The Banksters are claiming that they are here to help release the burden of our overloaded and short of cash courts. The Banksters are saying that they are really here to help you.
The Florida Bankers Association has drafted a 55 page bill called The Florida Consumer Protection and Homeowner Credit Rehabilitation Act- which you can read right here.
Now, how many people here believe that the banks really have the homeowners best interests in mind? See how sneaky the name of this bill is?
Joe Manausa of Tallahasse Real Estate wrote an article that sums up a lot of the lies and misconceptions of this bill. You can read: Does The Florida Bankers Association Think You're Stupid? Here.
The banks are the ones that are NOT foreclosing on the homes here in Florida. Yes, the courts are backed up but that is not the reason that the banks are doing this. They claim that 37 other states already have non judicial foreclosures and so Florida should too. Well, let's see, Georgia has non judicial foreclosures and they are worse off than Florida is. They have blighted neighborhoods with lots of foreclosed homes that are NOT taken care of and not kept up yet the Banksters want you Florida residents to believe that these banks are going to somehow start taking care of your neighborhood???? PLEASE!!!!!
It gets worse. This bill is so toxic that the Banksters refuse to release the legislative sponsor of the bill. Hmmm, could it be that this person's political life will be over once revealed????? Do not give up your judicial rights!
As agents- you think short sales are hard now? At least we can get judges to postpone foreclosures so we can get short sales done. We can get time. In non judicial states- the agents are fighting unrealistic time clocks! Right now we can get short sales done to help homeowners. That is moving a market. But creating more shadow inventory is not.
Even if you are making your mortgage payments on time you need to understand what this bill really says and what it is all about and it is NOT about helping you and your neighborhood. Put yourself in someone else's shoes. Let's just say that you lost your job. Then you went behind in your mortgage payments. But then in 3 months you get another job and can start catching up on your mortgage payments. In our JUDICIAL state; you can go before a judge and ask him to grant you the time to catch up on your payments. With this bill all you are going to get is a Deed In Lieu in the mail! WOW! What a gift from your bank that would be!
But wait, there is MORE!!!!
Please read this entire post because there is much more for you to learn here. This is SO important!
Do you really think this bill is about helping the consumer as the title of the bill eludes to? Please quote me one time where the banksters did something for you. Everything they claim to want this bill to do the banks can already do except they must go through the courts to do it. The carrot they are dangling is a release of deficiency with a Deed in Lieu. But don't grab your carrot so fast.
As Joe points out in his post- the banksters really want to be able to control their ability to foreclose. There are underlying sneaky tactics that they are going to be able to pursue. Even if you plan to live in your home for 30 years and you always make your mortgage payment on time, this bill stands to effect you.
Because even if you do pay on time every month, pay your taxes, pay your HOA, pay your insurance but the market value in your house drops- there is a very sneaky piece of fine print in your mortgage that states that the bank can require you to make up the difference in the loss of value. Most banks don't try that one here in Florida because guess what!!! The judges are not very thrilled about things like this and you could fight this in court. What if the difference in the market for your home was $20,000 or $60,000. Could you pay that to the bank at their request right now? You see, a judge knows that and you can have your day in court over this issue. Sounds to me like a sneaky way for the banks to raise capital quickly or else foreclose on you.
What the banks really want is the ability to foreclose on any property that they desire to do so to.
And there is still more!
The Bankers Association did not stop with this bill in the House but they also created another bill for the Senate, one that is broader and just another way to gain control.
This one is called: The Nonjudicial Foreclosure Act For Nonhomestead Properties.
Another sneaky way to get in one door that the Banksters are hoping on. This bill is like getting the homesteaded homeowners to attach those that come here for vacations providing income to our state or those with second homes or even those who do live here but are investors. Take away their rights to go to court, sounds like a plan to most people but again, you must read beneath the title. You have to read these bills. If you give them an inch they will take a mile.
There is a section in this bill that says that the banks will also be able to use nonjudicial proceedings for "abandoned" properties. Well, Nestor and I are constantly going to listings we have where the banks have changed the locks even when the homeowners are still living there and the banks claim they thought the house was "abandoned". This is another snow job in a state where it is not supposed to snow. Don't let them kid you.
Now, this bill has a sponsor that has put his name out in the open on it. We are calling out to our friends in Bradenton Florida to put pressure on your Senator!
This bill is being sponsored by Sentor Michael S "Mike" Bennett- District 21- Republican. I don't know if he was planning on running for the Senate again as we do have term limits in Florida. Nevertheless, contact him ASAP to let him know this is not good for your property rights.
