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Richard Zombeck

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Homeowner Activists Will Be Crushed Under Their Own Weight

Posted: 05/01/12 09:53 AM ET

Homeowner activists will be crushed under the sheer weight of their gigantic egos; 11 million blogs, websites, and Facebook pages; intellectual dishonesty; Internet turf wars; and a stranglehold on information -- leaving homeowners sifting through debris for decades.

Since 2009, which by most people's naive assessment is when the housing crisis and foreclosure fiasco began, the Internet has become littered with self-proclaimed mortgage experts and homeowner activists doing little more than drawing attention to themselves and pointing to their manufactured biographies and made up resumes. A vast majority of these bloggers do little to help homeowners and, in many cases, are doing irreparable harm with histrionics, inane screeching, disparate calls to action, and ignorant advice for struggling and desperate homeowners.

Every once in a while someone will pop up in the news or on a blog to take personal credit for having exposed "robo-signing" or for having coined the term "mortgage servicing fraud." The media has been all too accommodating and eager to present these clowns as "citizen heroes" without a shred of research into their backgrounds, expertise, or credibility. As a result, these re-branded former traders, mortgage brokers, and, in some cases, convicted felons are allowed to pass themselves off as concerned citizens. In actuality, much of the mortgage mess was being discussed long before what many consider ground zero - as early as 2005 in some cases. (See: ML-Implode, MSFraud, and GetDShirtz.)

In an era of technology that promotes the sharing of information at lightning speed, the lack of unity and collaboration among bloggers is staggering and an affront to logic. Informing, educating, and helping homeowners has taken a back seat to turf wars over Internet traffic and self-adulation. Many of these site owners and bloggers seem less concerned with providing actual relief to homeowners than they are with boosting their ratings and agenda. One has to wonder if their newly found purpose in life could be jeopardized should an actual solution become miraculously available.

"It is frustrating and difficult to watch as the people who have risen to the forefront of this movement battle each other for turf in the marketplace of ideas," says Vermont Trotter of protectamericasdream.com. "All this does is sow confusion into the network, leaving the homeowner confused and his efforts dispersed and unfocused. 'Collaborate or Die' isn't just a slogan; it is the reality we are facing. The other side collaborates; we know that. It's time we did too."

In the meantime, a large majority of bloggers litter their sites with irrelevant articles and wild speculative theories, and plaster public documents with their personal watermark as if to expect a finder's fee. Some promise do-it-yourself solutions from someone who may have attended a weekend seminar and published a PDF. Millions more simply repost random crap, violate copyright laws, and slap ads in every corner of their site' hoping to get rich one nickel at a time.

"Many of these activists think that because they went to a 5-hour foreclosure seminar, that somehow makes them an attorney or mortgage expert who is qualified to give legal advice," says Steve Dibert, of MFI-Miami, "This is like saying that anyone who watched Speed Racer cartoons in 1970s would qualify for pole position at the Indianapolis 500. Not only do activists promote incorrect and discredited information, but it could be considered unlicensed practice of law."

The worst offenders are the owners and authors of well-trafficked sites whose egos have grown with the number of readers. They moderate comments and forum posts in the same way Fox News edits its commentators.

While comments and forums can go off the rails and devolve into inane and irrelevant discussions without moderation, for the most part they add value to the discussion and the flow of information. Readers and bonified experts may question a theory, correct factual inaccuracies, challenge the author's motivation, or even add to the author's article by providing additional insight and information. Unfortunately, it's usually the site owner moderating the comments and posts who prefers praise for their prose over intelligent discussion and, as a result, many of these comments, particularly ones that may actually add to the value of the article, don't see the light of day. It's as if the author's feelings were hurt for not having come up with the idea himself. In the end, the reader is left with a soapbox speech of half-truths and misleading information followed by applause and comments from adoring fans who are no less ignorant than the author.

Martin Andelman of Mandelman Matters and a Home Preservation Network contributor is one of the more consistent and outspoken bloggers on this issue. He and I share a common sentiment with several others: get this done and put it behind us. Neither of us planned on getting attention this way. Being insulted and lambasted by other activists supposedly on the same side is not what you shoot for when you're making a five year plan.

"I never delete comments unless they're racially motivated or hateful," Andelman says., "I have readers on my site that are a lot smarter than me and when I write something it's to get people talking. I want people to think about what I wrote and point out something I missed. I don't do this to be 'right'."

