Gonzalo Lira On What Brian and Ilsa Said To Their Bank: “Show Me The Note”

Tyler Durden's picture

Submitted by Gonzalo Lira

This Is What Brian and Ilsa Said To Their Bank: “Show Me The Note”

So the week before last, I wrote about Brian and Ilsa, a retired couple in their mid-to-late sixties, living in a house in the Southwest that had—unremarkably—gone underwater.

They had tried to refinance their home mortgage, under the auspices of the HAMP, the Home Affordable Modification Program. HAMP was part of the Financial Stability Act of 2009—the famed “Stimulus Package”.
Under this program, the principal of Brian and Ilsa’s mortgage loan would remain the same—they would not be getting a free ride. (Some readers mistakenly thought that they would. See note at bottom.)
But though the principal of their mortgage loan would remain the same, the period of their mortgage would be extended—and the loan itself would be refinanced with a lowered mortgage rate of 2.75%, from the 6.25% of the original mortgage.
Therefore, their monthly payments would go down roughly 40%—a significant amount for them, especially after their retirement savings had taken a big hit following the Global Financial Crisis.
What had been dreadful about Brian and Ilsa’s case was that, though they qualified for HAMP—and indeed, HAMP had contacted them, at least initially—they were given the bureaucratic runaround for several months, before they were finally allowed into the program.

And then, three months after their mortgage had been lowered, with no warning, they were told that they in fact did not qualify—even though the program fit them like a glove.
Indeed, the program had been tailored for people exactly like them: Retirees, who had suffered unforseen medical expenses on top of having their house go underwater. People who weren’t looking for a handout, but just to refinance so as to take advantage of the now-lower interest rates, and thereby lower their monthly payments.
But now, the bank was saying that they didn’t qualify. Out of the blue, no explanation, no appeal, nothing: They simply no longer qualified. To add insult to injury, they were also told that not only did they owe the difference in mortgage payments—they also now owed a penalty fee, for “incomplete payment”.
Brian and Ilsa tried complaining about the unfairness of the situation, but once again, they were given the runaround.
Then, they and I both discovered that a lot of the people who were initially said to qualify for HAMP in fact did not qualify—they were added to the program so that banks and servicers could collect Federal government bonuses, then bumped off the program once their three-month “trial mod” was over.
It didn’t matter if they qualified or not—it was all just some sort of sick game with these people, done so that they could get some of that Federal government bonus money. The proof of this was the undisputed testimony of a whistleblower—whose testimony was of course ignored by the mainstream media.
After all this heartbreak and frustration—and fear—Brian and Ilsa had reached the end of their tether: Ilsa had said, essentially, Fuckit, and was urging her husband Brian for them to strategically default. Brian was wavering, though he was as equally outraged as his wife.
The point of my piece was, If and when solid upstanding middle-class people such as Brian and Ilsa ever do throw in the towel and let out a collective Fuckit, then it’s curtains for the American Republic: You cannot have a viable society where the backbone of the country thinks that following the rules and the law is for suckers and chumps.
With the facts of their story in hand, I went off and wrote up my piece, posted it—and watched as it garnered 50,000 hits in a matter of days—over 70,000 hits as of today, eleven days later—and it’s still going strong.
I’m a pretty good writer—but I’m not that good of a writer: Clearly, my piece touched a nerve. Touched a nerve? More like gouged it out, put electrodes to it, then went all Abu Ghraib on it—that’s how vehement some of the reactions to my piece were.
Life goes on. Between when I last spoke to Brian and Ilsa, and when the reactions to my post started rolling in, Brian and Ilsa’s story continued, of course—
—and it took quite the amazing turn over the last couple of weeks.
“And we have you to thank,” Ilsa told me.
“Oh?” I said.
“Yes indeed,” said Brian—and then he explained:
While interviewing them, I had also been working on my “The Second Leg Down of America’s Death Spiral” post—the one where I swore up a storm.
In that piece, I discussed the mechanics of the Mortgage Mess, and how a seemingly trivial issue—chain-of-title—could well clog up the system and bring a collapse in the mortgage market.

