The fact is foreclosure will happen anyway, no matter who holds the note, Passidomo said. The reality is the borrower borrowed something from someone, and didn’t pay his debt, she said.
The most offensive thing about this quote is it’s coming from someone who wants to give away homes to banksters who are far more guilty than the homeowners they wan to throw into the street…
I still can’t believe how many uninformed people think the “banks did nothing wrong”. They made a fraudulent end run around SEC regulations by magically transforming “loans” into “stocks”
The banks churned out securitized mortgage sausage and now they are kicking people out of their houses before the courts wake up to the fact that the banks own stocks, not loans — stocks of the bankers own making — stocks that were used to conceal loans so the banks could loan MORE money without increasing their SEC reserve requirements. Flat out SEC fraud. Via this securitization fraud their loan-to-deposit ratio shot up to 99 to 1 instead of the SEC mandated 9 to 1. This is such a mess we don’t even know if TARP paid off a homeowner’s default already, or not. Recreating these loans is like trying to make a pig out of pork sausage.
During loan renegotiations the egregious fraud of illegally lending $99 dollars for every $1 comes out into the open, and in order to stay in business, in order not be forced by SEC regulations to close their doors, in order for these fraudster bank CEOs NOT to go to jail, these criminal banks must magically come up with EIGHT TIMES more money in deposits than they already have. They need to show $9 for every $99 they lent out. Not 1$. $9. And they can’t do it. They simply can’t do it.
So the only way to avoid total disaster for their greed and irresponsibility, is to steal your house out from under you without even trying to renegotiate terms. Fraud.