This foreclosure "issue" is Step 2 in the TARP bailout.

[kentuck]

The first step was to stablize the bank assets. That was the $700 billion that Bush and Paulson requested from Congress and the American taxpayers. Half of that went straight to the banks and then they decided it was not to be used on "troubled assets" as orignally promised. There were no other questions asked about that money. The other half, $350 billion dollars, was handed off to the new Administration when they came into office.

The problem was that the banks did not know where the assets were? They had been bundled into securities and changed hands several times. So what could they do??

They developed a plan to "foreclose" on these homes and to do it in such a way where they would not be legally entangled. That is why they wanted the out-of-state notarizations. That would shut off the legal questions that individual states might have had.

Unfortunately, the Attorney-Generals in 23 states filed suit. There were legal questions involved. Did the banks actually have the deeds and documents they were foreclosing upon? Did they put a larger price on the value of the homes than what the owners actually owed? Did they actually have bank officials look at the documents or were they signed by machines??

The agreement seems to have been that if the banks could validate those mortgages "foreclosable", then Fannie and Freddie and the American taxpayers would re-imburse them for the amount owed on the mortgages or the market value. All they needed was the presentation of the documents. This is where they are at the moment. The banks want the taxpayers to bail them out once again.

[ixion]

1. Step One: enrich the banks; Step Two: feign concern; Step Three: Profit!

Mission accomplished.

[kentuck]

2. The problem is:

They are stuck with all these foreclosed homes but they don't have the proof of ownership? They sold them in bundled securities all around the world.

So they can get no money from us, the taxpayers, unless they can show the documents. That is why they wanted to set up out of state from the homes they are foreclosing on. It is a fraud.

The only thing left for the government to do, and to protect the homeowner, is to take over the foreclosure process from the banks. The banks will have to bite the bullet. The taxpayers will not bail them out again. The assets will belong to us, the taxpayers - not the banks, if we have to foreclose on the homes.

[hendo]

7. Yup, mortgage fraud is the new thing. All the cool kids are doing it. NT

[ixion]

8. very doubtful that will happen...

There will be much harumphing and stogie chewing, and faux outrage, and then they'll all go out for a snifter of brandy and have a good laugh, before going back to milking the taxpayer.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x4573098

[Romulox]

3. The President is Looking Forward!™ nt

[hendo]

6. Looking forward to kicking more people out of thier homes

without valid reasons.

[notadmblnd]

4. I heard one of the talking heads on MSNBC say the White House is against a moritorium

[hendo]

5. Odd how that works, eh.

FYI, here is a link: http://www.reuters.com/article/idUSN1217744420101012

The White House on Tuesday rejected calls for a broad moratorium on home foreclosures, saying it feared such a step could harm the U.S. housing market and hinder a housing recovery.

"There are a series of unintended consequences to a broader moratorium," White House spokesman Robert Gibbs told reporters.
Yeah, serious consequences like people keeping their homes. They can take this response and shove it. We the people own those houses now, not the banks! Greedy bastards.

[kentuck]

9. That's the right approach.

Most of the banks cannot show the legal documents to foreclose. Those that have them must show a reason. This permits legal foreclosures from being slipped in with the fraudulent ones. Nothing wrong that I see?

[EFerrari]

10. Both are going forward at the moment.

That is wrong. And no, the banks won't police themselves. If they take a property illegally, the homeowner has no recourse whatsoever unless they have a rich uncle who will pay for their lawyer to sue Chase or whoever. And, they likely won't win.

[kentuck]

11. I have no doubts but that the banks wish to rip us off again.

The moratorium is the only thing preventing it.

[hendo]

12. Yup, sorry my quote was mixed in with my response at the end

I kind of wonder why there wasn't a stipulation on TARP that it had to go towards paying off toxic assets. Theoretically then the government should own the houses in question, or rather, the tax payers should. Any payments on the loans then should go back to the federal government.

[Junkdrawer]

13. K&R - Sure does look like they're preparing for a new phase.... n/t