THE MORTGAGE JIHAD
LOS ANGELES (Reuters) - As Los Angeles housing advocates launched a campaign warning of mortgage rescue scams, a couple hit by foreclosure are charged with torturing two loan-modification agents they suspected of fraud, authorities said on Monday.
The couple, Daniel Weston and Mary Ann Parmelee, and three other people are accused of luring their two victims to an office where the men were tied up, held for hours and beaten, a spokeswoman for the Los Angeles County district attorney said.
Police were called after one of the victims managed to escape, said the spokeswoman, Shiara Davila-Morales. The incident occurred on Wednesday in the town of Glendale, just north of Los Angeles.
Weston, Parmelee and the three other defendants each were charged with two counts of torture, two counts of false imprisonment by violence and two counts of second-degree robbery, according to a criminal complaint filed against them.
Weston, 52, and Parmelee, 51, both arrested last week and jailed on $1 million bond, shared a house in the suburb of La Canada-Flintridge that is in foreclosure, authorities said.
"The two allegedly sought loan modification assistance from the victims but believed that nothing was being done and wanted their money back," a statement from the district attorney's office said.
Davila-Morales added that the couple, according to investigators, believed they had been swindled.
http://www.reuters.com/article/newsOne/idUSTRE59Q03Q20091027
Weston and Parmelee held a press conference following their arrest that was only covered by our ACTION NEWS TEAM:
At no time have we perpetrated torture. We were simply using enhanced interrogation techniques on members of a group of people who hate America and all it stands for. A group may I add, that threatens and has threatened the American Dream for tens of millions of people.
This year alone has produced almost two million forclosures in this country:
The Mortgage Bankers Association reports that a record 1 in 7.6 homeowners with a mortgage were either late making a payment or in foreclosure from April to June while delinquencies have expanded to prime loans.The trade group's quarterly National Delinquency Survey reviews 45 million loans that represent 80-85 percent of all outstanding first mortgages. It found that 9.24 percent of all mortgage holders were at least one month late making a payment and 4.3 percent of loans were in foreclosure.
"Florida continues to establish itself as the worst state in the union for mortgage performance, closely followed only by Nevada," said Jay Brinkmann, chief economist at the trade association. In a sign that has troubled many economists, an increasing number of mortgage holders with prime loans - those provided to people with good credit who made down payments - were delinquent.
5.23 percent of prime fixed rate mortgages were delinquent making payments compared with 3.07 percent a year ago. http://abcnews.go.com/Business/mortgage-delinquencies-foreclosures-surge/story?id=8373550
The amount of pain and suffering caused by members of the banking Jihad keeps mounting and it is time to fight back. Fight them here before they run away with their billions to some other country, snickering as they get away with their ill gotten gain.
The economic crisis started with home foreclosures, and the numbers are getting worse: 6,600 new foreclosures a day; one every 13 seconds. (See foreclosures in your state.) Washington needs to understand that helping homeowners is key to helping the entire economy.
To stop the downward spiral, policymakers must stop relying on voluntary actions by lenders. TARP funds should be used to reduce home losses and encourage more loan modifications. There's also another effective, tax-free way to stop foreclosures: Congress could allow homeowners to get loan modifications through the courts. http://www.responsiblelending.org/mortgage-lending/tools-resources/national-foreclosure-ticker.html?gclid=CL3j3u6V3p0CFRPyDAodXFK_OA
We have now been arrested on the charge of torture.
But in point of fact we abided by the standards for enhanced interrogation techniques as laid out by George W Bush, Dick Cheney and by his legal staff. As Mr. Bybee put it:
We further conclude that certain acts may be cruel, inhuman, or degrading, but still not produce pain and suffering of the requisite intensity to fall within Section 2340A's proscription against torture. We conclude by examining possible defenses that would negate any claim that certain interrogation methods violate the statute. http://www.tomjoad.org/bybeememo.htm
Did we degrade this enemy of the people? Yes we did and we did it for the greater good.
