I advise my clients who have mortgages they can’t afford, especially if they owe more than the home is worth, to stop paying their mortgage!
Sounds rather radical, you say.
But if you understand what the financial system has done to these homeowners, you might understand.
It’s just a matter of self-defense, financial self-defense.
The Wall St Syndicates; banks, investment houses, bond underwriters, bond rating agencies, etc. conspired in true extortion style to produce fraudulent financial instruments and then force them on inexperienced borrowers.
Uncomfortable with the word, fraud? Fraud, according to the dictionary, is a “deception for personal gain”.
Rating bonds backed by subprime mortgages as investment grade, AAA, to collect fees is a good example.
Issuing insurance; credit default swaps, with no assets to back them, to collect fees is another example.
Knowingly falsifying mortgage application data to collect fees is yet another example.
Without these major fraudulent practices by the mortgage and financial industry, the whole subprime debacle would never have happened.
Now that the mortgage mess has “inextricably” blown up in the faces of the banks, effectively bankrupting them; they demand that homeowners they defrauded continue to honor their commitment to pay their toxic mortgages and bail them out now with trillions of tax dollars.
As one Wall St Bigwig said, “The banks are too big to fail and the homeowner is too small to bail.”
So the battle lines are drawn. On the one hand, the banks want to drain your entire life to make sure you keep paying their mortgages, meanwhile robbing your kids and grandkids by blackmailing us and getting trillions of our dollars to pay back their losses so they can to keep one’s head above water.
These huge loans and cash injections will create huge deficits that will be passed on to future generations.
Unfortunately, there is no bailout for the homeowner, only half-hearted measures such as loan modifications that fail to solve the borrower’s problems.
Look at the widely touted rescue plan Hope for Homeowners. It was expected to save 400,000 homeowners from foreclosure. Only 312 loans were adjusted. And we now know that more than half of all borrowers who had their mortgage modified have gone back into arrears in less than 6 months.
Changes are not the answer. Lowering the outstanding loan balance to 80% of the property’s current market value, as they did during the First Great Depression, is a much more effective remedy because it establishes a payment level that the borrower can afford.
Therefore, in the absence of any willingness on the part of the banks or the government to bail them out, borrowers are left to defend themselves against the unscrupulous banks. It really is a case of financial self-defense. You know where the banks come from, it’s up to you to fight them.
It’s enough that most of these troubled borrowers, especially the 15 million or so who are “Underwater”, who owe more than their home is worth, will lose their home one way or another.
That’s their penalty for taking out a loan without the advice of a financial professional or having their own attorney assist them at the closing; not the lawyer of the mortgage broker or real estate agent, at the closing.
But it shouldn’t mean plundering their savings, retirement accounts, or their children’s estates to appease the bloodthirsty banks.
As an experienced real estate investor, former bank loan officer, and personal financial coach who assists homeowners in trouble, I have many people in this situation.
My advice to them is to stop paying their mortgage, don’t give the banks another penny of their hard earned money.
Then we show them how to stay at home for about two years without paying a dime to the banks so they can collect some money to make a fresh start. In some cases, the banks pay my clients thousands of dollars to vacate the premises.
What about the final shield? Won’t it hurt their credit?
Yes, it will be, but they would be in the same situation credit-wise if they ended up losing their home.
Their choice is to be evicted from their home penniless, after going through their savings or with the savings intact and a few bucks to move on with.
And when the dust settles, they will be able to buy a house for less than half of what they paid for the lost house, according to expert experts.
If the banks and their proxies in government don’t save the homeowner, he has to save himself, period.
