Constitutional Law (as to how it may apply to Parallel Foreclosure).
1. The rule that the government cannot condition a person's receipt of a government benefit on the waiver of a constitutionally protected right (esp, a right under the First Amendment)......My interpretation of rule 1 is a bank that forces a homeowner to default on a home mortgage before the bank will either accept or review that homeowner's mortgage modification application is a clear violation of constitutional law because the bank is using the default to then "parallel foreclose" on that homeowner, yet the government has approved of this practice.
In essence, the homeowner is "waiving the right" to home ownership in exchange for receiving the government benefit of applying for a home mortgage modification with no guarantee they can keep their home or get a lower mortgage rate. In essence, the government is using taxpayer funds to lure a taxpayer in distress into being parallel foreclosed upon while they are applying for a home mortgage modification. This is a "quid pro quo" and a violation of the constitution as defined above.
2. The rule that the government cannot force a defendant to choose between two constitutionally protected rights.My interpretation of rule number 2 is, Parallel Foreclosure violates a homeowners constitutional right to receive a government benefit by allowing banks to prioritize the benefit only after the homeowner has fallen behind on their mortgage, putting the homeowner at risk of being parallel foreclosed upon by a bank because it BECOMES THE BANK'S CHOICE whether the homeowner loses their home or not!
The homeowner has been forced to give up control over home ownership in exchange for a government sanctioned home mortgage modification that is taxpayer funded!While the Barack Obama administration may not have officially endorsed Parallel Foreclosure (although they have defended Parallel Foreclosure as being legal in front of Congress!), they know parallel foreclosure is going on and have actually sanctioned it as being legal, and are allowing banks to dangle those government funds, aka taxpayer funds, in exchange for the home modification applicant being parallel foreclosed upon.
When the Obama administration does not repudiate parallel foreclosure and instead continues to create government backed home mortgage modification programs that allow for parallel foreclosure actions by the banks that are also receiving funds from the government for home mortgage modification programs, the Obama administration is complicit in the over one million homeowners victimized by parallel foreclosure.
What is Parallel Foreclosure?
Parallel Foreclosure is a bank approved methodology in which banks only grant government sponsored mortgage modification funds to homeowners who are first required to default on their home mortgage monthly payment before their mortgage modification application is reviewed.
Thus, once the homeowner has defaulted per the bank's preference (otherwise the bank will either ignore the home modification request or make the homeowner wait a long period of time before dealing with their request), the bank believes they can begin parallel foreclosure actions while continuing to deceive the homeowner as they "process" a home modification application they may have no intention of honoring.
In essence, the bank has taken ownership away from the homeowner and instead will do what they think is best for the bank, not the homeowner, a clear violation of both constitutional points made at the top of this article since the home mortgage modification program funding is taxpayer driven.
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