I’d like to extend a heartfelt thanks to Key West the Newspaper for providing me this forum to discuss the critical nature of this foreclosure mess over the last several weeks. I hope at the very least I have been able to illustrate a reason to look beyond the headlines so that we all become a little more aware of these issues. It is critical that we all understand how so many financial ailments find their root cause embedded in the intentional fraud devised and perpetrated by the too big to fail banks. It is a layer cake comprised of mortgage fraud, fraud when the mortgages are securitized, and all topped off with a nice decorative icing of foreclosure fraud.
So now that we are in this mess, how do we get out of it? First we have to stabilize property values by building confidence in our title histories. The downward spiral we are in only places more homeowners in a negative equity position, which is the primary cause of foreclosures, and this only perpetuates the cycle. We need to do more than run articles of Real Estate agents screaming buy, buy, buy!!!
Our County Clerk needs to do an intensive reclassification of virtually every property in our County. Not just those in foreclosure, but EVERY property. Notices need to be sent out to every mortgage holder that if proper assignments have not been accurately recorded within a time specified period that all claim to the property beyond what is on file will be eliminated. Any subsequent assignments need to be accompanied by copies of a properly transferred note, whose dates of transfer correlate with the mortgage assignments. Detailed documentation of the physical location of each note from inception to present needs to accompany these new filings. These filings need to be reviewed in detail to detect any BS, and anything that even looks suspicious needs to be immediately referred to the State Attorney.
This will be a bureaucratic nightmare, but it is a pill we must swallow. At this point, title histories are a nightmare regardless, and will be a Rubik’s cube that we’ll be working on for decades. This solution, while tedious, will at least provide some confidence in the end result, and the subsequent filings in response will generate some of the revenue needed to conduct the process.
Next, integrity needs to be returned to the foreclosure process. All existing foreclosures as well as new cases need to be placed into triage before they even see the light of day in a courtroom. This includes those cases that are unchallenged by the homeowner. In most cases the homeowner acknowledges that they are not paying their mortgage and feel that they should be getting foreclosed on, so often times they do not contest the complaint. However, as we are finding out, in most of these cases the party foreclosing does not have true claim to the property either, and they should not be given the property simply because it is uncontested.
Staff with a keen eye that can identify the blatantly questionable documents (apparently so undetectable by our current crew of judicial talent) needs to separate fact from fiction. ANY case filed that has such questionable documents needs to be thrown out and referred to the State Attorney, no exceptions. Those attorneys filing this crap need to not only be disbarred, but prosecuted as well. If the plaintiffs are in any way culpable, they need to be handcuffed too, not just fined. This will reestablish faith in our judicial process, rule of law, due process, and the law as a profession. When some lawyers end up in jail, watch how fast foreclosures dry up.
Next, both the Clerk and the State Attorney need to be a party to any mediation surrounding existing foreclosures or title disputes. Currently, many of these cases result in the homeowner handing over the keys in exchange for the bank giving assurances that they won’t come after them for a deficiency judgement. This is a great solution and saves the court time and money. However, it is not such a great solution when the bank that obtains this property does so under false pretenses using forged documents. That is why the Clerk and the State Attorney need to be at the table to establish if the documents used to stake a claim against the homeowner are valid. If they are not, and are potentially a felony such as forgery, perjury, or uttering a false instrument, an alternative solution must exist. This solution would entail the bank relinquishing all claims, the homeowner being freed from any potential deficiency judgement and the property being forfeited to the State Attorney in exchange for no one going to jail. Revenue generated from the sale of such a property would go to offset the expense of the Clerk’s, State Attorney’s and Court’s efforts to clean up this mess. This would go towards restoring integrity in title histories as well. Granted the State Attorney may not be the party that actually owns the note, but they are a lot closer to truth and honesty than Deutsche Bank foreclosing on an Option One mortgage as in the case we discussed a few weeks ago.
Also, some inventive Real Estate Agency might want to consider listing and showing ONLY properties that had intensely vetted title histories back to 1990. Those properties could sell for more, and that agency would appeal to buyers knowledgeable about what has transpired. This would force other agencies to follow suit and put pressure on the “just make sure the deal goes through at all costs,” agents. Those few select agencies that have teamed up with the Too Big To Fail banks to push these properties with obvious title deficiencies on our community need to be shunned and run out of business.
