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View Diary: Fail: I just solved Detroit's problem (22 comments)

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  •  You need Section 2 (0+ / 0-)
    a tax upon all written instruments of the kinds described in section 2
    If it doesn't include assignments of mortgages, then there's no tax on the transaction.  

    "We're now in one of those periods when the reality of intense pressure on the middle class diverges from long-held assumptions of how the American bargain should work" --James Fallows

    by Inland on Sun Jul 28, 2013 at 09:56:08 AM PDT

    •  From section two: "or any interest therein" (0+ / 0-)

      A mortgage is an interest.  So is a derivative.  It is beautifully written.

      To any wingnut: If you pay my taxes I'll give you a job.

      by ban48 on Sun Jul 28, 2013 at 10:03:17 AM PDT

      [ Parent ]

    •  With these Financial Instruments, like CDO and CDS (0+ / 0-)

      wherein hundreds, perhaps thousands or more, mortgages were bought up, bundled together into a single "asset"; after which the "asset" was sliced into Shares, all of which were sold on the Market.

      The greatest question brought by the entire Mortgage crisis is: Who legally owns the mortgage?

      Historically, in America, when a mortgage was procured, the "owner" was the Bank or Credit Union or Savings & Loan which provided the money to the borrower. All laws and regulation on Mortgage borrowing and lending reflect this (and only this) scenario.

      These laws ALL support the idea that ONLY the "owner" of the Note (the promissory note which the borrow gives in return for the money) may make changes to the Mortgage document, including modifying the loan or calling it early or enforcing the Foreclosure option, as written for that specific loan.

      Hence all the crazy a couple years ago about borrowers maybe being able to just not pay their mortgage, after it had been collateralized (bundled and sliced and 'sold' as shares in a Fund), because no one had legal 'ownership' in the historical and legal context.

      But the biggest thing is - no has yet, to my knowledge, brought a single cause of action in a court of law to Define or  Void any of this. No one really knows, yet, whether those collateralized assets are legally owned by anyone with the authority of law to proceed with any legal actions (like foreclosures).

      Now, getting to the point of the diary, the MERS system. Like the underlying question of 'ownership' of legal redress described above - the MERS system of failing to act within the historical context of filing a LOCAL deed with the County Assessor's office in the State in which the real property was located when the property in question was collateralized into a Fund... appears to have been wholesale, illegal avoidance of paying a lawful tax on the millions of homes sold into these Funds.

      Just my opinion. Former mortgage broker, former licensed Realtor in the State of Washington.

      That being said, I wouldn't hold my breath waiting for the City of Detroit to try and enforce these tax liabilities - because the paper trail and the manner in which the real properties were collateralized is so obscured from view that I simply don't believe that it is a real world possibility.

      Just one more way in which wealthy investment houses managed to fuck over the hardworking American People during the Reign of George W.

      "I like paying taxes...with them, I buy Civilization"

      by Angie in WA State on Sun Jul 28, 2013 at 10:32:35 AM PDT

      [ Parent ]

      •  several courts have addressed that and (1+ / 0-)
        Recommended by:
        Angie in WA State

        I believe has the sort of record a heavyweight boxing champion would admire.

        I reserve the right to be wrong.

      • so obscured from view.... (0+ / 0-)

        I could unwind it.  All you have to do is follow the money.  Slice a thousand mortgages into a thousand bits and sell them as a thousand CDOs, no problem.  Just assign them value (i.e. tax liability) based on the portion of the loan repayment they receive, minus the portion of any defaults they are forced to eat.

        Unwinding is not difficult.  We are just told it is difficult to prevent us from demanding it

        To any wingnut: If you pay my taxes I'll give you a job.

        by ban48 on Sun Jul 28, 2013 at 10:56:39 AM PDT

        [ Parent ]

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