More

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
Gordon Whitman

Gordon Whitman

GET UPDATES FROM Gordon Whitman

Day of Reckoning Coming Soon on Foreclosure Scandal

Posted: 05/12/11 11:38 AM ET

This is going to come as a big shock: Wall Street banks are manipulating the media in their campaign to avoid responsibility for throwing millions of people out of their homes and sending our economy into a tailspin.

For months, the attorneys general from all 50 states have been investigating the big banks for fraudulent, criminal, and generally unconscionable behavior in their handling of mortgages and foreclosures across the country. On May 11, the American Banker which serves as a mouthpiece for Wall Street, reported incorrectly that the Attorneys General investigating dropped principal reduction from the terms of an emerging settlement.

Principal reduction means adjusting mortgages to reflect homes' current values -- values reflecting the crash caused by the banks. Principal reduction would help reset the housing market and get our economy back on track, and it represents an essential component of a fair settlement.

Fortunately, the story being peddled by the American Banker is inaccurate. Reports in the Wall Street Journal and the Huffington Post, suggest that the attorneys general haven't given up on this key opportunity to hold big banks accountable and provide justice for millions of homeowners.

But this effort to spread misinformation about principal reduction being off the table is part of a coordinated effort by Wall Street banks to confuse the public and push off the day of reckoning on their fraudulent foreclosures practices.

This week, Zillow issued a report showing that housing values fell in the first quarter of 2011 in the biggest drop since 2008. A full 28 percent of mortgage holders in the U.S. -- more than one quarter -- now owe more on their mortgage than their home is worth. The primary cause for the continued slide in housing values? It's the glut of foreclosed homes now flooding the market, thanks to the big banks' foreclosure frenzy.

The good news is that while Wall Street banks have been putting a full court press on the attorneys general to water down an eventual settlement, there's been a coordinated national campaign to shine a light on the negotiations and make sure that homeowners and communities are protected. Groups like PICO, Alliance for a Just Society and National People's Action have come together to fight against the big banks and for American families.

To ramp up our campaign, we have formed The New Bottom Line -- a coalition of community organizations, congregations, labor unions, and individuals working together to build a movement that puts the needs struggling and middle-class families and communities ahead the interests of Wall Street.

In San Francisco on May 3, homeowners, clergy, and community leaders converged on the Wells Fargo shareholder meeting, demanding a new bottom line - one that puts homeowners and communities ahead of bank profiteering. They directly challenged Wells CEO John Stumpf to drop his opposition to loan modifications.

This week in North Carolina, homeowners, clergy, community leaders and others descended on the Bank of America shareholder meeting to protest the big bank's fraudulent handling of mortgages. In New York City, people are taking back Wall Street in a weeklong series of events targeting bank practices that driven cities and states into fiscal crisis. In coming days, community and faith leaders will be taking the same message and passion to the J.P. Morgan Chase shareholder meeting. Until banks are held accountable, these actions will continue.

As of May 11, 2011, it's been 864 days since the big banks caused our financial system to implode, and despite causing massive hardship for American families, these mega financial institutions have never wanted to be held accountable for anything. Fixing the mess they created in the housing market is no exception.

We need our attorneys general to stand with homeowners, community leaders, clergy, and small businesses to hold banks accountable - not to the banks' profit but to our new bottom line that puts people first.

For more information and to join The New Bottom Line campaign, go to www.newbottomline.com.

 

Follow Gordon Whitman on Twitter: www.twitter.com/piconetwork

This is going to come as a big shock: Wall Street banks are manipulating the media in their campaign to avoid responsibility for throwing millions of people out of their homes and sending our economy ...
This is going to come as a big shock: Wall Street banks are manipulating the media in their campaign to avoid responsibility for throwing millions of people out of their homes and sending our economy ...
 
 
  • Comments
  • 30
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
This user has chosen to opt out of the Badges program
photo
06:38 PM on 05/13/2011
many of these attorney generals have already had settlements with countywide now bank of america. they have not followed thru on that settlement. did they do anything ? no. many currrently are aware of illegal foreclosures in their states being reported by homeowners. it is reported bank of america is individually meeting with attorney generals to join in the "campaign" it would be a "moral hazard" to stop the illegal foreclosures.
HUFFPOST SUPER USER
Realtors Are Liars
NAR is CORRUPT
05:55 PM on 05/13/2011
No foreclosure moratorium will prevent housing prices from collapse.

