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American Couple And 9 Kids Reclaim Foreclosed Home

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Unfortunately, surreal stories like this will very soon become daily news. As was pointed out yesterday, Simi Valley has just seen the first case of a forced reclamation of a foreclosed home, after Jim and Danielle Earl took their nine (9!) children, ages 9-23, and a locksmith and broke into the six-bedroom house that had been foreclosed upon for lack of payment, and on which the couple owed $880,000! And where would such brilliant advice originate from? Why, the couple's lawyer of course, who will one day be seen as the prophetic visionary who stole the bankers wealth from underneath them and handed it out to America's millions of starving lawyers, one billing sheet at a time: "The move was recommended by their lawyer" as the WSJ suggests. Already in process: millions of cases identical to this one, billions in legal fees, and hundreds of billions in lost market value of associated equity and credit instrument, not to mention very unpleasant days for LPs in "Recovery" funds.

More on the family:

The Earls paid $500,000 for the house in 2001 and then refinanced to pull out cash. They fell behind on their mortgage and at the time of their eviction they owed about $880,000 on a no-interest mortgage.

Investors at Conejo Capital bought the house for $697,000 at a lender’s trustee sale and put $40,000 of work into a remodel, replacing carpeting and appliances, as well as upgrading the kitchen. They flipped it to new buyers for $800,000. Those buyers were supposed to move in this week; those plans are on hold.

The Earls claim that they were working with GRP Financial Services to catch up on payments, but discovered a $25,000 difference between what they believed they owed and what the bank said they owed. They then stopped making payments.

“This is only the beginning of this,” the Earls’ attorney, Michael Pines tells KABC News. “I chose this family because we needed to get back in before the investor and the real-estate broker defrauded a new family by having them move in, which would have created a bigger mess. (The Earls) have done absolutely nothing wrong.”

I just loved Zero Hedge's summing up:

So there you have it: people who owe $880,000 on their mortgage believe it is their right to reclaim homes. We will avoid any ethical commentary on this, suffice to say that it is the bankers who in the greed and stupidity have managed to dig themselves into what could be a hole so deep not even TARP 2-XXX can dig them out of.

Full story plus video at:

http://www.zerohedge.com/article/meet-danielle-and-jim-plus-9-squatters-who-reclaimed-their-foreclosed-home-over-weekend

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This is the start of the big one, isn' t it? If I'm right, then the big tipping point will not only be unexpected source (check), but will have supremely poetic justice built in. Delicious. Popcorn time.....

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This is the start of the big one, isn' t it? If I'm right, then the big tipping point will not only be unexpected source (check), but will have supremely poetic justice built in. Delicious. Popcorn time.....

Yep. :lol:

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Isn't this just chaos?

The overindebted get a free house, mortgage credit vanishes so hardly anyone can buy at anything above 20% of previous value, so hardly anybody will sell, the rich get to buy up those that do come to market at pennies in the pound, banks are all insolvent, savers asnd investors discover they have no money after all, imported prices soar, domestic prices plunge etc etc etc and the rest.

Where am I wrong on this?

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Interesting development. There are plenty of familes in the U.S who were forclosed now living in cr4ppy shelters and the like. If returning to property and 're-claiming' it catches on and becomes a new phenomenon I can see lots of social unrest.

It's easy for Bill to be angry with some Wall Street banker who's basically a million miles removed but when Hank down the street shows up to reclaim his mortgage free house, the same house Bill is struggling to pay his mortgage on? Oh dear!

Also what happens to FamilyB when FamilyA attempt to reclaim the forclosed house that FamilyB bought at a discount price? "C'mon y'all hitch up & move on in!" Voila! FamilyC, errr......I don't think so.

This could go primal.

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This has the makings of a big one.

The way all of the states of temporarily halted foreclosures.... It must be one almighty mess for them to even consider this.

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The leaders of the new resistance.

Honestly I think for America this is a once in a generation opportunity to transfer wealth to the people. Just allow the bondholders to sell the mortgage backed bonds to the Fed at a discount.. then the fed chooses not to pursue the debtors. Besides reporting the defaults to the credit rating agencies.

Edited by aa3

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Isn't this just chaos?

The overindebted get a free house, mortgage credit vanishes so hardly anyone can buy at anything above 20% of previous value, so hardly anybody will sell, the rich get to buy up those that do come to market at pennies in the pound, banks are all insolvent, savers asnd investors discover they have no money after all, imported prices soar, domestic prices plunge etc etc etc and the rest.

Where am I wrong on this?

they still owe the $880k.

Its just the banks lied to force the issue...and have been caught out.

Im wondering why the Police arent arresting the foreclosers?

Identity theft is a big issue with the banks...they come after these people with police and dogs and guns....now, this Bank lied about its ID or its entitlement to a COURT of Law....in order to gain a Pecuniary Advantage.....thats fraud, and it may have been deliberate in this case....It certainly was in many others Ive read about.

