A Glaring Loophole in the Law Will Allow Foreclosure Victims to Stay On

February 17th, 2009 | Tags: Foreclosure Victims

Marcy Kaptur from Ohio, the longest operating Democratic congresswoman making use of a glaring loophole in the law that will allow foreclosure victims to stay on. She argues that occupation is nine tenths of the law and as such the people can continue to “squat”. There is also another serious matter. The plaintiffs are not being able to easily prove that they are holders of the original mortgage note. In fact the mortgages have been sold so many times to so many investors that it is proving to be quite a task to trace the original note.

There are five financial jumbo institutions that are blackmailing the country – JP Morgan Chase, Bank of America, Wachovia, Citigroup and HSBC. Kaptur derides, “They have this country held by the neck.”

Kaptur asks the foreclosure victims to seek the help of local legal aid societies that work on a non-profit basis without taking fees.

The unenvied duty of actually physically throwing out the occupants of the house delves on the sheriff. If the foreclosure reaches that stage then it is difficult to follow Kaptur’s advice of squatting. There is of course the alternative of the sheriff refusing to evict the people as Sheriff Warren Evans has done in Wayne Count including Detroit, Michigan. In his region during the previous two years there had been more than 46,000 foreclosures. Evans decided that by implementing foreclosures he would be contradicting the principles of TARP and violating the law. If he went ahead with evictions he would be denying the foreclosure victims the chance of getting federal assistance. Evans said, “I cannot in clear conscience allow one more family to be put out of their home until I am satisfied they have been afforded every option they are entitled to under the law to avoid foreclosure.”

The Neighborhood Assistance Corporation of America led by Bruce Marks took the battle to the streets and staged a demonstration in October in front of the offices of mortgage giant Fannie Mae. The agitation continued until an interview was granted. Lately NACA has been working together with Fannie Mae to modify mortgages. Marks is planning a three-day “predators’ tour”. The homes of the CEO’s would be visited and interviews demanded.

Prior to the official taking over of the reins of government by Obama, Larry Summers, the chairperson of his National Economic Council had promised the Democrats in the Congress that they would “implement smart, aggressive policies to reduce the number of preventable foreclosures.”