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Meet The Squatters: Here Are The Millions Of Americans Who Live Mortgage-Free For Up To 5 Years And Counting

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http://www.zerohedge.com/article/meet-squatters-here-are-millions-americans-who-live-mortgage-free-5-years-and-counting

The topic of Americans living mortgage-free in foreclosed homes on which banks do not have proper titles is nothing new - in fact we are surprised that there isn't a robosignature app for that...yet. Neither is the fact that this ongoing reverse capital transfer provides as much as $50 billion in "rental" income for those same squatters. And while the ethical arguments for strategically defaulting on one's mortgage can get very heated on both sides, one thing is certain: the ongoing foreclosure crisis is creating a new subclass of "entitled" people, who certainly enjoy living on the back of the banks, while not paying one cent, and not vacating the premises. According to a new article by CNNMoney, some of the excesses observed within this latest demonstration of unearned entitlement are truly staggering. To wit: "Charles and Jill Segal have not made a mortgage payment in nearly five years -- but they continue to live in their five-bedroom West Palm Beach, Fla. home....Lynn, from St. Petersburg, Fla., has been living without paying for three years....In Thousand Oaks, Calif., an actor has missed 30 payments, and still, he has not lost his home...." In other words, what were once isolated incidents are becoming an epidemic, and like it or not, are creating a massive capital shortfall in bank balance sheets (after all "assets" are supposed to generate cash in most cases), which will likely involve yet another broad taxpayer bailout of these same banks that now have no recourse to do much if anything to evict these same squatters who instead of paying their mortgage (or rent), prefer to purchase trinkets and gizmos. "Some 4.2 million mortgage borrowers are either seriously delinquent or have had their cases referred to lawyers to pursue foreclosure auctions, according to LPS Applied Analytics. Of those, two-thirds have made no payments at all for at least a year, and nearly one-third have gone more than two years."

The specifics, to anyone who has been following this festering issue which threatens to create even further class resentment, are well known:

These cases can go on and on. Nationwide, it takes an average of 565 days to foreclose on borrowers in default from their first missed payments to the final auction. In New York, the average is 800 days and in Florida, where the "robo-signing" issue is particularly combative, it's 807.

If they want to fight evictions hard, borrowers can remain in their homes even longer while their cases are being worked through.

The Segals have been doing that -- in court. They bought their home in 2003 with an adjustable rate mortgage. After a few years, their monthly payments tripled to $3,000, just as their home-inspection business was cratering.

The Segals want the bank to modify the mortgage so payments are affordable, and they think the court will agree that their lender put them into a toxic loan.

Surely, the Segals signed the dotted line under the gun:

"The evidence will show that we were defrauded," said Jill Segal.

Well, with no downside, and just an already worthless credit rating as the opportunity cost, everyone is rapidly realizing that strategic defaults are the way to go:

If they lose, of course, they'll finally have to leave. And, unfortunately, more than 50 months of missed mortgage payments hasn't translated into big savings.

"It's very hard to save," said Jill Segal. "Our company's billing is 90% off and my husband is only working about four days a week."

Lynn, who didn't want her last name used, purchased a two-bedroom on Tampa Bay in 1998 for $135,000.

As the waterfront property's value skyrocketed, eventually reaching $750,000, she refinanced twice (once to expand a business), and took out a second mortgage. She now owes more than $600,000 on the home, which is worth only $235,000.

Living in this foreclosure limbo is "Hell," Lynn said. "I feel like I'm locked in a box. I work for a financial organization and if this came out, it could cost me my job."

And why not? With banks not having to face the consequences of massive failure, why should deadbeats? Especially when there are such sensitive issues to consider as whether the next place one lives, the one where one will actually have to pay for a roof, has a favorable pet policy:

She's still hoping to negotiate the loan. In the meantime, small things bother her. "A couple years ago, I lost my dog and I can't decide on getting a new one," she said. If she has to move, she can't be sure she'll go somewhere that allows pets.

I can't see why Lynn should be worried, she just did what the all the big bankers did, bet and lost. They got a bailout why shouldn't she?

Still the US economy is recovering, so none of this ultimately matters.

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http://www.zerohedge.com/article/record-number-people-have-taken-out-loan-out-against-their-401k

About a year ago Zero Hedge posted an article titled: "Record Number Of Americans Using Retirement Funds As Source Of Immediate Cash" after a report by Fidelity uncovered that "plan participants with loans outstanding against their 401(k) accounts had reached 22 percent versus 20 percent a year earlier." It is now time to revisit this very important topic because if recent press reports are true, last year's record number has just increased by another 50%. "On "The Early Show" Thursday, financial journalist and Newsweek columnist Joanne Lipman said, "Right now we have 30 percent of people who have 401(k)s have loans against their 401(k)s, which is a historic high. And the problem is, it's growing like crazy: By 2014, we're expecting to see 30 million people take loans against their 401(k)s." The raiding of the last ditch piggybank is on, and who can blame them? With banks setting the example of always reverting to the Discount Window (or the Excess Reserve stash as is now trendy) when in trouble, ordinary working Americans are merely following in the footsteps of their financially more "literate" betters. Unfortunately, unlike the "depositor" institutions, nobody will replenish these funds should they not be repaid and the retirement money is gone for good.

CBS News explains why raiding your 401(k) is so easy a caveman can do it:

And even better news for the US economy....

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Poor taxpayers, consumers...banksters are backstopped regardless of whether customers pay their mortgages.

Yeah, so why pay?

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Any lawful way of screwing a bank is not just a good idea, it is a moral duty as a citizen to screw banksters at every opportunity. Only that way will governments bite the bullet and remove the hazard created by mixing high street and investment banks.

3 Questions:

1 ) These people will have made some mortgage payments and have equity. But are these properties saleable? By screwing up the title documents, the banks may have rendered these properties toxic. The 'owners' might live in them payment free, but their equity may be consequently trashed.

2 ) If the title and / or mortgage documents are flawed/ fraudulent/ missing, can a court enforce them at all? I suppose it depends on the detail of each case, and individual state laws.

3 ) What is robo-signing? Automated signing of documents (legal in the UK I think, BTW). Or is it these sweatchops of students faking documents with false dates?

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The raiding of the last ditch piggybank is on, and who can blame them? With banks setting the example of always reverting to the Discount Window (or the Excess Reserve stash as is now trendy) when in trouble, ordinary working Americans are merely following in the footsteps of their financially more "literate" betters. Unfortunately, unlike the "depositor" institutions, nobody will replenish these funds should they not be repaid and the retirement money is gone for good.

CBS News explains why raiding your 401(k) is so easy a caveman can do it:

Support the economy, banks aren't lending now so raid your pension, go out and spend your pension already. Support the US and Chinese economies. Spend your future now and help pay a politicians and bankers wages, spend your future now.

Here's Raid Your Pension for Dummies/Cavemen.

That's so a sign of an economy nowhere near recovery.

Edited by billybong

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Support the economy, banks aren't lending now so raid your pension, go out and spend your pension already. Support the US and Chinese economies. Spend your future now and help pay a politicians and bankers wages, spend your future now.

Here's Raid Your Pension for Dummies/Cavemen.

That's so a sign of an economy nowhere near recovery.

The parasite want's feeding at all costs.

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  • 312 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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