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FORECLOSURE MESS MADE SIMPLE

THE FORECLOSURE MESS MADE SIMPLE

An Easy Read:  from Prosperity to Here

                                                                                                 by Lauren Paulson

Phase I

 

1968--  It all began in 1968 when President Lyndon Johnson sold Fannie Mae to shareholders to finance his war in Vietnam.  Fannie Mae was set up to insure mortgages of regular folks.  That simple mission went south as we shall see below.

 

1986--  Alan Greenspan, an Ayn Rand adherent, is appointed as head of the Federal Reserve (The Fed).  Ayn Rand wrote The Fountainhead; a novel with an insight into greed and what integrity requires.  Alan Greenspan is the protagonist in our story today.  He flies into action:

 

1986  -- THE FEDERAL RESERVE BOARD decides that banks can have up to five (5%) percent of their gross revenues from investment banking business, thus blurring the firewall set up by the Glass-Steagall Act between commercial (lending) banks and investment (securities) banks.  This decision also allows banks to “do a small amount of underwriting.  Paul Volcker, the chairman of the Federal Reserve Board votes against these changes and expresses a fear that lenders will recklessly lower loan standards in pursuit of lucrative securities offerings and market bad loans to the public.  It boiled down to a culture of risk which was the securities business and a culture of protection of deposits which was the culture of banking.

 

1999--  In 1999, the Congress enacted and President Clinton signed into law the Gramm-Leach-Bliley Act, also known as the Financial Services Modernization Act. This law repealed the part of the Glass–Steagall Act that had prohibited a bank from offering a full range of investment, commercial banking, and insurance services since its enactment in 1933.

Phase II

The Consumer Buys A Home 

California is the land of the crazies.  One wondered why home values were so high there.  It is because many financial excesses pertaining to the residential home loan market began there.  Much is written as to why and how.  Here is a different frame of reference.

 

Consider the ordinary consumer.  Mr. and Mrs. Public.  They want to buy a home.  The first thing to be aware of is the real estate agent’s commission sales contract.  Remember Caveat Emptor----Let the buyer beware.  A home buyer SHOULD ALWAYS HAVE A LAWYER.  Here one is often making the biggest investment of their lives.  Few consumers really know what they are doing and that the real estate agent’s loyalty is often divided.  Others in the chain do not know what they are doing either, as we shall see.  

 

Ahhhhhh, but these Consumers find that house of their dreams.  Buyer-fever sets in.  The real estate agent steers the Buyers to their mortgage-broker brother-in-law,  HUD-1   HUD is a monolith.  It is the governmental Housing and Urban Development regulatory agency. It is a weak one.  ‘HUD 1’ is an oft-required form that should alert the Consumer to the complex reality of what a buyer of real estate is getting into.  The information there is neither simple nor user friendly.  Well, what is in this arena?  Another daunting law:  The Truth-in-Lending Act (TILA) is the Consumer protection law, also little understood.  It is what I call ‘the Four Empty Box’ law  --  (APR), Annual Percentage Rate, Finance Charge, Amount Financed and the Total to be paid over the lifetime of the loan.  There are a cascade of other Consumer FAUX-Protection laws brokered by a myriad of banking interests.  These laws are not understood by anybody including judges.  Particularly, local Circuit Court Judge Nely Johnson.  She found that a lender complied with TILA even though the Lender didn’t fill in any of the required boxes of consumer-needed information.  The theory of the four boxes is that having secured the required information from one lender; Consumers could then shop with other lenders, using the information in the four little boxes for comparison.  No one follows TILA as it was intended.  No one even understands TILA requirements nor TILA’S protections.   

I. M. Consumer Goes to a Real Estate Closing 

At closing, the Consumer is expected to have read and understood the tall stack of mortgage loan and real estate title/security documents.  Is expected to understand the real estate agent’s contract with regard to commissions. Nobody, repeat, nobody; not even Philadelphia lawyers read or understand this pile of Real Estate Closing Documents.  Nobody.  

 

More of What The Consumer is Expected to Understand:

Let’s ask all in this audience, a real estate, fundamental question.  Is your state a “lien theory” or a “title theory” one?  This dichotomy of state law controls what rights you have as a consumer as you enter the World of Foreclosure.

 

Phase III

THE WORLD OF FORECLOSURE 

NonJudicial Foreclosure

 

The banks got together decades ago.   They decided they were spending too much time and money in kicking human beings out of their homes through the cumbersome, expensive and slow judicial court process.   The central feature of nonjudicial foreclosures is that it can be done without the supervision of judges.  This means The Bank better do it right, because nobody in authority is watching. This is where the family home is auctioned off at the courthouse steps, but ain’t nobody getting the safeguards to be found inside that courthouse.   

