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Help - The Banks are Crooks!
The bankers loudly complain about the horrible danger of a borrower getting a free house and want the states to let them get by with anything they want so that doesn't happen. (Non-judicial forclosure is one big way.) Judges too have a real aversion to a borrower not having to pay. The real point is, the borrower has the right to not pay a bank without standing. The borrower/homeowner has the right to pay the bank that is actually owed the money. If a bank is owed money it is their duty and responsibility to prove it as the law requires. If they were sloppy with the paperwork or outright crooks, that is hardly the borrower's responsibility or problem. The truth is the banks have ripped off the borrower, the investor, and the American taxpayer. They try acting like they walk into court with clean hands, but they of course are still just lying and cheating like they always have.
In the old days a community bank would borrow you the money for your home. They would write the mortgage and they would own the promissory note that secured it for the 30 years or so until it was paid off. You have an actual relationship with the bank. There was always some one to talk to who knew what was going on. You probably kept your savings and checking accounts there too, and financed your car there.
Then it all changed. Writing mortgages became big business. Mortgages were written just to sell them. Mortgage lenders like Argent, Ameriquest, CountryWide, WaMu and many others originated mortgages and almost immediately sold them to a warehouse lender for 5 percent above face value. They made money on the spread, plus on various fees they collected from buyer and seller. Sometimes they would keep the loans for a while. Their subsidaries often collected the mortgage payments for a few months before selling the paper to a warehouse lender or directly to a securitizer.
The warehouse lenders (big banks and Wall Street) then sold them into a REMIC securitization trusts. Investors, also known as certificateholders, purchased these instruments which are best compared to bonds. Investors all over the world purchased these things.
A freeding frenzy resulted. Originators threw credit standards out the window. Soon anyone with a pulse could get a mortgage loan. Even a lot of people without pulses got them as outright fraud was rampant. There loans were called sub-prime and Alt-A.
The originating mortgage lenders needed to get the homes appraised first. The pressure was constantly on the appraisers to up the appraisal as much as possible. If the appraiser tried to be honest, the bank would go find someone who wasn't. The appraised value of the property kept going up and up. This was no accident, it was essential to the entire sub-prime and REMIC scheme.
Hundreds of thousands of people who wanted the American dream of owning their own home got sucked in. Everyone believed real estate prices would keep going higher. People who had one mortgage paid a little on it, and with an even higher appraisal of their home, borrowed even more money to finance their lifestyle with second and even third mortgages. Everyone in the business wanted to write more mortgage loans and the pressure was extreme.
Meanwhile the big banks and Wall Street firms created more and more REMIC trust vehicles which created a bigger and bigger demand for mortgages to sell into them. They sold these securities in the U.S. and around the world to other banks, investment funds, retirement funds, pension funds, to individuals and anywhere else they managed to push this paper.
AIG and other insurance companies wrote insurance policies for these trust certificates, so investors believed they were insured. Only some investors in the upper tranches of the trust were insured. They were the big banks. None of the insurance companies had the money to back up all of those insurance policies. The companies were in competition for the business so they undercut each other on price. The entire banking and insurance industries were de-regulated so nobody was minding the store or monitoring the big picture.
The credit rating agencies made money giving these things good ratings. They didn't make money giving them realistic or bad ratings. People believe the rating agencies, but they were never independent either. They all nursed at the teat of the big banks and Wall Street firms.
These were mainly sub-prime mortgages. The most notable feature was that you didn't need any credit to get one, and the first three years had low payments. After the three years were up, the payments greatly increased. Many people found they could not make the payments. Then the economy started slowing down, people lost jobs, got reduced hours and pay, and even fewer could make their mortgage payments.
