Petition: California man wants foreclosures deemed unconstitutional

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California man wants foreclosures deemed unconstitutional in the state
by KERRI PANCHUK
Thursday, August 4th, 2011, 7:31 am

A California man is on a mission to end foreclosures across his state, claiming an outright ban on the practice would force banks to help distressed borrowers.

In documents filed with California’s secretary of state, Sacramento resident David Benson said he’s trying to gain enough signatures – 807,615 to be exact – to get his foreclosure ban considered by voters across the state.

Benson wants to amend the California constitution, making homeownership a fundamental right.

His plan would require lenders to assist borrowers unable to pay for their homes due to financial distress and illness.

It also would force lenders to reduce a loan’s principal amount to reflect declines in property value that go beyond 10%.

Benson’s proposal says any “loan issued for and secured by a home or property by any lending institutions, loan servicers, mortgagee, trustees and beneficiaries doing business in the state of California, shall be able to be refinanced without credit review or penalty at minimum cost, within 45 days of being requested.”

That provision would automatically apply if a borrower has maintained the mortgage for at least three years.

Anthony Laura, an attorney at Patton Boggs who reviewed the proposal, said the amendment “would have the opposite effect of diminishing, not enhancing, homeownership in California.”

“While homeownership may be part of what many consider to be the American Dream, I have a hard time conceiving it as a constitutional right. Should this proposed amendment make it on the ballot and ultimately pass, it would only serve to discourage lenders from making mortgage loans in California.”

Laura said without those mortgages, few people could afford homes.

Write to Kerri Panchuk.

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37 Responses

  1. This is what happens when they let stupid out of its cage. I fully understand the frustration that has led to this foolish idea, but this would merely return us to the pre-Great-Depression days when a buyer had to put 50% down to obtain a mortgage; that way, if there is a loss of market value, only the buyer suffers. (I am aware of this only because I had discussions on this subject with my grandparents before they passed many years ago.)

  2. tnharry

    I am looking for you to Cite the authority that allows a bank to loan their credit, prohibited by the US Constitution.

  3. Banks got free money from people. Why, WE THE PEOPLE could have free homes?

    DO NOT BUY ANY FORECLOSED HOMES.

  4. DO NOT BUY foreclosed houses. WE THE PEOPLE help each other as we have the right to own a home in this colonized nation just like the forefathers who arrived and stayed in. In some countries, it is impossible to evict someone who is a resident more than certain number of years and do not have any other home to live. Same must applicable in the USA.

  5. Having to PAY for the “privilege” of living on the planet that you were BORN on…who made ‘them’ the boss?

    radical?

    You better think about it…
    who made them(banksters/politicians/corporate thieves) GOD/the boss/in charge????

    Us?
    Someone else?

    I don’t recall at this moment where I was when I heard that question (why should anyone have to pay to live on the planet they were born on ?)spoken,softly…but I have always KNOWN this….something was never right about all the most elaborate theories/belief systems/political institutions .Despite a lifetime of trying to swallow the lies about hard work(since H.S.) ,education,and ‘saving’ and sacrifice… all noble& good intent…why then do some few manage and billions:starve…anyhow?It’s 2011,people.IS there a”shortage” of ANYTHING truly needed to construct decent homes,grow healthy food,share information…NO.There.Isn’t.Truly Natural crisis does happen AND we have advanced BUT suppressed inventions/technology as well as Ancient Wisdom,ridiculed and scoffed at;that would enable us to have a better way to live.NOT a planned Utopia run by a greedy corrupt government….with profiteering banksters….

    Why should anyone have to pay”them” for the RIGHT to exist on”their” planet?????????

    THINK it over.Throw out all you’ve been told/taught…
    if you dare…

    Other Council Fires were here before ours,other ways exist….

    We can NOT sustain fraud,lies,corruption,endless warring and greed for THAT/”them”…what are”they”?really?

    THINK.

    Yes,I know,the single most fearsome thing from the perspective of “them”….

    aside from our realizing that we can help rather than to harm on another and actually
    giving a damn…for real.

    WE are the ones we’ve been waiting for,perhaps so…

    I agree per the Right to a Home…never forget,we don’t refer to house-lessness,we KNOW we are losing a HOME…..

    Century upon century of feudalism….

    Banksters and shysters and GREED.

