By the Lending Lies Team
When will outraged American homeowners revolt against the mega-banks that have stripped their equity, stolen their homes with falsified documents, and compromised their health, happiness, families and futures?
Luckily for the banks, the typical American homeowner is middle-aged, has a family to support, a full-time job and is simply trying to hang on. The American homeowner is an easy target because they don’t have the luxury to protest and revolt. They won’t loot, they don’t shoot and their only weapon is a lawsuit. Therefore, they pose no concern to the banks or government.
Victimized homeowners should be turning out by the millions to demand changes to the entire mortgage and foreclosure industry, and yet, there is a deafening silence. EVERY homeowner in America has been victimized- even if they are not in default.
First of all, homeowners are victimized by being “Tenants” and never own their property- read your Mortgage documents. The right to hold and enjoy property was once a right. Now the government owns your property, and despite what you believe, you only lease your property from the state and federal government.
Second, the majority of homeowners receive a table-funded mortgage and the entity listed on the Note is NOT the true lender. The process of using an originator to obfuscate who the true lender is- creates a situation where the homeowner is prevented from negotiating in good faith with the party who has a vested interest in finding a solution- if there is ever an issue over the life of their loan (and there will always be an issue of some sort even if you make every payment ontime). That is why the Truth in Lending Act states under Regulation Z that table funded loans are predatory per se. If you don’t know WHO you OWE you have no ability to negotiate. Where is the outrage?
Third, every homeowner in America with an outstanding balance is forced to deal with a loan servicer who receives incentives and a potential windfall if they are able to engineer a default. That means that every person who has borrowed on a home has no control who becomes their servicer. Furthermore, it means if you are unfortunate to have a servicer who is known to engage in fraudulent and deceptive servicing tactics – you are at risk of losing your home if one penny is unaccounted for. The servicer has an incentive to misapply payments, hold payments in suspense accounts, claim your insurance lapsed and provide disinformation to FORCE you into a situation that will result in you losing your home. Where is the outrage?
Every homeowner in America is vulnerable because we are alive. The act of living invariably creates situations beyond our control that happen in the blink of an eye. A bank should not be able to use a life crisis to steal a home and all of the equity in the home. A mortgage is an unconscionable adhesion contract where the bank holds all of the power and control, and you have absolutely no say in the terms of the contract. Is it any wonder that you close on a mortgage without being told you are issuing a security that will make investors millions of dollars while you funded the security and received nothing? Where is the outrage?
Servicers wait for a tragedy to occur in which they leverage to their advantage. Job loss, illness, divorce, being deployed, or a personal crisis in where you are late on your mortgage can catapult into a cascade of late fees and charges that you can never get corrected-despite your best efforts. Even when people have the funds to cure any arrearage that exists, it is well known that servicers will often refuse to accept payments or create an accounting so outrageous the homeowner can’t figure out what they owe. This must be changed. The homeowner should be able to control WHO their loan servicer is, and should know at all times who the holder in due course of their mortgage is. This is the law.
Finally, woe to those who ever get behind on their mortgage. The servicer will create an intricate web of fraud meant to deceive and confuse so that most homeowners simply walk away from their homes. A servicer who never spent a dime to purchase the Note will receive a financial reward for their illegal and fraudulent acts. 98% of all people simply walk away from their homes, their equity, and their improvements in the property.
Even when homeowners discover the fraud in their mortgage documents, it is difficult to find and afford a competent attorney who can decipher the convoluted securitization scheme. The homeowner, even when successful in proving that the bank and their minions are committing fraud on the court, often discovers that there is no due-process of law when it comes to foreclosure litigation.
Thousands of homeowners who discovered that the servicer foreclosing on their property did not have standing to do so- were further violated by the judiciary who refused to enforce the law in fear that a homeowner might receive a ‘free house’. Yet it was fine when the bank and their investors received a free house because the judge’s retirement and pension was heavily invested in the bank. Are you starting to become outraged yet?
Eight years into this situation it has become obvious that American homeowners are on their own. The courts will not follow the law. Law enforcement will not enforce the law. Your tax dollars and government protect the banks. You do NOT matter. You provide NO threat.
It is time to paint your pitchforks RED .
The Black Lives Matter effort demonstrates what can be done when those victimized by oppressive forces unite, demand change, and refuse to be silent. Are you ready to organize?
Filed under: foreclosure |