Last year Van Jones was quoted as saying, "You move from anger to answers. You move from pointing out the problem to pointing out the solutions." An inspiring sentiment, but with no follow-through is meaningless. I've spoken to several activists and well established bloggers over the past year who have reached out to Jones (myself included) to no avail -- it seems everyone really does want to do this on their own -- or at the very least taken direction from President Obama on the lack of follow through when it comes to this issue.

In Iceland, people hurled rocks at Parliament and were rewarded with a nationwide reduction in mortgage principal. In Spain, hookers collectively refused to service bankers until they loosened lending standards. The Greeks started their own barter system, bypassing the banks. In Cairo, tens of thousands of Egyptians gathered in one place at the same time to protest their outrage, making OWS look like a campus sit-in. In France, if you threaten to take away a federal holiday, people set fire to cars and hurl mailboxes through plate glass windows. In fact, International Monetary Fund Chief, Christine Lagarde had more to say about Fannie Mae and Freddie Mac than any of our elected U.S. officials combined, but the best this country can come up with is eleven million blogs of re-posted crap?

This country has some very bright, motivated, innovative, and passionate people. If they started working together rather than hoping for the number one slot on American Idol, something might get done.

Without collaboration on all fronts this movement, like any movement, will collapse under its own weight. The divisiveness, infighting, and turf wars have made it easy for the ones who created this mess to run roughshod over the American people and the laws that were meant to protect them.

The "cause", as it were, is severely disjointed and incomprehensibly divided by many wanting the same thing -- relief for homeowners and justice for those who were harmed.

As Vermont Trotter, a colleague and contributor to HPN, says all too frequently, "Do what you do, but do it together."

Author's Note: This blog post was, in fact, a collaborative effort. As with many pieces I've written, I rely on others who know more than me for guidance, advice, and facts. Thanks go out to all of them who contributed to this piece in one way or another (and I'd especially like to thank the readers, who take the time to comment on this post -- many of whom help prove my point).

  • Martin Andelman, Mandelman Matters

  • Matt Weidner, mattweidnerlaw.com

  • Nancie Koerber, Project Reconomy

  • Jack Wright, MS-Fraud

  • Vermont Trotter, Protect America's Dream

  • Mike Dillon, Stellionata Consulting

  • Steve Dibert, MFI-Miami

  • Pamela Joye, Pamela Joye Photography

 

Follow Richard Zombeck on Twitter: www.twitter.com/zombeck

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Homeowner activists will be crushed under the sheer weight of their gigantic egos; 11 million blogs, websites, and Facebook pages; intellectual dishonesty; Internet turf wars; and a stranglehold on in...
Homeowner activists will be crushed under the sheer weight of their gigantic egos; 11 million blogs, websites, and Facebook pages; intellectual dishonesty; Internet turf wars; and a stranglehold on in...
 
 
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09:12 AM on 05/07/2012
Great article and sadly very true, there is a ton of garbage out there. I personally have been fighting with Wells Fargo over my Loan Modification for two years.
http://www.rantrave.com/Rant/Wells-Fargo-One-Lie-After-Another.aspx

I now work for a consumer advocate organization that helps homeowners in this very situation. Real help is out there and I enjoy helping people who want to keep their homes.
09:44 PM on 05/03/2012
Activists collapsing under their own weight? I think not. The banks/financial criminals have brought it on. I say stop payment! demand the legal note! bring about a legal tsunami. They asked for it; they got it. Do not stand for this modern version of serfdom. Fight!
02:14 PM on 05/05/2012
The problem with the "stop payment" argument is that it's double edged sword if those payments aren't placed into escrow. I've been at this a long time and that time gives me a different perspective on things. Not every homeowner can (for varied reasons) bring a legal "tsunami" and for those who can, not placing those payments into an escrow account can tank you with a judge before you can blink an eye. Aside from that, activists are headed to a collapse because of those who talk a good talk but don't walk the walk. Let me tell you I've helped plenty of people for nothing, even when we were struggling to put food on our own table and keep the lights on. It wasn't about credit or money or fame or attention, it was because it was the right thing to do.True activism isn't about what it gets or how it benefits the individual, it's about the greater good.
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07:06 PM on 05/03/2012
One can only help themselves in the end. Yes, I look at information wherever possible and I have learned to separate the "crazy La-la" sites from those that offer real cases,real depositions, real complaints to learn from. THEN you have to see if what you found applies to your own state. It is a hard deal to go through and it is harder to try and help others. I have found that all I can do is to point people to the FACTS, like laws, statutes, rules and regulations. The other thing to point out is great sites like structuredfinancelitigation.com where you can read the lawsuits AGAINST the banks by the big investors. My favorite site lately. Richard we appreciate your work!
09:50 PM on 05/02/2012
After spending most of my adult life in the recovery business trying to make an honest living what I've encountered is unfathomable. However, I won't be distracted by wannabe bloggers. As they say knowledge is power. If you don't succeed the 1st time try and try again. However be careful they are very dangerous! I updated a new blog tonight on Msfraud.org. I continue to blog because the LIES AND CORRUPTION need to somehow STOP for so many people who have no clue as to how DIRTY THEIR HANDS REALLY ARE!

