More Foreclosures, More Economic Disasters To Come

After the earlier reports this week that Bank of America was delaying any more foreclosures on homes pending an investigation into the paperwork surrounding those planned in the "judicial foreclosure" states, it was announced by the AP yesterday that such is not the case and planned to execute on over 10,000 pending foreclosure actions.

Gee, with all that stimulus money which Bank of America received and then used to purchase all that Countrywide debt and paper, I just wonder how much equity those owners have invested in total which Bank of America will be getting, and it does appear that the federal "disclosure" law that simply requires mortgage banks and lenders to disclose the fact that the loan or contract you sign today just may change tomorrow if that note is purchased by another bank or entity is repaying all those lobbying costs those banks used on Capitol Hill the last few years in spades. Over and above all those "bailout" sums.

So what occurred here is that Congress extended credit to Bank of America so that they could then purchase Countrywide, at the taxpayers' expense, which then afforded them the right to foreclose on taxpayer properties which were "at risk," no matter how much equity those owners might have in those homes?

As one who had an original mortgage which was then sold to Countrywide at one point, who then attempted to charge me when I went to refinance for simply providing the payoff figure for the original note, I continue to find it hard to believe that ANY of these banks were "at risk" or bankrupt.

Especially after that revision of the bankruptcy code which also occurred due to banking lobbying efforts back in 2006 right before this tsunami began which in effect precluded then Americans who were facing bankruptcy from in effect writing off any of their credit card debts or home equity loans without going through the Chapter 13 "reorganization" procedures first (which takes a lawyer now to go through, the procedure is so complex) before filing under Chapter 7.

Almost all protections for debtors in bankruptcy procedures have now been removed, yet we continue to live in a credit based society where even paying off your credit card debt counts against you in the configuration of your credit score.

I mean post 9-11 what did President Bush advise the American people to do?

Go shop.

And what has Mr. Obama done also since taking office?

Advised the jobless and homeless American people to either get re-educated (taking out loans for that re-education), or refinance their homes (and pay even more ultimately for your property using those mortgage counselors with additional closing costs and "new" even more restrictive loans most likely than you originally had).

With Washington and the state legislatures continuing to scratch their heads and wonder why the housing market isn't improving?

Sub-prime loans were not the problem (and most of those loans in the areas most affected were not even sub-prime loans but loans based on the London Interbank Origination Rates, not even the U.S. prime), the terms of those 50 page loans and slight of hand which has occurred post the banking bailout defining mortgages as "paper debt" and not the contracts that they are, is what has increased the foreclosures and bulked up Wall Street once again at the cost of the American homeowners.

And contrary to the "economists" predictions, there are thousands of vacant and empty homes at this point, since this tsunami started in 2006 four years ago, so it isn't a dirth of "inventory" that is depressing the market.

It is the refusal of the American people to buy into a now very "risky" investment since I'm sure that what has occurred this past four years had not been lost on the upcoming homebuying public, and just who was "protected" and who lost their shirts...

And shelter.

The announcement that the 50 Attorneys General that are calling for an investigation into the foreclosure mess right before an election is just oh, so typical and oh, so political once again.

Now four years later? Sort of like closing the barn doors after the horse has escaped, and seems merely another job stimulus for the job security of the legal profession. I mean, who will you need to address such a case if not, once again, the foreclosure lawyers who have made a bundle this past four years and seems that the collection and foreclosure industry is another of those "favored special interests" that has benefited tremendously during this recession.

Depressed and vacant housing, thousands of Americans with black markets on their credit unable to get jobs due to the use of those reports by most of those national and global industries, and a low paid workforce due to all the outsourcing and insourcing which has escalated since the Reagan years.

With such a scenario, just how does Washington expect the economy to revive since it has bankrupted at this point a good segment of the American people, at least the middle class and boomer and World War II generation, at this point?

Social Security COLAs denied based on the fact that the COLA has not increased? Just where is the Department of Labor getting those figures, because the cost of living for those over 55 has definitely increased.

Many now have extended family members living with them. Their medical expenses have exploded due to lack of regulation over the mega health care providers, and for those assisting with college costs for the grandkids even, those costs have gone up.

Food prices have increased, and gas is still higher than it was before this recession began.

Instead, a $250 check is in the mail? Seems the new mentality in Washington has also been borrowed from corporate America.

Not benefits, but annual Washington configured rebates. Just where did they get that figure?