And finally it ends with you. Not only do you need to take the time to understand what we have discussed here, but you also need to share the issue with your friends and family. And you need to get pissed off. Not just pissed off like you’re upset at a slow moving trolley, or a tourist throwing up in your sunroof, but really pissed off. You need to be pissed off at the namby-pamby, nice guy, “always smiling” politicians that have led us down this road, and contributed to the fiasco by their actions or lack there of, or blatant inability to understand what is going on around them. Now is not the time for “ride the fence” airbags preaching civility and compromise. Our nation was founded by individuals that FOUGHT for our freedom, rule of law, and property rights. I won’t apologize for my bad attitude. Those naive enough to support this “team building” exercise between global bankers and our elected officials can stand down and knit me a sweater. This has been the greatest theft and fraud in our nation’s history, and we need to look for leaders with the spirit of Ethan Allen in them to ruffle a few feathers...and maybe even warm up a nice vat of tar while they’re at it.
Also, don’t listen to the hype. During the past week we just learned that property values in Monroe County declined an additional five percent. As usual, our daily newspaper trots out the talking heads, usually “expert” real estate agents, to tell us how this is good news, and that the market is finally stabilizing. How silly of me not to view it that way, I can’t wait for the banks to start offering negative five percent CDs too! Oh wait, due to inflation, they already are.
Dig past the headlines. The Miami Herald recently ran an article with a headline that read, “20 South Florida cities see increase in taxable property value.” Makes you feel all warm and fuzzy, doesn’t it? But a few clicks in you read, “Overall, property values — commercial and residential combined — were still down 3.3 percent in Miami-Dade County.” As it turns out, any increase was attributed to some high end condos finally being completed. Not sold, but merely completed.
All in all, it all comes down to faith and confidence in the system. What is currently going on erodes both, along with our property values and tax base. This in turn puts the squeeze on essential government services like education, safety, and social services. When you hear about the $7.8 million dollar shortfall in the school system, think about Danny Kohlage not challenging MERS and letting banks evade filing fees, Judge Garcia not finding any questionable docs when directly asked by the State Attorney, and Judges rubber stamping crap filed by foreclosure mills. Then when you see these “nice” people on the street, let them know you are displeased and that they are doing a disservice to the community. Most importantly, let them know you will be voting in the next election, just not for them.
So now that we are in this mess, how do we get out of it? First we have to stabilize property values by building confidence in our title histories. The downward spiral we are in only places more homeowners in a negative equity position, which is the primary cause of foreclosures, and this only perpetuates the cycle. We need to do more than run articles of Real Estate agents screaming buy, buy, buy!!!
Our County Clerk needs to do an intensive reclassification of virtually every property in our County. Not just those in foreclosure, but EVERY property. Notices need to be sent out to every mortgage holder that if proper assignments have not been accurately recorded within a time specified period that all claim to the property beyond what is on file will be eliminated. Any subsequent assignments need to be accompanied by copies of a properly transferred note, whose dates of transfer correlate with the mortgage assignments. Detailed documentation of the physical location of each note from inception to present needs to accompany these new filings. These filings need to be reviewed in detail to detect any BS, and anything that even looks suspicious needs to be immediately referred to the State Attorney.
This will be a bureaucratic nightmare, but it is a pill we must swallow. At this point, title histories are a nightmare regardless, and will be a Rubik’s cube that we’ll be working on for decades. This solution, while tedious, will at least provide some confidence in the end result, and the subsequent filings in response will generate some of the revenue needed to conduct the process.
Next, integrity needs to be returned to the foreclosure process. All existing foreclosures as well as new cases need to be placed into triage before they even see the light of day in a courtroom. This includes those cases that are unchallenged by the homeowner. In most cases the homeowner acknowledges that they are not paying their mortgage and feel that they should be getting foreclosed on, so often times they do not contest the complaint. However, as we are finding out, in most of these cases the party foreclosing does not have true claim to the property either, and they should not be given the property simply because it is uncontested.
