Friday, October 7, 2011

OWS: Mortgages

The Marxist screed that Bill Ayers published as the manifesto of the Occupy Wall St. protests includes the following as the first indictment of the system:

"They have taken our houses through an illegal foreclosure process, despite not having the original mortgage."

Not being steeped in the memes of the revolution, I am not 100% sure what they are claiming here, but is sounds like they are opposed to the securitization of mortgages, and the subsequent foreclosure on people who do not make the payments on theirs.

Let's look at each of these assertions:

through an illegal foreclosure process -- It does not become an 'illegal process' just because you don't like the results.  If you fail to make the payments, they come and take the home back.  That is the deal.  The home is the collateral you used to get the loan in the first place, and the mortgage is the lien on the home that helps the lender recoup his money.  There are exactly zero examples of banks foreclosing on properties that are not in default on the loans.  The banks have enough problems with non-performing loans.  They are not foreclosing on performing loans.  This is a lie.

despite not having the original mortgage -- This is irrelevant.  The mortgage document is quite clear.  The right to collect the money due under the loan agreement is transferable.  Assignable.  Look it up.  It is in there.  So the fact that the bank that is foreclosing is different than the bank that made the loan is not relevant.  This is completely legal.

It appears then that the primary complaint here is that someone did not read the mortgage agreement before they signed it, and then failed to make the payments they agreed to make.


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