Courtesy of Dr. Paul Price at Beating Buffett
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
http://www.zerohedge.com/contributed/2012-07-07/california-cities-considering-legal-theft-private-property?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
| 