DEFICIENCY JUDGMENTS: They took your house/job, got bailed out, now they're SUING you [View All]

[nashville_brook]

You know why the bank took your house? Because by eliminating Glass-Steagall, our government enabled a massive speculative bubble which burst and sent the world into financial chaos. Which is why you lost your job. Which led to you losing your house that was massively overvalued.

Instead of the government putting an end to bank speculation, they gave the banks $6 trillion of our tax money -- paying 100 cents on the dollar for FAKE VALUE created in the speculative bubble.

This made the banks whole while working families took the haircut as ALL of our homes lost value, and our tax base eroded leaving our cities and schools without any means of support.

Enter the latest outrage:

Now they're coming back for more, using DEFICIENCY JUDGMENTS to extract money from the families who were already robbed in the speculative bubble, and then lost their homes. A deficiency judgment says that if you borrowed $250,000 for a home worth only $100,000 in today's market, the bank can sue you for the other $150,000 of FAKE VALUE, despite the fact that you've given back the house, despite the fact the banks where made whole in the bail out, and despite the fact that the property has been re-sold.

Why is the government allowing these same criminals to sue the broken foreclosed homeowner for the exact amount that the banks created and stole twice already? Why is no one is stopping them?

What's even more sinister is the banks are now selling these "deficiency judgments" as debt packages that investors are buying as a quick money-maker. They buy a portfolio of thousands of underwater foreclosures (for pennies on the dollar) and on paper they've got more than a $100,000 owed to them from each and every defendant. They'll harass these people until any amount is paid and all that money is profit.

Blood from our dying middle class.

And no one in Washington is doing anything about this. It's beyond outrageous. It's why people are fighting back, occupying parks and being hit with rubber bullets and tear gas. We've got nothing left to lose and we're making our stand right here. Right now.




Here's some reading on deficiency judgments:

http://online.wsj.com/article/SB10001424053111904060604576572532029526792.html
House Is Gone but Debt Lives On

LEHIGH ACRES, Fla.— (snip) Ray Falero, a truck driver whose Orlando home was foreclosed on and sold in August 2010, says he thought he was hallucinating when, months later, he opened the door and saw a sheriff's deputy. The visitor handed him a notice saying he was being sued for $78,500 by the lender on the home purchase, EverBank Financial Corp., of Jacksonville, Fla.

"I thought I was done with this whole mess," he says.

Mr. Falero, 37, says he was about nine months behind on his loan when the bank foreclosed. Before it did, he bought another home in Minneola, Fla., where he now lives and where he says he is up to date on mortgage payments. Like Mr. Reilly, Mr. Falero says he didn't swell the foreclosed-on loan through refinancing or home-equity borrowing.

EverBank won a deficiency judgment on Mr. Falero's Orlando loan. Mr. Falero and his lawyer are fighting to reduce the amount owed. EverBank declined to comment on his case.

(snip)