Posted on by Neil Garfield

COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary

EDITOR’S NOTE: I am tired of reading about how economists express surprise at the sluggish economy. The same goes for when they express hope at slightest uptick in any index that is followed, none of which are real representations of economic activity. As the recent New York Times Editorial stated, as housing goes, so goes the economy. Housing is corrupted by the ongoing fraud being perpetrated by Wall Street. We have fraudulent loans compounded by fraudulent foreclosures, covered over with the appearance of having modification and short-sale programs that fall short of any reasonable expectations. We have a synthetic inventory of homes for sale or in the pipeline that are said to be owned by the banks but legally are still owned by the homeowners who were victims of fraudulent lending, fraudulent foreclosures, fraudulent auctions and other violations of statutory and common law.

The solution lies in housing and being honest about it, going on the facts and getting rid of ideology that creates the myth of a false moral dilemma. Pull back the curtain, let the facts roll in and apply existing law. Stop assuming that the obligation is in default just because some third party comes in and says so. Stop assuming that the obligation still exists.

  • Stop assuming that the payments weren’t being made to the investor -lender even as the forecloser declared a default.
  • Just because the homeowner-borrower didn’t make a payment doesn’t mean the payment was due and doesn’t mean that the payment was not received by the creditor.
  • Stop assuming that the foreclosure paperwork is just a snafu and take it for what it is — intentional fabrication and forgery in support of a fraudulent scheme for the banks to get a free house damaging both the investors who put up money and the borrowers who put up their homes.
  • And stop assuming that just because a bank shows up through counsel that they are entitled to buy the property at auction without paying any money and without being the actual creditor; their credit bid is a nullity.

Stop throwing people out of their homes without any evidence that it is legally right and proper to do so. And restore people to their homes with whatever equity is left in the home after Wall Street has trashed the housing market and took down the economy with it. You want an economic recovery? Give the homes back to their real owners and make any would-be forecloser prove their case with real evidence. You’ll end up with virtually no foreclosures and an economy in which the middle class wealth has been restored to the tune of trillions of dollars, without a penny coming out of the treasury from taxpayer money. Now that is a stimulus I can live with.

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