Predatory lending begets predatory servicing, begets predatory loan modifications, begets predatory foreclosures. You simply cannot have one without the other.
You cannot have millions of predatory loans without having millions of predatory foreclosures because they are all inherently bound together in a tangled web of unfair, deceptive and fraudulent business acts and that is exactly what we are watching unfold right before our very eyes.
We are literally watching criminal cover ups played out on Main Street and Wall Street that are being given such press friendly names as “T.A.R.P.” and the stolen loot is being bought up by our government by the billions and this is now known as “bailouts.”
The case of government sponsored predatory loan modifications.
You cannot fix a predatory loan by placing a band aid on it without having a predatory loan modification. It is akin to placing a band aid on a cancerous tumor that really needs major surgery, extensive in house recovery/rehabilitation and a year of after care.
An approach like the FDIC’s “Loan Mod in a Box” and Hope Now’s weak efforts that does not addresses current real estate market values will never cure these mortgages of their cancerous and toxic tendencies. Loan modification plans thus far only mask these over priced home and terminal loan tumors as they grow and mutate into uglier and nastier mortgage cancers.
That is it in predatory loan modification nut shell.
A mortgage modification based on a fraudulent market, a fraudulent appraisal and thus a 100% fraudulent loan that never should have been made. Any attempt to fix it without fixing it entirely is a “predatory loan modification.”
Please don’t let anyone tell you any different.There is no ifs, ands or buts about it. It is what it is.
Especially these very lenders and Wall Street players that seem to now be suffering from a taste of their own mortgage medicine misdeeds and are writing down billions . These lenders are even getting billions from the US Government via tax payer dollars to cover the losses on these toxic assets that are really your home and mortgage.
Just this weekend Citi Financial was given a $306 billion back stop to cover these toxic asset losses.
Yet, you are left to suffer in your home and loan and are basically on your own. You cannot write your home mortgage down and it appears the government believes consumers are not good enough to deserve these same write downs and bailouts that lenders are receiving left and right.
The plans thus far to come from Hope Now and now the FDIC, entail just fixing your interest rate to an affordable level and tacking on and delinquent fees you may owe to your already underwater home. Yet, Citi, BofA and Chase get to write these same assets down by the billions and get government back stops to sleep good at night.
Isn’t what is good for the goose, good for the gander?
Bottom line America. Toxic assets are really another word for “fraudulent assets” and the end product of some type of predatory misdeed such as predatory lending, predatory servicing and predatory investing. A great portion of these assets most likely involved breaking some type of federal and or state law and a whole lot of fraud with possible a dash government corruption.
A loan modification of an illegal and predatory loan is really just an illegal and predatory loan modification.
Shouldn’t Main Street consumers demand justice with fair and equal treatment when it comes to bailouts and the use of tax payer money? Especially when we are footing the bill?
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