Ohio at center of new housing fraud scandal, by banks

The Washington Independent reports:

The scandal came as no surprise to housing advocates in the state. “We had 90,000 foreclosure filings last year, and another 100,000 this year,” explains David Rothstein of the non-partisan think tank Policy Matters Ohio. “When we look at those statistics, and put our thinking caps on, you have to say, how were they processing all of these claims without bigger legal staffs and bank staffs? This wasn’t a surprise.”

He continues: “And there’s a tragic irony here. For five or ten years, the banks have said that the foreclosure crisis in this state is the borrowers’ fault. They bit off more than they could chew. It’s all their fault for buying expensive houses and then losing their jobs.”

“But look at this! They’re taking people into foreclosure, without the right to do it! It is tragic. They were committing fraud, and were completely giving up their fiduciary responsibilities.”

I urge local prosecutors to investigate and charge management, put them in jail. Just put them in fucking jail before it’s too late and the streets run red.

Crime springs forth from inactivity, and a staggering crime study from 2010 shows 31% of Cleveland doesn’t feel safe walking down their own street at night (with Cleveland proper soaring to 63%). Empty, for sale and dilapidated houses every other block (and in some places every other house) contributes greatly to the broken window theory of crime.

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