“We will stop foreclosure sales until our assessment has been satisfactorily completed. Our ongoing assessment shows the basis for foreclosure decisions are accurate. We continue to serve the interests of our customers, investors and communities. Providing solutions for distressed homeowners remains our primary focus.”
Bank of America said Friday it is halting all foreclosure sales and foreclosure proceedings nationwide while it reviews the documents being used to justify homeowner evictions.
It is the first bank to put a moratorium on foreclosures in all 50 states. Previously, Bank of America, JPMorgan Chase and others were only pausing foreclosures in states where a court has to participate in foreclosure proceedings.
“Bank of America has extended our review of foreclosure documents to all fifty states,” the bank said in a statement. “We will stop foreclosure sales until our assessment has been satisfactorily completed. Our ongoing assessment shows the basis for foreclosure decisions are accurate. We continue to serve the interests of our customers, investors and communities. Providing solutions for distressed homeowners remains our primary focus.” [EOA]
The foreclosure in 95% of the cases are legitimate and inevitable. The technical legal problem here is the person signing off was rubber stamping the work done by his/her subordinate. Each case had to be reviewed by the signer. This obviously is an industrywide practice and understandable given the caseload. The banks lose out while the homeowners will be getting more free-rent time in the house. This will only prolong the duration of the housing slump in the US which is actually how the banks will be hurt the most.
This fraud is so rigged that before American politicians were screaming about the fraud, because their voters were screaming very loud about it, mortgage foreclosures permitted this massive fraud – court approved foreclosure on houses that never had a mortgage, bought in pure cash, owned outright. Total theft, fraud, robbery.
Expect a total loss to the American banking sector of 600 trillion dollars. Think about that. 60% of the way to ONE QUADRILLION DOLLARS. WIPED OUT. TO ZERO. It will happen just about overnight and before it does the media will talk everything up like sunshine and rainbows are about to grow from everyone’s crops and through every office window. Then it’s all gone.
The whole issue revolves about a court case where JP Morgan Chase lost their financial asses big time. Homeowners Sued JPMorgan on the grounds they didn’t have authority to foreclose because they didn’t hold the “note”. It was found out they didn’t and that Fanny Mae did. So the judge threw JP Morgan out of court and order the house returned to the owners until such time that Fanny Mae foreclosed. This is the issue – all these big banks are most likely just “servicers” of the mortgages and not the mortgage note holders – only the note holder can foreclose. So their foreclosure scam is coming to a big HALT!
You can read more about the above article at the Washington Post.
Deflation: The Trend That’s Become Too Obvious To Ignore
As the biggest credit bubble in history continues to shrink, consumer prices have stayed flat over the past several months, meaning there is no sign of inflation to come, despite growing commitments from the U.S. government.
So what’s keeping inflation at bay, given all the stimulus money promised? The answer: Deflation — an overwhelming urge for consumers to liquidate their assets for cash. And this new economic phase is finally becoming too obvious to ignore, as explained in recent commentary from the world’s largest technical analysis firm.
“The economy is moving into a critical new phase, an outright deflation in which ‘prices fall because people expect falling prices.’ Obviously, this implies an element of recognition, as efforts to protect against indebtedness and falling prices contribute to further declines. We can tell deflation is entering a new stage because of the language and ideas that financial observers now use to describe it.”
— The Elliott Wave Financial Forecast (September 2010)
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Here are a few recent comments about the new economic reality:
- “[New Jersey Governor] Christie spelled out the details of his proposal Tuesday. They include: repealing an increase in benefits approved years ago; eliminating automatic cost-of-living adjustments; raising the retirement age to 65 from 60 in many cases; reducing pension payouts for many future retirees; and requiring some employees to contribute more to their pensions.” — Associated Press (Sept. 15)
- “U.S. Home Prices Face Three-Year Drop as Inventory Surge Looms” — Bloomberg (Sept. 15)
- “Atlanta Awash in Empty Offices Struggles to Recover From Building Binge” — Bloomberg (Sept. 14)
- “The world economy faces a long, hard slog toward recovery and could slide into deflation and financial instability if leaders fail to deliver on promises of reform.” — Reuters (Sept. 10)
- “Deflation seems to have the upper hand lately in the debate among investors about inflation versus deflation.” — Marketwatch (Sept. 8)
- “With the release of the August sales figures, one thing is clear for car shoppers — it’s a buyer’s market.” — Edmunds (Sept. 2)
- “20 Funds to Guard Against Deflation” — Smartmoney (Aug. 29)
- “Dividend-Yield Signal Screams Deflation” — Forbes (Aug. 25)