So in Chapter 11 for the big boys they address reality and treat the value of the property the way it is. But in individual little guy petitions for relief in bankruptcy court, they stick you with the entire amount of the Note even if the security is only worth 20% of the "principal." And it's not like the bank…[...]

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Tags: banks, Chapter 11, Chapter 13, Chapter 7, creditor, fair market value, investors, Personal responsibility
Posted in bubble, Corruption, Eviction, securities fraud |

Since this question keeps popping up I figured I would take a shot at it. The theory is that by asking for a jury verdict you are taking the matter out of the hands of a politicized judge and putting it in the hands of what is likely to be a very angry jury pool itching to whack the Wall…[...]

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Tags: bifurcation, civil procedure, creditor, damages, equitable relief, jury demand, legal relief, SECURED CREDITOR
Posted in bubble, Corruption, Eviction, securities fraud |

And then there is the main question which everyone on Wall Street is stonewalling: were the obligations created in mortgage origination paid off by government or insurance? To put it another way, were the homeowners already bailed out and don't know it? Editor's Comment: Barofsky is like Elizabeth Warren --- someone Wall Street doesn't like, and describes reality instead of…[...]

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Tags: AIG, bailout, disclosure, foreclosure defense, foreclosure offense, Goldman Sachs, Neil barofsky
Posted in bubble, Corruption, Eviction, securities fraud |

Home Sales See Biggest Monthly Drop In 40 Years by The Associated Press Enlarge Ben Margot/APSales of previously occupied homes fell 16.7 percent in December, missing analysts' expectations. Ben Margot/APSales of previously occupied homes fell 16.7 percent in December, missing analysts' expectations. January 25, 2010 Sales of previously occupied homes took the largest monthly drop in more than 40 years…[...]

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Posted in Uncategorized |

see Morality NO Issue in Big Strategic Defaults Of residential property Why Not for Homeowners No Worries About "Morality" in Biggest Real-Estate Default in History Posted Jan 25, 2010 11:59am EST by Henry Blodget in Investing, Recession, Banking, Housing Related: dia, spy, xlf, len, kbh, blk Over the past few months, arguments have raged about whether it is "immoral" for…[...]

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Tags: morality, strategic defaults
Posted in bubble, Corruption, Eviction, securities fraud |

From "Anonymous" Editor's Post: It's always a pleasure to read something where someone actually knows what they are talking about. The following post was picked up from the comments. The key points that are relevant to the Qualified Written Request and Discovery are 1. In the shuffling of paperwork, where was a "true sale" of the pool , a portion…[...]

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Tags: accountant, assignments, balance sheet, bookkeping, CFO, conduit, discovery, equitable, FASB, gaap, income statement, Investor, legal, Qualifified Written Request, REMIC, selling forward, Treasurer, true sale
Posted in bubble, Corruption, Eviction, securities fraud |

A provocative paper by Brent White, a law professor at the University of Arizona, makes the case that borrowers are actually suffering from a “norm asymmetry.” In other words, they think they are obligated to repay their loans even if it is not in their financial interest to do so, while their lenders are free to do whatever maximizes profits.…[...]

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Tags: $800 fee, ARIZONA, Booth School of Business, CALIFORNIA, Department of Housing and Urban Development, Eric Posner, fee for non-recourse option, Lease, Luigi Zingales, mortgage default, New York Times, non-recorse, Option, pool, recording, Richard Thaler, strategic defaults, sublease, Susan Woordward, swap, University of Chicago, walking away
Posted in bubble, Corruption, Eviction, securities fraud |

"Reducing the loan’s principal balance is more valuable because it lowers monthly payments and restores equity. Various studies show that having equity also reduces the likelihood of redefault on a modified loan. It’s not just the moral thing to do. It also would help avoid the spillover effects of the next expected round of defaults. Coupled with high unemployment, a…[...]

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Tags: creditor, lender, mortgage modification, nominee, principal reduction, servicer
Posted in bubble, Corruption, Eviction, securities fraud |

"Many economists and mortgage experts have concluded that banks must ultimately forgive loan balances to restore equity to underwater borrowers. Otherwise, growing numbers will walk away from their homes and accept foreclosure rather than make payments on properties in which they no longer own a stake." Editor's Comments and Notes: The Obama Administration has finally come to the conclusion that…[...]

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Tags: bailout, borrower, disclosure, foreclosure defense, foreclosure offense, fraud, mortgage meltdown, predatory lending, principal reduction, quiet title, securitization
Posted in bubble, Corruption, Eviction |

Editor's Comment: Finally! The president has now played out the Geithner-Summers scenario and seen the results --- a large middle finger raised in the air from an arrogant bunch of people who are tone deaf to the needs of the nation and the world. This decision brings us into line with the rest of the world, whose central bankers have…[...]

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Tags: bailout, Bank of England, consumer protection, financial regulation, foreclosure defense, foreclosure offense, Geithner, Glass-Steagall, Jackie clames, Louis Uchitelle, mortgage meltdown, Obama, principal reduction, proprietary cuurency, securitization, Summers, Volcker
Posted in bubble, Corruption, Eviction, securities fraud |