The foreclosure ripoff

Last month, I wrote a post about the foreclosure problem here in Florida and across the nation. When the financial problem began, I was a part of the crowd that was drinking the Conservative Kool-Aid and blaming government regulation and interference, with a heaping helping of blaming people for taking out loans they could not afford.

I have since reevaluated that position. There is blame enough for everyone, and the biggest crooks here are in the Nation’s Financial Sector. Let me walk you through this (all names used here with the Exception of MERS are fictional for illustrative purposes, and are not intended to represent real or imagined people or businesses):

First National Federal Bank of Florida makes a loan to the Smith family so they can buy a home. That loan is written down as a “note” and the “note” is secured by a mortgage on the Smith home. The Mortgage states that if the note is not paid, the owner or holder of the note is entitled to force the sale of the home, and the proceeds are used to pay off the note, with the balance of the funds going to the Smiths. The mortgage is recorded at the County Clerk’s office as an official record for about $10.

The bank sells that loan to a trust, where it is securitized, bundled with a few hundred other loans, and resold as an investment to the Franklin Secure Real Estate Investment Trust. The bank has made their money, and their risk is covered. There is no incentive for First National Federal Bank of Florida to make sure that the Smiths can pay the note, because the note will be sold long before the Smiths default. The only real motivation for the bank, is for them to originate as many loans as possible, and sell them quickly before they default. That is how an assistant manager at McDonalds qualifies to buy 5 houses.

The Franklin Secure REIT sells the notes to Richards and Company Investment REIT, who sells them to the Wells and Frederick REIT. The consumer never knows this, because the note is still serviced by the First National Federal Bank of Florida, who takes their payments and forwards them to the owner through a shell company (more on that in a minute).

There are thousands of mortgage transfers made each day in Florida alone, and continually recording these transactions at the County Clerk’s office at $10 a pop is costing banks $600 million a year. They decide that there MUST be an easier way. This is the “way” that they came up with:

So, in 1999 a Corporation called Mortgage Electronic Registrations Systems (MERS) was formed. MERS is a shell corporation that is jointly owned by the Nation’s large banks, has no financial stake in the real estate mortgages, but mortgages are all registered to MERS, and the 44 employees of MERS keep track of who actually owns what Mortgage. MERS is the registered holder on over 55 million mortgages. They avoid the $10 fee, and save the banking industry billions. The problem is that they have taken our Nation’s Public records system, and made it so no one knows exactly who owns what, and during all the transferring that went on, the original note is lost. This makes it impossible in many cases for a bank (any bank) to prove they own the note, but that doesn’t stop them from trying.

This allows mortgage fraud on a scale that was unheard of for the thousands of years of property law that existed before MERS came along. Fake assignments, contracts, affidavits, and other evidence has been used to take homes that banks had no right to take.

The reason why I support people fighting this is that since no one knows for sure who owns what, there is a chance that settling with who you think is the owner of your mortgage may result in the REAL holder taking your home when the note IS eventually found, or may result in more than one bank claiming that you owe them money. In one case here in Lee County, Florida, a homeowner was foreclosed upon by two different banks, both of whom claimed to be the owner of the mortgage and note, and both of whom had paperwork and “evidence” to prove it. (The cases are American Home Mortgage Servicing v. Joanne Fredenburg Case 08-CA-050001, and Deutsche Bank National Trust Co. v. Joanne Fredenburg Case 08-CA-051319)

There will be more to follow on this…

Congress doesn’t care about the Constitution

Listen. at 44 seconds, “I don’t care about the Constitution.”

When confronted about the statement, he says: “It says that we all have the right to life, liberty, and the pursuit of happiness.”

The reply, “That is the Declaration of Independence.”

The congressman: “It doesn’t matter to me. Either one.”

Here is the secret: No one is dying because they can’t be seen at a hospital. There is already a law in place that requires emergency departments to see you whether you can pay or not. It is called EMTALA, the Emergency Medical Treatment and Active Labor Act. No one can legally be refused care because they don’t have insurance. The hospitals are not aggressive about pursuing payment, either.

I have patients that have been taken to the emergency room hundreds of times in the past few months, some of them occasionally go to the ER 5-8 times a day. My record is taking the same person to the ER 9 times in one day. That patient has NEVER paid a dime for either the hospital visits or the transport.

Anyone who tells you that this bill is about health or about care is a liar. Wanna see what health care will look like under Obama? Click here and look at what he is doing to the auto industry.

This is about the government controlling every facet of your life. Obama controls the financial sector, manufacturing, and now he has his sights set on health care.

Dealing with bullies

This article astounds me. Who ever this Barbara Coloroso is, she is a fool. In her book, this supposed expert claims that you should teach your children to never fight back against a bully. The comments on this thread are even better:

Here is a simple way to stop a kid from bullying your child: File a civil suit against the Parents of the bully(s) File the case under “harassment” and seek monetary damages.

