THE COST OF SECURITIZATION FRAUDS: SUICIDES INCREASING

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Statistics are not published as to the number suicides related to financial difficulty, but financial pressure is often cited in studies as a triggering event for death from “natural” causes, suicide, disease and divorce. When the pressure is not just financial but a perception of total failure through loss of home, loss of property, and bankruptcy, the numbers go up as trauma-induced events.

Starting around 4 years ago we heard of suicides and family murders across the country directly related to eviction and foreclosure. Now with the number of people ousted out of their own homes the demand for rented dwellings is rising to levels that virtually assure higher rent prices, probably making it difficult for many families to have anything but their car to sleep in.

Looking back over the last 4 years, the stories were at first fairly rare. Now things are different and from my perspective getting ominous. Let’s not forget suicides dubbed “death by police” where the frantic wounded pride of a person leads them into a confrontation certain to lead to their death in a hail of bullets.

The number of violent acts involving the death of a family member as foreclosure closes in on them appears to be rising significantly. I do not have resources to conduct an actual study, but as a lightening rod for stories and information about the foreclosure crisis, I regularly receive news of events that are not reported or not widely reported. With unrelenting momentum, these deaths are being reported to me with greater and greater frequency. I receive the reports from lawyers who represent the family in fighting the foreclosure, family members and of course those who scour local newspapers for local reports.

Where the number of such reports was about once per month when I started the blog, it is now about 3 times per week. Some of that is of course related to the fact that the blog is bigger and more well known. But it appears to me that the shock and trauma of foreclosure is having a psychological effect, a demoralizing effect on our entire society. Considering that nearly all the foreclosures are of questionable legality, and that the nearly all the mortgages, notes and other documents are of at least questionable validity, and that the transactions were procured by fraud, deceit and trickery, we should be widening the scope of our inquiry into the effects of these pernicious acts on our society as a whole.

It’s time to own up to the fact that empty houses mean in many cases hollow, desperate lives, replacing lives that were functional and contained more than a few moments of happiness, laughter and joy. Being unable to provide for one family is one of the most traumatic hits a man receives and is likened by some professionals to a trauma that later presents as post traumatic stress syndrome. If those empty homes didn’t need to happen, were not absolutely required under law and were not solely the result of bad judgment or greed of the moment, then our society — all of us — might be accessories to murder.

These deaths are tragic; but the real problem is the debris left behind in the formative minds and souls of children who live out the consequences and who have “learned” that not even their own parents can protect them against the ravages of an indifferent government and aggressive, predatory business tactics aimed at taking one more shot using one more way to take the last dollar, the last hope, and even the last roof over the head of a family. We better be damned sure that the banks have the right to foreclose. Because when we look back on all this in 20-30 years, people are going to wonder what happened to the spring in the step of Americans and maybe wonder why we didn’t consider ALL the costs of domestic and international economic terrorism.

Who is winning here? Who are all the people who are losing?

Tags: bankruptcy, borrower, disclosure, Eviction, foreclosure, foreclosure defense, fraud, Lender Liability, Mortgage, predatory lending, RICO, securitization
Posted in bubble, Corruption, Eviction, securities fraud |