The housing crisis of 2008-2009 left a devastating impact on the millions of Americans who lost, or were threatened to lose, their homes to Wall Street’s greed. While the United States Government bailed out Wall Street, that same effort was not passed down to homeowners and their families who lost their most valuable asset.
For the last 8 years, the Law Offices of Jason W. Estavillo has been an advocate for homeowners whose houses were illegally foreclosed upon during the housing crisis. Our fights against the Big Banks, Wells Fargo, Bank of America, the Bank of New York Mellon, JP Morgan Chase, and more, have resulted in several victories and have set a precedent throughout California.
The Law Offices of Jason W. Estavillo Wins a Ruling in Los Angeles Foreclosure Case
Recently, the Law Offices of Jason W. Estavillo won a ruling in favor of a Los Angeles homeowner whom the firm has been representing for the last two years. When we first took the case, our client’s home was underwater, and was threatened with the illegal foreclosure of that home.
Through our tenacity and knowledge of the laws and the unscrupulous lending practices by banks and other mortgage lenders, the Los Angeles Superior Court ruled in our favor. Our clients were able to not only keep their home, but also sell it on their terms with a $1 million profit. This appreciation in such a short period is an example of the severe swing of the pendulum from houses under water to houses with inflated prices.
Have We Not Learned Our Lesson?
Last week, the Republican Controlled House of Representatives passed a bill that would potentially reverse the regulations set by Obama’s The Dodd-Frank Wall Street Reform and Consumer Protection Act. The Dodd-Frank Act, for short, was signed into law in 2010 by Obama as a way of protecting America from another financial meltdown. The Act purports to decrease the risks associated with the 2008/2009 crisis by setting restrictions, tightening regulations, reducing financial risk factors, establishing Watch Dog Groups, and aiding whistle blowers, among other stipulations.
The Republican-backed bill, the Financial Choice Act, exempts certain financial institutions from the regulations imposed by the Dodd-Frank Act, opening the possibility that the United States could essentially repeat history with another housing and financial crisis. The bill has now been sent to the Senate where if passed would be sent to President Trump who would sign it into law. However there is no guarantee that the Senate will concur with the House.
According to an article by The New York Times, Representative Jeb Hensarling, Republican of Texas and chairman of the House Financial Services Committee, justifies the Financial Choice Act. “Our plan replaces Dodd-Frank’s growth-strangling regulations on small banks and credit unions with reforms that expand access to capital so small businesses on Main Street can grow and create jobs.” The bill will be sent to the Senate for approval.
Prepare to Rinse and Repeat
While the Financial Choice Act has yet to be voted on in the Senate, the potential for this bill to become a law is a concerning reality.
What we do know is that properties in the Santa Barbara, Los Angeles, Orange County and San Diego areas have increased in the last year or two, as demonstrated by our Los Angeles client and other resources. If financial regulations are loosened, we run the risk of people borrowing money on risky loans. If Wall Street and the Lenders are allowed to write toxic loans again, the fallout will be the same. Artificially inflated home prices will dominate the market, homeowners will not be able to afford their payments, and the “bubble” will burst again-causing another crisis and putting Wall Street back in power at the hands of the people.
No one served jail time or was held accountable for the 2008-2009 crisis, which allows Wall Street to continue to push for decreased regulations for their own greed. The money that Wall Street is banking on for their own wealthy pleasure is more important than helping people keep a roof over their heads, money in their pockets, and creating a financially stable Country or World. The 2008-2009 financial meltdown created a worldwide recession that is still being felt here in the United States and in Europe.
Fighting for the American Dream
At the Law Offices of Jason W. Estavillo, we continue to fight against Wall Street and the Big Banks and for the rights of the homeowner. We have seen first-hand what effects loosened regulations and risky loans have done to the future of America.
If you or someone you know has been affected by the financial and housing crisis, we are happy to provide free legal consultation. Contact us or call 510-982-3001. We are open Monday-Friday from 9:00 am -5:30 pm.