85,000 Families Get the Foreclosure Notice in October
CNN reported today that 85,000 more homes went into foreclosure last month. That number is likely higher if your throw bankruptcies into it. 279,561 families received notice that they were being foreclosed on. New lending is not the problem. Over the last few years millions of homes went into foreclosure. Many more foreclosures were stopped, but the credit of the people foreclosed on was trashed. So will the banks lower lending standards to allow those people to borrow again? No. So how is new money to lend going to help?
What I would like to know is how many families foreclosed on still have any income? My guess is probably 70% of the people are making some money and will be paying someone rent.
So let me ask this:
Why would a bank foreclose on someone and take a huge loss instead of re-evaluating the persons situation and adjust the loan?
I know. I’ve been there. Between the energy costs going up, medical care going up, and salary going down it was impossible to make our payments. Was the mortgage company willing to work with us? Sure if you consider a balloon payment after three months along with no guarantee they will re-adjust your mortgage working with you. When asked about the bail out and why they would choose to loose over 100k for there investors and make the tax payers pay, they responded they don’t care. I don’t see how a fixed rate loan with an extended term hurts them. But another empty house at a loss does not?
I have read hundreds of stories with the same general story line. Our government has backed away from buying bad mortgage assets and now wants to buy stock to help the idiots out.
Using the word idiots for educated banking professionals is a bit pathetic. When you are willing to take a loss and throw out a family you should be put in jail. The American thing to do is reach out a hand to your fellow American. At 85,000 a month you can’t keep peddling the sub-prime mortgage crap as the reason for the failure. A win-win situation is better. I would be all for the government covering the difference or an offset of the loss in revenue after an adjustment. As long as the loan wasn’t price gouging in the first place. Why should we the people foot the bill for a total loss because the bank is unwilling to work with its customers. Oh wait. Who is the customer? The customer is share holders and holders of the secruitized pool of mortgages. The debtors is just scum. We were customers when we were shopping for the loan. After it was given we are just debtors who owe.
A good for instance is my natural gas bill went from around $400 a month up to $1200 a month over three years. All because rates went up. Who gets blamed for the foreclosure….The customer who took the loan? The mortgage company who made it? But in the north you can’t live without heat. At 55 degrees inside all winter I can’t see doing better on conserving energy other than redoing the whole house insulation. So the banks and main stream media really don’t like to talk about all the reasons for the foreclosure mess. The fingers may start to point away from the banks.
In a good majority of the cases nobody is to blame, but collectively we are all to blame. When we watch our neighbors move out. When we watch our kids cry. The fact that we do nothing as a country but bill collect on our neighbors is sad. When we give billions to banks while kids get put out on the street is pathetic. While homes get over grown with weeds and set empty we continue to deal with homelessness is truly pathetic.
What can people do? Help your neighbor. If your a lawyer offer advice to your neighbor. If your a banker go look in the mirror and wonder if your next to be out on the street. Write and call your congressional representatives. We need to reach out to people.
Just like 9/11 when we said divided we fail. Divided on this topic will truly cause us to fail.