BREAKDOWN OF TRUST: STATES SEEKING MORE FORECLOSURE FILING FEES TO CLOSE BUDGET GAPS

COMBO TITLE AND SECURITIZATION SEARCH, REPORT, ANALYSIS ON LUMINAQ

I’ve been hearing conspiracy theorists tell me that the states didn’t want to stop foreclosures, they wanted to keep them going and speed them up BECAUSE the court administrators had done the math, especially in states like Florida, where the filing fees are so high. As cynical as I am about the motivation of government, business and banks on this whole fiscal mess, even I thought THAT theory was a little far out.

Then along comes several articles in State Bar Association publications explaining how they are going broke because the foreclosures slowed down. It’s the lead article “Courts Brace for Budget Shortfall” by Jan Pudlow in the Florida Bar News. So rather than find a way to collect the real money from the banks for conducting fraudulent transactions and acts of interstate racketeering, violation of registration requirements, recording and failure to pay income tax, intangible tax, and other fees which dwarf the filing fees they are now after,  the court system administrators, not looking past their own noses, are just looking for low hanging fruit — more and faster foreclosure filings.

All this stuff about fabricated and forged documents at closing, fabricated and forged documents at foreclosure, appraisal fraud, predatory lending aside, they want foreclosures NOW. It would not be very cynical to imagine that Judges are under pressure to do just that since their own salaries depend upon the revenue of the court system. Thus a CONFLICT OF INTEREST arises between  (1) the state that is supposed to provide justice and due process and even the Judge whose decisions are supposed to be fair and balanced and (2) the borrower who wishes to have claims heard on the facts and decided on the merits.

In Florida, Lisa Goodner, who is the state court administrator, said there will be a $70 million shortfall bringing the the State Courts Revenue Trust Fund balance to ZERO by end of THIS MONTH. Desperate people do desperate things and throw caution and respect for the law to the winds. But when the legal system itself does it, where do you go?

At the present time the state court systems have a present motive and urgent need to have the mortgages treated as valid and the foreclosures as proper despite all public evidence to the contrary. One might speculate that requests for bailouts in some states might be acted upon by the legislature and not in other states. The same holds true for the Federal Court system. The information is presented as though we are trapped and don’t have any choices.

But we DO have choices — actually the only one available under our system of government. Apply the law, which is merely what has been written down over hundreds of years in order to conduct an orderly society. Do that and the foreclosures will mostly stop and the mega banks will most likely fall, but then all these people will have equity in their homes, rising home prices, and no need to file bankruptcy. Consumers will have money to spend,, entrepreneurs will have money to start new businesses and the small business sector will re-start its engine and supply 70% of all employment in America again. Wall Street will shrink and we’ll actually start making things that people want and performing services of actual value. Tax revenues will soar without screwing our neighbors.

SO believe in the Wall Street version of what is right and wrong or believe what you know in your heart. If you believe Wall Street we are clearly headed for a disaster and chaos of unfathomable consequences; if you believe what you know to be right, that you grew up knowing right from wrong without Wall Street telling you, then we have hope.

The really stupid thing is that any fool can tell that foreclosures are going down the tubes. So the Court administrators are headed down a rabbit hole. The question is how will this be resolved? Based upon past behavior the states will jump at the small money as long as it is  quick and the homeowners and investors who were the only real people involved in those transactions will stay screwed. Of course, if you have been reading here, the PEOPLE have the ultimate power to throw out the bums and start things over without changing our government or constitution or anything. It’s not the system or enabling documents of our society that is wrong, it is the misuse of the system by people who don’t care about the true value of America.

Posted in bubble, Corruption, Eviction, securities fraud |