Were we cruel to a member of the Banking Jihad who threatens this country? Yes we were and we were so for the greater good.
Were we inhumane to this felon who stole everything we have? Yes we were inhumane but not as inhumane as he and his like have been to us and to people like us.
But we did not produce the type of pain and suffering of the requisite intensity to make us torturers under present statutes.
The Banking Jihad must be confronted in this country. It has produced more pain and suffering than
any other terrorist group in the world.
Our Action News Team will follow this story closely and provide updates on these arrests as they are disclosed.
Needs to begin happening. Sooner rather than later.
October 27, 2009 6:45 PM | Reply | Permalink
Maybe there is something in the air Grouch:
http://www.youtube.com/watch?v=2JAXKIKehbc
October 27, 2009 7:11 PM | Reply | Permalink
Where's buddy with the ball bat? A loan modification agent makes a much better target than a printer, and I hear they don't break as sharply.
October 27, 2009 7:04 PM | Reply | Permalink
I think baseball bats may cross Bybee's line of demarcation as they say:
http://www.youtube.com/watch?v=Zc9zF8G2Pvc
Now a cricket bat.......torture is in the eyes of the beholder.
October 27, 2009 7:13 PM | Reply | Permalink
Whack them on the head with a good-sized phone book. Leaves no (visible) marks.
Repeat as necessary.
October 27, 2009 7:39 PM | Reply | Permalink
the yellow book, hahahahaha
October 27, 2009 7:50 PM | Reply | Permalink
Reduce, reuse recycle. The phone book has other uses, not that many oeople even use them anymore for naything more then a door stop.
October 28, 2009 2:54 PM | Reply | Permalink
I am amused that Reuters refers to Glendale, CA, as a "town". Wikipedia lists Glendale's January 1, 2009, population at: 207,303. I wonder how big a community must be for Reuters to consider it a city.
October 27, 2009 7:59 PM | Reply | Permalink
Jesus (blesses himself) PCA, I wikied SD yesterday for my epic....Pierre is the capital city of South Dakota. 14,000 residents...ha!
Everything is relative I guess. hahahaha
October 27, 2009 8:21 PM | Reply | Permalink
i've got no relative named Pierre...
October 27, 2009 8:23 PM | Reply | Permalink
WITH LIBERTY AND JUSTICE FOR ALL?
Yeah right, liberty and justice for ALL
Take taxpayer dollars and give those dollars to greedy Federal Reserve Bankers and their friends.
Of Course there must be an arms length transaction, because of possible conflict of interest considerations.
Does Goldman Sacs receive special privileges for helping the Federal Reserve?
A Federal Reserve giving millions to the bankers, then because of having printed so many dollars, raising interest rates in order to reign in inflation.The next round of profits higher interest rates for mortgages?
So lets think about this: Go to the Fed window, borrow at 0%. Or TARP money, charge 8 % percent from the very workers or should I say taxpayers, asked to back the 0 % loans given by the Feds so generously. Did these TARP entities have to fill out a gift letter?
Then Bernanke can cry inflation, inflation, giving the banks the cover to say we must charge more than 8% because of inflation you know.
Is it not the Government’s duties to also protect WE THE PEOPLE, in order to promote domestic tranquility?
Instead we think the Bill of rights protects us from UNREASONABLE seizures by the Government, but instead; the Government allows a proxy Quasi Government to do the seizures to take away our freedom, our liberty in the pursuit of happiness BLAH, BLAH BLAH.
So Pledge Allegiance to the Republic for which it stands; no longer stands for what it claims to stand for. Kicking your families to the curb, stealing every asset owned by foolish people who have now become enslaved to a corrupt financial system.
All under the eyes of those entrusted to protect us, the very entity demanding allegiance.Why should they recieve.
