At the end of September, reports the number of the bank foreclosure properties to 71% the previous year. The cause of this incredible figures with banks and mortgage lenders lies. During the period of well touted "ownership society", only a few years, banks make loans to many people who were not clearly qualified to take a home loan that can support their incomes.
It was recently revealed, in large part by companies whistle blowers, that mortgage brokers have been encouraging applicants to information relevant and even to blow up their income on paper, so that their loan go through. Many of these borrowers can barely make payments with lower initial speed. When kicking higher rates, the number of properties began to rise quickly, so close the locking of the Bank have none of these owners will be able to meet mortgage payments.
It is unfair to suggest that banks see this entry. However, they received their money for a period of time, including interest and late fees may be involved. Negotiate lower rates for the borrower shielding so to avoid in order, borrowers began to default, banks, on the whole, failed to try.
The result? People have lost their homes, their investments and their solvency. Million of bank foreclosure properties have flooded the market. Often, the values of homes in whole neighborhoods across the country has fallen. Thus people property houses and their payments are now facing property values falling within a lot of what they need in their mortgage. Perhaps these future bank foreclosure properties in manufacturing.
This $ 700 billion banking bailout plan is a slightly veiled recovery including banks hale and robust, while imposing taxpayers with this debt for generations to come.
After the initial adoption of these discarded bailout AIG clearly Bank party $ 440,000 to celebrate preferring, she and others has no banks million golden parachute ' CEO, logically, ethical and responsible packets discarded to make loans in the first place. At the same time, banks were still refuses to pay, even with the other banks. Now they will reportedly 2 trillion between them and that they are ready does not reveal!
Other matters disputed in this scandal bank foreclosure properties. Declining values make this buyer's market. With the current credit crisis, few are able to qualify. This loads the foreign investments, which augurs for our economy.
All people who already have their lost home, pre-bailout? Why wait that Government bank foreclosure properties had reached this point of crisis?
In addition, this proposal a bailout of the owner speaks only to owners who have at least three months behind, due the property has the value and foreclosure imminent face. It is only 20% of the mortgage delinquency. Will this make a real difference to the solution of the crisis eventually?
It remains to be seen what the final resolution to the problem of the bank foreclosure properties. The situation raises a question, how much faster can stimulate the economy if some of those employees, instead of buying the debt of a $ 700 billion failed and unscrupulous bankers have been paid?
instead of top rescue part of this sum to the work of the people - this will stimulate the economy if person is eligible, not buy consumers, small businesses go activity, loss of jobs
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