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Snugglybear

Obama Will Not Ban Home Repossessions

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From the BBC news website http://www.bbc.co.uk/news/business-11525545

The White House has ruled out a temporary ban on the repossession of homes, despite a growing row over alleged malpractice.

Some US banks have already imposed their own moratorium on foreclosures while they investigate possible legal flaws in the eviction process.

Amid claims that shoddy paperwork led to wrongful repossessions, calls have grown for a nationwide moratorium.

But a White House spokesman said this could have "unintended consequences".

Last week, Bank of America said it would extend its ban on sales of repossessed homes from 23 US states to all 50.

JPMorgan Chase and Ally GMAC Mortgage have suspended foreclosures in 23 states.

At issue are claims that foreclosure documents were signed off without proper checks and people were wrongly evicted.

BoA is looking into whether homes were repossessed by so-called "robo-signers" and other automated processes, whereby mortgage company employees or their lawyers do not thoroughly verify the information in them.

With banks expected to take over a record 1.2 million homes this year, up from about one million last year, according to the real estate data company RealtyTrac, the foreclosure issue is a hot political potato.

"American families should not have to worry about losing their homes to sloppy bureaucratic mismanagement or fraud," said Senate Banking Committee chairman Christopher Dodd last week.

He also announced that the committee would hold a hearing next month to look into mortgage servicing and foreclosure processing.

However, on Tuesday White House spokesman Robert Gibbs said that a temporary ban could have an unforeseen impact on the ailing US housing market.

"There are a series of unintended consequences to a broader moratorium," he said. President Barack Obama's administration was determined to "get to the bottom of" a problem of hasty foreclosures.

But Mr Gibbs added: "We want to take the just and necessary steps to ensure that the process is being followed legally. At the same time, we don't want to see broader harm done to the housing market and to the housing recovery."

Critics of a moratorium have warned that it could penalise pension funds, insurance companies and other investors, making new loans more expensive.

Investors seeking to recover bad loans might be prevented from doing so, critics argue.

Tim Ryan, chief executive of the US Securities Industry and Financial Markets Association said on Monday: "It is imperative... that care be taken in addressing these issues to ensure that no unnecessary damage is done to an already weak housing market and, in turn, that there is not further negative impact on the economy."

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'.........calls have grown for a nationwide moratorium. But a White House spokesman said this could have "unintended consequences".

Yes, I can imagine it now. Droves of people especialy those already in arrears simply stopping paying their mortgage.

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Seemingly now even the legality of situations (or lack of legality) doesn't matter in the US. Oh dear if the legality might affect the housing market so deal with it by spouting hot air i.e. in reality just ignore it - ideal for fraud and crookedness.

Edited by billybong

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Obama is delusional. This is a matter for the states.

I have a better idea.

the owners/occupiers should only be liable as a percentage of leverage of the total bank credit bubble.

ie,if JPM leverege out their books at 10 to 1,then if a homeowner buys a $500k home from them on a ninja,then they are only liable to pay $50k to service the debt,the rest will have to be footed by the greedy bank.

if Joe bloggs mortgages sold the one next door also for $500k,but was only prepared to do the deal with a 25% deposit(or 4 to 1 leverage),then the homeowner has to cough up $125k..

this way the most risky speculators will have to take responsibility,and will ensure in future that banks want to keep a reasonable amount of credit in reserve.

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why would he need to BAN them?

due process is now taking place...incorrect or missing docs....no foreclosee.

attempt one and its perjury.

marvelous...a new law ISNT needed for every situation..

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I have a better idea.

the owners/occupiers should only be liable as a percentage of leverage of the total bank credit bubble.

ie,if JPM leverege out their books at 10 to 1,then if a homeowner buys a $500k home from them on a ninja,then they are only liable to pay $50k to service the debt,the rest will have to be footed by the greedy bank.

if Joe bloggs mortgages sold the one next door also for $500k,but was only prepared to do the deal with a 25% deposit(or 4 to 1 leverage),then the homeowner has to cough up $125k..

this way the most risky speculators will have to take responsibility,and will ensure in future that banks want to keep a reasonable amount of credit in reserve.

this has nothing to do with the mortgage not being paid...thats being carried out in all these cases....or should be...its about WHO has the right to forclose.

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Actually the banks would probably want the Federal government to ban foreclosure actions. This would give them an out, and a claim for compensation, more bailouts.

49 of 50 states Attorneys Generals have launched an investigation of the major mortgage players as of today. And every lawyer who can still breath is going after the big banks in civil court.

And SIGTARP has claimed it's first perp, the CEO of Park Avenue Bank, named Antonucci, I believe. Barofsky has said more than a year ago that he has more than 40 cases under investigation. I'm certain that list has expanded.

And if it costs the US $2 or 3 trillion to get rid of the FED, it's a bargain worth paying. You see, that $2 or $3 trillion is federal reserve notes (FRN), not US notes (USN). If the Fed reserve goes, the FRN goes too. Replaced with USN.

All going swimmingly over there.

Edited by Toto deVeer

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Actually the banks would probably want the Federal government to ban foreclosure actions. This would give them an out, and a claim for compensation, more bailouts.