Here is the Flyer that you can print out that you can sign and please send in to your elected members of the Florida Legislature. You can also go directly to: http://www.PigsAss.org to get a link to pass along to all of your friends, neighbors and people at work. If you are a Realtor® please go to your RPAC at your boards and get them on the side of the homeowners and property rights which is what the essence of NAR is supposed to be about.
Stop These Bills Now. Protect Your Right To Judicial Procedures- This is being called the Trojan Horse Bill. Please reblog. Please pass along to all Florida Residents now. Don't forget, don't delay, do it now.
Hi Katerina...talk about losing your rights..it reminds me of 1981 when the banks here where losing loans in South America, and ran interests rate up to 24%. So many here went to lines of credit or better known as Demand loans...and demand they did to cover their loss's from their greed lending to Brazil and Argentina and having them default and refuse to pay on these Super Loans.They knew they could call on their demand loans...the Banks in Canada Bankrupted hundreds of Builders and developers and investors in just a few months, the public was stuck with 18% mortgages...Do Not let this Happen to You.... Listen To Katerina
Katerina - Thank you for sharing this. I wish someone would find the name of the sponsor of the first billand leak it. That might help put the brakes on it. What a bunch of hogwash this all is!!
You go girl. Stop these white-collar crooks before they can do there what they routinely do elsewhere.
Wow, I'll go read in detail Joe's post.
Interesting if it is introduced it could effect all states and not just Florida.
We have foreclosure by notice, then a 6 month redemption period for the homeowner, unless the property is abandoned.
It affords the homeownere the opportunity to catch up and stay in their home. It also allows us to get our short sales closed before the 6 month redemption period.
Congratulations this post is now featured in the Silent Majority Group of Active Rain.
Katerina:
It seems non-productive in times like these when Florida is already buried in foreclosures to have wording like this that will deceive home owners and cause more foreclosures to come into an already over-burdened supply.
Banks are the biggest scammers of all. No wonder we trust big business so much. I think they need more of our money
This maket is never going to right itself until banks will allow us to work short sales in a timely manner. They are contributing to the continual doward slide of the market.
Thank Kasterina. I need to reasd through this and digest it fully. I do know though that non-judicial foreclosures would really make what we do much more difficult. Banks have made a big enough mess already.
We've had the locks changed on a short sale listing twice now by the caring, well-meaning bank. No amount of letters or phone calls ever make a difference.
What a perfect example of big business and government working together to further debase and devalue our citizenry.
I would like to rework one quote: IF YOU GIVE THEM AN INCH, THEY WILL TAKE YOUR LIFE!
This bill could lead to disaster in all judicial states. I keep saying that there is something else afoot in this situation. Is this a LAND GRAB by the banks and by the government?
Even though I don't live in Florida doesn't mean I shouldn't get involved in this fight. Oklahoma is a judicial state. If someone has gotten so far as to receive a notice of les pendens, I still have as much as 6 months to get the house through a short sale. Here to me is the irony. One of the ways we are told to help the economy is to spend, finance a car, get some furniture, go to Home Depot. If we force people into a quick foreclosure, then how are you going to do this with a credit score into the dumper? What about support for the housing industry? How are you going to do that with hundreds of thousands in Florida who can't get a home loan becasue of foreclosure instead of two years later after a short sale. As my old friend who owns a restuarant used to say, "that is some kind of dumb".
Katerina, like Joe Pryor said, we are a judicial state too. While I don't specialize in foreclosures, my experience with them here is that in most cases they are still a pain, but a whole lot easier to deal with than in many other places. We just don't have that many!
OMG - this is just mind blowing. I really am at a complete loss for words other than OMG.
It is amazing how legislation gets manipulated and right before everyones eyes. It is such a complicated solution to a complicated problem created by the same people. I can understand how this stuff passes by the population, it is so confusing, no one can look at it, and so they do not. Then stuff like this passes, and everyone suffers more. Good post.
Katerina - I'll get right on protesting changing Florida to a non-judicial foreclosure state. We all hear the nightmares from the short sale agents from non-judicial states, no time to help those in need!
We wouldn't be in such a mess if lenders had been more responsible a few years ago. I don't think they are doing their share to clean it up. Greed!!!!!
wow, I don't know what to say except, I'm disgusted by this. Bankers are legally stealing property and there is no end in sight. One thing is for sure, they have resolve and are non-stop in their efforts. The only thing that will stop them is an opposing force that is just as diligent.