And all this time you thought you’re Government was really going to protect you from enemies from within? HAH
Fourth Amendment – Protection from unreasonable search and seizure. The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated.
Unreasonable, greedy, self serving just a few adectives to describe our slave masters, our enemies within.
Against All Enemies, Foreign and Domestic.
Is there a difference between a madman blowing up your house taking away your use of it, or a banker taking away your house so you can't use it?
I guess we’ll get no support from our military, to intervene in behalf of the people against domestic enemies, or a military intervention, since our troops have been exported out of the country, locked up in Iraq and Afghanistan; while the domestic enemy solidifies his grab for power. Raiding the Treasury, stealing from the citizens
.
Welcome to the New American colony. Open for business, a land of opportunity ready to be exploited.
While the greedy Capitalist screams “Look over there, Al-Qaeda wants to destroy America”, and while your looking over there, they’re stealing us blind.
If the peasantry should rebel, we’ll institute the draft, that’ll keep dissent to a minimum.
Like taking candy from a baby.
http://www.ronpaul.com/2009-02-16/against-all-enemies-foreign-and-domestic/
http://www.usconstitution.net/consttop_pre.html
To promote domestic tranquility, to defend against domestic enemies
What we are seeing in this financial crisis is how a domestic enemy destroys America.
How this domestic enemy disrupts domestic tranquility.
We are seeing how our Government has failed in its duties to protect
Is a domestic enemy the same as a foreign sympathizer? Or is a domestic enemy someone who works against the best interest of the citizens of the US?
Greedy bankers hoarding money intended to modify mortgages in order to promote the general welfare of the people, are these domestic enemies?
October 27, 2009 8:22 PM | Reply | Permalink
Hey REsistance, I hereby render unto you the Dayly Line of the Day Award for this here TPMCafe Site, given to all of you from all of me for this here gem:
October 27, 2009 8:45 PM | Reply | Permalink
I am presently trying to sell one of my homes to one of my family members
Since the day I bought it for my parents, all the family has tried to move in to it except I promised my mother and father they could live there in perpetuity.
My mother is nearing death because of the Insurance death panel.
Now that I want my father to move in with me, I’d sell it to the family member because we know the house, it’s been well kept and maintained. No hidden damages as expected in a buyer beware market. .
But oh No! The banks won't allow it
You wouldn't believe the hoops I have to jump through.
Since it's a family member I have to sell it for 85% loan to value/of appraised value.
Leaving 15 % on the table for the bank
But of course family members buying homes from another family member can't receive the $8,000.00 first time homebuyer tax credit.
My family member must buy a complete strangers house to qualify for the benefit.
Never mind that if the economy tanks and I am required to help my family member stay in the house in case of worsening employment opportunities.
Never mind that I can’t gift my children in order for them to buy the strangers home unless I sell this house my parents lived in.
How can I help anyone in my family, if my own financial situation worsens because now I have to find a stranger to buy the house, yet the pool of first time buyers who can qualify are very low.
So either sell it for a loss, to a stranger, or let it go back to the bank. Who’ll cry to the “Government Help us”
So from my perspective, it’s the old Hooray for me, the banker immediately getting 15% equity and F.U. homeowner.
All because the banks are concerned, about fraud?
The most fraudulent group of people on the planet and their worried about me, while they go to the public trough for a handout, expecting me to pick up the tab in the future as I watch with fear a collapse of the housing market and the inflationary period coming because of the enormity of the handout to the bankers.
The bastards will kick you when you’re down.
Yet my Government say’s I must pay higher interest in the future, because I just had to let our Government save their arses, while they could give a crap about me or anyone else. Watching as they steal our homes, writing off the losses against they’re record profits.
Steal our homes, get a deduction because of the losses, get TARP money and make record profits.
Bastards
October 27, 2009 9:53 PM | Reply | Permalink
They are swine, Resistance. Evil swine.
