The bailout cost for the “too big to fail” banks and mortgage companies has not even peaked.
Taxpayers, like Joe Inhoch, our new fictional blog character, are on the hook hundreds of billions more, counting only the Fannie Mae and Freddie Mac loans that go south.
Our politicians already already bailed out those companies, with Joe’s money and yours, even though these are the companies that caused the crisis.
Sloppy paperwork went hand in hand with sloppy lending practices, which are being unraveled by attorneys representing homeowner victims, like Suzie Homeowner, our other new fictional character..
One of the seven deadly sins, GREED, drove our banker buddies in their race for more money, they cut corners, to grossly understate the case.
In states that require judicial foreclosure, the mortgage industry use offirst came to light.
They hired people just to sit at a desk and sign papers all day.
Of course, they were not hired to, like, actually READ the affidavits they were signing, verifying that necessary stages of the mortgage process were done
Now that they are called on it, our mortgage friends just come up with: more affidavit, with supposedly correct information to justify their foreclosure suits.
Reminds me of the Iraqi government spokesman, who claimed there had been no invasion, AMerica was losing the war, just before Baghdad fell.
Though some of our banker buddies face the music, apologize, promise it will never happen again, all theom now on will be legitimate.
The best alternative to the current, continuing mess remains, judicial mortgage modification..
Any chapter of bankruptcy stops foreclosure, but the terms of a first mortgage on your principal residence still cannot be changed.
A second mortgage lien can be stripped off in a Chapter 13 bankruptcy, if your house is worth less than what is owed on the first mortgage.
Suzie homeowner and Joe Inhoch are underwater on their homes.
HAMP is another failed government program that has lowered the principal balance for very few..
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