There’s the OUTRAGE: Riverside Man Booby-Traps Foreclosed Home

Here’s how the LA Times, in just a few brief paragraphs, reported the story today:

“A 42-year-old Riverside man has been arrested on suspicion of setting up fake booby traps outside his foreclosed home, authorities said today.

Former homeowner Daniel Gherman was booked on suspicion of attempting to assemble a device designed to cause great bodily injury and on four counts of assembling or possessing a facsimile explosive, officials said. The investigation is ongoing.

A U.S. Bank representative was checking the house Tuesday in the 1400 block of Orange Street when he discovered several explosives outside the structure. Officers from the Riverside Police Department arrived about 2:45 p.m. and confirmed the explosives were made to look like pipe bombs, officials said in a statement.

At least nine homes in the neighborhood were evacuated, police said.”

There’s the “outrage,” AND, I’M AFRAID IT’S ONLY JUST BEGUN

“Former homeowner Daniel Gherman?” Now that’s a way to phrase something, don’t you think? That really encapsulates a man who got so angry, so enraged, so desperate to make a statement, and felt so powerless that he was willing to blow up his house and potentially kill unknown others… children, maybe.

In January of this year, I wrote an article on MSNBC’s Newsvine titled: “Where is the Outrage,” which I have re-published below… because I think it’s important that my readers on ML-Implode see it. It asked the question and offered an answer.

Where is the outrage over what’s being allowed to happen to millions of American homeowners? Why aren’t there people marching in the streets? I mean, here in LA there was marching in the streets over gay marriage being voted down, but millions losing homes… quiet as a church mouse.

I asked the question because I’m a student of human behavior. And I know America and Americans… and we’re not a calm, serene, sit-back-and-take-it kind of people.

But, I answered the question in the article as well. I realized that the reason we hadn’t been seeing the outrage I was expecting was that those losing homes had bought in to the same garbage that the rest of the country had been fed: “It’s the fault of sub-prime borrowers.” These people are ashamed… they’ve been told it’s their fault and they believe it. So, instead of marching in the streets, turning to violence, the unimaginable tragedy that’s being allowed to continue today is being endured quietly.

And God damn anyone who allows that to continue even one more day.

We’ve been fed so much crap about this economic meltdown that I can barely stomach it anymore. It’s not the “fault” of sub-prime” borrowers, and never has been. Did borrowers break the bond market? Did borrowers leverage their trillions in assets forty and more to one? Did borrowers fraudulently construct mortgage backed securities and pass them off as being “triple A” rated bonds? Did borrowers securitize something? How many borrowers issued or purchased credit default swaps?

Borrowers are guilty of wanting to buy homes. Their guilty of listening to so-called “experts” who told them they could qualify for loans that should have never been made in the first place. They’re guilty of not seeing The Great Depression Part 2 around the corner… but so is Henry Paulson… and everyone else on the planet… or did I miss something?

Beyond the borrowers, the next group in the firing-line for the blame game is mortgage brokers. Oh yes, they were the ones that did all those things, huh? They sold what they were told to sell. They did their jobs. What was expected of them. Should they have policed the situation? Yeah… that’s just what we should all expect… that mortgage brokers should police… the banks themselves.

Listen up… I’m done being even slightly politically correct about this… enough! It’s the banks that are responsible for this. Period. And the more time that passes, the more eveyone will come to realize this. And then there’ll be outrage on a scale that will make the 1960s look like a day at the beach.

We have to stop the foreclosure crisis in this country or it will threaten everything that makes up our way of life. It’s not just one of the problems… it’s the only problem. If it’s allowed to continue, it will lead to political instability in our country, and threaten our entire world.

I voted for President Obama because I believed him when he said he’d take the steps needed to solve the housing crisis. He wouldn’t be concerned with politics as usual. He’d bring change to Washington.

And what’s he done? Well, let’s see. Not a God damed thing, that’s what. His homeowner rescue plan is nothing more than more insipid and out-of-touch blathering by a D.C. politician. He’s clearly more concerned with his popularity ratings and the outcome of the 2010 midterm elections than anything else. He went to Europe… visited with foreign dignitaries… fought over bipartisanship nonsense… debated stimulus…

… and adding insult to injury, made speeches telling homeowners that they shouldn’t hire a firm to help them out of the worst nightmare imaginable… ENOUGH!