October 27, 2009 10:19 PM | Reply | Permalink
Flower, we give pigs a bad name, sometimes. hahahaha
October 27, 2009 11:27 PM | Reply | Permalink
Really great comments. Resistance, your story needs a bigger audience. Put the two together and post it.
Thank you for sharing this very personal as well as political insights here.
This entire behavior on the part of the government and the commercial banks is pure thievery, felonious graft.
October 27, 2009 10:57 PM | Reply | Permalink
I don't have your skill to put the two together.
I think it would appear too juvenile, the ranting of a lunatic.
What kind of tutoring did you receive from seashell?
On another note; frustrated by my Government trying to rip me off, along with their cook the book friends, the bankers.
I am deeply troubled that no one can reign in the abuse by the insurance middlemen, in life and death matters, in end of life decisions
Years ago my mother was prescribed a particular antibiotic.
I remember the day the medical care center approached me about the cost.
As I expressed concern that I would fight any attempts to change the script.
Later told everything worked out just fine.
Only now the infection is going to take my mothers life.
Now they're telling me they're trying everything they can, but my mother is losing the battle. They are now giving her the widest spectrum antibiotic. NOW they’re doing it?
I believe my mother is losing the battle because they did not want to pay for the expensive antibiotic. They substituted their own opinion for the opinion of an expert in infections. Is that a death Panel?
Members of the care facility telling me my mother lasted beyond what the consensus was.
Is consensus taking, a panel maneuver? Go before the judge and backed up by the consensus takers mutual admiration society. Decide my mother should just go quietly.
The drugs will keep her comfortably numb.
I believe they changed the antibiotic and it failed to keep the infection in check.
When I contacted an Attorney, I was told there was nothing I could do, EXCEPT after her death, I might be able to charge them with neglect.
AFTER THE FACT, after her death?
My wife say's let it go.
Rest in Peace Mom, I tried
Just another brick in the wall?
Quiet desperation is taking its toll.
To hear the my Government tell me “ I’m with the Government, I’m here to help.”
Don’t tell me about "Ask not what your country can do for you, but ask what you can do for your country.
Obama’s new theme: Volunteer to help each other, because your Government only wants to take the credit, without lifting a finger to help.
Volunteering has now replaced Government for the people? Now IS THAT change you can believe in, or change you’ll learn to despise?
My Country is good; it’s my Government I fear has put enmity in place of love.
Loyalty and trust are earned.
My Government has lost my trust; they’ll have to force me to love them.
Start another war, draft the loveless ones and hope to eliminate the witnesses, the accusers.
Time to start a new batch? Indoctrinate the next generation; because they totally screwed my Generation?
Now Pledge Allegiance kids.
Disclaimer to Government agents: I’m too old to take up arms against you, but my passivity and lukewarm love for you, is what you should have feared. I hope there's no law against feelings?
Do we have camps in America to readjust thinking or is that the next Government program.
Maybe Glenn Beck and those like him are right?
God help us.
I hope you'll forgive me DD
It's only the rantings of a lunatic.
Rest in Peace mom, rest in peace America
October 28, 2009 4:31 AM | Reply | Permalink
You are no lunatic. THE LUNATICS RUN THIS ASYLUM CALLED AMERICA.
As a side note, Seashell sent me the computer I am working on right now after my old pc crashed forever. TPMCafe, or many from this site got together and gave of their money and time to see that I could still blog here.
Seashell added hardware and software to an older frame (newer than my old one of course) and has, on several occasions, worked with me. That is, she comes into my computer while we chat on the phone for hours.
I could spend an hour talking about this mess with you though. I mean death panels set up by insurance companies (as well as hospitals) have always been with us.
Again REsistance, my only worry is that others will not be able to read your comments or even know they exist although this blog stays open till tomorrow evening.
Just cut and paste the damn things onto your own blog.
YOU DO NOT THINK THAT THERE ARE SCORES OF PEOPLE AT THIS SITE THAT DO NOT RELISH RANTS. HA
The only time I get 100 or more comments is when I let it all out.
