If it wasn’t already abundantly clear, the major banks in this country and the government have a special bond. Government officials have done much more to help banks survive than the very public who voted them into office. Struggling homeowners in Miami who are fighting foreclosure need to take note.
As Miami foreclosure defense lawyers reported in August as part of a three-part series, banks got $1.2 trillion in loans that were never released to the public.
Bloomberg, which first reported the secret loans, recently detailed the fact that banks made $13 billion on the loans that the public didn’t know about. The Federal Reserve never disclosed that it loaned out the astronomical amount of money or that the banks were in such bad shape that they had no choice but to make the loans.
At a time when so many people are struggling with foreclosure in Miami, banks are still making money hand over fist. First, they used robo-signing tactics and filed fraudulent paperwork. Then, the government loaned $1.2 trillion in taxpayer dollars to the very banks that have tried — and in many instances were quite successful — in taking away people’s homes.
At a time when the foreclosure crisis was as noticeable as ever in the United States, the Fed was doling out billions in cash — enough to buy out every foreclosed home in America. As Bloomberg points out, the country’s central bank says there were no losses, but it allowed the banks to grow stronger and more powerful at a time when homeowners are growing less powerful.
But the average homeowner doesn’t have to cower and lose his or her home without a fight. A strong defense to a Miami foreclosure is as good as a bank’s offense. Being able to show that banks created documents to support a foreclosure, used robo-signing procedures or aren’t able to show who actually owns the house are all strong defenses in a foreclosure.
Bloomberg previously reported that banks got $1.2 trillion in loans and they netted $13 billion from it. But most recently, the news service reported that between guarantees and lending limits, the Fed committed $7.77 trillion as of March 2009, more than half the value of everything produced in the country that year.
While there was public outcry about TARP funds totaling $700 billion to product bailouts to big companies (whose CEOs got major bonuses), the public didn’t know about these loans.
Six banks — Bank of America, JPMorgan, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley — received $160 billion in TARP funds and another $460 billion from the Fed. The 2010 Dodd-Frank law mandated that certain details of Fed borrowing be released to the public, which should stop these secretive practices in the future.
While the government comes up with failed foreclosure programs in the future, Miami homeowners should be wary of relying on it to help. These stories should serve as a warning and a call to action. Fighting back with a Miami foreclosure defense lawyer is the only way to save your home from greedy banks.