{"id":13382,"date":"2010-10-17T11:24:07","date_gmt":"2010-10-17T18:24:07","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=13382"},"modified":"2010-10-17T11:24:09","modified_gmt":"2010-10-17T18:24:09","slug":"rule-of-law-and-all-that-the-foreclosure-mess","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/13382\/rule-of-law-and-all-that-the-foreclosure-mess\/","title":{"rendered":"Rule of Law and All That: The Foreclosure Mess"},"content":{"rendered":"

Suffice to say, I take a different view of the current foreclosure – robo-signer – problem now confronting the mortgage industry. Where Greg calls the banks’ fraud upon the court “procedural laxities,”<\/a> I say the banks are committing, wait for it, “frauds upon the court.” <\/p>\n

Greg does a neat rhetorical trick, by shifting the focus from property rights to some kind of tort-based argument where the homeowner has to prove harm. Don’t be fooled. Property rights are not about harm. They are about who can prove superior title. And if banks bring fraudulent documents into court to assert that they own properties, they should be punished. In North Carolina, we call this Obtaining Property by False Pretenses, a Class H felony, punishable by up to 30 months in prison.<\/p>\n

Where Greg says your home was foreclosed because you stopped paying it, I say your home was foreclosed because someone who could not prove an ownership interest in the home came along and committed a fraud by falsely asserting they could, thereby depriving you of your superior property rights in the home. <\/p>\n

Where’s the “rule of law” I hear so much? Where are these sacred and inviolable property rights I hear about? <\/p>\n

There’s been a lot of handwringing about consumers who should’ve known better when they were taking equity out of homes in 2005 and 2006. And about buyers who were mortgaging too much to buy those $400,000 homes on $50,000\/year incomes. And about how, even though shady originators and greedy banks were selling these pipedreams, it was the buyer\/consumer who should’ve known better because, after all, the buyer\/consumer signed on the dotted line.<\/p>\n

Now the shoe is on the other foot. In other words, cubicle dwelling robosigners (who I believe are not the real criminals, but merely patsies), were… ummm… not reading what they were signing. <\/p>\n

Caveat emptor, and all that.<\/p>\n

Yes, the timing is suspect because we’re in election season. This problem has been around for years. I first learned about it in detail last year, which means I Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Suffice to say, I take a different view of the current foreclosure – robo-signer – problem now confronting the mortgage industry. Where Greg calls the banks’ fraud upon the court “procedural laxities,” I say the banks are committing, wait for it, “frauds upon the court.” Greg does a neat rhetorical trick, by shifting the focus […]<\/p>\n","protected":false},"author":62,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[79],"class_list":{"0":"post-13382","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-general","7":"tag-foreclosure","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":5613,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5613\/a-workout-loan-can-be-a-win-win-solution-to-avoiding-foreclosure\/","url_meta":{"origin":13382,"position":0},"title":"A workout loan can be a win-win solution to avoiding foreclosure","author":"Greg Swann","date":"November 15, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0A workout loan can be a win-win solution to avoiding foreclosure We talked last week about lender \"workout\" loans -- a scheme lenders have come up to keep homes from falling into foreclosure. The premise is simple:\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4418,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4418\/fannie-and-freddie-fall-to-foreclosure-but-still-lenders-lend\/","url_meta":{"origin":13382,"position":1},"title":"Fannie and Freddie fall to foreclosure, but, still, lenders lend","author":"Greg Swann","date":"September 14, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0Fannie and Freddie fall to foreclosure, but, still, lenders lend I write this column at the beginning of the week, and it appears at the end of the week. My topics are usually timeless, but, if I\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":100,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/100\/the-sky-is-always-falling-except-when-it-isnt\/","url_meta":{"origin":13382,"position":2},"title":"The sky is always falling — except when it isn’t…","author":"Greg Swann","date":"July 18, 2006","format":false,"excerpt":"Foreclosures are up in Arizona for the first six months of 2006, as compared with the last six months of 2005. The will be cause for sustained gloating at the Arizona Republic, so here is the real news, from the Business Journal of Phoenix, before it goes through the Spin\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":975,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/975\/bank-relationships-vs-mortgage-brokers\/","url_meta":{"origin":13382,"position":3},"title":"Bank Relationships vs. Mortgage Brokers","author":"Cooksquared","date":"January 31, 2007","format":false,"excerpt":"Every property I have ever purchased has been with the help of a mortgage broker. After my recent trip, I have started to wonder why this is the case. The obvious answer is simply their access to cheaper capital. Brokers can secure rates 50 to 100 basis points (.5%-1%) lower\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":15092,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/15092\/mine-mine-mine-are-defaulting-homeowners-criminals-when-they-take-the-stove\/","url_meta":{"origin":13382,"position":4},"title":"Mine, Mine, Mine! Are Defaulting Homeowners Criminals When They Take the Stove?","author":"Tony Sena","date":"September 12, 2011","format":false,"excerpt":"How many of you have seen foreclosed homes damaged or stripped of wall lighting, appliances, even kitchen cabinets, countertops, and toilets? I\u2019ve even seen homes stripped of their copper wiring (I mean, really?!)\u00a0 Indeed, we\u2019ve probably all at least heard stories of homes being damaged as the occupants depart after\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":16191,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/16191\/life-after-foreclosure-cultivate-indifference-and-press-on-regardless\/","url_meta":{"origin":13382,"position":5},"title":"Life after foreclosure: Cultivate indifference and press on regardless.","author":"Greg Swann","date":"September 13, 2012","format":false,"excerpt":"We just lost our house to foreclosure. Negotiations with the bank fell apart and we spent the last seven days bugging out. This was our third Notice of Trustee's Sale. We had managed to redeem the note twice before, and we thought for sure we could thread the needle a\u2026","rel":"","context":"In "Egoism in Action"","block_context":{"text":"Egoism in Action","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/egoism-in-action\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/13382","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=13382"}],"version-history":[{"count":1,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/13382\/revisions"}],"predecessor-version":[{"id":13383,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/13382\/revisions\/13383"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=13382"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=13382"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=13382"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}