A federal judge on Monday made the rare move to stop the foreclosure auction of an Aurora woman’s house in a case that squarely takes on the constitutionality of Colorado’s foreclosure laws.
U.S. District Judge William Martinez issued a preliminary injunction against the sale of Lisa Kay Brumfiel’s four-bedroom home, scheduled for Wednesday in Arapahoe County, until the judge can decide whether parts of state law are unfair to homeowners facing the loss of their house.
“Unfair” isn’t quite the word.
Colorado, for those who haven’t followed either the news or The Ticker, passed a nice law to “solve” the foreclosure problem for banks — they stripped the requirement that the banks actually have the mortgage documents to prove that they were the proper party to be able to foreclose.
Remember that the big issue a couple of years ago was “robosigning” — that is, document forgery. Continuing the scam is, of course, the highest and best use of “lobbying” lawmakers, and in Colorado the banksters scored big, removing even the pretense that a foreclosing actor actually owned the mortgage through documentation — even forged documentation!
Now a simple statement became enough.
So-called “financial news media” has ignored this, of course. It’s in their “best interest” too; after all, you wouldn’t be able to sell ads on a TeeVee station talking about “together we’ll go far” if the people understood that how the stagecoach “went far” was by stealing all your property.
I thought I was disgusted in the 1990s when I saw company after company issue fanciful S-1s collectively claiming the GDP of the world a few dozen times over. That was indeed quite the scam, and when it came apart everyone who believed in it lost all or most of their money. Nobody was held accountable for that in the media either; witness Cramer. He got a TV show out of it. What did you get out of his list if you bought into it just weeks before it all blew up? That’s simple: Bankruptcy.
But these guys were and are chumps. After all, we’re just talking billions there. No, the big enchilada is taking homes, the biggest asset that most Americans have, slicing and dicing that while turning it into “financial products” that the banksters can then skim off their “piece” of, taking what should be a durable consumer good and transforming it into the greatest heist of all time.
Nobody has put a stop to it, despite clear proof via admission that not only were thousands upon thousands of perjured documents filed with courts but in addition to that there is an email and other document trail that the banks knew they were screwing people as their own staff were calling these securities by such lovely and value-descriptive titles as “vomit” and “trash.”
Our local, state and federal governments have all been involved in what amounts to an organized looting operation. As people have challenged the schemes the response has been for the banksters to go to the governments and get passed even more laws making legal what would otherwise be a raw abuse of process and even outright theft.
Now there may be one tiny bit of honest judicial intervention — in Colorado.
This problem is not about, at its core, whether someone paid their mortgage or not. It is about whether a financial institution can take a debt instrument and pass it around in name only as the “footer” of a monstrous labyrinth of bogus securities and schemes from which they skim fees and costs while damning the ordinary people to bear those costs whether they are actually the proper party or not.
At its core this is about abuse of leverage and manufacturing a retroactive paper trail after the fact to cover up what were a host of improper and, perhaps, criminal activity beforehand. It is a rank violation of the IRS code, not to mention Trust Law where these “securities” are bundled and packaged, to fail to transfer into the trusts these loans in a timely manner. The tax implications alone run into the hundreds of billions of dollars and a huge part of why such “laws” were pushed and passed appears to be focused on preventing a meritorious defense from reaching into that cesspool and forcing out into the open the fact that these instruments do not in fact really exist as the requirements in the law to create them were not followed.
Now, finally, literal years after I and others started raising hell about this, there is one judge who has called “Bee Ess!” on this entire house of cards. Perhaps — just perhaps — Colorado’s “law” will be ruled an unconstitutional piece of trash intended to steal homes from citizens at literal gunpoint.
When courtrooms are used to take property without the moving party having to produce the actual documentation proving their standing what has happened is that the party filing suit has managed, through legislative fiat, to obtain the guns and personnel of government as their own “private army” which they are then abusing to commit an act that is in form, substance and function virtually indistinguishable from old-fashioned armed robbery.
We are well past the point where the judiciary should have put a stop to this crap.
Here’s hoping that Judge Martinez does so.