When will any one address the real culprits by name who are responsible for this crisis? Not ONE REPORTER! READ about the attorney for one of the largest mills nationally that gets off on murder with 1.5 years of time and 3 years probation at http://www.msfraud.org/forum.htm

Under the topic Phoenix Foreclosure Lawyer arrest for felony hit and run. Then get more educated at mortgagefraudclosure.blogspot.com
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06:53 PM on 05/02/2012
Thank you for this informative piece.

I had no idea that there was so much disunity among abused homeowners who fell and fall victim to the lenders that should have been indicted a long time ago.

Minor typo though: Bona fide not "bonified". (unless it is an intentional play on words).
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04:28 PM on 05/02/2012
Did I miss something in Mr. Zombeck's article? If so, my apologies. I'm only tangentially involved in foreclosure issues so I’m speaking thru a hole in my head. However, it seems that Zombeck makes a good point about the strength of unity – so he calls for a unified front.

Well, that was easy now, wasn't it?

In my former life as a direct response copywriter, the only imperative was to include a "call to action." For example, "Try it free for 10 days .... Return the enclosed reply card..." etc. Still, a call to action is useless without providing specific instructions. What do you want the reader to do, by when and how?

The same applies to Mr. Zombeck. I'm not flaming him; merely pointing out a huge gap in his pitch for unity. Who? How? Where? What might unity in regard to the foreclosure fiasco look like?

Before everyone gathers 'round the campfire singing Kumbaya, a number of recognized foreclosure "leaders" need to propose ideas on how to unify the movement. Competing ideas need to be bandied about until some consensus about organizational structure or guiding principals is reached. Hurling insults or rehashing old arguments seems counterproductive. Indeed, action without organization appears to be a formula for defeat in any endeavor.
03:56 PM on 05/02/2012
On a separate note, the problems, this "movement", however you would like to refer to it does not belong to anyone in particular and the sooner everyone gets on board with that, the better it will be for everyone. While I will openly admit there are many people in this word I do not like, I have never once not listened to a thought, opinion or idea (good or bad) simply because I did not like the person speaking. I have never shot down a good idea simply because I did not like the person it came from. I cannot stand, what comes across to me as high school clique mentality, from people claiming they are in this to do good when really it's clear to the majority of us that they are only in this to make sure they get credit or fame or money or attention. Sadly there are some people commenting here who are acting in that manner and as a result, first impressions being what they are, have completely turned me off to the thought that they have anything valid to contribute. If I wanted to listen to people scream at each other and throw tantrums and try to belittle each other, I'd watch daytime TV.
03:56 PM on 05/02/2012
Initially I was going to comment, went as far to sign up so I could do so (I read much and comment rarely if ever on anything) and then changed my mind as real world concerns came calling but at this point I am so exasperated by the entire thread of comments that I changed my mind. @Renoira, I don't know you, but feel confident in saying that, at least in my estimation, Mr. Zombeck was not pointing a finger at you. In fact, he did not point his finger at anyone in particular. What he did do is point out that instead of working together, some people out there have made this all about themselves, their egos and their "fame" instead of all about finding a solution which is what they claim they want. Aside from that, if you don't know what Home Preservation Network is, the simple answer is to go to the site and check it out for yourself. At its base, HPN is a free resource that brings together news, blogs and public documents from a number of different sources all into one place.
01:19 PM on 05/02/2012
I blog so that others out there will know they are not alone. Our empire is naked...and I am just childish enough to say so.

There are a lot of great minds out there and if there was a will to do so they could come up with a solution that would at least head us in the right direction. Right now, however, the solution seems to be to allow the lawlessness of the large corporations to continue in order to correct the "wrongs" of the little guys, ruining not only our dreams of homeownership, but our hopes of ever being able to retire and losing our credit credibility as well.

