SHATTERED DREAMS: Homes are going into foreclosure at a rate of 120,000 a month, and at least one expert warns the mortgage crisis is poised to become a 'tsunami'.
Charles Brown of CB3 Financial says that instead of selling foreclosed homes, banks have been hanging onto them, waiting for the economy to improve. "These banks that have all this pent-up inventory will unleash it on the market, as soon as they see a minor uptick in real estate prices," Brown said, which will, in turn, reduce housing prices even further.
Experts agree that we have not hit rock bottom yet. People are still losing their jobs. Homes are going into foreclosure at a rate of 120,000 a month. Many who feared foreclosure in their future say they tried to work with the banks for "loan modification" -- but they "were denied or given the runaround," Rep. Mike Quigley of Illinois said. The banks weren't working with people so they made the problem worse. "Servicers are famous for delay tactics...like claiming the fax machine was out of paper," he said.
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1 comment:
Granted some people can't make their mortgage payments now.
But keep in mind that the company who "gave them the mortgage" never had the money to begin with! That's right, thanks to fractional reserve banking the banks leveraged money out (to earn interest on it) which they did not have.
We need to wrap our minds around the ideas of fiat currency and fractional reserve banking. Both are criminal in every sense of the word.
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