Politicians are clearly in their pockets, why else would they not release the sponsor of this bill. I'm sure said politician will be rewarded handsomely if this bill goes through.
Kevin- You are right, the sponsor of one of the bills has to be getting something out of it and the one they are keeping in secret must be scared that his political career is toast. What politician would be so stupid in this climate of the constituents ' feelings towards banks to sponsor some bill like this?
Wendy- See if you know anyone in the Brandon area to put pressure on Mike Bennett. Go to the pigsass.org link and get the flyer to print and send to your reps.
Tchaka- Hi, I have not seen you in a while. Hope all is well with you. You live in the heat of where this bill will effect homeowners but can you just imagine the deeper greed in this???? I am so appalled that anyone in a homestead state would ever even consider allowing the banks to decide their fate! We have judges for a reason.
Joe- Well I am not sure the banks have that same agenda since they got all their bail outs. The data shows that since they got the money from the bail outs their profits have risen yet they have lended less than at any other time!!!!!!! This is just another power and greed grab.
You ought to be very concerned about this fight because Oklahoma follows Florida in lots of legislature law. There was one person who hates realtors who wrote a comment on Joe's blog that says that 37 other states have non judicial so we should follow!!! This is ignorance. If someone tells you to jump off a cliff, are you going to? When, maybe, just maybe the other 13 states are protecting property rights more than the others.
Losing your day in court is a HUGE right to give up!!!
And I don't buy any of their public relations rhetoric either. These two bills have to be stopped.
Joe- Well I am not sure the banks have that same agenda since they got all their bail outs. The data shows that since they got the money from the bail outs their profits have risen yet they have lended less than at any other time!!!!!!! This is just another power and greed grab.
You ought to be very concerned about this fight because Oklahoma follows Florida in lots of legislature law. There was one person who hates realtors who wrote a comment on Joe's blog that says that 37 other states have non judicial so we should follow!!! This is ignorance. If someone tells you to jump off a cliff, are you going to? When, maybe, just maybe the other 13 states are protecting property rights more than the others.
Losing your day in court is a HUGE right to give up!!!
And I don't buy any of their public relations rhetoric either. These two bills have to be stopped.
Nicholas- Thanks for the feature in Silent Majority and thanks for giving this some more exposure while being featured.
I'm working in California, where we have trust deeds with the power of the trustee, but lenders can also do a judicial foreclosure if they so chose. Do you know how many of them do that? Almost none of them. Not even on hard money loans when a judicial foreclosure would be to their benefit. So what does that tell ya?
All I have to say is WOW. However, I agree with some of the above comments that ost banks don't exercise non-judicial foreclosures because they don't want more foreclosed homes on their books. But I understand your point that it's not a good thing to have something like this available to banks.
RJ- The danger is not in the foreclosures that are going on now. The danger is for the future or in down turning markets. There is a vague clause in our mortgages wherein the lenders can seek to demand you bring your mortgage to a level of risk that they feel comfortable with. Upside down would take on a whole other meaning. Imagine having to come up with the difference and you don't have your day in court. Right now, they don't pull that here in Florida because no judge is going to side with the interpretation of that clause. This clause has been pulled on current paying homeowners in other states where they do not have judicial rights.
Also, the abandonment clause is very open to interpretation.
I am hoping to be on the side of the BAR on this one. Just imagine the loss of income to Florida attorneys so I hope they get on board to fight this bill.
Oh BOY!!! NY is a judicial state - and it has bought time for those seeking a way around foreclosure. Just because 37 states have non-judicial foreclosures doesn't make this a good thing. Obviously, judicial foreclosures give time for homeowners to arrange a short sale.
The banks have been lending less since TARP. They also have had increased profits and are less inclined to work with homeowners. What's wrong with this picture?
Oh BOY!!! NY is a judicial state - and it has bought time for those seeking a way around foreclosure. Just because 37 states have non-judicial foreclosures doesn't make this a good thing. By analogy if the majority of people in NY suddenly decided to jump off the Empire State building - does that make it a good thing? Obviously, judicial foreclosures give time for homeowners to arrange a short sale.
The banks have been lending less since TARP. They also have had increased profits and are less inclined to work with homeowners. What's wrong with this picture?
Glad you know about the pigass.org site. People fighting foreclosure should also look to these sites for help as well:
www.foreclosurehamlet.org
www.livinglies.wordpress.com
Katerina - the Bankster's new slogan should be NO BANKSTER LEFT BEHIND - argh
Donna- I found pigsass.org from Foreclosurehamlet.org. Hamlet is a great site with loads of info for homeowners and agents to stay on top of it all.
