This is about as outraged I’ve seen a straight news article get about the foreclosure crisis, with particular scorn reserved for Bank of America.
Dirma Rodriguez had five minutes to gather her things and vacate the West Adams house she and her severely disabled daughter had lived in for more than 25 years.
As a property manager changed the locks, Rodriguez fluttered back and forth from the yard — where a pile of stuff lay by the kitchen stove — to her car, where her daughter, Ingrid Ortiz, sat screaming and crying [...]
I came upon Rodriguez’s story through Occupy Fights Foreclosure, the latest offshoot of the 99% movement. Occupy interceded to stop her eviction March 26, and it just may have saved her home for good. Bank of America said last week it is considering a loan modification that would return the home to Rodriguez and her family.
But how did it come to this? Bank of America took a $45-billion bailout from taxpayers when it got into financial trouble. Why couldn’t the bank have shown Rodriguez — a widow whose life was already a trial — the same courtesy when she got squeezed?
It’s just so rare that you see the morality of this issue put in such clear terms. “Banks got bailed out, we got left out” is a familiar phrase at rallies, but not typically in major newspapers. I guess throwing a woman with a severe case of cerebral palsy out of her home will do that.
The details are familiar. Bank of America’s servicing arm had the homeowner in a trial modification for 13 months, but they pursued foreclosure at the same time, and they eventually just sold the house out from under her, at a significant loss, rather than working out a payment plan for a borrower who had paid the mortgage faithfully for 20 years. BofA disputes the claim, but the author, Gale Holland, rightly says with the appropriate amount of skepticism that the public record shows that banks lie about foreclosures and commit them in an illegal fashion as a matter of practice. And then there’s this part, where Holland almost jumps out of the newspaper:
Bank of America was the only lender that joined a 2009, $1.1-million city pilot program to help homeowners in the North San Fernando Valley obtain loan modifications. But as of February, the bank could find no “eligible borrowers,” city staff reported to the City Council.
Really? REALLY? There’s not a single Bank of America borrower in North Hollywood or Sun Valley deserving of a break?
That’s just a function of creating foreclosure mitigation programs that put all the discretion on the lenders. They act in their interest, not the public interest.
When you have the head of the IMF, Christine Lagarde, urging debt writedowns as a means to revive the economy, you know that it’s one of the few avenues left to recovery. “U.S. households have to be able to unload a bit,” Lagarde said. But if you don’t mandate that, if you don’t demand that, you’re going to get the same performance that we’ve seen. Homeowners will continue to struggle, foreclosures will stay at crisis levels, and banks will continue to book large profits.




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Do you think this will help at all, David? Or is it just another way to get not far and not fast?
U.S. tests rare legal path in financial crisis cases LINK.
That picture of BoA….it’s a monolith to money.
I liked the obelisks better
This is like loan sharks loaning gamblers money so they can gamble at crooked gambling. But BOA has Obama on their side so where are people suppose to turn?
BOA has been known to react to a media stink in the past. They really can’t stand bad press, as long as it’s loud and long enough. So maybe something will be discovered to help this unfortunate customer.
It’s appalling business is conducted this way.
Banks can’t keep booking large profits if they keep foreclosing on homes when they are selling those homes at a loss and the real estate market does not get better. The banks sold those home loans at pre Banking crisis levels.
They are now selling foreclosed homes at current levels the banks profits are fiction.
Whats the word on all the Home loans the Fed bought from the banks and how much of that debt is being repaid?
Homes for Disabled People, Veterans, Women with kids should be immune to foreclosure and if BOA keeps foreclosing on them they very well might create the kind of public outrage that stops those foreclosures.
Bain Capital is a hedgefund most hedgefunds bought Home loan debt from the banks in exchange for bank financing and they got $19 and more for every $1 of collateral for that.
How much home loan debt if any does Bain and Mitt hold? Is this why Mitt won’t help home owners?
Will Mitt bailout the banks to save Bain? Would Bain be profitable at all without a 19 to 1 or more access to financing to buy real assets like Clear Channel and Home Depot?
If the banks have to write down home loans then the banks have to ask Bain like they asked Enron for more collateral that could strip Bain of all its assets.
Anyone can get rich with $19 or more financing for every $1 of collateral the question is did Bain really make investments that could pay off these loans in case something like a bank crisis went wrong?
The answer is very doubtful. We need access to Bain’s asset records.
http://www.moneyteachers.org/Mitt+Romney+Collapse+Mormon+Inc.html
Hedge funds have strange accounting rules Enron type accounting rules but even with these rules I don’t think Mitt is worth what he claims.
My guess is home loans are killing him and the Corporate Wing of the GOP wants a President they know will raid SS and Medicare more than Obama would to bail out the banks again.
