As of August, there were more than 4.4 million home loans that were either in the foreclosure process or 90 days past due, according to mortgage research firm LPS Analytics. Since 2006, about 6.4 million homes have been lost through the foreclosure process.
And how about the stealth foreclosure bill that the banks got through Congress--through the House in April and the Senate on September 27--with no debate? They knew what was coming. Obama's veto of that bill alone earns my vote for him.
And how about the banks quietly trying to persuade homeowners--even those not yet behind on their mortgages--to do deed-in-lieu-of-foreclosures? That's been going on for months. Another attempt to extricate themselves from the dangers they saw coming from their handling of traditional foreclosures.
Is there no level to which they won't sink?
My 2 cents, may only be worth 2 cents.
Do you think homeowners are being lulled into a false sense of security? How many people are going to just stop making payments because "there is't foreclosure to worry about"? There are so many questions, and the answers that make the most sense are pretty grim.
I predict these foreclosures will never hit the market because states attorney generals and class action law suits will force the banks to give them back to the home owners.
Courts currently have this right legally.
If other banks are pressured to follow BofA's lead, it could reduce inventory significantly (and artificially), setting the country up for a boomerang affect when the spigot is opened.
Less inventory will drive prices up temporarily, but when these homes hit the market again, as they will, it will probably drag prices down. At the very least this moratorium drags out the housing recovery, while adding an element of uncertainty that we don't need.
In terms of what I think, I believe that halting foreclosure will only delay the continued correction of the market.
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encouraging banking malfeasance easily and quietly.
If Obama hadnt' gone against his own party on this we might never have heard about this bill.
The Courts have a game changing opportunity.
Lets hope the Founding Fathers were successful in keeping this branch of the government independent.
Lets see if the courts punish the people who created this mess and claw back the profits of these "risk"managers and mortgage bank servicers and security "insurers" who walked away with billions.
What about the stealth bill that slid thru congress!
Supported by both Republicas and Democrats.
This took some hutzpah on Obama's part. First time I've seen him stand-up against Big Banking.
Courts have the power in 23 states to return homes to homeowners or force banks to adjust priciple to current market value i bank fraud cases.
These foreclosures may never hit the market.
That would lower inventory. Begin Correcting the fiasco caused by over capitalization of the market by securitizing "insured" mortgages. These banks have had record years.
Hopefully everyone from banks to wallstreet, investors to homeowners, will learn a valueable financial lesson from this recession. Hopefully one that we won't let happen again.