Great slogan for them! They wanted to get into the real estate brokerage and so since we beat them in congress maybe they plan to just become the biggest land owners in the US and then they can sell it all FSBO and hire agents to come and work for a measly salary.
Ruthmarie- Hey! How about that, we found common ground, LOL!
The Banksters are going to get their money however they can. I didn't really think about the land grab angle.
Wow. That's really something. I hope lots of Floridians find your post.
OMG. This is a nightmare. It's a good thing that you're sounding the clarion call, Kat. I wonder how this will affect CT, as we are a judicial foreclosure state.
Donna- Think about it. Fannie and Freddie own more mortgage backed securities than any other company. They make deals with the lenders that they will buy up all the toxic securities and get a blank check from the Treasury who gets their money printed by the FED reserve ( not a government body) to keep afloat. Any other company would be belly up with those same business practices. The stock prices of Freddie are going down, down, down. Some predict the low will be 50 cents. So you see how they care about their investors, pension holders, etc. By the end of this year Freddie and Fannie should own like 97% of all mortgages. That is one scary scenario.
Then here comes the kicker- the part that people don't see-
Fannie has now become the largest land owner in the US and the largest land lord!
They rolled out this plan to lease out the foreclosed on homes to the homeowners after the homeowner loses their house- but of course, they still will have to qualify for the rental. So now who do they pay their rental payment too? Fannie? Hmmm, sounds like an experiment that was tried somewhere else that failed miserably. When our property rights start to be destroyed as they have been and worse, that is not a good thing for the rest of us either.
Many times we don't pay any mind to things that don't directly affect us however that same mentality is what led Germany down an unspeakable path. We must pay attention to things that will effect our neighbors because one day it could be us.
William- Get online and find out what is going on in your legislature. This is huge and yes, it will impact the rest of the states with sense. You have to nip this in the butt before it starts a fire.
Katrina, thanks for the information. I'm going to research but if you find the sponser let us know.
I am in a non-judicial estate, and I have seen banks foreclose in 45 days. It doesn't happen at this time, but before there were many foreclosures like now, the only way to stop the foreclosure was to sell it, or file for bankrupcy. I am sure, as soon as the market goes back to normal, we will see this again. Just think, you are late on your payment once and the bank has the right to foreclose, and they can do it in 45 days or less.
Fight this all you can.
Ted- We will send this to all the news people we can to try to get someone to help us find out their secret sponsor. This person's political life is toast.
welll I did not know that it was easier to get short sales done in states like florida vs. Calif. where we are non-judicial state
Yikes, thanks for highlighting this Katerina. Things like this have a way of 'spreading' to other states also.
Greater Mortgage- Oh yes, big difference. Here you can hire an attorney or you can rep yourself and get a stay for months to get the short sale done. Also, you can postpone the foreclosure auction by knowing the right arguments to offer up in defense from the plaintiff. This is why we can close 99% of our short sales listings. The non judicial process really hampers agents ability to get the short sales done as long as the banks take to do them.Katerina
If you've never watched the 3 hour documentary "The Money Masters," try googling it and having a watch. I can't remember a banker ever issuing "freedom" to a nation or "help" to anyone but their own bottom line.
"The borrower is SERVANT to the lender."
Tere- That is exactly what we don't want. Imagine just losing your job for a couple of months but you know you are going to be able to catch up. Then you are foreclosed on. Now, in this market they may not foreclose that fast but in an upswing of values- you bet there would not be any leeway! Here a judge would give you time to make your payments up.
The banksters keep getting away with what they're doing because the politicians do their bidding. That's why VOTING is so important. And why INFORMED VOTING is paramount. Labels are unimportant. Character is all that matters. And character means finding out why a candidate is running. Is it to get rich? Is it to have power? Is it to foist on others their own beliefs or ideas? Or is it to serve the people and the people's interests?
The opening words to the constitution are We the People, not We the Corporations.
Okay, I'm getting carried away here. Stop me before I say something I'll regret.
Homeowners have already lost their Judicial rights here on the LEFT COAST. It's just a matter of time before they take yours too.
Judy- I agree. George Washington did not want to be President. He then would only serve 2 terms. He then went back home to his farm. He did not want to be a king yet most people wanted him to be a king. He is an amazing example of serving because the people wanted him to, not for his own glory.
When Big Biz and Big Gov't got so cozy, ( think it was Rockefeller who made the first deal to do that in New York a long time ago) that was the beginning of the end of capitalism in our county. We don't have free markets, we have manipulated markets. We don't have capitalism, we have corporate and Fed Reserve Fascism. People need to realize and study the difference. People who blame free markets and capitalism have not one idea of that that means because during most of their lifetimes, they have never had the real free markets.