 

If a courthouse is needed to dispense justice in the ordinary course of human affairs, why is a courthouse all of a sudden NOT needed when it comes to your home?  So, let’s summarize where we are: 

CONSUMER-Buyer SUMMARY

Everyday home buyers neither read nor understand the real estate sale contract, don’t understand nor read their home-closing documents including the mortgage loan papers; and can have their home taken away with no judicial safeguards.  Finally, no consumers understand basic real estate law.  Even lawyer-consumers fail the real estate quiz.  Think about that for a moment.

Phase IV 

Banks Don’t Understand Either 

What nobody realized until just now is that banks didn’t understand what they were doing either.  This is what is shocking.  Nor their lawyers.  Trust me.  I have carefully confirmed all this with my law school real estate professor.

My first signal to this gap in understanding came on October 6, 2010 with the ruling in Natache’s case.  In that case, Federal Portland Judge Garr King ruled that the banks had made fatal errors beginning as far back as the 1990’s.  What follows here is a summary of bank errors and your ‘Essentials’ for understanding the monumental mistakes made by The Banks precluding foreclosure for thousands of homeowners:  (It ain’t just MERS) 

FORECLOSURE LAW -- THREE ESSENTIALS

1.  MERS  --  This is the magical acronym for Mortgage Electronic Registration System.  This is getting a lot of attention right now, but don’t stop reading here.  The Bankers decided they could avoid local County recording fees by creating their own real estate ownership and loan bulletin board:  MERS!  What the Bankers didn’t understand is that you can’t do a simple nonjudicial foreclosure if you haven’t obeyed local County recording laws.  Thus, the foreclosure is invalid. Now Bankers and their lawyers are scratching their chins on what to do next to defraud Consumers out of their home.  They are scheming on this subject as you read this.  They want to substitute JUDICIAL foreclosures, but it is too late.       

2.   BLUE INK --  Bankers didn’t understand that the Blue Ink (original) promissory notes signed by consumers at closing actually have to travel to the creditor who ultimately bought or planned on collecting the loan.  That Blue Ink promissory note must be offered up to the judge to prove a bank’s right to foreclose.  That was missing in Natache’ s case.                                                            pastedGraphic.pdf      “SHOW ME THE NOTE!!” ---  is the real issue.  Most judges do not, I repeat, do NOT understand this part of foreclosure law.  Just ask Hon. Alicia Fuchs.......................:

Local Circuit Court judges Alicia Fuchs and Ed Jones have recently put their ignorance on the record in two local foreclosure cases.  Embarrassing.  Tragic for the homeowners.  What about The Rule of Law 

3.  HUMPTY-DUMPTY--  Finally, what none of the bank lawyers across the United States understood is that you can’t separate these document-things into various vaults and bulletin boards across the country.  They have to travel together.  The promissory note along with the mortgage documents HAVE to travel together in the securitization process.  If they don’t, the banks right to collect the debt is gone.  Kaput.  Done.  The consumer gets a free home.  By law, the bank DOES NOT get a free ‘Opps!’

OREGON LAWYERS GENERALLY DO NOT UNDERSTAND #2 and #3 of FORECLOSURE LAW  --   

The Worst Foreclosure Lawyers in Oregon are at Legal Aid

              .........when the poor need their help the most.

All ‘authorities’ on foreclosure law are lost in the MERS thicket above, along with the new mediation law.  Thus, the Clarion Call to “SHOW ME THE NOTE” and the Humpty Dumpty rule are ignored when those defenses to foreclosure are applicable to THOUSANDS of local foreclosures.                                          

Go back and reread Judge King’s decision in Natache’s case.    Legions of Lawyers are committing professional malpractice.  Worse, lawyers are not protecting the interests of the homeless and houseless foreclosure victims.  Much, much worse.  The Worst Foreclosure Lawyers in Oregon are at Legal Aid.  Study what happened in Natache’s case before and after October 6, 2010.  The most unscrupulous lender-lawyers are downtown.  Consumers need to become aware and unite!!

 

claurenpaulson2012             laurenjpaulson@gmail.com

bulletinsfromaloha.org         the foreclosure ombudsman 

Posted on Friday, September 21, 2012 at 10:39AM by Registered CommenterLAUREN PAULSON | Comments8 Comments

Reader Comments (8)

".. Meanwhile, there is a Zionist plot to attack Iran over false claims of procurement of nuclear weapons that do not exist. Israeli Prime Minister Netanyahu has been decrying this lie since 1992. Twenty years later, it appears that the Zionist-controlled Israeli government may just have their war with Iran along with the “unwavering support” of the US government...

