Millions Of Home Mortgages Could Be Illegal

April 28th, 2011

Ocwen Financial has threatened to foreclose on an elderly West Virginia woman who lives alone and is barely surviving on Social Security. Ocwen has abused President Obama’s HAMP program by seemingly granting a reduced mortgage payment to this woman while repeatedly asking her to re-file HAMP application papers. While reviewing her mortgage agreement, I found a flaw that could make her mortgage contract, and millions of others like it around the country, illegal and unenforceable.

I believe that our current mortgage crisis has revealed an unconscionable conditioning within the millions of security agreements collateralizing mortgages. Unfortunately, I am a direct witness to such conditioning as my friend, a 66-year old West Virginia female on Social Security, is being foreclosed upon after she lost her job as a social worker. What is unconscionable in this tragic circumstance is that the security agreement for this woman’s mortgage, like millions of others, requires that she assume all of the risk in the value of the secured asset, her home.

The mortgage company assumes no risk in the value of the asset that they freely chose and freely assigned an initial value for. The mortgage company is only assuming a risk that she will actually make the scheduled payments, just as she assumes the risk that the payments she tenders will be duly recorded according to the terms of the security agreement. But only this poor woman assumes the risk that her home will retain its value.

This unconscionable inequity of risk assumption could be cured by one simple sentence in the security agreement stating that no foreclosure may proceed until and unless the principal amount of the loan has been reduced by the exact percentage the secured asset’s current market value has declined from its assigned value, new mortgage payments have been calculated and presented to the borrower and the borrower stands in default of the new payments.

Yet millions of Americans are currently being ruined because in the land of equality, only the borrowers assume risk in secured assets. These unwary borrowers are not given adequate notice that they are assuming all of the risk in the secured property because they are given no notice at all about this catastrophic risk they are innocently assuming.

This situation would be unconscionably unfair to millions of borrowers even if the value of their property had not been destroyed by the Federal government. The fact that the public record clearly demonstrates that public policy created, then exploded, the bubble in the housing market is outrageous.

Yet the government assumes no responsibility for the catastrophic destruction of housing values. There is no remedy for the millions of borrowers whose unconscionably conditioned contracts make them assume all of the risk in the value of property that the government, lobbied by and elected with contributions from the banking industry, willfully destroyed.

Against the massive power of government and the enormous influence of the banking industry, individual borrowers have no effective remedy to the inequity in the assumption of risk in the secured assets which the government is free to devalue.

I have informed the Chief Justice of the United States Supreme Court and the Chief Justice of the West Virginia Supreme Court of my concern that Ocwen Financial and all mortgage companies using similar mortgage agreements be permanently enjoined from foreclosing on properties bound by unconscionably conditioned contracts.

Millions of homes are at stake. Please contact your elected representatives and insist that unconscionable foreclosures be stopped and that the banking industry must be required to assume a risk in the assets they collateralize. This might sound like legalese, but a great social injustice needs to be stopped now.

Resist Unconscionable Mortgage Foreclosures!



The Palmetto Manifesto Launched

April 8th, 2011

The long-awaited Palmetto Manifesto has just now been published on!

This document is a landmark in the fight to restrain the power of the national government and return that engorged ruler to the constrained federal government that was established by the Founders. The Palmetto Manifesto, with its artfully crafted 25 articles radically redistributes governmental power back to the State legislatures that created the federal government.

I encourage you to read and carefully study the Palmetto Manifesto. If you support any of the articles, join and help to fight for its adoption. The Palmetto Manifesto calls for reform only through individual Constitutional amendment. Nothing can be done via legislation by our corrupt, careerist, unrestrained Congress; nothing can be done by our corrupt, careerist, unrestrained Chief Executive; nothing can be done through our corrupt, careerist, unrestrained Supreme Court. Certainly nothing can be done through a Constitutional Convention because it would be taken over by big-money lobbyists, big-money ideologues, and well-financed heralds of perdition.

It’s not too late to halt the federal juggernaut, but it must be struck in the only venerable spot it has: it owes its existence to the legislatures of the States. Join and chase the Modern Redcoats out of Washington, DC!