More Foreclosures Are Not The Answer to The Foreclosure Problem….

More Foreclosures Will Not Solve The Foreclosure Problem.
What’s that they say about doing the same thing over and over again and expecting a different result?   Well, we’ve been   doing the foreclosure Kabuki dance in this country for a little bit longer than a few days now and no one, not anyone at the local, state or federal level are offering any solutions or alternatives to just straight foreclosure.   That’s just stupid. it’s a real problem that we have not all sat down and worked out   more sensible way to resolve one of the critical issues facing this nation, but then again, this nation hasn’t been showing much smarts  for a very long time now.
But there is a simple way that we could begin to work as communities to address some of the complex social, financial and legal issues that the fraudclosure insanity demonstrates.   Let me be clear”¦.this nation would be far better off and much further along the path toward resolving the fraudclosure scourge if it were not for   the fraud, collusion and corruption that sits right at the center of the intersection of government policy and bank and Wall Street lobbying.   This has been, and continues to be, a slow speed tragedy caused principally by fraud, greed, collusion and government corruption. Long years now into this crisis and the failure of our government to respond in any meaningful way is proof either of gross corruption or staggering incompetence or both.   Whatever the answer to that question is, the implications for the future of this nation are terrifying.
When the financial system collapsed in 2008, our government rushed in threw billions of dollars at the   banks.     But they didn’t just throw it at them with no plan, as described in Neil Barosky’s book, Bailout, the government had bank lobbyists and government insiders like Timothy Geithner to develop the plans on how taxpayer dollars would be used to, ” foam the runway” for the banks, Geithner-speak for, ” just give billions of dollars to my friends.”   They   threw all that money at them and they continue to perpetuate the lies, the fraud, the criminal conduct and the perversions of a free economy  even today.
But make no mistake, what has occurred since 2008 is nationalized fascism. Fascism, the blending of the corporate and state interest such that neither are distinguishable.   They are all quite direct in the explanation and justification. “˜Too Big to Fail” isn’t code, it’s direct and clear”¦national policy.   Too Big To Fail is fascism.   Too Big To Fail is Unable to Prosecute. Too Big To Fail is Unwilling to Regulate.   Too Big To Fail is a continued beating of the American Taxpayer that continues to bail them out.
But I digress.   I was about to describe how the current response to foreclosure is not working , how it will never work and describe what will work.   The perversions in the marketplace have continued to us all down since before 2008, but those perverted market forces got supercharged after 2008.   And the biggest perverts in the market, Fannie and Freddie are supercharged, acid tripped market perversion.   Increasingly, the private label mortgage holders will deal. And consistently, the private servicers would deal, offering principal reductions, deficiency waivers, modifications and relatively quick short sale approvals. Not so the street walker Fannie and her drug addicted partner Freddie.   Slaves and prisoners to their own perversions, clamped in the handcuffs of federal policy, they will not offer the types of deals that are commonplace in today’s marketplace.   Just try getting a waiver of deficiency from Fannie.   They will not put it in writing. And why?   So they can continue to lie about their exposure to their caretakers, their enablers and to the Amerikan people.
But there is one way out of the wilderness, one solution that I have put to work repeatedly in the recent past.   Foreclosures will not solve the problem, but we all need some way to get foreclosures concluded, closed, off the books entirely and done.   Modifications will not do it, the borrower cannot stay with the same abusive spouse.   The only way to solve the myriad problems is for private investors to enter the foreclosure space and begin taking out the loans one by one or pool by pool.   For this to occur, losses must be realized, but the losses are already there”¦and they’re not going anywhere.   Contiuning to juggle them on the books only perpetuates the perversion. It enables the drug addict and masks the truth.   The big lie continues.   They allow the lie to prop up the institutions that got us all into this mess and which fail us even still.
A secret to moving at least some property and families out of foreclosure purgatory and back into highest and best economic use is to allow private investors to purchase the notes and mortgages of defaulted properties so that they can either be modified with the existing homeowners or rehabilitated and sold to new third parties. It’s a far more elegant market based solution to the problem than the current mess and one that should have broad based appeal.   This proposal is merely an extension of what should be happening in foreclosure auctions all across this country”¦allowing third party private bidders to take the high bids at auctions, but this is not occurring primarily because Fannie and Freddie are taking the properties back”¦.no matter how high the third party bid”¦so that the property can be held, maintained then sold back to China.
Allowing private, third party bidders to purchase homes out of foreclosure through note and mortgage assignments would reinvigorate communities by putting contractors to work again, it would help build communities by getting families re-integrated into neighborhoods that have been ravaged by fraudclosure and it would help unclog our courts, jammed up as they are with a foreclosure scandal that they will never recover from.
But the dark forces that shift underneath the surface prevent this dream from becoming a reality.   Instead we will all continue the long slide into a much darker and worse place.   We will continue to throw families and children into the street. Why?   So we can continue to destabilize communities and destroy families.   Why? So the banks can continue to extract ill-gotten profits from the communities that supported them. Why? So Washington can continue to fund the evil empire and repatriate Chinese debt. Why? So we can continue to destroy the very foundation of this nation.
It’s not at all a pretty picture, but that’s the reality of the nation we live in today.