What Happens in Vegas: Fraud & Abuse by Banks on Home Loans

A lot of conservatives--whether politicians, pundits or just internet warriors--like to blame poor people for a lot of things. Herman Cain said, if you aren't rich or don't have a job, "blame yo'self!" Yakkers like Rush Limbaugh and Sean Hannity lay the entire economic collapse on poor people. Or government "forcing" banks to give home loans to poor people. That is not true, but that really doesn't matter in their realm. But even here on my blog, I've gotten in arguments in the comments section, over poor people. And in real life, a friend said, "Hey, if you signed the mortgage papers, you pay the bill or you get forclosed. It's only fair."

Fair. Did the banks play fair? Watch this incredible report below from Las Vegas reporter George Knapp. Some people who were in foreclosure, but renegotiated are in trouble. As are some people who simply bought a foreclosed home. Because the paperwork trail is so complicated, and because there was so much fraud by the banksters, these people in actuality do not own their own homes. Knapp himself bought a home three years ago, and technically does not own it!

[Excerpt]

Desert Underwater: Who Owns Your Home?


The foreclosure crisis has several causes, but government investigators now believe that high risk gambling by major banks is mostly to blame for the economic meltdown. Millions of Americans who played by the rules and paid their bills have lost their homes because banks and their service providers cranked out mountains of bogus mortgage documents. . .

Read more at: 8NewsNow

Thanks to Stupid Monkey Planet for the link.

Mortgage Crisis Leading to Arson?

Photo from Pahrump Valley Times

Wow, you'd think people would see this coming. I'll admit I didn't. But it makes a perverted sort of sense. You're behind on your mortgage, you can't sell the house because you owe more than it's worth. . .throw in a little desperation and perhaps a pre-existing scruples problem, and voila, burning houses.

I wonder what else this will lead to. My guess, nothing good.

[Excerpt]

Arson on increase as debtors scramble

Some folks celebrate their last home mortgage payment by setting fire to their loan agreement. Lately, people behind on their mortgages are simply setting fire to their homes. . .

Read more at: Boston.com

Bush Unveils Plans for Mortgage Crunch

Photo from RawStory.com

It hasn't been so long ago that everyone in Right-wing World kept saying "home ownership is at an all-time high!" This was supposed to be confirmation that the economy was booming. Unfortunately, some chickens have come home to roost, and we haven't heard that line much lately. Finally, President Bush has laid out a plan.

Fearless leader:

[Excerpt]

Bush unveils aid for mortgage-strapped homeowners

"The holidays are fast approaching and unfortunately this will be a time of anxiety for Americans worried about their mortgages and their homes," said Bush, flanked by Treasury Secretary Henry Paulson and Housing and Urban Development Secretary Alphonso Jackson. Calling on Congress to do its part in providing some immediate relief, Bush said the steps were needed "so we can keep the economy healthy and the American dream alive."

Read more at: Los Angeles Times