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Foreclosure Moratorium – Prolonging the Inevitable

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Foreclosure Moratorium cartoonGuest article by Marc Tow, Real Estate and Bankruptcy Attorney

Four major real estate lenders have recently admitted to possible defects in their loan & foreclosure review procedures. These four have proclaimed a foreclosure moratorium: Bank of America, JP Morgan Chase, Ally Financials’ GMAC Mortgage division and PNC Financial. Others will follow suit. Now politicians are now calling for a nationwide moratorium and the finger pointing has begun. Can the housing market withstand another blow? The news of partial foreclosure moratoriums has already caused the short-sale market to come to a halt. While putting foreclosures on hold in the short term may seem like a good idea, it could lead to additional new and improved versions of recently enacted regulations resulting in what amounts to the lawyers full-employment act.

90 day moratorium – Short term impact.

It may appear that a foreclosure moratorium done for a short period of time could be a good thing. It would slow the process of dumping thousands of homes onto an already flooded market. The time may help firm up and stabilize home prices. It will give the lenders an opportunity to review their loan documentation and foreclosure procedures for compliance and to modify same. It would give lenders time to establish foreclosure procedures that comply with customary regulations and applicable laws. It would also give time for overwhelmed loan servicers to catch up in their loan modification departments so that those who qualify could stay in their homes. However, this interim period may also provide bellowing politicians facing interim elections media time to lace on additional regulations and feed truck loads of hungry lawyers.

180 day (half a year!) moratorium – Intermediate impact.

An extended moratorium may or may not provide extra support to the fragile home market. Additional time could breed uncertainty in home buyers who are waiting for another wave of foreclosures to hit the market with the possible consequence of downward pressure creating a new bottom of pricing. Further, it could just be delaying the inevitable by giving many delinquent homeowners a free ride. It is important to distinguish between borrowers who involuntarily default due to no cause of their own (such as from a loss of employment), versus those who could be classified as predatory borrowers because of their intent to exploit the lenders with malice and premeditation. This would effectively reward these predatory borrowers by transferring the responsibility back to the lender all under the disguise of fairness. You can absolutely be assured that while politicians and lawyers are screaming to transfer wealth from the banks to the defaulting borrowers that the banks will return to the door steps of Washington for another government bail-out. This fiasco will result in tax payers subsidizing the lifestyles of predatory borrowers.

Greater than 180 days – Longer term impact.

-Take cover from the massive fall-out that may result if this moratorium lasts for an extended period of time. The implications are broad including the viability of real estate markets, locally, regionally and nationally.
-The longer it takes to absorb excess inventory, whether directly owned or as shadow inventory, the more likely we are to submit to another round of recessionary forces.
-Investors/Lenders will curtail their desire to invest in real estate related securities because of the inability to perfect their security interest and/or to regain their capital.
-Defaulted borrowers by the millions will stop paying altogether if they see there is no consequence.
-Loans from private capital sources could be greatly reduced or cease to exist all together. Government sponsored entities could replace for-profit enterprises as happened in the automotive industry.
-Massive amounts of regulations may result in lawsuits, lawsuits, lawsuits.

Just imagine waking up one day and lenders refuse to lend because of government regulation, appraisers can’t appraise because of lack of comparables, buyers refuse to buy because they have no jobs or unpredictable income, contractors can’t work because nobody is improving their new home, retailers have no sales because no one is buying furnishings for their new home, title insurers refuse to insure as millions of defaulting borrowers enjoy their residential occupancy for free. This could be the future if we as Americans don’t stand up. The most viable and rational path out of this mess is for the lenders to repair their foreclosure policies and procedures and allow the economic system to repair itself.  Can our government bail us out forever? The resulting actions from all stakeholders will require an effective strategy, pain, and time!

If we don’t solve the foreclosure process ourselves, there will be no solution. I’m not a politician, I’m a lawyer in the trenches. I want us all to win. If we don’t, what will be the new normal?

Visit Marc’s website at http://www.towlawbankruptcy.com for more information.

TELL US WHAT YOU THINK ABOUT THIS MESS… LEAVE A COMMENT BELOW!

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  • Ricardo Fojas

    Nobody wants to be in this mess. One probable remedy is to grant Rent to Own to homeowners (with Option to Buy later on) and if the property is to be sold later, the appreciation be divided between homeowner and lender at a ratio to be studied by the lawmakers. Everybody will be benefited. Thanks. Ric

  • http://www.MovingRealEstate.com Debi S. Mackey

    I think what the banks are doing to people is un real. My father has being working on a loan mod with Bank of America for over 6 months now, he has never been late on a payment but since they added inpound account and took his already high payment to 1000 higher per month and now they call saying he is late and they are going to foreclose if he doesnt bring current. Mind you he has always paid the orginal intrest and princpal and his own taxes and insurance. Now they have reported to the credit b’s that he is late on payments and truely it is just the impounds that they added.

    Also he bought this home put over 160,000 down and then not only has one of the requirements for a loan mod but her has all three. First he had surgery, then was laid off, then my mom died… so please help..

    If any one can help him get this done wheither it be a laywer to sue the Bank for the hassels and harssement they put him thru or the news or Mike Finny to help get the bank to modify his loan and help him save his home that would be awesome…

    I know lot of others are being treated unfair and having to go thru hoops that if the banks knew what they were doing America would NOT be in this mess….

    How can we the people take back outr country??? and quit being controlled by Banks and oil companies???

    If we all pool together we can change our world, one person at a time…

  • http://www.avisionrealty.com Angel

    URGENT NEWS: The problem we face today with all this mess GOING ON: The Fraud and embrassment that we go thru when somebody is caught with there hands on the Cookie Jar..Starting with Congress and Senate Officials…they have there buddys that pay there campaign bills, and get all the information how to scam (A Sector of Business). What do I mean by this well, like the Houseing Industry, the Wall Street Scams, Oil & Gas Industry, Food Stamps, Health Care Industry, Medical Industry, Hospital Industry, and on and on…This people that have connection with High Court People that bail them out know that if they steal $100.00 they will pay only $10.00 back ( I mean in Millions)…and never pend a day in Jail..or they keep the other $90.00 with all the Cars and House’s , business’s they bought.. THEY GET AWAY….Untill we get tough on these CRIMINALS, Like the Mortagers or Bankers, Lawyers, or all the above…It will keep on going…The Effected are the Innocent People and Tax payers of our Country…United States of America..We need to make our Congress and Senate pay for there involvement in any of this scams….And believe me it will STOP..ASAP

    Angel Villanueva
    Concern Citizen

  • Steve Allen

    You seem to be far more worried about the unknown effects of an extended moratorium on the housing market than on the known consequences of allowing loan servicers and mortgage companies to continue tossing millions of Americans out of their homes due to the economic meltdown. Many, like myself, have been unemployed and unable to get any job at all, much less one which would allow me to pay the staggering monthly mortgage payment I now have.