I had explained how the banks, in their urge to securitize, had been sloppy with the mortgage notes. I explained how, potentially, this could mean that homeowners with mortgages might well be able to get out of their debt, since no one could now show who legally owned the note. Not just people in foreclosures—everyone with a mortgage that had been improperly handled.
While interviewing Brian and Ilsa, I had talked about these issues to them, at some length. Whenever they needed to take a break from telling me their own story—which as you can imagine got them wound up to high heaven with frustration and worry—I would stop and tell them about the Mortgage Mess, and what I was finding out about it: The crooked law firms manufacturing documents, the shyster banks who owned—outright—Congress. The whole sordid mess.

Also, talking to Brian and Ilsa about the ins and outs of the Mortgage Mess was my way of wrapping my head around the complicated issues at hand, and making sense of it before I wrote about it.
I thought that Brian and Ilsa were only half-listening to me, out of politeness, whenever I rambled on about MBS’s and chain-of-title and MERS and all the rest of it—but they paid me a lot more attention than I realized, at the time.
(Note to self—consider adding another aphorism: Always assume people are listening to you more closely than you realize, even if they seem to be distracted.)

A desperate person with a little bit of knowledge can be a dangerous thing—as Wells Fargo, Brian and Ilsa’s bank, soon found out.
Last Monday, October 4, after I had finished interviewing them and was busy writing my original post on the pair, Brian mulled over what I had told him about chain-of-title and the Mortgage Mess—I can just see him, head lowered, looking up: The epitome of the Kubrick Stare.
Brian dashed off an e-mail to his bank that night—a quick post, where he explicitly said, “I want to see the loan note where it says I owe you money, or else I’m contacting my lawyer and halting payment on my mortgage.”
The very next day, someone from Wells Fargo called them.
Not a machine, not a customer service rep in India—an actual, honest-to-God, alive-and-kicking bank executive.
She apologized profusely about the HAMP screw up—said that Brian and Ilsa qualified, they qualified, they qualified!, and that she would be the one to “straighten out their situation”.
Brian and Ilsa couldn’t talk that Tuesday, when the bank executive called. And for various reasons, they couldn’t talk Wednesday either—they finally talked to the bank executive on Thursday . . .
. . . and during those three days, it was the executive who chased them: Two e-mails to their AOL account, two phone calls on their answering machine.
On Thursday, when they spoke, the bank executive was sweetness and light—she told them that Ilsa and Brian qualified for HAMP, that they would get refinanced, that they would not have to pay the difference in mortgage of the last three months—“Your lower mortgage rate is locked in!”
And as to the $84 penalty fee, which had driven Brian in particular up the wall: It was waived.
Ilsa told me, “It was the nicest conversation we’ve ever had with a bank executive.”
The executive promised to have the papers drawn up, ready to be signed before November 1.
That’s right: November first. After dicking them around for months on end, Wells Fargo all of a sudden went from turtle-speed to light-speed—to warp-speed—boom!—just like that. They didn’t even engage thrusters, Captain—it was warp drive the instant Brian e-mailed that threat.
Threat?, you say. What threat was that?
The threat Brian laid down, in the e-mail he sent Monday night:
Show me the note, motherfucker!
That threat.
As I discussed in some detail in my “Second Leg Down” piece, the process of creating Mortgage Backed Securities inherently created ambiguity as to the note holder. This ambiguity in and of itself was not the problem—the problem was, along the way, the chain of title of the note was broken in a lot of mortgages. Thousands of them—maybe even millions.
At the same time, there was massive fraud by so-called “foreclosure mills”—bottom-feeding law firms hired by the banks to carry out the judicial process necessary for foreclosure and eviction. According to credible reporting (as I have mentioned, Yves Smith at naked capitalism has been all over this), the foreclosure mills were not only falsifying signatures, but they were outright fabricating documents—in short, committing massive perjury.
So between these two issues—broken chain-of-title, and systematic document forgery by the foreclosure mills—all of a sudden, the banks have a massive problem on their hands: Legally, their ownership of the note can be challenged—and if the blatant illegalities of the foreclosure mills touched the particular note, then its foreclosure could be in question.
All of a sudden, massive numbers of foreclosures and mortgages could be called into question.
So when Brian e-mailed and asked about the note of his mortgage loan? That was like a cattle prod to the crotch—that woke up Wells Fargo.
There was a reason the bank executive called them back the very next day, and warp-speeded their HAMP refinance: Brian and Ilsa’s note is probably either lost, or it’s been irretrievably besmirched by the broken chain-of-title mess, or the foreclosure mills mess, or perhaps both.
By refinancing, a new note is generated on Brian and Ilsa’s mortgage loan: Pristine and copacetic. They have to sign this new note in order to get the refinance. It doesn’t matter how the loan is refinanced—under HAMP auspices, or by any other means—once the homeowners sign on the line which is dotted, all of Wells Fargo’s troubles with that particular loan vanish—
—but they have to get people like Brian and Ilsa to sign: No tickee, no laundry.
I explained this issue to Brian and Ilsa, and furthermore told them that, insofar as their relationship with the bank is concerned, they’re in the driver’s seat:
If they wanted to? They could insist on seeing the note, hire lawyers, and take this to court—where Wells Fargo would lose.
The bank would lose because, once Well Fargo fails to produce their note, or the note’s chain-of-title is shown to be irremediably broken, the judge would be left with no choice but to declare that Wells Fargo has no standing to foreclose and evict Brian and Ilsa from their home. If Wells Fargo can’t produce a valid note, who are they to claim Brian and Ilsa owe them money?
This is how Brian and Ilsa—and the millions of other homeowners with mortgages, not just people being foreclosed upon—could wind up with their house scot-free, while the banks—and the Mortgage Backed Security holders—would be left eating the losses.

