Yes some people do exhaust their savings and retirement trying to stay in their home and trying to meet obligations. Many of those people did so early on in the recession believing the lies told about the crisis being "contained" in sub prime or lies that banks were not at the bottom of this entire meltdown. So many people were wiped out believing the economy would turn around or that the government would not do things to make the economy get worse for several years.
This being said I agree that the banks signed a contract with you that gave them to the right to accept payment in lieu of collateral. (the house) It is a fair trade if the borrower decides to move and turn the house over to the bank.
The even bigger is misconception is that the contract between borrower and bank is written in stone. This is completely untrue and the banks only want people to believe they have no right go in and re negotiate the contract at any time. And what better time to renegotiate the contract then after the property value drops 50 or 60 percent? Any logical banker would bite the bullet and renegotiate with a borrower in this situation. It makes smart business sense fo the bank.
The biggest problem lies in the reality that the banks are being funded by goverment and they are dictating government policy. The big banks have been bailed out and now they are being given freedom to set policy as politicians cowardly run scared because they all are bought and paid for whether it is their first year or 30 th year in office.
It makes no sense for people to cry and whine about people getting a load modification. The Moral hazzard argument is total bs because everyone negotiates their own loan. Banks are free to give a deal on interest rates and they are free to charge you more than your neighbor.
The banks have used a great mind control campaign over the years to trick people into belieiving they had no power once they sign a loan. The banks are refusing to negotiate with people because they have been paid by the government and they know the government will always pay their bail.
The entire arugment about investors this and investors that, or loans can't be modified because investors have bought into the mortgage is complete crap and more bs from the banks. If banks wanted to settle with people and give them a new loan they could do it within months and keep the borrow in the home and keep them paying payments.
We are being hosed by the banks followed Us government.
Make big money in penny stocks today
Sunday, May 8, 2011
Financial Reality Revisited Pages
- A story of how Wall Street ruined the real estate ...
- Foreclosure halt by banks was an illusion
- the financaial reality of Negotiating with the ban...
- Learning to trade stocks in the financial reality ...
- financial reality Review of the Article by k. Galb...
- financial reality of Managing Real Estate for Prof...
- financial reality of video of hearinngs
- Obama is deer in headlights
- FRR Home
- List of housing industry related jobs from finanic...
- Listen to Financial Reality Audio Books