Recommended
- Health insurance buying tips for newbies If insurance language sounds more like Greek than English to you, fear not. These tips will teach you just enough to help you successfully navigate the insurance buying process. Shop. This is easier than it sounds because here in Texas many insurance agents sell the same products. For example, most…
- The Role of an Insurance Fraud Investigator Dallas When we think of insurance fraud, we should include activities such as filing a false claim that is more than the original damage, false dates on an insurance claim, mixing lies with the truth based on how the accident really happened, etc. A person committing this fraud would think that…
- Life insurance for children Each patent has to decide whether or not to take out life insurance for their children. Since buying life insurance may not be an easy decision, the fear of not having it with your child can really worry you. As a parent of a baby boy or girl, you may…
- The basics of taking out life insurance over 50 If you are over 50, you should know that it is becoming increasingly easy to invest in life insurance for the over 50s. Life expectancy has increased and this has led to a reduction in the cost of these policies for the elderly. While this is the case, there are…
- Banking and financial services - essential part of… Banking and financial servicesToday, banking and financial services are an essential part of everyone's life. Every day people use different types of banking and different financial services. Some examples are paying utility bills or insurance premiums, shopping online or via debit/credit cards. These technology-driven banking and financial services have simplified…
- Types of insurance fraud Insurance fraud is when deception is involved in the insurance process. It could be a case when someone makes a false claim to an insurance company. The insurer may also refuse to pay the claimant. Statistics have shown that insurance fraud is on the rise worldwide.The motive behind insurance fraud…
- 5 popular private surveillance applications Private investigators currently perform a number of jobs ranging from fraud investigations to background checks for employers. However, some of the main tasks involved in this work are private surveillance and investigations as these are important parts of many different investigative services.Here are some of the main cases where private…
- Employee compensation and disability fraud is huge – in… Maybe you didn't realize it, but the workers compensation fraud is huge and you would have thought that the authorities would have stopped all that by now, but you know the trial lawyers are in charge, the big money there. We should throw some of those damn lawyers and doctors…
- Commercial Mortgages - What Rates Do Hedge Funds Charge For… Due to the ongoing credit crisis, it has become much more difficult for investors to qualify for an institutionally financed (bank, broker, insurance company) commercial mortgage loan. Underwriting standards have tightened significantly and lending parameters have tightened. Very few deals are accepted by the banks, and even fewer are actually…
- How do you choose your insurance advisor? You must opt for a life insurance policy. If your finances allow, you should take out health insurance in addition to home insurance. In this way, you can save yourself from a sudden financial crisis. But when it comes to an insurance advisor, you need the best of people. In…
- Gain efficiency through claims investigation services Importance of damage investigationUnderwriting and claims investigations are the two most compelling perspectives in an insurance company's operation. In today's commercial environment, where competitiveness and financial benefits are key business cornerstones, claims research can serve as a market differentiator that puts insurance agencies at the forefront of industry leadership and…
- Prospects and Prospects for Real Estate Investments 2010 What's next for real estate?For most people, real estate remains a crucial part of their personal net worth. Despite the stock market recovery, the average net worth of an American family has fallen by about 25% due to declining real estate values and investment assets.Overview of market trends - Focus…
- Critical Health Insurance 101 Critical Illness Insurance pays benefits for living expenses... in one lump sum... to an individual following a diagnosis of a heart attack, cancer, stroke, kidney failure, terminal illness, the need for an organ transplant, etc.The key is that payment is triggered by diagnosis. Benefits are not tied to any reimbursement…
- Hacker insurance for e-commerce business Computer crime or computer security breaches cost American businesses as much as $150 million in lost revenue each year. This includes theft of information, sabotage of data or networks, system penetration by outsiders, abuse of internet access, spoofing, viruses, financial fraud, active eavesdropping, unauthorized access from the inside and theft…
- How a Smart Home Security System is a Smart Move for Your… When most of us think of home security, we think of money going out the door and not often money coming back in. Well, that thought process may change once you find out how a home security system can save you money!Whenever a homeowner installs a home security system in…
- The credit crisis of 2008 Many factors contributed to the financial collapse of 2008. The details behind the credit crunch can be summarized as follows:The main driver behind the whole crisis can be attributed to the low cost of borrowing. With the United States' economy seriously underperforming in 2001, the central bank began a policy…
- 3 solid tips for finding cheap term life insurance Among the different types of life insurance, you now understand the huge drawbacks when it comes to buying life insurance / permanent life insurance. Instead, take out term life insurance to protect you and your family.Learn the difference between types of life insurance: term life insurance versus whole life insurance.Tip…
- Connecticut Government Mortgage Programs Connecticut home buyers can choose from state and local government programs when looking for a mortgage. Local government home loans include CHFA, HERO, and UR Home mortgages. Content: Nationally, government loans, such as FHA, VA, and USDA mortgages, are an option for borrowers who want to own a home. While…
- Importance of credit and financial services for an… Like money, the importance of credit and financial services cannot be ignored. We know that money is the backbone of any economy. In addition, the functionality of an economy depends on the financial system of the state. In this article, we are going to learn more about the importance of…
- Subsidy scheme for first time homeowners and professional… The First Home Buyer Grant is given by the NSW Government to those who are eligible to purchase the first home on the market. The federal government has recently improvised this buyer's exchange to offer all first-time home buyers an attractive offer. The First Home Owner Grant Scheme (FHOGS) is…