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XMFSinchiruna (27.99)

Ohio Congresswoman Urges Foreclosed Constituents to Stay Put

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January 31, 2009 – Comments (10)

Wow... this could get interesting. It brings up an interesting idea... if the process of converting whole mortgages into bundled securities obscures who the real holders of the debt are -- and I understand they are STILL trying to trace paper trails from the Bear Stearns portfolio --then does the hoeowner really owe anyone? I see two possible outcomes for all this: 1.) people do start to refuse to leave en masse, leading to messy confrontations with local authorities and legal entanglements to last decades, or 2.) the government will give up trying to get value out of its valueless mountain of absorbed securities and issue a mass forgiveness of mortgage debt along the lines of what many are seeking for indebted developing nations. However it plays out, it will be historic.

 

http://rawstory.com/news/2008/Rep_Foreclosed_owners_should_squat_in_0130.html

If you're poor and the bank is coming for your home, Congresswoman Marcy Kaptur has a plan for you.

Just squat, she says.

Yes, this Ohio Democrat is actually encouraging her financially distressed constituents whose homes have been foreclosed upon, to simply stay put.

In a Friday report, CNN's Drew Griffin explored the case of Ohioan Andrea Geiss, whose home was foreclosed upon in April.

"Behind in payments, out of work, a husband sick, she had nowhere to go," said Griffin. "So, she decided to follow the advice of her Congresswoman and go nowhere."

In Lucas County, Ohio, over 4,000 properties were foreclosed upon in 2008, reports CNN.

"So I say to the American people, you be squatters in your own homes," said Congresswoman Kaptur before the House of Representatives. "Don't you leave."

She's called on all of her foreclosed-upon constituents to stay in their homes and refuse to leave without "an attorney and a fight," said CNN.

"If they've had no legal representation of a high quality, I tell them stay in their homes," Kaptur told Griffin.

Kaptur is a high-profile advocate of an increasingly popular mode of fighting foreclosures best known for it's key phrase: "Produce the note."

By telling a bank to "produce the note," a homeowner can delay foreclosure by forcing the lender to prove the suing institution is actually the same which owns the debt.

"During the lending boom, most mortgages were flipped and sold to another lender or servicer or sliced up and sold to investors as securitized packages on Wall Street," explains the Consumer Warning Network. "In the rush to turn these over as fast as possible to make the most money, many of the new lenders did not get the proper paperwork to show they own the note and mortgage. This is the key to the produce the note strategy."

And Friday's segment on this growing foreclosure fighting "movement" was not the network's first. Earlier in January, CNN explored one person's strategy in demanding her bank "produce the note," only to find that the lender had "lost or destroyed" the evidence of debt ownership. Such a revelation can significantly strengthen a homeowner's position when asking to renegotiate a mortgage.

That these banks, many of which received billions of dollars in government bailout funds, continue to boot defaulted owners from their homes, makes them "vultures" says Kaptur.

"They prey on our property assets," she said. "I guess the reason I'm so adamant on this is because I know property law and its power to protect the individual homeowner. And I believe that 99.9 percent of our people have not had good legal representation in this."

10 Comments – Post Your Own

#1) On January 31, 2009 at 7:39 PM, abitare (49.90) wrote:

This bimbo is part of the problem, she is a senior member of Congres of the Budget Committee and Doesn't Know the Difference between Treasury Secretary and Federal Reserve Chairman

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#2) On January 31, 2009 at 7:40 PM, abitare (49.90) wrote:

Peter Schiff has written a similar story here:

Just stop paying your mortgage

By Peter Schiff
October 10, 2008

 

http://www.signonsandiego.com/uniontrib/20081010/news_lz1e10schiff.html

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#3) On January 31, 2009 at 9:37 PM, engstocker (< 20) wrote:

Yeah and the government is already actually encouraging people to not pay their mortgages if they owe less on the home than it is worth. Freddie Mae and Fannie Mac owned mortgages are going to start letting people stay in thier homes if they are X? amount of months behind on thier payments instead of evicting them in foreclosure. Yeah Free Rent, stop paying your mortgage and get a free place to live. Also I hear the government is giving the power to judges to reduce the amount of the mortgage to reflect current market prices, but you have to be behind on your payments to get this done. Great, just stop making your payment and you can get your mortgage reduced. What happened to making a bad choice and having to live with the consequences? When you start taking away the consequences to peoples action, you breed a society that doesn't care how bad thier decisions are. Am I the only one terrified of where our country is headed?