I don’t think people understand how bad it is… to lose one’s home. Do you? Do you know what that would feel like. To lose something you’ve worked for all of your life? Your family’s security? The place where all of your memories are made? To fail as a provider and protector? To look into the eyes of your children as they pack their things? To think about the day you’ll drive away afraid to turn and look back?

It’s beyond anything I can imagine, short of losing a family member.

Here’s another story that failed to make national news, and there are so many you couldn’t count them all. This article was written by Dan Childs, of ABCNews.com:

July 25th, 2008: Carlene Balderrama, 53, from Taunton, Mass. Killed herself. Note to mortgage company: “By the time you foreclose on my house, I’ll be dead.” According to reports, PHH Mortgage Corporation notified police less than 90 minutes before house was to go on the auction block. By the time police arrived on the scene, she had fatally shot herself with her husband’s rifle. Taunton Police Chief Raymond O’Berg noted: “It has a lot of people talking, because there are a lot of homes in foreclosure here. It’s just a tragedy. Then again, someone told me that these financial stresses are tough.”

She left another suicide note for her husband and son saying take the insurance money and stay in the house.

And that’s all I have to say about that.

Here’s the story I wrote this past January… but is only getting more relevant each day that passes.

WHERE IS THE OUTRAGE?

According to the numbers published this past week by the Washington Post, along with countless others, in 2008 alone there were 2.3 million home foreclosures in the United States. 2.3 million. 2.3 MILLION!

… That’s 191,667 a month. … 44,231 each week. … 6,301 every single day, 365 days a year.

So… where’s the outrage? Yes, I know there are plenty of people railing on about the economy, the bailouts, the credit crisis, the economic stimulus package, and the like, but the whole thing seems far too orderly and calm to me. I’m not kidding here… where is the outrage? Why aren’t there people rioting in the streets? I mean throwing bricks through windows… committing random acts of violence… serious outrage!

There was more outrage over same sex marriage, for heaven’s sake. Same sex marriage? Compared with hundreds of thousands of people losing their homes each month? You’ve got to be kidding. I have a good friend who is gay and even he said he’s much more concerned about losing his home than marrying his boyfriend.

I am basically a peaceful, non-violent person. I’ve never advocated violence as a solution for anything, except in self-defense… or in opposition to an oppressor. But, I feel have to admit something here…

I’ve owned my home for 19 years. For 19 years I’ve made my mortgage payment on time and as agreed. A couple of years ago it was ridiculously appraised at roughly $900,000 (Southern California, remember.) Six months ago, it might have appraised at $700,000. Today, it might appraise for $500,000, I really don’t know.

Let’s say that I refinanced a couple of years ago and had an adjustable rate mortgage of $450,000. And let’s say that my payment was adjusting upward, I couldn’t refinance at a fixed rate, and was now in jeopardy of losing my home. I have to tell you that I would be BEYOND PISSED OFF. WAY BEYOND.

It’s not my fault that Moody’s, Fitch, and Standard & Poors screwed up the secondary mortgage market by slapping “AAA” on anything and everything. It’s not my fault that the real estate market is now in a free fall. It’s not my fault that the banks are in trouble, not my fault that leverage, derivatives and new accounting regulations have exacerbated the losses, and certainly not my fault that nothing has been done to stop the carnage.

And I’M losing MY home? Like hell. I’d be on fire.

First of all, I’d burn my house to the ground before I’d watch the bank foreclose. Think I’m exaggerating? Don’t bet on it. And second of all, if I didn’t have a child I’m responsible for, I’d be loading my shotgun and preparing for a shoot-out at the OK Corral before someone comes and tells me to leave my own home. Someone feel like calling me “irresponsible”? Really? Well, you better duck ’cause I’m not playing. This is my home you’re talking about.

