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Bank of America Halts Foreclosures In All 50 States
As we expected when we reported that the Delaware AG got into the foreclosure fray (Delaware not being a judicial state), it was only a matter of time before foreclosures would be halted in all 50 states. Sure enough, Diana Olick has just reported that BofA has just expanded its foreclosure halt from the 23 judicial states, to all 50 states. And so, the pendulum swings from populist anger to adulation. The only question is when will Tarp 2 be enacted now that banks are facing tens of billions in losses.
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Tens of billions? Tens of tens would begin to be more like it.
I was kind of wondering about that myself.
As far as I'm able to determine, BofA has well over $400 billion in outstanding mortgage loans.
Remeber, they swallowed Countrywide whole back in early 2008, and about 80% of those loans have gone or are going bad, and CW was the nation's largest lender, by far.
Angelo Mozillo's trial starts this month. Ought to rival the excitement of the baseball playoffs, at least.
I've been telling people to hoard cash, gold, food since 2007. Mostly I got blank stares or ridicule. I also said the five largest banks in the country are likely insolvent. Again, nobody wanted to hear that.
When BofA says they have $200-300 billion in bad RE loans, will anybody believe me then?
So the shadow inventory disappears, the housing market stabilizes, household wealth increases dramatically, and the party is back on?
Brilliant!
Moral hazard, schmoral hazard.
Seriously, if in the process of securitizing loans these douchebags have managed to lose track of who owns titles, then they get what they deserve. Of course they'll never get what they deserve; that's just a fantasy of mine.
Can someone provide a clearer picture of the legal issues involved here? What is the likely outcome of banks not being able to figure out who has the title for these homes? The notary issue is a sideshow.
Obama and his minions will claim title to them all, in order to make things "fair."
The legal issue is property rights have been DESTROYED. Properties with a securitized mortgage have a clouded title. If the mortgage holder has no legal standing to foreclose, they also have no legal standing to issue a SATISFACTION OF MORTGAGE when you pay the son of a bitch off.
The solution is simple. Its is time for the PUSSIFIED GOVERNERS OF EACH STATE TO DECLARE ALL PROPERTY UNENCUMBERED, remove all fraudulent mortgage leins from the State's recorders office, and tell the banks and trust's who "claim" they have leins on real estate via a securitized mortgage to FUCK OFF. These loans have been satisified numerous times through either credit default swaps, Maiden Lane I, Maiden Lane II, Aig bailout or the many other SECRET bailouts of the Federal Reserve Bung-hole Bank. How many times do these bastards need to be paid off on the SAME GODDAMN LOAN.
Property laws are the domian OF THE STATE. To rely on the FEDERAL Government, who fucked this up to begin with, to come up with a solution is admitting to being a sheep.
The State Government's are going to have to solve this, or they will forever forward be kissing the ass of Washington DC.
+1
just imagine
if just one state's govt represented its people and did this....jubilee, and that state would be thriving in no time afterword, then the other states would stampede to follow...
they say we are dreamers
Tyler, check this out.
http://www.floridabar.org/DIVCOM/JN/JNNews01.nsf/RSSFeed/6C306082009BE548852577B20067B6F9
The Florida Bar News - October 15, 2010
WTF? Damn, did I really drink that much last night, uh, last week, Oct 15 eh, damn, got to go pay my electric bill.
Pump is on across the board: Limit up in Cotton, Wheat, Soy Beans, Corn. YeeeHaaaw, get your wheelbarrows ready.
So NFP missed expectations, QE2 is becoming increasingly unlikely anytime soon, this isn't a POMO day, economic fundamentals are still horrible, and the mortgage crisis keeps getting worse... and markets are up. WTF is wrong with this country??
It's the news of the wierd now...
Among financials, Bank of America [BAC 13.45 0.14 (+1.05%) ] was higher after announcing it would halt foreclosures in all 50 states. Also, PNC Financial [PNC 53.29 0.19 (+0.36%) ] said it would stop sales of foreclosed homes in 23 states for 30 days, according to the New York Times.
Chart: SPX
If it looks like a top...then it's a fuckin' top.
http://99ercharts.blogspot.com/2010/10/spx_07.html
Fuck a banker...
it's truly on like donkey kong now buster ass globalists...
come and get some.....
I guess this helps out the housing market, albeit only for a brief time until all these properties are dumped on the market at the same time.