    You call yourself a lawyer “in the trenches” as though you’re in financial distress because of the housing market and the economy. You have no idea what it’s like to be in REAL financial trouble, with no income, being threatened by a mortgage company on a daily basis, with no place to go, not even any way to store your possessions to prevent them from being tossed out on the curb when the Sheriff’s deputies come to evict you.

    The banks received billions in bail-out money supposedly to ensure they would not tighten their credit policies and would keep loans flowing out to people who wanting to buy homes. Instead the banks sat on the bail-out money, tightened credit and have made it impossible for average Americans with average credit to get any type of home loan or equity line of credit.

    There is only one solution to the foreclosure crisis and that’s for the federal government to create incentives for private companies large and small to expand and create the millions of jobs needed to put Americans back to work again and at wages which will allow them to pay a mortgage payment and feed their families.

    The moratorium ~ regardless of whether it’s nationwide or regional, long-term or 90 days ~ is not the central issue. Hopefully even a stereotypical self-obsessed, money-hungry attorney like yourself would have at least enough common sense to understand there is a larger, central issue which holds the real key to ending the foreclosure problem.

  • brent jorgensen

    there is rental with a Bank of America loan on the house next door. the owner said the payments are 30 months deliquent. Its been vacant now for four months. I has been listed for sale on the court house steps 4 times and then at the sale the bank will cancel the proceedings. I submitted a short sale offer on 7-26-10. The worthless realtor decided on his own the offer was to low and did not present it to the owner. My realtor who probably is not much better did not know this until we made another offer on 10-1-10. There is lack of liability in every direction. Since they don’t want to forclose I would like to figure out a way to buy the non-performing paper on this house. Thanks

  • Scott A. Ervin

    I believe that any occupant that is or will be foreclosed upon must prove to authorities that at the time they signed the mortgage loan docs they could actually afford to pay the monthly bills. Provide IRS docs for that year and following year as proof of affordablity. If they can’t then throw them out and blacklist them for 7+ years from new loans of any kind.

    With respect to the house in question hold a live auction at premises and homeowner/occupants only allowed to bid. No lenders, note holders, investors or relatives allowed to bid. Allow County to guarantee clean title in exchange for real property tax payments and a cash closing.

  • Jim Myers

    Once again the banks and mortgage lenders have perverted the “Economies Of Scale” on an unprecedented level. I think it is time for the executives and managers, (in the chain of command of the guilty parties, as well as those responsible for outsourcing this mess), to have any bonuses they have received, or will receive, frozen or rescinded until this mess is cleared up. That will at least lend the appearance that they are serious about “cleaning out the pigsty”. (No disrespect intended toward the pig farmers, or the pigs.)
    Also, now that the banks are showing profits, let them absorb the cost. If they fail, then they can have a taste of what they have wrought on the unemployed in this country. The American people have paid enough for their slough. (Maybe the Fed should buy up the banks, instead of the Government bonds. That is after they have failed. The cost would be easily manageable for an entity that prints money at will.)

  • John Jones

    Hi. I live at 1463 Whitney isles Dr., Windermere, Florida. There is a sale scheduled on October 25th. Bank of America. I am leasing the home. I noticed that the sale has not been cancelled so I would be leery of this so-called “moratorium”. It appears to be business as usual for these foreclosures.

  • http://cooperinvest.com mike cooper

    Property value/appraisal should be determined as replacement cost value based on national and international actuary tables, building codes/standards, labor etc. RCV is always constant with current conditions up-down-sideways. A brick costs x amount, furnishings etc. including labor for all regions of te US. Every state has a state controlled insurance commissioner including a real state department which oversee the mortgage industry as well. States could attract new commerce with incentives albeit taxes, biz, etc. to bring in tax revenue and jobs with stable property values.

  • Robert

    There is really only ONE question pertinent to this issue.
    Have you been making your mortgage payments?
    The rest is just paperwork/politics and/or BS.

  • Chris

    The attorney writing the article appears to have no idea of how to make a point just talks in circles. That is to be understood, after all he is an attorney and they live mostly on talking people in circles so they think they are getting a real service.

    What a bunch of uneducated, irresponsible people have posted here. I can say I have not seen this much ignorance in any one place in years, even surrounding real estate.

    Angel, go back to La Raza. I have not seen that much hate speak on a board in years.
    Steve, you cry like you are the only one that lost a job. Figure it out and man up instead of blaming everyone else.
    Brent, I would suggest you complain to the Realty Board but they do not give a damn about anybody. Contact the bank, it is not easy but can be done.
    Scott, go back to smoking what ever you are smoking, that is one of the more hateful ways to deal with people I have ever read. Read the Constitution and Bill of Rights before you make an ass out yourself like that.
    Jim, you would not know what the term “economy of scale” meant if it bit you on the ass. The Fed is who is largely responsible for this mess, learn a whole lot of history, you really need it.
    Mike, go back to the United Nations and ask them for a bit of advice. We do not live abroad, it is one of the most ignorant, Marxist statements I have read on the board, the way you are suggesting property values are estabished. Once you factor in the mud hut contigent to your equation, it would really help values. Also only a complete idiot does not know the value of bricks very a great deal depending on transportation of the brick, method of making the brick and demand of the brick. Get a clue.

    With that good bye, have a nice day and work really hard at learning some facts before you go shooting off your mouth.

  • Bill Venner

    Debi Mackey, tell your dad to get one of the new short term Reverse Mortgages. That will solve his short term credit problem, eliminate paying another dime to BofA, and when times are better he can refinance out of the reverse mortgage. It may not smell good but it will get him wher he’s going. No credit checks, no payments, and a breather say for a year or two. Maybe less time or maybe even a longer time if he wants.

