Save this!

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.

See also  Delta Dental Care - Learn how to save on dental care

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.