Wow! Big news on the foreclosure front. Yesterday, California Attorney General Edmund G. Brown Jr. directed Ally Financial, Inc., formerly known as GMAC, to prove immediately that it is complying with state law or, if it cannot, to cease and desist from foreclosing on California homes. Earlier in the week, GMAC voluntarily halted foreclosures in 23 other states.
Oct. 1, 2010
All of this occurred after a months old deposition in a foreclosure lawsuit finally made its way into the public view. The deposition proved beyond a shadow of a doubt what I have been saying for months. In many cases, foreclosing entities lack both the legal right and the nominal right to foreclose.
By nominal, I mean they suffer no loss on which a claim can be made. The borrower owes them no money. And the original funder was paid off by credit default swaps and tax payer tarp funds so there is no actual creditor who is entitled to anymore payments or the property. By the long held legal principal of subrogation, the borrower may owe little or nothing. The trusts that held the original notes have been dissolved and in all likelihood the notes were destroyed subsequent to that or more probably, shortly after they were originated.
That is why they can only produce digitized copies. The purpose of requiring the original note is to determine whom, among all of the parties who passed mortgage notes around like a bong at a frat party, is the actual creditor and to get from them a FULL accounting of all of the monies paid in connection with your loan.
The securitization of diced up pools of mortgages has created this and similar problems for all foreclosing entities. People who have already lost their homes to an unlawful foreclosure will have legal standing to demand them back and buyers of these foreclosed properties will make claims against title companies who have nowhere near the reserves to cover the claims. Stay tuned, this is far from over.
Crazy things I was saying a year ago are coming true now. Go back and reread some of my stuff from last fall.
Better yet, come to my Workshop where I will share my incites into the latest news and what it might mean for people attempting to get a loan modification, avoid foreclosure or buy a foreclosure or short sale property. The Temecula Library on October 9th.
I will be talking about recent legal developments. Courts are starting to get it and lenders are starting to get nervous.
They keep saying that people knew what they were getting into when they signed their loan documents.
That’s pure unadulterated bullspit. They never told anyone that the loan they were signing for was based on a 100% over value false appraisal. Nor did they mention that your loan was intended to be part of a pool of loans, which if a certain percent of loans failed they would be paid several times the loan amount for each loan in the pool.
Did you know that people who never loaned a dime were buying an insurance policy on your loan betting that at very least it would be part of a pool that was created with features guaranteeing that it would fail?
Did you know the meaning of Collateralized Debt Obligation, Credit Default Swap, Mezzanine Tranche, Special Purpose Vehicle, Delaware Statutory Trust, Nominee, or that big lenders were doing away with our age old property records and replacing them with private records and in many cases, no records at all?
But to make all of that legalese and obfuscation pay off, the loan pools must fail. The only reason for all of that was to make default way more profitable than loaning money.
For servicers, the incentive to default a borrower is so great that borrowers who have never been late are routinely pushed into default simply by the servicer refusing to credit the payment.
And the incentive to default borrowers is still in place, so if not you, at least your neighbor. They may get around to you yet.
See my blog, come to my workshop, tell a friend. Don’t kid yourself, this is far from over. Our economy cannot recover until we begin to create high value jobs. Absent some huge, and I mean ginormous government works program being created, which I doubt, I can’t see where they are going to come from.
Large companies are sitting on piles of cash and have no intention of hiring workers in America.
That leaves small business. But the impact of foreclosures and years of vacant store fronts don’t bode well for that happening until our local communities stabilize. For the foreseeable future it appears that layoffs to once recession proof jobs such as teachers and police officers are coming.
I have always believed that America is a great country not because of its powerful military but because it was a place of opportunity for people who were ambitious.
At the moment, America’s promise has been choked off by a handful of insiders who diverted our wealth to them. The joke may yet to turn out to be on them. Here in San Diego, where a lot of wealth resides, we cannot afford to fix our potholes and I understand that many financiers have had to forego their Bugattis and Maybachs in favor of more durable vehicles such as the Dartz Prombron Monaco Red Diamond Edition.
At $1.5 million, the price of combining luxury and durability doesn’t come cheap, but according to its promotion it’s,
“Perfect for the urban warrior, this bulletproof SUV is an upgrade from the original 8.1 liter GM V8-powered Dartz Kombat T98.
Debuting at the 2010 Top Marques Monaco show, the most expensive SUV in the world will feature ruby red matte paint, gold-plated bulletproof windows, 22″ Kremlin Red Star bulletproof wheels, tungsten exhaust and a coating of Kevlar.
The badges and dials are made with white gold, diamonds and rubies. It also features a special Vertu mobile phone with an “alert” button and a Rogue Acoustic Audio System. Best of all, the interior is lined with whale penis leather!”
While bullet proofing is included, apparently rust proof undercoating is extra but the interior makes it worth it, don’t you think.
In the meantime, more families will lose their homes to fuel this level of luxury.
By spreading the truth about what happened to our prosperity and sharing strategies to bring real change, we can all make a difference in shaping the America we want for future generations.
Introduce people to my blog. If you know anyone who is being affected by this, have them contact me. Everyone’s story is important and I have learned about patterns of conduct because people from all over the country write to me.
Blog by George Mantor
The other voice in real estate, not the main stream media, not the NAR, but right up from the streets, where it really happens.
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