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The sheer number of foreclosures taking place, coupled with the fundamental, inherent lack of adequate "legal supervision" of the foreclosure process (by appropriate state and federal authorities) has allowed way too many foreclosure auctions to be conducted in a manner which is "questionable" at best; ranging from unfair and deceptive to outright illegal in nature.

The pooling of mortgages, credit swaps, derivative financing methods, and the sale of public interests in mortgages on Wall Street have obscured the actual rights of thousands of mortgagors as they face a maze of lenders, mortgagees, mortgage servicers, and/or their respective assignees, and/or their attorneys. In many cases, the deck is stacked so that it is almost impossible to fight a "defective" foreclosure; much less be able to afford to do so through the courts.

With the "foreclosure gun" held to their heads in these circumstances (i.e. being told to "pay up or get out"), most homeowners find that it is all but impossible to discuss or negotiate - even with sound intentions - a reasonable or equitable mortgage modification or other arrangement. So they simply throw in the towel.

Despite all the "help and hope rhetoric", the prospects of the banking community to make money while (a) a mortgage is in default, or (b) from the sale of a mortgage or property in the foreclosure process may be, indeed, far greater than entering into any loan modification or other arrangement that allows the homeowner to get back on his/her feet.

You would think that Congress could figure out that, if enough American families are thrown out on the streets, the "economic recovery" that's being suggested will, in fact, never happen.

- Ed Smith, Publisher
The EHS Letter Manual