In today's banking system, the practice of mortgage loan making is immoral, unethical, and ought to be outlawed as fraudulent. In this post I will outline the way a bank makes a loan and why this practice is wrong.
Step 1: A property owner decides they want to sell a home for $500,000.
Step 2: A prospective buyer wants to buy the home but doesn't have $500,000. Therefore, the prospective buyer is unable to purchase the property. They therefore ask the bank to purchase the property on their behalf with an agreement to purchase the property over time in the form of a mortgage loan.
Step 3: The bank creates $500,000
Step 4: The bank gives the cash to the seller in exchange for the title to the property.
This is the first sale of the property.
Step 5: The bank gives the title to the buyer in exchange for payments made over time, usually 30 years. Until all the payments are made, the bank retains ownership of the title. Once all payments are made, the bank transfers the title to the designated new owner.
This is the second sale of the property.
Every mortgage created in the current modern banking system follows these five simple steps.
Why is this fraudulent? It is generally known that money creation is considered a form of counterfeiting. If you were to print $500,000 from a home computer and use that money to buy a house, the contract would be considered null and the title would be given back to the original owner. Because the bank creates the capital needed to secure the first sale of the property, they are committing a form of counterfeiting. They are not brining anything valuable to the sale of the title. Since the bank did not own the $500,000 prior to the sale of the property, the bank defrauded the original seller.
Subsequently, the mortgage the bank created is also void since the title used as consideration for the loan does not rightfully belong to the bank. In other words, since a private person cannot kick his neighbor out of his house and then rightfully sell it, neither can a bank steal a house by way of counterfeit and then rightfully use the title to that house to secure a loan.
Therefore, the bank's right to repossess the property is null and void and the bank's right to claim loan payments is null and void as was decided in this 1968 court case in Minnessota.
A properly functioning justice system would expeditiously transfer the title of the property back to the original owner and force the bank to pay the buyer all historic loan payments.
No comments:
Post a Comment