Many people subjected to home foreclosures are using a new strategy — going nowhere. They’re demanding that the original home loan contract be produced — the very note that in the frenzy to make as much money as possible by banks on home loans was often sliced, diced, repackaged and resold by one bank to another...then to another...then to another...
Toledo area Congressperson Marcy Kaptur has vocally called for staying put and demanding banks produce the original paperwork.
What’s interesting about this approach is that it turns the tables at least to some degree on the corporate crowd hiding behind contract law.
It was the corporate crowd who first professed that corporations had “rights” in 1819 in Dartmouth College vs Woodward by claiming that a corporate charter was a “contract” -- making it difficult for governments to control corpses since contracts were sacred agreements between two equal parties.
Well, what happens when one party to a housing loan contract (the bank) can’t produce the original contract to the homeowner or it’s unclear who actually owns the loan? Shouldn’t the contract be null and void?
Many people believe so.
This shouldn’t be the only approach to go after financial institutions for their scandalous predatory loan practices (not to mention public officials who’ve refused to demand bailout money be used foremost to address the foreclosure crisis), but it is one approach.