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I’ve been covering the foreclosure crisis for a long time, and for most of that period, it was a lonely backwater. It’s harder than you would think to get the traditional media interested in the systematic theft of homes. But at least for one day, the nation’s attention may move to this sad circumstance.
In dozens of cities across the country today, members of the Occupy movement will participate in a national day of action known as Occupy Our Homes, with rallies, street actions, and mainly the defense of properties facing foreclosure. In New York City, the group Organizing for Occupation is leading the way. We’ve seen several isolated incidents of protesters occupying foreclosed homes, to save the owners of the house from eviction. This is the first coordinated day of action.
As I’ve been saying, this is a natural evolution of the Occupy movement. The history of America suggests that protests involving occupations of public space do not last very long before police take them out, often with force. The history of America also suggests that the movements evolve and grow, shifting to a new set of tactics with more foot soldiers.
Given a political system vulnerable to challenge and strong internal organization the main challenge confronting insurgents is a preeminently tactical one. Lacking institutionalized power, challengers must devise protest techniques that offset their powerlessness. This is referred to as a process of tactical innovation. Such innovations, however, only temporarily afford challengers increased bargaining leverage. In chess-like fashion, movement opponents can be expected…to neutralize the new tactic, thereby reinstituting the power disparty…
As these figures show, peaks in movement activity tend to correspond to the introduction and spread of new protest techniques. The pattern is a consistent one. The pace of insurgency jumps sharply following the introduction of a new tactical form, remains high for a period of time, and then begins to decline until another tactical innovation sets the pattern in motion again.
Meanwhile, as this dynamic of power and resistance plays out, the power elite feel more and more pressure to calm the attack through political means, by listening to and acting on the demands of the protest movement. We saw this in the Progressive Era, during the New Deal and in the civil rights movement.
In this case, identifying an occupation movement with the foreclosure crisis makes perfect sense. Wall Street quite literally sustains itself through illegal foreclosures at this point. This is how they have decided to dispose of the toxic waste in the system, burdening the borrower with all the losses caused by fraud in the origination and securitization markets.
The thinking goes something like this: Our largest banks are too big to fail, and since we lack the will or the motivation to break them up or regulate them we must protect them at all costs. We’ve propped them up with TARP, quantitative easing, and $7.7 trillion in secret Federal Reserve loans, but they’re still shaky as hell. If we prosecute any of their executives, their stock prices will fall and they’ll collapse again. And they’ll take the entire economic system with them [...]
Resisting illegal foreclosures is a good first step. It brings attention to Wall Street’s criminality, venality, and plain old inhumanity toward the people they call their”customers” – but treat like serfs [...]
What about the millions of people who have suffered because of the banks’ predatory mortgage lending but aren’t behind in payments or in the foreclosure process? We need to re-open the debate about the fairness of forcing any underwater homeowners to pay underwater principal on homes that their banks knew, or should have known, were going to decrease in value. After all, the same conglomeration of banks and corporate media that demonize homeowners as “greedy” and “irresponsible” spent most of the last twenty years convincing people that real estate was a sure-fire investment.
Resistance to illegal foreclosures should be a staple of this movement. It is no different than a citizen’s arrest, blowing the whistle on the theft of a home. Banks who cannot prove ownership of a property force people onto the street so they can steal the home and sell it for money to which they should not be entitled. The possibilities for activism around that are endless. And we will see a lot of that today, and hopefully in the future.
Background: 60 Minutes Shines Spotlight on Persistent Mortgage Fraud
Rachel Maddow segment: Occupy defends the homefront
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Meanwhile, Portland’s not only moving its money from foreclosure-happy big banks to local banks, it’s taking dead aim at the concept of corporate personhood:
http://blog.oregonlive.com/portlandcityhall/2011/12/portland_nears_a_move_your_mon.html
In Texas it’s called “adverse possession.”
I hear (on the news) that’s a pretty big problem in the Metroplex. Not so much here in Houston.
Can you confirm or deny???
Unlike most of the right’s proposals to end the economic crisis, this goes to the causes of it. This cuts through a lot of the smokescreen the PTB are putting up, and is going to reverberate with the public itself.
