Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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“neutral” mortgage
What's Wrong with This Suggested Solution to the Mortgage Mess? - Seeking Alpha

I’m wondering about the practicality of the suggestion that homeowners who are under water and unable to keep up with rising/confiscatory mortgage payments be converted temporarily to leasees, with a local bank as the leaser. The monthly lease payments would be held at some formerly affordable level while the market bottoms out. Housing and employment markets will at some point in the foreseeable future stabilize at a point where the homeowner is again solvent and, one hopes, interest rates are suitable for converting to a new, affordable fixed rate mortgage.

A New Class of Mortgage - the Neutral Mortgage

Such a product could be seen as a way station between a conventional mortgage and a reverse mortgage, a new status of “neutral” mortgage in which the owner voluntarily becomes a tenant for a number of years while the markets stabilize.  An arrangement established as part of a federal housing market recovery program.

The idea is to incentivize banks to resume their former model of making, selling and servicing mortgage loans in their markets, the de-collateralization of the industry, complete with financial underwriting. Next, it intends to keep people in their homes until order returns to the real estate market. Finally, it provides for the tenant to become the owner again, with a new, smaller mortgage loan within, say, five years. It would specify insurance and property tax payment arrangements, etc.

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LaRouche had that idea or a similar one.

How about a one year moratorium and appoint an independent panel to determine whether the foreclosures are lawful or if there was switch and bait or origination fraud that caused the foreclosures.

I'm sure there are a handful of people who are dopey enough to get a mortgage they know they cannot afford and quite a few more than lost jobs. For the most part though most borrowers take out loans they intend to pay back. Were they coached by unscrupulous lenders who convinced them they could afford higher payments, well that's another issue that we need to decide who's liability that is I imagine it should be shared.

There are quite few people who buried themselves in high cost loans because they expected an increase in property value they probably should be considered speculators but the lenders still made high risk loans and the taxpayer should not foot the bill and the lenders still need to be held accountable.

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NO NEW ONES! We have enough classifications of mortgages already, we need to DELETE some of the existing ones.

One (1) year Moratorium, YES.

Louisiana & Florida
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