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"The people who cast the votes don't decide an election; the people who COUNT the votes do." -- Joseph Stalin

Thursday, November 20, 2008

How Banks Scammed Borrowers Who Trusted Them

Criminal Conspiracy: Fraud

Banks across the United States convinced Borrowers to take money that the Banks knew the Borrowers could not afford to pay back, as part of a criminal conspiracy among many in the Financial Services industry. Banks started by offering adjustable rate mortgages. Very little down, very low payments and then, a few years out - when theoretically the property would be worth much more - the monthly payments would rise dramatically. The idea was that long before then the home buyer would have sold out at a nice profit, and bought their next home.

Then they sent bank-approved appraisers out to certify the market value of your home to justify the loan being made and to convince the Borrower that they owned equity in their home that far exceeded what the Banks knew to be true. They intentionally over-inflated the so-called value of your home so that they could extend credit to you that you could not afford. Lenders, realtors, mortgage brokers, appraisers, all made out like what they truly are -- BANDITS.

The same banks who put people being into real estate loans they could not handle didn't stop there. That was only the first step. Did you know the banks also had sales "hit teams" to tempt people into taking cash advances way beyond what they could afford? They encouraged these same borrowers to take out credit lines or credit cards with very high limits, often $10,000 - $15,000, knowing full well that if ever a payment was one day late, their great introductory low rate would automatically and permanently increase to 29.99%!

Don't just take my word for it, here is proof from those that did it for the banking industry. Two insiders spill the beans:

Why did they do this? Corporate home builders got paid lavish premiums for their inventory...real estate companies and loan brokers got rich from these sales...the Wall Street banks that packaged these scam loans and sold them throughout the world made hundreds of billions of dollars...and that nutcase in the White House got to fund his wars and make billions for his cronies at Halliburton and Blackwater.

A natural outgrowth of this scam was a rash of defaulted loans and foreclosures that the Banks certainly knew would be the ultimate result. So, many Borrowers lost their entire net worth, their credit and their homes. I know of a beautiful adobe 3 bedroom, 2 bath home on the golf course that is a short walk from my house that was valued last year at $525,000. It just went at auction for $198,000. So all the home values in the neighborhood just took a big hit and all the homeowners just lost money. Think the Banks care? Hell no. They get the homes back and start all over. It's called "capitalism". I call it FRAUD.

To those Borrowers who fell victim to their scam, they pursue them relentlessly for the balance owed on their credit, and make daily telephone collection calls in a concerted attempt to force Borrowers into Bankruptcy. They want your home, and they want you out of the picture, saddled with credit that makes you ineligible for further loans from them. They have an active network of companies who specialize in assisting banks in getting the Borrowers out. Then, a network of companies specialize in handling the foreclosure and resale of the properties, with the Banks starting out with a new group of unsuspecting Borrowers and the cycle continues.

So, what did the Socialist, George Bush do? Give the Banks billions of dollars in "bailout funds". So Banks have tightened credit requirements, and are investing the money rather than making loans. What better way to say, "Screw You" to the American public? Where are Bonnie and Clyde when we need them?

By the way, what happens to those scammed borrowers? It isn't pretty: CLICK HERE


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