the biggest issue not seen or understood by most home owners, judges, and lawyers, is the concept that Pooling and Servicing Agreements played in this whole mess. You see, loans (notes) are negotiable instruments. These were pooled into Trusts and sold to the REMIC. They then became converted into Mortgage Backed Securities (MBS). At the time of the sale, the banking instrument, regulated by the Banking Commission became a stock, and now regulated by the Securities and Exchange Commission. Once it changed form, it did so irrevocably. That means the bank switched roles from lender to Servicer and no longer owns the NOTE. Therefore, they can't foreclose. Furthermore, they got PAID IN FULL at the time of conversion. So by foreclosing they are getting paid 3 times. Firstly, if FHA loan, they get the deficiency value between sale and loan paid 100%. If conventional loan, they get paid 80% by the FDIC. They are getting paid for something the ALREADY got paid for in the first place at the time they sold the loan and pooled to become a stock. So they have no incentive not to foreclose. They could to recover the value of the asset, in whatever price it will fetch, they get to recover the difference, via FDIC or FHA/HUD. They also get to have been paid for it in full at the time of converting the notes into MBS. And to add insult to injury, they got T.A.R.P money and bank executives paid themselves millions of dollars. Does this seem fair to you? So let them eat the loss, not the homeowner. They created the mess, no prosecutions took place, of Sorbanes Oxley Act, and they get to get bailed out.
Alexof NJ9:39PM December 16, 2011
J. P. Morgan Chase, aka Plymouth Park Tax Services,aka Xspand, and our corrupt public officials have ruined Cuyahoga County, Ohio. Tens of thousands of victims and hundreds of homes - some owned mortgage free for decades- were lost.
J. P Morgan has admitted rigging the tax lien process in over 30 states - including Ohio- and has agreed to pay a $211 Million dollar settlement.
Cuyahoga County is under a massive federal invesigation which publicly began in 2008. The continuing invesigation has resulted in numerous public corruption convictions and pending RICO charges.
It takes two to Tango. Which Cuyahoga County official was Tangoing with Plymouth Park Tax Services?
The No Bid lucrative contract for several years leads me to believe that the admitted rigged delinquent property tax lien process also involves public corruption crimes.
Read my blogs with more information on this admitted crime:
I have never missed nor been late on any payment on my mortgage of over 15 years. My house in under water to the tune of $100,000.00 give or take. We presently have the house on the market for sale and have had no serious lookers for 90 days. The problem is, the consumer can buy a house just like mine for $150,000.00 even though I am willing to sell my house for $179,000.00 and lose a hundred thousand on the deal. Not good business sense to me so I am looking at walking away as an investment decision. No different that walking away from a losing stock except you credit will suffer. That is not all that important to us because we have everything we need already paid for and do not need credit like those just starting out in life. The idea of owning a home and keeping a home up has lost all of it's appeal to me. I will lot live long enough to see the value of my home in an equity position again and I am not really that old (64) but this down-turn will last another 15 to 20 years in my opinion.
Michaelof GA12:00PM July 14, 2011
Hey Sheri. My situation mirrors yours almost exactly. It looks like you posted a while ago. What have been your results? Thanks.
Ryan
Ryanof AZ12:05AM May 29, 2011
My situation is tolerable except that I hate Michigan and I hate the new Michigan Governor. I bought my house for $55k in 1992 and now it is worth $30k and I am in a declining neighborhood, retired, I want to move to South America. I own about $29k after a refinancing for a car in 2003. Can I find a buyer. I will give it a few more months before I make my decision In August. I only have 4 more years of payments ($720) but in 4 years years what will my house be worth then $10k, I can see that lol. In four years, I can save at least $20k by living in Ecuador, not withstanding the difference in payments. In taxes, state and real, ( $10k on the low end), home insurance and car insurance ($6000 on the low end), utility payments $4000 on the low end). I can rent a nice two bedroom furnished condo for $500 with utilities included down there. I am single and since I retired, I don't want to own. I want mobility. Big decision coming my way, I would want to be outta Michigan by next April at the latest with my Ecuador residency papers in hand. Therefore; my decision is based on least cost of freedom of movement without throwing anymore money into the losing real estate market of the USA.
Andreof MI3:38PM May 25, 2011
I just looked into the FHA short refinance program thats supposed to help curb this "problem". WHAT A JOKE! BOA is still evaluating this program but does not offer it as of this time. That is the awnser I got (after 3 transfers, 1 to India and a dropped call). I owe 10 to 15,000 over what my house is worth. My business was failing in 06 so I refinanced my house at a high arm in order to pay depts. At that time my home was worth almost twice what the refinance was for. I thought I was being responsible. Than housing tanked and I can't refi without equity and 650 credit score. I don't want a principle reduction just a lower fixed interest. I don't mind paying for the money I barrowed, but if the banks want to keep raking me accross the coals just because I can "afford" to make my payments SCREW THEM. My credit already isn't very good and I have been scaping by for the last 4 years because I was responsible and didn't file for bankruptcy when my business failed, I payed my depts with what I thought was a good idea at the time. I'm used to driving my payed off cars and having no cridit cards and paying for everything with the money I have. They can't do much more to me.