And if I did end up having to vacate my home, I’d make Cindy Sheehan’s protest look like a bake sale on Happy Days. I’d never stop screaming… I’d go after everyone involved in every way imaginable. I’d be a very dangerous person. You would not recognize me. No one would like me. Society’s rules would no longer mean very much in my mind. Jail? I’d already be in jail.

Did you hear about 90 year-old Addie Polk of Akron, Ohio? Shot herself “at least twice in the upper body,” according to CNN. Why? She was being foreclosed on… evicted… losing the 101 year-old home she and her husband bought back in 1970. Here’s the story from CNN.com:

Addie Polk, 90, of Akron, Ohio, became a symbol of the nation’s home mortgage crisis when she was hospitalized after shooting herself at least twice in the upper body Wednesday afternoon as deputies came to remove her from her home, which had been lost to foreclosure. On Friday, Fannie Mae spokesman Brian Faith said the mortgage association had decided to halt action against Polk and sign the property “outright” to her. “We’re going to forgive whatever outstanding balance she had on the loan and give her the house,” Faith said. “Given the circumstances, we think it’s appropriate.”

Don’t you just love that last line? Given the circumstances, we think it’s appropriate? Which circumstances might those be, Brian?

You mean the circumstances in which you guys went after a 90 year-old woman who had lived in her home for some 38 years… foreclosed and sent Sheriff Deputies to evict her? Really? Stunning, truly stunning. Couldn’t work that out any other way, Brian, is that what you’re telling me?

You’re a real horses ass, Brian, you know that? Does your mother know about what you did here? How about your grandmother? Your wife and kids? Because I am so going to tell them. I’m going to tell everyone Brian, you insipid prick. A 90 year-old woman? Were you planning on having her physically removed, Brian? I hope she’s okay, Bri baby… ’cause if she doesn’t make it you are going straight to hell for this for sure, and you better pray that she doesn’t have a son like me, because I have a policy about people that kill my mother and don’t go to jail as a result.

So, now you’re saying that it’s “appropriate” for Fannie Mae to forgive her loan balance entirely? You’re offering to FORGIVE her? Why you sanctimonious sonofab#t@h! You’re going to forgive her? Listen jackass… it sounds to me like you should be begging HER forgiveness, and like some plaintiff’s counsel should be hauling your worthless carcass in front of a jury. Because there’d be a line from Akron, Ohio to Disneyland in California of people willing to line up to get on that jury.

“No sir… no preconceived notions here. Nope, haven’t heard a thing about the case. Of course, foreclosures are the right of lenders when irresponsible people aren’t making their payments.” Then I’d get in there and have but one question: “How much are we allowed to award the plaintiff?”

And that’s far from being the only story of sheer desperation and human tragedy as related to the foreclosure crisis. Take a look at these:

A woman in Tennessee fatally shot herself as sheriff’s deputies were arriving to evict her from her home. The couple had reportedly been granted an extra 10 days to appeal the foreclosure.

In Ocala, Florida, a man set fire to his home, which was in foreclosure, after shooting his wife, his dog, and himself… in that order I believe.

Another woman, who had hidden the foreclosure from her husband until the very end, shot and killed herself, leaving a suicide note and an insurance policy and reportedly faxing a note to the mortgage company, telling them that she would be dead before they foreclosed on the property.

Experts say that the economic crisis is causing chronic anxiety among people who feel that they have no alternatives. These people can sometimes panic or “snap” due to anger and take drastic measures.

Suicide? People are killing themselves over this mess and not taking anyone with them? Amazing. And it still seems like a drop in the bucket compared with 2.3 million foreclosures in 2008 alone, doesn’t it? I figure that each one of those foreclosures had to impact at least two people directly, and I figure those two people each had two close friends or family members. And what about 2007′s foreclosures, which were also in the two million range. So, do the math and there have to be ten million people affected by this… at the very least!

So, where is the outrage? Why aren’t these ten million people absolutely hopping, screaming, fighting mad. It’s a question that has plagued me for at least the last six months now… maybe longer. And 2009 is forecasted to be even worse, as far as foreclosures are concerned… 2010 too! The way things are right now, we’re still going to be dealing with this in 2011.

People… this is a big deal… a really big deal… but everyone who looks at this just goes: “Yes, it sucks. But did you hear Obama’s speech and what’s for dinner?” Really? Where is the outrage? What have we become… an exceptionally mature and accepting society? Like hell we have.

Then, just the other day, the answer came to me. I can’t be sure, of course, so I wanted to run it by you guys… you know, the readers of this article. Here’s what I think is happening:

The reason no one is screaming bloody murder as a result of losing their homes is that they’ve bought into the idea that our economic crisis is THEIR fault. They heard talking heads on television asserting that everything is the fault of sub-prime borrowers and they bought it… hook, lie and stinker… the sub-prime borrower LIE.

And so they’re deeply ASHAMED. They don’t want to tell anyone what they’ve done. They should be calling for the heads of those that allowed this mess to grow into the meltdown of the global banking system. Instead, they’re thinking it’s their own fault and they’re killing themselves as a result, for God’s sake.

How do they even know they’re sub-prime borrowers? I can’t tell if I’m a sub-prime borrower. I checked every single page in my package of mortgage paperwork and nowhere does it say sub-prime or prime borrower. How would I know? Or should I simply assume that every adjustable rate mortgage is sub-prime, because if that’s the case, I’ve never heard that before.

And is the problem one of sub-prime borrowers going forward? I know that sub-prime borrowers were the first to default as the situation unfolded, but is that what’s happening now?

The Washington Post conducted a study of the situation this past week, and here’s what they had to say:

One oft-repeated assertion no longer holds true. Those in trouble are not, primarily, lower-income borrowers. The foreclosure crisis has become a wave, afflicting neighborhoods of every stripe.

The Washington Post analysis of available data shows that the foreclosure crisis knows no class or income boundaries. Many borrowers ensnared in the evolving mortgage mess do not fit neatly into the stereotypes that surfaced by early 2007 when delinquency rates shot up. They don’t have sub-prime loans, the lending industry’s jargon for the higher-rate mortgages made to borrowers with shaky credit or without enough cash for a down payment.

In October 2008, for the first time, the number of prime mortgages in delinquency exceeded the sub-prime loans in danger of default, according to The Post’s analysis.

The foreclosure crisis hasn’t played itself out. The next wave looms in the form of a new batch of adjustable-rate mortgages scheduled to reset over the next two years. Unless the market comes back with a roar, which is unlikely, more borrowers will struggle to hang on to their homes.

Yet here we are… turn on the television and you can still catch an ignorant, uniformed stuffed suit blathering on about how irresponsible sub-prime borrowers should not be “bailed out”. I heard one guy claiming that loans were being made to people that didn’t even speak English. Didn’t even speak English? Oh my God. I bet he’s not happy that loans were being made to brown people either.

Doesn’t everyone realize that what’s happening is going to impact everyone… you too. The water is rising. Are you planning on waiting until it’s lapping at your nipples before you start to wonder why no one has bothered to stick a finger in the proverbial dyke?

Here’s just a smidgeon of what AP has reported over the last couple of months:

Across the country, authorities are becoming concerned that the nation’s financial woes could turn increasingly violent, and they are urging people to get help. In some places, mental-health hot lines are jammed, counseling services are in high demand and domestic-violence shelters are full.

“The financial stress builds up to the point the person feels they can’t go on, and the person believes their family is better off dead than left without a financial support,” said Kristen Rand, legislative director of the Washington D.C.-based Violence Policy Center.

Dr. Edward Charlesworth, a clinical psychologist in Houston, said the current crisis is breeding a sense of chronic anxiety among people who feel helpless and panic-stricken, as well as angry that their government has let them down. “They feel like in this great society that we live in we should have more protection for the individuals rather than just the corporation,” he said.

“I’ve had a number of people say that this is the thing most reminiscent of 9/11 that’s happened here since then,” said the Rev. Canon Ann Malonee, vicar at Trinity Church in the heart of New York’s financial district. “It’s that sense of having the rug pulled out from under them.”

With nowhere else to turn, many people are calling suicide-prevention hotlines. The Samaritans of New York have seen calls rise more than 16 percent in the past year, many of them money-related. The Switchboard of Miami has recorded more than 500 foreclosure-related calls this year.