I get it now. Banks faces huge foreclosure losses = bank bailout=rally
Two years ago, I was saying how the biggest farce in the banking and finance industry was the notion that the industry had the ability to self regulate. That farce has been surpassed by an even greater one – the notion that banks and financial institutions have any control whatsoever over the risks and operations that now determine whether they will live or die.
To the extent that they control the government and, by extension, the taxpayers' money, they would seem to control pretty much everything necessary to keep the scam going . . . for a while, at least.
I read about this woman working for a DC non-profit, pro-consumer org that was running all around DC in summer 2008 shouting at House and Senate member's staff that a crisis was coming, things were going to implode, they need to start asking questions...and she said she was told several times, there is no crisis if Wall Street isn't saying it.
And then in Feb Cantor said Wall Street was sending more of the contributions to Repubs exclusively because most of the weak financial reforms were supported by Dems, Cantor said to a reporter, on record, "Wall Street had buyers remorse"....
yes banks own our govt, time to take it back
so that means, anyone in USA with a mortgage just stop paying for it, save the money since foreclosure will NOT happen, ok make sense, the real socialism is that government is giving away something you would never afford paid for by the taxpayers and the print shop. Next stop is stop working ( at least legally) stop paying any or all taxes just live of the print shop
at the print shop....
http://www.youtube.com/watch?v=3v8I5egzoMo
MBS was a biiiiiig part of the bond market. Where else is the money gonna go? It's like we're down to Treasuries, a little corporate paper and equities (US and Int'l). They all stink. But how many managers are going to go 100% cash? Retail investors are still fleeing or just need the money to pay bills, but pension funds, health insurers, corporate treasurers and others have cash coming in and need to play, or so it seems.
It's not all the Fed and the banks' own desks doing this. Oh and the other central banks. Maybe they are a big chunk of the volume that's left....well of course they are....hey why don't some wise guys here estimate the market volume shares for the Fed/PPT, investment banks trading for themselves, HFT flying saucer algos, and good old fashioned money managers? I bet the old fashioned cash herders are a good, say, 25% and the New World Order and its fleas the remaining 75%.
Anyway they keep coming back as long as the pot is only at a simmer.
hey Jim, I'm in MN too, you on FB or some such, would like to connect, always like your posts
Apple upgrade =market rally.
To hell with Prechter and Elliotte Wave.
They couldn't make a short or intermediate term forecast if their lives depended on it because they don't believe in the fed or POMOs or Apple upgrades.
Can't wait for him to finally come out and admit they are wrong and don't really know how to count waves.
Elliott Wave = voodoo/tea leaves. Apple becoming biggest company on the planet and somehow everybody and their brothers think it will go to infinity. Forget mortgages, QE2, BLS, it's all about Apple now.
It's our last horse, ride it till it drops.
+1
Voodoo and tea leaves are bull.
Chicken entrails and speaking in tongues are the way to go
Elliot Wave charts based on dollars which over the years has not been a stable fixed store of value. Inherent flaw in Prechter's prediction.
That thought is worthy of an article....
http://www.ritholtz.com/blog/wp-content/uploads/2010/05/Gold-vs-SPX.png
Perhaps Tyler could get authorization to publish the this from IRA on 10/6
Why Does Bill Dudley Want More QE?
By Richard Alford
One little excerpt:
"You can argue that the banks were greedy and stupid for failing to perform their legally required duties as securities dealers and fiduciaries. You can also argue rightly that many banks are doing stupid things in foreclosures as they are being overwhelmed by mortgage defaults. But these very real concerns miss the larger issue. The bigger point that members of the media and the other happy campers who are following the foreclosure mess need to understand is that a poorly managed documentation trail does not change the fact that the loans are bad. Focusing on the foreclosure mess at the expense of paying attention to the larger, secular threat from the deflation of the mortgage sector could be a fatal choice for American consumers, banks and the nation as a whole."
...ooops.
very true. The banks still got shitloads of bad loans, and they have to sell to someone like Fed reserve. The bad stuff just don't go away. if they don't say that QE will help economy, only help the banks, they will piss off the whole country. yes they still want to piss on the whole country, but they give you a little umbrella to cover your eye. Just like the first TARP to help the banks.
DOW 11,000. Mission accomplisehd BEN.
Why believe these criminals... you know they will at least continue some forms of cherry pickin' foreclosures... all while keeping the rest in place to falsely prop up illegal books/value.