Meanwhile, the president and those running for re-election are running around the country contributing to the carbon emissions in order to bulk up those revenues eventually for the new carbon tax.

I've got news for the Washington, the bankers and economists.

The stock market is no barometer of the economic health of America.

The local unemployment offices, residential neighborhoods, and Main Street USA are.

And just where ARE all these candidates getting all that campaign money for all those ads on TV?

Let me guess. The bankers, or "government" contractors in rebates.

Bank of America's Spin Cycle and Politics

It was announced today with great fanfare in the mainstream media that Bank of America, the "largest" bank in the United States, has called a halt to its ongoing foreclosures.

However, there appears to be many, many caveats to this story.

First, the foreclosures are simply going to be halted in order to "review" those that are now in the process in simply the 23 states where judicial review of foreclosures is required. That eliminates any "saves" for those state where non-judicial foreclosures are afforded (illegally, but what the heck? If there is ANY equity in those homes, see the provisions on "life, liberty or property" in the Constitution for a clue on what the legal process should be, and for jury trials on deprivation of property if there is actually ANY equity, including offsets in all those upfront junk fees and costs).

Which maybe be good news to those homeowners in 23 states, but does nothing for those in many of the hardest hit.

Second, this review was publicized heavily right before the election, which makes such announcement suspect at best, and also was facilitated due to the fact that the housing market isn't improving under this Administration as with the last, and it has been claimed that one executive of this bank admitted that she had initiated over 8,000 foreclosures last month alone without even reading any of the documents.

Although, of course, most of those loans were Fannie Mae or Freddie Mac loans merely sold by Bank of America to homeowners with those usurous and banker friendly terms included.

Third, since most of that "paper" (contracts) was rebundled and resold over the global exchange due to another unconstitutional Act of Congress affording these banks to so do in order to "stimulate" the global economy at the Americans expense once again ultimately, for many after that bailout there is actually no underlying debt to many of those mortgages, at least to the banks anyway.

And I have always wondered as a Constitution believing American, how those banks could resell those mortgages to even other banks to begin with without one of the parties to that contracts consent. That flies in the face of the common law of contracts as intended in this country from the outset.

And those mere "disclosure" provisions simply have become nothing more than a license to steal, or renegotiate those contracts by those banking entities almost at will even before the ink is dried on those closing documents.

Those global investors MAYBE may be still out some cash, but I doubt that since many foreign entities and foreign banks were also included in that bailout too, of course, then billed to OUR deficit.

Many of whom, of course, were savvy investors to begin with and some even looking for tax write-offs on their massive wealth. I mean how many average Joes in this country can invest in banking and financial stocks, even at their lower market values now?

Corporations and union pension plans, maybe, but not your Average American.

This "announcement" most of all seems like closing the barn door after the horse has escaped.

Of course, the realtors also got into the act, with an agent from San Diego posturing about how this move just might make those "lining up" to buy these cheap properties take a step back.

I mean, the original owner just might have been ousted illegally, and just think of all those lawyers that would then be needed to sort this all out in such an event as the original owner still having a legal claim to the property he maybe has lived in for ten, twenty or even almost thirty years (since these "creative" adjustable rate mortgages have been in existence since at least the early 1980's, and there have been two other recessions since then meaning many also just might still have seconds also on them in order to pay their assundry increasing costs of ownership and debts from those years).

What timing! What publicity! What a political maneuver!

I went into the mall in a community in the West that has kiosks set up by several real estate agencies hawking those foreclosed properties to the public. In over an hour and a half observing while I was visiting a social service agency that has taken up residency in that same mall after the retailer folded, I saw only one person even stop at the kiosk.

Too many have been burned this time, and this is the third market manipulation in the housing industry (or fourth, I've lost count) in my lifetime. Don't you think that those that have been burned, and are standing now in the social services offices have warned their posterity that "if it looks too good to be true, it most likely is."

Or instructed them to simply run the other way?

I mean all those new carbon and health care "taxes" are also coming up, so just how can you budget for those expenses, and still afford all those closing costs?

Not to mention, the next cyclical meltdown in less than 15 years, if history serves. And those 50+ page loan docs now even dictating "useage" and also repair standards and such, not to mention having to send at least your first born out to work should you miss simply one of those payments, if you have any equity in those properties. The hatchet will fall that much quicker for the bottom line profits of those banks.

So don't even think of taking out one of those 15 year "fixed" notes, either.

Nothing is fixed, except the roulette wheel in the 21st century housing market.