Are Sankaty High Yield Asset Investors Ltd. and Sankaty High Yield Asset Investors Ltd. Enron type shell companies that hide Bain and Mitt’s debt? I need help here this level of high finance is barely understandable to me let alone that I barely know where to look for answers.
No matter, Dave. The Kentucky wildcats had another great recruiting class, and that pimple on Kim Kardashian’s ass cleared up nicely. All is well.
Oh; Obama’s having a good trip to Colombia…except, some Secret Service guys got into a little racy entertainment while down there.
Savvy businessmen.
http://www.msnbc.msn.com/id/45900038/ns/business-us_business/t/romneys-steel-skeleton-bain-closet/
Mitt’s Business model borrow money from banks by buying home loan debt from banks at unrealistically high prices kick out handicapped families, Vets moms with kids if they can’t pay or sell their homes at a price to cover the debt.
This is a fair charge Mitt’s Bain Capital now owns their home loans the banks just service the loans and do the actual work of kicking people out of their homes.
Then Mitt and Bain buy a company underfund the pension they get us tax payers to pay for it then they close the plant and make a profit.
Mitt then claims he is rich and we should elect him President because he is so successful. Why not just elect a fat successful Tape Worm parasite as President?
That is after all Mitt’s business model. America will die as animals with parasites die either from Mitt eating us all or America being weakened by a parasite will find out that its not strong enough anymore to face a crisis.
I expect that Mitt will bailout the banks if elected because a writedown of Home loan debt by the banks would cause Mitt to lose money.
When Ann claims she understands what moms go through we should ask if she ever faced being homeless.
We should ask how can she live with all her money knowing that its bought on the back of Mom’s getting evicted from their homes?
Of Handicapped People and Vets being evicted from their homes? Bank of America does not own these homes they evict people from hedge funds like Bain do BOA just services the loans for Bain and evicts people.
Ann claims she understands what its like to raise children but its hard to believe that the wife of the son of the CEO of AMC did not have servants to help, or ever had to worry about making ends meet.
Now that her kids are grown the family money to provide for her kids comes from making other Moms homeless.
Just how can she look at herself in the mirror?
What’s more, a federal government insurance agency had to pony up $44 million to bail out the company’s underfunded pension plan. Nevertheless, Bain profited on the deal, receiving $12 million on its $8 million initial investment and at least $4.5 million in consulting fees.
http://www.msnbc.msn.com/id/45900038/ns/business-us_business/t/romneys-steel-skeleton-bain-closet/
Mitt as the companies new owner was responsible for funding the pension but he underfunded it and made $12 million dollars leaving tax payers a $44 million dollar bill. Now he wants to do the same to SS and Medicare while giving himself a tax break. And if Mitt has to kick some Mom’s and Vets out on the street to do it he will.
I submit this as an ad for Obama’s reelection campaign.
Good questions.
Good comments.
I wld only add that Obama thinks the
banksters are ‘savvy businessmen’ so we’re (still) screwed…
But if you don’t re-elect Obama then Romney will refuse to prosecute the banks for their blatant fraud and he will allow the banks to foreclose on a child with cerebal palsy while they lie to the child’s mother!
Think of the children! Re-elect Obama!
Give it up. Obama owns this tragedy… and the myriad that are like it.
Indeed. I don’t know how anyone
can not see that at this point.
I think as everyone else here on FDL does it doesn’t matter more than 5% whether Obama or Romney gets in. The way Obama has moved the country to the right, without any regard (except for some rhetoric) for anything but trying to split the difference with the GOP. I am not giving up on the country, but nothing good will now come from any of the three branches of government for the foreseeable future. It’s us or nobody and it’s all local.
As opposed to Men with kids – disabled or otherwise …
They’re fucked, I guess …
People who chose not to fight in the empire’s wars of occupation would be fucked too.
How can Ann look herself in the mirror? Easy! It tells her she’s the fairest of them all.
DDay, excellent story. [Sad, tragic, but thank you for covering.]
Any idea what sort of coverage this is getting in the Lame Stream Media?
Maybe this is why the government never seized the bank. They didn’t want to be the one foreclosing on homes.
Banks can keep booking large profits off of foreclosed homes even if they sell those homes at a loss and even if the real estate market does not get better.
You see foreclosures are very profitable. Banks will not admit it or else the whole country would go into an uproar for their heads. Why do you think there is so much robosigning and other fraud in foreclosures? It’s because it’s profitable.
The get credit-default swap money when the homeowner defaults, they get paid when the homeowner goes 90 days past due. They get paid 80-90 cents on the dollar for the unpaid loan by the government. They get mortgage insurance. The banks are making money hand over fist on foreclosures.
And now, BofA is the first bank to announce it will be selling off the foreclosed homes on their books to investors to turn them into rental properties. So, they are going to make even more money off these homes.
Don’t be fooled into believing the banks lies…they are making record profits from this fraud.