    C’mon people,we CAN do other-Wise:)

    Double dare you….

    p.s.)remember that evil,too,can don the mask of law…

    I still believe that the American experiment/attempt toward Liberty was a quantum leap of consciousness,flawed of course as we all are but it was genius with grievous omissions;overlooking the fact that until ALL are free..
    none are…but they DID give us a great starting place,out from under the concept of Kings and aristocracy…then…ahhh,NUTS!!!!!!

  6. to tnharry

    The abominable banking system that is in place today, gives a bank great incentive to foreclose on an Ultra Vires contract, as the bank demands lawful money returned for the unlawful money lent.

    By what Authority are the Banks doing this? There is no authority for doing this. This is in complete prohibition to Art 1 Para 10 Cl1 of our US Constitution.

    All of our cases with slightly different facts all stem from the same Fraud.
    The Bank did not lend you ‘LAWFUL MONEY” but the Bank intentionally wrote
    a “bad check” and gave it to you –to circulate as “money”

    I certainly did not know this kind of fraud wass going on when I signed my mortgage and note. Did you?

    The Mortgagor puts up a down payment, the Mortgagor pays a lot of fees and probably paid an attorney to represent them, all in order to get this “bad check”

    Would a Mortgagor have put in all that money, if one knew the truth of how the Banks ran their illegal business. I bet not.

    Did anyone notify you after that big day – the Bank’s check bounced – of course not. When the check that the Bank wrote came back to the Bank that wrote it, the bank didn’t say “we only have 5% , if that much and it was not stamped “insufficient funds” the bank stamped it “paid”

    So since the Bank did not have the money sitting in the bank’s account when they wrote the check, what the bank gave you is their credit.

    That is exactly what is prohibited by Art. 1 Para 10 Cl 1 of the US Constitution.

    What authority gives the Bank the right to make contracts with “bad checks”

    Nothing- Nada.

    “Lawful money” is needed to make a contract valid.

    Over and Over Mortgagors gave a Bank a mortgage on their castle , in return for a Bank giving you a credit entry on their books and charging you Interest on this credit. Also illegal.

    Did the Bank give you lawful money or is that what you got, credit?

    Banks are not allowed to lend their credit- Banks are in the business to lend
    “lawful money” There is not a Bank charter that allows a Bank to lend their credit.

    And as we continued to make monthly payments the Bank collected more money on their fraud.

    You try writing a check when you don’t have funds sitting in your account to cover it.
    You can be sure that check is coming back marked”insufficient funds” You are not allowed to do it and either is a Bank.

    This scam of Ultra Vire contracts caused injury to us, the true homeowners.

    In addition the banks are laundering “bad checks”.

    The Banks violate Truth in Lending Laws.

    The Banks are collecting Interest on money that doesn’t exist. (Lending you 5% and collecting Interest on 95% of thin air)

    And once the Bank gets their Ultra Vire contract going, they start flipping them to MERS, Securitizations , Wall Street, Title Companies etc. there is no shortage of people all wanting to get their piece of the illegal profits.

  7. Some how I knew someone would go off and say something crazy like that. I know more of the constitution than you think Pat. Believe me you really don’t want to go there. While you have been just writing on blogs and guessing out comes, I was in front of the supreme court on issues and have been very successful in doing do.

    My constitutional law is very well in tuned. For this very line that you say where does it say, is where slavery was freed from, interracial marriages was won from, the right to schooling in the sames schools, gay marriages, and any other “civil” case that has went in front of this land.

    Not knowing this you are lost and you can not find your way out. This document came first before all others. This document is the corner stone and the reason why were are not under British rule.

    You are following the anti federal list papers? If so then you are way off on what you read. For they were against this new form of government in the first place. Also lets go on the anti federalist papers.

    George Clinton (wasn’t really anti since later what he said he hated later he joined to be vice president), Robert Yates (was probably the one of the only that stood by his words and fought against the new form of government), Samuel Bryan (another who knew that this document was not why they fought a war and that this Constitution was only going help the elite) , and Richard Henry Lee (well we should all know about him.)

    These very people are the one that used this document that you keep dodging. Read it again maybe you will understand.

  8. @ian

    “always beware of a profession which requires a change of clothing”

    ——————

    I like that. Sorry ladies, not to be crude or offend anybody,

    But, when naked, all these men have the same dicks and balls and they do not look so powerful. Ie, obama, jamie dimon, timothy geithner, lord frankenstien of Goldman sucks and so on..

    Who knows, maybe they have pencil dicks and peanuts?????????????

