Because of the ongoing securitization process, banks frequently can no longer prove that they own the mortgage for any house on which they want to foreclose, and so they are (according to Congresswoman Marcy Kaptur, MSNBC's Dylan Ratigan and others) in the process of working with Congress to try and eliminate property rights altogether, for growing numbers of Americans. With "rocket dockets" now judicially operational in many states, there are huge and growing numbers of rapid-fire foreclosure hearings, and many home owners without adequate legal representation are getting thrown out of their homes without due process. This has become a profitable money-making routine for a great many banks. (Click here for illustrative video clips that are the basis for all that follows here. After you watch the first video clip, click on the word "playlist' in the lower right hand corner of the video-clip screen to get access to the others.)
According to Ratigan, Kaptur and others, systemic and catastrophic failures in the real estate market, if not corrected, may well lead to failures within the financial and economic system of our country. Exactly how would this come about? Here's a clue: By means of the growing number of "rocket docket" foreclosures that are operating without due process, the courts (with congressional help) are in the process of abrogating our homeowner property rights.
One of the fundamental principles this country was based upon was a clear and open, stable system of property ownership, and that is now essentially being thrown in the garbage as a result of the mortgage securitization process that has led to all these foreclosure-mill foreclosures.
Property rights are the very foundation of America's socio-political-economic system, yet for a great many Americans those very property rights are in the process of being taken away by banks that are in collusion with government by way of the money-bearing lobbyists the big banks have hired to essentially buy the legislation they need from Congress. If by this means it becomes the prerogative of banks and the Congress to give and take away property rights as they see fit, we will no longer be living in the free country that our founding fathers began for us.
All these problems started with
the housing bubble and the subsequent crash, and until we can begin to get
banks to start modifying loans, instead of immediately jumping to foreclosure
proceedings, the property rights of ever growing numbers of Americans are going
to continue to slip away. But the banks don't want to grant any more modifications than is absolutely necessary because they fear that the more they grant, the more they will be forced to grant, and that could prove very very costly to them. For them it vastly more profitable to foreclose on (i.e. steal) as many homes as possible.
One reason that the foreclosure crisis is getting worse is of course that our unemployment/underemployment crisis continues to worsen. The median wage continues to fall as American jobs continue to be given to low-wage workers in or from other countries. As a result, almost 7% of American home owners are now more than 60 days past due on their mortgage payments.
Another reason so many foreclosures are occurring, is the highly unethical, if not fraudulently criminal, dual track procedure that many banks now follow, in which they secretly prepare to foreclose using one computerized system, all the while telling the homeowner that they at the bank are preparing to modify the homeowner's loan (using their other computerized system), thereby stalling and deceiving the homeowner until such time as the homeowner gets so far behind in his or her mortgage payments, waiting for the promised loan modification, that foreclosure proceedings suddenly spring into action, much to the surprise of the beleaguered homeowner who will soon no longer be a home owner, as the bank takes the final steps to seize and thereby steal his property.
Never forget that these very banks have received billions of dollars in bailout funds from the very taxpayers they now, in many cases, seek to defraud, cheat and steal from. This therefore is a war we are in. The banksters are fighting against the American people, who must now wake up if they are to effectively meet this war that has been launched against them.