(Very important note: In my previous post, I skipped these specific legal steps, concerning how exactly homeowners could potentially wind up walking away from their mortgage loans, yet keeping their houses. Most important of all, I failed to explain how a broken chain-of-title nullifies a bank’s standing in court to bring about foreclosure and eviction proceedings. This failure of mine happened because I was so into the material that I didn’t realize that ordinary readers might not see or know the specific steps that would lead to a homeowner giving the shaft to their bank. I hope I have clarified the issue with the above explanation. Please accept my apology, and excuse my mistake.)

“If you play your cards right,” I told Brian and Ilsa over the phone, “you could get your house for free.”
Like I said in my first post about them: Brian and Ilsa are salt-of-the-earth people.
“But we took out a mortgage—we owe that money,” said Brian. Ilsa said, “All we want is what we were offered: A lower monthly mortgage payment.” Then Brian added, “We don’t want to take advantage of anybody—that would be wrong.”
Wells Fargo is lucky—how many other people are going to act as decently as Brian and Ilsa?
Actually, that’s the wrong question: Which of the banks, or the bank executives, deserve to be treated so decently?
I can’t think of a one.

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Oh regional Indian's picture

The PTB have an end game in this one. Like they have had for all their scenario planned model driven decisions on the macro level till date.

Do not underestimate your opponent.

We have not seen anything yet. The power to set laws is controlled by whom again?

This is actually just kabuki...



cossack55's picture

If this is Kabuki, can I be a bit player.  I would love to get on this stage.  Got to go call my lawyer.

Buzz Fuzzel's picture

I don't think so.  Just because the Bank can't show the note does not make the home the property of the people who are occupying it.

If you have never lived in a lawless time in a lawless land get ready for the shock of your life.

