ECONOMIC SHOCK THERAPY FOR WALL STREET: Mortgage Lenders Could Soon Be Falling Like Dominos

[Old Time Pagan]

This story and stories like it have been woefully under reported in the broader national American media stream. This may be one of the most important stories of 2010 and this piece by Ellen Brown is arguably the most comprehensive on the subject you may see anywhere.

If your mortgage lender is foreclosing on your home, is about to foreclose, or if you have a family friend, relative or co-worker facing that prospect, you may want to read this piece carefully.

What you see here may surprise you. If you are a homeowner being foreclosed upon by a mortgage lender, you may actually be sitting in the driver’s seat and not have a clue you are, to a large degree, in control of that situation.

Here's the link to read the entire story. I offer this to my fellow DUers in the hope that it may save your home or the home of someone you know or love from being improperly foreclosed on. It seems to me that with the help of a lawyer versed in these matters you may find the situation greatly improved.

http://skyvalleychronicle.com/FEATURE-NEWS/ECONOMIC-SHOCK-THERAPY-FOR-WALL-STREET-BR-mortgage-Lenders-Could-Soon-Be-Falling-Like-Dominos-br-I-By-Ellen-Brown-I-485159

Maybe this is like shock therapy. Maybe this will actually get the lenders to the table and encourage them to work out deals that are to the benefit of everybody.” -- Economist Karl E. Case, quoted in the New York Times


(NATIONAL) -- The hits are coming fast and furiously. Major Wall Street mortgage lenders could soon be falling like dominos – and looking again for handouts.

On September 20th, Ally Financial Inc., which owns GMAC Mortgage, the nation’s 4th largest lender, halted evictions and resale of repossessed homes in 23 states.

This was after a document processor for the company admitted that he had signed off on 10,000 pieces of foreclosure paperwork a month without reading them.

[The Uncola]

1. Very interesting and perhaps..

... VERY helpful. Thanks

[DirkGently]

2. People have been complaining about MERS since it started. Interesting to see if this kills it.

[northernlights]

3. holy freakin' moly.

:wow:

So glad there hasn't been a mortgage on my home in 25+ years...before any of this shit went down. A lot of crap has hit the fan in my life in the last 10 years. Grateful this big, fat, sloppy, stinkin' turd managed to miss me!

[dixiegrrrrl]

4. You still may be a target.

Apparently the banks, BOA in particular, have been foreclosing on homes they never had a mortgage on.
See, all the original mortgage notes were intentionally destroyed, and now banks have been PROVEN to be making up
false notes, one that say a mortgage is due and late, which they file in court, get a foreclosure approved, and
hire contractors to break into the house....even the WRONG house...even houses which have never been served with foreclosure notices.....change the locks and reportedly also steal things which are in the house.

http://4closurefraud.org/

[northernlights]

5. I know...

and in a sense we are *all* potential targets. But crooks generally look for the "low hanging" fruit. If they try to break into my place they will encounter two good-sized dogs. One will ultimately run and hide and the other knock them down and lick their faces off. Or not. They don't know -- there will be a smaller yellow dog shrieking like a banshee. That in itself is terrifying because it doesn't sound like a dog so much as some kind of wild animal (hyena? who the eff knows). And a big black dog with lots of big beautiful white teeth coming at them. And my place right now looks so run down and pathetic from the outside, they will (rightly) guess there's not going to be much worth stealing inside.

The courthouse documents show no mortgage or lien against my place. Clean purchase in 2003. Prior owner bought it 20 years before that and had long since paid off the mortgage as well. If you go to your county courthouse and look through their files -- and these are public records accessible to everybody -- you can look up and see mortgages taken out and mortgages paid for, liens against property, etc. I know this because I checked it out a couple times: once with a problem neighbor and once with a contractor who trashed my place (looking to see what if any assets he had to go after if an attorney would take the case).

So the crooks that show up will be weighing possible breaking and entering charges, possible mauling, and not likely much worth stealing...and are more likely to move on.

At least, that's the plan.

And in the meantime, for every totally innocent victim of these thugs, there are many more who have not been victimized yet.

[CanonRay]

6. Holy shit, where is this going to shake out?

“The banks simply digitized mortgage titles into a privatized system, called the Mortgage Electronic Registry System (or MERS),” he said. “And it did the transfers by trading Excel spreadsheets among the banks and trusts, rather than endorsing the notes as required by their own contracts, by state real estate law and by IRS rules.”

He stated that 60 million properties are recorded in the name of MERS -- 60% of the mortgages in the USA, and 97% of the loans made between 2005 and 2008.



Un-fucking-believable. This is a time bomb, IMHO

[nc4bo]

7. Oh Jeezus.

I remember a while ago, when the great foreclosures began, there were those who told people not to be so quick to give up and to ask the bank for the original mortgage papers.....

How right they were.

[phantom power]

8. My buddy and I were pondering: if CA and TX and DE (and BofA everywhere) have frozen foreclosure...

What bank in their right mind would issue a mortage in this environment? It's unenforceable. And if banks en masse decide that they aren't going to issue mortages do we still have any housing market? And do banks have any revenue?

:shrug:

[dkf]

10. Exactly! How does this not mean a complete collapse of the real estate market?

What investor in their right mind wants to buy a mortgage backed security now?

[jtuck004]

9. I may have missed something, but isn't the taxpayer stake in ALLY

about 58%?

So a taxpayer may be paying to bail these folks out while potentially having their home foreclosed on, at some point?

sheesh...

Are we not the most creative people ever ;)