left outside unattended -everywhere. Property values start to fall for the homeowners still lucky enough to keep paying the banks -between 10-50 percent of the former 2005 value- depending on the community and State. 

Some jobless Americans started fighting to stay in their homes and begged attorneys across the nation, to look into their individual property cases.  Next, holes as big as the moon craters, started to appear within the financial institutions paperwork. 

Slowly it became evident and relevant that financial institutions bigger law firms handling the foreclosures for the banks, started engaging in the illegal activities document fabrication and signature forgery, in order to cover up the mistakes. This is where the "robo-signers" were brought in to "cover up" the mess, so they thought....

Where could this twisted road, lead too?  

Disclaimer- there is more to this story on another blog and feel free to take a look, it is a great read.

Well, a large number of foreclosed properties could have been foreclosed legally. Many more unemployed job seekers and the underemployed who were, evicted might still have a right to their old houses. 

The new buyers might not actually own the house; they assumed was bought "free and clear" from the banks. Others' that have continued to pay on their homes, on-time every month, might not have been paying the right financial institution at all. 

Worst, they might even have a correct property title "free and clear" and someone else, could own it. The mortgage note, broken up more times than a mirror drop upon the cement, could be paid. 

Yes, “paid-in-full” completely since the original note is in serious question on who is the proper entity, which holds the note, itself.

The banks -similar to Mr. Scooge from "A Christmas Carol"- the banks placed millions of Americans' onto the streets; draining billions of much needed tax dollars from state, country, local communities and school districts, could be on the hook for trillions of dollars in the form of millions of lawsuits and legal challenges.

So unemployed and unemployed job seekers, are you ready for your free and clear mortgage, now?
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