.. Framing Iran for the American banking system’s computer failure kills two birds with one stone. Not only would the banking cartels be able to shut down all banking computers (and simultaneously syphon the remaining money in their customer’s accounts) but also use this fake cyber-attack to engage the American public against Iran and justify their highly anticipated military strike...

.. By blaming Iran, the technocrats could initiate the shutdown of all domestic banking computer systems in order to “purge” the virus and reconfigure their systems. However this would be a false flag meant to pacify the public to avert mass panic. While the general public would fall for the cover story, the banking cartels would simply electronically transfer all customer funds from private checking accounts out to off-shore banks where they could not be touched and cover their tracks...

.. The American public, being told that Iran was to blame might not riot in the streets as we have seen in European countries of late. There would be total support for the war with Iran if this scheme could be pulled off. The technocrats could not only bankrupt America but also simultaneously stave off a social display and breakdown of society because the Iranians would be to blame...

.. The plan is perfect. All we have to do is not be fooled and use the recent riots in Spain as a barometer as to how we can take this country back from the Zionists and the banking cartels ...

by Susanne Posel, Occupy Corporatism

September 27, 2012 | Unregistered CommenterRoberta Kelly

... “Weather warfare” is the ultimate WMD with the the potential of destabilizing an enemy’s ecosystem, destroying its agriculture, disabling communications networks. In other words, ENMOD techniques can undermine an entire national economy, impoverish and “kill a nation” without the deployment of troops and military hardware.

The following text, with the exception of some small edits was first published in September 2004. The 2004 article is follow-up on an earlier study by the author entitled Washington’s New World Order Weapons Have the Ability to Trigger Climate Change, Third World Resurgence, January 2001, http://www.globalresearch.ca/articles/CHO201A.html

While The Ecologist published in 2007 a shorter version of the above study, the issue of climatic manipulation for military use has largely been ignored by Environmentalists.

It is my sincere hope that this study will renew the debate on the dangers of weather warfare and will contribute to the broader objective of “disarming” the US- NATO military apparatus.

The URL of the original article is: http://globalresearch.ca/articles/CHO409F.html.

Michel Chossudovsky, September 28, 2012

September 28, 2012 | Unregistered CommenterFYI

"... A Cook County judge dismissed charges against 92 Occupy protesters arrested in a Chicago park last October, ruling that the city’s overnight park curfew violated the First Amendment and was being enforced selectively.

Associate Judge Thomas M. Donnelly noted that police had arrested hundreds in a crackdown on the protesters' encampment when the park closed at 11:00pm local time, but had not moved against the 500,000 people who came to see Barack Obama after he won the presidency in 2008.

"The city arrested no one at the Obama 2008 presidential election victory rally, even though the Obama rally was equally in violation of the curfew," Judge Donnelly wrote.

The judge added that the selective enforcement of the curfew, combined with the Chicago Police Department's harassment of protesters in the days leading up to the arrests, supported “a finding that the city intended to discriminate against defendants based on their views.”

Judge Donnelly threw out the arrests, and slammed the city for denying the protesters their First Amendment rights. Citing the park's long history of political rallies dating back to Abraham Lincoln, Donnelly quoted early city leaders who resolved in 1835 that the land that became Grant Park "should be reserved for all time to come for a public square, accessible at all times to the people."

con't RT

September 28, 2012 | Unregistered CommenterFYI

.... ". . . The Payoff is not like that. At a certain point, Kaufman suggested that the two of them start a nonprofit to continue their reform fight, but Connaughton turns him down and leaves to live a different kind of life in Georgia. He has no illusions about the power of Wall Street and the political system. It isn’t fixable within the current model. Nonprofits are outgunned, political money is too powerful, and the careerist allure Professional Democrats and Professional Republicans is overwhelming. He has no solutions, just his own witnessing of how the people who rule us think and act when we’re not in the room...

