Home Financing Ninja

ForeClosureGate: Civil Liberties and The Right to Due Process

Late last night I had to make that dreaded call to a borrower to tell them that they had been affected by Foreclosure Gate:  You see, I have a borrower who thought that the time was right to purchase a home in the central Orlando area.  Application had been approved, credit is great, reserves in place.  However, the home that was chosen is one of many homes ("units") under the control of The Law Offices of David J Stern and Freddie Mac (FHLMC).

You may know that The Law Offices of David J Stern (aka DJS Enterprises) is one of four "foreclosure mills" handling Florida only properties in all areas of foreclosure.  I personally have had dealings with them, so I will do my best to keep the "soap box" put away.  Their name was tossed around at high levels of the government recently called for being investigated about questionable foreclosure and related litigation practices.  Again, with my personal feelings, I won't say to much about what I think about them.

A fellow rainer yesterday suggested that to cure this nation's financial problems, we should allow foreclosures to proceed.  Active Rainer Cody Haworth, Carlsbad, CA wrote about all the pro's that a foreclosed home can produce.  Income for rehab related industry people, realtors, title agents, etc, etc, etc.  And that the more "units" moved sooner, the better life would become.

I would agree with Cody.  The more units we do move and the sooner that they are moved, the better your life, my life, my kid's lives are going to be.

I don't agree that the Right of Due Process be stripped.  Just call me crazy.  But I have to agree with J Philip Faranda on this one.  In his blog (as maybe a rebuttal to Cody), Phil discusses problems with the system.

De - Ja - Vu.  For some reason or another.  Wait, make that MANY!  I feel that we have been here before (cue Twilight Zone Theme Song) in a similar setting.  Once back in the late 1700s when the King of England tried to tax us (the colonies) with out representation.  Yeah, that went over well.  More recently, when Illinois decided to issue a blanket commutation of all the death sentences of inmates due to flawed, shoddy legal practices. 

Do you really want to be a solution to the problem or keep complaining about it? So it has happened.  While you wait for the dust to settle, find another person who needs your services (Oh, no that would NEVER work) or better yet, team up with someone who does (Yeah, that would never work either)

Two Solutions to Help with the Current Economic Crisis. 

(1) Manufacture leads and clients, be a solution to whatever problem(s) they have to purchasing a home.  Don't be afraid to try new technology or ideas to build your database.  Title agents, Realtors, Brokers, - Heck, look at your own internal database and start there!

(2) FIRE THE GOVERNMENT:  I am sorry to say, but the Government does NOT have the best interests at heart of it's people.  Been this way for YEARS.  Yet we have grown to comfortable with this.

1. The Double Dipping Public Servant who gets a pension, retires and then gets rehired into the SAME position
2. Members of Legislative Bodies who don't show up to vote on a topic, only to have someone else vote for them
3. Members of the Judicial community who stack the cards against defendants by manufacturing of evidence (civilly and criminally)
4. MERS - Yes, those guys - Oh wait, that is the banks AND the GSE's
5. Members of Congress who did not give an increase to Social Security this year, yet gave themselves a nice "little" payraise!!!

I am starting to remember a commercial about buying annuities - You know that one with the tag line "It's your money, use it when YOU need it"

Here is my point: If we erase the right of Due Process in civil matters (foreclosure suits in this case) - what stops us from doing that when someone's life is LITERALLY on the line.  This is the reason why the Sixth Amendment was included in the Bill of Rights in 1791 (yes I know it was designed for criminal cases, but it applies)

1. The Accused has the right to notified of the nature of the crime and circumstances of the crime (ie, we still have to serve court papers to those being sued)
2. The accused has the right to a public trial (I have yet to see a foreclosure proceeding be an issue of national security)
3. The accused shall have the right to counsel
4. The accused shall have the right to a speedy trial (Four months to get a court date in Florida, Hmmm - this could be something here)
5. The accused shall have the right to confront witnesses who will testify against the accused (Sorry, this is the BIG one here.) 

Having been in the unfortunate situation of foreclosure, I have no problem 'fessing up to what I have done wrong.  But all I want is proof that whomever my accuser is has the right to take possession of my house.  And not to be bothered until then.

As proven in the media, there are way too many instances of improper foreclosures happening due to:

1. Mistakes
2. Non Communication between banks, lenders, servicers
3. Non Communication between internal departments
4. Plain and Outright Forgery (which by the way, is NOT being criminally prosecuted. WTH?)

My New War Cry:  Break The Damn Board

(This has been an unpaid, unrepresented real estate thought blog of Chuck Ward.  No animals or husbands were hurt in the publication of this article.  If you disagree with what I have said, please contact your local Congress Person and tell them to Get rid of the First Amendment!)