I really have no idea what we ought to be doing about these foreclosures.

[Stinky The Clown]

There is evidence that some are righteous. But there is also evidence that many of them are criminal (morally even if not actually).

Meanwhile, each case stands on its own. 1.2 million Davids against a small handful of resourceful, well staffed, morally bereft Goliaths. A whole new industry could be spawned, working on behalf of the evictees and evicters. Foreclosure resolution parasites will get rich.

My gut goes to a notion that's probably easy to label as socialist or communist, or maybe even Marxist: Take the damned unspent TARP funds and bail out the HOMEWONERS. Sure, some will be getting a free ride. I am not espousing paying money to the criminals who ran the banks. I am saying we nationalize the banks, break them up and cancel the money owed by mortgages.

I have no idea what so ever if this could work. I am as savvy on macroeconomics as Sarah Palin is on Constitutional Law, but I know I want the little guy to get a break and the people and organizations that caused this mess to be punished.

[Liberal Veteran]

1. I personally think a jubilee is order.

Our economy needs an enema.

[Occulus]

3. That would work, too

and probably much, much better than my proposal below.

[Occulus]

2. Three things:

1: Moratorium on all foreclosures being performed by all banks who used robosigning.

2: Figure out which ones were done improperly and require the affected banks to return the properties to the affected homeowners or, if the property has been sold, a cash award equal to the value of the property at the time of the initiation of the foreclosure process, whichever is greater (that's the punitive part).

3: Let the banks who cannot discharge that obligation fail and use the TARP money to bail out the remaining homeowners, alongside an offer of government assistance in extending loans to current homeowners to banks that did not use robosigning, backed by the liquid value of the assets of the remaining banks that did use that process (punitive measure #2; would require a government takeover of those banks).

These ideas are borne of a contempt for banks in general, and those that used robosigning specifically. We have to punish these fuckers, and we have to do so with extreme prejudice.

[dkf]

4. Maybe I should get a mortgage fast so I can get a free place too.

[stray cat]

6. You and I are clearly stupid renters who are saving for a downpayment instead of buying w/o one

[dkf]

7. I've been waiting to buy a one bedroom condo with a washer dryer for less than $300,000

It's ridiculous.

[stray cat]

5. So Donald trump gets a pass on his multimilion dollar homes?

[Trekologer]

8. A simple solution: due process

I don't think that there should be a blanket bailout of banks or homeowners. I say this as someone with a mortgage who's house has lost value and is likely worth much less than what it was bought for. But here is a simple solution: let due process play out.

If a bank wants to collect, they must prove that they are the holder of the note. If the bank cannot prove that they are the holder of the note, the home owner should still pay their mortgage payments into an account to be paid if/when the note holder can be found. If, after the unclaimed property time period expires, the note is ordered void and the homeowner gets the money back.

If a bank wants to foreclose, they must prove that they are the lien-holder on the deed. If they cannot prove this (and the sham of MERS is ruled invalid), then the lien is taken off the deed. This doesn't mean that money to pay back the loan isn't still owed (see above), just that the loan is no longer secured by the property; it would become an unsecured loan, like a credit card.

It may be rough at first, and a bunch of banks will go bust, but the banks set up this system that is falling down around them. They set up MERS to cheat county offices out of paying for document filing fees and dodge the risk of making loans (and the need to
ensure that the person you lend money to is qualified). So be it.

[ms.smiler]

10. Any homeowner in foreclosure should fight that foreclosure

And any homeowner making mortgage payments should hire an attorney and file a Quiet Title action.

Trekologer, that seems to be what you are saying and it's a prudent suggestion.

Oh, and there are no "free houses" for people, there is just financial consequences for banks when they defraud homeowners.

[Trekologer]

12. Exactly

There is a term for the type of account where one would send the payments to the clerk of the country while it is determined who really holds the mortgage but I cannot think of it right now.

[Count Olaf]

9. CEO arrested and corporation held liable!

This sounds appropriate...

CEO arrested and corporation held liable!
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x9304405

[hunter]

11. It's a ponzi scheme that is coming apart.

Protect the little guys (pensions, homeowners, renters) renegotiate bad mortgages by realistically reassessing home values, rent out or sell empty homes quickly, and leave the big guys in prison or out treading cold, cold water with the sharks.