  • dave

    Moratorium on lenders would be fine just extend all foreclosures out another 12 months. Then main street has its bail out fair is fair Wall street banks got a bail out now give a trickle it back to the lower class. I have no problem with larger banks getting a little pain since they lied about easing of credit and putting money back out there. They put nothing out their they kept it to themselves. If they “the banks” plan to have more liquidity themselves fine, then let them also give a little liquidity to the masses since the credit system they mess with belongs to all of us! The money isnt just there’s and if they insist upon stealing by way of inflation and illegal repossessions then I shall boldly steal it back! Dont ask me how because I might get punished for my action unlike the banksters.LOL PS: thanks bankers for the free money over the last 24 years I love stealing from the banks to give back to the poor!! 50% of what I take goes to those that make less then 10k a year!:)

  • DON

    I cannot believe what im reading here all the people who bought these Home had no business buying a home they cannot afford
    to begin with””””””’ if you do not pay your bills no matter what the cause is they will take action. so do not play the victim here. you dont pay your Electric bill they turn off your power,late a few months on a car loan they will repo it;;; so all you people crying about being in foreclosure have only yourself to blame ,its this victim metality and
    all the damn entitlements people think they are somehow owe by the Feds??”””””’ what the Helll is wrong with you
    This is why our Country is going to hell people like you all and the Dems along with a sorry excuse for US President
    is causing all these problems , so stop your damn crying and whinning and take it like an Adult just move on and let the rest of us STILL Paying our bills on time get on with the fix .Yes need to foreclose on all these free loading ,low life blood sucking leaches living off the rest of us tax payers.
    GET OVER YOUR DAMN VICTIM ,AND SOMEONE OEWS YOU A DAMN THING”””””””””””’

  • http://marctowvictims.com Dan Ringwald

    check this out http://marctowvictims.com

    Marc Tow – Crook and scam

  • al

    If you’re really interested in fixing the problem, make your vote count. Don’t believe the BS that these new candidates won’t know what to do. This is exactly what we want. Someone who doesn’t know how to “work the system”; people who don’t know how to come from a backwater town in Nevada, and become multi-millionaires after being elected. MAKE YOUR VOTE COUNT!

  • Pavel Rombakh

    Most of the mortgage notes have been purchased by the big players like Bank of America, Chase and others at the huge discount after Countrywide, WAMU and over hundred other small and large lenders went under.
    Plus, due to “magic of securitization” most mortgages have been paid off by payments from the duped pension funds, insurance payments,bailouts, you name it…
    Banks make loan modification extremely difficult and ineffective for home owners, willfully cornering people into foreclosure, so they could get almost market price for something they paid pennies on the dollar year or two ago.
    Big guys made billions while creating this mess, now were profiting by stealing houses from people through foreclosure with robo-signers help.

    Many properties are upside down, so there is no any economic sense for people to keep paying for them. Eventually homeowners stop making payments and this is adding another force onto pressing home prices even lower.

    So, why don’t the the government forces the lenders to take market value justified principal reductions of mortgages? It would revitalize the market almost overnight. These loan amounts that are greater then the property values are worthless anyways. Banks are not going to get them, except for some monthly payments for the time being.

  • Al

    It’s very hard to feel sorry for the banks when they do as they please in regard to the legally required paper trail investors have to follow, make up procedures on the fly, and leave all this cluster fun for the lawyers to clean up (money & legal problems).

  • http://www.nevadainvestmenthomes.com Pat Yoest

    The greedy banking system caused this mess in the real estate market. The banks make money on foreclosures and then they have the nerve to go for deficiency judgements when the government makes up for what the bank looses. The banks are not in possession of the note. They were sold to investors in bundles. Unless they have the original note what proof do they have that it was even owed.

  • Nasir

    I suggested lenders take 50 to 60% cut in mortgages(loan balance), lower interest rates and let people live in their homes instead thretening foreclosures. Unless there is some pumishment things will never change. Let mortgagees receive 1099 on forgiven debt and when Uncle Sam collects it the money should revert back to orignal lender, this way they recoup some more money.

  • Moe II

    The US is undergoing a ” economic paradime shift”; it’s been going on since the late 1960′s.The large Corps. are outsourcing jobs so our people can’t earn a decent wage to live here ,even if they can find a job at all.We are all being taxed to death so it’s extreemly hard to “get ahead” and we all SPEND TOO MUCH on BS we don’t need!! There is NO QUICK FIX HERE!!Buying a single family home, the “American Dream”, is not the SMART thing to do anymore..if it ever was…All financially SAVY people should buy a Multi-Family house, live in one unit and rent out the other(s) to the unfinancially savy (sorry); so they will have rental income to help carry the house…it’s nuts to think we can pay for : our kids,our houses,cars,utilities,vacations,church, taxes,food etc. on our working incomes…we all have to accept the Paradime shift and TAKE ACTION!!!…cause ain’t no Knight in shining armor comming to save us!! Good Luck and God Bless to all…United we stand!!!

  • http://www.alternet.org/story/147901 Larry Gass

    I believe the REAL reason for the foreclosure moratorium is because the banks have been committing fraud, and now the cat is out of the bag. The fraud is that when a bank sells your mortgage to another bank, they are required to file in your local county records, an Assignment of Mortgage, and the original promissory note is transferred to the new lender. This transfers legal right to foreclose to the lender who purchased the loan. BUT, the banks have not been recording these assignments, and have not been getting the original promissory note transferred to them. So, if a loan has been sold to another lender, and the borrower stops making their payments, by law, only the lender that has a assignment to them, recorded in the county records, has legal authority to foreclose. To legally foreclose, the lender must produce the original signed promissory note,(not a copy)to prove they have legal right to foreclose. Most lenders do not have the original promissory note in their possession anymore, so they cannot, by law, foreclose. In the past they have successfully gotten around this by presenting the courts with an affidavit, claiming they lost the original promissory note, and the banks have went along with this fraud. ONLY the legal holder of a promissory note has legal grounds to foreclose, NOT the lender who has been assigned “servicing rights”, and NOT the lender who “claims” by affidavit, that he has the original note, but does not really. Note: The assignment of “servicing rights” to a nominee does NOT assign the promissory note, and therefore not the legal right to foreclose.

    An assignment of the original signed mortgage promissory note is proof of the right to foreclose. If you loan has been sold, check with your local county clerk to see if there has been an assignment of mortgage recorded or not. No assignment recorded, no legal right to foreclose. By law, the lender must return to you, your original promissory note when you pay off a loan. If you don’t get your original note back, you did not get your mortgage legally released. This also affects title companies, who are insuring a clear title.

    The courts have been caught with their pants down by allowing lenders to foreclose with an affidavit, instead of the original promissory note. Finally, the judges, to cover their own butts, are no longer allowing this fraudulent practice and are actually enforcing the property laws as they are written.

    This may sound like a technicality, but the property transfer laws are very explicit about the procedures required to show ownership of mortgage notes. ONLY the legal owner and holder of the original signed promissory note has the legal right to foreclose. For more info and recent court cases backing this up, see the website http://www.alternet.org/story/147901 and you will be amazed at the scam we have all been subject to. It has not been a problem in the past because no one challenged the foreclosure requirements, and exposed how the court system has been defrauding borrowers who requested the property foreclosure laws be upheld. Since judges are starting to cover their asses, the banks are in a BIG bind, they can’t legally foreclose.

