Banks Don’t Think Losing Your House Is Enough
MSFraud Contributor Comment: Once again...this is not about people simply taking out a loan that they later could not 'afford'. But then we know that. The banks did make massive loot from the buyers and then from the taxpayers. The onus (or anus as I like to say) was on them to qualify the loans and require necessary documents...and offer something other than fraudulent, made to fail, loans. While they have been made richer for the bubble they created by design and the fraudulent acts they committed; the dupes they defrauded did lose everything including their credit and in some cases cannot even rent a property from the banks or Chinese or whomever was sold their home for pennies on the dollar.
Then there are the people who committed suicide, etc. out of desperation. There are those of us for whom the financial, credit, health and emotional damage is so
devastating (in light of the fraud and then the court and fiduciary and DOJ betrayal) that they cannot get back up.
Estoppel should go into effect for every last one of
us... From the point which we were dead in the water, everything bad that happens is further exasperated by the new perps because they know you cannot do anything about it. It is a never-ending descent into hell and helplessness while we watch every parasite on the planet use a system that we pay for, but know nothing about how to avail ourselves of.
Comment #2: Fraud upon fraud upon fraud, and it never ends. Amazing scheme where they foreclose on someone, but really don't. Collect on the PMI, write-off the asset for a tax break, and keep the original borrower on the hook as it accrues more expenses. Keep thinking I've seen or heard about every scam in the world, and then get surprised by something like this.
When you take out a mortgage on a home, you are assuming risk.
What if something happens so that you can’t pay back the home
loan? You could then lose the house. All the money you “put
in” the house will be gone.
you aren’t the only one assuming risk. The bank is also taking
a chance since they are hoping to make money off you. At least
that used to be true. In this century banks began selling the
loans rather than keeping them as their own investments. The
point that this was all risky got lost in a fog of stupidity and
the housing bubble collapsed, many people found themselves
unable to afford their homes and owing more than their home was
now worth. Many had to give up and take the hit by allowing the
bank to foreclose on their homes. They lost everything and had
to start over as renters hoping to rebuild.
many have discovered they are not permitted to start over.
According to CNN:
these “zombie foreclosures,” borrowers move out after their
bank schedules a foreclosure auction only to learn months or
years later that the auction never took place or the bank never
transferred the deed. That means the borrower still technically
owns the house and is on the hook for property taxes, fees, and
homeowners’ association dues.”
reports that foreclosure was started with 2 million homes but
never completed. These people, after thinking that they have
done what they were supposed to do, find that the bank never
actually took back ownership of the house, or an auction never
took place. The lenders, in some cases, “delay taking
possession to save on taxes and other costs that then stay under
the borrower’s name.” They never tell the person who has
“lost” their home that they are continuing to accrue
expenses even while they are paying to live somewhere else.
Sometimes it is not only the fees, the debts themselves continue.
Purdy, a real estate attorney in Soquel, Calif., said borrowers
can’t always trust lenders to file foreclosure paperwork
properly. In November 2011, when his client Christopher
Warner’s Felton, Calif., home was auctioned off, his mortgage
debt was fully extinguished — standard practice based on
California law. Warner’s lender, however, recorded $120,000 on
its books as debt — the difference between what he owed and
what the house sold for — and gave it to a collection agency.
The debt has lowered Warner’s credit score by an additional
100 points, he estimated. ‘It nearly put me into
bankruptcy,’ he said. He has hired Purdy to get the debt
collectors off his back.”
government action “on behalf” of people going into
foreclosure, has resulted in some money for the government but
no actual relief for the people the government claimed to care
a $25 billion settlement with the state attorneys general last
spring, the nation’s five largest mortgage lenders agreed to
inform borrowers of any decision to forgo or delay a
foreclosure. But victim’s attorneys said the banks have not
been careful about following that policy.”
incentive do lenders have to abide by their agreement? The
bottom line is that people who are struggling financially
don’t have lobbyists. The government will make noise about
“doing something” to make some headlines, but it isn’t
motivated to do much at all. Yet these debts are toxic. Until we
put them behind us, not only these people, but the national
economy, are blocked from recovering.