The American answer for everything: sue, sue, sue.

Reading these situations…if they were to take place in the adult workforce – it would called SEXUAL HARASSEMENT.

The female answer for everything: the sexual harassment trump card. If you don’t like something someone does or says, scream harassment. That will usually get them in hot water or fired, and you don’t need to prove anything.

One of the most important things a bullied kid needs to realize is that the way the person treats you shows you what kind of a person he/she is, not what kind of a person you are.

This is akin to saying “sticks and stones,” and that is really no help when you are getting the tar beaten out of you.

When I was a kid, I was picked on a lot. With an IQ of 144, I was in the 99.83th percentile. When I was in the 7th grade, I was tested on math and reading skills and maxed out the test: College Junior. It may have been higher, but the test scale went no higher, so there was no way to tell.

I was picked on and called geek, nerd, etc. Even the teachers sometimes participated. The abuse would sometimes get physical. It was so bad that I would not let my children be placed in a so-called gifted program when they were in school. When the abuse turned physical, there was one thing that stopped it EVERY TIME: I learned to fight back. When the abuse turned physical, I punched the bully in the face. To my parent’s credit, they went to school and defended me against the “zero tolerance” rules that the school had against fighting.

I did the same for my kids. When my son was in the second grade, he came home crying because a fifth grader was beating him up on the recess yard. I went to the school and was told that the teachers can’t be everywhere, and that they couldn’t discipline the bully unless they saw it happen. My son, who was playing Pop Warner football at the time, was told that the kids on the football team were larger and hit harder than this bully did, and the next time it happened, he should fight back.

He told me that the teachers were teaching them that fighting was wrong, and that the policy was that both students were to be disciplined if a fight broke out. I told him that I would take care of the teachers, and that he should never start a fight, but if a person attacks you, you should defend yourself.

Several days later, I was called to the school because my child had beaten the bully pretty badly. The kid went crying to the school office. When I got there, I saw that the child was twice the size of mine. The school wanted to suspend my son. When I asked them if a teacher had seen the fight, they replied that no teacher had actually seen it. I then pointed out to them that they told me that if no one had seen the event, they couldn’t do anything.

“After all,” I said, “teachers can’t be everywhere.” (is that like the saying that the police can’t be everywhere?) I then told them that I would never raise my child to be a dysfunctional adult that knuckles under every time someone attacked them, and I certainly would not teach my child to stand there while someone beat the tar out of them.

The bully never touched my son again. In the same vein, that is why my son received a .45 caliber handgun from his Dad for his 21st birthday. He has a concealed weapons permit, and carries that pistol frequently. The schoolyard bullies of yesterday are the violent criminals of today.

Well, sometimes they get jobs as cops, but that is a story for another day…

Edited to add: All of this “don’t fight back” nonsense forces kids to bottle up their hostility and resentment at being picked on until they snap. I believe these policies are the reason why good kids who are bullied go on shooting sprees. See Columbine. Reminds me of the Pearl Jam song Jeremy.

Florida’s foreclosure crisis

Millions of Floridians are losing their homes due to foreclosure. It would be easy to just say “pay your mortgage, deadbeat” as many people have, but things are not as easy to solve as that statement would indicate. Matt Weidner, a Tampa area attorney, has a blog that spends a good deal of time and bandwidth explaining the problem:

The lenders of Florida, and the firms that bought mortgage backed securities, have traded, sold, spindled and mutilated the mortgage notes and mortgages in this state in such a fashion as to make it impossible for anyone to determine or prove who owes what to whom. When confronted in court, many of the lenders and their attorneys are manufacturing the evidence they need to take the home. They have been caught doing this so often that the Florida Supreme Court had to issue rules that apply to these foreclosures in an attempt to curb some of the lies, fraud, and manipulation that is going on.

Reading Mr Weidner’s blog made me truly understand why the mortgage, insurance, and bank failures that caused our current recession occurred. The banks and mortgage lenders have been lying, cheating, and stealing their way to billions in undeserved profits by enticing lawmakers and the courts to game the system in their favor.

Now we come to the reason for this post. As the courts begin to catch on to the fraud being carried out here, the banks are beginning to lose foreclosure cases all over the state. They have responded by getting legislators to introduce a new bill ironically called Florida Consumer Protection and Homeowner Credit Rehabilitation Act. The purpose of this proposed law is to change Florida from a Judicial foreclosure state (requiring a bank to take you to court to in order to take your home, thus allowing you your day in court) to a non-judicial foreclosure state, essentially allowing people using “Operation Repo” style tactics to take your home without you ever getting your day in court.

If you think things are going to improve in our economy anytime in the near future, you are sorely mistaken.