October 28, 2009 5:36 AM | Reply | Permalink
While I am as pissed off as you are about the leverage banks have over us, might I suggest a rent to own arrangement, if that is acceptable to your situation?
Loan to Value?!?! Perfect. How about they restructure all their loans toa reasonable loan value since the market tanked and they never had more then 20% of the actual money on the table anyway?!?
Why does the bank get to decide the "value" anyway?
October 28, 2009 2:58 PM | Reply | Permalink
Yes--and downthread, "The most fraudulent group of people on the planet and they're worried about me?"
October 28, 2009 2:50 AM | Reply | Permalink
This is a GREAT post, dd, and very well edited too, I might add. Extra bonuses for the title.
Cheezeburgers for you! (You do like cheezeburgers, don't you?)
October 28, 2009 12:58 AM | Reply | Permalink
oh for sure I do. I used to like Belushi tooooo! ha
These sure look a lot better because of your tutoring. When I think back, you sure had a lot of patience. And it takes time for an old dog like me to 'get it'.
Thank you so much for your help.
October 28, 2009 1:07 AM | Reply | Permalink
Frustrated? Wanna to engage a display of public disaffection?
Try this: http://tpmcafe.talkingpointsmemo.com/talk/blogs/kfreed/2009/10/credit-card-confetti-priceless.php
October 28, 2009 3:33 AM | Reply | Permalink
Wow, that was messed up - please excuse. Meant to say, "Wanna engage in a display of public disaffection?" At least one that doesn't involve beating anyone.
Sorry, D.D.
http://tpmcafe.talkingpointsmemo.com/talk/blogs/kfreed/2009/10/credit-card-confetti-priceless.php
October 28, 2009 3:44 AM | Reply | Permalink
Obama's mortgage relief programs are a joke, as the increased pace of foreclosures is showing. So far, Obama's domestic policies are pointlessly complex failures. The attempt to enact public policy through the private sector is a stupid idea. If you want people to stay in their homes, rewrite their loans. If you want them to have jobs, hire them. If you want them to have health insurance, give them Medicare. If you want small businesses to have access to capital, lend them money.
The idea that the private sector can be manipulated into implementing public policy is a wste of time, money, and energy. Unemployment has increased from 7.8 to 9.8 percent under Obama. And to say it would have been worse without him isn't much to run on. If he doesn't get his shit together, he'll be out in 2012, and deservedly so. He has a fewmore months to turn things around. If unemployment is this high next August, the Republicans will make big gains in Congress, block everything for the net two years and we'll have President Huckabee or Palin or Pawlenty in 2013. Don't kid yourself. The clock is ticking on Jimmy Carter II.
October 28, 2009 4:51 AM | Reply | Permalink
I cannot disagree with this assessment at all. This Administration, whatever its laudable intent is attempting to work 'within the system'.
FUCK THE SYSTEM IT DOES NOT WORK
October 28, 2009 5:20 AM | Reply | Permalink
D.D.: You might be interested in this.
The Showdown in Chicago:
http://www.huffingtonpost.com/tag/showdown-in-chicago
More: http://michaelmoore.com/
October 28, 2009 4:56 AM | Reply | Permalink
First, your blog is superb. Well documented and researched. I left a comment after I recommended it of course.
four thousand workers on the street. What is to happen to their mortgages by the by?
This is an emergency situation just as if two million abodes in this year alone were burned in prairie fires.
October 28, 2009 5:15 AM | Reply | Permalink
Thanks D.D. - the good news is that the 4,000 workers fought back and won their company back, thus retaining their jobs.
The solution is to stop taking this crap lying down. I'm feeling more and more positive as time goes by - coverage of "The Chicago Showdown" put me in a particularly good mood this early morning.
