Thursday, October 14, 2010

Wild, Wild West

I don't know if you caught the piece yesterday out of the AP entitled Robo signers: Mortgage experience not necessary.
The article outlines this:

In an effort to rush through thousands of home foreclosures since 2007, financial institutions and their mortgage servicing departments hired hair stylists, Walmart floor workers and people who had worked on assembly lines and installed them in "foreclosure expert" jobs with no formal training, a Florida lawyer says.

In depositions released Tuesday, many of those workers testified that they barely knew what a mortgage was. Some couldn't define the word "affidavit." Others didn't know what a complaint was, or even what was meant by personal property. Most troubling, several said they knew they were lying when they signed the foreclosure affidavits and that they agreed with the defense lawyers' accusations about document fraud.

As if this is not enough get a load of this from the same article:

Meanwhile, the public outrage continues to mount. In what is perhaps a sign of things to come, a Simi Valley, Calif., couple and their nine children broke into their foreclosed home over the weekend and moved back in, according to television station KABC of Simi Valley. The couple, Jim and Danielle Earl, say they were working with the bank to catch up on payments until they discovered a $25,000 difference between what they owed and what the bank said they owed. The family was evicted from their Spanish-style two-story in July. The home has been sold, and the new owner was due to move in soon.
The Earls and their attorney now allege that they were victims of fraudulent paperwork.

Can you say wild, wild, west! Unfettered capitalism right? Or was it compassionate capitalism? Or was that conservatism? I'm confused now. 

Actually this is what you get when their are no consequences to actions. This is what you get when laws and not considered sacrosanct and EVERYONE, and I mean EVERYONE is held accountable under that law. This is what you get when the motto is, to quote 50 cent, get rich or die tryin'

What an absolute joke the whole system has become. 

Sure Cramer this is bullish for home prices! 

You know what be bullish for this market? Bringing back the guillotine. 

That might restore some trust to the whole process or in the least instill some fear in the masters of the universe. Heck, why not? The pendulum swung way over to the left where anything and everything went, thugs like Angelo Mozillo, Hank Paulson, Rob Rubin, Sandy Weil and the like were large and in charge and untouchable. 

I have been very outspoken against the banks and their practices that were and are laced with fraud, malfeasance and corruption in search of max profit and max bonus' but I want to make something crystal clear right here and now. 

As a homeowner, if you lied on your mortgage app you should be prosecuted to the fullest extent of the law. 
If you didn't pay your mortgage you should be foreclosed on and your sorry ass should be thrown out on the street. 

It is not the banks fault, OR WHOMEVER LEGALLY OWNS THE NOTE to your home that you bought a home for $700k with no money down, neg-am, adjustable rate mortgage, borrowed your closing costs, only to see 9 months later you could refi and then took out a HELOC for another $25-50K which you then used to buy a pair of Kawaski jet-skis, a holiday in Hawaii or whatever other toy you never could never have afforded without uncle Greenspan doling out the credit heroin. 

It is no one else's fault but your own you bought that $700k McMansion when you knew you could afford a $175-225K home McFly.

Maybe you should call that college or university you went to and ask them why they didn't teach you what negative amortization was, or compound interest or what happens when you cannot refi. Maybe that's where you should direct you anger or better yet you can look in the mirror if you like. That is, when you have time, maybe during a commercial at some point on American Idol or Dancing with the Stars.

What the bank did with your note after you signed is irrelevant to the discussion. consider yourself lucky we don't have debtors prisons. I ask, yet again, is there an ETF to go long lawyers cause it looks like a healthy bull market.

Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

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