The Fight Mortgage Foreclosure Crisis

Foreclosure Starts Hit One Million So Far This Year

Here is the result of the Obama administration’s anti-foreclosure plan….

The US Housing Market has hit One million new foreclosures which have been filed so far in 2009, according to estimates by the Center for Responsible Lending. This comes on the heels of a new report from the Mortgage Bankers Association, the first quarter 2009 National Delinquency Survey, showing that 12% of all mortgages are now delinquent — the highest level since the MBA started measuring 37 years ago.

The NY Times reports: “Foreclosures are costing neighboring families hundreds of billions of dollars and dragging down the entire economy. Foreclosures started today’s crisis, and foreclosures will keep the crisis going if this epidemic continues.”

The Key issues to this “mortgage crisis” and the “foreclosure fight” I want to point out are:

The Government and is not focusing on (or possibly intentionally hiding) the real truth about the root cause of foreclosures. As we know, many of the foreclosures being filed the Lenders who are not the “Holder in Due Course” These Lenders do not own the note!
On a side note, these lenders count on homeowners not defending themselves and so far they are right as less than 1% of people served with a foreclosure defend themselves, they count on Americans to do what they always do… believe the government and fear the banks!

Not to mention the TILA, RESPA and other violations which are present in over 80% of all loans written between 2002 through 2006, which puts them in Jeopardy of having to pay the homeowners their money back in penalties …OR…being forced by the legal system to give the homeowner a “Free and Clear” title and ownership of the home. A Forensic Loan Audit will find these violations!
You may not know that Wall Street and these lenders intentionally created Mortgage Backed Securities to increase their profits. This is how your mortgage payments keep getting changed to different companies. This has caused a serious problem for them as they cannot prove ownership of the mortgages they are foreclosing!

If you haven’t read the Obama plan, has an unrealistic goal to prevent up to four million foreclosures. The Plan also is scheduled to give up to $75 billion in incentives to lenders to reduce loan payments for troubled borrowers. This past March, according to the US Treasury, Approximately 100,000 homeowners have been offered a modification, there are not many modification offers have been accepted by homeowners because it DOES NOT HELP THEM! We have seen unverified numbers that approach a HUGE total of 75 modifications out of 100,000 applications! You do the math on the percentages

Keep in mind, the Obama Plan has restrictions in the Loan-to Value based on the current market value of the home. I know I would not qualify as my home has dropped in value from $320,000 two years ago to a current value of around $190,000.

The Center for Responsible Lending projects 2.4 million foreclosure starts in 2009, with these foreclosures reducing the property values of some 70 million nearby households a total of $502 billion — about $7,200 per family. Through 2012, those numbers will rise to at least 9 million foreclosures that will cost 92 million neighboring families $1.9 trillion in lost home value. They also report that currently a new foreclosure starts every 13 seconds — nearly 6,500 a day.

Here is the problem as I see it…Obama is counting on and negotiating with lenders and loan servicers, the Same Lenders who manipulated the market and committed intentional Loan Fraud, to work with homeowners in good faith to dramatically increase loan modifications that actually stop foreclosures and keep people in their homes. Obama may as well negotiate with Terrorists, he will probably have better results!

Loan modifications will not succeed for homeowners with shallow fixes, but the Lenders will do them to eliminate the previous mortgage and the potential Liability it carries! Often times the modification will not lower a homeowner’s monthly payments and rolls all of the costs into the new loan!

Let me ask you, do you want to finance your home above the market value, include lender legal fees and be in debt for 40 years allowing the lender to manipulate you and scare you into submission. These lenders are similar to the Borg in Star Trek “You will comply or you will be assimilated” (assimilated meaning foreclosed).

Or will you be the Homeowner who Defends Your Legal Rights, get “mad as hell and not take it anymore” and find the fraud in your mortgage, Have Us perform a thorough Forensic Loan Audit and make the situation with your mortgage bode in your favor, make the lender negotiate with you! Put the odds in your favor, find the Fraud in your loan and avoid and/or stop your home foreclosure

Editorial by Buddy Toth, Axis Financial Consultants, www.how2fightforeclosure.com