Beyond ForeclosureGate - It Gets Uglier - Michael Collins/TheEconomicPopulist

[WillyT]

Beyond ForeclosureGate - It Gets Uglier
Submitted by Michael Collins
04/20/2011

<snip>

The ForeclosureGate scandal poses a threat to Wall Street, the big banks, and the political establishment. If the public ever gets a complete picture of the personal, financial, and legal assault on citizens at their most vulnerable, the outrage will be endless.

Foreclosure practices lift the veil on a broader set of interlocking efforts to exploit those hardest hit by the endless economic hard times, citizens who become financially desperate due medical conditions. A 2007 study found that medical expenses or income losses related to medical crises among bankruptcy filers or family members triggered 62% of bankruptcies. There is no underground conspiracy. The facts are in plain sight.



ForeclosureGate represents the sum total illegal and unethical lending and collections activities during the real estate bubble. It continues today. Law professor and law school dean Christopher L. Peterson describes the contractual language for the sixty million contracts between borrowers and lenders as fictional since the boilerplate language names a universal surrogate as creditor (Mortgage Electronic Registration System), not the actual creditor. Other aspects of ForeclosureGate harmed homeowners but the contractual problems that the lenders created on their own pose the greatest threats.

When the Massachusetts Supreme Court upheld a lower court ruling that the actual creditor must named in the mortgage agreement (a legal requirement that the banks forgot to meet in their contracts), there was consternation on Wall Street. What would happen if a class action lawsuit challenged these flawed mortgages? Isn't the Massachusetts decision the latest of many attacking the legal basis of the shoddy business practices and boilerplate industry contracts? What if homeowners started walking away from their underwater mortgages based on the legally flawed contracts? If there were a viable prospect of a class action suit against financial institutions threatening to invalidate these contracts, wouldn't that crash the stock values of the big banks and some Wall Street firms?

The big banks and their partners on Wall Street need a preemptive strike to derail the legal process that threatens their existence. They may get a temporary reprieve through pending consent decrees from the United States Department of Justice and consortia of state attorney's general. If that protection fails, big money will make every effort to buy a bill from Congress that absolves them retroactively, en masse. The consent decree might cost them a few billion dollars. That's much better than owing the trillions in lost home values due to their contrived real estate bubble and stork market crash.
As bad as this is, it gets worse...

<snip>

More: http://www.economicpopulist.org/content/beyond-foreclosuregate-it-gets-uglier

:kick:

[sabrina 1]

1. There are several such class action suits filed now.

At least two major ones that I know of, one in Kentucky and the other in NY and I am sure there are and will be more.

I hope they collapse the whole system. Even if that means having to start all over again, as Iceland eg, has. It is a system that is rotten to the core, and I can't imagine that getting rid of such a criminal enterprise would do anything but improve this country.

I'd like to know why the DOJ has not started indicting people after the Senate Committee's report last week.

This DOJ appears to be deliberately sleeping regarding some of the biggest crimes in this country.

[Kurovski]

3. I think there's a point near the end of the article where it states:

"We are a lawless nation". I'm getting the idea that you're asking a rhetorical question, sabrina. But maybe they're just getting their ducks in a row. That would be nice, were that the case.

[The Magistrate]

5. Of Course There Is Law, Sir: It Reads 'The Rich May Steal From The Rest With Impunity'....

We are witnessing the establishment of an hereditary aristocracy here: they doubtless will refrain from calling themselves Duke and Count and such, but the fact of the thing will certainly be present....

[Kurovski]

13. Oh yes, merry old England, here we come again.

Well and beautifully stated, as usual. Good to see you. :)

[sabrina 1]

6. Yes, my question was rhetorical Kurovski.

I would like to think that those who are trying to do something about these crimes will prevail, but they are up against powerful forces so, it's a faint hope at best.

[xchrom]

2. Recommend

[Kurovski]

4. Kick. (nt)

[autorank]

8. We are led by fools

But what else is new;)

:hi:

[Kurovski]

17. Nothing yet.

Someone please suprise me. :hi:

[autorank]

7. Thanks WillyT for posting - I'll happily K*R this puppy!!!

[WillyT]

10. Anytime autorank, Anytime !!!

:bounce:

:hi:

[autorank]

15. As the good doctor said, "Yee Haa!!!"

:toast:

[Liberal_in_LA]

9. .

:kick:

[autorank]

21. .

:kick:

[crickets]

11. K&R

[Me.]

12. K & R

[Canuckistanian]

14. K&R

Madness.....

[EFerrari]

16. K&R

[formercia]

18. K&R n/t

[nashville_brook]

19. k and r

[autorank]

20. Solidarity

:hi:

[Kurovski]

22. Kick

:kick:

[indimuse]

23. KNR! n/t

[Vidar]

24. K&R. I know at least 20 people that have fallen victim to this insidious trap.

[autorank]

28. There's actually something to do about it, something citizens can do

That will be out next week from an authority on the subject. I'd characterize it but the real
thing will be much better.

[Major Hogwash]

25. Wow! Just wow! I can't believe they raped so many people all at one time.

Incredible.

[Major Hogwash]

26. I can't believe this topic only got 40 some votes.

Man, you'd think other people would care about something like this.

[Major Hogwash]

27. Why are people here avoiding this topic?

I'm beginning to think they are more interested in American Idle.

[Kurovski]

34. Maybe because it's a Christian holy day? Holiest of the year if I remember my Catechism.

Holiday weekend for all, on a "Bunny & Egg" level.

[autorank]

30. This one is largely under wraps, but not completely

This is foreclosuregate searched on Google News Sort by Date
http://tinyurl.com/3edmul3

Here it is on a Google Web Search Past Week
http://tinyurl.com/3orn2xr
Past Month
http://tinyurl.com/3upgt8r

We shouldn't be seeing so many of my last two articles listed. By that, I mean the MSM and economic press should be all over this and my stuff should be shoved down the Google listings. But they're not.

CBS did a good piece a week or so ago. Mortgage paperwork mess: Next housing shock?

This will get around on the internet, especially after the deal is done letting the perps off the hook.

[autorank]

29. They don't even think about it

They're up so high, we are mere specs.

[Kurovski]

35. "We are nothing to them." (nt)

[autorank]

36. Yep, and nothing lasts forever:)

[Kurovski]

38. LOL!

:thumbsup:

[autorank]

39. Brecht said that in Ba'al. Bet you didn't know that;)

[Kurovski]

40. I'm ashamed to say I didn't.

:(

You could have got away with me thinking it was your own brilliant turn of phrase. But the fact that anyone ever remembers anything anymore is pretty impressive to me.

[autorank]

41. I just remember a few things

Like your name:)

[Kurovski]

42. And who might you be young man?

Would you mind helping me to safely cross this street?

Oh, and here's the May mortgage statement, take care of that for me too.

[autorank]

43. It's paid

I'm your Pay Pal!

[Kurovski]

44. Cool. we'll just ignore it now!

:rofl: Got a spare bedroom, Pal?

[handmade34]

31. ....

this is important to know

[autorank]

32. k

:kick:

[Kurovski]

33. Kick. (nt)

[autorank]

37. That's an idea

:kick: