foreclosure gate is catching up to the banks

The Foreclosure Survival Guide: Keep Your House or Walk Away With Money in Your Pocket

Great research done over at foreclsouredefensenationwide.com. They are digging deeper into the underhanded tactics of the large Wall Street banks.



This is from http://foreclosuredefensenationwide.com/?p=299



“A sample of what our researchers are finding: loans which were assigned to multiple tranches within one securitized mortgage loan trust; the assignment of the loan to different trusts; the division of the loan into parts across tranches, and more. What this means to foreclosure defense discovery is nothing short of monumental.

If a loan is assigned to different tranches and/or different trusts, with each tranche or trust having its own series of credit enhancements and insurances, this means the possibility of multiple levels of insurance for the same loan, which goes to prove what we have been arguing for years: that upon securitization, the mortgage loans were insured with multiple layers of insurance so that when the loan went into default, those in the placement chain could reap untold profits by having the same risk paid over and over and over again through multiple claims or reserves. Anyone who read through the SEC v. Goldman Sachs lawsuit knows this.

As such, any foreclosure defense should now hammer, hard, on ALL available credit enhancements, insurances, tranche assignments, and all agreements relating thereto. We will make a prediction here: that very soon, there are going to be a series of cases where it is revealed, in discovery, that mortgage loans were paid 2, 3, 4, or more times on default and that the foreclosing party is simply trying to get paid a 5th or more time by stealing the borrower’s house under false pretenses and with material omissions and improper objections as to discovery related to setoffs (which objections we predict will be overruled once the judiciary is educated as to these matters).”

Finally evidence comes out revealing what was obviously going on within the banking system. I couldn’t believe the government was giving so much money to the banks while they were collecting on their insurance. Two years ago I complained about the banks trying to get paid two 3 and four times over for the same mortgage. Multiple parties were being paid on insurance claims, then the fed paid them off again and in the case of bank takeovers, the purchasing banks was once again getting control (or so they say) control of the assets of the failing bank at pennies on the dollar. In turn the new mortgage holder is attempting to collect again by claiming they are owed the full amount of the original mortgage or they will repo property. It is crazy. We all paid the banks insurance claims as tax payers to the likes of Goldman sacks, bank of America, along with others.

The Foreclosure Survival Guide: Keep Your House or Walk Away With Money in Your Pocket

It is any wonder the system was collapsing when the big banks were trying to suck 4 or 5 times the amount of return on a mortgage that was above and beyond the typical interest payments? For what?



It was for a few big paychecks and the distinction of knowing the banking system collapsed the real estate industry for many years.



They acted with reckless arrogance and extreme disregard for future outcomes. They continue to act with arrogance and bravado as they try to blame the few foreclosures that occurred as the nuclear bomb that devastated the housing industry.



How convenient that they forget it was their system of multiple payouts and securitization, excess issuance of insurance that far exceeded their capital, and acceptance of inflated appraisals, that was the root cause of the crisis. Don’t forget that there has been over 90% and typically over 95% of all mortgages continue to get paid and remain current.
Anyone who can honestly say that 5 % or less of foreclosures could be responsible for the meltdown of the entire housing market is greatly uninformed or extremely delusional. But this would go right along with the delusional politicians and government that is allowing the banking system rule the country.