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#4) On January 31, 2009 at 10:50 PM, XMFSinchiruna (27.99) wrote:

engstocker

You are not alone, my friend. :) 

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#5) On February 01, 2009 at 12:28 AM, kaskoosek (92.29) wrote:

engstocker

Very good point.

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#6) On February 01, 2009 at 1:13 AM, angusthermopylae (40.09) wrote:

OTOH, (and this is the libertarian in me talking), I'm actually glad to see this strategy put into play.  Here's why:

The banks and institutions in question are guilty of, at the very least, shoddy practices.  In the race for that last penny of profit, it sounds like they started playing fast and loose with the mortgages, the ownership, and the paperwork.  Since the SEC can't even see a $50 billion ponzi scheme in front of their eyes, no one else is going to hold these banks' feet to the fire for screwing up...

At worst, (and I'm sure it's a minority, but there are probably a few), they are predatory lenders (Ditech, anyone?) who transferred mortgages out the door before the ink was even dry...and, arguably, were a factor in causing this whole mess.

So, while squatting is a bad policy, it could be a good way to force some banks to un-screw themselves...and never let such crappy performance happen again...

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#7) On February 01, 2009 at 4:50 PM, nthought (< 20) wrote:

I'll be squatting if I can't get a job soon.  Hope I can still find an internet connection to keep my Caps score up. 

 

 

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#8) On February 01, 2009 at 9:44 PM, redneckdemon (< 20) wrote:

I'm all in favor of having to deal with the consequences of bad decisions.  If your bank pawned your debt and the people who bought it didn't get the right paper work, let them deal with it.

People who took on debt they couldn't afford are just as guilty as the banks what done it to em, so I say let them duke it out.  May the best leech win.

On the other hand, people who made valid and careful decisions are getting their collective butts kicked in this economy, and the people who didn't seem to be getting all the breaks.  So why NOT do as thy neighbor does?

From a more practical point of view, if I have no job, and no way to creat income, and somebody comes along telling me I have to get out of my house, I'm either staying put or going to squat somewhere else if they manage to throw me out.  Food, water, and shelter: those are the priorities.  Once those are taken care of, I'd worry about doing the right thing. 

Till then: "CYOA"

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#9) On February 05, 2009 at 5:08 AM, falang1 (96.65) wrote:

I like it.  Force the banks to own up to their mess.  The "produce the note" strategy is great.  Oops, can't find it, must have drifted off with the bailout money. 

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#10) On July 06, 2010 at 7:35 AM, GoodUncleDave (< 20) wrote:

Marcy Kaptur may be the bravest man or woman in the country. Openly opposing the FED banks has caused more than one person to suddenly disappear, die in a small plane explosion (Congressman Heinz), or suddenly have a heart attack. The FED banks have an average investment of only six ($6.00) dollars in each home they foreclose on.  They simply write a check and the money is printed out of thin air. If you think this isn't true, then you need to read Modern Money Mechanics (written by the Chairman of the Chicago FED Bank) or similar documents written by those perpetrating this huge fraud on the American people. If you stand idly by while others lose their homes to this fraud, then nobody will stand up for you when they come for your home (and they WILL!).  The FED banks are in the process of turning worthless paper vouchers into real estate. We just gave them 2.6 Trillion dollars but they still foreclose on every home they can.That money would have paid off every mortgage, auto loan, and credit card in America. What more do they want? --- YOUR HOME! ---

Way to go Marcy!  You're one congressperson that I'm 100% sure is getting my vote!!!!!!

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