My thoughts on robo signing foreclosure crisis

Disclaimer: I am not a lawyer, nor am I a banker, accountant or a professional in the real estate business. Anything you read are my opinion and my opinion only and should not be used to form the basis of any investment or lawsuit. I, the author and owner of this blog/domain, am also not liable for any damage my writing may cause. By proceeding, you agree to these terms and conditions.

As I suspected all along. This mess was brought on by lawyers looking for a profit. Every time something this big happens all you have to ask is: who benefits? The more I read about the circumstances of each lawsuit, the more it seems like these are a bunch of free loaders who refinanced their house loans to stratospheric levels and couldn’t pay, then a lawyer comes in and say to them: “Hey, there’s something wrong in the procedure, even though you have fallen behind on your payment for the past two years, I can get you your house back.”

A read through the story of the first house is an exercise in frustration.

http://www.cnbc.com/id/39683724

Granted, there might be cases where the bank unlawfully took possession of a house that’s fully paid for, but I have not encountered such a case after carefully reading through the lawsuit circumstances. Think about it this way, if the american legal system doesn’t allow the lawyer get a percentage of the winnings, would these have happened? Also, the hard truth of the fact is, if there is a mortgage loan in the bank’s computer system, it’s a simple matter of matching that record to the address. The computers can do it dispassionately and I trust it more than the scrutiny of human lawyers. Barring frauds at the mortgage origination point where the agent links the loan to a faulty address  (Or the borrower lied about the address), I see this only as a procedural problem where a bank needs to follow the proper procedures in order to finally foreclose on properties. Using this loophole to try and get $800k worth of a property back is nothing short of greed and the karma will eventually turn around.

It just doesn’t make sense that a family of average income at 50k/year is able to refinance the house to $800k and pig out. Then have the audacity to ask for their house back after they have defaulted on the loan and squatted freely for two years. Yes, you are in a shitty situation, I’ve been there and I feel for you. But ask yourself how lavish were your days leading up to the fall? The great american machine at work.

Am I witnessing the fall of the great American empire?