Thats another 880K than some MBS holder ( might be RBS, or MY pension fund)..isnt going to get. Leverage that 20 times into a CDO and then another 20 in a CDO squared, and we have $352,000,000 of financial assets now UNBACKED, and with NO income.

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The leaders of the new resistance.

Honestly I think for America this is a once in a generation opportunity to transfer wealth to the people. Just allow the bondholders to sell the mortgage backed bonds to the Fed at a discount.. then the fed chooses not to pursue the debtors. Besides reporting the defaults to the credit rating agencies.

missing the point again.

the bondholders have no provable RIGHT to foreclose...they DONT hold the mortgage.

the FED therefore would have no claim either.....

And whp pays for the shortfall if the bondholders are paid out of the fed....of course, the very people you say will get the wealth!

Its a mess......no wealth is being or has been created in ANY of these transactions....

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Im wondering why the Police arent arresting the foreclosers?

Because the foreclosers are the wealthy ones and it appears that is all that matters in the good old U.S. of A.

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Because the foreclosers are the wealthy ones and it appears that is all that matters in the good old U.S. of A.

"ah, Diversity may have some benefit....Promote some Hispanics and Blacks Miss Jones"..says Bob Dimon.

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As it stands now the mortgages in the bonds appear to be unsecured lines of credit. If the people refuse to pay, the holders of the bonds can report their delinquincy to the credit ratings agencies.. and write the couple a letter urging them to pay up.

And after 7 years by law the default on the mortgage would fall off their credit report.

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Americans own guns and have form when it comes to revolutions. They might decide to just take their country back. :unsure:B)

At some point the people revolt against the looting. 7 million Americans are currently behind on their mortgages, this in a nation of 80 million houses. With hundreds of thousands falling behind every month!

At some point there is a critical mass where it is too much, and the people just refuse to keep playing by the corrupt rules. And even organs of the state refuse to play along.. like the attorney generals in these states who have stopped all foreclosures.

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As it stands now the mortgages in the bonds appear to be unsecured lines of credit. If the people refuse to pay, the holders of the bonds can report their delinquincy to the credit ratings agencies.. and write the couple a letter urging them to pay up.

And after 7 years by law the default on the mortgage would fall off their credit report.

they are still lines of credit....somebody owns the paperwork....it will be the first one in the chain..probably the servicer.

The resolution to this is a few busted major banks, some prison cells, and some repayments.

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they still owe the $880k.

Didn't the repo sell for $697K?

So they owe <$200K?

And now there's the suggestion that the feckless will get off scot free because the evil-weevil banky-w@nkys were nasty-wasty.

What a great result, NOT.

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Didn't the repo sell for $697K?

So they owe <$200K?

And now there's the suggestion that the feckless will get off scot free because the evil-weevil banky-w@nkys were nasty-wasty.

What a great result, NOT.

apparently it didnt actually sell...the bankster pretended he had title, but it turns out he didnt.

so, still 800K plus interest.

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Investors at Conejo Capital bought the house for $697,000 at a lender’s trustee sale....

They flipped it to new buyers for $800,000. Those buyers were supposed to move in this week; those plans are on hold.

Looks like the $800,000 flip didn't reach completion so a lucky escape and not only did the family move back in to the house it was renovated

But another $697,000 frozen from the Conejo Capital purchase possibly subject to dispute on title and $40,000 spent on renovations as well. This is getting interesting :o

Anybody such as the "lender" above who has actually got a sale likely isn't going to be refunding the money just like that even if there's doubt they had the title.

There's going to be crowds of investors likely plus the servicer etc with each saying "it's mine" "no its mine" "no it isn't its mine" almost ad infinitum - some will be saying the reverse. Then there'll be the investors etc trying to get out claiming they've been defrauded etc. Who sues who to gain the title etc. That's if the documents haven't been lost :lol:

And did the investors at Conejo Capital who bought the "repossessed" house have a mortgage loan that was put into a mortgage backed security :lol::lol::lol::lol::lol::lol:

Edited by billybong

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Thats another 880K than some MBS holder ( might be RBS, or MY pension fund)..isnt going to get. Leverage that 20 times into a CDO and then another 20 in a CDO squared, and we have $352,000,000 of financial assets now UNBACKED, and with NO income.

how will this affect currecny devaluation that the US, China, Brazil etc are all trying to out do each other with?

what happens if China owns these debts?

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Good on 'em I say and to exploit the (deliberate?) mistake of the gangsters who shackled them up in the first place. Why should any productive person submit to being a slave just for the right to have a roof over their head and to benefit the pension fund of some boomer who expects their lifestyle to continue beyond retirement? If this catches on we'll soon see if the system (which is outnumbered by the millions of landless peasants) can cope. Perhaps they'll (the banking-military-industrial-complex) resort to some dirty trick like an engineered pandemic or false flag terror attack.

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  • 143 Brexit, House prices and Summer 2020

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