- This ForeclosureGate is alot bigger than the corporate MSM make it out to be. Only Dylan Ratigan at CNBC seem to be closer to the truth. The truth is massive fraud has occurred. The banksters are guilty of it. All the MBS, CDOs …. mortgage-backed derivatives are likely fraudulent. We are talking about trillions of dollars. For Mr Joe Public, this is the perfect opportunity to fight back against Illuminist banksters ’raping’ his family and children.
- The Illuminist bankster owned US government does not work for Joe Public. It should be obvious to all by now. The amount of monies given to the banksters can pay for all outstanding residential mortgages many times over. Think about that! Do not expect Uncle Sam to be your friend in this!
- For all those still paying mortgages, you need to check that the company you are paying to own the title-deed. Otherwise, you may end up not owning the house even when you have fully paid up. If they cannot show you or proof they own the title-deed, you should not continue paying for the house. They do not have the legal right to collect the mortgage, it amounts to fraud.
U.S. Housing Market Foreclosure-gate Doomsday Revolution Erupts
Foreclosure-gate is heating up and the mad scramble for what’s left of $45 trillion in real estate is guaranteed to leave homeowners homeless, pension funds unable to pay their pensions and even some of the biggest banks insolvent. A great housing goat rodeo was created when some of the 65 million mortgages on U.S. homes didn’t follow proper legal procedures;
- Fraud by homeowners who lied on their loan applications
- Fraud by banks who didn’t follow proper legal procedures around the notarization and processing of mortgage documents
- Fraud by investment banks who packaged this junk and resold it to unsuspecting pension funds
- Pension funds promised returns to their pensioners they could never achieve
In the old days, that would be pre-1980′s, banks and savings and loans actually knew their customers and wrote and maintained loans on property themselves. ….. In the 1980′s, financial geniuses came up with a new product, a way for the investment banks to make money from a market they couldn’t previously tap into in a big way — the home lending business. As you can imagine, it’s a huge market, in the trillions, and the way they approached this market was to convince the originating banks, those who process and write the loans, that they could get more access to cheaper money. This would let them write more loans, generate more fees and make more money by reselling the mortgage. It also eliminated a lot of the risk of the loan, since it was almost immediately resold. But buying an individual mortgage of several hundred thousand dollars wouldn’t make sense for the large investors with billions to invest or the investment banks, so they packaged them together in bundles of millions of dollars worth of mortgages.
One problem they had to solve was that many funds have rules on the quality of investment they could invest in; some funds can only invest in AA rated investments or better, others may have more flexibility. The investment banks then carved up these large packages of mortgages into tranches based on the pecking order of who got paid back first and they rated them based on credit score. As an example, the first 20% repaid would be rated AAA, then next 20% might be rated BB and so on. Each tranche represented a claim on the cashflow of the mortgages. The mortgages were supposedly scrutinized and the packaging was complete — it was called a Mortgage Backed Security (MBS). ……
Today, there are almost $9 trillion worth of mortgage related securities. Everyone got in a lather when the housing market completely tanked because the value of the MBS plunged.
The ugly reality of the foreclosure market
There’s another very important wrinkle to this story. When the banks resold the mortgages, they didn’t just send the paper work to the next bank after George Bailey signed it over to the Cleveland Teacher’s Pension Fund. It went into REMICs (the Real Estate Mortgage Investment Conduit). This special entity was set up for tax and accounting reasons and as a vehicle to hold these loans for tax purposes. If a mortgage defaulted, they would need to match the mortgage with the MBS tranche we described above, so they created a system called MERS (the Mortgage Electronic Registration System), which was jointly owned by Fannie Mae and Freddie Mac). This from Doug Ross Journal, a B4IN contributor:
“The purpose of MERS was to help in the securitization process. Basically, MERS directed defaulting mortgages to the appropriate tranches of mortgage bonds… legally [however]…andthis is the important part…MERS didn’t hold any mortgage notes: the true owner of the mortgage notes should have been the REMICs.
“But the REMICs didn’t own the notes either, because of a fluke of the ratings agencies: the REMICs had to be ‘bankruptcy remote,’ in order to get the precious ratings needed to peddle mortgage-backed Securities to institutional investors.
“So somewhere between the REMICs and MERS, the chain of title was broken.
“Now, what does ‘broken chain of title’ mean? Simple: when a homebuyer signs a mortgage, the key document is the note. As I said before, it’s the actual IOU. In order for the mortgage note to be sold or transferred to someone else (and therefore turned into a mortgage-backed security), this document has to be physically endorsed to the next person. All of these signatures on the note are called the ‘chain of title.’
“You can endorse the note as many times as you please…but you have to have a clear chain of title right on the actual note: I sold the note to Moe, who sold it to Larry, who sold it to Curly, and all our notarized signatures are actually, physically, on the note, one after the other.