Great report about the need for evolution of the movement. The energy must be directed into productive channels or else it will dissipate. Focusing the energy on fighting foreclosure fraud is a brilliant move.
as BAC says internally, this event “could impact our industry.” Here are the specific warnings to BAC “field services” agents: i) Your safety is our primary concern, so do not engage with the protesters; ii) While in neighborhoods, please take notice of vacant BAC Field Services managed homes and ensure they are secured; iii) Remind all parties of the bank’s media policy and report any media incidents. Aside from the superficial implications, what is more important is that the big banks are showing precisely what the weakest links in the system are, and what makes them the most nervous: it is not protesters living in tents in a major metropolitan city: it is protesters disrupting the lifeblood of the broken banking system – the home selling/repossession pathway. Expect many more such protests now that Bank of America has tipped its hand.
http://www.zerohedge.com/
Need to get the word out nationwide for anyone facing a pending foreclosure to contact the local Occupy members, exchanging contact information. When the action is to occur, a phone chain can be activated to assemble an eviction resistance team.
Excellent, excellent points, David! (This is why I so admire you!)
“What about the millions of people who have suffered because of the banks’ predatory mortgage lending but aren’t behind in payments or in the foreclosure process?”
The foreclosure issue, which you rightly point out is being doled out bit by bit to the people by the banks in an effort to divest themselves of toxic assets, is truly a 99% issue. For, not only is it increasing the homeless ranks every minute of every day, and forcing others to live well beneath safety levels (we just had horrificly cold temperatures hit – never have had this happen so early in the season) as they cope with the foreclosure threat – but also, it is renters who have to face unconscionably high rental fees from landlords who are themselves caught in this toxic bind, and it is folk who own their houses ‘free and clear’ who face rising property taxes because the banks got away without paying their fees to the local economies which should have happened when these transactions were being MERSed. Everyone is suffering, except the banks who are being allowed to keep on keeping on, scot free, no questions asked.
They are the ones who should be out on the streets in tents!
This is a beautiful idea for the next stage of Occupy, and I can see that it will spread so fast – how will Kevin keep up?
Extreme Makeover Occupy Edition!
Another aspect I had not considered is the plight of condo owners. A friend just told me the condo her sister owns has had multiple foreclosures. Now, when the condo needs a new roof, the total bill is divided by some number minus 6 or 8 (or whatever the foreclosed number is). So remaining owners find themselves burdened with increased costs that may, eventually, force them to “join the ranks” of the foreclosed; seems the bank-owners are somehow exempt from sharing the burden???
$315 million? You’re kidding.
” Bank of America has agreed to pay $315 million to settle claims by investors that they were misled about mortgage-backed investments sold by its Merrill Lynch unit.
. . .
“The settlement represents another attempt by Charlotte, N.C.-based Bank of America (BAC) to put its legal issues behind it. Just in the first half of the year, the bank put up $12.7 billion to settle similar claims from different groups of investors.”
LINK.
OT check out livestream occupy greece. It’s getting dicey.
In addition to all the points above, FDL has consistently linked to articles and interviews pointing to the fact that, even more evidently than our political system, the timehonored system of buying and selling homes in this country is BROKEN. There could not be a more pressing need than the need to remake this system, since it is always homebuilding which drives the economy and that has stagnated because only the 1% can now afford to start from scratch and be certain that what they are building to own has title and is not in any way suspect as to who owns the property since the transactions for most homes have a fraudulent or nonexistent paper trail. It’s just like buying a used car and finding out that back in the day the car was stolen, so you are out of pocket and out of luck because you don’t really own it, even though you have forked out thousands of dollars to buy it.
Lots of new home owners, purchasing the downvalued forclosed properties, have built their homes upon the sand shovelled in place by the banks. The paper trail leads right back to MERS, and that’s not a solid foundation. (I bought a house built on sand once – literally. Not my most shining moment.)
I’m using that comment if ya don’t mind, to highlight Mr. Dayen’s article I’m posting to Occupy Sacto . . . my initial post is up, I’ll embed your comment with your byline in a comment below my post. Your comment is essential reading for Occupy Sac.
Outstanding read Mr. Dayen, and great comments and links folks, thanks.
Regions is taking a stance locally of not agreeing to short sales. They’d rather foreclose on the property, thinking they can get a better price through auctioning the property off. Wonder how long it will take them to realize that plan’s a bust.
Each tactic, intentionally or not, raises fundamental political and economic issues.
Whether intended or not, the encampments raised the issue: Who exactly is free to use public space? The public or only those people (such as film crews) designated by the state-created corporation (for those places that are “incorporated”) or the administrative entity of the state (for those places that are outside the incorporated places)? The 1% can put tents on public space at will; the 99% not so much because there are permit fees.
With the arrival of the homeless to the encampments and the grappling that the general assemblies did with the issue, there was a second fundamental issue raised. What exactly does our society expect homeless people to do besides die quickly and out of site? Over and over, the arrival of homeless people became the excuse for eviction.
