Loan Modification Rant

So I did a loan modification on our home in Georgia;11 months into it, the bank fraudulantly foreclosed anyway Now that light has been shed on the banking industry, it's no wonder. My home here in Bonita has a loan on it and Bank of America can't or won't tell me who the investor even is??? Hummm? Securitization is all pretense. Alan Greenspan said that with 100 PhD's he couldn't figure out what they were doing and he was wrong to give them a pass. He should have insisted on the real facts before allowing the continuation of the creation of fake money. Modification is all pretense. If banks and servicers received any part of TARP money they must CONSIDER modification proposals submitted by borrowers. But they don't. And they don't even allow the investors to know that the offers exist. Here's why. The creation of the bogus mortgage bonds was a mere accounting trick in which the typical loan receivable account was transformed into a security. The way the banks played it, they asserted ownership and control over the loans and the bonds until they were done wringing the last cent out of them. All told, they appear to have received $17 trillion in aid on a total of only $13 trillion in loans, in which there were only $2.6 trillion in defaulted principal and half of that was the actual loss. Of course they didn't give the $17 trillion to the investors because that would pay off the loans, so they claimed the loss of the investors as their own and received $17 trillion in bailouts. But wait there's more. They also received money in insurance, and credit default swaps. All told the average loan was sold an average of 15-20 times. So that $300,000 loan of yours was worth $5-$6 million as long as they declared the pool in default --- even if your loan was paid up to date. The pool they declared in default never existed, because it was never funded, and never treated as though it was a separate entity except when it suited the banks who were routinely stealing identities of the investors and borrowers. Despite the obvious fictional nature of these transactions, they were treated as real in the financial world. I wrote an article about this a few years ago entitled the Emporer's New Clothes. We are still in the period where most people are afraid to notice that the Emporers on Wall Street are buck naked and that they never had any cover or clothes. So they got all these trillions of dollars for loans that were in default and all the loans that were not in default. If they modify your loans in any large volume, all those trillions they received will be refundable to the insurers and counterparts to the credit default swaps and the bailouts. And the investors' losses will be cut, thus exposing the fake losses declared by the Master Servicer. Money will flow in large waves back to pension funds and homeowners. So they sit on the proposal, or go into trials that they know will end in rejection, and then they say they considered the loan modification and rejected it. The real reason is that they will lose millions on each modification. So they neither consider it nor communicate it to investors. You can challenge them in court on this. Bring in a realtor and/or appraiser and show that your proposal was over fair market value of the property, that foreclosure proceeds were 50% of fair market value and that no reasonable person would reject your offer if they knew about it or truly considered it. You can demand to know who reviewed it, what formulas they used and proof that they asked the investors. Those who take this route are getting traction. The last thing the banks and servicers --- all of whom are really only intermediaries ---- want is for borrowers and investors to get together and compare notes. If that happens the housing crisis will be over. But the party of the mega banks will also be over. Whew, okay, I'm done ranting