  9. cubed2k- Henry David Thoreau said ” always beware of a person who charges a fee. Also, “always beware of a profession which requires a change of clothing” . The second one is pertinent these days- If an attorney arrives in court with a $2000 suit and $500 shoes, he gets attention. If he shows up in cutoff shorts and a Tshirt with paint and spackle on it, carrying his papers in a trash bag, what reception do you think he would get? Exactly, it is all appearances. Same as the banksters, they have judicial sentiment on their side based on appearances.

  10. @tnharry,

    oh, it’s not called a tax, it is called a fee or an assessment. Whatever.

    Mind you I am just talking, agreeing with you , not arguing with you, in my last few comments..

  11. @tnharry

    And thus that is the problem with the economy,

    the rules are so complicated and convoluted, nobody knows what is going on, so we have a no game situation. Meaning nobody wants to play the game anymore cuz the rules of play are too complicated.

    What if the game of football had thousands of rules added every year, every year. People would not play anymore, people would not watch anymore, it’s too god damn complicated.

    Thus your tax code, legal codes, laws on the books locally, on and on.

    How many items are we taxed for nowadays to solve a problem? telephone tax, FCC tax, gas tax, toll booth, water tax, housing tax, on and on. Nobody can own anything w/o being taxed for it. Even a god damn dog, got to have a dog license tax.

  12. Tony,

    Obviously you cannot read or have limited ability to comprehend the written word.

    I told you to quote me where the US Constitution or the Bill of Rights says that there is a “right to home ownership”. You did not do that.

    Instead, you quote from the Declaration of Independence. And in the part you quote, nor in any other part, is there a “right to home ownership”

    Then, you call me “unamerican”. FYI, I enlisted in the military, and served my time honorably in the 70″s. I go by the Constitution, and am more of an Anti-Federalist, if anything. (Read the writings of the Anti-Federalists and you will find that they predicted exactly what would happen to the US and its government if the Federalist approach was taken.)

    You do not know or understand the Constitution or the Bill of Rights, if you cannot distinguish between those documents and the Declaration of Independence. I suggest you spend some time taking remedial Civics courses.

  13. @tnharry,

    If everybody was equal, there would be no game. If everybody has equal rights or equal rules, we have a game. The best win. When the rules to the game are changed in favor of those that have money and get it by changing the rules for their benefit, we have a no game situation. We have a problem HUSTON. When the rules are made so complicated that the maker of rules don’t even know the rules anymore, we have a problem.

  14. @tnharry:

    “let’s start a petition to say transportation is a right. everyone should have a mercedes. and maybe a personal jet too.
    this kind of nonsense moves the cause backward, not forward. or maybe communism is what some of your would prefer”

    I agree tnharry with your statement. You are correct.

  15. Check it out:

    http://www.huffingtonpost.com/2011/08/11/jpmorgan-chase-repurchases-soldiers-home-iraq_n_924557.html

    Jamie Dimon (and all Chase fraudsters), should be hung by his ….. for foreclosing on military people when they aren’t even REAL MORTGAGES!!! G** damn him!!!! Tell the Effing TRUTH!!! PIGS!!! ALL OF THEM!!!

  16. IF the courts understood the fraud and forgery TBTF banks perpetrated AND understood the PSA violations committed by the parties who made these documents, AND, IF the Rule of LAW applied to Banks as well as Taxpayers, and IF BANKS were FORCED to PAY Honest Restitution for the damages of the war on our economy, THEN our economy could be on its way to healing. BUT as it stands each homeowner has to go to court and fight for their families homes. This court battle will not be settled for years to come. Those who buy foreclosed homes stand to hear a knock on their door for the pending lawsuit by the former homeowner.

    Every law the banks have broken they have tried to manipulate the law, create a new law, or just ignore the law, pay off regulators with favors or money or promises and etc. Homeowners MUST do whatever they can to fight. Banks do not want folks to own their own homes nor do they want any of us to have discretionary cash. Banks are selling debt and only debt and they want us as their slaves, but they also want us as their customers. I hope they all come crashing down in one big heap.

  17. Declaration of Independence
    IN CONGRESS, JULY 4, 1776
    The unanimous Declaration of the thirteen united States of America

    “We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. — That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, — That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.”

    So now Pat you have it now read it, I’m sure that part is in there.

    What the person in California is doing is correct and if you don’t believe it is then you are unAmerican and are bankAmerican.

  18. Good response Tony!!!

    tony, on August 11, 2011 at 9:35 am said:

    All houses are the same , and we do live in government housing. You are just trying to act like government housing is where the so called poor people live.