.. Connaughton is going to pay a heavy price for this book, and for his reform-minded behavior in the last three years. He told stories that you aren’t supposed to tell, gives away open secrets that should remain circulating only among insiders. He blew up his connections in the world of politics, burned all his insider bridges. I don’t quite know why he wrote this book – though the book itself is deeply pessimistic, the act of writing is in and of itself an act laden with hope
Read more at http://www.nakedcapitalism.com/2012/10/how-professional-democrats-and-professional-republicans-ran-america-into-the-ground.html#q80zHKMTORPZ8xKa.99

October 3, 2012 | Unregistered CommenterFYI

I voted for the writer of this, "President," and it speaks about you so wanted to share with all your readers, followers, bloggers, et al, and those who troll, too:

"... “Soft repression” tactics include ridicule, stigma, and silencing. I have experienced and continue to experience each one of these types of targeting. I routinely receive hate mail and withstand very active organized attempts to ridicule, stigmatize, and eventually silence me. I routinely experience strange occurrences with my computer (typing by itself) and telephone (answered by someone before it even rings on my end), and more. Strange things happen to my friends and to the friends of my friends (like police stops for nothing, and worse, calls to remote immigrant acquaintances asking for information about me).

"... At these New York Sessions so far, we have spoken of colonialism, oppression, murder, and war with impunity.

.. Therefore, I in no way want to equate the unusual events occurring around me with the violence of the situation faced by Palestinians in Israel, the West Bank, and Gaza, the particular focus of this Tribunal.

.. I seek merely to expose covert actions directed at me, and people close to me, that constitute bullying and soft repression that would otherwise go unnoted and whose purpose I surmise is to punish me for my values and political beliefs that favor justice and peace, and, most probably, to dissuade me from future political activities.

.. Their plan will not work. I believe in hearing everyone’s truths, especially from those whose voices have been shut down.

.. I believe that we can only achieve justice when we are willing to face everyone’s truths.

.. I believe that peace is achievable when justice is prevalent.

.. And I believe that human and planetary dignity will exist during such time as we all live together in peace.

.. My work, every day, is to advance this cause in the best way that I know, using the tools at my disposal at this time.

.. I have already received some requests for these documents that have been made available to me; I will make them available to anyone who asks.

Cynthia McKinney, Sunday, 7 October 2012, http://www.globalresearch.ca

October 7, 2012 | Unregistered CommenterFYI

"... Horrendous as it was, the murder of over 2000 civilians on 9/11 was not the only major crime of that day.

.. 9/11 also initiated a series of on-going onslaughts on both international and domestic U.S. law.

.. Law and freedom go together, and both had been significantly enhanced by the founding documents of the United States in the 18th Century. The world benefited; written constitutions soon appeared on every continent; and the Young Europe movements, inspired by America’s example, began the long difficult process towards today’s European Union.

.. Starting in 2001, both law and freedom have been progressively eroded.

"... Writing as a Canadian, let me say that I believe in American exceptionalism, and that at one time America was truly exceptional in its unprecedented replacement of authoritarian with limited constitutional government.

.. Today America is still exceptional, but for its percentage of citizens who are incarcerated, for its disparity in wealth and income between rich and poor (a ratio exceeded among large nations only by China), and for its wanton use of lethal power abroad.

LAUNCHING THE U.S. TERROR WAR (3/3), Intelligence cooking by the Deep State, by Peter Dale Scott

voltairenet.org/en

October 7, 2012 | Unregistered CommenterFYI

Great Rings O Words

Livin by a wit O words savin mine
ain’t got a dime digital debt so fine
time’s dine

Fool moron clown drunkard dope fiend dancin tho
round n’ round nobody home mind blown crazy
number 43

Scholars constitutions history penned Bill O Rights’ and
twinkling eyes razzle dazzle frazzle snap crackle pop
Federalist NonFederalist

Nobody knows nobody cares to understanding isn’t
name all that’s been forgotten bye parables too
Jesus Christ

Two four six eight who do we appreciate
nobody feels real pain gain what globalist cannibals
ate earth

Genetically Modified Organisms stupidity masks death worn like hero
worshiping all the children die souls cannot grow
darkness blows

Glowing sin stripping skin off no angel within
blood doesn’t whimper while screaming murderer
innocents killed

War in our lifetimes never ever to end
filthy dirty low down double cheating cris cross
snake brain

War criminal mass murderer torturer worse than Stalin
a criminally insane monster beyond God’s scourge
Attila Hun

Satan worshiper signaling tongue O’ fire not speaking
NOT saved from Eternal Hell reptilian anti-spiritual
unnatural freak

George W. Bushes bellowing chief deciders anti-Christ
Crusaders’ modern evil selling life’s aborted lying truthinesses
Toxic Shame

October 13, 2012 | Unregistered CommenterRoberta Kelly

censorship or ? at Biloxi_Marx_3752, glad there is no "Iron Curtain" of the news here, Bush the War Criminal appears to be very much alive and well, can't talk bad about his bad, but Obama?

Yep, it got uploaded.

October 15, 2012 | Unregistered CommenterRoberta Kelly

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