Staff with a keen eye that can identify the blatantly questionable documents (apparently so undetectable by our current crew of judicial talent) needs to separate fact from fiction. ANY case filed that has such questionable documents needs to be thrown out and referred to the State Attorney, no exceptions. Those attorneys filing this crap need to not only be disbarred, but prosecuted as well. If the plaintiffs are in any way culpable, they need to be handcuffed too, not just fined. This will reestablish faith in our judicial process, rule of law, due process, and the law as a profession. When some lawyers end up in jail, watch how fast foreclosures dry up.
Next, both the Clerk and the State Attorney need to be a party to any mediation surrounding existing foreclosures or title disputes. Currently, many of these cases result in the homeowner handing over the keys in exchange for the bank giving assurances that they won’t come after them for a deficiency judgement. This is a great solution and saves the court time and money. However, it is not such a great solution when the bank that obtains this property does so under false pretenses using forged documents. That is why the Clerk and the State Attorney need to be at the table to establish if the documents used to stake a claim against the homeowner are valid. If they are not, and are potentially a felony such as forgery, perjury, or uttering a false instrument, an alternative solution must exist. This solution would entail the bank relinquishing all claims, the homeowner being freed from any potential deficiency judgement and the property being forfeited to the State Attorney in exchange for no one going to jail. Revenue generated from the sale of such a property would go to offset the expense of the Clerk’s, State Attorney’s and Court’s efforts to clean up this mess. This would go towards restoring integrity in title histories as well. Granted the State Attorney may not be the party that actually owns the note, but they are a lot closer to truth and honesty than Deutsche Bank foreclosing on an Option One mortgage as in the case we discussed a few weeks ago.
Also, some inventive Real Estate Agency might want to consider listing and showing ONLY properties that had intensely vetted title histories back to 1990. Those properties could sell for more, and that agency would appeal to buyers knowledgeable about what has transpired. This would force other agencies to follow suit and put pressure on the “just make sure the deal goes through at all costs,” agents. Those few select agencies that have teamed up with the Too Big To Fail banks to push these properties with obvious title deficiencies on our community need to be shunned and run out of business.
And finally it ends with you. Not only do you need to take the time to understand what we have discussed here, but you also need to share the issue with your friends and family. And you need to get pissed off. Not just pissed off like you’re upset at a slow moving trolley, or a tourist throwing up in your sunroof, but really pissed off. You need to be pissed off at the namby-pamby, nice guy, “always smiling” politicians that have led us down this road, and contributed to the fiasco by their actions or lack there of, or blatant inability to understand what is going on around them. Now is not the time for “ride the fence” airbags preaching civility and compromise. Our nation was founded by individuals that FOUGHT for our freedom, rule of law, and property rights. I won’t apologize for my bad attitude. Those naive enough to support this “team building” exercise between global bankers and our elected officials can stand down and knit me a sweater. This has been the greatest theft and fraud in our nation’s history, and we need to look for leaders with the spirit of Ethan Allen in them to ruffle a few feathers...and maybe even warm up a nice vat of tar while they’re at it.
Also, don’t listen to the hype. During the past week we just learned that property values in Monroe County declined an additional five percent. As usual, our daily newspaper trots out the talking heads, usually “expert” real estate agents, to tell us how this is good news, and that the market is finally stabilizing. How silly of me not to view it that way, I can’t wait for the banks to start offering negative five percent CDs too! Oh wait, due to inflation, they already are.
Dig past the headlines. The Miami Herald recently ran an article with a headline that read, “20 South Florida cities see increase in taxable property value.” Makes you feel all warm and fuzzy, doesn’t it? But a few clicks in you read, “Overall, property values — commercial and residential combined — were still down 3.3 percent in Miami-Dade County.” As it turns out, any increase was attributed to some high end condos finally being completed. Not sold, but merely completed.
All in all, it all comes down to faith and confidence in the system. What is currently going on erodes both, along with our property values and tax base. This in turn puts the squeeze on essential government services like education, safety, and social services. When you hear about the $7.8 million dollar shortfall in the school system, think about Danny Kohlage not challenging MERS and letting banks evade filing fees, Judge Garcia not finding any questionable docs when directly asked by the State Attorney, and Judges rubber stamping crap filed by foreclosure mills. Then when you see these “nice” people on the street, let them know you are displeased and that they are doing a disservice to the community. Most importantly, let them know you will be voting in the next election, just not for them.
No comments:
Post a Comment