Diary

Foreclosure 'Scandal' is a Fake

Democrat Speaker of the House Nancy Pelosi said last Spring that we would find out what is in the health-care bill after it is passed into law.

 

This quote certainly will go down in history as one of the most bone-headed of all time. After all, the health-care bill was only 2,000 pages. Couldn’t somebody in Pelosi’s office have read it since it is going to have such far-reaching consequences for every American for decades to come? Or couldn’t ten people each have read 200 pages and each submit a summary to be posted on the internet?

 

Apparently not. It would be too much work. And they wouldn’t understand it anyway. Nobody does.

 

Now word has come out that Bank of America is suspending home foreclosures across the country because its employees had signed off on hundreds of thousands of foreclosure documents without reading them. BofA was responding to pressure from Democrats, left-wing anti-bank pressure groups, and the media.

 

What do these two incidents say?

 

It says that the Democrat party has two approaches to two different types of documents:

 

*It cares little about actually knowing the details of the far-reaching 2,000-page health-care bill that liberals want to impose on America.

 

*Yet the same liberals are going nuts that bank employees are signing off on millions of pages of bureaucratic home foreclosures without reading every word.

 

These foreclosure notices are simply legal boilerplate formalities made after somebody stops paying their mortgage. But to a liberal, these are gaping loopholes waiting for Barney Frank to walk into and start an investigation.

 

My gosh, look! This document says the owner stopped payments on January 31 but it was February 1! Stop the foreclosure!

 

And don’t think that this is not precisely what the Democrats are looking for – any reason to hamstring the banks, including the smallest, most frivolous technicalities.

 

We also have seen this type of activity in the criminal justice system where some lefty lawyer gets a rapist off the hook because the arresting officer mistakenly circled AM instead of PM for the time of arrest.

 

This is socialism at work, friends: Nitpick every document and nullify it on technicalities if it helps the leftist cause. On the other hand, forget about reading the actual monster bills that Democrats write in the comfort of their congressional offices.

 

There were 2 million homes in foreclosure in August. The average period today between the first missed payment and foreclosure is 478 days!  So obviously the banks are not rushing anyone into foreclosure. These foreclosure documents are procedural measures closing the case. If the homeowner had a valid reason to challenge them, the document would not reach that point, particularly in today’s market when banks don’t even want these homes and would be happy to negotiate any solution besides foreclosure.

 

But don’t let the media know that the documents haven’t been fully read.

 

The other side of the foreclosure coin is that many thousands of homeowners have decided to walk away from their contractual mortgage agreement even though they indeed could pay it. Because they got into a property and have seen it fall in value. So many owners are willing to walk away even if they are losing an equity share in the downpayment. And let the bank have the devalued property.

 

This is not the bank’s fault that their home has fallen in value; it happened in the economy. Yet leftists are secretly and gleefully urging such “walk-aways” in order to screw the banks and let consumers off the hook.

 

Yet there is no call by Democrats to investigate these “walk-aways”, to look into the walk-away’s financial records and prevent them from abandoning the property if they have the money. No, the Democrat party would block that with all its power.

 

How about an investigation into leftist propaganda urging “walk aways”? Because it certainly exists in many forms, most significantly in decades of anti-capitalist propaganda that says that “banks have all the money”.

 

Nope, ain’t gonna happen.

 

But, oh boy, those pesky foreclosure documents need to be read, every single line. And the ultimate result is that foreclosures will grind to a halt and banks will be tied in knots for years to come. Because this whole fiasco is not about homeowners or fairness – it is about certain people engineering yet another opportunity to undermine the private banking system, drown it in paperwork and lawsuits, and halt its operations. And at this critical economic time, the results will be disastrous.

 

And the reason we have so many foreclosures in the first place is because the banking system has been undermined by the government for decades, with banks being forced to loan trillions to anyone who wanted it. And those most likely to walk away without any loss of downpayment or equity – because they didn’t have any – are the same ‘poor’ people to whom the government has forced banks to lend.

 

Here’s a test: Let’s pick 1,000 foreclosure documents at random and, out of the goodness of our hearts, give the owners their house back. And see how many of them can handle it. In fact this test would show that these foreclosures are perfectly legitimate and this ‘scandal’ is a fraud. But to the media and the Democrats foreclosure is just one big conspiracy against the people of America.

 

If only it were so.

 

Here’s an interesting twist to this story, however: Even the Obama administration is publicly opposing this war against the banks because it is going to slow the recovery and everybody  knows it.

 

But don’t tell that to the anti-bank zealots behind this phony ‘scandal’.

 

Please visit my website at www.nikitas3.com for more. You can read excerpts from my book, Right Is Right, which explains why only conservatism can maintain our freedom and prosperity.