    FHA loan is government housing, VA loans= government housing. Conventional loans are given with government over site which means yes we are in government housing. The best part is that government is suppose to be ran by the people and for the people. Not by the bankers for the bankers.

    What the so called elite want is that private companies rule United States and there is no government. Since they can’t have no government then they want less government over site. I mean you can not get any better example than this whole housing crisis to see that.

    Now they want a bailout from it. If no one want to give a free house then why is it ok for banks to get free bailout of debts? if the saying is “we all have to work hard” then sometimes hard work still brings failure. So we should of let the banks failed and move on.

    Instead we bailed out banks then tell the public nothing for you though, sorry we don’t get involved in private matters.

  19. I’m in California and I’ll be happy to sign it. If the banksters don’t get their way they will always whine that the sky is falling and there will be no more lending and tanks on the streets and all kinds of other BS. Screw the banksters.

  20. I still monitor this website, and for this one article, I will comment since I am in CA.

    Benson will get the 800k signatures for getting the initiative on the ballot,unless the lenders are able to block the initiative. He will get the signatures because the initiative process in CA is a joke. it is always possible to get a Californian to sign any petition. Hell, they never even read it, if it sounds good when the person passing the petition around makes it sound okay.

    Prior to the election, this will be a major pr battle, with the lender spending load of money to get it voted down. There will be less money spent on the pro initiative side, but the money will still be considerable.

    The initiative will likely pass because of the vase amount of underwater homeowners, the numbers who have been foreclosed upon, and the general hatred for banks.

    But that only begins the real battle. It will be fought in the courts, with arguments that it would violate the Contract’s Clause of the US Constitution. Furthermore, there maybe issues of Federal Preemption involved.

    During the time that the case is going through the different courts, the same thing will happen as to what happened in the early 1990′s when the Insurance Industry suffered a similar initiative. The ability to obtain insurance was severely restricted, with many insurance companies abandoning CA until the initiative issue was finally settled.

    Lenders will cease lending until the case is settled. In the event that the initiative is upheld, lenders will require large down payments to counter the future potential for “underwater” loans. Most people will not be able to make the down payment, so they will be declined.
    In short order, another round of homes decreasing in value will occur.

    As to those who claim home ownership is a “right”, I am looking at my copy of the Constitution and the Bill of Rights and cannot find it anywhere. Please direct me to where that right is granted. I must read it for myself.

  21. All houses are the same , and we do live in government housing. You are just trying to act like government housing is where the so called poor people live.

    FHA loan is government housing, VA loans= government housing. Conventional loans are given with government over site which means yes we are in government housing. The best part is that government is suppose to be ran by the people and for the people. Not by the bankers for the bankers.

    What the so called elite want is that private companies rule United States and there is no government. Since they can’t have no government then they want less government over site. I mean you can not get any better example than this whole housing crisis to see that.

    Now they want a bailout from it. If no one want to give a free house then why is it ok for banks to get free bailout of debts? if the saying is “we all have to work hard” then sometimes hard work still brings failure. So we should of let the banks failed and move on.

    Instead we bailed out banks then tell the public nothing for you though, sorry we don’t get involved in private matters.

  22. is the answer really that since we all have a right to housing that we all then live in government housing? that’s the logical conclusion of that line of thought. because if it’s a common right, then your house can’t be better than my house, so all the houses need to be the same.

  23. For one tnharry dose not know economics. The builder was given a medium of exchange not cash. The medium is a FRN, just like if I gave the builder some sheep for a house. The medium of exchange is sheep.

    The unjust enrichment is something was given unjustly. If he court says you owe 30,000 for the unjust you’re still only getting a medium of exchange not any real dollars. The law was made to take a medium, of exchange and that you can not redeem the medium.

    There was a story awhile back of a paper clip that was traded on craigslist. That paper clip was traded so much that it got someone a house and a lot more things. The paper clip was the medium and it was able to be traded for bigger and bigger things.

  24. A right of transportation is a right. No one said that you need a Benz to travel. For one a Benz is a brand not a car.

  25. @marilyn – that’s a nonsensical theory going back to the freemen/sovereign man camps

  26. @tnharry

    I am on my way to having my computer repaired.
    I will have it back Saturday or Sunday and I will give you the answer.

    Meanwhile you look for the law that says a Bank is allowed to create their own money.

  27. @tnharry

    I worked hard my whole life without any complaints.

