Judge's Bombshell Ruling Exposes The Biggest Flaw In Obama's Disastrous Foreclosure Program

Barack Obama Jon Stewart

Interesting story here…

CourtHouseNews (via Denninger):

A La Jolla man can keep his home for now, after a federal judge granted his motion for a temporary restraining order blocking Washington Mutual and JP Morgan from foreclosing on his house because the banks misled him into defaulting on his mortgage.

     Kaveh Khast claimed the banks instructed him to stop making his mortgage payments so he could qualify for a loan modification.

     A Washington Mutual representative confirmed receipt of the documents, but did not contact Khast within two months as promised. After learning JP Morgan Chase had acquired Washington Mutual, Khast contacted JP Morgan Chase, and a representative told him he needed to submit another application. Meanwhile, he resumed making his monthly mortgage payments.

This is of course a symptom of Obama’s HAMP program. In order to qualify for a mortgage mod, homeowners are told to stop paying their mortgage, and then when things don’t work out they’re in default.

Watch this case for precedent.

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