49 of 50 states Attorneys Generals have launched an investigation of the major mortgage players as of today. And every lawyer who can still breath is going after the big banks in civil court.

And SIGTARP has claimed it's first perp, the CEO of Park Avenue Bank, named Antonucci, I believe. Barofsky has said more than a year ago that he has more than 40 cases under investigation. I'm certain that list has expanded.

And if it costs the US $2 or 3 trillion to get rid of the FED, it's a bargain worth paying. You see, that $2 or $3 trillion is federal reserve notes (FRN), not US notes (USN). If the Fed reserve goes, the FRN goes too. Replaced with USN.

All going swimmingly over there.

It strikes me that any Americans who actually pay their mortgages must be daft since the likelihood is that they are not paying the right people.

Any evidence that this sort of fraud has gone on in the UK. I can't believe our bankers are more honest than American ones.

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the whole US mortgage mess looks, to a casual observer, like it's about to become a much bigger mess. if i remember the timescales correctly the Alt-A resets have barely kicked in yet.

a smorgasbord of articles...

Meet The Foreclosure "Experts": Hair Stylists, Walmart Floor Workers And Assembly Line Workers, All Hired To "Defraud Homeowners"

http://www.zerohedge.com/article/meet-foreclosure-experts-hair-stylists-walmart-floor-workers-and-assembly-lines-workers-all-

Florida's 30-Second Foreclosure Dash Hits Wall of Fraud Claims

http://www.bloomberg.com/news/2010-10-13/florida-s-foreclosure-rocket-docket-may-slow-to-a-crawl-with-fraud-claims.html

JPMorgan has suspended repossessions in 23 states amid allegations that homes have been taken back without the necessary paperwork being properly checked

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8062278/JPMorgan-chief-defends-home-foreclosures.html

BAC, WFC Credit Continues To Deteriorate As Investors Increasingly Price In Foreclosure Fraud Risk

http://www.zerohedge.com/article/bac-wfc-credit-continues-deteriorate-investors-increasingly-price-foreclosure-fraud-risk

what a fracking debacle

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It strikes me that any Americans who actually pay their mortgages must be daft since the likelihood is that they are not paying the right people.

Any evidence that this sort of fraud has gone on in the UK. I can't believe our bankers are more honest than American ones.

Indeed

and is there any evidence UK "securities" are any different at all from the US ones in any real sense as the banks involved with them are often the same ones US/UK (or sometimes joint venture arrangements UK companies with US companies) and the things are apparently for global/international consumption and have been traded all over the world so some standardisation in financial and legal structure would likely be necessary if only for ease of assembly and for ease of comparison by rating agencies (so called) and investors.

Are UK mortgage backed securities now preferred to US mortgage backed securities as being less vulnerable to all the problems encountered with these things in the US.

Edited by billybong

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the whole US mortgage mess looks, to a casual observer, like it's about to become a much bigger mess. if i remember the timescales correctly the Alt-A resets have barely kicked in yet.

a smorgasbord of articles...

Meet The Foreclosure "Experts": Hair Stylists, Walmart Floor Workers And Assembly Line Workers, All Hired To "Defraud Homeowners"

http://www.zerohedge.com/article/meet-foreclosure-experts-hair-stylists-walmart-floor-workers-and-assembly-lines-workers-all-

Florida's 30-Second Foreclosure Dash Hits Wall of Fraud Claims

http://www.bloomberg.com/news/2010-10-13/florida-s-foreclosure-rocket-docket-may-slow-to-a-crawl-with-fraud-claims.html

JPMorgan has suspended repossessions in 23 states amid allegations that homes have been taken back without the necessary paperwork being properly checked

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8062278/JPMorgan-chief-defends-home-foreclosures.html

BAC, WFC Credit Continues To Deteriorate As Investors Increasingly Price In Foreclosure Fraud Risk

http://www.zerohedge.com/article/bac-wfc-credit-continues-deteriorate-investors-increasingly-price-foreclosure-fraud-risk

what a fracking debacle

IF the UK is in the same boat then it's no surprise that the banks in the UK have been slow to foreclose (to avoid exposing the mess they're in) with the handy excuse that they're trying to help the house owners and the government. They didn't try so hard in the last recession.

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Looks like it's going to come down to a choice between trashing their laws on property ownership or trashing their banks.

No contest- the banks will win this one- trouble is will anyone over there really own their own property in the future- or be just one late night session of congress away from foreclosure on a trumped up pretext. :lol:

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Looks like it's going to come down to a choice between trashing their laws on property ownership or trashing their banks.

No contest- the banks will win this one- trouble is will anyone over there really own their own property in the future- or be just one late night session of congress away from foreclosure on a trumped up pretext. :lol:

I think some of the states will resist.

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http://lancewiggs.com/2008/07/28/if-nobody-owns-your-mortgage-note-then-you-are-in-luck/

According to some of the comments the mortgage backed securities issue that is so widespread in the US is starting to kick off in New Zealand as well.

Amazing it’s even happening here in NZ.

A friend was telling me about her Mortgage. She was trying to refinance, had to work her way through about 4 companies to find who now owned it.

Edited by billybong

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  • 244 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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