Foreclosure Deal to Spur New Wave of U.S. Home Seizures, Help Heal Market

[Freddie Stubbs]

This discussion thread was locked as off-topic by jannyk (a host of the Latest Breaking News forum).

The $25 billion settlement with banks over foreclosure abuses may result in a wave of home seizures, inflicting short-term pain on delinquent U.S. borrowers while making a long-term housing recovery more likely.

Lenders slowed the pace of foreclosures as they negotiated with attorneys general in all 50 states for more than a year over allegations of faulty and fraudulent paperwork used to repossess homes. With yesterday’s agreement, banks are likely to resume property seizures.

“The best thing about the settlement, frankly, is that it will be done,” said Stan Humphries, chief economist for Seattle-based Zillow Inc. (Z), a provider of home-sales data. “The shadow of the settlement hung over the market for a year now.”

The backlog of foreclosures has trapped homeowners in properties they can no longer afford, depressed neighborhood prices by increasing the number of abandoned homes and led banks to tighten mortgage credit standards because of uncertainty about the cost of their potential obligations. Foreclosure starts fell 46 percent in December from October 2010, when the investigation into the so-called robo-signing of mortgage documentation began, according to Irvine, California-based RealtyTrac Inc.

more: http://www.bloomberg.com/news/2012-02-09/foreclosure-deal-to-spur-new-wave-of-u-s-home-seizures-help-heal-market.html

[jtuck004]

1. The market is not what needs healing. The people do.

This does nothing for people who have been hurt by the greedy bastards that control this market. The size of the settlement is a paltry amount compared to the loss to this country, and rushing it through before any criminal prosecutions - those in power have lost all respect for the people, and now seem to think we are just stupid.

This will accelerate the misery for a lot of folks, exactly what Mitt Romney called for, and the people who wind up with the assets are those who caused the damn problem in the first place. The people who are hurt are still broken and bleeding, perhaps with no real hope ever to come in their lifetime.

Smoke. Mirrors. Shiny things. Greed.

[Missy Vixen]

3. I wish I could recommend a post

Thank you for your comments. The taxpayers pay (AGAIN), while the mortgage lenders and banks walk away with the equivalent of a parking ticket.

I'm curious to know if there are the same "teeth" in these regulations as there were in the MHA program. There was NO penalty to the banks that would not cooperate with loan modification, and they were paid $1000 per application ANYWAY! We've already read this morning that Walker of Wisconsin intends to use the funds his state gets to pay off unrelated debt.

[glowing]

2. Bad deal for the American people. What we needed with the billions and trillions of

bailouts was something for the actual people... Like cramming down the principle of the home to actual rates. This doesn't "heal" neighborhoods. This doesn't "heal" the people. This is just fraud.

Is it any wonder why its so hard to get people involved in caring about politics? Its all bs, and the people understand they just get screwed over time and again. We need the organic, grass roots "occupy" type of movement to take hold strongly within the American populace... That's the only way to scare them into working for us a little bit.

[Dont call me Shirley]

4. Tar and Feathers

[roguevalley]

5. obama will wear this shame forever

[Riley18]

6. This is just more of the same. The banks get the money and the people get the shaft.

This is the exact way that Romney recommended. The only difference is the Romney said it out loud.

[stockholmer]

7. the continued anthropomorphisation of the banksters' systems of control and domination (in this case

'the market' being in need of 'healing') is one of the most potent forms of mass psychological control in their toolkit of neo-feudalism.

RESIST ALWAYS

NEVER

[jannyk]

8. This is not LBN - it was posted yesterday.

http://www.democraticunderground.com/1002290148