October 28, 2009 5:51 AM | Reply | Permalink
I just love it when I see an established standard applied evenly across all applicable jurisdictions and to all affected persons just as the law requires. To be sure I've no doubt this will end with the vigorous enforcement of a double standard. However, that will not come without having caught the attention of citizens all across this country and perhaps open their eyes to the gross inequities currently being practiced by all governmental bodies throughout the land. This is a simmering pot slowly coming to a fierce boil. It can't happen soon enough. Turn up the flame!!!
October 28, 2009 6:07 AM | Reply | Permalink
Who knows TPC? Maybe I am wrong and there is enough animosity among the electorate out there to produce real change.
But we need more than just Cuomo and the lady from Mass. We need thousands of them descending upon these predators with every legal trick in the book.
And, we need a comprehensive regulatory scheme to replace what we have watching over Wall Street and the Banks.
October 28, 2009 6:53 AM | Reply | Permalink
Why don't we just buy up the front page of the WSJ and NYT for a week and convince everyone who is interested in doing something good for themsleves and for the country. Ask them to not pay their credit card bill for two or three months. Tell them exactly why that is a good business strategy. i.e. It'll keep you and the entire country from being fucked. That might get the message into the thick skulls of congress and Wall Street. How's that for a comprehensive replacement regulatory scheme?
October 28, 2009 8:54 AM | Reply | Permalink
I'm late to the game, as usual, Dick. I'd really like you to explain to some of us non-J.D.'s what the hell is going on in the mortgage market.
Have you followed this stuff about judges nixing foreclosures and even nullifying mortgage debt because lenders lack the requisite paperwork to show they have a right to the property? Basically it looks like a huge chunk of all the mortgages originated between 2004 and 2007 were illegal. Basically, if borrowers can get decent legal representation, their debt can get wiped out, or at least pressure lenders hard to modify. Or so it looks to my innocent eyes. What the hell is this?!
A couple of links:
http://www.counterpunch.org/martens10212009.html
http://www.nytimes.com/2009/10/25/business/economy/25gret.html
If you do something on it, it might help some readers facing mortgage difficulties. Just a thought...
October 28, 2009 10:51 AM | Reply | Permalink
I know it would probably trigger Götterdämmerung (or - for you Baptists watching at home - the arrival of the Fourth Horseman of the Financial Apocalypse), but those links made me laugh like hell. Who wouldn't love the sheer joy of seeing millions of homeowners, sweating in fear as the vulture banks lay in wait, but then, right at the moment of seizure, the SUPER-JUDGE steps in and says to the owners - IT'S A NEW HOUSE! FREE! SCREW YOU, VAMPIRE BANKERS! And yeah yeah, I'm sure a lot of the owners were greedhead, undeserving pricks, but still... you gotta hate bankers more.
I also liked Martens' quote here, on the staggering distance between all that horseshit talk about our need to boost productivity and cut costs to focus on international competition that the business sector threw at us, and then how none of it seemed to apply to the insane rush into housing ---
"Trillions of dollars of bundled home mortgage loans and derivative side bets tied to those loans were being manufactured by Wall Street without any one asking the basic question: why is all this capital being invested in a dormant structure? Houses don’t think and innovate. Houses don’t spawn new technologies, patents, new industries. Houses don’t create the jobs of tomorrow."
October 28, 2009 12:45 PM | Reply | Permalink
First, this should give us all some pause:
Most people who are undergoing foreclosure, do not have money for the services of an attorney.
Second, you might find that there are foreclosure calendars so that a judge might be stuck listening to these pro forma hearings all week with only one voice being heard, the attorney for the bank.
Once in a while an attorney for the downtrodden might show up and demonstrate a real flaw in the paperwork. Maybe six owners under foreclosure find a brother in law to review the docs.
Now a judge, who is stuck on one of these foreclosure calendars begins to take a closer look at the paper work.
