Andrew Jensen
Posts:68
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| 07/23/2008 1:02 PM |
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| Not the one he wears, him suing to prevent foreclosures. What good could it do? |
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Andrew Jensen
Posts:68
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| 07/23/2008 1:02 PM |
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| Just to get on board |
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stella
Posts:360
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| 07/23/2008 1:13 PM |
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| Seems like a long shot. Also I wonder if the foreclosures are going to start slowing down anyway. |
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Andrew Jensen
Posts:68
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| 07/23/2008 1:38 PM |
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| I read up a little. It sounds like a 17200 suit... there's per violation money in those to the agency who wins. BofA will probably be the only one left after wamu (wachovia will be bought out) and HSBC tank,whcih is why he sued them, I'm guessing. |
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rwsinmissionhills
Posts:311
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| 07/23/2008 1:57 PM |
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Posted By Andrew Jensen on 07/23/2008 1:38 PM
I read up a little. It sounds like a 17200 suit... there's per violation money in those to the agency who wins. BofA will probably be the only one left after wamu (wachovia will be bought out) and HSBC tank,whcih is why he sued them, I'm guessing.
What is happening? Can you give us a background on this? thanks. |
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gcurtis1
Posts:8
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| 07/23/2008 3:55 PM |
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This is the only thing I can find on this story and its from Calculated Risk --
SAN DIEGO (Reuters) - San Diego City Attorney Michael Aguirre said on Wednesday he had filed a lawsuit against Bank of America Corp (NYSE:BAC - News) and its Countrywide unit to prevent the mortgage lenders from foreclosing on homes in his city, which he aims to make a "foreclosure sanctuary."
Aguirre said he plans to file similar lawsuits against Washington Mutual Inc (NYSE:WM - News), Wells Fargo & Co (NYSE:WFC - News) and Wachovia Corp (NYSE:WB - News) in an effort to make the lenders negotiate with mortgage borrowers facing foreclosure.
"We would like to see San Diego become a foreclosure sanctuary," Aguirre said.
"We haven't seen the lawsuit and can't comment," said Bank of America spokeswoman Shirley Norton.
(Reporting by Marty Graham in San Diego; Writing by Jim Christie; editing by Mark Porter and Carol Bishopric)
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rwsinmissionhills
Posts:311
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| 07/23/2008 4:04 PM |
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Posted By gcurtis1 on 07/23/2008 3:55 PM
This is the only thing I can find on this story and its from Calculated Risk --
SAN DIEGO (Reuters) - San Diego City Attorney Michael Aguirre said on Wednesday he had filed a lawsuit against Bank of America Corp (NYSE:BAC - News) and its Countrywide unit to prevent the mortgage lenders from foreclosing on homes in his city, which he aims to make a "foreclosure sanctuary."
Aguirre said he plans to file similar lawsuits against Washington Mutual Inc (NYSE:WM - News), Wells Fargo & Co (NYSE:WFC - News) and Wachovia Corp (NYSE:WB - News) in an effort to make the lenders negotiate with mortgage borrowers facing foreclosure.
"We would like to see San Diego become a foreclosure sanctuary," Aguirre said.
"We haven't seen the lawsuit and can't comment," said Bank of America spokeswoman Shirley Norton.
(Reporting by Marty Graham in San Diego; Writing by Jim Christie; editing by Mark Porter and Carol Bishopric)
Thanks. This is interesting. Anyone know if there is a legal precedent? (not that anything inconvenient like precedent will stop Aguirre). Does Aguirre have a legal leg to stand on (it's not like the city of SD is come kind of huge sprawling church--you know as in back in the middle ages or thereabouts when people could take refuge in a house of worship of some sort to avoid the sword or firing squad or the stake...hmmm. what's this guy up to now? |
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Andrew Jensen
Posts:68
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| 07/23/2008 4:18 PM |
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| Take a look at B&P 17200. google "ca law" check the b&P code box & type in 17200 at the search box. |
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gcurtis1
Posts:8
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| 07/23/2008 4:36 PM |
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From SignonSanDiego and there is a link to view the lawsuit on the site.