Why? Because housing prices are grossly inflated.
photo
99er2049er
Obama 2012 - Romney 2048
03:11 PM on 05/13/2011
I have been in foreclosure and now I found out my mortgage company sold my home to Fannie Mae. They gave me a notice saying I have up to 6 weeks to vacate my home for the cash for keys. Does anyone know how much time I have left in the home beyond that cash for keys dates? e.g. do they evict me right after that date, or wait until they find a buyer for the home? Do I get any warning when the eviction would happen?
photo
Mr Hankey
Kucinich / Sanders (Democratic Socialist)
05:07 PM on 05/13/2011
I wish you all the best and that you find a way to fight this so you can stay in your home.

Who is your servicer/bank? Do you have a lawyer you can talk to? Have you tried asking to re-apply for HAMP? Have you done a Qualified Written Request to your lender?

www.wamuloanfraud.com
(check out this homeowners' web site)
photo
99er2049er
Obama 2012 - Romney 2048
05:23 PM on 05/13/2011
I will look at your link. My original loan company was IndyMac/One West Bank, until a few days ago when they sold my loan to Fannie Mae. Every site and person I have spoken with so far, including HUD say the owner (Fannie) can do whatever they want with my loan. So I am still investigating. But I doubt I have much recourse. I would like to be able to stay in the home and rent it for a period, e.g. 6 months, until I can find a job. Otherwise, it will be that much more difficult for me to rent another place with a bankruptcy, foreclosure, and no job on my credit report.
03:21 AM on 05/22/2011
Does your state have a foreclosure mediation program?

If you're past time to be eligible for mediation, consult a real estate/foreclosure attorney & bankruptcy attorney. Bankruptcy is the last resort. Consult local non-profits that provide legal assistance if you cannot afford an attorney. State bar associations provide referrals to these organizations. You can sue the bank representing yourself (in pro per). Local law libraries have resources that may guide you in presenting your case in court.

Check your deed, note, any assignments & substitutions of trustee to determine if there's a clear chain of title. Pay special attention to dates, names/signatures, who these people work for because a lot of the documents banks are using to foreclose on homeowners are robo-signed or do not show a clear chain of title, or are otherwise incorrect.

Whatever you do, do not give up. Do not move out of your home. Find out what your rights are & sue the bank. Make the bank prove that it owns your mortgage note & deed of trust. Demand the Note. Read the books "Mortgage Wars" (Judge Boyko's Decision) & "Foreclosure of America: Life Inside Countrywide Home Loans and the Selling of the American Dream" (skip author's personal story; focus on what happened inside Countrywide). Research articles online & in print. Find out your rights at this stage & protect them. If you want to keep your home, you have to fight for it. ThFind out your rights at this stage and protect them.
photo
99er2049er
Obama 2012 - Romney 2048
01:22 PM on 05/22/2011
I did a lot of research and I am from a state that does not provide a court system for foreclosure to take place. Bankruptcy was pretty much my last resort as my credit cards and home equity all froze my credit lines (this had never happened to me before). I was out of money, I had to stop paying my creditors, and finally I just realized I would have to let go of my house and start free.

I had a very good bankruptcy attorney and he did provide additional strategies to help me stay in the house longer.

I will be finally starting a job in 2 weeks. I fear this will be a short term job, so I am still looking for a new job, while I get this job, just as a backup protection, but this will enable me to at least qualify with renters to find a place to rent.

When you lose your job, you lose everything, and every opportunity to basically survive. It takes one simple event such as a job loss to completely ruin your life.
photo
Mr Hankey
Kucinich / Sanders (Democratic Socialist)
11:22 AM on 05/13/2011
If HAMP would have been a mandated program in the first place, this mess would have been on the mend. Banks/servicers should still have to answer to fraud.
photo
99er2049er
Obama 2012 - Romney 2048
03:15 PM on 05/13/2011
I applied for the HAMP and the mortgage company instead gave me the short forbearance plan and tacked on the fees to the loan. They then modified my loan to be even higher than my original monthly loan price. That is when I was forced to file for bankruptcy.

Now I am just weeks from being vacated. I owned this home for 20 years. Just a sad reflection on our modern society.
This user has chosen to opt out of the Badges program
photo
06:39 PM on 05/13/2011
i cant help but think you work for a bank
10:46 PM on 05/12/2011
Houses keep losing value....too many mortgage holders' houses are underwater....too many foreclosures.....too many strategic defaults.....TOO MANY toxic loans on the banks' books......

