The Dark Side Of Foreclosure and Economic Stress

23 October, 2008

You'll see the stories, scattered about here or there. Unless you are reading local newspapers from communities all around the U.S., you won't know the true scope of the dark, personal side of financial distress or the disastrous toll it is taking on the American people. From job losses to foreclosures, the pressures are mounting in this country. Americans are using pathways to escape this burgeoning crisis that are both horrendous and heartbreaking. Homicide, infanticide, matricide, patricide and arson--all of these ugly words are part of what has, so far, been a silent scream. It is just now beginning to be heard across this nation.

This article by Nick Turse, paints a stark picture of what could very well explode into a national crisis and soon. What is being done about it? Well, nothing. And sadly that is probably what we can continue to expect from not only the current Congress and the Bush Administration, but the next batch of crooks as well, no matter who is Selected. Elections are not held for change, they are held to make sure everything remains the same, since both horses are almost always backed by the same people.

I haven't seen too many Wall Street bankers throwing themselves out of high rises lately. What I have seen is compensation in the form of pay and bonuses to the tune of seventy billion dollars, ten percent of The Bailout money recently awarded through unconstitutional legislation by Congress, being lavished upon the very crooks who got us into this economic disaster in the first place. Funny that I had to resort to reading the Guardian UK in order to learn this information.

While cable tv pundits sit on their leather chairs in newsrooms, some of them trying to convince us that the worst is over, this is the reality of what is happening on what has been dubbed "Main Street" (meaning "you commoners"). I doubt anyone will show this report on your cable or satellite news channels. No, these horrors are only being reported on in the local areas in which they occur, this enables the true width and breadth of the toll being taken to be swept under the rug for at least a little while longer. I call this fractional reserve news.

Neither CNN nor their counterparts will show you, as the above film does, the spectre of green water in swimming pools infested with mosquito larvae in the backyards of foreclosed homes located in what were recently affluent neighborhoods. They won't tell you that the only booming new business in California is one which involves the exploitation of the abject misery of people who have lost their homes, who in their pathetic state of mind don't have the wherewithal to salvage even their personal belongings. Well, it's work and somebody has to do it, right? As compassionate as the owner and his employees in the video appear to be, they are still willing to do this type of work and make money from it. Perhaps if people stopped participating in acts such as these and enabling the banks, then there would be some changes in this country. I do not expect to see this happen as there is always someone willing to do their dirty work for them for a buck. This is what our entire system is predicated upon, unwitting people doing bad things at the expense of others less fortunate than themselves, at the same time enabling the elite to become richer and they walk away stupidly happy with a few crumbs for having sacrificed their very souls. Do not get me started on the amount of waste this is putting into the California landfills and the amount of destruction of perfectly intact goods which many needy people could make use of. Again, it's the bank's fault because they are on a deadline and there's no time to do this disgusting job properly. What's the rush? It's not like anyone is going to buy these houses unless they practically give them away. There are no buyers lining up for these overbuilt areas. The amount of wealth destruction in the video is mind boggling when you think of how many homes are being "trashed out" in this manner with no end in sight.

This really makes me wonder why the banks wouldn't or couldn't manage a way to keep at least some of these people in their homes. It costs a good deal more to foreclose on a house than it does to work out an arrangement with the current occupants, even if this means lowering the monthly payment, or even lowering the amount of money owed on the mortgage itself. But I guess this is just showing us that the bankers are smart enough to cut off their noses to spite their greed stricken faces.

The reason we are having such a hard time understanding all of the financial ins and outs of what is going on with all these foreclosures is simply because it defies logic and common sense. For example, let's say you own a house free and clear, no liens or mortgages outstanding. You decide you want to sell the home, but do not want all the money in your pocket at once--say for tax reasons. You can be the bank on this sale and owner finance this house for anyone who wants to buy it. The buyer will most likely pay you a monthly payment with interest, this debt is secured with a mortgage and promissory note, exactly the same as if they had gotten their financing from a bank. Would it not make sense, if you see this buyer falling behind on the payments, to approach him or her to try and renegotiate a deal you could both live with? Kicking them out of the home means you will incur a host of of extra expenses. In a soggy market like today's, where are you going to find another buyer, much less one who is willing to pay today what this now delinquent debtor was willing to pay originally when the market was hot? The house will most likely end up empty for months, possibly vandalized and you won't have a cent coming in for no telling how long. There will be foreclosure proceedings, repairs and cleaning bills, insurance and taxes, attorney's fees, realtor's fees, yard and pool upkeep, etc. You may have to pay someone to move all the former occupant's belonging out of the house as shown in the video above. This list is long and expensive. Dealing with this kind of unexpected debt will break the financial back of just about anyone dealing with a foreclosure in this type of market. Even banks won't be able to absorb all these expenses with so many houses on the chopping block, there are simply too many of them. If the mortgage is "upside down" or "under water" it would still be cheaper to renegotiate the contract between the borrower and the lender than to take the hard route of foreclosure, for everyone involved. But, for some reason, this type of thinking doesn't seem to enter the minds of the banksters. Pardon me, but when did two and two stop equalling four? I must have missed that somewhere along the line. What in the hell is wrong with these people? Have they lost any modicum of sense, even that of a damned goose?

What I have outlined above isn't a matter of compassion, though a little of that wouldn't hurt either, it's a matter of simple math and being familiar with the real estate market in any given location.

Or are we confused because we are simply watching the largest planned transferrence of wealth in the history of the world? It appears that with all the money moving from the Treasury and the Federal Reserve into the bankers' coffers, as well as the transfer of all this real estate to them through foreclosure, they will end up with both, the money and the property. As it stands right now, the banksters do not even have to repay what Congress, the Bush Administration and the Federal Reserve give them, unless they turn a profit in the future.

Perhaps the reason the government is rushing to assist the bankers and become partners with them has something to do with court rulings as far back as 2007 which have denied the completion of some foreclosure proceedings. This is one of the most remarkable pieces of information I have run across thus far regarding my questions about why the U.S. government has been so willing to climb into bed and publicly fornicate with the banksters and ignore an outraged public in such a blatant manner. It all goes back to those oh-so-complicated mortgaged backed securities. According to the information quoted below, which mainstream media refuses to touch with a ten foot pole, basically says that even the banks don't know who owns these mortgages, thus some judges will not allow the foreclosures to take place. This is a huge win for the people being foreclosed upon in these cases and it is no more than right. No one can be allowed to collect money or property from anyone if they cannot prove it is owed to them and this is exactly what has happened to these banks. Is it possible that the mad rush to buy up all this "bad paper" is as simple as what is stated below in Judge Byoko's ruling on the matter? I believe it is. If I am correct, then the U.S. government (and now other governments around the world) and the banksters are colluding to make damned sure there is no doubt about just who owns all these mortgages. If the U.S. government and other governments buy them all, then the foreclosures can proceed because then there will no longer be any doubt about who owns the note.

Like so many other issues in this day and age, sometimes all we can do is shake our heads and feel sorry, all the while hoping we're not the next victims of a powerful system which is not comprised of thinking people, but of hardheaded bureaucrats. We can only hope there are many more out there like these courageous judges who have refused to allow these wrongs to go unrighted.

God Bless America

More articles by Dictator Hater:

More Government Lies Over Banker Bailout

New World Government Poses Nude

Lines in Sand