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A home foreclosure in Denmark starts a freeze nationwide. Should people who do not or cannot pay their mortgage be foreclosed upon??
Did GMAC breach their contract with Mrs. Bradbury?
This scenario is all too familiar in the current economy.
from-a-maine-house-a-national-foreclosure-freeze: Personal Finance News from Yahoo! Finance (http://finance.yahoo.com/real-estate/article/111040/from-a-maine-house-a-national-foreclosure-freeze?mod=realestate-buy - broken link)
A home foreclosure in Denmark starts a freeze nationwide. Should people who do not or cannot pay their mortgage be foreclosed upon??
Did GMAC breach their contract with Mrs. Bradbury?
This scenario is all too familiar in the current economy.
from-a-maine-house-a-national-foreclosure-freeze: Personal Finance News from Yahoo! Finance (http://finance.yahoo.com/real-estate/article/111040/from-a-maine-house-a-national-foreclosure-freeze?mod=realestate-buy - broken link)
I doubt if this foreclosure freeze business is anything but a postponement of the inevitable.
Because we can be sure Washington will find a way to prevent people from getting free houses at the expense of Washington's bankster friends.
Of course the Washington can fix it so people get free houses at the expense of us taxpayers, then Washington will be happy to arrange it, I'm sure.
A unemployed employment-counselor lives in a shack 'worth' $75k, GMAC has already spent $75k in legal fees trying to foreclose and has received $15Billion in bailout money. Something does seem twisted.
In our apartment building, our tenants lost their jobs and stopped paying rent. We no longer had income to cover our mortgage. We put it on the market and tried to sell it, but our mortgage holder refused to allow the property to sell [even though they would have fully recovered every penny they were due]. So then we contacted our mortgage holder and offered to sign a deed-in-lue-of-foreclosure to give them the property. They refused to accept the deed. They told me that they would rather sue us for the deed, in the hope of getting bail-out money in the process. We hired legal representation and he told us that our mortgage holder will spend far more money in chasing this through the courts than our apartment building is worth.
I fully support the idea that when folks stop paying for their home, it should go back to whoever holds the mortgage. However in today's environment mortgage companies are no longer interested in simply foreclosing or getting the deed. Today they want Bailout money.
WOW what a topic! In more cases than not, the mortgage has been securitized and the bank collecting the payments is not the "lender", just the servicer. If you look over your loan docs, and see the mortgagee listed as MERS (Mortgage Electronic Registration System), you know you're in that boat! You simply cannot find out who holds your promissary note! If you call your servicer to arrange a short sale, they won't know what to tell you. If you ask them who owns the promissary note, you'll get referred to MERS. And 'round and 'round the mulberry bush it goes.
I believe that anyone who owes a debt should pay that debt. I also believe that the big banks and mortgage lenders are being less than honest about their securitization shenanigans. And lastly, I believe that the LAW should always be followed, especially in courts where most of this tragic battle is being fought. The banks are not following the law in many cases; when that happens, I side with the homeowner, especially if they are unemployed.
In all cases, I sympathize with the poor souls who invested in this toxic, witch's brew of debt. They will be the big losers in all of this!
People who don't pay the debt don't have a clue what will actually happen to them if they fail to pay. Even if they avoid jail or having their wages garnished, they will for at least 20 year NEVER EVER EVER be able to get anything on credit. No gas cards, no bank cards, no bank loans for anything, no car loans, not even department store credit accounts. Nothing.... for a very very long time.
The reality is that if you murder someone and escape, after three or four years they will stop looking for you. If you steal money from a bank or an institution, the will hunt you down for the rest of your natural born life, and you will have to successfuly fake your death to get away from them.
When you buy a home and give back a mortgage, there are two very important documents you sign. First is a "mortgage deed". Then comes a "promissory note". The mortgage deed allows the bank to take over the property if you default. The promissory note is your personal guarantee to pay the debt. If you are ever unable to meet your obligation and have to sell under a short sale or the bank repossesses the property, be absolutely sure they sign off on your promissory note BEFORE you sign the release deed. Otherwise you will be without the house and still owe the balance on the note.
WOW what a topic! In more cases than not, the mortgage has been securitized and the bank collecting the payments is not the "lender", just the servicer. If you look over your loan docs, and see the mortgagee listed as MERS (Mortgage Electronic Registration System), you know you're in that boat! You simply cannot find out who holds your promissary note! If you call your servicer to arrange a short sale, they won't know what to tell you. If you ask them who owns the promissary note, you'll get referred to MERS. And 'round and 'round the mulberry bush it goes.
