Sunday, July 1, 2012

Banksters and Their Backers Double Down On Dumbing US Down

The Lies They’re Telling US to Make Us Stupid (Again)

June 27, 2012

Neil Garfield

The Banks and servicers are doubling down on fooling the American public with planted articles, paid pundits and specious (empty, lying ) studies that skew data. Their goal is to lull the easily lulled American voter into another stupor where, unlike Europe, we fail to act against the Banks and more importantly fail to act to the benefit of our country and its citizens.

The other object is to get the foreign investors to keep pouring into the country and buying property and creating the appearance of a recovery. Except that once the foreign buying slows down, which it will, we will again be stuck with a glut of empty houses, probably in need of major repairs or demolition, and an absence of any substantial number of people who can buy or even rent real estate.

The biggest lie that deserves its very own headline is that “evidence suggests that anti-foreclosure laws may backfire” sending the nation into a slump. Of course no such evidence exists. What they are saying is that the Banks and servicers are starting to get nervous about how cases are turning, especially on the appellate level, so they are turning their mighty attention to the state legislatures. And they want people to support legislators who would otherwise vote for laws that eliminate fake foreclosures into lawmakers voting for amnesty for banks and servicers for the sake of the real estate market and the national economy.

Lobbyists and campaign money bag men are getting the attention of many legislators in just this way.

The lies are getting louder and more frequent. Soon they will be at the level of a dull roar as publicity companies and lobbyists and campaign donators whisper or shout into the ear of anyone close enough to hear or see the message. The message is “don’t stop foreclosures now, our plan is only half way done.”

Every time a foreclosure is completed two things happen: a family loses a home and an investor pension funds who might be funding the same family is taking a loss.

Neither one should be happening since the original debt or obligation giving rise to the supposed mortgage or deed of trust lien has been paid several times over.

The investment pool is getting these “bad” mortgages thrown over the fence into their pool despite the fact that they have very specific agreements stating that no such mortgages will be allowed into the pool. But that’s OK because the creditor — the REMIC or Trust — has probably been paid or settled and doesn’t even exist any more.

The Banks and servicers MUST HAVE THEIR FORECLOSURES or else they face a torrent of potential problem arising from the fact that they are in effect still trading on
mortgages and obligations that are dead, extinguished, gone.

Here are some of the lies from today’s headlines:

1. Housing activity improves
2. Pent-up housing demand in families who moved in together after foreclosure.
3. Phoenix Prices hit 41 month high
4. Cantor Fitzgerald (bond trader): “real estate’s got life!”
5. Foreigners competing to buy property in US states — California, Arizona, Florida and Texas.
6. (Only) Detroit has a problem – article goes on to state that the rest of the real estate market is in recovery.
7. “Prices rising”
8. Owning beats renting
9. Mumbai Real Estate market Red Hot
10. Pent-up demand hits market as foreigners seek safe haven for their money.
Each article has about one or two grains of truth and the rest is worse than pure spin. It consists of lying and misleading the American public into thinking the crisis is over. But nothing is going to remove the corruption of our title system unless the legislatures pass measures that reset title assurance like Florida did in the Murphy Act. The fact remains that unless buyers have really big money, they are probably going to be in the second crop of little people who get crushed by Wall Street.

The facts are that median income in the U.S. is getting to be stubbornly accepted at unacceptable levels, a fact that simple arithmetic will show that prices cannot rise, renters will not be able to afford their rent and the properties are going to end up back again in the control of the banks and servicers , despite the fact that when they sold the property, the banks and servicers had no valid, legal right to title or possession. They had obtained the appearance or illusion of ownership by lying to Judges, borrowers, investors and legislatures.

The truth is that the real estate market is unsound, the economy is unsound and anyone who buys property without getting a judge to quiet title is buying a lawsuit that could arise and result in restoration of the title and possession to the “former” homeowner. Title insurance as it is now written must be carefully re-written through negotiations that practically nobody even thinks about, let alone the lawyers that sometimes get involved in these transactions.

Bottom line: Don’t believe the media and don’t even believe the title company. Be careful in your selection of an attorney who really knows the risk of loss and knows how to negotiate the right remedy for the defects in title caused by MERS and securitization.

Alison Shriver Designs Exhibit at Annapolis First Sunday Arts Festival

First Sunday Arts Festival - West Street, Annapolis, Maryland

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