    I lived the life I wanted till the damm crooked debt collector attorneys Mullooly Jeffrey Rooney & Flynn prepertarated a foreclosure scam by hiding four mortgage checks.

    I started as a one man army fighting the fraud that went on between the banks, the court ,the title companies etc.

    Now this army is big.and we have power and we will fight back against the banks, the courts, the title companies that stole or are trying to steal possession of our properties.

  28. let’s start a petition to say transportation is a right. everyone should have a mercedes. and maybe a personal jet too.

    this kind of nonsense moves the cause backward, not forward. or maybe communism is what some of your would prefer

  29. @marilyn – show me one time that argument has actually worked. there was real money. if you bought your house from a prior owner, they were paid real money. if you bought your house from a builder, there was real money changing hands. it starts to make more sense from the standpoint of refinances, but for initial purchases, that doesn’t work.

    and for the advancement of the argument, what if the contract is void? then unjust enrichment would operate to create a quasi-contract. you got the house, after all. you can’t deny that there was consideration and performance

  30. Home ownership is a right it is not a gift. For the banks do not provide us a way to get a house they, are only a middle man always wanting something for free. I mean no one would argue that banks create money out of think air.

    So if they create money then you are not lending money. I am just telling you to use my medium of exchange. Oh and it doesn’t hurt to have the government to give you its blessing.

    What we need is just people to say enough of using me and living off the fat of the land. What I really get from the writer is that he is tired of hearing that he has no rights period.

    This country is not based on work hard and one day you can live good like us. For if it was people would of never left England to come over to N America. They knew that saying might sound good but, in reality they were looking at a glass ceiling. They were never going to reach what England said you could reach.

    I mean lets be honest when they left England and tried to do it the “American way” , they got lazy, thus slavery was introduced in the colonies. We have always been a lazy I want it quickly state of being. That its why this “only buy a house you could afford” is bull crap. People you can’t afford it if you got a loan in any amount.

    Housing is not a right people say? (and I don’t mean renting) Why is then the first thing you look for no matter where you are at is shelter?There is nothing on this earth that does not look for shelter. While the making of this bill might not pass, it still brings into light what real passion is. Passion to be free from a group of blood thirsty bankers wanting things for free.

  31. that California man got it right.

    Forelosures are illegal since the original loan documents are ultra vires contracts.

    If John Gotti made an illegal contract with you cause he gave nothing but counterfeit money as his part of the bargain, that contract in every court would be null and void.

    So too when a Bank does the same illegal thing.
    What law is there that allows a bank to creat their own form of money completely prohibited by Article 1 Para 10 Cl of the Constitution and write a contract on this fake money.

    tnharry what law is there?. There is none.

    How about all the states getting organized and getting signatures and putting it on the ballot.

  32. I though this is a serious website. Posting this type of none sense is down right stupid and reflects negatively on you

  33. why promote ridiculous proposals by giving them publicity on this site? there is no right to home ownership. the quote could not be more accurate – this proposal would decrease home ownership because no mortgage companies would do business in CA ever again

  34. WHEN the govenment is not helping the people to modify mortgages, it is time, WE THE PEOPLE help each other to solve this problem. First, DO NOT BUY FORECLOSED HOMES. Secondly, make foreclosure as illegal because some banks seem to be getting the owners out of their homes and bulldozing them. This is disheartening.

    WE THE PEOPLE MUST NOW ACT.

  35. This would be a disaster , no lender would dare operate in the state , we don’t need a ban on redress , we need fair courts. If this were enacted the pool of buyers would be cut by a huge amount , to the “cash only” crowd , prices would crash (may be a good thing to bring California back in line with the rest of the country) …

  36. Too bad there is no mention of the theft of the down payment and in many cases, built up equity. That is something that EVERYBODY can relate to.

    So much time is spent by the media focusing on the 25% of homeowners who are upside on their home mortgage, but there is another 50% of homeowners who do have home equity in their home and who one day could lose it if they first lose their job.

    Add in if they are taking care of a family member and the time when they most need to tap home equity could be the time used to foreclose on them instead and just take the home equity instead.

  37. Too bad there is no mention of the theft of the down payment and in many cases, built up equity. That is something that EVERYBODY can relate to.

    So much time is spent by the media focusing on the 25% of homeowners who are upside on their home mortgage, but there is another 50% of homeowners who do have home equity in their home and who one day could lose it if they first lose their job.

    Add in if they are taking care of a family member and the time when they most need to tap home equity could be the time used to foreclose on them instead and just take the home equity instead.

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