So...anybody know where we go from here? Buy houses and build reinforced bunkers around them to keep out the "contractors"?
If winston Churchill was still alive he might say this - Never in the field of human endevours has so much been owed by so many to so few.
great one!
Does anybody really believe that the banks would be doing this if there wasn't something in it for them? Like artificially propping up the housing market by keeping inventory off the market? Preventing them from having to recognize the losses? It just seems to convenient for me.
I think the bigger incentive for the banks is the possibility of more bailout money, either direct or through stealth via the Fed.
While they may keep inventory off the market, this should also kill any home sales, so supply will drop, but demand should drop further. As a poster above noted, you would have to be a fool to buy a foreclosed house now - if the foreclosure is found to be invalid, you may get your money back, but you would surely be forced to vacate as the house is given back to its original owner. Who wants to deal with that hassle?
My best guess is the govt makes the banks whole, either through the Fed or via Fannie/Freddie/FHA increasing what they pay for foreclosure expenses.
Joe Sixpack has already lost all his equity. The banks are now realizing (in spite of TARP 1.0) that they are massively f$$$ed as well.
I don't think they did this on purpose. They failed to transfer the original notes appropriately. They did not do the most basic aspect of their jobs - paperwork. This, IMHO, is the black swan no one planned on. In the rush and greed to make lots of origination fees, no one did the back-office work. They were too excited to earn their bonuses on the back of low-paid clerks. They decimated the workforce, and grew beyond their abilities to manage their own businesses.
This is what happens as systems become more and more complex. Inevitably they collapse upon themselves.
Yeah - it's funny how people (especially on this site) tend to assume everything is some big conspiracy to fuck them over. Sometimes it is that, but just as often if not moreso, it's plain old stupidity or oversight by TPTB, or systemic forces that have spun out of control.
The Banksters "thought" that they could just computerize (MERS) a system that traditionally relied on horse carts and buggy whips (Property Titles) and make some sort of assembly line of pure profit, only to find out that a computerized horse cart only exists in Cyberspace and NOT in Meatspace, which is where it HAS TO EXIST!
Now, more than ever, it makes total sense for anyone underwater on their mortgage to stop paying. The mortgage might not be collectible, or more likely, turned into unsecured debt that can be written down in bankruptcy. Worst case you live rent free for years.
Stop paying. Now.
The moral hazard implications of this are mind blowing. Shit, meet fan.
It will f__k the home builders and that was our big growth hand. Too bad you can't export Toll Bros homes. Time to tear down- Executive order. Coming soon!
Would you get more economic benefit out of paying someone to tear them down and reclaiming the metals, or from simply handing them out to people and then waiting for increased consumer spending as a result of that? (of course, a lot of people would trash the homes and otherwise cause trouble, but still... )
That is the Bank line, save Banks at all cost. Not TBTF. This is debacle from the getgo, from the initiation of combining and levering up the banks/ brokerage houses. All congress! And it will continue, as this will not end until the previous value is realized one way or another. Inflation is the current plan, which bails out the banks. Letting them squat is the latest feeble way to increase GDP.
Class-action RICO suit in Kentucky.
About time!
http://market-ticker.org/akcs-www?post=168144
USC as in Trojans. I went there for my undergrad.
Why does everyone view this as a bad thing for the banks?
IMO it's a very good thing for the banks (and by extension bad for everyone else). The longer the foreclosure process is drawn out, the higher home prices rise, and thus the more money they get when the sales finally do happen (at a trickle and spread out over many, many years).
That IMO is the very purpose of this move by the banks, in fact.
- Fed MBS purchases ended.
- Tax credit ended.
- Interest rates are are at new record lows, but having little effect.
They need something new to keep prices propped up. What better way than to reduce available inventory by stopping all foreclosures from coming on the market?
Bank Assets = 0 = stock is worthless = panic = instant liquidation
I think you are missing the forest for the trees. EVERY note/mortgage securitized say between 2004 and 2008 now has a clouded title. EVERY. The foreclosure mess is occurring because banks/RMBS/etc. cannot prove they own the loan and have the appropriate documentation. Hundreds of thousands of original notes may have been destroyed, lost, or cannot be found. No original note = no mortgage.
