Mortgage and foreclosure crisis 2.0

[Crewleader]

September 15, 2014
Larry Roberts 22 Astute Observations
The mortgage and foreclosure debacle of 2008 was cut short by government intervention. A second round of deferred distressed sales is yet to hit the market.



Is the mortgage and foreclosure crisis resolved or merely delayed? Most people believe the mortgage and foreclosure crisis of 2008 is behind us, a misperception fostered by a financial media eager to disseminate good news. The common perception is that an improving economy has put people back to work, and those hard-working Americans cured their loans of past-due payments: all is well.mortgage-foreclosure-crisis-2.0

Unfortunately, that isn’t the reality. While the notion of the noble American borrower dutifully recovering from the perils of the Great Recession is appealing, most borrowers were overextended before the recession hit, and lenders made deals with these borrowers to preserve the bad debts polluting the balance sheets of both bankers and borrowers.

These loan modification deals merely postponed the final resolution until a day when the value of the collateral backing these bad loans was restored. The final resolution of these can-kicked loans will be mortgage and foreclosure crisis 2.0.


Source: http://ochousingnews.com/blog/mortgage-foreclosure-crisis-2-0/#ixzz3DVU6yeHZ

[Demeter]

1. And THIS time, I hope it takes down some bonafide banksters, not just hedgies

and NO MORE BAIL OUTS OR BAIL INS!