Man In Debt Demolished His House & Dropped It In Front Of The Bank

At the end of 2013 a man from Lovech-Bulgaria who could not afford to pay the mortgage for his house gave his last penny to demolish it right before the bankers could take it away.

The land that the house was built on was not included in the mortgage so the family decided to destroy the house and give it to its new owner. The remains of the building were loaded on a big truck and moved to the central district office of the bank in the city of Teteven, where the contract for the mortgage was signed.

Please read more here.

Foreclosure Nightmare: Family's Home Sold, But it Wasn't For Sale

Please read more here and here.

Trading Report: How Banks & Hedge Funds Steal Homes Even If A Mortgage Is Totally Paid Off

by Michael Snyder

Did you know that the big banks have a way to legally steal your house from you even if you don’t owe a single penny on your mortgage?  Big banks and hedge funds are buying billions of dollars worth of tax liens from local governments all over the nation, and they are ruthlessly foreclosing on homeowners when they can’t pay the absolutely ridiculous penalties and legal fees that are tacked on to the original tax bill.  As you will see below, one 76-year-old man lost his $197,000 home that he fully owned over a $134 tax bill.  A 95-year-old woman lost her $300,000 home over a $44.79 tax bill.  This is a very, very dirty way to make money, and the predatory financial institutions that are involved in this business definitely do not want to talk about it.

Of course much of the blame should also be shouldered by the local governments that are coldly selling these tax liens to these ruthless predators.  If local governments want to collect their tax bills, they should do it themselves.  They should not be auctioning off their tax liens to cold-hearted financial institutions that are very eager to commit a legal version of highway robbery.

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In particular, hedge funds have discovered that this is a great way to make huge piles of money.  The following is a short excerpt from a CNN article that was published back in May

With buyers identified only by numbers or unrelated names, the fragmented, unregulated industry is opaque. Even the market’s size is debated — $15 billion a year, according to Howard Liggett, the chief executive of Distressed Real Estate Consulting Services, or $5 billion a year, according to the National Tax Lien Association, a trade group. While returns are a closely kept secret, investors typically make between 2.5% and 10% a year, or in the low teens for larger buys.

“The hedge funds are chasing yield in this business” says Albert Friedman, a principal at Alterna Capital, an alternative investment firm in Boca Raton that buys tax liens.

Insiders estimate hedge funds now control 40% of the tax-lien market, from under 5% five years ago, with regional banks, obscure partnerships sporting names like God’s ATM LLC, and mom-and-pop investors making up the rest.

Please read more here and here.

Wall Street Journal: American Cities Want to Seize Mortgages

Naked Capitalism: 12 Reasons Why You Should Hate the Mortgage Settlement

The big news stories at the moment: 49 of 50 states have agreed to join the so-called mortgage settlement, with Oklahoma the lone refusenik.

Yves Smith of "Naked Capitalism" lists twelve reasons why the mortgage settlement stinks!

Bank of America Plaza In Atlanta Threatened With Foreclosure

In an ironic twist, a building bearing the name of a bank closely associated with the foreclosure crisis may soon be facing foreclosure itself.

Bank of America plaza, Atlanta's tallest building, may soon face foreclosure if BentleyForbes, the commercial real estate investment company that owns the 55-story tower, proves unable to avoid loan failure through negotiations.

Please read more here.

$335 Million Bank of America Settlement: Good, Bad + Very Ugly

The Obama administration announced a $335 million settlement deal with Bank of America to settle charges of discriminatory lending practices. Richard Eskow presents, in ascending order of importance, the good, the bad, and the ugly of this settlement.

90-Year Old Miami Woman Faces Foreclosure on Home She Owned for 57 Years

SMH! There must be a special place in purgatory for some banksters!

CBS' 60 Minutes: Prosecute Wall Street (Citigroup Fraud video)

A high-ranking former Citigroup Executive - turned whistleblower says he tried to warn his superiors about defective and even fraudulent mortgages.

This Citigroup whistleblower's warnings were sent directly to top Citigroup executives - including former Treasury Secretary/Citigroup Chairman of the Executive Board Bob Rubin.

So why hasn't Citigroup or its executives been prosecuted? CBS' 60 Minutes' Steve Kroft reports.

CBS' 60 Minutes: Prosecute Wall Street (Countrywide Fraud video)

A high-ranking former Countrywide Executive - turned whistleblower says she tried to warn her superiors about defective and even fraudulent mortgages.

So why hasn't Countrywide or its executives been prosecuted? CBS' 60 Minutes' Steve Kroft reports.

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