Indeed, halting the long slide in home prices has emerged as the government’s primary goal in its settlement talks with lenders. Following the robo-signing scandal last autumn, many major servicers halted home seizures. But in the months since then, more homeowners have fallen into distress amid high unemployment and a weak economy, adding to the inventories of potential foreclosures to come.
After all the mortgage fraud, they're not going to prosecute anyone, instead opting for a token fine.
Entire subdivisions were financed through mortgage fraud and nobody is going to jail. Most will get away with the money they've made. A huge number of homes were sold to "investors" who put tenants in the properties, collected the rent, and never made a mortgage payment.
Then.. all those bad loans were packaged up by companies like Goldman Sachs, and sold off as triple A investments.. all the while, taking short positions on them.. which means, Goldman bet that the investments they sold were shit, and they were right.. Nobody is going to jail for that.
The good news, of course, is that the government wants the banks to accelerate the foreclosure process in order to get the market to bottom out. Of course, with the really shitty economy, there's still a lot of new foreclosures occurring.
Obama's "HAMP" program to help financially troubled home owners? Joke. It didn't do shit but delay foreclosures. It was meant only as a political ploy.
Now you might be asking yourself.. Tom.. that sounds awfule. How can that be good news?
Part of John's business is selling bank foreclosures. He's working like 12 hours a day, 6+ days a week.
As long as inflation rates stay low, debt remains at it's current level. People might actually get out from "upside down" situations with their homes if the value of the debt they have were to drop due to inflation. That's not going to happen. Inflation really isn't going anywhere because demand is low.
So.. bad news for most people in the US. Good news for those that make more money when the economy is bad.. and it's going to suck... for a long time. And while I think Obama is the Worst President Ever.. he's been the Best President Ever for people who make a lot of money when shit is fucked up.
Which, of course, is why shit is fucked up. They want it to be that way.
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