Then the bottom started falling out. The governments only choice was to help out the strongest banks and close down the weaker ones or get them sold off to the stronger banks. This took countless tens of billions of dollars. Then, AIG and the other insurance companies could not meet their obligations and the government bailed them out. Freddie Mac and Fanny Mae wrote insurance for millions of mortgages and the government bailed them out and continues to do so to the tune of billions of dollars every month. Although Freddie and Fanny were created by the federal government, they are in fact investor owned publicly traded business corporations. Only Ginne Mae is actually a government agency and was not involved in private label REMIC trusts.
Many people wonder why all the hundreds of billions of dollars in TARP and other spending did not improve the American economy faster and to a greater extent. Why? Because 78 percent of all that money went OVERSEAS. We bailed out the world. In the beginning when Bush was still president and we had the rebate of about $300 per taxpayer to give the economy a boost, all that money was borrowed from China.
Lets put it another way. The bankers lied and stole from the homeowners. They inflated the appraisals of property over and over again. They sold the loans they knew were no good into the REMIC trusts and then sold the certificates to investors. The investors were often the places where you had your investments, retirement and pension funds, the places your 401K was invested in.
Later when they took billions in taxpayer funds to modify mortgages they failed to do so or took forever. They would negotiate a payment reduction with one hand while foreclosing with the other. In their greed they have even foreclosed on people without mortgages and people whose payments were current. The big banks are economic monsters that roll over everything in their path.
The only way the homeowner can stop them is in court, and that is where we can help.
Everyone was so busy selling and making money, they neglected the paperwork which is now coming back to bite them. "Neglected" is too nice of a word. They didn't give a fuck. They were not thinking about down the road about foreclosures. They were not thinking about actually following the requriements of the trust Pooling and Servicing Agreements. They weren't thinking about the investors. They weren't thinking about all the title problems they were going to create. The lenders were on a feeding frenzy, almost a blood lust, and the only thing that mattered was talking the suckers into taking on big mortgages they couldn't afford and selling the paper into a trust at a profit as quickly as possible. Due diligence was not even in their vocabulary.
Then finally they realized they lacked the paperwork they were legally obligated to have. All the banks turned to document mills that fabricated the mortgage assignments they needed. Many times they went and filed them with county clerks, which gives the appearance of truth and reliability. Judges just assume these assignments are valid. Many times they are not and we can prove it.
Then when it all collapsed, they got bailed out by all the taxpayers who will be paying for this mess for decades if not generations to come.
In a nut shell, your mortgage loan has already been paid off in effect. No bank trying to foreclose today has suffered any injury. Look at the assignments of $500,000 mortgages for $1.00 to the trust. You can be sure the investor was told it was a $500,000 current mortgage when it was already in default and sold to the trust for one buck. The banks have ripped off everyone and continue to do so.
Everybody has been paid, except for some of the smaller investors, institutional investors in the U.S. (chances are the overseas ones were paid) and the American taxpayer.
If the banks didn't care about ripping everyone off and didn't care about the paperwork to make it all legal and allow them to foreclose later, they deserve no sympathy. It is the underwater homeowner trying to save his home and neighborhood who deserves the sympathy. He may not realize it, but the American homeowners and all other citizens have already paid the banks in full. The banks just want to collect a second or third time.
Park Place Securities, Inc. (and affiliated companies) is going to make them work for it.
The results of these over appraisals are still being felt in local communities today. When a bank forecloses and there are inadequate bidders, the bank uses a credit bid which is the judgment for the full amount of the loan. This "sale" then goes down and helps to determine the prices for taxes, etc. of nearby and similarly situated properties. This forces up taxes and there have been a handful of civil actions about this problem.
The average mortgage holder is underwater. The property is worth less, often far less, than what is owed on the mortgage. There is no way the mortgage borrower can sell and break even, much less make money when the appraisal was so inflated to begin with.
HOME OWNERS CAN WIN REMIC FORECLOSURES
We provide tons of free information, but in order to really know how it all works for your benefit and to learn foreclosure case and trial tactics, plus much more about defeating the banks and servicing firms, you need to read our 171 page book and special report: Home Owners Can Win REMIC Forclosures.
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