Before the “new” economy struck, losing a home to foreclosure signaled the homeowner’s financial irresponsibility.
Even today, many see a homeowner facing foreclosure as a deadbeat. In spite of numerous reports on predatory lending, illegal and deceptive practices of mortgage lenders, the public by and large still believes that “good” people don’t lose their families’ homes.
- Surprise#1: good, financially responsible people affected by the “new” economic reality are losing their homes to foreclosure
- Surprise#2: the protections set in place by President Obama to preserve family homes are frequently ignored by mortgage lenders
- Surprise#3: many mortgage lenders fearlessly break the law
- Surprise#4: many mortgage lenders use foreclosure to illegally increase their profits
- Surprise#5: powerful mortgage lenders are not being – and can’t be!!! – prosecuted for their wrong-doing
- Surprise#6: even though 10,000,000 homeowners have lost their homes to foreclosure, not one predatory lender is in prison
Today’s foreclosure is not the same as the foreclosure from yesteryear. Unlike in the past, RESPONSIBLE homeowners affected by the disaster of the “new” economy are powerless in the fight against their mortgage lenders.
Today’s mortgage lenders are not at all abashed to falsify facts, timelines and amounts. They don’t follow the foreclosure law. They avoid contact with mortgage borrowers. They don’t bother reviewing mortgage modification applications. Most incredible of all: many major mortgage lenders – including nationwide banks!!! – pay their employees bonuses for forcing homeowners into foreclosure!!!
It may be hard to comprehend – or believe! – that a fully documented fraud committed by a mortgage lender isn’t prosecuted by the authorities. Unfortunately, that’s how foreclosure plays out today. Had any individual or a small business conducted business the way major mortgage lenders do, such a person or business could be reported to the police department and would be prosecuted by a district attorney in the interest of public safety. When a major mortgage lender files fraudulent (UNLAWFUL!) foreclosure against a homeowner, the homeowner has no legal recourse. (The cost of a required “bond” to file a lawsuit against a predatory lender is way beyond the means of the average, struggling homeowner.) A predatory lender can’t be reported to the police; no district attorney can be bothered to look at such a case. As an individual, I obviously don’t understand the logic. A person who commits fraud doesn’t pose nowhere near as much of a threat to the public as a predatory mortgage lender who holds millions of mortgages. One would think that prosecuting an institution for committing mass-fraud should be a priority. It isn’t. It seems that corporate fraud is legal and perpetrators who have the power to create their own “business opportunities” using foreclosure are above the law.