I’ve been saying for months now the market is slowing and there are signs of another recession in the real estate marketplace. Today, I got additional confirmation of my fears.
If we are to survive another 10+ years of pain many experienced, you need to know some cold hard facts and what impact they have on your future. For many years in SW Florida, I’ve been known as the “truth teller”. I even have a sign in my office saying “speak the truth but ride a fast horse”, as a reminder truth isn’t very popular but it is essential to your life.
There are more foreclosures coming. The banks first huge wave of foreclosures was what one could call “the laydowns”, the ones who wouldn’t, couldn’t or had no means to fight back. When even that proved to be problematic because the banks own recording system had so many flaws, no one really possessed the “authentic paperwork” to allow them to foreclose. What did they do, they fabricated, a very nice word for FORGED, documents and found low lying underlings willing to participate signing these documents representatives of the lender. The problem was, they didn’t work for that lender and were exposed as “Robo Signers”. After the lenders were outed for this behaviour a cottage industry was born of document preparation companies who then took over a lot of the nasty work from the lenders themselves. It appears more than not, these foreclosures were carried through even though the lender had no legal standing to do so!
We’ve learned the judicial system appears to be rigged like most other things in our country and courts early on, slammed dunked all foreclosures in favor of the banks/lenders, after all they’re our trusted source, right? Wrong! If anyone still thinks the banks have your best interest at heart, you need to think again. My best advice on this matter is to put your money in a not for profit credit union NOT in a bank. They have all the advantages and they run the credit union for your benefit, not those of the stockholders.
This knowledge unveiled even more disturbing information like:
- Most mortgages originated after 2001 are likely “dirty”, meaning they have a clouded title. A clouded title is problematic because it’s “unclear” who has interest in the home. A clear or quiet title is what we all want!
- Even though title companies do a title search on each transaction, it’s not enough. The very nature of fraud is that it’s usually not easily visible. Unless you’re educated on what to look for on the actual documents themselves, i.e. did the person who signed your papers as the lender actually work for that lender at the time? Was that lender even still in business at the time of the transfer? Was the Notary who verified and witnessed the identification of the signer really a Notary at the time? Unbelievable but very real and true concerns.
- Banks/Lenders very rarely and most no longer at all service their own loans. Service means collect the payments, allocate the payments to the proper account, maintain your escrow for insurance and taxes and provide tax statements. These new companies make very little money for the servicing of your loan but surprise, the make a killing if they can “trick” you into foreclosing and it’s not that hard!
- Everyone who has purchased a foreclosure has not only the potential but great odds of having a title issue at some point. One story of a couple who purchased a foreclosure for $220,000, invested $60,000 in repairs and remodeling, had a knock on their door almost 2 years later advising them the visitor was legally the true owner of their home.
- Reverse mortgages are next on the foreclosure train, those are primarily held by seniors, our most vulnerable.
- Most borrower’s can’t get the information …. who owns my loan.
What does all this mean? This is not your Grandfather’s or even your Father’s Banker/Lender, these are the new pretender lenders of our day. This is showing itself to be THE biggest fraud ever perpetrated on the American taxpayer in the history of our country. Sadly, no one is coming to bail us out!
I’ve been trying to absorb everything I can about this subject for the last couple of years but I’m older and not everything sticks, especially if I only read it once. I can’t quote accurate statistics or give you the percentages but I can point you to those who can. I feel it is my job, although it’s not a very popular one these days, to educate the public about these hidden elements so you can be better armed and do your own due diligence. At the very least, we should all know who owns our loans!
This is a link to the source from whom I’ve learned the most, Neil Garfield!
More later! Jo