15 Oct

David Duckworth, Your Loan Is Secure With Us. Pen and ink on paper, 12 x 9 in.; cropped and digitally painted.

Recently I had the opportunity to listen to CJ Holmes, broker, realtor, and real estate analyst, speak in Bernal Heights.  An articulate speaker, her arguments regarding the mortgage crisis afflicting America were clear and concise.  I urge all to attend one of the upcoming foreclosure town hall events: October 16 in Berkeley, October 20 in San Bernardino, October 21 in Santa Barbara, October 24 in Santa Rosa, and October 27 in Fresno.

For further information: http://www.hofj.org, Home Owners For Justice, and http://www.publicbankinginstitute.org, Public Banking Institute.

The following information was provided by Holmes at the Bernal Heights presentation:

“Home Owners For Justice invites all elected officials and all citizens to attend a Foreclosure Town Hall in Berkeley on October 16th, San Bernardino on Oct. 20th, Santa Barbara on Oct. 21st, Santa Rosa on Oct. 24th, or Fresno on Oct. 27th, or others as scheduled.  Foreclosure crisis solutions that benefit the People will be presented at these Town Halls, with time for questions and answers.

The People have two tremendous powers of which they seem unaware: 1) Eminent Domain of contracts like securitized loans, and 2) the establishment of Public Banks.

Bankruptcy courts across the country and State or Superior courts in Nebraska, Ohio, Vermont, North Carolina, Delaware, Kansas, Maine, Massachusetts, Nevada, Oregon, and Washington have agreed with MERS’ [Mortgage Electronic Registration Systems] own definition of itself—that MERS exists strictly for the purpose of circumventing loan ownership documentation—making it impossible to establish legal ownership of a specific loan.  Independent audits across the country consistently identify 84% of foreclosures are illegal, which forces us to recognize that the county recording system we have trusted for centuries is fundamentally broken.

The very process of using MERS and pooling 72M loans into securitized trusts not only ruined loan ownership chain of title, it allowed lenders to be paid time and again as they fraudulently sold the same loan to trust after trust.  These trusts have been mostly paid off now with credit-default-swap insurance, bank bailout funds, or the trillions of unreported dollars taken from the Fed discount window since 2008, all at taxpayer expense.

Predatory securitized loans caused home values to spike, and fraudulent foreclosures caused home values to collapse, ruining the construction industry and thousands of jobs, closing businesses, increasing homelessness, and causing massive tax revenue and state funding losses.

The people and their elected representatives can and must stop this fraudulent theft of their homes, jobs, and economy.  Eminent domain allows the seizure of intangible property such as contract rights like loans, provided it benefits the public and the lender is compensated at fair market value.  If the lender cannot prove loan ownership, as is the case with securitized loans, the county can proceed uncontested with the seizure, costing the county very little.

New loan terms can then be implemented, for example 90% loan-to-market value, credit for original down payment, 2% interest, 30-year-fixed.  For a home valued at $350,000 with $40,000 down payment credit, the county would receive around $1000/m for the next 30 years.

Payments from thousands of loans like this would provide a powerful source of new revenue, which, when harnessed with a public bank, would allow the creation of a sustainable, abundant, and affordable credit—OUR credit to benefit OUR communities—to pay for non-securitized underwater loans, and expand economic activity in industries like renewable energy, sustainable agriculture, redevelopment efforts—all projects that private banks do not fund.

The recent mega-bank strategy of shifting loan servicing to their draconian wholly-owned bank subsidiaries—like Nationstar, Ocwen, and Greentree—is a blatant attempt to circumvent the Attorney General Settlement and other government oversight.  Combined with insider warnings that loan mods will soon be cancelled en masse as banks ramp up foreclosures, we, the people are at a critical juncture.  We are facing the train of destruction as it roars down upon us.”

One Response to “Home”

  1. John October 16, 2012 at 4:54 pm #

    PLEASE SEE http://www.understandingmoney101.com

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