“A lot of people are telling us they are losing everything. They’re losing their homes, they’re going into foreclosure, they’ve lost their jobs,” said Virginia Cervasio, executive director of a suicide resource center in southwest Florida’s Lee County.

Something has to be done here. Someone has to tell the people losing their homes that it’s not their fault… that they’re not bad people because they’ve been caught up in the worst economic catastrophe since the Great Depression.

So, they took out an adjustable rate mortgage? So what? In most countries that’s all they have are adjustable rate mortgages. I don’t remember anyone telling me that the adjustable rate mortgage I was taking would also be the last mortgage I’d qualify for in my lifetime. No one said anything about that… no one mentioned the word “sub-prime”.

Maybe if they knew… they’d feel better… maybe they wouldn’t be shooting themselves from shame.

Maybe the millions who have been left high and dry, abandoned while Wall St. bankers plan luxury sales conferences and ludicrous bonus deals, would rise up and say that they’re not buying it anymore… that they now know that it’s not their fault. That they’re mad as hell and not going to take it anymore. Hell, maybe they’d all vote against those that turned a cold and blind eye to their heartbreaking and traumatic losses.

Maybe everyone… you and I… will come to their aid and support their cause, because we will all come to realize that, there but for the grace of God go us all. It would do us all some good to remember that we are our brother’s keepers.

After all… who would Jesus foreclose on?

PLEASE… SHARE YOUR STORY WITH ME. YOU CAN PUT IT HERE, OR YOU CAN SEND ME AN EMAIL. I WANT TO KNOW. YOU’LL BE ANONYMOUS. PLEASE TELL ME WHAT’S REALLY ON YOUR MIND.

BECAUSE IT IS NOT YOUR FAULT. IT’S THEIRS.

Comments

  1. Kelli K says

    I appreciate the passion.

    But who exactly did this guy think would get hurt by his pipebomb? Jamie Dimon? Lloyd Blankfein? Timmy Geithner?

    We have to make our voices heard, not hurt innocent people.

    That said, I'm ready to step out of the shadows. I honestly don't feel a bit of shame and am telling friends and neighbors that we are potentially starting down the path to foreclosure.

    We've lost a ton of money. Lost income. Lost our mortgage lender to BK. Now there's no one for us to even negotiate a loan mod with! How's that for irony? You'd think, no lender, no one to come after you, right?

    We tried to put our house on the market last week but were told we'd have to pay close to six figures to get out. Could do a short sale but...no lender! Also, I'll be damned if I'll take the hit to my FICO AND pay money when I can live in my house rent for at least a year. Are people really that stupid?

    I have prepared a loan mod proposal for our new master, whenever they show up. We stopped paying this month to demonstrate our "seriousness." Still don't know if that was the right move. Don't really care, though.

    The trick is to realize that once you have nothing to lose you actually acquire some bit of power. That is to say, if we are willing to head to foreclosure, our lender will lose about 60K in payments, PLUS the house would come onto the market at possibly the lowest point in recorded RE history (spring 2010). It might not smell or look so good either, if you get my drift. It is over 100 years old. Keeping it upright is a never-ending sh*t-show. When you have a future in the place you don't mind so much. But if it is going to the bank...well, let's just say you're less likely to man the shopvac in your leaky basement next time it starts to flood.

    With the jumbo market dead, our servicer would be mega-foolish to NOT deal with us. But I'm not banking on it. We have ten years spotless record of paying mortgage on time and in full. We have income, just not as much as before.

    But if we don't get a substantial write-down in principal we are through. I think that is the message we have to get through to people in my shoes. Demand a write-down in principal. If you don't get it, go to the wall and walk away proud. Take down the cabinets and sell them on ebay. I'll draw the line at anything more drastic. I think the lenders will get the point.

    But I'd like to know what others think. Is there any stomach out there for political action?

  2. mattfoley says

    Are you serious? I'm sure there wasn't a single borrower out there who colluded with the broker to buy a house they couldn't afford. You're preaching the Oprah syndrome: "all of my problems are caused by someone else and aren't my fault".