    So, the REAL reason for the foreclosure moratorium, is not that the government wants to help you out, or the banks are good guys. It is just until they figure a way to cover their fraud, without the general public finding out.

    So, if you are in foreclosure, require the lender to produce the original signed promissory note, and show that it has been assigned to them in the county records. If they cannot do this, then they cannot legally foreclose, because they do not legally own the note they want to foreclose on.

    If they can’t produce the original note, then they cannot foreclose.
    Simple as that.

    Then all you have to do is have your attorney do a “Quiet Title Action” and require all interested parties to prove their equitable interest in the property, such as producing an original promissory note, not an affidavit. If they cannot do that, then your title will be ‘quieted’ and you will own your property free and clear. That is your true bailout! 62 million Americans could get their mortgages forgiven, because of fraud by the foreclosing lender.
    Are you one of them?

    The above was learned during 40 years of real estate investing.

  • jo

    Thanks again President Bush you started all this shit and now in hiding.

  • bubba

    Ever heard of quantitative easing? This and things like moratorium are used to prop up economic data on a regular basis. They don’t want to let the economy go into a freefall so they do things like this. The funny part will be when the mainstream media starts reporting that the foreclosure rates have declined. Kind of like the new jobs created by the census that skewed the employment data earlier this year.

    Do you feel lied to yet? Still have faith in the system?

  • Karen

    The bank owns the house. You have the right to stay in it if you pay. You don’t pay your mortgage you lose the house. Simple. If you pay the mortgage then you get to keep the house. You are not entitled to a modification, you can request one. But in the end if you don’t pay you don’t stay. Why should anybody be bailed out or have their mortgage note reduced. The entitlement has become insane! People should not max themselves out on mortgages, or cars or credit cards or anything else they that do not have a contingency plan to pay for if they lose their job.

  • john Sheridan

    You All Make me sick. I am an investor /contractor who bought multiple properties all with 20 percent down. I then put in another 20 percent in upgrades. Now my properties have depreciated by 40 percent and I am stuck holding the bag. I am tired of people like yourself who are blaming homeowners for the financial collapse. I lost my financial future not because of my greed but because of the bank GREED. THEY were in a hurry to write bad loans. My attitude now is to hell with the banks they Can crash and burn for all I care. It is time for Americans to wake up. The bankers get a free ride while we all suffer does anyone smell REVOLUTION

  • Bonnie

    Absolutely correct, Larry Gass. Read Mortgage Wars. Look up Mortgage Audit. This is going to turn the industry upside down.
    By the way, for struggling homeowners, you can get a mortgage audit for a few hundred dollars.
    I sell real estate REO’s. I am a short sale specialist (retired-short sale is bull), a home owner and an investor.

  • predictable_rsk

    Get a life jo. Bush didn’t start anything. If you want to blame someone, blame Carter. He passed the CRA (Community Reinvestment Act) to put pressure on the banks to lend to more risky and yes, minority borrowers. At the time, banks were “redlining” rejected loan applications because, duh, the people wanting to borrow the money could not qualify to pay it back. So, like a good liberal, Carter didn’t think that was fair. Why should he, it wasn’t his money they were lending. Then along comes Clinton, who strengthened it and expanded it. There is countless testimony from regulators who tried to sound the alarm, but Maxine Water, Barney Frank, Dodd, Kennedy, Boxer, the two chairman of Fannie and countless paper shufflers, spies and snitches who roamed the halls of the capitol, aided the Democrats in blocking any and all attempts by the Republicans to sound the alarm before it blew up in our face. These are the facts, not some partisan opinion regardless of the damn lies on the Huff Post. Here’s a sample, check it out:http://www.huffingtonpost.com/2008/10/19/freddie-mac-paid-gop-cons_n_135995.html?view=screen

  • C.Kaimikaua

    With the exception of Dan Ringwald, most of the contributors might be interested in the lawyer, Marc Tow, the guest writer who wrote this article… and his, in my opinion, microcosm antics that directly reflect what the wall street and banks have done to the masses.

    The readers might especially be interested of this lawyer, Marc Tow, and his past associations with the likes of another fine citizen Mr. Michael Alexander (CNN online’s documentary on him being the ‘Baron of Detroit’), their company EZ Access Funding (which Mr. Tow’s company handled Escrow for), another company called USA Wealth Institute, all from Newport Beach, CA., and their interaction with over 80 + investors on monies and properties THEY (Tow, Alexander and their companies) still owe them for!!

    Just google this man, his associates and their company(s) mentioned above. In fact, one might want to ask some people in the suburbs of Cleveland, Ohio, about some issues they’ve had with this California Lawyer and his buddies. Just passing some info to all especially to those who feel that ALL homeowners in or near foreclosure are ‘sub’ human and not worthy of any assistance.

  • http://AmericaNeeds.ImNotLeaving.com Gabrielle

    This is a community of conflicting viewpoints I see. First I’ll say that you can get a FREE mortgage audit and review of your loan at http://AmericaNeeds.ImNotLeaving.com. There is no obligation for this review. AFter they send you the results of their findings, then you decide if you’d like them to work with you and stand up to your lender for you. They even guarantee they will get at least a 10% principal reduction. So it beats anything I’ve seen out there. They are having great successs with MERS loans of BOA, Chase, GMAC, and many others. Everyone whether behind on payments or not can get the review. Even if you already did a loan mod you can still qualify for this principal reduction program.

    I think Larry Gass made an exceptionally easy to follow explanation of the process of challenging your lender to put up or shut up. Well presented Larry and very easy to understand. This is what everybody should do now to make the lender responsible for their actions against your home. Challenge the lender to prove they have the right to foreclose. I think banks need to be responsible for their wrongdoings, whether it was from greed or fear of loss or whatever caused them to do what they did, they need to make right on the way they manipulated and mistreated millions of Americans who financed homes. The banks made a huge amount of money on these loans already, especially in the boom years, and then in selling those loans. They got truly out of hand with their mortgage shuffle assignments behind the scenes. Now the banks got caught red handed doing illegal things that nobody else in our justice system, if caught, would be able to walk away from. The banks should be responsible just like everyone else. If a mortgage broker got caught doing those same dirty deeds, and many were caught, they’d be serving jail sentences and paying huge fines, and many are. The banks need to pay for their wrongdoings just like everybody else.

    If anyone has spent time on the phones trying to reach lenders and then deal with their loss mitigation departments, it is a warped comedy of errors and lost documents and misplaced faxes. Nobody can possibly believe that a business as sloppy as that could remain open one more minute in America with a staff of idiots as they present their departments to be, when a borrower requests help. They continue to test our breaking points even after they received bail out money and even after getting caught red handed in all this fraud. They need to be taught a lesson that will sting a bit, but they have to take it like a man too, like everyone else. So far they have been in denial and now they are acting like spoiled little brats. So it is up to us to challenge them to put up or shut up. Do they have the right to foreclose or your home? Take the matter into your own hands and challenge the lender to proof up. You can get a FREE review at http://AmericaNeeds.ImNotLeaving.com, or there is a great free report how to stand up to your lender at the site http://www.SimplyLoanMod.com but you need to opt in for the report. It is worth the read if you want to try this yourself.