The Rogue Economist's picture

Agreed, the history of payment et. al., could be used to reasonably establish a debt agreement, but without the note, it would likely only prove an unsecured debt, with no right to foreclose in the event of default. That would be enough to scare a bank exec right there.

A bigger concern is if the national government enacts new laws to reestablish the chains of title, which would effectively say that they believe the banking crisis to over ride more than 200 years of states' property rights while quietly saying that they don't need the interstate commerce excuse anymore to impose regulation on the states.

And that would be a huge deal.

66Sexy's picture

i think this bears repeating:


"Then, they and I both discovered that a lot of the people who were initially said to qualify for HAMP in fact did not qualify—they were added to the program so that banks and servicers could collect Federal government bonuses, then bumped off the program once their three-month “trial mod” was over. "


fuckin banks.

Mr Lennon Hendrix's picture

The power to set laws?  Just the question begs for a solution but there is no solution, because there was no problem in the first place!  It is not to, 'not have fear' but not to fear fear.  Fear is in the anxiety and it will be in the light, but we must understand that it is in our power to know, because we at first do know, we do understand.  For it is our power.

AcidRastaHead's picture

Allow me to elucidate: The fear is in the anxiety which is the path to the light and therefore power.  Now look over there into the light, yup that's power and fear holding hands and wearing overalls.

whatsinaname's picture

But as Bruce K. has posted last week, what's to prevent WF from nullifying the mod that they gave to this couple ? If WF does that what is their recourse ? Walk out as they most likely were gonna do anyways ?

Hdawg's picture
by Hdawg
on Mon, 10/18/2010 - 12:52


just doing god's (cough Rothschild's) work.


This site is a conspiracy.


by Hdawg
on Mon, 10/18/2010 - 12:54


forget all the other anti-zionist noise...this is the truth.

kathy.chamberlin@gmail.com's picture

well, i learned about ask to see the note, more than a year ago. i asked everyone but was totally avoided. i wrote to the Colorado FBI about my mortgage fraud that occurred throughout my entire buying process of real estate contract. i was using words like title fraud, mortgage fraud everybody looked at me like i was the criminal saying those are pretty harsh words and accusations. yea, that is what this country reacts to, me blatantly using the correct english language to describe what happened to me. i learned all this by reading livinglies.com. professional people that get license in colorado are suppose to adhere to a standard or code of ethnics. that is why i was accussing Chase of fraud and i wanted a title and mortgage forensic done on my loan. they just ignored me. then evicted me from my condo by entering  through the front door on dec. 28, 2008 and changing the locks and putting a lock box on my door without telling my attorney who was working with them the code. can you imagine if i could take this to a court, cause it is also elder abuse. i just start to go back into my deep depression when i read this story about this couple. at least they have each other. all my friends deserted me and my daughter because they thought i was the criminal. well it is good to know i can start talking about my experience and maybe it can help someone. i have been so embarrassed for the last three years of my life because of my mistakes buying this toxic fume condo, i just stopped communicating with people cause i don't hang my wash outside to dry. oh brother.

Bryan's picture

I'm sorry if you went through that mess, especially as a single mother (and senior?).  But your story doesn't sound like one that would come from someone whose avatar is a pair of braless boobs.

percolator's picture

Grandma Kathy is just showing off what her cash out re-fi bought her.

The Navigator's picture

You assume to know something by her avatar? - Not cool, but cruel when you "kick 'em when they're down". How about a little compassion.

Temporalist's picture

Kathy that is the best thing I've read from you...and saddest.

Buck up your time will come and things will get better.  Fuck those people that didn't listen and the bankers and your so called friends. 

Hold your head high for being right and watch as everyone else around you learns what you already knew but were defrauded on.

Pituary Retard's picture

More like Bukaki.  This time the commoner gets to make the money shot.

Mr Lennon Hendrix's picture

Yeah that is right!  The banks are here to steal your real wealth!  The same question that was asked about the note should be done about monie.  Do not use the banks ways, ever!  Take your homes and your wage and your monie back! 

