The Congressional hearings involving banking and investment giant Goldman Sachs illustrate the complex nature of the mortgage market and offer a window into the collapse of the real estate market and foreclosure crisis in Miami and across the nation. If you are dealing with a South Florida foreclosure, a Miami foreclosure lawyer can best assist in making sure you are being treated fairly in a dispute involving the mortgage industry.
As the Goldman case illustrates, banks have often failed in their obligation to treat mortgage customers and homeowners in a fair and responsible manner. If a bank was involved in an elaborate scheme to defraud investors utilizing mortgage backed securities, a homeowner may have legal recourse during a foreclosure proceeding.
Central to the argument are the Collateralized Debt Obligations (CDOs), which are a collection of asset-backed securities (like mortgages) structured and sold on the investment market. The diffuse nature of CDOs has turned mortgage lenders into loan services, while the actual owner of your mortgage may be hundreds or thousands of CDO investors all over the world. The complexity is one of the reasons cited for the problem in negotiating and approving short sales. Hiring an experienced Miami foreclosure attorney can be your best course of action to sorting it all out and protecting your rights.
While underwater homeowners fight for their financial survival and record numbers of Miami borrowers seek short-sales, foreclosure defense and home-loan modifications, executives for Goldman Sachs defended themselves by insisting the did nothing illegal. The bankers say they provided a valuable service by allowing customers to manage investment risk, MSNBC reported. Congressional leaders accuse Goldman Sachs of being little more than a giant casino that packaged and sold mortgages to investors even as it made bets against the bonds it was selling to customers.
“There is something unseemly about Goldman betting against the housing market at the same time that it is selling to its clients mortgage-backed securities containing toxic loans,” said Sen. Susan Collins, R-Maine. She cited “e-mails of Goldman executives celebrating the collapse of the housing market, when the reality for millions of Americans is lost homes and disappearing jobs.”
If you have are facing foreclosure in the Miami area, contact Barakat, Jacobs & Associates for a confidential appointment to discuss your rights. Call (305) 350-5055.