It doesn't seem to be in the collective interest to help the homebuyers. It is more profitable to foreclose and belittle us. Helping us might require cutting back on those million dollar bonuses.

Yes, we are mad. At least I am. Writing is what I do to be heard...so far it seems to be the only way, and even that is weak, at best.
01:19 PM on 05/02/2012
I blog for the injustice of those being led into foreclosure by "temporary modifications" that are later denied after months or a year. The lender is then allowed to go after the "difference" in payment, telling the homebuyer that in order to avoid foreclosure they must pay anyway from $5000 - $25,000 to catch up the difference.

I blog for those, like myself, who were held to prepayment penalties we did not agree to, thus making it impossible to refinance out of a toxic loan. While the banks try to play the "victim".

I blog because of FBI reports that state 80% of mortgage fraud was brought on by insiders:

http://foreclosuregate.prosepoint.com/story/fbi-estimates-80-mortgage-fraud-involved-industry-insiders

"The U.S. Treasury’s Office of Thrift Supervision noted last year (page 7):

The FBI estimates that 80 percent of all mortgage fraud involves collaboration
or collusion by industry insiders.

This confirms what one of the country’s top fraud experts has said for years: that it was fraud by the big banks – more than anything done by the little guy – which caused the financial crisis:

William K. Black – professor of economics and law, and the senior regulator during the S & L crisis – explained last month before to the Financial Crisis Inquiry Commission why banks gave home loans to people who they knew couldn’t repay."
01:18 PM on 05/02/2012
You call your site "Home Preservation Network", now I am wondering what it really is? Your e-mails open up with the following quote: "All that is required for evil to prevail is for good men to do nothing.
- Edmund Burke".

I understand these bloggers you are criticizing. I am one of them. I have tried to do things the right way...to go through the proper channels, only to be ignored and belittled. As in the story of the Emperor's New Clothes, we all know that something is wrong, but our leaders are so busy protecting their intellect and their money that they will not admit it...or better yet...they blame it on me...The deadbeat homebuyer.

I have papers in my notarized contract that were not honored, I can prove it, if I could get to court. It has been over 5 years of legal game-playing and we are still waiting...so I blog for the rights of others, as well as myself.
03:24 PM on 05/02/2012
You have indicated you write - where are our articles? Why not contribute and collaborate with others who feel like you do and write your own thoughts - pool knowledge and expertise? The entire point of the article is for people to join together instead of each person solely trying to do this themselves - the quote has everything to do with the situation. Evil (as in fraud) can prevail while good men (as in we the people) do nothing (as in every man wants to do things himself for his own credit and gain). What's not to get? the network is just that - a network of expertise. But you like so many others, want to go it alone and take all the glory in being the "one who helps". Again, why not join together and help collaboratively and effectively. That's really the question being asked.
03:49 PM on 05/02/2012
the whole point of this article is collaboration - coming together; & if you really went to the website that's referenced you'd see that it's about OTHER voices not one. this is so typical and ironically, is what's clarified in the article.
03:48 PM on 05/04/2012
She said she blogs while going through the nightmare herself which is the case with many of us even if I don't have a blog.

I agree with the article in some ways though it seems to point fingers as well.
11:38 AM on 05/02/2012
Like everything else these days, to little to late. I've posted these same insights to the utter waste of time that is most of todays blogger sites concerning the crisis we face in this country. As proof, I just spent another wasted 30 minutes reading and posting........

As a nation, we are doomed...... You can't derail the train of greed and self interest that our government has become with mere words........... and action, beyond those of our fingers pressed upon the keyboard, seems to be more than most people are willing to become part of.

I have real work to do: A Rule 60 motion; A Quiet Title Complaint, and; A Complaint challenging the Constitutionality of the Foreclosure Statutes in my home State. This is the only way I know how to fight the system with my keyboard.

TheGrey
11:49 PM on 05/01/2012
Richard’s observation and statement is right on. He is visionary to initiate the conversation and reach out for unity. Without unity, the success of advocacy will be defined by the 1%. With unity, homeowners and advocates can demand and define the success at their own terms.
05:44 PM on 05/01/2012
Damn. I wish I'd thought to write something like this!
05:35 PM on 05/01/2012
awesome reading and you are so right; where are the action people has been my question for years!!!