Bias in the Courts -- the Silent Killer in Foreclosure Actions

THE NEIL GARFIELD SHOW

Instead of taking the opportunity to review complaints about the process of foreclosure and eviction, the Governor of Florida is issuing an order that all but assures that the foreclosures will continue to be regarded as valid — i.e., based on true facts about the status of the claimed debt, the ownership of the debt, and the authority to collect, administer and enforce the debt. The elephant in the living room is that none of these “Securitized” transactions are being treated as securitization schemes. Lawyers come to court and say “Your Honor, this is a standard foreclosure.” NO! It isn’t. And the moratorium, such as it is, still leaves homeowners faced with foreclosures by people who have no financial stake in the foreclosure or the “loan” except the expectation of profit. But because borrowers believe that to be true and so do most of their lawyers, the die is cast. Everyone assumes that the only thing in play is the “loan.” And yet, the courts ignore the fact that under Article 9 §203 of the UCC the claimant must have paid value for the debt — which it must be the owner of the debt because only someone who has suffered actual financial injury can bring a claim for foreclosure. That is black letter law converted to gray because of court bias. Court bias results from a sub silentio doctrine, which is the subject of tonight’s radio show. It explains how and why the courts are getting it wrong almost every time. It isn’t because judges are out to get homeowners or because they have been bought off by the banks. It’s because almost nobody is taking the time or energy to present the whole transaction to the court. If it isn’t presented, the judge has no power to rule on it. It’s Bias but it isn’t the kind you are thinking about.