This mortgage action raises the question, “Who exactly is required to follow the rule of law?” Apparently, neither banks nor forclosure mills nor eviction agents are. Fraud, burglary, and theft are rampant in the mortgage industry. But sheriffs differentially act only to evict homeowners.
The next issue has already surface in Chapel Hill and other places. There are abandoned commercial and industrial buildings all over America sitting idle and decaying. Schumpeterian economics says that they long ago would have been put to use or destroyed. Whether because of disagreements among heirs or their use to get tax losses, they remain idle. But let someone occupy them and begin to put them to productive use and the paramilitary policing comes down like a ton of bricks. This is the next step in getting people back to work. Taking assets starting production and rebuilding the economy through direct action. It goes straight to the issue that there are idle assets, idle workers, and lots of work that needs to be done. And the assumption that one needs title of ownership (a legal fiction) and money (an economic fiction) to do something is the only thing standing in the way of action.
And the tactic after that one is the emergence of local scrips on a massive basis. And intermediary markets for coverting various local scrips into various currencies. In most local scrip programs, in one way or another a bank is the intermediary right now. The fundamental issue that raises is who controls money and how does that control not result in debasement of the commodity used a money.
Very good point about raising the question, Tarheel. I can already foresee that the question of our derelict voting system will gain new attention as we approach Election Day – can remember how aghast we were way back when as the Diebold situation was completely ignored by msm whilst getting very good coverage from hardworking bloggers all around the country – the germination of Occupiers doing great investigative work that was completely under the radar. These important issues of erosion of our commons get spotlighted so effectively when the Occupies take them on – they are our new medium, our spokespersons effectively and properly “incorporated” – that is, embodied.
And as we face the important question with respect to our homes, let us not forget that the ptb are presently engaged in determinations to undermine Social Security, in the guise of a payroll tax cut. One more system going down the tube.
Is OWS a sham ?
I just read KG’s article from yesterday about OWS participation in the upcoming event in Washington that turns out to be sponsored by Corrupt Democratic Party supporters… and that those supporters have tried desperately to HIDE their sponsorship of this event.
Is OWS ringers for the Corrupt Democratic Party half of our totally corrupt Democratic and totally corrupt Republican government?
Is this an elaborate show meant to PACIFY the American people and make it appear as though someone is standing up our corrupt government… when in fact their purpose is to protect the corrupt political establishment?
I have been a big supporter of OWS… were we all betrayed from the beginning?
I am a lifelong liberal/progressive and an ex-Democrat who re-registered as an Independent. Have we been PLAYED again?
A lot of courts blow by statutory requirements in foreclosures and evictions because no one is there representing defendants and few other than plaintiffs’ attorneys ever show up. If the Occupy Movement wants to do something that is very long, boring and out of the limelight, but also very meaningful, they should go observe these hearings. I DO NOT MEAN protesting courtrooms or causing a scene. That will only get you put out of court. I do mean going, dressed appropriately, and sitting quietly in court, noting whether the plaintiff is required to prove proper service, ownership of the note and other statutory requirements. You might also want to note if the judges are chummy with plaintiffs’ counsel as that sometimes happens when they are the only ones in court together all day long. Sometimes it’s casual harmless chummy-ness, but it can get bad. I was once in a suburban eviction courtroom where the judge’s clerk would not allow anyone not a plaintiff’s attorney to even look at the form orders that were supposed to be public documents for everyone to look at or take and I’ve seen judges and plaintiffs’ counsel yuck it up over defendants who were merely trying to defend their cases. It can get bad, particularly in rural or suburban courts, because no one is there to see or complain about it. If people regularly went to observe, even if they stayed quiet while in court as they should, perhaps some of this would change.
The answer to that is No. Before today I couldn’t answer that. But Occupy groups of constituents are going to their Democratic and Republican representatives and trying to talk to the Congresscritter himself/herself. And they are livestreaming the encounter with Congressional staff. One constituent from Occupy KC sat down and said he’d just wait until the Member of Congress could see him. The staff immediately called Capitol Police, who arrested him. More as the days go on. It looks like the Occupy movement is co-opting this for the people, instead of vice versa.
One court here in Illinois blows by statutory requirements even when the homeowner has an attorney representing them. That’s in addition to accepting campaign contributions from the same law firms who represent the banks.
The whole thing is a Giant SCAM… put on the the Corrupt Democratic Party.
People have been permanently INJURED… seriously INJURED… and put their lives on the line for a Corrupt Democratic political party ELECTION sham.
This is SICK.
The corrupt Democratic party USED people and put thier lives at risk.
This is the most demonic poltical party scheme ever devised… to protect the entrenched political partys and the 1%. This sham group does not represent the American people… they work for and represent a corrupt political party and the 1%.