By Lori Weisberg
UNION-TRIBUNE STAFF WRITER
1:43 p.m. July 23, 2008
San Diego City Attorney Mike Aguirre is taking on the lending industry, filing suit Wednesday against Countrywide Financial, which he accuses of engaging in unlawful and fraudulent predatory lending that victimized numerous San Diego home buyers.
His suit, which follows similar litigation filed against Calabasas-based Countrywide last month by State Attorney General Jerry Brown, seeks to halt foreclosures that are tied to risky, adjustable-rate loans made by the lender. It also seeks civil penalties of $2,500 per violation against each of the named defendants.
Also targeted in the suit is Bank of America, which recently purchased Countrywide.
In a press conference held in front of a vacant, partially burnt Skyline home that has recently been taken over by Countrywide, Aguirre said he hopes his suit will be a way to bring other lenders together to work out settlements with borrowers who are about to lose their homes or who already have been foreclosed on.
“We are asking that any additional foreclosures be stopped and that the parties come together and work out a reasonable alternative based on the values of these properties today so we can stop the spread of this foreclosure disease,” said Aguirre, flanked by Assemblywoman Lori Saldana, San Diego police officers and other members of his office. “We want San Diego to be a foreclosure sanctuary.”
While Aguirre said he also plans litigation against other lenders, including Washington Mutual, Wells Fargo and Wachovia Corp., he said his main goal is to resolve the issue of growing foreclosures “in an orderly way.”
Foreclosures in San Diego County have been accelerating at a rapid pace as more and more borrowers have been unable to make payments on no-down, adjustable-rate mortgages that have re-set with much higher interest rates.
In the second quarter of 2008, foreclosures increased 31 percent over the previous quarter and 180 percent over the second quarter of 2007.
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SD teacher
Posts:2
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| 07/23/2008 4:36 PM |
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Here's more info -
http://voiceofsandiego.org/articles/2008/07/23/this_just_in/873aguirrebofa072308.txt
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Betty
Posts:147
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| 07/23/2008 4:36 PM |
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| It's an election year - enough said! |
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rwsinmissionhills
Posts:311
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| 07/23/2008 4:46 PM |
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Posted By Betty on 07/23/2008 4:36 PM
It's an election year - enough said!
Oh. yeah. I forgot. |
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jakob
Posts:473
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| 07/23/2008 5:20 PM |
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Yay, now we don't have to pay our mortgages and the banks can't do anything! What a joke.
Guess how many lenders will offer loans if this stands: ZERO. |
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tpc
Posts:498
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| 07/23/2008 5:37 PM |
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| Poor Mike wasn't getting enough attention. He needs to hire a bugler to follow him around and some cheerleaders yelling "Mikey, mikey, hes our man, if mikey can sue em nobody can. |
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jackjack
Posts:155
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| 07/23/2008 5:39 PM |
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| This is very devastating to hear. Does he think that this will help out with the affordability of homes in San Diego County? This will only keep prices up. This rewards financially irresponsible and otherwise idiotic borrowers and it lets the crooked mortgage brokers off the hook. How can we stop this? This is absolutely the wrong way to go about it. Foreclosure sanctuary, my ass. |
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jackjack
Posts:155
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| 07/23/2008 5:54 PM |
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| Can someone post a link to the actual court document filed (i.e., the complaint)? Thanks, |
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rwsinmissionhills
Posts:311
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| 07/23/2008 6:12 PM |
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Wait, wait everyone...: This might not be terrible news.
Frankly, I have no idea WTF a foreclosure sanctuary means. Does anybody really know?
Secondly, helping people (or "forcing" people) to stay in their homes might not be such a bad idea.
From what I have seen (and I admit, I do not know everything...!!!) having people keep their homes might be a very good thing.