    Get real. Most people knew exactly what they were getting into.

    Trust me, there are not nearly as many "victims" out there as you would like to believe.

  3. Kelli K says

    So there were no "victims" or at least people who deserve a tiny bit of sympathy?

    Fully a quarter of all American homeowners deserve to take a bath on their largest investment, their home? Because they didn't foresee that the entire financial establishment was in on a giant Ponzi scheme and they were the mark?

    And even if you were right, where does your attitude get us now? What kind of country do you want to live in?

    I don't really want to live in a country where the majority thinks like you. I'll bet a lot of other people would agree.

  4. StephenF says

    Matt, it is obvious that you have an ax to grind with anybody in trouble and to this point in your life immune to the troubles others are suffering; your statement “I'm sure there wasn't a single borrower out there who colluded with the broker to buy a house they couldn't afford.” Whether any of the examples given colluded or not is irrelevant, the fact of the matter is many, many people are losing houses and subsequently control of their lives. A single act of collusion or even multiple acts of collusion is narrow minded in the scope of this article

    I am sure that there was collusion going on, no doubt about (I am a mortgage advisor of 15yrs) I saw some of the most egregious acts played out in 2004 to 2006 that one could ever imagine. I worked for a mortgage company that was the “preferred lender” of a couple of builders. The other players in these acts were (in no specific order) Mortgage people et al, Real Estate Agents, Builders(as mentioned), Wall Streeter’s, Lawyers, Buyers, Sellers, Politicians and just about anybody who excessively profited from, and relentlessly fueled the run up.

    As an example, I watched a Sales Agent tell a young excited couple that if they did not deposit that particular day, the lot premium was going up 8K…Why was the lot premium going up you may ask, Because the mortgage programs allowed for it period. Now I ask you Matt, is that Builder assigned any part of today’s blame? Would it be responsible for the Builder to refund the buyer or contribute to the lien holder the excessive profits made due to the ridiculous mortgage programs available? No…Why, because they are big payer’s (builders lobby)to the politicians, and they are immune to those whose sit with you in the ivory tower. But didn’t they collude on this problem? The R/E Agents, you know the ones who concocted bidding wars to drive up prices…or the Home Sellers who profited from these bidding wars…any collusion there?

    Matt, if you are in any way connected to the Mortgage/Real Estate industry I question your tenure, or am surprised at your naiveté. If you are not in this industry, you may want to investigate the overall picture a bit further before you cast your aspersions.

    Matt, when and if you are unfortunate enough to lose wages or your job, or you need to sell your house and then find out you are 100K underwater, only then is when you will understand that the single borrower who colluded is not the problem. You will then be standing with the bull horn yelling “it wasn’t me”, “I did nothing wrong”, “how did this happen”…and oh yes…”PLEASE HELP!”

  5. Randall says

    Matt... you are heartless.

    Many people bought 10 years ago, raising families in their 'last' home, and are now in trouble... many at no fault of their own... go bang on a gov't. door.

    Unfortunately walking away has become a 'rational' choice. If the kitchen sink fits in a backpack, so be it.

  6. title_gal says

    Deleted because I was way too tired and way to irritated last night when I wrote that.

  7. LizardQueen says

    This article made me see red. 90% of it is you making excuses for people who made poor financial decisions.

    Sure, a lot of the bankers and realtors were crooks but NO ONE HELD A GUN TO ANYONES HEAD AND FORCED THEM TO SIGN THE PAPERWORK ON A LOAN THEY COULDN'T AFFORD.

    >Their guilty of listening to so-called “experts” who told them they could >qualify for loans that should have never been made in the first place.

    Why didn't they do their own due diligence? Look at their own paycheck and expenses and decide what monthly payment would makes sense for them, given their own situation?

    When we bought our house we were approved for a monthly payment far higher than we were comfortable with. The ultimate decision on how much to borrow was OURS, not the banks.

    No one, and I mean NO ONE, is more responsible for your finances than you are. Anyone who puts their trust in someone who has a vested interest in selling you something is a FOOL.