    Good luck, Gabrielle

  • forensicnurse

    worlds smallest violin for the investor who wanted to make big bucks and lost. Now he/she is a victim.
    boohoo. That’s why I’m CONSERVATIVE with my money and buying properties. So I don’t get rich quick, but I don’t get poor quick either. As an “investor” you should know the risks. You are not an “innocent victim”

    ………….
    @ Debi S. Mackey
    There’s an attorney who just took on a case in So.Cal against BofA concerning mortgage fraud
    here’s the article http://www.ocregister.com/articles/pines-271058-home-foreclosure.html
    I have no affiliation with him but maybe he can refer you to someone in your area or if you’re in SoCal he can help you out.
    I’m sorry for your family’s loss and hardship

  • http://STOPTELIES.ORG STOPTHELIES

    Well I knew it was only a matter of time before one started blaming the Predatory Borrowers, oh that’s a joke rite ???? I’m not laughing. ”This fiasco will result in tax payers subsidizing the lifestyles of predatory borrowers’.

    -Take cover…… regain their capital…. **THIS CRAP SOUNDS LIKE AN ARGUMENT WRITTEN BY A SIXTH GRADER, YOU HAVE NO
    How did you get through Law School?? Maybe economics is a lot harder than Law School. Just as the boom can not go on forever, neither can the depression. You are asking for it to stay in your favor, so you can buy cheap investment properties. CONCEPT OF ECONOMICS.
    -Defaulted borrowers by the millions will stop paying altogether if they see there is no consequence. ** ARE YOU FUCKING KIDDING ME? LOSING YOUR HOUSE IS NO CONSEQUENCE??

    -Loans from private capital sources could be greatly reduced or cease to exist all together. THIS AS NO BEARING ON THIS SITUATION, THEY WOULD BECOME MORE AVAILABLE. YOU MAY NOT LIKE THE TERMS…

    Government sponsored entities could replace for-profit enterprises as happened in the automotive industry.
    ***WTF?? THERE IS NO GOVERNMENT IN THE AUTO INDUSTRY, THERE NEVER WAS ANY GOVERNMENT IN THE AUTO INDUSTRY, AND THERE NEVER WILL BE ANY GOVERNMENT IN THE AUTO INDUSTRY. CAN YOU EVEN READ, OR DO YOU ONLY GET INFORMATION FROM FOX NEWS??? THEY HAD A BONA-FIDE LOAN WHICH THEY PAID BACK WITH OUT PAYING ANY OUTRAGEOUS BONUS MONEY.

    -Massive amounts of regulations may result in lawsuits, lawsuits,…… lawsuits.
    ***MORE WTF?? THERE SHOULD BE MORE BANKING REGULATIONS, THAT AND THE ORIGINAL PLAN OF LOAN MODIFICATIONS IS THEY ONLY WAY TO FIX THIS HOUSING CRISIS. ALL THEY HAVE TO DO IS CHANGE THE INTEREST ON MILLIONS OF LOANS AND THEY COULD HAVE STOPPED THE PROBLEM BUT NOW THEY HAVE TO DEAL WITH THEY ECONOMY AND THE DIFFERENCE IN HOME VALUES. STILL, STOPPING MORE FORECLOSURES WILL STOP THINGS FROM GETTING WORSE. AND THERE IS NOT GOING TO BE ANOTHER BANK BAIL OUT. FUCK YOU FOR CHASTISING SOME ONE FOR NOT PAYING THEIR MORTGAGE, THE GENERAL PUBLIC DID NOT START THIS BULL SHIT AND THERE ARE NO PREDATORY BORROWERS, YOU FUCKING JERK. WHEN EVERYONE HAS A JOB LIKE THEY DID IN THE 90S THEN YOU CAN BITCH ABOUT SOME ONE NOT PAYING FOR SOME THING. WHILE MILLIONS OF PEOPLE ARE OUT OF WORK BECAUSE OF A BUNCH OF GREEDY BASTARDS, YOU NEED TO SHUT YOU FAT MOUTH AND STOP BLAMING THE VICTIMS. BUT YOU PROBABLY DON’T WANT THINGS TO GET BETTER DO YA? NOT WILE YOU CAN PROFIT SO WELL.

  • http://STOPTELIES.ORG STOPTHELIES

    COME VOTING DAY, ANYONE WANTING THINGS LIKE THE ECONOMY TO CHANGE, BETTER BE CASTING A VOTE FOR DEMOCRATS. Otherwise you are in for not only more of this, but it will get worse. They have spent the last two years trying to make it worse hoping folks will blame them but it is not their fault, it is the republicans and their plan to take all the money. They have gone fricking crazy. In 1999 would anyone have thought things would be like this? Not even in 2004 with the huge real estate smoke screen in our faces, NOOOOO, who`d a thought? Of course not. JUST START THINKING NOW.

  • http://Bullardrealty.net KAY MAY-TENNEY

    I am a Realtor in Pinellas County, Florida. I am waiting on a commission since November 2009. What are you talking about? The Banks in America are lending money…but to who? They are certainly doing business! May I ask with who? I have not made a payment since 2007 on 5 properties. The banks have not foreclosed on anyone of them!!!! Now I can stay in my Townhome for ever? Bank of America has allowed me a Short Sale. I paid $320,000 pre-construction in 2004. The Builder did not complete the project until August 2006. I put down $30,0000. The Real Estate market crumbled in October 2006. The Bank of America has granted a Short Sale of my Townhome. I had my Broker at Bullard Realy list my home for $100,000 and I got an offer of $75,000 which I accepted. The Bank of America declined the offer on their Equitor auto system with the reason of “OTHER”. Their contact information is 555-555-5555. The email address of their “Fake Negotiator” which is in India……………What do you mean? Why would Bank of AMERICA SEND MY PERSONAL INFORMATION TO A COUNTRY THAT DOES NOT SPEAK ENGLISH? i WAS UNDER THE IMPRESSION THAT WE NEED JOBS IN THIS COUNTRY OF AMERICA! i HAVE NEVER HEAR FROM THE BANK OF AMERICA THAT THEY WERE SENDING MY PERSONAL INFORMATION TO A COUNTRY OUTSIDE OF AMERICA!
    HOWEVER I DID APPLY FOR A FERDERAL GRANT TO START A WOMAN OWNED BUSINESS. I RECIEVED A CALL FROM THE AMERICAN GRANT OFFICE. the woman I spoke to had an odd accent. I asked where she was located and guess WHAT she was not in AMERICA either!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
    Everyone askes ” What is wrong with the system? Do you have an answer? I do! Really I does!

