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Thread: U.S. Housing Market Foreclosure-gate

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    Politics.ie Member rhonda15's Avatar
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    Default U.S. Housing Market Foreclosure-gate

    Things are getting interesting and there are some really scary stats:



    Foreclosure-gate is heating up and the mad scramble for what's left of $45 trillion in real estate is guaranteed to leave homeowners homeless, pension funds unable to pay their pensions and even some of the biggest banks insolvent. A great housing goat rodeo was created when some of the 65 million mortgages on U.S. homes didn't follow proper legal procedures;

    * Fraud by homeowners who lied on their loan applications
    * Fraud by banks who didn't follow proper legal procedures around the notarization and processing of mortgage documents
    * Fraud by investment banks who packaged this junk and resold it to unsuspecting pension funds
    * Pension funds promised returns to their pensioners they could never achieve

    There's another very important wrinkle to this story. When the banks resold the mortgages, they didn't just send the paper work to the next bank after George Bailey signed it over to the Cleveland Teacher's Pension Fund. It went into REMICs (the Real Estate Mortgage Investment Conduit).

    Somewhere between the REMICs and MERS, the chain of title was broken.

    if the chain of title of the note is broken, then the borrower no longer owes any money on the loan.

    Foreclosures can only be done by the note-holder, who has the legal standing to show up in court and ask the judge to foreclose and evict. In about half the states, they have to bring the ORIGINAL (not a photocopy or electronic version) document with "wet signature", so the judge can see the actual ink on paper. They have to prove the chain of title and that they own the note they intend to foreclose on.

    BECAUSE IF THE CHAIN OF TITLE OF THE NOTE IS BROKEN, THEY WON'T BE ABLE TO FORECLOSE.

    Once the people going into foreclosure figure this out, they will stop paying and hire lawyers. Some will keep their homes for free.

    Once the people who have been paying their mortgages figure out they might not need to pay, they will stop paying.

    Once the lawyers figure this out, they are going to be busy for the next five years helping people sue the banks.

    Once the shareholders of the bank stocks figure this out, they will sell the shares.

    Once the pension funds figure this out, they will also sue the banks and return their now junk MBS.

    Once real estate buyers figure this out, they will stop buying anything with the potential for a tainted chain of title. The foreclosures will stop selling (many already have).

    http://www.marketoracle.co.uk/Article23629.html

    [ame=http://www.youtube.com/watch?v=9yhZBgi5NOg&feature=player_embedded]YouTube - DYLAN RATIGAN: FORECLOSURE FRAUD & $45 TRILLION DOLLARS[/ame]

    The money quote (at about 8:50 in the video)...
    > "Nobody in this country knows for sure who owns any real estate, residential or commercial."

    http://www.marketoracle.co.uk/Article23629.html

    Goes to show how rotten the process is.

    The foreclosure sh*tstorm in the US is only getting started.

    This could be the final straw for the financial institutions, the collapse will be epic.
    Last edited by rhonda15; 23rd October 2010 at 10:06 PM.
    "The individual is handicapped by coming face to face with a conspiracy so monstrous he cannot believe it exists.'' ~ J. Edgar Hoover http://tiny.cc/b2jo9

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    Politics.ie Member rhonda15's Avatar
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    [ame=http://www.youtube.com/watch?v=bIsjGB0fews]YouTube - Black: `Major Frauds' Continue at Mortgage Companies[/ame]
    "The individual is handicapped by coming face to face with a conspiracy so monstrous he cannot believe it exists.'' ~ J. Edgar Hoover http://tiny.cc/b2jo9

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    This is how it's going to end.

    [ame=http://www.youtube.com/watch?v=W1skaCKoWJA]YouTube - Pesci Beatdown - Casino[/ame]

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    Politics.ie Member seabhcan's Avatar
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    Sounds like a problem but it can be solved by changing the law - which is what will be done.

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    Wasn't the first case on this in Ohio....about 2 years ago?

    The entire banking system across the West seems to be completely broken. But because they own the politicians the taxpayers are being asked to stump up the cash to keep these reckless incompetents in their position of power.

    This can't go on much longer, the next couple of years are going to be a bit mental!

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    Politics.ie Member richie268's Avatar
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    A more complex form of debt forgiveness, it was flagged last week.
    Investor fears grow over foreclosure mess | Reuters

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    Politics.ie Member Frank Galton's Avatar
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    Could paperwork snafus have happened in Ireland?

    Mr McGrath said Mr McEvoy, though the William Early firm, acted for his mother Angela McEvoy and his sister Claire Swords in relation to the sale of a house they owned in Castleknock, Dublin.

    Mr McEvoy obtained an apparently unregistered mortgage on that property of €297,000, notwithstanding the fact he did not own it. The house was subsequently sold for €303,000 and the proceeds of that sale were credited to the solicitor’s own account.

    Mr McGrath said that Mr McEvoy’s actions had the effect of increasing the client account deficit by at least another €297,000 leaving a total of €900,000. In addition Mrs Swords submitted a claim to the Solicitor’s Compensation fund for her 50 per cent share of the proceeds of the house sale.

    Mr McGrath also stated in his affidavit that large sums of money in client accounts held by the William Early firm were credited to an account in Mr McEvoy’s name. The client funds were disbursed and it was not possible to establish the beneficiary of these funds.

    Monies at JM McEvoy were diverted to make payments to unrelated third parties. Funds were also drawn down from the client account at that firm to support the office account. Seven unstamped deeds were identified at the Gorey firm, whose exposure to Revenue is estimated to be in excess of €150,000.
    Solicitor suspended and assets frozen - The Irish Times - Thu, Sep 01, 2011

    How were these deals going through without verification and stamps?
    The Daily Mail -- the world's biggest cut-and-paste operation.

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    Quote Originally Posted by Frank Galton View Post
    Could paperwork snafus have happened in Ireland?



    Solicitor suspended and assets frozen - The Irish Times - Thu, Sep 01, 2011

    How were these deals going through without verification and stamps?
    Stamps me hole. Would we ever join the 21st century and introduce proper title insurance as a matter of general practice?

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    Politics.ie Member dunno's Avatar
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    Guest Post: Endgame: When Debt Is Fraud, Debt Forgiveness Is The Last And Only Remedy | ZeroHedge

    Some relevance here. The sheer number of mortgages that were simply fraudulent both in the US and here, needs to be confronted. A lot of the ponzi crap just has to be wiped.

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    Politics.ie Member Magror14's Avatar
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    In this country until the mid-1990s conveyancing was done with the bank separately represented. For the previous 15 years the solicitors faced an onslaught from all corners of society to get rid of this practice.Why couldn't we go to the American system of title insurance, they cried. Finally, the solicitors profession caved in under the pressure and introduced a system where the purchasers solicitor also acted for the bank and that cut out the cost of the bank's solicitor.

    The problem as we have seen is that such a set up is flawed. With the pressure of business there were always going to be a number of solicitors who cut corners and didn't perfect the title once the money was handed over.

    I suspect that the American system was as deeply flawed with the added dimension that mortgages are routinely traded on the Banks side.

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