Mortgage Fraud Begets Foreclosure Fraud

You cannot have lemon juice without a lemon. That is common sense, right?

Palm Coast, FL – February 11, 2011 – You cannot have lemon juice without a lemon. That is common sense, right?
OK, now let’s use the same logic when comparing this foreclosure crisis to what went on in the years preceding the  market mayhem we see now. I think we all can agree that a lot of mortgage fraud was perpetrated on a massive scale worldwide. These same said toxic loans were then sliced and diced on Wall Street into mortgage backed securities and then sold to unsuspecting investors from sea to shining sea. Thus perpetuating the fraud via super duper investment vehicles that shipped these cancerous securities into almost every nook and cranny of the world stock markets.
It doesn’t take a blogging rocket scientist to understand that you simply cannot have mortgage fraud, subsequent investment fraud and not have foreclosure fraud to top the scam pie off. They all come as one to the party.
That is what we have now. It is massive and it is everywhere.
Is every foreclosure fraudulent?
No, but I suspect that a large majority are and most all are going unchallenged. In fact, if they were legitimately challenged on a large scale, it could possibly bring down whole nation economies resulting in a domino effect of stock market crashes. The dollar could very well become extinct if such an event occurred.
With that said, what is best for our economy and the world in general?
When a “wise” person looks at the whole fraudulent market enchilada and takes an unemotional look at what is best for us all, you realize that this “fraud” needs to work itself naturally out of the system. Just the way it has been over the last three painful years. Most everyone has their hands dirty by somehow participating in the market. Even if they were naive buyers of these toxic credit instruments and loans.
Their ignorance was often fueled by greed thus blinding them to the fraud and now changing them into participants. Unfortunately, no matter how much a person cries wolf, these same people at one time, loved the wolf’s company and his products. Hence, they must suffer as a result of that Karma. It is inescapable.
Bottom line, the sad truth is that this fraudulent mortgage market got here unchallenged and needs to foreclosure exit unchallenged. Anything less would be a threat to our American economy and the  world markets in general.
Please do not get me wrong. You have every right to file a lawsuit and take anyone who has defrauded you to court to prove the fraud and I think you should. But the facts are that very few of you will. Thus, the fraud will continue unchallenged and it is actually for the better of us all.

4 replies
  1. BB
    BB says:


    I am one of the lucky ones. I bought my house in 1999 prior to the bubble and have resisted using it as an atm during the bubble; therefore, I am not upside down and have a small amount of equity. With the shakiness of these mortgage instruments, I worry that my payments are being made to a company who thinks they have title but may not. I’m starting to feel like the sucker here. While millions of people live it up rent free in a foreclosed home much nicer than mine, I continue to make my payments as I always have and to top it off, those payments may be to a company who can’t prove that that they have the title. How do I know that I come out with a clear title after meeting my obligations all of these years?

  2. John Boy
    John Boy says:

    Mortgage & Title Fraud

    So I guess anyone buying a house today that was built btween 2003 and and 2011 will have little or no chance of ever getting a clear title? Seems to me that if a title wasn’t possible recorded with the appropriate County Authority, the is no chain of title. Guess Realators will really have to make sure title is perfected before they waste time and money on listing a property for sale.

  3. John
    John says:


    I totally agree with your assessment of all that has transpired. Greed in one form or another drove this mess from the beginning. It is being further perpetrated by the banks and the lawyers who are now foreclosing.

    My question is based on the banks reluctance and in cases refusal to just take a property back when the borrower is not paying and will not pay. Let me be clear that I am talking specifically about the people who "invested" in some of our favorite (now infamous) communities developed by Ginn.

    Some of these properties are going to tax sale or in some cases being purchased for $10k-$15k maybe even lower. However given the market and all that has happened many banks still refuse to just take the property even if the borrower will give it to them without a fight.

    If they are hoping that they will foreclose then hold a personal judgment over the borrowers head they are crazy. In most cases the original note is nowhere to be found. That may be good enough to foreclose but I think more will be needed to sue for $100’s of thousands or in many cases millions of dollars. Even if they can locate the note, they go through the expense of a lawsuit in many cases it’s going to trigger a BK by the borrower leaving the bank with still nothing.

    I just don’t understand why the banks (who in many cases furthered the fraud from the start) don’t understand that the quickest, and less painful through this for them and the borrower is to just take title and let the real market prevail. In most cases they are probably carrying these properties at zero on their books so what is the motivation?

  4. Toby
    Toby says:

    Reply to BB

    The MERS system destroyed the chain of title for as many as 60,000,000 mortgages. The title companies are very nervous about the situation. Since you bought only 12 years ago, I don’t think you have to worry. A solution will be found.

    Be sure you keep records of all you payments and copies of your mortgage statements and escrow statements.

    I applaud you for your diligent payments.

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