All Americans should be very, very alarmed : California Cities Considering (Legal?) Theft of Private Property

 

- California Cities Considering (Legal?) Theft of Private Property (ZeroHedge, July 7, 2012

 

All Americans should be very, very alarmed. Today’s Wall Street Journal ran a front page story on a proposal put forth by Mortgage Resolution Partners LLC as a ‘solution’ to the problem of underwater mortgages. When you read their PowerPoint presentation for comprehension it is clearly threatening to all commonly perceived rights of private property and free will.

Here is their summary slide describing the program…

The essence of the plan is to force private owners of mortgages to sell them to Mortgage Resolution Partners LLC [MRT] under the guise of eminent domain. MRT would initially only ‘take’ mortgages that are underwater based on estimated market value but that are current on their payments [NOT in default].

This is MRP’s own description of which loans they intend to seize…

Non-defaulted but underwater mortgages are highly profitable to those holding the paper.  Payments are being made as scheduled at interest rates generally well above today’s rates on similar mortgages. This would be similar to your holding an older non-callable 10-year CD or bond at a 7% annual interest rate. You would never want to give that up early except at a premium to face value.

The borrowers, by definition, have the ability to pay the monthly amounts due. That’s why they are not in default. The current market value of their homes has no bearing on their ability to pay the mortgage. That is a function of some combination of the borrower’s income and assets.

MRP would not only be confiscating highly desirable assets from private citizens or businesses but they’d also be setting artificially low prices as compensation.

The following are excerpted directly from MRP’s own PowerPoint.

Note the phrase “Neither under any compulsion to transact.” Eminent domain is the exact opposite. Holders of not in default mortgages would be forced to sell, period.

Not everyone is a mortgage lender. Many more investors own stocks. Imagine that someone could come along after a big stock market crash (such as Oct. 1987, Aug. 1998, post-Sep. 11, 2001, Aug. 2010, Oct. 2011 etc.) and determine you must sell them all your underwater shares, and at a discount to their already depressed market prices. In essence that would be an involuntary margin sell-out even if you were not on margin!

MRP will make money by seizing privately held mortgages through government action at “fair value” which MRP then defines as “significantly less than the fair value of the home.”

This is nothing short of the improper taking of private property against the will of the holder of said property.

Favored (politically connected?) borrowers who are financially able to keep paying their mortgages as promised contractually will get principal reductions (free money) at the expense of those who entered into valid contracts with them. Can you say “involuntary transfer of wealth?”

MRP likes to say:

Consider this…

The windfall profits of the ‘lucky’ homeowners who receive principal reduction will likely not be taxed. While MRP implies that the forgone tax receipts would not be used for purchase of boats, cars or other non-necessities there would be no possible way to enforce this. Money is fungible.

When taxes are forgiven for one group of taxpayers all other taxpayers must pay more to make up the difference.

MRP is offering ipso facto ‘bribes’ to government entities and charities to induce their participation in this scheme. OPM [confiscated from the original lenders] is always welcomed by these groups.

How bad will the ‘Fair Pricing” of the non-defaulted loans be for those forced to sell them? Bad enough to provide funding for MRP’s employees, MRP’s fees, all legal expenses, all debt forgiveness, all forgone future interest payments and money enough to ‘share’ with local government agencies and/or charities.

Once the fiscal rape of the original mortgage holders is completed… newly created, now very attractive MBS would be shopped to private investors who would profit from the value taken away from the rightful owners of these debts.

Didn’t private mortgage holders have a lot of MERS-related issues? Yes. For MRP though, these will be totally ignored and set aside.

To Summarize:

1.     Highly profitable, non-defaulted mortgage loans will be involuntarily confiscated from their legal owners through eminent domain.

2.     The owners of the ‘condemned’ loans will have no legal rights of refusal other than to challenge the ‘fair values’ after the fact- at great legal expense.

3.     A small subset of underwater borrowers who are not in default and able to pay their monthly mortgageswill be rewarded with principal and future interest write-offs.

