Explanation Of Foreclosuregate – The Foreclosure Scandal Explained

Gonzalo Lira breaks down this epic fraudulent disaster from top to bottom and explains why all the major commercial banks are screwed:

I swear to God Almighty: Mortgage Backed Securities are America’s Herpes—the gift that keeps on oozing.

Last Friday, Bank of America announced that it was suspending all foreclosure proceedings, presumably until further notice. Other banks have already suspended foreclosures in a whole truckload of states. A nationwide moratorium on foreclosures might soon happen—which would be a big deal:Global Financial Crisis, Part II—Longer, Wider and Uncut.

But the mainstream media—surprise-surprise—has downplayed the whole shebang. They’re throwing terms out there into the ether, but devoid of context or explanation: “Robo-signings”, “foreclosure mills”, forged signatures, “double booking”, MERS—it’s confusing as all get-out.

So the mainstream media just mentions it casually—“and in other news tonight . . .”—like it’s no big deal: A couple-three lines, lots of complicated, unfamiliar terms, an attitude like it’s a brouhaha overpaperwork of all things!—and then zappo-presto-change-o!: They’re showing video footage of a cute koala nursing in the arms of a San Diego zookeeper.

But even the koalas know that something awful is heading America’s way. Smart little critters, they’re heading for the treetops, to get away from this mess.

So what the hell is going on with the God forsaken mortgage mess in the United States?

It’s got a lot of bells and whistles, but it’s basically quite simple: It’s all about the #ing Mortgage Backed Securities (MBS). Again.

So this is what happened, more or less—the short version:

I highly recommend reading the full article. It explains everything you need to know about what occured and just how big a deal this really is.

This is going to bring down all the major banking institutions.

Lira points out:

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 Therefore, legally, the mortgage note is no longer valid.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.

Read that last sentence again, please. Don’t worry, I’ll wait.

You read it again? Good: Now you see the can of worms that’s opening up.

This is what I am addressing in this thread that tells people how to check if their bank actually has the note to their mortgage.

If the bank can not produce the note showing a complete chain of title ownership, a person can then sue the bank to have their mortgage debt discharged.

Everyone who owns a home should investigate if their bank actually holds the note to their mortgage with a complete chain of title.

reply to post by mnemeth1


Makes me kind of sad I didn't get into a nice rizy tizty home mortgage and join in the ranks of full home ownership like a lot of Americans did.... I guess I just don't like taking huge risks like living beyond my means....eh well with my luck I would have been one of the first round of foreclosures before all this came to light anyway, so, anyway, I am glad for the people who will be keeping their homes but what does this do for those already foreclosed on and SOL????

Originally posted by ldyserenity
reply to post by mnemeth1

 

Makes me kind of sad I didn't get into a nice rizy tizty home mortgage and join in the ranks of full home ownership like a lot of Americans did.... I guess I just don't like taking huge risks like living beyond my means....eh well with my luck I would have been one of the first round of foreclosures before all this came to light anyway

, so, anyway, I am glad for the people who will be keeping their homes but what does this do for those already foreclosed on and SOL????

They can sue to reclaim title.

If the bank did not have a valid title when they foreclosed, then the people who were foreclosed on can sue to regain ownership of the home. - EVEN IF SOMEONE ELSE ALREADY BOUGHT IT.

reply to post by mnemeth1


Good news then, I wish I had taken some risks now, ah well, I would rather do things the right way, or the path of least resistance, so I am waiting until this all boils over and the prices go wayyyy down and then purchase my home (I own now but it's a mobile home, blah). Somehow I think this will be good for all of us.

Title issues are very stickly. However that's why you do a title search before buying a home. So that there is a clear chain of title. Same thing goes for title insurance. You get insured that if there is a problem with the title you don't lose your investment.

Sad part here is those that didn't get title insurance or do their due dilegence to insure a clear title.

The banks also open themselves up for prosecution because they are basically defrauding people by saying there is a clear title where there is not.

That will be a fun class action to watch.

Originally posted by mnemeth1
If the bank can not produce the note showing a complete chain of title ownership, a person can then sue the bank to have their mortgage debt discharged.

Everyone who owns a home should investigate if their bank actually holds the note to their mortgage with a complete chain of title.

Logically this is correct but only in lala land would banks, trustees, and mortgage backed security holders lose their investment.

In the real world, banks get away with fraud. What is most likely going to happen is there will be some sort of class action against the banks, a slap on the wrist punishment, and a fat bailout to cancel any losses to the bigger and more politically connected banks.

Even if debts get discharged for millions of borrowers, the banks won' take those losses, and there will be a fat bailout waiting for them. The losers won't be the banks or their shareholders. The losers will be renters or the more responsible people who never got into this mess in the first place. The banks will get bailed out, the people who bought more than they can afford will get bailed out, everyone else will be paying.