So you’re in foreclosure and trying to decide if the whole “robo-signing” scandal will mean that the courts will give you the house? Don’t count on it. For all the grandstanding by politicians and accusations of “greedy, sleazeball lenders”, at the end of the day, the moratoriums are unlikely to do much for borrowers except get them a few more months in their house.
The question here is not, after all, whether money was lent to a borrower or whether the borrower is responsible for paying the mortgage. The question is, who is the owner of the mortgage? Who gets the payments, and who gets to foreclose? It is highly unlikely, especially given the political pull the lenders have, that the courts will say “Let’s just forget it. We’ll wipe out all of the debt and let everyone keep their houses.”
The other issue is if you live in a nonjudicial state. All those “robo-signed” documents were part of a process that doesn’t exist in non-judicial states:
In California, most lenders foreclose outside of court. The bank tells a trustee, which may be an arm of the bank, that it’s time to foreclose, says attorney Pamela Simmons, a partner with Simmons & Purdy in Soquel (Santa Cruz County), who works for borrowers.
Because there usually is no court involved, the court documents allegedly robo-signed in other states generally don’t exist in California. But California and other states with nonjudicial foreclosures are seizing on the headlines to propose moratoriums on other grounds.
I’m not saying that lenders haven’t been greedy, sleazy and do occasionally foreclose on properties that aren’t theirs. They have, and with luck, they will be penalized for their actions- for all the good it will do. It seems likely they will just come screaming for more bailouts because financial penalties will hurt their bonuses and taxpayers will be stuck again.
Borrowers facing foreclosure might read about calls for national foreclosures and hope they’ll win the housing lottery. For myself, I expect expensive delays and further disruptions in the housing market, but at the end of the day, it will be business as usual.
The situation is probably best summed up by Rick Sharga, senior vice president at RealtyTrac:
“This will result in some delays in new foreclosures, along with delays in processing foreclosures already in the system,” Sharga said. “But it shouldn’t have any significant effect on foreclosure proceedings in states that do nonjudicial foreclosures such as Texas.
“The most likely scenario is that we’ll see a marginal decrease in overall foreclosure activity during the fourth quarter, followed by accelerated levels of foreclosure filings in the first quarter of 2011,” he said. “From an overall housing market standpoint, there really shouldn’t be any major impact.”
[Thanks John for the tip off. : )]
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It would appear that robo-signing was made legal just last night in a candlelight session of the Senate. Voters are asked going forward to include a sizeable donation to the representative of their choice along with their ballot in order to insure any concerns will be taken under consideration.
No just hoping the tbtf fraudsters would go to jail!!!!!!
An Exchange On Securitized Debt Obligations Between Jim and Yra
Yra Harris:
For that is how Wall Street has truly raped Main Street.
Jim Sinclair:
Yes and think of all the public pensions stuffed with this crap
Jim Sinclair:
The RICO (organized crime) statute in a civil suit is usually used to force a settlement. If the banks lose under RICO they sacrifice ALL their assets.
The key to RICO in a civil suit is to prove a PATTERN. Listen to the video posted today and the pattern screams at you.
The only logical settlement here is to void the foreclosure. Keep in mind this is a class action. It could sign up 100,000 complaints if that is desired by the attorneys.
This suit, if successful, will be repeated all over the US.
http://tinyurl.com/2vzvkqh
All-the-bad-
That’s what it would take would be a little jail time for some of these guys. If we fine them, they’ll just go crying to Uncle Sam for a TBTF bailout. Taxpayers will get stuck with the bill.
I have the full proof method to keep the banks at bay and to house-squat in a bank owned property for as long as you would like…pay the mortgage you contractually agreed to pay! If you don’t like the terms, the house is underwater, you were “duped” by “greedy” banks and the wall street securitization game, then walk away and start over. But please, don’t get mad at the banks, or anyone else for that matter for wanting you out of property that you are unwilling to pay for.