The ForeclosureGate scandal poses a threat to Wall Street, the big banks, and the political establishment. If the public ever gets a complete picture of the personal, financial, and legal assault on citizens at their most vulnerable, the outrage will be endless.
Foreclosure practices lift the veil on a broader set of interlocking efforts to exploit those hardest hit by the endless economic hard times, citizens who become financially desperate due medical conditions. A 2007 study found that medical expenses or income losses related to medical crises among bankruptcy filers or family members triggered 62% of bankruptcies. There is no underground conspiracy. The facts are in plain sight.
ForeclosureGate represents the sum total illegal and unethical lending and collections activities during the real estate bubble. It continues today. Law professor and law school dean Christopher L. Peterson describes the contractual language for the sixty million contracts between borrowers and lenders as fictional since the boilerplate language names a universal surrogate as creditor (Mortgage Electronic Registration System), not the actual creditor. Other aspects of ForeclosureGate harmed homeowners but the contractual problems that the lenders created on their own pose the greatest threats.
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The Ponzi scheme of money creation is being exposed.
ReplyDeletelol, so it's the banks fault that millions jump on the buy and flip bandwagon? Show me the mass foreclosures that aren't based on folks not fufilling their contractual obligations? The unethical practices were not a one way street. Certainly, there were many lending programs that any smart investor/buyer wouldn't sign up for. But that's what happens when millions of people who've never owned before, see the prospect of "certain profit", and buy in the hopes of flipping the property, and go with an ARM or interest only loan. I bought during the boom, got a 30 year fixed. For some god-awful reason I was pre-qualified for a 440K loan, but did I spend anywhere near that? No, because I know basic math. Some banks/financials got stuck holding the bag, along with a lot of regular joe's. But the blame isn't a one way street, there is plenty to go around. Personally, I do levy some blame on those who signed on the dotted line.
ReplyDeleteThe bank types the money into existence and then we are expected to pay them the money (we created with our promise to pay) PLUS interest.
ReplyDeleteThe banks do not have title. They cannot prove they had the money we borrowed.
Get it?