Yes, I will stop now too. ;)
Hi Katerina -- I'm not shocked at all by banks. After reading about stop-loss agreements and sundry other topics all things banking, it is very disheartening when the little guy gets screwed at every turn.
Katerina, Banksters trying to pull the wool over our eyes with slick bill Titles..."....consumer protection...." Isn't that comical. Consumers being protected? Says who?! As homeowners, let's just give up all our rights, let's just give up all our monies too while we're at...let's just spread it around...Oh my this is really frightening! I'm going to read your links further and reblog too. Thanks for making this a headline Katerina!
Katerina, I'm re-blogging this, talking about it at our sales meeting, and with our NEFAR caravan. This is NOT good for our state and other states are smart to watch - what happens here could jump over to their state.
Florida State Senate - Contact
Florida House of Representatives - Contact
California has non-judicial and judicial, but most everything is non-judicial.
We have to go to the banks to postpone the foreclosure date and are at their mercy.
Did I read correctly that one of the bills will allow the bank to force borrowers who are current to give the bank more money if value is lost on the homes? Is that so the bank is never upside down?
Wow! I had no idea. Hope you get this thing stopped.
I have never once believed that the banks where doing anything with the customers best interest as their top priority. Anyone who does should have his or her head checked out.
Frank, LOL! I so agree! I can not believe anyone who would actually be that naive to buy some 'consumer protection' bill sponsored by the banks! And yet, they are out there, in more ways than one.
Christine- Yes, this is so the banks would not be the ones upside down. It is a scary thought because as I stated in another comment - they are not setting this up for the down market. They are using this for the up market.
The same kind of thing happened in the recession of the 80's. The interest rates were so high no one could qualify for a decent home in CA, I was licensed in CA at that time. We did assumptions and wrap arounds. There was no due on sale clause in those days. Now look what happened. The banks did not get that high interest and we were moving real estate from one person to another. THe banks wanted more control. They sold the world on their bill of goods and now there is a due on sale clause in every mortgage.
Banksters with shady intent? Never in a Million Years... LOL!!
You know... amazingly we have Truth in Advertising laws but I don't think we have truth in bill headline law.
On another note... I know somebody with two investment properties in Georgia fully rented out... mortgage paid on time but the values have dropped to where they are worth less then the notes on them.
The Bank is giving them a certain date to either pay the difference or sell the properties... Amazing..
Our state is a 99% Non-Judicial state and yes.. if the bank does not want to approve that short sale.. they can and will just snatch it unless the owner stalls it by filing BK or a frivolous suit. Right now.. our short sale approval rate for our city as a whole is less then 50%.
Good for you in trying to find out who that secret sponsor is... A politician that will not put their name on a proposed bill is one that is getting paid off...
I agree with you 100%! I sent an email to my Florida Representative, Mackenson "Mack" Bernard urging him to vote NO on this bill. And here's the reason...
Non-judicial foreclosures are held in states that are in TRUST DEED states such as Georgia, Nevada, and California. When a homeowner is foreclosed under he deed of trust they usually have 90 days to vacate.
However, Florida is a MORTGAGE state. Under the terms of the mortgage, the homeowner has the right to a judicial foreclosure through the court system. If the Florida legislature passes this 90 day foreclosure bill, they are going against the terms of the mortgage the homeowner signed. And if our state representatives really want this they should change the law - NOT add a bill to existing laws.
By the way, I wonder if the state really wants this or are they being pressured by the banks????? Hmmmmmmm.
Hi Katerina, Banks and politicians - what a dangerous combination ! Thanks for the research !
Discussion with husband: God is going to judge the banks.
Katerina,
Interesting reading even though it's about Florida banking business. Banks are largely behind this meltdown as it is and they are still shamelessly looking for additional advantages to cause even more trouble later on. Bizarre.
Banksters is the right word. They are always out to get you.
Paul- Comment #57 This is exactly what we are talking about and why this must be stopped even for nonhomesteaded properties. Many non homesteads are just regular folks who have purchased one or two investment properties to use towards their retirement or college for the kids. These folks don't have gobs of money sitting around to give to their lenders on demand. This is exactly what we are trying to warn the people of Florida about. Katerina
Unbelieveable, or rather, sadly it is believeable how the system can be worked.
Thanks Katarina, tons of information. I need to reread to digest all of it. Its so great we have our own personal AR short sale expert.