As home prices fall, more borrowers walk away

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39. CanonRay, the PMI is actually one of many occasions the banksters collect upon the loan.

Prior to that, when the MBS market blew up, the banksters collected their Credit Default Swaps and that insurance was sometimes twice the value of the loans. Nice deal since it wasn’t their money at risk in the first place. It was investors’ money that funded the loans.

Then, the banks collected again on the loans when they sold trillions of dollars of the failed MBS to the U.S. government and Federal Reserve.

The banks use document mills and foreclosure mills to re-create the loans here on Main Street, and steal real property from homeowners who mistakenly believe their loan is in default and that money is due. The banksters do collect the PMI as yet an additional occasion to profit upon the same loan.

Those same document mills are used for Satisfactions of Mortgage when homeowners refinance or have paid the supposed debt. I’d like homeowners to come to understand that the documents in their mortgage loan are just as invalid and fraudulent as the ones used in wrongful foreclosures.

The banksters submit a credit bid at auction and obtain a Sheriff Deed. The banksters can market the home, keep it in the shadow inventory or they sometimes Title it over to Fannie. I suspect but haven’t yet confirmed to my satisfaction that the banksters are compensated by Fannie for the Title. If true, it is yet another opportunity for the banksters to defraud taxpayers.

The banksters can also Title the property over to a “bottom feeder,” a debt collection company that pays about .30 cents on the dollar for the supposed loan. Those companies sometimes “work” with homeowners and offer them better interest rates or reduced principal. The bottom feeders may also Title the home over to a government sponsored entity for close to the full amount of the loan.

I do believe that many Title companies will fail as a result of the mortgage securitization scheme.

Homeowners shouldn’t wonder how much remains due on their mortgages, they should instead wonder how many times the banksters have already collected payment on the mortgage loan.



I’ve researched mortgage/foreclosure fraud for just over 3 years and filed suit against my mortgage servicer. The trial is presently scheduled for May of 2012.