Home > Foreclosure News > Lenders’ Rights: An Attack on Our Property and Due Process Rights and Dismantling the System of Checks and Balances

Lenders’ Rights: An Attack on Our Property and Due Process Rights and Dismantling the System of Checks and Balances

Upon reading the following article, I became extremely disturbed and suspicious of all the “judicial states” will do this or that talk. It is almost as if the media is targeting judicial foreclosure states and promoting other means of ending foreclosure situations at the behest of the lenders.

My question is what happened to our desire for Due Process? Our desire for Checks and Balances? Right now many states are what are called Judicial Foreclosure States, meaning that the lender cannot foreclose without filing suit, and the homeowner is given a chance to present defenses to that suit. And in our American historical system of justice that is supposed to be a bad thing now?

Lenders are willing now to cut checks to have homeowners move and relocate. Does anyone want to know why? Could it be perhaps that they have a share of blame in the crash of the market? Sure people like to talk about the person not paying the mortgage, and purchasing a home they couldn’t afford, but who lent them the money? Let’s get serious. In 2007, my yorkie could have gotten approved for a $500,000 loan. And has anyone asked a person in foreclosure what happens if they make a mortgage payment while in the middle of the suit? The bank sends the payment back. They have to, or else they waive acceleration which is required for foreclosure.

Lately, it seems so easy for people to throw around terms like “relocating” and “short sale”. What about the homeowner that has lived in their home 20 years, raised their children there, and fallen on hard times? Is it that easy for them?  Lenders are smart, and they lure them in with talk of avoiding a deficiency judgment, only to not tell them that they are waiving their rights to sue the lender in return.  Is that justice?

Our government bailed out Fannie Mae and Freddie Mac and told them to help homeowners. The truth is that the way they are to help homeowners is to cram a multi-billion dollar crisis affecting millions through a 2% window. It won’t work. Dictation from the government rarely does.

Anyone familiar with the documents these lenders use to foreclose on people knows that if any case needs checks and balances it is these cases. Problems abound. Normally the person suing for foreclosure isn’t even holding the mortgage and note. That means they don’t have the right to sue. If they somehow pass that then they have other problems with the Note or documents that they try to cover up. It is fraud. Do we expect the government to be able to fix that? Rewrite the past?

No, what will fix that is one case at a time in a courtroom with a homeowner who is able to tell their side of the story, and with an attorney who will hold the bank accountable for the documents they have filed to take someone’s home. Not someone’s car, someone’s HOME.

If the goal was to stop or slow litigation in “judicial” states, then I have news that might be hard to take. Stopping it now will only make it worse in the future. Lenders are wrongfully telling people not to pay on their homes in order to get a loan modification. Recent caselaw is saying that this is enforceable against them. What this means is that the homeowner who did what they were told is in foreclosure because of the bank itself. Now lenders have caught on and have stopped telling people that. Instead, applying for a loan modification affects your credit. Well it affected the credit of a lot of people who stopped paying when they were told to also.

Not to mention the future surge of litigation that will arise over titles that are not clear because of wrongful foreclosures. The lenders, realtors, and everyone who participated down to the title companies (that the lenders love to pick in foreclosure cases along with appraisers) bear liability.

Wouldn’t it be easier to give the homeowner a fair shot now to present their case?

When the market crashed, we all knew there would be a price to pay. Destroying our historical principles of justice now in these types of cases in order to force the homeowner to take the entire burden, without the bank having to prove their own case, is absurd, and stands against our history of property and due process rights. Allowing someone to come into Court with documents that are false to take such a precious dream away from someone to many is akin to allowing the same to take someone’s freedom. Would we allow that in such circumstances? Would we?

The article said, “Rob Pitingolo, research assistant with the Urban Institute, emphasized that it’s not the judicial process itself that is the problem, and explained in states such as Florida, the reason why there’s a backlog of foreclosures is because of a lack of resources.”

If resources are needed to protect our system of justice, then let’s get them. If we can bail out entities that claim they will help homeowners but later refuse to do so, we can surely make sure that we have enough judicial resources to ensure fairness and justice in each case one at a time.

Now isn’t the time for a big federal government to promise everyone the moon. Now is the time to get grassroots about it all. This is affecting every neighborhood, every community. One homeowner, one courtroom, one case at a time. And the Constitution still applies to them all.

http://www.dsnews.com/articles/judicial-states-will-lag-behind-during-recovery-capital-economics-2012-05-18

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  1. June 15, 2013 at 1:14 pm

    Wonderful information. What if the trial judge won’t follow the law of the land on issues already decided in Federal Court for example Elliot v. Piersol (Jurisdiction) and the appellate court rather than reversing the trial judge, stand defiantly shoulder to shoulder protecting her AND refuse to make a final determination , there by allowing the trial judges fraud to let the holders of forged deeds keep possession of the true title owners property?

  2. June 15, 2013 at 1:18 pm

    …and they have their mortgage for their forged deed at Bank of America?

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