    And regarding ARMS: Interest rates at the height of the bubble were at the lowest in recent memory. The rate was ADJUSTABLE and the rate was VERY LOW - where did you think it was it was going to go, down some more? Duh.
    A smart buyer should've locked in at a fixed low rate before the rates went up.
    And no one forced anyone to keep refinancing and pulling money out of the house-turned-ATM-machine as so many did, which got them in trouble.

    I feel really sorry for genuine victims of fraud and the confused elderly who were taken advantage of, and those who did that to them should be prosecuted.

    But for the rest - not at all. If they can't pay get out of the house, period. That was the agreement they signed up for. Sometimes bad things happen, bad decisions are made, and it sucks. Deal with it like a grownup.

    I'm sure if the shoe was on the other foot and the bank was violating the terms of the contract they'd be screeching bloody murder and trying to enforce it.

    What ever happened to people living within their means? With contingency plans for if something happens (job loss, accidents, illness)?
    Apparently common sense has gone completely out the window. Now the modus operandi of most of America is to rush headlong into things not thinking them through then whining about it when they get spanked by reality.

    And lest you think I don't know hard times, I've been laid off 3 times since we bought our house 15 years ago. But because we didn't pull money out of it and our original LTV was conservative we managed to survive all 3 episodes.

    The whining and entitlement attitude in the original article is flat-out disgusting.

  8. ppulatie says

    Matt,

    You haven't got a clue. I have been doing real forensic audits for attorneys since Dec 07. I have helped them devise strategies to attack lenders and finding new ways to attack the Option ARM.

    I can tell you story after story about broker fraud, lender fraud, you name it on almost ever loan I do. Watching grown men cry as they tell their story is no fun at all, but it happens daily.

    Were you aware that the lenders violated state and federal law each time that they did a stated income loan? That's right. Every time. Why not blame that on the borrower also?

    I can also tell the story of why servicers are making no attempt to really do loan mods. Everything is just a stall tactic.

    Kelli,

    The servicers don't care if the lender loses $60k plus in your estimate. Believe me, the loss would be very little due to the insurance on the loan.

    And the servicers would get the money back that they must pay to the trustee prior to your default.

    It is all about the money.

  9. John Lorson says

    Government Agencies, Wall Street firms and Lenders defrauded homeowners and investors for short term profit. Every FNMA/FHLMC appraisal defines market value as the price not affected by an undue stimulus and the price represents the normal consideration for the property sold unaffected by special or creative financing. Special or creative financing was provided by these entities and Wall Street Firms and placed an undue stimulus on real estate sales. These entities knew the consequences of their loan products, had build in controls to protect their companies and the consumer, and yet ignored the consequences of their own policies for short term profit and excessive bonuses. We have experienced the equivalent of financial terrorism on Mom and Dad America and nothing is being done to protect and correct for the situation. Under normal conditions, home price would have increased around 6%. Millions of homeowners and investors who can make their payments owe more than their properties are worth. The rebound of the economy is contingent on the recovery of the housing market. The created home values (100% vs. 6%) will have to be removed from current home values. When you combine the reducing wage structure with the strictest underwriting standards ever placed on potential borrowers, the price of real estate will not be able to increase to the amount owed by homeowners who purchased or refinanced their homes from 2003 through 2008 for 18 or more years. An answer to correct for this fraud would be an interest free period until such time as the excess inflated value is removed from the loan balance. The People’s Fix.

  10. angryvoodoo says

    some y'all really need to learn to use paragraphs.

    I stopped reading run-on p's months ago, however I shall remind you
    that advertising and collusion and sales techniques often overrode common sense in these transactions.

    Doesn't make financial sense?
    there's a rebuttal for that. objections were made to be sold.

    if you don't agree you weren't in the industry.

    obviously it happened frequently enough to produce the current situation.

    where do you think all the stock boiler room confidence salespeople went?

    i'll give you a hint, it starts with M and ends in ORTGAGES.