Victorio's picture

Exactly, show them no mercy.  Certainly they do not deserve to be treated with any decency, or perhaps as much decency you would show a granny looting grifter theif. 

bugs_'s picture

There must be an internal "high priority" escalation path for any customer that mentions their note.

kengland's picture

Where the hell did the money go after the foreclosed house was sold? Still haven't answered that question.


I suppose it would behove the bank to funnel the proceeds back to the "trust" in order to right each one off as a potential put back but I doubt it. I want an accounting of the proceeds for the last 3 years

RobotTrader's picture

It's only a matter of time before the mortgage industry is nationalized via a Fed takeover of MERS.

Too close to the election, and Bernanke absolutely will not be embarrassed by a crash in the XLF the last 20 days into November.

FEDbuster's picture

Then it will become a federal vs. state issue.  States have traditionally made laws regarding real estate.  I cannot imagine a situation in which the states will rollover and give property rights up to fedzilla.  Of course they could say that states that don't give control of real estate law up, will not be able to participate in any federal mortgage programs.  The 800 lb. fedzilla would use the power to print "money" to once again pimp slap the states into submission.

FEDbuster's picture

You don't think the federal government would like to have control of real estate law?  Explain the "trolling" comment.

They have taken all kinds of powers from the state with the threat of cutting off the money flow, why would real estate be exempt?

Crime of the Century's picture

Meredith Whitney just released a forensic evaluation of the states entitled "Tragedy of the Commons". Basically it says, states might do whatever they're told because they can't make it without Uncle Ben. Look for a quid pro quo on the mortgage mess.

NotApplicable's picture

Ding, ding, ding, Winnah!

Given that all states are insolvent due to pension funds alone (regardless of asset "quality"), they will certainly roll over and play dead for the right payout amount. Not to mention, at least half of the states are on the hook to the Treasury for unemployment funds. They have no choice other than to rely on Uncle Sugar.

Besides, the voting sheeple love it when states are subdued under the guise of federalizing a problem in order to make a "fair" solution across all fifty states.

B9K9's picture

Not you - Robo. He's throwing out ridiculous scenarios in order to justify his cynical portrayal of the Fed's boundless 'power'. Anyone hanging out @ ZH (and has image posting rights) is just like everyone else in terms of understanding what's goin' down. But in order to gin up reactions, he's got to bait readers. Hence, the trolling remark.

Now, whether or not fed.gov wants to take over more state responsibilities is debatable. The only reason they were able to pass O-care was that the Dems presented themselves as a reform party in 2008. Fool me once, shame on you, fool me twice, shame on me. If the 112th Congress reneges on their reform platform, I'm not sure anyone is going to want to be around to see the fireworks.

Rather, all the new Congress has to do is nothing, and the whole shabang finally comes down. These things tend to go in cycles - the banker-govster crime syndicate is done. It's time to come to grips with what comes next, not indulge in some fantasy about how they are so omnipotent that they will crush all before them without resistance.

Careless Whisper's picture

MERS has no employees! It is just a web site that allows for the transfer of mortgage notes in a parallel universe.

Ned Zeppelin's picture

Fedes have power under Commerce Clause to nationalize the mortgage and foreclosure process.  Just need CONgress to act.  They will validate otherwise non-compliant transactions, even retroactively.  As long as the "deadbeat borrowers" drum keeps a-beating, which if you recall was first beaten on by Santelli on CNBC, and started the Tea Party movement, this will fly.  This legislation will also allow another time window for REMICs to be fixed. Oh, and that pesky electronic notarizations act will pass as part of it.

What it won't repair is where the same mortgage was sold twice or more.

B9K9's picture

Just need CONgress to act.

