Update: Short sellers are being required, in some instances, to sign a promisory note in order to be liable for the difference between the short sale price and the money owed on the loan. Bankers will stop at nothing. I would be mad enough to tell them to stick their promisory note into an unmentionable place. I would walk away!

Update: It appears at first glance that Obama's plan which I don't agree with for economic reasons, at least will not use recourse loans. I am still checking on that. It would appear that Swonk and Feldstein have been rebuked by the Obama team. However, this site is still a warning to be vigilant if you ever get a house loan to make sure that you are not vulnerable to recourse loans, especially for the first note.

I had written about this subject just a few days ago. But now on Valentine's day, Diane Swonk has come out on that paid shill for the banks, CNN, stating that what is needed is recourse loans to accompany the cramdowns.

If you want to be a slave to the banks for the rest of your lives then go ahead and accept recourse loans. But you need to know what that means. If you accept a recourse loan, at lower payments, and your house value continues to drop, the lender has recourse to go after you for the money, if you walk away, for the rest of your life. This is one more noose around the necks of the middle class by the fascists who control the banking system.

Scroll down and read my history as a descendent of the Jews and see the videos on how a few Jewish academics want to imprison the American public with recourse primary loans!!!

Nonrecourse loans give the borrower the freedom to walk away if the loan is unworkable or if you fall into hardship, or if it was a bad investment or if it was a toxic, phony loan. But now, under a recourse loan, the banks have you by the balls, and you will be a slave to the bank whether the loan was appropriate, whether the loan was written on an inflated house, etc. Recourse loans are unamerican. Any president that approves them is owned by the banking system and is NOT your friend.

Just remember, if you don't want the banks to control your lives forever, then you need to say NO to recourse loans. Don't trust those evil people like Diane Swonk on CNN. They are out to eat your lunch.

The reason I am mentioning this fact is because although my natural father was Jewish (I was adopted at 3 months), I am so disgusted about how many ways Jews have become fascists! Non Jews or those not descended from the Jews are so afraid to rekindle racism against the Jews. I have skin in the game. If you want to persecute me for having Jewish blood then so be it.

But I am warning people (from a sympathetic advocacy of Jewish liberty and of the liberty of all peoples), that the elite Jews have become that which destroyed us. True the new fascism is not racially motivated, however it is a corporate fascism that destroys the freedom of democracy and the middle class. This fascism is an attack by the banks upon the middle class. You will see that corporate fascism is being put forward by economist Martin Feldstein in the form of recourse lending on home loans. What a terrible disappointment it is to see the elite Jews becoming the masters of corporate fascism when they should be hating all forms of fascism.

I had watched this video before but I missed the part about recourse loans! These corporate fascists are the Bugsy Siegel's of the federal banking system. They want complete dominance over the borrower. That a Jew would be the source of loans that will enslave the middle class is like the neocons who want to build a fascist American Empire worldwide. Wake up Jewish people and Gentile people. Take your money out of the banks and weaken them if you want to keep your freedoms.

Do not take a recourse loan. Do not be suckered in by lower interest rates or a lower princple. In a democracy the people are supposed to come first, and the banks second. In our fascist state the banks screwed the middle class with toxic loans and now want to turn around and make the people who took the loans slaves for life!!! Martin Feldstein is advocating an unamerican fetter upon the middle class of this country!!! Disgusting!

Here is a disturbing scenario. Say the banks take this greedy desire for recourse loans to all loans. That will permanently hamper the loan pool of future buyers. There will be less demand for loans as buyers will all know that the banks want to screw them. Recourse loans may be all that is available in the future for refinancing, or bankrupcy, etc.  

The fact that recourse loans are even being considered at all is a reason for people never to buy a house with a traditional mortgage. You simply cannot allow this sort of tinkering to take place by banks, with house prices and house demand already falling. I have a little list compiled of reasons not to buy a house with a mortgage in the United States:

Reasons Not To Buy A House with a Mortgage attached:

1. House values cannot be understood because of government intervention into the housing market. House values are based upon government whim, external economic forces beyond the control of our government, and by changes of the rules. 

2. Bank credit availability may be forever hampered because of bank balance issues, credit worthiness issues of the weakened middle classes, and because of the difficulty of valuing houses because of so much government intervention and threats of inflation or more deflation.

3. The very talk of recourse loans makes it difficult to think that there will be more demand for housing than there is now. You banks speak about recourse loans. No one can trust that it will be that easy to sell a house in the future because of the onerous rules that buyers may face.

4. The ability of people to share housing was totally misunderstood by the gurus in finance, including Jim Cramer. These bozos never realized that people don't buy housing if they cannot afford housing even though demographics show a need. The only reason people would buy above their means would be if they could benefit from a bubble in housing. Bubbles in real estate will be very difficult to rekindle again. You cannot squeeze blood out of a turnip when it comes to affordability. You will have tent houses before you have irrational buying that the economists were banking on!

5. Thirty year mortgages may go away. While that is not likely, it could very well happen if the banks are forced to use only credit standards that are real. The mortgages may not actually go away, but they may be out of reach for so many that the market may never be restored.The only reason people could afford the toxic mortgages was that they were given a way to buy a home with easier terms than the first and last month rental requirements that you see in many states!!

These folks cannot afford a mortgage under regular rules unless house prices are less than 3x yearly household income!!!!

6. The thirty year mortgage did not exist prior to FDR's New Deal. Prior to that, mortgages were 20 year mortgages with a balloon payment at the end. Banks could call in the mortgages at any time, and did so in the great depression. Look at it this way banks. You banks don't have to call in the loans now. People are willingly giving you the houses as they walk away and you banks are still greedy and grumbling and clamoring for more screws in the vice through recourse loans. You know there are too many houses for you to handle. You have lost your leverage, bankers, and you hate it! 

This is another reason never, ever to trust a bank for 30 years. What a ludicrous idea! You have no idea what bank mischief will prevail over 30 years!