Based upon my current understanding of the mechanics of the now decade long, open-ended foreclosure crises, I'm convinced there is a solution hidden in plain sight. I call it The Re-Redistribution of Housing Wealth in America Program.
My understanding follows having worked in the mortgage foreclosure realm since the 1980s, which is about the same time as the now infamous Wall Street brainchild Mortgage Electronic Registration System (MERS) was conspired by the too big to fail financial Goliaths of the day. [Conspire - to plan together secretly to commit an illegal or wrongful act or accomplish a legal purpose through illegal action.]
I worked for the (then) second largest mortgage loan servicer which was based in St. Louis, the nation's mortgage loan servicing capitol. No coincidence MERS conspirators were operating in St. Louis, too. I knew some of them. I was hired to work as a non-performing asset manager in a newly created department called Loss Mitigation. Its mission was to protect mortgage investors' interests against potential losses. My team was assembled to work a particular mortgage investor's portfolio which consisted of about 7,500 "at-risk" loans. [Mortgage Investors included those entities who purchased the mortgage backed securities from Wall Street, and then hired a mortgage loan servicer (to whom you send your monthly payment) which, for a fee, would collect those payments, administer escrow accounts, assess late fees, cure delinquencies pursuant to mortgage investors' guidelines, and initiate foreclosure on behalf of the mortgage investor who owned the rights to enforce the terms of the mortgage note.]
Older than most of my co-workers, and given free reign to create a niche job description, I quickly assumed a variety of loan servicing and loss mitigation functions both traditional, and experimental - some of which remain in practice today. In addition to structuring loan workouts for delinquent borrowers, I emerged as Plaintiff's mortgage loan servicing expert in Federal Bankruptcy Courts and foreclosure proceedings in NY, NJ, and PA.
Protecting mortgage investors' interests included investigating mortgage loan origination fraud, appraisal fraud, insurance fraud, and predatory lending patterns and practices. Licensed in real estate, insurance, appraisal, and mortgage loan origination, I brought a decade of experience as an independent consultant working with homeowners who faced judicial mortgage and municipal tax lien foreclosure. For the security which accompanies a regular paycheck and instead of working for homeowners, I found myself working for their adversary.
Refusing a transfer to work on another at risk portfolio in another part of the country, I then left the corporate environment for the non-profit sector to concentrate on consumer advocacy. For the last 15 years or so I have been Executive Director for Society For Preservation of Continued Homeownership (SPOCH), a 501(c)(3) homeowner advocacy I co-founded in 1998 with my wife, a CPA, which has provided help to thousands of families in their fight to retain home ownership using unconventional tactics and strategies providing friction to slow or stop the foreclosure process. Recently, our daughter has been volunteering her time and legal counsel in particular matters including The Re-Redistribution of Housing Wealth in America Program which I've been advised to and have since Copyrighted.
I've written several books including one on Ethical Short Sales, and "Fighting Foreclosure - How to Cope with a Mortgage you can't Pay, Negotiate with your Bank, and Save your Home." So I have some history from which to draw upon in proposing The Re-Redistribution of Housing Wealth in America Program, a nationwide solution to the (predatory) mortgage foreclosure and vacant housing crises.
Taxpayers should brace themselves for Round 2 of
Privatized Profits but Socialized Losses !
We can and must stop another bailout before the corporate shills posing as our elected representatives agree to open taxpayers' checkbooks and give blank checks to their Wall Street paymasters. When Wall Street wants a bailout, Wall Street gets a bailout. Remember the $1.2 Trillion "Grand Heist" it pulled off just a few years ago? Brace yourself for another round of (borrowed) public money used to replace Wall Street's private losses. Even if Wall Street alleges to be helping Main Street, it's still a bailout. I'll use the word alleged a lot in this essay. [Alleged is some claim or something of which you should be wary and unconvinced.]
If you aren't at the table, you're most likely on the menu.
Claiming to have certain rights and then proving to have those rights is usually done in front of a judge and in a court of competent jurisdiction. Fortunately, when parties in dispute make claims truthful or false, there are laws by which those claims can be scrutinized. Once such body of laws by which allegations can be proven to be true or false is the US Uniform Commercial Code. It's pretty much the Rosetta Stone used to navigate complex commercial agreements and transactions including Negotiable Instruments.
I'm not a lawyer, but if mortgage notes are negotiable instruments it makes sense to me that the origination, sale, purchase and subsequent assignments or endorsements of mortgage notes (and their rights) would fall under the jurisdiction of Article 3 of the Uniform Commercial Code - Negotiable Instruments.
One outcome of the as-of-yet undecided homeowner equity wars between 1) Wall Street & Its Bamboozled, Angry and Litigious Investment Community, 2) Wall Street & its US Regulators, and 3) Wall Street & Main Street, is the number of abandoned houses which greatly outnumbers the ranks of our nation's homeless families. Sadly, those least responsible for current conditions shoulder most of the financial and emotional pain. Some homes were abandoned after their owners were formally evicted by court order and sheriff's deputies (many of whom are employed by private contractors including law firms hired specifically to handle loan delinquencies, collections, and repossessions). Some now empty homes were abandoned by families not evicted but simply threatened with foreclosure, terrorized by sadistic collection practices, and then "voluntarily" fled. Sometimes on the advice of their loan's servicer. Hundreds of thousands of empty homes remain mired in and suspended by a mortgage securitization scheme which has raised serious doubts about its legitimacy.
Doubts include who or what now claims ownership of these once valued residences, and doubts about the legal rights needed to enforce alleged mortgage notes used to evict their former caretakers. This is a serious, serious problem not only for Wall Street speculators, but for everyone else. We know when Wall Street wants a bailout, Wall Street gets a bailout. Been there. Done That. Still here. Here comes another bailout!
Watch out Social Security! Watch out Pension Funds!