Text in the article below is designed to be incomprehensible. Read it anyway. The intent is disinformation hidden behind nonsense. The great fear of Too Big To Fail Banksters is that they will Fail. Particularly if enough people come to understand what is being done by Banksters to sacrifice homeowners − for openers − and continue indenturing the rest of us. Their weapon − their means for virtual enslavement − unsustainable debt. We call it Killer Debt. As long as we remain in thrall − in belief — of their systemic debt process to keep us enslaved, they will rule us. What is the way out? Become educated. Then take informed action. We’ve got your back.
As you read the article bear in mind one thought. The only means to begin to right our economy, regain equilibrium, rebuild the middle class, is for massive principal reductions on all mortgages. Impossible? Not so when you consider 90% of all loans issued between 1998 and 2008, are fraudulently securitized, fraudulently conveyed, and, moreover, the Promissory Note was separated from the Deed-of-Trust, rendering both those documents Null and Void from the moment you signed them. In other words no party has the legal right to foreclose on you. In one sense it is about “Show Us The Note,” but, the issue goes deeper and their “new” process is in violation of property law that stood for several hundred years, and is well recognized legal precedent embedded in most state laws.
In order to inform homeowners of breaking news related to foreclosure issues, we often carry article from DSNews. Once again Carrie Bay tells the story. Read her entire article below, or at her web: “Study: Less Than 3% of Mortgage Mods Involve Principal Reductions.” The link is live. To the article.
“The ratings agency DBRS made mortgage principal reductions the focus of a research note released Monday.”
“The firm’s analysts stressed that as a modification technique, debt forgiveness has long been regarded as controversial in the mortgage industry due to its moral hazard risk and the potential impact it could have on the performance of securitized mortgages.”
“As a result, this particular form of modification has been utilized on a very limited basis so far by mortgage servicers, even with the government pushing servicers to employ it as part of the Home Affordable Modification Program (HAMP), DBRS says.”
“The agency analyzed mortgage modification data from the first quarter of this year provided by the Office of the Comptroller of the Currency and the Office of Thrift Supervision.”
“DBRS found that capitalization and rate reduction modifications made up the majority of loan restructurings, while principal reduction modifications accounted for just 2.80 percent of the total mods performed during the January-to-March period.”
“That figure is up from 1.90 percent of principal-reducing mods over the same timeframe last year, but down sharply from the 5.70 percent reported in the third quarter of 2010.”
“DBRS says investor reactions to the use of debt forgiveness as a loss mitigation tool continues to be mixed among senior and subordinate bondholders.”
“The agency explained that in a traditional debt reduction scenario, the principal forgiven will be treated as security losses and be absorbed first by subordinate holders, many of whom bought securities based on their “interest-only” values and will see these bonds deplete faster than initially anticipated.”
“Senior investors, while losing some immediate credit enhancement, may benefit from such modifications as overall cumulative losses should lessen in the long run, according to DBRS.”
“Even within the senior bondholders’ class, super senior and senior mezzanine investors may disagree on debt forgiveness.”
“Although both are senior bonds, certain senior mezzanine tranches may likely benefit more when principal is forgiven, DBRS said, which would occur if the subordinate write-downs cause the “cross over” from sequential to pro-rata pay among all senior bonds to occur sooner, allowing the senior mezzanine bonds to start receiving principals earlier than expected.”
“But if done properly, DBRS believes that transactions should, in the long run, benefit from principal forgiveness.”
“Although securities average lives may be extended, some borrowers could prepay and cumulative losses could be reduced if the housing market recovers in the next few years,” the agency said.” [Emphasis Added.]
Ken here. Not likely. In fact no possible way can the market “recover in the next few years.” This is pure nonsense, designed to lull you to sleep, to believe their way is the best and only way. Also, it’s designed to give you false hope so that you’ll stay asleep, unaware of their real control over all of us.
“DBRS points to the recent loan mod program launched by Ocwen Financial as a prime example. Ocwen’s program, known as the Shared Appreciation Modification (SAM) program, reduces a delinquent borrower’s principal to 95 percent of the home’s current value, with the caveat that they will share 25 percent of the home’s appreciation with the investor if it increases in value by the time they sell or refinance it.”
“The portion of the debt that is written down does not occur all up-front, but is forgiven over the following three years in three, equal increments, provided the borrower remains current the modified mortgage payments.”
Ken here. So they will take the principal down over three years. Meaning that the loan is still under extreme duress to re-default. Worse in all of this, if they give you a Mod, virtually a new loan, there will be a clause in there indemnifying them from all fraudulent factors in the original paperwork. Don’t be a fool and give up your right to bring them to justice. Fools are often foolish because they bluster on, and don’t take the time to educate themselves. The info on the blog is free, the accompanying book is 20 bucks or less. Educate yourself, and we’ll offer you “tools” to turn the tables on the Banksters.Print This Post