Foreclosures increase sharply in January nationwide

California-foreclosures

Weren’t the perky talking heads telling us the housing recovery was zipping along just fine? But whoopsie, foreclosures in California in January were up 57% year over year. 21 other states also had sharp, unexpected increases in foreclosures in January.

In New Jersey, they soared 79%, in Connecticut 82%, and in Maryland 126%!

Golly, I’m sure this must be an outlier because the Fed and White House have been explaining how things are improving. In fact, housing has improved so much banksters are selling synthetic derivatives based on assumed rental streams from the thousands of houses they’ve bought. Only cynics among us would say this securitization is precisely the same type of thing that helped tank the economy in 2007.

From comments on Zero Hedge.

All of a sudden there are loads of preforeclosure listings in my hometown in eastern CT, after years of nothing. Suddenly on Zillow, 28 preforeclosures, to go with the 36 regular listings. I had been looking for so many years, and seeing nothing, that I took a break from looking, and then boom.

I checked neighboring towns, and the same: sudden huge number of preforeclosures easy to see.

I looked at West Hartford, too. Just six months ago I had checked; there was basically no sign of distress on the regular/free sites. Now about 115 preforeclosures. That is a very desirable town to many people.

I grew up in West Hartford. It’s a stable, prosperous upper middle class area. Yet the foreclosure demon just popped out of the closet. Why?

Maybe homes just got too expensive (again). Buyers stretch to make down payments and pay the mortgage. Unexpected bills, health problems, or job loss can have devastating consequences if you are already at your financial limit. Expiration of unemployment benefits for millions was probably the triggering factor. People knew the benefits would end in January and stopped paying the mortgage some months back.  Also, quite clearly, the real economy, the one separate from Wall Street, isn’t getting healthier.

States Strike Back: CA Takes Action on Home Foreclosures

The California legislature passed a landmark bill Monday strongly regulating how banks handle home foreclosures. The legislation bans dual tracking, the odious practice where lenders pursue home foreclosure while negotiating with homeowners about modifying mortgage terms. Robo-signing– falsifying signatures– on mortgage documents is now illegal. The state and private citizens can now sue financial institutions for violating the law. Finally, loan servicers and banks must provide a single point of contact for clients.

These are badly needed regulations. Dual tracking too often was just a pretext. The loan servicer would pretend to be negotiating with the homeowner while instead focusing on foreclosure. That deceptive maneuver is now prohibited. Robo-signing, the deliberate use of fraudulent signatures in thousands of documents should have been and probably always was illegal. But the new California law makes it bluntly clear and mandates criminal penalties. That such a law needed to be spelled out so clearly simply shows how evasive, uncooperative, and sometimes criminal our financial institutions have been in the home foreclosure crisis.

More

Federal auditor: Obama’s anti-foreclosure effort is a failure

Ask yourself, who benefited from Obama’s anti-foreclosure programs? Why it was the banks, of course.

“Others, who may have somehow found ways to continue to make their mortgage payments, have been drawn into failed trial modifications that have left them with more principal outstanding on their loans, less home equity (or a position further ‘underwater’), and worse credit scores.

“Perhaps worst of all,” it continues, “even in circumstances where they never missed a payment, they may face back payments, penalties, and even late fees that suddenly become due on their ‘modified’ mortgages and that they are unable to pay, thus resulting in the very loss of their homes that HAMP is meant to prevent.”

The banks profited, Obama happily allowed this to happen, and homeowners got screwed.

Oops, I did it again, says Bank of America

Bank of America explains how their foreclosures are fine, just fine.

Why it was just last week BofA was squawking about how error-free their foreclosure process was, no problems here, thanks for asking.

Now that they’ve deigned to actually examine their foreclosures, they now say, oopsie, pesky bookkeeping errors were happening all over the danged place. Well, it must be bookkeeping errors because otherwise suspicious types might instead say it could be fraud by criminals disguised as bankers.

Among those suspicious types are the battalion of lawyers about to wallpaper the banksters with class action suits.

The Federal Reserve is on the job, tracking down the evildoers

The federal government, not to be left behind, is galloping backwards on their horses to the rescue and no doubt will arrive at the wrong location with the wrong plan, far too late. You think I’m exaggerating?

“We are looking intensively at the firms’ policies, procedures and internal controls related to foreclosures and seeking to determine whether systematic weaknesses are leading to improper foreclosures,” Bernanke said. “We take violations of proper procedures seriously.”

Wow, that’s really taking command of the situation with bold decisive leadership, isn’t it? Federal regulators say they will have a report by next month, which will no doubt call for more careful and ponderous study before they try to bury the whole thing and then steadfastly do nothing. Meanwhile, a bunch of bloggers have already assembled all the proof the government needs to act. That massive fraud occurred is not in doubt, except for the always ready to accommodate the banksters Federal Reserve.

Bill Black , An actual regulator, in the sense that he actually regulated, (quaint concept that, isn’t it, regulators that regulate, Bernanke should try it sometime) has called for the resignation of Bernanke, Geithner, and Holder. Black was a regulator during the S&L crisis, and helped put hundreds of bankers in prison (there’s another quaint concept, criminal prosecution of bankers for crimes committed rather than getting Get Out of Jail cards from the feds) and devised the concept of control fraud, whereby a few at the top of corporations and countries deliberately loot the entity. Which of course is precisely what’s happening now.