John Edwards Foreclosure Controversy Picks Up in South Carolina
By Foreclosure-Fighter Staff Writer
A couple of weeks ago, Foreclosure-Fighter detailed how Democratic Presidential hopeful John Edwards has found himself in the center of a foreclosure controversy, and now recent news has allowed some to question his campaign messaging even more.
Edwards worked as a consultant for Fortress Investment Group from October 2005 through 2006 and was paid nearly $500,000 for his work. A Washington Post story detailed in May how subsidiaries of Fortress, including Green Tree Financial, had been filing foreclosure lawsuits in New Orleans.
OK. So how does this affect Edwards? To begin with, Edwards has championed himself as being for the poor during his campaign and has also made predatory lending, in which prospective, low-income homebuyers are mislead by hidden fees and thus unable to meet monthly mortgage payments, a major target. Edwards has even worked in Hurricane Katrina-ravaged areas of New Orleans, promising relief for those victims.
For Edwards, a man who once had nearly half of his investments invested in an FIG hedge fund, it thus didn't look good that a subsidiary of the company he had worked closely with was foreclosing on the homes of 34 Katrina victims.
To make matters worse, a recent story in the TheState.com detailed that Green Tree Financial has began foreclosure proceedings on 130 homes in South Carolina since Edwards began working with FIG. Green Tree was even the subject of a $30 million class-action verdict involving thousands of South Carolinians.
Once again, how does this affect Edwards? To begin with, Edwards was born in rural South Carolina and has cast himself as being from the people and for the people of the state. In a larger perspective, the former U.S. Senator from North Carolina is banking on the support of South Carolinians to earn his spot on the Democratic presidential ticket. Thus, such news is no good news for Edwards, who is trailing Hilary Clinton and Barack Obama in South Carolina.
With all of this in mind, some Edwards' supporters have been taken aback by this relationship with FIG and have begun to question the consistency of his messaging. They've asked how can a man who has called homeownership the American dream and also attacked predatory lending be aligned with a company known for its shady lending efforts.
In response to such questions, Edwards has said that his relationship with FIG does not damage his image as a poverty fighter. Edwards has also said that he will cut ties to any companies working with subprime mortgage lenders.
To some political analysts, it is unfair to think that Edwards should know all about a company, such as its subsidiaries, when working with it and investing his money. While this may be a fair line of reasoning for some, the fact remains that some Edwards' supporters are concerned with this issue.
Even though Edwards has taken the hardest stand against predatory lending, these supporters are worried whether this inconsistency is a matter of ignorance or the Democratic presidential hopeful having a double standard.