And if the notes were not transferred into the RMBS that was supposed to have them - that means the RMBS are now un-secured trusts. Which means the entire $trillion++ RMBS market gets frozen. Litigation for years.
And how about title insurance? No title insurance on ANY loan that was securitized previously until the note can be located.
If this is followed to its logical conclusion the entire housing market comes to a FULL.STOP.
Likely all banks will become effectively insolvent. Pensions, etc. that own the RMBS will be decimated.
There will have to be a political solution - but the problem this time is that the banks can't blame anyone but themselves for not doing their own paperwork properly.
"If this is followed to its logical conclusion the entire housing market comes to a FULL.STOP."
What are all those highly skilled REALTORS going to do now?
A higher price on a home that you cannot sell due to clouded title benefits you how, exactly?
Supposedly we have resolution authority within Dodd/Frank bill. Sounds like a good time to try it out no more bailouts
Federal legislation will be required to allow the transactions to be reassembled and then set back up. Right now, if you are paying a mortgage that is included in a private MBS, there should be concern on your part as to whether you are paying the proper party. Not that the courts etc. wouldn't bend over backwards to get you whole if there is a problem, but even the law has limits if it wants to help you. You may end up with an action against Party A, who never received title to your mortgage but accepted the payments, for unjust enrichment, and in the return mail, a notice of nonpayment from the actual owner, who by the way, was supposedly already paid by Party A when they included the mortgage in the MBS. But here's the crux of the problme: WHO THE F$#@ KNOWS?
Federal legislation will be required to allow the transactions to be reassembled and then set back up.
Impossible.
Property rights are states issues. Feds cannot intervene and "fix anything".
Banks that are national banks, and banks that are part of the Federal Reserve system, are governed at the national level. These national-level banks created a problem. A national solution can be crafted by the Federal government.
Any solution that does NOT include jail time for the Banksters is NO solution at all!
un fuego banco
Affidavits, perjury and fraud on the court.
An affidavit is a legal document which can substitute for live witness testimony in court. All testimony in court is governed by the rules of evidence or by statute. All testimony requires that the witness swears to tell the truth, is competent and has personal knowledge of the facts they are testifying about. An affidavit is no different, in most if not all jurisdiction, the affiant swears to tell the truth by being placed under oath by the notary, the affiant states in the affidavit that they were sworn, are competent and that they have personal knowledge of the facts in the affidavit. The notary attests to the oath of the affiant and that the affiant is who they claim to be.
If a witness lies in court or in an affidavit then they could be charged with perjury. Perjury is lying to the court.
The affidavit issue is being portrayed in the MSM at a paper work problem. Lying to the court is not a paper work problem. Attorneys are prohibited from making a material misrepresentation to the court of fact or law. Further, attorneys in most jurisdictions have an affirmative duty to report known perjury by their clients to the court.
The problem with the affidavits is perjury on behalf of the affiants and possibly the notaries depending on the notaries' knowledge that the affiants had not reviewed the files, the promissory notes, the mortgages, or the records of default.
Further, you can reasonably argue that the entities pursuing foreclosure (banks or servicers) have perpetrated a fraud on the court by submitting perjured affidavits. If the attorneys representing the entities have knowledge of the fraud or are preparing questionable documents then they may also be involved and subject to penalties.
At the heart of any trial or hearing is the determination of the truth of the matter. It is the very purpose of the rules of evidence and what law and fact is presented to the court. If the affiants lied, as it appears, then the truth of whether they owned the note and held the mortgage and the borrower was in default is at issue. Courts, Attorneys General, and bar associations need to serious consider actions that will assure compliance with the rule of law.
This country cannot stand as a democracy if there is one set of law for the banks, corps, elites and another set of law for the rest of us. Perjury and fraud on the court is very serious matter. It is not a mere paper work problem.
"Perjury and fraud on the court is very serious matter."
Yes, this is true. So is securities fraud, accounting fraud, market manipulation, insider trading, international coups/assassinations, unjustified wars, criminally negligent practices that lead to environental and human disasters, and almost everything else our large corporations and government do on a daily basis. And we don't have to look far to see who has been supporting these institutions for decades now - http://peakcomplexity.blogspot.com/2010/09/confronting-our-complicity.html
Anyway, this whole mortgage mess may present the admin a chance to do what they didn't in the first TARP, which is institute a debt moratorium for a bunch of underwater homeowners. What better way to stimulate the economy then get rid of large portions of private household debt (probably the only way). Of course then they would have to launch TARP 2.0 for the banks... and that may not go over to well at this point.