4.     These ‘lucky’ borrowers will almost certainly pay no federal or California income taxes on their windfall profits due to this program.

5.     Mortgage Resolution Trust will collect enormous fees for their administration of this dubious project.

6.     Private investors (other than you and me) will be permitted to buy newly issued, highly desirable revalued to current market price MBS.

7.     MERS problems unilaterally and quickly disappear.

8.     Privately held Home Equity Lines of Credit [HELOCs] and second mortgages are extinguished in most cases with no chance for recovery.

9.     Government programs and/or charities will share the wealth to encourage their participation in these unprecedented takings of privately held assets.

Stop this insanity. Demand a return to rule of law before it disappears entirely.

Dr. Paul Price

Tags: Banking, Economy, Global News, Government, Mortgage crisis, Mortgages, Politics, U.S.

Views: 94

Comment

You need to be a member of 12160 Social Network to add comments!

Join 12160 Social Network

Comment by Marklar on July 7, 2012 at 7:08pm

These loans were created as credit. In other words legalized counterfeiting of money the banks never had until they created it from a click of a button. I see nothing to cry over here except that it falls far short of redressing the massive theft of trillons given to the banks ensuring debt slave conditions for the American people for generations to come.

They should be glad they have not been convicted of treason and hung by the neck til dead.

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

tjdavis posted a video

Mossad, Terrifying CIA Technology, Blackwater & The Most Secret CIA Unit | John Kiriakou

John Kiriakou served 15 years in the CIA as a Case Officer (Spy) and as CIA's Head of Counterterrorism Operations in Pakistan where he lead the raid that cap...
8 hours ago
tjdavis posted a photo
8 hours ago
tjdavis posted a video

A Critique of the Tavistock Institute - The Mother Of All Conspiracy Theories

An examination of the Tavistock Institute, a theory which seeks to explain how Western societies have been brainwashed by a cabal of social scientists and th...
yesterday
tjdavis posted a video

“What’s His Motive?” - Inside The Mind of George Soros

In this short clip, Patrick Bet-David, Sebastian Gorka Adam Sosnick, and Tom Ellsworth George Soros and what motivates him to do the things he does. FaceTime...
Thursday
Doc Vega posted blog posts
Wednesday
cheeki kea favorited Bob of the Family Renner's photo
Aug 26
cheeki kea commented on Doc Vega's blog post Plausible Explanation Behind Recent Cryptid Sightings in the Wild!
"If you're ever out there Doc V and notice giant two legged birds roaming the wilderness be…"
Aug 26
Doc Vega posted blog posts
Aug 26
Burbia commented on TommyD's group The Chuckle Hut
Aug 25
Doc Vega posted blog posts
Aug 24
Doc Vega posted photos
Aug 23
Doc Vega posted a blog post

Ashrams and Moonies Perfect Case for Mind Control

 In the late 60’s and into the 70’s we saw a strange phenomenon emerge! That was the rise of cults…See More
Aug 22
Doc Vega posted a blog post

Modern Progress

 From some things you just can’t come backNot everyone has your backIt might just be a nuclear…See More
Aug 21
Bob of the Family Renner favorited tjdavis's photo
Aug 21
Less Prone favorited Sandy's discussion Sick sci-fi sex fantasy written by Epstein's first benefactor people say inspired his twisted island... before author's SON ended up arresting him
Aug 21
Doc Vega commented on tjdavis's photo
Thumbnail

Now Playing

"They sure as hell are! "
Aug 20
Doc Vega commented on Doc Vega's blog post Plausible Explanation Behind Recent Cryptid Sightings in the Wild!
"cheeki kea, yes they have already produced a Wooly Mammoth by crossing DNA from frozen remains in…"
Aug 20
Less Prone favorited tjdavis's photo
Aug 20
Less Prone favorited Bob of the Family Renner's photo
Aug 20
Less Prone favorited tjdavis's photo
Aug 20

© 2025   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted