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Why Most Home Foreclosures Are Illegal

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Photo courtesy of Jeffery Turner/Flickr

The following article was written and provided by Fred Carl.

Recent headlines stated that the Big New York Banks will set aside billions of dollars to settle the federal complaints that banks ‘wrongfully foreclosed’ on homeowners. The heading should read ‘illegally foreclosed’.

The Wall Street Journal stated banks ‘wrongfully foreclosed’ on homeowners who should have been allowed to stay in their homes. Media headlines often omit details such as including opinions rendered by courts.

Massachusetts Judge Keith Long (October 2009) stated “The issues in this case are not merely problems with paperwork or a matter of dotting i’s and crossing t’s. Instead they lie at the heart of the protections given to homeowners and borrowers by the Massachusetts legislature.” He found that the Courts have revealed the possibility that unlawful foreclosures, dating back to 1989, might be invalidated and that buyers of foreclosed properties and short sales may have clouded titles.

Ohio U.S. District Judge Christopher Boyko (October 2007) dismissed 14 foreclosure actions and delivered a strong admonishment “- – where financial institutions have traditionally controlled, and still control, the foreclosure process…There is no doubt that every decision made by a financial institution in the foreclosure is driven by money.”

To make their trillions, yes trillions of dollars, the banks created a ‘money making scheme’ of packaging and selling bundles of American home mortgages to investors and banks round the world.

They securitized the mortgages by rigging an elaborate system of streamlining the procedure making it easier and faster to bundle the mortgages with an electronic data base called the Mortgage Electronic Registration Systems, referred to as MERS. The operation separates the deed from the promissory note and keeps track of the mortgages.To foreclose however, both the deed and the note must be together.

The banks wanted the mortgages. They didn’t care if some mortgages went bad because the buyers of the bundled mortgages were guaranteed that ‘good’ mortgages would be substituted in the bundle for any that defaulted. So the banks, by enticing buyers to purchase homes with little or no money down, along with no proof of adequate income, (which is considered to be ‘entrapment’ by many), was their way of receiving a steady flow of mortgages.

Shah Gilani, a Capital Wave Strategist, says that it certainly is not news when bankers’ scheme, lie and cheat for bigger bonuses at the expense of anyone that’s in their way. He says the real news is that they caused the ‘Birth of the Housing Bubble’ and that the Fed is a shill for the big banks. Those banks, with the Fed’s help, manipulate politicians, overrun fiscal discipline, and use their limitless powers to increase their obscene profits, and put trillions of dollars into their own pockets.

To add insult to injury, six of those largest banks, the real culprits, had the gall to spit in the faces of the homeowners that they fleeced, by paying themselves bonuses in 2012, totaling nearly $38 billion according to Aaron Task, the Editor-in-Chief of Yahoo Finance. Yes, 38 billion dollars!

For a comparison that may interest (anger) you, Bloomberg stated the annual profits for the S & P 500 Financials Index are expected to approach only $155 billion.

Additional court decisions also show the illegality. California Judge Samuel L. Bufford (October 2008) noted “Given that ‘the debt is the principal thing and the mortgage an accessory,’ the Supreme Court reasoned that as a corollary, ‘the mortgage can have no separate existence. An assignment of the note carries the mortgage with it, while an assignment of the latter alone is a nullity.”

Judge Eric S. Rosen of the Kansas Supreme Court (August 2009) likened MERS to a “straw man” and not a party of interest with the right to foreclose.

Judge Linda B. Riegle concluded, “There is no evidence that the named nominee is entitled to enforce the note or that MERS is the agent of the note’s holder.

The Supreme Court of Arkansas (March 2009) found that MERS was not the beneficiary under the deed of trust. So today, many are suing to stop foreclosures or to get their foreclosed homes back. Go to your Clerk and Recorder and get the papers filed on your house. Then look for the acronym ‘MERS’.

Fred Carl

 

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