    Thank you so very much for your time,
    Frances KAY MAY-Tenney
    727-641-6116

  • http://STOPTELIES.ORG STOPTHELIES

    LETS GET THIS STRAIGHT ONCE AND FOR ALL THERE WERE NOT ANY BAD LOANS WRITTEN, IN THE SENSE THAT THESE PEOPLE COULD NOT, OR WOULDS NOT PAY THE LOANS BACK. SOME MAY HAVE HAD LESS THAN STELLAR CREDIT OR HAD LITTLE CREDIT, HOWEVER THOSE ARE THE PEOPLE WHO GENERALLY HAVE GOOD REPAYMENT RECORDS. SO AS A GROUP THEY WERE NOT THE PROBLEM. THE PROBLEM WAS AND STILL IS THAT IS NOT THE PROBLEM. THE PROBLEM WAS BAD BAD, BAD, BAD PEOPLE, THE PROBLEM WAS AND STILL IS THE SCAMMERS IN THE FINANCIAL INSTITUTIONS. THEY NOT ONLY SCAMMED PEOPLE WITH LESS TAN STELLAR CREDIT, THEY SCAMMED PEOPLE INTO THINKING THEY AD LESS THAN STELLAR CREDIT OR VERY BAD CREDIT. DOING THIS SO THEY AD MORE PEOPLE TO CON INTO THEIR SMARMY ADJUSTABLE RATE LOANS. A TRUE ADJUSTABLE WITH OUR GREAT INTEREST RATES WOULD HAVE BEEN OK, THE SMARMY ONES THEY USED WERE DESIGNED TO SCAM PEOPLE INTO PAYING A LOT MORE FOR THEIR HOUSE THAN THEY BARGAINED FOR. BECAUSE SO MANY OF THEM WERE FIRST TIME HOME BUYERS, THEY HAD LITTLE EXPERIENCE IN THE LOAN ARENA AAAND THEY WERE ALL ASSURED THAT THEY COULD RE-FI WHEN THE TIME CAME FOR THE LOAN TO ADJUST. SO WHEN THE LOANS ADJUSTED, THOSE 125,000 HOMES SUDDENLY BECAME $425,000 HOMES. YET EVERYONE WANTS TO BLAME PEOPLE FOR BUYING HOMES THEY COULD NOT AFFORD, OR NOT HAVING AN EXIT STRATEGY OR CONTINGENCY PLAN. OH AND KAREN YOU ARE A FRICKIN MISERABLE KUNT BITCH. I HOPE YOU LOSE YOUR JOB OR GET HIT BY A CAR AND HAVE ONE OF YOUR KIDS DIE, OR GET CANCER OR BETTER YET ALL OF THE ABOVE. YOU HEARTLESS CALLOUS BITCH, IT IS OK TAT WE MUST BAIL OUT CRIMINALS FOR BILLIONS OF DOLLARS BUT TE VERY PEOPLE WHO PAID FOR THE BAIL OUT, SHOULD NEVER BE ABLE TO EXPECT A BREAK?? YOU ARE A FRICKIN BITCH. I HOPE YOU DIE A MISERABLE DEATH YOU WORTHLESS WHORE. STUPID PRICKS & KUNTS LIKE YOU HAVE NO IDEA WHAT YOU ARE TALKING ABOUT. WHO SAID REVOLUTION???? START WITH HOW YOU VOTE, ONLY DEMOCRATS. THE REPUBLICANS DID THIS ON PURPOSE ALL SO THE HOGS ON WALL STREET COULD MAKE EVEN MORE MONEY. WE ARE ALL JUST COLLATERAL DAMAGE. IT WILL NOT CHANGE UNTIL PEOPLE STOP VOTING FOR THESE PIGS AND HOGS. DEMOCRATS ONLY OR THIS WILL NEVER END.

  • Geno

    The Banks and Oil Companies are all tied up with this government and have been making billions of of this countries citizens from the beginning. Now they are experiencing a rough ride, but I bet you they are still wearing there suits and driving their Beemers. Lets face it this country is a country of the haves and have nots. There will always be a scam, or game to play – THAT IS THE AMERICAN WAY (unfortunately). NOBODY is addressing the problem that is way deeper, LOOK at your clothing, your computer, the sheets on your bed, etc…… They all have 1 thing in common, they were made somewhere else. This country doesnt make much anymore and what we do make are bad loans and inflated prices on real estate to our own people……… We are getting what we deserve………..

    There is only one solution to the foreclosure crisis and that’s for the federal government to create incentives for private companies large and small to expand and create the millions of jobs needed to put Americans back to work again and at wages which will allow them to pay a mortgage payment and feed their families.

  • http://nonavail@aol.com tjv

    We are in this mess because of greed, people bought houses that they couldn’t afford with no consideration of what the fallout would bring. I watched people get 300k homes making minimum wage, when you tried for a loan, you were given an arm option or conventional loan to consider, broker wanting big commissions pushed the arm’s knowing they couldn’t afford them, greedy homeowner took them with out or bothering to consider the consequence’s of taking on more then they could afford! Yes I want a 4000 sq ft house could I afford one, not on my salary but with an arm hell yes. I bought a small 2000 sq ft that I could afford if one of us lost our jobs or if in the event one of us passed away. Both happened, I found a job after being out of work for 2 1/2 years and the lost of my dear husband, no we didn’t have insurance due to living on one salary gave us the bare minimum to live on. But I’m still having to pay my mortgage for what is due each month, I’m not getting a free ride, WHY SHOULD ALL THOSE OTHER GREEDY PEOPLE WHO BOUGHT HOMES THEY KNEW THEY COULDN’T AFFORD GET A FREE RIDE? Why am I suppose to make a full payment on my agreed contract while others get to live for free, wheres my reduced mortgage at, why should I risked foreclosure and all the cost associated with it, because I bought an affordable home while my neighbors bought what they couldn’t afford get to live for free, wheres the justice in that, The government needs to stay out of this, as the homeowners who say that they were put into foreclosure, when you received in the delinquent notices, when didn’t you contact the mortgage company and fight the inaccurate amount before it fell into foreclosure, it didn’t happen overnight, 3 months before it was referred and if the bank is at fault they have to pay the cost not the borrower. IT CALLED RESPONSIBILITY!!! ALL YOU CRIERS OUT THERE YOUR RESPONSIBLE FOR SIGNING THE CONTRACT THE MORTGAGE COMPANY TOOK FORM YOU IN GOOD FAITH!!!
    Are all banks responsible, no but if you fight them you can win, if your a non payer of responsibility, then your where you at because its everyone’s fault but your own. Take responsibility for yourself and you’ll be out of the mess you caused for your own greedy needs!!!!!!!!!!!!!!!!!