You need a chain of title. I own the house and I wish to sell it. To sell it in fee simple to an eager buyer. But I have to demonstrate that I own the damn thing. So attorneys draft Title Opinions and Title Insurance is purchased in addition to the opinion.
Now, at closing, I have to demonstrate that I have paid off the mortgage still owing on the property.
And a mortgage deed you see has initially been transferred by me to the bank besides execution of the note. Now if the mortgage deed has been transferred in a chain of ten different transactions while I owned the property, that chain of title must be demonstrated beyond any reasonable doubt.
If it has been lost there is going to have to be a clear title action for the real property. And, although I signed the note and I owe the money...but to whom? That money might have to go into escrow until it has all been 'sorted out'.
Further, I might even be entitled to simply erase the lien on the real property.
AGain, I signed the note and I owe the money but the note may no longer be secured by the real estate.
These are fun things that happen when greed bastards who are national in perspective ignore local 'customs' as it were.
ANd if the goddamn note and its terms violate some public policy (local laws), a court might just say:
hey, you not only lose the security for the loan, I am throwing out the entire debt.
hahahahahaha
This is just a sloppy memo Obey, but think of it this way.
Some big railroad in the 19th century might be defending against a suit brought by an injured employee. And the big ass attorney comes in to learn the judge a thing or two.
But the local aw shucks attorney by the name of Abe Lincoln has the judge and jury in his pocket and the RR is fucked. hahahaha
SOMETIMES THE GOOD GUYS WIN.
October 28, 2009 5:03 PM | Reply | Permalink
Thanks a lot Dick. You lose me at a couple of points - title opinion and insurance...?... jeezus I just sign whatever the lawyer tells me to sign.
But seriously, it looks like this kind of sloppy paper work, the kind that can pose real problems for lenders, has happened pretty widely. And people facing foreclosure or late fees or prepayment fees or whatever should be pretty willing to call the lender's bluff. But, I guess that requires understanding your own contractual rights, etc.
for one thing, it looks like the paper trail for these highly traded mortgages would be pretty weak. Does a lender has to be able to document the paper-trail in full before he sells the house? If so, all these securitized non-agency loans are fucked. So we're talking a few trillion in debt wiped out? (Okay, that's the extreme scenario, but still.)
Anyway, need more Abe Lincolns meseems...
October 28, 2009 5:29 PM | Reply | Permalink
Mmmm, either Erica or Matyra did one last week about it, I think. Or both. If they check into this diary, maybe they can point out their diaries.
October 28, 2009 5:29 PM | Reply | Permalink
I saw Erica's on her own mortgage mod story. But this is different. It's about the strange fact that, often apparently, YOU DON'T OWE THE LENDER ANY MONEY. - your debt can be outright wiped out.
Maybe I've missed some other blogs on this though...
October 28, 2009 5:41 PM | Reply | Permalink
Dear Sir or Madam,
Bill Moyers had a piece on this very subject when he interviewed Simon Johnson and Rep. Marcy Kaptur
http://www.pbs.org/moyers/journal/10092009/profile.html.
In addition Congresswoman Kaptur gave a speech on the floor of the House in which she said '... foreclosed owners should squat in their homes..."
http://www.progressohio.org/page/community/post/daveharding/C2gB.
Hope these links are of some use.
October 28, 2009 6:10 PM | Reply | Permalink
Thanks for those. Here's a nicely detailed analysis of what seems to be going on.
http://www.calculatedriskblog.com/2009/10/in-re-olga-of-bankruptcy-and.html
It looks like lenders mostly have trouble establishing standing in bankruptcy court and much less so in foreclosure proceedings. In the former they have a high risk of simply getting the loan wiped out if they lack the requisite paperwork.
This kind of news should nudge lenders towards a more amicable attitude when negotiating mortgage mods, and somewhat makes up for the legislation regarding mods in bankruptcy court that failed in the spring.
Anyway, interesting stuff...
October 29, 2009 4:42 AM | Reply | Permalink