Wow, if these cheerleaders are saying this then it must even be worse. Foreclosure Fraud: It's Worse Than You Think http://finance.yahoo.com/news/Forec...VyZWY-?x=0&sec=topStories&pos=4&asset=&ccode= There has been plenty of pontificating over the ramifications of foreclosure freezes on troubled borrowers, foreclosure buyers and the larger housing market, not to mention lawsuits, investor losses and bank write downs. There has been precious little talk of what the real legal issues are behind the robosigning scandal. Yes, you can't/shouldn't sign documents you never read, but that's just the tip of the iceberg. The real issue is ownership of these loans and who has the right to foreclose. By the way, despite various comments from the Obama administration, foreclosures are governed by state law. There is no real federal jurisdiction. A source of mine pointed me to a recent conference call Citigroup (NYSE: c) had with investors/clients. It featured Adam Levitin, a Georgetown University Law professor who specializes in, among many other financial regulatory issues, mortgage finance. Levitin says the documentation problems involved in the mortgage mess have the potential "to cloud title on not just foreclosed mortgages but on performing mortgages."
Free houses for all! What really worries me is that it's understood that laws were broken and fraud was committed. Will they change the laws just because it is SO pervasive? (i.e. will the tail wag the dog?)
forget about the foreclosure mess, the whole real estate market is upside down, that's what happens when greed takes over, if anything I think its hilarious whats going on with this news, its all a bunch of fraud, from the fucking greedy banks and dirty scumbag lenders.
To make matters worse borrowers can submit fraudulent pay off notes issued by defunct mortgage processors signed by phantom employees and tie the lender up until they reincarnate these long gone companies for trial. It literally would cost the lenders $250K in legal fees plus risk of sanctions and having to disgorge all amounts previously collected. Seems like an ideal time for an offshore document services business to come on the scene and provide title search and clearing services to distressed home owners.
Just more evidence of the "we'll do ANYTHING to inflate assets" mentality that is the fabric of policy makers. The fear mongering surrounding any sort of mean reversion in housing prices is constantly beaten over our collective heads to justify more insane policies and more intense fraud just to try and maintain the status quo...and yet it still isn't enough. So we will be left with languishing real estate prices and a completely debauched currency to boot.