Courts, borrowers and lawyers are in for a mucky dip in the MUD. And the only ones who will make a clean get away are the lawyers. The Foreclosure Folly mess is ripe for lawyerly enrichment to the max.
A number of large lenders have suspended foreclosure proceedings in 25 states, and that number is growing. It seems like the lenders have hired "Robo Signers" to execute foreclosure paperwork, they were so anxious to get their hands on your house. Now wouldn't you think that the banks would have enough sense to hire people who actually know what a Promissory Note is, or what a Mortgagee is, or what a Notary is? But no, the banks hired construction workers, food service workers, hospitality service workers, and many others who had zero, zippo experience in the financial industry. They hired these people to "Robo" sign documents to facilitate foreclosure proceedings against homeowners, gave them little or no training and put them behind a desk with the POWER OF KEEPING A ROOF OVER YOUR HEAD IN THEIR HANDS.
There has been sworn testimony by some of the "Robo" signers that they signed many thousands of documents per month, submitting affidavits that confirmed the accuracy of the information in those documents, but that they had in fact not verified any of the information. Basically their job was lickety split and full speed ahead with foreclosures.
Now for a look at the bigger picture. What were bank regulators doing while mischief and mayhem were in full swing? And while the biggest lenders in the U. S. routinely filed false foreclosure documents in courthouses throughout the country? Well, in the case of one large bank it turns out that the FDIC (Federal Deposit Insurance Corp) was running the scam. This explains why the banking industry got away with such grievous misbehaviour for so long. The government was doing it too, even though the government was charged with preventing just such a romp in the pigpen sludge.
For years the leaders of the Federal Reserve have been assuring the public that there were on site examiners/regulators at all of the country's largest banks. But the regulators did nothing to stop the abuse. Were they clueless? Or did they allow it to go on to keep the foreclosure slaughter house open?
And to think Obama/Congress just gave the banking regulators, including the FDIC, even more authority under the Dodd-Frank Financial Reform Act. Seems like the more the government fails, the more power they grab. And the more power they grab, the bigger the failure.
The bottom line? The housing market will crash and burn even worse than it already has. Market values of homes? Watch for the prices to sink even lower as soon as all the forestalled foreclosures flood the market all at the same time.
Thanks, Washington, for taking such good care of an industry you bailed out and own part of.
Such a touchy, feely, hopey and changey job you have done at the expense of Americans everywhere, and Obama said he was going to clean up Washington.
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