  • Kirk

    Debi, It is almost impossible for a homeowner to successfully complete a loan mod with any lender, and BofA is one of the worst. You can contact Oak View Processing at http://www.heartofhomes.com to see if they can help. They are the best firm I have found to assist with this.

  • Lynn McCloskey

    Debi Mackey- I may have an alternate and much better solution for your Dad’s situation. There would be no bank involved so no broken promises and long waits with zero results.
    Please contact me for more information- lynn@ljminc.com

  • http://www.avisionrealty.com Angel

    Response to Cris: I am not from the La Raza, I was born from a First Mexican Immigrant to the United States Of America my father work the field for many Years, I was born in United States States, an proud Of it. My work hard and made a furtune in Real Estate, My Mother now owns it, He race us to work for ower own, I to am proud to say that I own a lot Of real Estate her in United States, I fill for the people who have been force out of there home’s. And the Rich never get evicted out of there homes when the do Fraud…You on the other hand Cris must of been born with a spoon up your mouth or else where because your no morse for people having trouble. I pray to God that you never loose your job or your fortune…because it does not look good when you loose everything…keep reading all the comments and maybe you have a change of mind….and help somebody in your nieghborhood that is in need..God will forgive you…

  • http://www.KCRealEstateSolutions.com Kathleen Couch

    Kay May-Tenney,
    Call the regular short sale department # of Bank of America. I deal with them all the time. The same thing happened to me, with Other being the reason. I also got a one word email from one person in India that said “already”. And at the same time got one that said “valuation”. What it turned out to be was even though I labeled the signature page of the Purchase and Sale Contract as “signed Purchase and Sale”. One of them said I did not send it, and set the system back to document collection. The phone rep told me I needed to send it. Even though I had done it, I sent it again so the system would move on. My reply email was “already done”.

  • maurice

    Wake up Americans, u are been sucked in to believe the Fed is going to help u –that’s the socialistic tactic of putting fear into the people–open your bluddie hears & eyes –listen to this US president when he gives his sweet talk, it all amounts to B/S. I would not trust Congress & this President further than I can see. We need to replace these jack-asses, so we can get on with integrity, honesty & to be ethical.

    Government –go play on the railway tracks & allow business be what America WAS before, u work, u enjoy, u whine, u suck eggs. STOP TRYING TO TELL ME WHEN I CAN HAVE PISS

  • http://www.towlawbankruptcy.com marc r tow

    As an Attorney I have represented debtors and creditors in Bankruptcy, Collection and Foreclosure. You can criticize me all you want, but 3 days a week for approximately 25 plus years I have fought for the rights of the debtor and the creditor based upon who I represented. I have made in excess of 6000 court appearances.I can understand the problem form 30,000 feet and in the courtroom fighting for my clients. If you want to say my opinions are wrong, they are based upon my experiences of being in the courtroom or trustee hearing room with the clients. Any American is entitled to their opinion, but please give me your solution not just your criticism of me and my idea; at least I have enough backbone to share a solution

    Criticism of me is not going to solve the problem. In fact criticism of me shows when the truth or a sane thought comes out, criticism is not the answer.

    PLEASE PROVIDE ME WITH A SOLUTION, A SOLUTION THAT WILL SAVE THE AMERICAN DREAM.

    I WELCOME YOUR SOLUTION, I WELCOME YOUR IDEAS TO SOLVE THE PROBLEMS.

  • Ted

    Don (October 16 )I would just like to add my agreement to your words, the reason most people are behind on their mortgages is simply due to greed, they bought houses they couldn’t afford, expecting to sell them and make a big profit, at some point in the future. Its similar to gambling at the tables in Vegas, if you bet money you can’t afford to lose, you’re taking a big risk, and if you’re willing to take that risk, be mature enough to deal with the consequences and stop asking the rest of us to bail you out. If you think the economy is bad now, please keep this in mind: The Board of Directors of the US Federal Reserve have already decided and The head of the Federal Reserve(Mr. B. ) has already promised to print and infuse into the US Economy, begining on 11/03/10, trillions of dollars to bring down the value of the US Dollar, so we’ll be more competitive in the world market. The major economies around the world are already considering to follow suit, so their economies won’t suffer as a result of the action to be taken by The US Federal Reserve Bank. How will this affect the US Economy,fewer jobs, more unemployment, more foreclosures. All of you that voted for the present adminstration, stop whining, you wanted change, and you’re certainly getting what you asked for!

  • FED-UP

    I have read almost all the comments on this site, and had to stop when, after the umpteenth time, someone was “slamming” the “blood-sucking freeloaders who bought a house they could not afford” and to “stop crying” about losing your home. I am “one” of those individuals that ultimately lost their home. However, I owned my home for over 8 years before my demise — NOT 2-3 years into homeownership. I lost my home AFTER the so-called “mortgage modification”. I agree with those of you who said that modifications are NOT made for the benefit of homeowners. My “modification” was $150 MORE than the outrageous amount that I was being forced to pay before. I was told “either pay it, or you lose your house next month.” As much as I protested the payment, I PAID IT. Then 10 days later, I was in a car accident, and was unable to work for over five months. I did not have disability insurance, sick pay, vacation pay, etc., etc., available to me thru my employer. So, in December, my home went back to the bank.

    BUT, this is where it gets interesting. Mr. Larry Gass, your post was RIGHT ON THE MONEY. I fought the foreclosure, without an attorney (as I could not afford one with the loss of income). My mortgage was originally with WAMU, was bought out by Chase. Chase came in with paperwork submitted to courts that said they were “Successors in Interest”. I challenged them probably 4-5 times in court (and yes, in BK Court, as I was FORCED to file to keep from having to pay $87K in taxes for “unearned income”,not to mention a significant amount in Deficiency Judgments). EVERY TIME I went to court, I DEMANDED to see the ORIGINAL MORTGAGE NOTE with WET INK SIGNATURES, ORIGINAL CHAIN OF TITLE with WET INK SIGNATURES, and the HUD 3752 (I believe that is the correct form number off the top of my head) that showed they have the legal standing to foreclose. The BK court actually gave them 21 days to provide that information. When I came back to court, the judge “claimed” that he “did not remember” ordering them to provide the info. I challenged the court that they did not have a legal claim, as they had NO LIEN in JP MORGAN CHASE’s name recorded in the county recorder’s office, only WAMU, which did not apply as WAMU had been defunct over a year, and Chase had already filed they were the successors. The “investors” were Deutch Bank National Trustees, but were also NOT listed as Plaintiffs on the foreclosure. It still did not make any difference, even though there are procedures that the BK judges are SUPPOSED TO follow, that not only protects the creditors, but also the debtors, from unscrupulous activities.

