The
City of Richmond California has taken a step that will force the Banks
to prove their loss --- something that most of them can't do. Richmond
has taken final action to seize underwater mortgages whether or not they
are declared to be in default. This action will result, one way or the
other, in the homeowners getting mortgages that have balances equal to
the fair market value proven by the banks, whether or not they are
foreclosing on the property. I first proposed this solution 6 years ago,
and until now, many cities had considered it but only Richmond, CA has
actually done it.
When
litigation commences, the Banks will challenge the right of eminent
domain, on which they will most likely lose, and then the Banks will be
required to prove their loss, something they cannot do because there is
no loss. The resulting disclosure of no losses to those who are
foreclosing and no loss to those who are collecting will be devastating
to the full court press of foreclosures and to the truthfulness of
reports of ownership to government agencies initiated by Wall Street
entities.
This
changes everything since it doesn't carry the taint of "deadbeat"
trying to get out of "legitimate debt". Instead it offers the market
value to the holders of the mortgage. The Banks don't own the mortgages,
used the money of investors (who were the real owners of the loans, if
not the note and mortgage), received multiple payments from insurance
companies and other third parties and have sold, for 100 cents on the
dollar, the loans to the Federal Reserve on the premise that the
mortgage Bonds represents ownership of the loans --- a premise that can
only be true if the loans were properly transferred into the REMIC
trusts.
The
eminent domain action starts with the premise of a valid note and
mortgage. Litigation will expose the defects in both the ownership and
the claimed balance due. The fair market value will mostly be considered
to be the fair market value of the property. The trading markets might
also be used as a reference.
Eminent
Domain in litigation will expose the fatal defects in the loans, notes,
mortgages and foreclosures. It will show that even the "performing"
loans have disputable ownership issues and disputable loan balances
after the Banks received, on behalf of the investors, insurance
payment, guarantee payments and proceeds of sale from the Federal
Reserve.
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