Why is government NOW halting foreclosures?

[CoffeeCat]

Why is the government stepping in now, to halt foreclosures?

The government relaxed the banking regulations and allowed banks to make untold numbers of loans to people
that would never be able to repay them. The government also allowed these banks to package up these suspect
loans and sell them as shaky securities, which jeopardized our entire financial system.

Then, the government bailed out the banks for being reckless and greedy with OUR tax dollars.

Obama's plan to help homeowners stay in their homes was nice in theory. I'm not knocking Obama. I'm sure
he did the best he could, considering that the banks are like mafioso--and they demanded that they not
be forced to participate in Obama's plan to help homeowners. So, Obama made the plan "optional" for
the banks. And of course, many banks said, "No thanks" and thousands of homes were foreclosed.

The banks have always had their way. They got Glass Stegal repealed. They aren't being investigated for all of
these shenanigan.

So why--all of a sudden--is the government (the states) stepping in and demanding a halt to many foreclosures? The
banks have had their way with us and with our government for many years now. They wouldn't stand for the government
going against them.

So why this is happening now?

I'm wondering if we're being set up. I'm wondering if banks are looking for an excuse to suggest that they are officially
insolvent and---oops, your money is gone.

Will banks use this situation to now claim that since they have to "eat" the losses from so many foreclosed homes--that these foreclosures
have not bankrupted the banks--and will they suggest that our entire banking system has collapsed and all money will
now be frozen?

Are we watching the beginning of an orchestrated collapse?

[DJ13]

1. The layers of fraud are finally catching up with the banks

Whether they see an orchestrated collapse as the only way out I cant tell, but a collapse would seem to be the end of their businesses, so Im not sure they want that.

If it IS orchestrated I would think it would be done for political reasons, not monetary reasons.

[ThomCat]

2. I'll bet it is an orchestrated collapse.

I'll bet the companies are reaching out to the government to make sure the foreclosures stop in a way to results in another bailout.

Just watch!

Banks will get to keep all the homes they stole with forged documents. They will also get to steal all the homes currently in the courts.

And new procedures will be put in place to let them resume foreclosures even though documents will be found to "no longer exist." Which Just means that, when the banks find the documents to be inconvenient or not in their favor, they destroy them and create new ones and the government will soon legitimize those new documents. Just wait!

"Re-certifying" "Lost" documents will become the next big thing to save the foreclosure industry, with government money paying for the whole process.

And I guarantee, somehow, more people won't end up getting to keep their homes, and banks will end up getting a profit out of this.

[phasma ex machina]

3. Pre-election jitters. nt

[napi21]

4. The gov't isn't stoppingthem. The BANKS ARE. I suspect

the banks are afraid of the trouble they could be in because of fraudulent processing and they thought they were going to get away with it until now.

[pnwmom]

5. Maybe because a couple of whistle-blowers just stepped forward

to describe how their employers were making them create fraudulent paperwork. One state attorney-general started to investigate, then another, and the whole thing snowballed.

In other words, I think it was simply a matter of reaching the tipping point. The problems were too big to postpone dealing with any longer.

[nenagh]

6. CoffeeCat: I am trying to understand...

Have you read the DailyKos diary from Fri Oct 8th by Badabing?

Title of diary: Shi$ Hitting Fan: Tavakoli- Biggest Fraud in the History of Capital Markets..

Sickening.. I just think the fraud became too pervasive to cover up & get the feeling that these mortgages were retailed like sheaves of wheat etc. But mortgages and the housing market comes with legalaties that the investment banks were not interested in or capable of keeping up with. And that statement may be totally wrong..because I am far from understanding what's going on..

Seems like departments were created to help cheat on the legal requirements, create phony "Notarized" documents when needed for foreclosures. And initially, apparently other depts would remove paperwork from the mortgages that would indicate flaws in the mortgages thus making the mortgages more AAA worthy and therefore more attractive to buyers..

That's info extracted from the DKos diary..

And it is Bank of America itself stopping the foreclosures.. one suggestion is that they are trying to avoid a Class Action suit in the future.

[sabrina 1]

7. Some of the answers

are here http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x9293800. I wondered about that also so I did a little research and wrote an OP about it tonight. I think because there was so much fraud involved and that many homeowners, after millions lost their homes, began to fight back and now, the banks are swamped in lawsuits and it's only going to get worse. They should stopped foreclosures two years ago and tried to straighten out the documentation problems at least.