A time capsule of the greatest financial mania in the history of mankind, told in real-time by regular folks and patriots. May future generations better understand the madness of crowds, and how power and money corrupt.
bring on the lawyers,
I doubt that lawsuits will spell the end of the REIC as we know it. There may well be a ton of them as the mentdown picks up, but ultimately, as long as the NAR continues to buy off our legislators with their blood money, the status quo will remain. There will be perfunctory hearings with all of the softball questioning that goes with them, but our lawmakers are too too addicted to that real estate lobbying teat.
The problem is that the borrowers were in on the liar loans and were in on the biggest real estate investment scheme in history. I'm sure that some borrowers were victims, but what about entire neighborhoods that had their taxes raised based on fraudulent appraisal comps? What about a lending system that simply broke down ,rendering it a false RE market in which many people made investment choices based on a reliance on that system being of sound trustworthy mind. What about the MBS bagholders that relied on "risk ratings" and lenders doing their duty to prevent fraud .If the MBS bagholders wanted fraudulent loan packages they would not of even required loan applications or appraisals . While a legal remedy is the usual course when you have been done wrong in a business transaction,the court system could not take on all the cases that constitute fraud or bad faith business dealing during this housing boom . The United States of America should issue a class action suit against the REIC,Wallstreet ,and the Lenders/Realtors/Appraisers/and borrowers that submitted liar loans .Fraud involving a contract can render a contract voidable. Lets void out the whole housing boom .... Can't be done because it's to big .The legal system seeks to make the victim whole again ,but how can it be done when it was this big ? When the stock market crashed in 1929 and the whole Nation took a dump, everybody became a victim of the Depression ,even if they never invested in stocks .Allowance of margin buying of stock was a big part of the cause of that crash, along with the bubble that it created.They made alot of new laws after the 1929 crash but it didn't save the people of America from the pain and suffering that ensued for years .Time is of the essence when someone is about to lose their house so the legal remedy is a little slow for both borrower or lender ,especially when there are thousands of cases .I predict that there are going to be some pretty nasty lawsuits coming down the pike ,but it doesn't change the fact that a major real estate market correction will bring alot of pain to the people ,even if you never invested in real estate .
This morning on my way to work (just like all the other suckers who were too young to get on the RE bandwagon in 2000), I heard on the radio a PR piece for mortgage brokers.It was touting the virtues of subprime loans, and the great service that mortgage brokers gave to poor families, who otherwise could never afford a home, by putting them into these loans. It talked about the millions of subprime loans that were being paid ontime [so far] and how they helped so many people achieve the "America Dream."The ad took pains to explain how the deceisions to lend were carefully evaluated on a case-by case basis.After cleaning the vomit off my suit, I recalled this great itulip article (link below) that explains how mortgages are NOT evaluated on a case-by-case basis.When mortgage brokers start to air spin pieces to protect their profession's reputation, it is a sign that things are indeed ab going to end badly.http://tinyurl.com/2zkpn4
I hear that Johnny boy is now suing God for discrimination because he didn't get into heaven.
My god. Florida bumpkins buy THREE HOUSES with 750k in loans and it's the builder's fault when they lose their shirts instead of carpenter hubby being able to put up a picket fence and flip the joints for 100k profit. Gosh, when I lost $2k online gambling on the NFL playoffs this year I guess it wasn't my fault after all for my shitty picks! it was sportsbet.com's fault! I feel so much better now. I'm gonna sue the crap out of them.
Courts don't like bad faith in business dealings ,especially when your talking about a major purchase like real estate .The speculators that are trying to get out of the pre-construction builder contracts could not get a loan now based on the original price of the contract ,so in alot of cases they can't perform . The speculator should pay a penalty for the loss of the builder because they committed fraud to begin with on the loan application . Fraud contract are voidable . The question becomes why did the builder sell to a speculator who was lying about intent to occupy ?Because the builder was willing to have buyers that engaged in fraudulent loan applications for their projects, just to sell out the tracts .it was a big investment scheme.Is that good faith to destroy area values by selling to speculators/unqualified buyers ? Realtors were doing worst things than just selling inflated real estate during the boom. Realtors were double escrowing property they listed at a conflict of interest that raised prices as well as engaging in cash-back schemes that raised listing prices . Some realtors knowingly send unqualified buyers to lenders that would process liar loans as well as hit the numbers on appraisals .How about all the illegal kickbacks that were going on between mortgage brokers and realtors that were a conflict of interest . I could go on and on with all the violations that became widespread in the industry .Some people could make a case for a conspiracy between the lenders and the realtors to inflate real estate and push unqualified buyers and speculators into housing for personal gain .Realtors and lenders are not suppose to make a market ,they are suppose to just service that market. This is outright BS about the REIC making it possible for borrowers to get housing that normally they could not afford . Had the industry not turn fraudulent the market would of contracted in 2002 and home prices would just not of gone up as fast and builders would not of build so much trying to get in on the housing boom by selling to every speculator this side of the rockies .Yes , the lenders and realtors are quilty of breach of duty and interference with the market with promoted myths and cheerleading that went beyond PR . THis was panic buying that was promoted . This was buy now in spite of not being able to afford the loan because we will get you a better loan down the pike,(false promise ) This is all about false promises that money will be available from sub-prime lenders and real estate always goes up .This is all about a false PR campaign from the industry .This is all about borrowers being to stupid and greedy or scared to see it and all to willing to commit fraud on loan packages .
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