Bailout Money Has Not Benefited a Single Foreclosure Victim
February 12th, 2009
It is not nice – people getting thrown out by foreclosures. Nobody likes it. So the bailout strategy was chalked out with much fanfare but according to the grape vine not a single foreclosure has benefited even from the crumbs falling from the table.
The people are losing their houses and their dreams while the banks are possessing houses they do not want. On millions of repossessed houses the lenders are having to pay insurances fees, taxes and maintenance charges over and above the legal fees and foreclosure costs as well as eviction expenses. To add insult to injury, vandals are not sparing the vacant houses in deserted localities studded with these units. Any fitting worth yanking is stripped off. Thus nothing seems to be working – all plans are just forth and bubble.
Some opine that the only thing to do is to put a hold on all foreclosures.
There are instances galore to show that this is the path commonsense dictates. Recently a house that was foreclosed because of pending dues worth $500 was sold for $125! The owner failed to keep up with the mortgage payment when it spiked form $1,400 per month to $3,200. Right now answering questions about why this happened and playing the blame game will not help. The flood has to be stemmed.
The usual means of appraising property has come to naught. Six months ago prices were too high and now the distress sale prices are too low. $500 is too high and $125 is absurdly low.
The only route out of this impasse is to put on hold all foreclosures and utilize the time to do workouts. All the tried and tested methods of evaluation have to be put into action – scrutinizing tax returns of the last two years, recent salary slips, credit history prior to the foreclosure crisis and verification of all these. From this one can assess the size of the loan that the borrower can manage. In reality this is going back to the traditional method.
It has to be admitted that all sides including the government made mistakes. As such the banks are due some share of the bailout funds but certainly not all. With these two steps taken the house owners can now stay in their homes and the locality stops looking like a war zone. Realtors too are interested in things getting back to normal because they are one of the worst sufferers in this destabilized market.
- Banks are Stoking the Flames of the Foreclosure Crisis
- Greenwich Town Is Reeling Under Foreclosures
- America is Desolated and Devastated by Foreclosures
- Casino in New Jersey Tries to Fight off Foreclosure
- Foreclosures Are Centred in Four States
- Foreclosures Expected To Drop as Mortgage Rates Decrease
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