OK, let me get this straight. Are you suggesting that the new Congress, which just happens to be running on an anti-TARP platform will, once sworn into office, turn around and:

  • Authorize Ben to print $trillions to purchase compromised MBS?
  • Destroy the dollar and drive gas over $5/gallon?
  • Weaken our mission objectives in the ME?
  • Further undermine states' rights? AND
  • Once again save the hated TBTF?

Ain't gonna happen Charlie - and I have one FRN I have promised to eat if it does. Realistically, this is all that has to happen once the 112th is seated: nothing. Doing so will then launch this cycle:

  • Ben is told to knock off QE ... or else
  • Dollar strengthens, driving gas below $2-3/gallon
  • Improve our mission objectives in the ME
  • Provide greater support to states' rights, AND
  • Destroy once and for all the hated TBTF

Edit: Or are you suggesting a lame duck Congress does something of monumental significance in its last two months following a historic shellacking?

Mad Mad Woman's picture

It's going to happen in the lame duck Congress. They're going to rescue the fraudsters with new legislation that will pass so quick it will make your head spin.

FEDbuster's picture

B9K9, I admire your faith in politicians to solve problems and control situations.  With the single exception of Ron Paul, I have no such faith in any of them.  If you think the whores are going to stand up to their pimps this time around, I think you will be sadly disappointed.

On the bright side FRNs go down much easier than gold coins (you know you can't eat em).


fxrxexexdxoxmx's picture

 I cannot imagine a situation in which the states will rollover and give property rights up to fedzilla

Put a couple billion dollars of fed money tied to following the rules they make and states will trip over themselves to get it. No matter how unlawful or damaging to the electorate. One billion, of the billions, will go straight into the pockets of local politicians explaining that we must accept the new law. SEIU, UAW, NEA, AFL-CIO, get their cut first

California would kill you for 25 cents. Union bosses for 2 cents

Oh regional Indian's picture

"It's only a matter of time before the mortgage industry is nationalized via a Fed takeover of MERS."

Spot on Robo. That is what I was trying to allude to, they have all the bullets and the guns, regulatory, legislative, military, business.....

C'mon folks. It's definitely tipping time, but not as chaotic to PTB as it seems to us, down here.



B9K9's picture

Look, India got lucky by sitting around and waiting for the Brits, who had just been bled to death, were dealing with the same stuff in Palestine, and were operating in a post-Buchenwald world, to just get up and walk away from the sub-continent.

Evidently you didn't stay here long enough to meet any of the brawlers who are descendants of the same people who physically kicked out our prior masters. While admittedly the country has changed a lot, there are still a significant number of Americans who think this way:

Men, this stuff some sources sling around about America wanting to stay out of the war and not wanting to fight is a lot of baloney! Americans love to fight, traditionally. All real Americans love the sting and clash of battle. America loves a winner. America will not tolerate a loser. Americans despise a coward; Americans play to win.

Oh regional Indian's picture

B9, not sure where you came up with that idea and tone.

Since you have, I'll say this... brawlers don't win wars. They win brawls.

Real world is different from UFC and brawling.

Warriors win wars.

And I'll tell you what, I stayed long enough to see that wrriors were in short supply there. As they are here, in India, as well. 

No need to get all Jingoistic on me.



B9K9's picture

Sorry, it's just that when someone suggests yet another state takeover by the federales, it demonstrates either too much hyperbole or plain ignorance.

Rather than further usurpation of states' rights, the trend is actually reversing. O-care is now being challenged on a federal basis; whether or not it survives is moot, because it will eventually be repealed simply due to lack of funds.

The trend is deflation, which means order (ie the center) is disintegrating.

robobbob's picture

"Men, this stuff some sources sling around about America wanting to stay out of the war and not wanting to fight....Americans despise a coward; Americans play to win. "

General Patton, May 17th 1944 to the assembled American D-Day forces


they brawled rather well I think, and yes, Americans talk this way in real life SHTF moments

If you are not a US citizen, you get a pass for not knowing quintessential moments in great American speeches-even if re-enacted in famous movies

B9K9's picture

I enjoy the way you play devil's advocate with yourself. The problem is, ZH gets many readers who may believe that you're sincere about what you're writing. So, to clarify the issue for these readers, what Robo is actually saying is this:

Neither Congress or Bennie & the Fed are going to do anything before 11/2, other than attempt to maintain the status quo. That is, small scale QE in the form of POMO & front-running the mortgage mess PR aka "nothingburger".