    Well, short story long, after the timeline of the “modification period” elapsed, and foreclosure proceedings recommenced, I was surprised to see that my house was being foreclosed on by WAMU, NOT CHASE. I went into court the day that the “request for Sheriff’s Sale” was requested. I once again demanded to see the documents mentioned above. I then challenged the court, asking how they can allow a sale to happen, when it was going “back” to a defunct bank, and NO documents were submitted to the courts stating that WAMU was “back in the mix”, when they(Chase) also had no legal financial interest in the property. I then stated that “it would be like me foreclosing on your home, Your Honor, and you would tell me, no you can’t, prove it. Then I would reply that I said I can, I don’t need any proof, just my word.” I then asked the Judge how Chase/WAMU can foreclose on me when they do not even have a lien against my property. His reply — wait for it — are you ready for this? ===== “BECAUSE THEY CAN!!!!!” ===== and down slammed the gavel.

    Well, our Attorney General is currently in the process (as well as, I believe, 10 other states’ AGs)of investigating JP Morgan Chase’s “alleged” fraudulent foreclosure practices. I am seriously considering taking all my court documents (about 6-7 inches high!!) to the AG’s office for their review, as it is blatantly obvious the allegations the AG’s office can be FULLY SUPPORTED by my documents.

    As for my home, I don’t want it back. Even if we were able to get it back, I would not move back. There are too many hard memories there from this whole experience, and I believe my family and I would never be happy moving back there. We have moved to a small rental home with fantastic landlords, great neighbors and a new school district for the kids. We have started a new chapter in our lives, and we do not wish to “flip the pages back.”

    Oh, BTW, if you think we “overextended ourselves” you could not be further from the truth. We have NEVER purchased a new car, only used, for CASH. All vehicles are over 10 years old and working just fine. When my kids were babies, I went to garage sales and purchased their first THREE YEARS of clothing for less than $500 TOTAL, with some of the outfits still with the tags on them. Up until about five years ago, we purchased nice, used furniture from sales/ads in the paper. Grocery shopping is very inexpensive as well. Last fall I purchased $1,100 worth of groceries for LESS THAN $250 to restock my pantry and freezer, as well as provided for the local food pantry. Last Christmas, everyone in my family (six kids and three grandkids, two set of parents, brothers/sisters and their spouses) received very NICE gifts that cost me LESS THAN $200 TOTAL!! My demise was ultimately resulted from work hours significantly cut back, my car accident, but most of all, the bank’s greed.

    I could go on forever about this subject, but I won’t. I am glad to FINALLY see AG’s, government officials, judges, etc. are starting to recognize this great American Fraud Scheme as it really is. My only concern is whether the investors were actually AWARE of my foreclosure. If they actually have the original Mortgage and Note, we could potentially be foreclosed on AGAIN!!! (Which is actually happening right now to others across the country.) If this isn’t fraud, I don’t know what is!!!

  • http://www.JeffDicks.com Jeff Dicks

    Simplify, simplify, simplify……. We all know this is a looming disaster. The truth be told banks cannot manage the workload. One bank manager in Florida was signing off on nearly five hundred foreclosures per day. That’s almost one a minute. So are we surprised there is a moratorium. Lenders should allow mortgage assumptions without recourse on the original homebuyer. Rent to own is becoming more and more complicated as legal documents need to be drawn. Some local rela estate associations are not helping themselves by not endorsing change. They’re to busy paying the NAR lobbying. Fannie and Freddie are doomed. Stop the madness we need to let these happen and let the system work. If the foreclosure process is effectively taking longer let it be. The real resolution lies in solving the problem, not throwing coat hangers and band-aids at it.

  • Steve

    Marc has seen all this first-hand many times and speaks from experience (as much or more than many others here). At least respect that – and his effort to present positive “ideas” and propose “solutions” from both sides. We can bitch until we’re blue in the face but what are the actual ideas for answers. There are greedy homeowners to blame. There are greedy mortage brokers and banks to blame. There are greedy underlying investors to blame. There is politics to blame. There are some true victims of circumstance and some pretend victims. What are some real solutions? Everyone involved will have to suck it up and face a lot tougher times – and some will pay heavily – deservingly or not. The general US population is already suffering and paying because of those who are or have been greedy or taken risks, and due to those who pretend to be victims with imagined entitlements. The only answer in my mind is a true correction in this country. We need a reality check and it’s not going to be easy. We have little thriving industry, dropping home values, rising unemployment, etc. Tell our government to invest our money back into supporting businesses that create new jobs – not into saving the corrupt or on one-time short-term job projects. We need investment in industries and technology that multiplies itself into more jobs – AT HOME NOT OVERSEAS. Paying out billions more of our money via government makeshift programs and letting all those who are greedy or who made bad decisions off the hook is NOT the answer – and I’m one who made some risky real estate decisions along with the investors who backed my loans – so I’m facing the same realities first hand. I can not even believe the “re-work” loan that BOA wanted me to sign – NO WAY! That is NOT the answer for any reasonable person – unless they want to give away the rest of their financial life. No wonder so many are going BK instead. Everyone needs to be called on the carpet for their greed. Force the banks to eat a lot of reality by letting them have their overvalued homes back if they want them – and watch more of them go under if they won’t work with you. If lenders, banks, and their investors can’t come to grips with the fact that THEIR investment in a note with you (not only your investment with them) is devalued and they continue to deny the reality that they need to decrease your home value and principal and write off their loss – just like many of us as investors have had to do with our own investment losses in the stock market, and that they need to work to keep you as a payor on a note rather than lose you – so be it. They are losing their customers by the millions and are doing little that is reasonable to plug the huge holes in their ships – while at the same time, they soak up our tax dollars to try and save themselves. We feed them and they are cutting off their own food supply. They can drown in their greed then and continue to push many good, hard working people out of their homes along with those who deserve to lose their homes. Be heard by your government that we will not approve of any more money going out to bail out financial institutions. Force the underlying investors to lose their tails. Stop greedy brokers from making overagressive loans. Let the housing market devalue more and correct – sorry but it’s a painful reality. So be it – there will not be any more loans for awhile until the lenders find themselves on their knees. Come back to grips with reality and pull this country back together. We need another Reagan era in my opinion. Stop buying homes until values are real again – and then do it on your own terms. We are not victims – take charge even if it’s painful. No pain, no gain.

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