Feel guilty? If the bank doesn't want to work with you, you should not feel guilty for anything. This doesn't hurt the banks enough because if it did they would find a way to work with people that want to work out thier issues and be responsible.
Good luck to all and buy a nice car that you will like to drive for 6 years.
Benof AZ4:30PM January 06, 2011
I recently purchased a new home for 240K that was once valued at $550 in 2006. My secondary home was set up as a rental for the time being and is tied to a 10 year interest only loan. Big mistake but my objective at the time of purchase was to stay in the house for 5 years and sell. The market tanked and now I want to get out of a interest only situation. I'm okay that I have no equity and won't for years, all I want is to convert the interst only loan to a 30-year fix. The bank won't let me unless I have at least 20% equity, in which case would require me to pay down my loan amount by close to $90K. Facts 1. I can pay for both houses, 2. I'm okay with the same monthly payments and 3. I don't want to be faced with a ARM after my 10 year fix rate expires, 4. Bank would rather I walk away them simply accomodate me. Results equal another property on the market that the banks could have avoided.
Sheriof AZ10:17PM December 02, 2010
I live in Az and the properties in my area are selling....when they sell at over 80% less than their mortgage value. The house to the west of me sold for $32K with a $170K mortgage, the one to the east for $35 K with a $170K mortgage. We are so far underwater...if we would have put 70% down, we would still be underwater ! The stats that are reported are average stats. The problem is the higher cost homes have dropped 50% but the lower priced homes are selling for almost 50% of the lot price ! The situation is far worse than what is even being reported. You cannot analyze the entire housing market as one you have to look at the homes under 200K and those over. Some of the people with the higher priced homes made larger incomes and can hang on longer, demand more for their homes....the lower income people are getting crushed!
Troy Koonof AZ4:35PM October 10, 2010
I don't see why we should feel guilty for walking away. My husband and I bought our house in 2005. He has since walked away from the marriage. I have no income on my own and am still financially dependent on him until I can move and get a decent job. Job pickings in a small town are extremely slim. Any way, the money coming in is not enough to pay mortgage, bills and still eat. I have tried to refinance for lower payments, I have attempted loan modification. We lost over $40,000 in equity but our loan balance is over $10,000 more than the appraised value of the house. I have tried 4 different real estate companies in order to try and sell, but they won't take it because of the negative equity. I tried sell by owner, only 1 hit, but the bank wouldn't give her a loan high enough to cover the selling price.(I only listed it at loan value). Mortgage payment is way too high to be able to rent in this area. Ok...I've run out of options, the only way I can move on and get on with my life and raise my son is to walk away from this house.
The point is, the banks are trying to get blood from a rock and they are unwilling to help lower payments, therefore they are going to end up with a lot of empty houses. If they are unwilling to cut us a break...then I'm not going to feel guilty for walking away.
P.S. H.of NC3:50AM September 30, 2010
I live in Cleveland, Ohio, Cuyahoga County.
I have done extensive research on a company called Plymouth Park Tax Services. This company is under federal investigation for collusion and anti-trust violations.
This company has exclusive - and no bid contracts- awarded by our county treasurer, Jim Rokakis, since 2000. The company purchases delinquent property tax liens and then charges the homeowners 18% interest, excessive costs, and attorney fees. I am working on one case in which the family has owned their house - now mortgage free- for nearly 50 years. They have recently lost their home to this company. Literally thousands of people are victims to this suspect company.
What is most interesting is that once the company forecloses on the homes for failure to pay delinquent property taxes, the company itself fails to pay property taxes. I estimate that at least half of the homes obtained by this suspect company are delinquent in taxes.
See my blogs here http://realneo.us/content/more-victims-tax-delinquent-foreclosures-plymouth-park-tax-services-courtesy-jim-rokakis
and here http://realneo.us/content/victims-cuyahoga-county-corruption-and-greedy-politicians
Reader Comments
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Alex of NJ 9:39PM December 16, 2011
Lily Miller of OH 7:15AM September 14, 2011
Michael of GA 12:00PM July 14, 2011
Ryan of AZ 12:05AM May 29, 2011
Andre of MI 3:38PM May 25, 2011
Ben of AZ 4:30PM January 06, 2011
Sheri of AZ 10:17PM December 02, 2010
Troy Koon of AZ 4:35PM October 10, 2010
P.S. H. of NC 3:50AM September 30, 2010
Lily Miller of OH 7:27PM September 15, 2010