I believe that anyone who owes a debt should pay that debt. I also believe that the big banks and mortgage lenders are being less than honest about their securitization shenanigans. And lastly, I believe that the LAW should always be followed, especially in courts where most of this tragic battle is being fought. The banks are not following the law in many cases; when that happens, I side with the homeowner, especially if they are unemployed.
In all cases, I sympathize with the poor souls who invested in this toxic, witch's brew of debt. They will be the big losers in all of this!
I tend to agree.
Our mortgage was sold to GMAC a few years back. I was incensed. I told People's that if I wanted GMAC to hold my mortgage, I'd have gone with them in the first place. I was pretty much told "tough luck." GMAC was the biggest pain in the rear to deal with.
Fortunately, I was in the position to go to Bangor Savings Bank and refinance. I was informed by them that although they reserve the right to sell mortgages, they rarely do, and if they do, they maintain the servicing rights, and I could always go to them with any issues regardless.
I think that people should pay their bills, but I also think there is little doubt that predatory practices played a HUGE role in this whole mess to begin with.
"All of this is largely because Mr. Cox realized almost immediately that Mrs. Bradbury's foreclosure file did not look right. The documents from the lender, GMAC Mortgage, were approved by an employee whose title was "limited signing officer," an indication to the lawyer that his knowledge of the case was effectively nonexistent.
Mr. Cox eventually won the right to depose the employee, who casually acknowledged that he had prepared 400 foreclosures a day for GMAC and that contrary to his sworn statements, they had not been reviewed by him or anyone else.
It has been two years since she last paid the mortgage, which surprises even her lawyers. Is this justifiable? Nope. Not right at all.
"Had GMAC followed the legal requirements, she would have lost her home a long time ago," acknowledged Geoffrey S. Lewis, another lawyer handling her case. Talk about waste.
Fannie Mae and GMAC, which serviced the loan for Fannie, have now most likely spent more to dislodge Mrs. Bradbury than her house is worth. Yet for all their efforts, they are not only losing this case, but also potentially laying the groundwork for foreclosure challenges nationwide. Our tax dollars at work ??
GMAC, which began as the financing arm of General Motors, has received $17 billion from taxpayers in an effort to keep it from failing and is now majority-owned by the federal government. A spokeswoman for the lender declined to comment on Mrs. Bradbury's case because it was still being litigated." So, why were they "failing" in the first place?
That's what froze it - not simply the inability for the client to pay it. Granted, she should have given it up if she couldn't pay for it, so there's blame on both sides.
Let's not simply read "government bailout" into this situation. I think there's a little more to it.
The problem is that the more people are bailed out and the more chances and excuses that are made for people who don't pay their bills, the more it will encourage others to do the same. The same can be said for these banks...they are all looking to get some bailout money. There are a lot of people out there that I feel don't want to take any personal responsibility for anything. Everything that happens now-a-days is blamed on someone or something else. This "robo signing" business is BS...it never should have happened...but it did happen and it was caused by too many people not making their payments. Some people that haven't made their payments have stopped for a legitimate reason and for those people that have a legit reason for not paying I feel for them. However there are other people out there who are taking advantage of the situation and see that there will be no real recourse so they just stop making the payments.
This woman that is losing her home signed the paperwork for the mortgage...she signed it saying that she would make the payments. She lost her job, her husband fell ill...those are normal life occurances for a lot of people. I'm not trying to sound like a cold hearted jerk...but the bottom line is she didn't pay her mortgage for 2 years straight...she should not be entitled to a free piece of property. When I buy a new car or when I bought my house I look for a vehicle or a house and I think ahead about the payments. Do I buy a $50,000 car just because I can afford it right now? No...I keep in mind that at any given time I could lose my job, I could fall ill something could happen. If I were to lose my job right now, sure I would have a hard time...I would have to give up some of the extra things that I have...but I could go work a job at McDonalds and still be able to make my mortgage.
I'm in no way sticking up for the banks...because they obviously aren't always in the right. If they would do a better job of working with people then a lot of these foreclosures wouldn't be necessary. There are people that fall on hard times for a short period and just need some time to gather themselves...those people should be worked with, especially if they have been good customers right along.
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