Your bank can have TARP 2.0 funds, provided that all bank officials take up residence in Leavenworth first!
thank you, well said
oops
Its all up to the Mighty DOW
http://www.youtube.com/watch?v=4KOcg1IWjI8&feature=player_embedded
I really don't think this is that complicated. For each mortgage, find out where the P&I payments were going, if there were any. Then, for that entity that was recieving income stream from mortgage (or is receiving pain of its defaul), find out how much they paid for the MBS/mortgage slice and then apply that same reduction to homeowner at some reasonable premium if they are interested...so if someone bought toxic crap at 20 cents on dollar, offer the homeowner 30 cents on the dollar or forfeit you non-existent right to take the property...no one loses much more than they invested in buying security, homeowner gets a break because bank f'd up and no one has to recognize improper paperwork as a real title...
Some of the income flow and defaults were sliced up, but that's what computers are for, go find the value of each slice and sum.
then we ban securitization for real estate, it was way to rife for fraud anyways, and we just move on...
If the entity trying to foreclose has clouded title but but paid full price for toxic stuff, make some sort of settlement deal that either homeowner could opt out of...but remember, bank/creditor has no real claim to house so you better give homesquatter reasonable offer or you get nothing. If no one occupying house, county and bank can come to terms and county grants title to themselves and sells house for cheap
On one loan that sounds okay; multiply that by how many millions or mortgages and I'll see you in 50 years.
Some of the income flow and defaults were sliced up, but that's what computers are for, go find the value of each slice and sum.
Your solution ignores the biggest part of the problem. Only the owner, or his agent, can foreclose. In many instances, paperwork was not completed. The bank did not record the sale or the transfer of mortgage title. The lender may have been getting an income stream for years. But, when push comes to shove, the lender discovers that paperwork naming him as the holder of the mortgage, with the house as collateral, was never recorded. And now, that orignal paper, with original signatures, cannot be found.
In this scenario, it does not matter if you can find the value of each slice. If you cannot find the paperwork that proves this slice owns part of the mortgage, you have a problem.
Regardless of what was said above about paperwork not being the problem, we must consider that fraud upon the court would not have been necessary if the required paperwork was readily available - either at the bank/agent's place of business, or at the County Recorder's office.
Ladies and Gentlemen, say hello to tail risk. And it's wagging the dog. Mightily.
From nowhere to now-here in a flash....crash!
Count to 10, or better yet, to 10/10/10, and then..
Like our learned friend Bruce K.
Head, Shoulders down,
For the sidelines.
Storm straight ahead....
ORI
http://aadivaahan.wordpress.com
Does anyone know if this is true?
"The word is out that Pres. Obama’s pocket veto of the Digital Robo-Signing Act was actually a trick. Sen. Harry Reid didn’t actually adjourn the U.S. Senate. The Senate has been kept in session by a little understood ruse and the bill will become law tonight at midnight without the President’s signature.
The big banks will file suit after the election to have this bill declared to be law.
Article I, Section 7 of the U.S. Constitution seems to support this view.
Some drunken bankers were already bragging about this an some major news outlets, including Fox News have reported on this." http://market-ticker.org/akcs-www?post=168619
It won't help to put the Djinni in the bottle at this point!
Catagorically false.
You failed to read the latest post.
First mortgage is always almost a non-recourse loan, meaning you can simply walk away if underwater. Once you refi, well, well, in almost all states, you lose the right of non-recourse. refi means banks can go afer you if you dare walk away from underwater property for any loss banks may suffer.
That's the open secret why banks are offering rates so attractive in refi deal. Suckers for taking refi baits, and sucker-ers for seeking refi and paying costs to close it.
Somewhere, in 2006, there was an American with a 4.548% Flat Fixed.
After getting off the phone with a Hindu Tech. support operator named Bob, got in his Brazilian made Ford pick up, nodded while passing the new unemployed neigbor whose company moved to China a year ago, paid the Pakistani store clerk on a work visa for a six-pack, got home and tuned on his Japanese TV to hear excerpts of the Feds meeting that day:
He thought to himself: “Things are slowing down at the plant. Better look into if they have a five year teaser rate I can refinance into. Who the fuck do they think they're kidding – this won't hold long.”
He was a great man.
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