Friday, October 8, 2010

Foreclosure Moratorium Goes Nation Wide

The latest update on Foreclosure Gate is just in - Bank of America halts foreclosures in all fifty states. The real estate market lockup is coming soon due to the clouds surrounding deeds, titles, and mortgages lost in the securitization ponzi scheme and MERS.

Keep in mind, this whole mess is no longer about whether deadbeats and strategic defaulters get "saved". They will be kicked out of the house eventually. The deeper problem is that if banks cannot legally determine the chain of custody to foreclose, they in turn cannot logically do so when a mortgage is satisfactorily paid in full either!

Who owns your house/mortgage note? What confidence do you have that the deed and title will be transferred properly and the lien released after all those years of payments are completed (or after you sell)? Think that just sounds plumb crazy? Read this and this!

" “Defective documentation has created millions of blighted titles that will plague the nation for the next decade,” said Richard Kessler, a Sarasota, Florida attorney. Let me expand upon this horror. For any and every U.S. residential property which has a mortgage that has come within reach of the large U.S. banks over (at least) the last four years, it now has a title which cannot be relied upon by any potential buyer.

Readers must understand how our legal systems operate. A party which has defective title to a property (i.e. the Wall Street banks) can never pass "good title” to any buyer. From the time that defect is created, no subsequent buyer can ever own that home, legally. Should that defect be discovered – several years later – by the original owner, that owner then has several more years in which to file a claim (based upon your limitations statutes).

To be more specific, any U.S. home which has been bought / sold more than once in the last five years, and any / every home with a mortgage tied to one of these fraud-factories cannot be trusted when it comes to being able to purchase clear title."

Worse yet, trillions of the RMBS that were securitized fraudulently are now an empty box for investors. Lawsuits will be coming by the thousands from all directions. The lawyers will have a feeding frenzy, many banks will fail, few if any will go to jail, and the taxpayers will foot the bill. Mark my words.

The housing bubble and all of its repercussions is starting to look a lot like the crime of the century!

Now for some humor to help explain it all...

The Daily Show With Jon StewartMon - Thurs 11p / 10c
Foreclosure Crisis
Daily Show Full EpisodesPolitical HumorRally to Restore Sanity

And here's a good little ditty on how the MBA (Mortgage Banker's Assoc) strategically defaults on their own mortgage, while urging the rest of us to suck it up and keep paying down that bubble era ball and chain! Nevermind the nation wide foreclosure moratorium.

Nothing to see here, move along...

The Daily Show With Jon StewartMon - Thurs 11p / 10c
Mortgage Bankers Association Strategic Default
Daily Show Full EpisodesPolitical HumorRally to Restore Sanity