Depending on the outcome of the election, if the TEA party sentiment (expressed as anti-incumbent) captures large gains, nothing is going to be done by a lame duck Congress nor Ben, other than try and eke out another 2 months of the same old, same old.

The reason neither Congress nor the Fed won't do anything drastic is because they know they are literally playing with fire. IOW, they aren't the only game in town, because there's this other guy down the road who goes by the name of Mic that just might get involved.

You see, he's taken this pledge about enemies, foreign & domestic, that just might get a hearing if gas ends up north of $4-5/gallon. (Stations around SoCal are now up to $3.25+ in some spots.) Secondly, he's got his own operational issues that require the $USD to remain some semblance of value. Trash the dollar, compromise mission objectives ... um, I don't think so.

If fed.gov & the Fed had all the power they claim, or that some people seem to think they actually have, we wouldn't even be here in this situation right now would be? The truth is, the ingenious model the banking state devised is going all to shit, and there's nothing they can do to stop it.

We're melting! Melting! Ohhhhh, what a world, what a world! Who would have thought that some little serfs like you could destroy our beautiful wickedness. Ohhhhhh!!! No!!! No!!! We're going. Ohhhhhhh. Ohhhhhhhhhhhhh...."

ATG's picture

Can't fool Mr Market.

Banks down -27% since failed QEII first began.

Targeting -40% and then some


whatsinaname's picture

Robo your tone has shifted lately ? Time to trade the other way around now ? Kudos to your strategy all year around. Wonder if the watershed moment is coming to the markets come November..

Rotwang's picture

Hey Robo,

It all depends on what mortgages (dependencies) are leveraged on.

So much restructuring in society has taken place since actual land was conveyed for money and consideration. That's why we have 'REAL ESTATE'.

Which is a construct built upon an edifice.

But 'REAL ESTATE' and 'land' (the stuff that humans can kiss the dirt of) are not synonoumous. Why don't you dig it out?


Ricky Bobby's picture

Maybe this MBS cluster will be the spark to a real honest to God Rebellion. What if? The little people just decided one day to not pay the mortgage and in addition clog the courts with legal resistance.

kathy.chamberlin@gmail.com's picture

the courts are already cogged my court date was 13 months out from when my attorney applied. imagine.

diesel1104's picture

I agree with your assessment 100%.  

weinerdog43's picture

Well done Gonzalo, but one quibble.  I think you need to be a little more clear about how/why Brian & Ilsa came to have a mortgage in their 'mid to late 60s.'  It is one thing to have to mortgage the house to afford critical medical care.  It is quite another to be buying a house w/a 30 year note at age 60 with the hope of flipping it for one's retirement 'savings'. 

sethco's picture

now why would they ever think they could do such a thing? Why were they allowed to? let's get to the root of the problem...

FEDbuster's picture

Shouldn't there be a law that no one over age 50 can get a 30 year mortgage.  What we need is more laws to solve these problems.  (sarcasm off)

blunderdog's picture

This view seems odd to me.

MANY older people have mortgages with terms longer than they may expect to live.  There's nothing wrong with such a circumstance.  Life insurance benefits sufficient to cover the outstanding lien address the problem of a death, and low mortgage expenses which can be covered by predicted SocSec and pension payments ensure that payments can be made until liquidation or death.

Admittedly, most buyers didn't likely expect housing prices to drop off a cliff, but that's not at all relevant to the ultimate "settlement of all accounts." 

The net effect of this situation is just to reduce the size of the estate as passed on to heirs.

What business of that is anyone else's?