C Jax Grey 
Member since Jan 10, 2013


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Re: “Taking a Stand

On the other hand - I DO NOT carry water for the banks, Wall St, et al scumbags who engaged in "control fraud" of epic proportions. I've been aghast to the point of blind rage that large numbers of these slimy money changers didn't face trial and prison. All the "settlements" are just a drop in the bucket of what was stolen. And the continued incompetence, lack of accountability, and arrogance of the large servicers & Wall St is maddening.

But I did want to to point out the hypocrisy and the inconvenient fact that some in our community are getting over big time... at the expense of the rest of us & that the "poor, foreclosed homeowner" meme is mostly bullshit.

I can provide HUNDREDS of local cases where people have lived payment free in a property (or skimmed the rent from unsuspecting tenants) for 2-5 years!

Does anyone out there really think that all these losses are really gonna be paid by the banks?? Ha! Wake up. All these losses are "externalized" to the rest of us. Privatize the gains, socialize the losses.

There is so much ignorance & misplaced policies about this subject. A much fairer resolution would be to foreclose or short sale these overextended borrowers as quickly as possible and recycle these homes into the hands of new buyers who actually have to QUALIFY for their loans, with the now-prudent loans being written, at sustainable, reasonable home prices; not that delusion mirage that manifested from 2002-2007.

These "poor, foreclosed" homeowners made bad decisions, bad trades, and often lied to do it. They should have some accountability and at least feel the pain of having to move out after losing the home.

And even these folks can qualify for a new loan in 2-5 years and buy back into a home at a more reasonable price than the bubble prices with a sustainable loan.

But these big handouts to the most irresponsible players is nonsense. Where's the responsible people's handout? The people who actually struggle to pay each month? You know, perhaps someone like you??

12 likes, 0 dislikes
Posted by C Jax Grey on 01/11/2013 at 5:46 PM

Re: “Taking a Stand

"Taking a Stand"?? Against what? Taking a stand against lenders who trusted them with 100s of thou$ands for their OWN profligate, irresponsible borrowing & spending? And, in CA, you sign the property away BEFORE you even get your new keys. It's called a Deed of Trust and gives the lender the power of sale & to seize the property if you don't pay. Any borrower in CA signs & notarizes to this UPFRONT. So where's the big, evil underhanded foreclosure surprise here?

OK - let's look at one of the profiles in this article in more detail, Mrs. Hall:

- Bought property in 2002 for $277,000. How much downpayment? ZERO.
- Cash out refi'd about $50k on a new $323,000 loan in 2005. Cha ching!
- Cashed out again into a $426,400 loan in 2007. Cha ching!
- As of Feb 2010, $39k in arrears which indicates not making a payment since at least some time in 2009.
- As of Nov 2011 $110,507 in arrears / no payments.

So, to review:

- Very little skin in the game (ZERO downpayment to get whole ball rolling)
- Likely 1 or even ALL these loans were obtained under "inflated", stated income (aka Liar Loans) scenarios. In other words, income may have been falsely reported higher in order to secure a loan they wouldn't have qualified for had their REAL income been used (btw - lying on a loan application is a federal felony, but I digress)
- As much as $100k+ was obtained via cash-out refis
- Have lived payment free since 2009
- Now they get to keep the home And get $320k knocked off of the debt THEY AGREED / SIGNED a contract to pay back
- So it appears the Halls have gained at least $400k in benefits on a property that they only originally "paid" $277k... and which is now currently worth only about $200k at best.

Now there's no free lunch in this world, so this convoluted "windfall" for the Halls comes from somewhere, but where?

My bet's on the US taxpayer generally, and more specifically local renters, 1st time homebuyers, and homeowners who actually PAY their bills each month.

How does it feel, as a renter to know so many around you are living free as you struggle to pay your rent?

How does it feel as a 1st time homebuyer getting beat out on properties constantly because there is "no inventory" and all the hoops & having to damn near give DNA samples just to get a loan whilst these irresponsible borrowers get away with loan fraud and free living?

How does it feel as a homeowner who DIDN'T lie to get a big loan, didn't lever up into to too much debt, and pay your bills each month whilst many other neighbors live in a free house for 3-4 years... and get rewarded for doing so?!?

So if any EBX readers who belong to any of the groups above & cheer this Taking a Stand as a "victory", they might want to consider that they're paying for this "win" sticking it to the "banks" (btw - none of this lost $ is the "bank's" $, they are just middle-man servicers - the real loss is "investors" such as your pension fund, college endowments, etc). Might want to consider.... that you all are getting SCREWED !! Yay!!!

Yeah I know these facts contradict the glowing narrative here of victimhood & "community empowerment" but MOST of the foreclosures in this area have been completely justified.

15 likes, 3 dislikes
Posted by C Jax Grey on 01/11/2013 at 5:16 PM

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