The Homeowner As Victim, Not Deadbeat (via Chasing Fat Tails)

On By southwerkIn business ethics, Capitalism, Government Failure, White Collar Crime

Amen!!

I’ve blogged on this exact subject.

You can be a mortgage company or a bank and your moral status is unchanged by the destroying the world economy and by using mortgages as play money in the global securities market. But if you are a consumer who falls behind in payments on your house, you’re evading your personal responsibility and should be booted out, children, furniture, pets and all.

James Pilant

One thing that annoys me to no end is the constantly espoused view that purportedly delinquent homeowners "deserve" to get foreclosed on. The idea is that when a homeowner defaults on his payments, he loses moral claims to "justice" when it comes to foreclosure, since he violated an agreement. In the context of the current foreclosure crisis, the view seems to be that ownership of the note is a purely legalistic issue; it doesn't get over the mor … Read More

via Chasing Fat Tails

3 thoughts on “The Homeowner As Victim, Not Deadbeat (via Chasing Fat Tails)”

  1. Reading the article I find it is devoide of the human element. A computer goes by some numbers and ticks off an Action letter that is taken as sacrosanct even to the extent of putting up a lock in a house that ought not to be attached. I’ve got a feeling these mortgage service agencies are paid on the basis of number of notices issued and they act indiscriminately. It is bank’s responsibility to assure action taken is legitimate to start with. My suggestion is Article 13 UNCAC: Participation of Society. Let consumer group be formed in every precinct, represented by a Trustee in the Board of the banks who would oversee the effective functioning of the foreclosure procedures from setting-up to execution.

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  2. Andrew's avatar Andrew

    There seems to be two, equally unrealistic and delusional, prevailing mindsets in regards to the issue of foreclosures and the housing market:

    1) That ALL homeowners who do not make their payments are irresponsible and should lose their homes, no matter how unfairly they were treated by the banks.

    or

    2) ALL homeowners who are having their homes foreclosed on are poor victims who were dooped by the evil banks and their heartless, unrelenting pursuit of profits.

    It would seem that the truth is actually in between these two extremes. For those who were TRULY dooped and scammed by the banks, they deserve mercy and a 2nd chance. For those who just stopped making their payments and who chose to accept a mortgage that they knew they couldn’t afford in the long run, they do deserve to have their house repossessed as per the agreement they had with their bank.

    Just because the bank says that they will give you $300,000 for you to buy your house does NOT mean that you HAVE to find a $300,000 house or use all of that available credit. I’ve run across so many people who saw that the bank would allow them that much credit and they impulsively jumped on it without thoroughly thinking it through. These people I have little sympathy for.

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  3. I’m absolutely in the middle but I see virtually no blame and absolutely no penalties for the banks even though their actions rise to the level of fraud on many occasions. I want fairness. jp

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