If something isn't done, we are in for ANOTHER economic meltdown by banks who have too many toxic loans and not enough capital to absorb the losses.

The banksters, Wall Street Wizards, oligarchs, and politicians are all too selfish and greedy to even begin to clean up the mess.
Cleaning up the mess means SACRIFICE for them....something they won't do.

It is going to be a long, drawn out, rough economic ride for ordinary Americans.

****If they don't do something about unemployment and underemployment (and not enough good paying jobs), the American middle class will not recover its former glory.
On the contrary, more and more Americans will sink into poverty.

Sorry to be gloomy, but I am sick and tired of the lying propagandists who keep telling us things are getting better.
For most of us, things are bad and getting worse.
HUFFPOST SUPER USER
The Nuh Uh Chronicles
....laugh or get out!.....
02:08 PM on 05/13/2011
The banks have more than enough money to turn this whole mess around. Take their already made profits and bonuses to cover this mess. They got that unjustified bail-out and PROMISED to make things right. Instead they've gotten more ruthless and they're still getting bonuses for pulling it off. Everyone of those Executives should have been brought up on a laundry list of charges. They should be sipping tea at high noon with Bernie! They "madoff" with more money than the rest of the shysters put together.
photo
99er2049er
Obama 2012 - Romney 2048
03:16 PM on 05/13/2011
I am one of those victims of the greedy banks. I thought they would take this money and help homeowners, instead they further took advantage of us. This really comes down to jobs. When there aren't enough jobs available, people can't make the mortgage payments.
06:31 PM on 05/12/2011
Part of the lingering residential read estate problem is broken chains of title. Using their shadow creation MERS, the banksters/ mortgage originators did not record properly with county recorders of deeds in counties where properties were located. Then they tried to make up the missing documentation through robosigning fraud and forgery. Successful quiet title suits can clean up MERS induced ownership questions, but cost money for attorney services and required notifications. Who will pay for this - for both the owners who pay off their mortgages and those who fell behind?
This user has chosen to opt out of the Badges program
photo
cats530
Valar morghulis
05:53 PM on 05/12/2011
I have noticed an uptick in paid-by-the-post bankster shills spouting disinformation in comments sections of major newspapers. Its easy to spot and so predictable. I'm GLAD they are worried.
photo
HUFFPOST SUPER USER
Robert Cantor
I am a human being descended from an exclusive gro
05:00 PM on 05/12/2011
If they act like a criminal conspiracy how come we dont call them a criminal conspiracy?
04:52 PM on 05/12/2011
Loan servicer fraud is rampant. Some of the common scams. You dont have homeowner's insurance, but you do. They buy insurance from a subsidiary at 5 times the going rate. They also pre-pay taxes in a year, even though you pay them monthly or quarterly, then claim they had to establish escrow. After that, they pad the escrow for so called future tax increases. These are scams to create a fraudulent default. It's pay us our ridiculous fees or your house!!!

It's extortion on many levels. Sadly the Congress, the mainstream media and the President wont touch this issue with a 10 foot pole.
photo
Kyle Ransom
Former veteran mortgage broker and mortgage securi
03:35 PM on 05/12/2011
Gordon you said it ALL! I started http://GoFightForeclosure.com when people could not understand Securitization and Robo Signers or Fabricated Mortgage Assignments created by Foreclosure Mills and Banks! Organized RICO CRIME!

More homeowners are fighting back and winning. The American people are the true victims! The children from birth to five the most vital time of development learning. How they will be impacted will not show until years and years later. School age kids, how they suffered will not show until years and years later.

For the people an American dream stolen! Attorneys General MUST Help The People!

Please fight foreclosure...

In trust,

Kyle Ransom
http://GoFightForeclosure.com
12:35 PM on 05/12/2011
Oh right: the day of reckoning is coming. People get thrown out of their houses, ruined credit rating, homelessness, lives destroyed.

Bankers get to keep all the ill-gotten gain, no fines, no jail time, big bonuses and a license to do it all over again.
12:14 PM on 05/12/2011
Do the same thing to Flagstar Bank which is now a Thrift and is using TARP bailout money to pay dividends to stockholders and to staff pay raises, not to homeowners.