“If for whatever reason any of these signatures is skipped, then the chain of title is said to be broken. Therefore, legally, the mortgage note is no longer valid. That is, the person who took out the mortgage loan to pay for the house no longer owes the loan, because he no longer knows whom to pay.
“To repeat: if the chain of title of the note is broken, then the borrower no longer owes any money on the loan.
Foreclosures can only be done by the note-holder, who has the legal standing to show up in court and ask the judge to foreclose and evict. In about half the states, they have to bring the ORIGINAL (not a photocopy or electronic version) document with “wet signature”, so the judge can see the actual ink on paper. They have to prove the chain of title and that they own the note they intend to foreclose on.
BECAUSE IF THE CHAIN OF TITLE OF THE NOTE IS BROKEN, THEY WON’T BE ABLE TO FORECLOSE.
Once the people going into foreclosure figure this out, they will stop paying and hire lawyers. Some will keep their homes for free.
Once the people who have been paying their mortgages figure out they might not need to pay, they will stop paying.
Once the lawyers figure this out, they are going to be busy for the next five years helping people sue the banks.
Once the shareholders of the bank stocks figure this out, they will sell the shares.
Once the pension funds figure this out, they will also sue the banks and return their now junk MBS.
Once real estate buyers figure this out, they will stop buying anything with the potential for a tainted chain of title. The foreclosures will stop selling (many already have).
Even the sheriff is figuring this out. What happens when the sheriff refuses to do the foreclosure?
The sheriff for Cook County, Illinois, which includes the city of Chicago, said on Tuesday he will not enforce foreclosure evictions for Bank of America Corp, JPMorgan Chase and Co. and GMAC Mortgage/Ally Financial until they prove those foreclosures were handled “properly and legally.”
“I can’t possibly be expected to evict people from their homes when the banks themselves can’t say for sure everything was done properly,” Dart said in the statement.
“I need some kind of assurance that we aren’t evicting families based on fraudulent behavior by the banks. Until that happens, I can’t in good conscience keep carrying out evictions involving these banks,” he added.
Now that the sheriff won’t do the foreclosures, will the banks hire Blackwater (Xe) to breakdown the doors and throw the mortgage deadbeats out on the street. Today, almost anything is possible, but they have a bigger problem…the middle class is waking up and realizing that all the laws passed by Congress are essentially written by and to protect the monied interests, at their expense. They are starting to fight back…and take the law into their own hands. More from Doug Ross:
“People still haven’t figured out what all this means. But I’ll tell you: if enough mortgage-paying homeowners realize that they may be able to get out of their mortgage loans and keep their houses, scott-free? That’s basically a license to halt payments right now, thank you. That’s basically a license to tell the banks to take a hike.
“What are the banks going to do…try to foreclose and then evict you? Show me the paper, Mr. Banker, will be all you need to say.
“This is a major, major crisis. The Lehman bankruptcy could be a spring rain compared to this hurricane. And if this isn’t handled right…and handled right quick, in the next couple of weeks at the outside…this crisis could also spell the end of the mortgage business altogether. Of banking altogether. Hell, of civil society. What do you think happens in a country when the citizens realize they don’t need to pay their debts?”
“Nobody in this country knows for sure who owns any real estate, residential or commercial.” This is just the beginning. Expect to see more people take the law into their own hands and uncertainty of title causing massive damage to the real estate market, the banks and anyone else with their fingers in this tainted pot.
Satanic World War 3 Plan:
“The Third World War must be fomented by taking advantage of the differences caused by the “agentur” of the “Illuminati” between the political Zionists and the leaders of Islamic World. The war must be conducted in such a way that Islam (the Moslem Arabic World) and political Zionism (the State of Israel) mutually destroy each other. Meanwhile the other nations, once more divided on this issue will be constrained to fight to the point of complete physical, moral, spiritual and economical exhaustion…We shall unleash the Nihilists and the atheists, and we shall provoke a formidable social cataclysm which in all its horror will show clearly to the nations the effect of absolute atheism, origin of savagery and of the most bloody turmoil.
Then everywhere, the citizens, obliged to defend themselves against the world minority of revolutionaries, will exterminate those destroyers of civilization, and the multitude, disillusioned with Christianity, whose deistic spirits will from that moment be without compass or direction, anxious for an ideal, but without knowing where to render its adoration, will receive the true light through the universal manifestation of the pure doctrine of Lucifer, brought finally out in the public view. This manifestation will result from the general reactionary movement which will follow the destruction of Christianity and atheism, both conquered and exterminated at the same time.” 4
Societal and economics observer and commentator with an endtimes, future history perspective. Follow me at Twitter: socioecohistory
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