Holy Diver

Obama won't sign foreclosure challenge bill - Business - Real estate - msnbc.com
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WASHINGTON — President Barack Obama will not sign legislation that could have made it more difficult for homeowners to challenge unjustified foreclosure actions, the White House said on Thursday.
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My MAN!

The Brandon Five

I am not up on this story. What is an "unjustified" foreclosure action?

Holy Diver

If the Bank is not up on their paperwork (which half are NOT) then the bank needs to prove the notary of the loan. This bill would allow a bank to get a retroactive notary from places that are out of state to use in court.

Little-Noticed Bill Could Make It Harder To Challenge Foreclosures

The legislation would come just as a foreclosure validity crisis is mounting: GMAC, JPMorgan Chase and Bank of America have admitted to not properly reviewing some of their foreclosure documents.


FYI

Robert Aderholt http://aderholt.house.gov/ was the sponsor of the bill and has been pushing it since April 2005. The bill is also sponsored by Rep. Bruce Braley (D-Iowa), Rep. Mke Castle (R-Del.) and Rep. Arthur Davis (D-Ala.).

Statement from Aderholt:

“There is absolutely no connection whatsoever between the Interstate Recognition of Notarizations Act of 2010 and the recent foreclosure documentation problems. I first introduced this legislation in April of 2005, and obviously there was no concern about weakening the foreclosure documentation process at that time. This is a bill that would help people and I am disappointed that it was vetoed.”

The Brandon Five

So are these loans where the borrowers are actually current, but the bank is trying take the house away through legal trickery?

What does it mean that the bank is "not up on their paperwork"? If they can't prove the notary of the loan does that mean there is no contract between the mortagee and the bank? Wouldn't the house then just go to the bank? They hold the deed while there is a mortgage.

IcyPatriot

The problem here is that some people are holding loans from say failed institutions. Going back to the 80's is a great place to explain it. back then there was a huge surge in mortgage companies. basically they made a fee doing all the paperwork for a mortgage. The people that funneled the money would then package them in loan baskets and sell them off.

this selling could continue over and over and the proper chain of title may not have properly taken place. One way to invalidate a foreclosure is to invalidate the validity of the forecloser ... do they legally own the title to your property.

This bill was trying to bypass homeowners using that tactic to stop a foreclosure.

legally these people have a right to use that tactic ... this will get more interesting.
By signing the bill Obama will be taking a legal right away from everyday Americans.

What I find interesting is there is supposed to be separation between the courts and our government. Like what if a case like this went all the way up to the Supreme Court. This bill perhaps also tries to stem that from happening ... will have to study it more.

DarrylS

How are you going to notarize a mortgage that has been bundled up and sold multiple times? Who you may have signed your mortgage with doesn't even own it anymore. You have no idea who owns it, so how can you even do anything to protect yourself if it illegally increased by fraud?

This bill was a CYA for the banks' mortgage fraud, and the more we learn about it, the more obvious that will be, I guarantee it.

It was a bad bill which would circumvent the judicial relief that homeowners are seeking now. I just believe that Congress is so out-of-touch that they are not realizing the difficulties those of us in the court system are facing with mass foreclosures, copied documents not originals and paper that has been passed around from bank to bank that some cannot establish actual ownership. Electronic signatures would just add to the chaos.

The wild west atmosphere of the housing boom and mortgage industry in the past 10 years is coming home to roost.

__________________
"Being the best doesn't mean you always win. It just means you win more than anyone else".. tweet from Kurt Warner to Tom Brady.

The Brandon Five

So there are people who are seeing their principal balances change when their loan is sold? I hadn't heard of that.

Could some of these people be confused? If you don't, you know, make payments, the interest gets capitalized, thereby increasing the principal balance.

khayos

The Federal government shouldn't have any role in foreclosures as they're all handled by state courts... shouldn't have any role in home ownership, actually...

Wolfpack

Ah, so in other words this new bill has nothing to do with whether or not the consumer is actually paying their mortgage payments. It's just putting as much paperwork in the way so the aforementioned deadbeats can survive on technicalities. Got'cha!

Boy I tell ya the last week has really shown conclusively what liberals feel about silly things like the notion that people should have to actually pay for things. Liberals believe everything should be a free ride, and you can just stick either the government or nameless, faceless corporations with the bill. What a country!

Wolfpack

Well that's what happens when you decide you want to give full board mortgages to people who don't happen to actually, like, have jobs but you want to increase home ownership among poor people and minorities.

Thank you Bill Clinton and Barney Frank! It's amazing how well the NY Times nailed you guys (no pun intended) in 1999.

Fannie Mae Eases Credit To Aid Mortgage Lending - NYTimes.com

Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.