Glen Frey

The sailors and pilots,
The soldiers and the law,
The pay offs and the rip offs,
And the things nobody saw.

That song is in my head this morning because of the backdoor deal that convinced anti-abortion senator Stupak that his morals were for sale. Just what is the going price for a senator these days?

$726,409 more or less. That is the total grant money being given to three airports in his district.

I have to ask- why were airport grants included in a healthcare bill? And why didn’t the healthcare bill include- well, healthcare? See, the Dems were so busy passing out the pork, they forgot to include helathcare in the bill.

Doubt Global Warming? You should be shot

At least that is what James Cameron thinks:

The “Avatar” director was equally unsparing in his comments about those who don’t accept global warming as fact.

“That’s right,” Cameron said. “I want to call those deniers out into the street at high noon and shoot it out with those boneheads.”

Turning more serious, he added: “Anybody that is a global-warming denier at this point in time has got their head so deeply up their ass I’m not sure they could hear me.”

Of course, any person who disagrees with him would be persecuted by the media for daring to suggest that this pompous windbag should be shot. I doubt he even knows which end of the gun gets pointed downrange.

Of course, James Cameron, like the rest of the rich and famous global warming crowd, thinks that being green only applies to the peasants. After all, he wants to fly into space, and launching his ass into space will take tons of CO2 generating rocket fuel. He regularly flies to Japan, Hawaii, and Rome, and then demands that I bicycle to work, and sweat without air conditioning in the Florida summer. Who exactly has his head up his ass? Either he is an elitist douchebag, or a liar.

Mr Cameron- I am a “denier” and I accept your challenge. I will even loan you a gun, since I am sure that your left wing, liberal, douchebag ass doesn’t own one.

I will even make accommodations for your political beliefs. I will let you use a .22 revolver, so you can stay away from those semi-automatic killing machines.

I will use an evil assault rifle.

Rules as follows:

We stand on a football field with our backs to the goal posts. You shoot first. I will let you empty your gun, then it is my turn.

Interesting

In an earlier post, I wondered why the Democrats were taking the self-defeating position of trashing their own popularity to make healthcare happen.

Others are beginning to wonder the same. For example, is illegal amnesty going to be used to keep the Democrats in office?

Will Obama simply pack the Supreme Court?

Both? Neither? What does the future hold for our Republic? Whatever it holds, I don’t think it will be good. The debt load we have is unsustainable, and spending money to finance free health care for millions more will not improve it any. We will be nearly $14 trillion in debt by the end of this fiscal year.

Factcheck is not about facts.

One of my most viewed posts is the one about how Clinton did NOT balance the budget. Factcheck.org calls me a liar, and says that he did. They say:

there was a surplus of $1.9 billion in fiscal 1999 and $86.4 billion in fiscal 2000. So any way you count it, the federal budget was balanced and the deficit was erased, if only for a while.

Well, according to the Treasury Department, if you exclude Social Security, the National Debt on Oct 1, 1998 was $5,540,570,493,226.32 ($5.540 trillion), and the Debt on Sept 30, 1999 was $5,656,270,901,633.43 ($5.656 trillion). Any way you look at it, that is a deficit of $115 billion for FY 1999.

The debt at the end of FY 2000 was $5,674,178,209,886.86 ($5.674 trillion), which gives a deficit of $18 billion. In all, the US Debt increased by $1.3 trillion under Clinton, or 130% of what it was when he assumed office eight years before.

Now I realize that the $4.9 trillion spent during the Bush administration (185% increase over 8 years) and the $2.1 trillion (129%) increase of the Obama administration in his first 26 months makes an $18 billion deficit seem small, but the point is that the Clinton administration did NOT balance the budget, did NOT show a surplus, and I will not trust a word that comes from the so-called factcheck.org.

As for the CBO, I have this to say: Only a Government agency can look at an increasing debt and conclude that they are running a surplus.

Repeal? Not likely

There are many people all over who are bleating on about how the Republicans are going to get elected and will repeal the unpopular healthcare bill. There are a few reasons why I do not believe this will happen:

1 The Republicans owned Congress and the Presidency during the first part of the Bush administration. How many Democrat laws did they repeal? Not one.

2 Even if the Congress falls out of Democrat hands, there is no way that Obama will sign any repeal into law. This means that the Republicans will need a 2/3 majority in BOTH houses of congress to override the veto.

What does this mean?

The Republicans need to gain 26 seats in the Senate, and 110 seats in the House. Historically, the party that holds a seat, keeps that seat over 90% of the time.

Even so, there are only 18 Democrat Senators coming up for Reelection. That means that there is NO WAY that the Republicans can have more than 59 seats in the Senate, and that assumes that all 18 Republicans running keep their seats, and all 18 of the Democrats lose theirs.

Therefore, there is no way that the healthcare plan will be repealed.