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Chase will be your judge

Katerina and Nestor Gasset- Owners of Wellington Florida's International Properties and Investments, Inc. real estate brokerage.

I am a avid subscriber and reader of Katerina Gasset’s active rain blog. I have never ever subscribed and read any other bloggers articles for more than a couple of weeks. Katerina is going on 5 months for me and I always open and read her entries.

Katerina just wrote an article called “Chase Chimes In About What Is Moral.” She has recently had several articles that explore the morality debate regarding strategic defaults that have been getting a lot of media attention lately.  Strategic defaults happen when an owner could make his or her mortgage payments but choose not to for whatever reason.

Katerina writes:

Frank Rubino Vice President of Chase Homeownership Center in Orland said that Chase is participating in the HAFA program but that the program is “not meant for homeowners who can afford their mortgage but want to walk away from an upside- down loan.” (reported in the Orlando Sentinel)

The holier than thou Vice President goes on to say:

“It’s not right. It’s not moral. It’s not the right thing to do. Why would customers look to the bank to substantiate a loss for the house they bought? If they bought the house and sold it for $100,000 more than they paid, they wouldn’t share those profits with the banks.”

He then goes on to say that one of the things Chase looks at is if the homeowner ‘mismanaged’ their funds.

I will interject with my $0.o2 here regarding strategic defaults.  I totally agree with Katerina that it is not our business to lay down moral standards for other folks… especially about when it comes to personal decisions about their financial lives. Every person has to sit down and decide what is best for them and most sustainable for their life and their future.

I do think that note holders should have the write to decide whether they choose to legally collect an amount owed to them or forgive it.  I would like to see banks be more forthcoming about what there intentions are at the beginning of a short sale or foreclosure so that folks making decisions about their future can do so in a more informed way.

It does seem a bit scary when you have lenders deciding if you have “mismanaged” your funds… as Katerina goes on to point out that their management of funds and morality certainly don’t put them on a level to judge other.

Is this a satire comedy we are watching?
Is this an oxymoron?
Or is this hypocrisy?

Let’s see- who is Chase to speak on morals?

Isn’t Chase the one that was accused of defrauding commodities and manipulating the silver market?

Didn’t Chase profit from Tim Geithner orchestrating turning Bear Stearns over to Chase in a tax payer funded fire sale?
Then Chase used Bear Strearns’ liquid assets to shield Chase assets from being seized because of their scandalous toxic mortgage debt involvement.

Chase settled a case with Jefferson Alabama in November of 2009 in which Chase was accused of paying close friends of the commissioners involving bribery, money laundering and tax evasion by the then Mayor of Birmingham Alabama.

And this is not to even mention the cronyism that Rockefeller started with the New York state government when he was involved with JP Morgan bank.

Who’s talking about morals?

Well, then why did we bail out Chase? And are they going to give the tax payers back the profits that they were able to gain from the bail outs and the cushy deals they were given in spite of their poor management, their lack of responsibility and their not being able to keep from going belly up without the tax payers bailing them out?

Thanks Katerina and another great blog post.
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Andy Morris is an Ohio real estate broker with an expertise in selling homes on a short sale. If your Ohio home is heading towards foreclosure or you owe more than your property is worth, please call Andy at 888-4-STOP-IT to see if you qualify for a short sale with your lender. Are you not in the North Eastern Ohio area? His team can negotiate short sales across the United States.

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