Here are some hypothetical points. Think carefully about these situations and think very carefully if this outcomes are good, not so good, or neutral:
Say someone bought a house at peak in 2004-2006 with no money down. Duh. If they still own the house they are probably upside down be a significant amount. If the lenders foreclose, these people might be able to stay in their houses, RENT FREE MIND YOU, for months, before someone finally kicks them out. So: All this time time they are in the process of foreclosure, they are not making payments or paying taxes. Essentially, these people can ride the wave and live for months and months perhaps for free.
When they "finally" get the boot, it could be months later. If these people were smart, they would have saved the money they would have paid to the bank to use as a downpayment later. (remember: all you dependable people during that same time were paying your rent, taxes and your mortgage....Maybe not having much left over to save. )
If someone gets foreclosed upon, it is not the end of the world. (for better or for worse). If you have a good plan and know what you are doing, even with a foreclosure, you could be deemed credit worthy -- worthy enough to get a mortgage in just a few years (as little as 3-4 years). Wow. what luck. That time frame just might co-incide with the bottom of the market.
Let's review: You get to duck out of your ill-advised, overpriced commitment. Live rent free for numerous months while the dust settles. Tell your sob story. Get sympathy. Get some provisional credit. Start rebuilding your credit. By the time the housing market hits bottom, you can show you have learned your lesson and can be trusted again. Now you get to buy in the same neighborhood you previously lived in. But with the prices reset, you can re-purchase for 50% than you previously paid. Booo hoooo hoooo.
SO: That's what is very possible if we DON"T forestall foreclosures and/or if we don't change the system that is currently in place.
If we forestall foreclosures, we "might" (I don't know this for a fact)...We might compel people to keep the houses (and the financial OBLIGATIONS) they already have. On another thread, I have dubbed this "house arrest." Yes. They get to keep the house and be tied to the something close the ridiculous price they thought it was worth at the peak. If they really, really, really wanted that house. If it is their life: The center of their family: Let them keep it. But make sure those people pay off their obligations. I don't want to bend over backwards to help them out. I am sorry: I have my own issues to deal with. If some can sign on the dotted line, they can also commit to fulfilling their obligations. Even if it takes them longer, let them pay it all off. If someone decides the original purchase was a mistake: I'll bet you they won't make that mistake again. |
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rwsinmissionhills
Posts:311
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| 07/23/2008 6:25 PM |
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| Sorry. Typos. Me tawk pritty. |
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jackjack
Posts:155
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| 07/23/2008 6:29 PM |
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RWS, you are way off base here. You almost sound like you are an Aguirre enthusiast. What is really going to happen is this.
(1) Foreclosure Sanctuary - injunction on most (if not all soon) foreclosures.... this will lead to....
(2) Less REO inventory. REO inventory is generally lower in price than most non-bank owned property. This is because the banks want to get the REO inventory off their books, and fast....Less REO inventory will lead to...
(3) Considerably less lower-valued home sales comparables, which will cause....
(4) Home prices to REMAIN artificially high.
Think about it. What Aguirre is doing is effectively constricting supply. What makes it worse is that the supply he is constricting is the lowest priced supply around (i.e. REO supply). This will have the effect of keeping home prices high. The market will take care of this itself. It will correct, but there needs to be a shakeout. Aguirre's lawsuit is ridiculous. I'm sorry. No logic to it.
AGAIN, instead of trying to create some make-shift panacea, Aguirre should worry about preventing this meltdown from happening again. I will say it again, in order to prevent this from happening again: (1) make ridiculously stiff penalties (jail time) for people who get caught committing mortgage fraud; and (2) implement some sort of independent AUDIT system for home loans so that people do not make stupid decisions or get conned into making a stupid decision by someone who is only interested in earning his commission or yield spread at the end of the day. |
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JAP
Posts:44
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| 07/23/2008 6:32 PM |
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http://www.reuters.com/article/rbssInvestmentTrusts/idUSN2349758020080723
Some will try to do everything in their power to prop up SD houses prices... it's absolutely insane.
Aquirre is a socialist wacko. He has a typical "victim" mentality. |
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