  11. Yotraj says

    Right here's some outrage! I lost everything to slimey bankers back in 96. I was buying houses in boards and personally doing whole house rehabes and then refinancing them. I made a deal with a Bank, I did my part, they didn't do there's I lost it all. I filed Bankruptcy and it took another 12 years... read that again, 12 years to get the Bank to quit reporting that I still had 5 home loans with them and was way behind in payments. So finally, I get my Credit cleared and had been forced through poverty into moving into a shack in the woods on a piece of family owned property. I spent the next 5 years jumping from 1 building site dumpster to the next for parts and I ended up building the entire house I'm now in.

    Flat broke, terribly bad credit, so nobody'd hire me, I lived doing whatever odd jobs I could. A neighbor sold his house and a snoopy Realtor turned me into the county for building. They came, saw it, liked it, and said, Hey, since there was an old shed here, we'll just say you've rehabbed the house here and back date it till 19040, no sweat. What could I do? Broke - permanently stuck between the rock and the hard spot.

    Then I got the back dated Tax's due. $13,000! I went looking for $13,000 and H&R Block found me and wouldn't give me anything but a full mortgage of $100,000. Which I wouldn't accept without a promise to refinance in 2 years when I'd have the rest of the house done. I finished the house, they wouldn't loan anymore. I've been foreclosed on again!

    Went to MSFraud.org and started reading. After foreclosure initiation of assignments, no signatures on any of the documents passing my mortgaqe from any one entity to another, TILA violations, RESPA violations, FTC and FDCRA and more violations. Already lost in lower court (that figured) and forget attorneys, they haven't a clue as to the loan securitization process, I'm appealing now and filed Bankruptcy to stay the sale. The appeal sits while the BK is running, I probably just won't show up in Court for the BK, that should get it dismissed so that my case can rise in the Appellate Court. After another 30 days of advertising they 'll put my house on the block again and I'll file BK again and keep doing it until I can get the Appellate Court to review my case. I may lose my house, but I'm running up one hell of a legal bill that I'm not gonna pay. In the end, I'll bankrupt on everything if need be and I'll tell ya, here, 99% are just walking away. Too F___ing sad. In knife fighting there's more than one way to win. The way everyone knows is to stab your victim. And yeppirs, that's affective. But also effective is "bleeding out" the victim. Lot's of cuts. If everyone would start contesting, legally, their own foreclosures we could bleed these monsters dry.

    I have yet to see any demonstrations advertised in my area to go to but I'd LOVE to go! Know of any good web sites that list local demonstrations? Or how about any demonstration organizers?

  12. mattfoley says

    LMAO! I haven't got a clue? I've got a better clue than anyone here, including someone with 15 years experience in the industry or someone doing "forensic auditing" for a year and a half. I've been in finance for over 20 years and am not going to play the "my resume is better than yours" game.

    Heartless? No, I'm a realist. Everyone here seems to think that collusion, aka FRAUD, is fine and oh my god, now we should do something to save the home of some fool who committed fraud and got caught at the top of the market with their pants down around their ankles.

    Another cold heartless fact is that for most of these people who lose their homes, the worst that will happen is they go back to renting, oh god forbid!

    Face the facts, even with unemployment at 10%, and assuming 60% of those people own homes (6% of the population), were responsible with their finances, and every single one of them were in foreclosure, it still doesn't add up, does it now?

    You don't want to live in a country with people who think like me? Like what, calling out fraudulant borrowers who we are all now required to bailout? Oh wow, you must want to live in...Sweden?

    For those with low reading comprehension levels, read what I said, "there are not as many victims as you would like to believe". I didn't say there weren't any. If the broker was committing fraud, my experience tells me that 9 out of 10 times or greater, the borrower was right there with them.

    ppulatie: I've seen more broker fraud than you will ever see and in my experience, when it was a real person and not a strawbuyer, the borrower knew exactly what was going on. As much as I hate stated products, I would challenge you to show which specific state and federal laws they broke, because in my state it didn't break any laws, and I know of none in either Respa OR Tila.

  13. Yotraj says

    Just ran across this onld post... seems I was right! I'm the one LMAO now! Check out MSFraud.org or Stopforeclosurefraud.com or 4closurefraud.org for many, many exmples of the fraud. ROTFLMAO!!!!!

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